Chapter 1

Projects in Contemporary
Organizations

Copyright 2009 John Wiley & Sons, Inc.

Introduction

 Much of project management developed by the
military
– Navy’s Polaris program
– NASA’s space program
– Strategic defense initiative
 Project management has found wide acceptance in
industry
 It has many applications outside of construction
– Managing legal cases
– Managing new product releases

The exponential growth of human knowledge 2. Increased worldwide competition  All of these contribute to the need for organizations to do more and to do it faster  Project management is one way to do more faster .Introduction Continued  Main forces in driving the acceptance of project and other forms of management: 1. The growing demand for a broad range of complex goods and services 3.

or Chunnel – Denver International Airport – Panama Canal expansion project – Three Gorges Dam.Projects Tend to be Large  Projects tend to be large – The Channel Tunnel. China  Projects are getting larger over time – Flying: balloons  planes  jets  rockets  reusable rockets  The more we can do. the more we try to do .

More people are seeing the advantages of project management techniques 2. The techniques are becoming more widely taught and written about . The tools are become cheaper 3.Project Management Also Getting Smaller 1.

Cost 3. and performance are all related on a project .Main Goals of Project Management 1. cost. Performance  Time. Time 2.

Time Figure 1-1 .Direct Project Goals: Performance. Cost.

Project Management Institute (PMI)  The Project Management Institute is the major project management organization  Founded in 1969  Grew from 7.000 in 2007  The Project Management Journal and PM Network are the leading project management journals .500 members in 1990 to over 260.

may not have necessary authority .Project Manager  Project manager is the key individual on a project  Project manager is like a mini-CEO  While project manager always has responsibility.

Trends in Project Management  Achieving strategic goals  Achieving routine goals  Improving project effectiveness  Virtual projects  Quasi-projects .

Consensual management 2.Recent Changes in Managing Organizations 1. Systems approach 3. Projects as preferred way to accomplish goals .

The Definition of a “Project”  Modern project management began with the Manhattan Project  In the early days. they began to “trickle down” to smaller projects  It has also moved out of just manufacturing to services . project management was used mainly for very complex projects  As the tools became better understood.

Major Characteristics of a Project  Importance  Performance  Life cycle with a finite due date  Interdependencies  Uniqueness  Resources  Conflict .

Why Project Management?  The main purpose for initiating a project is to accomplish some goal  Project management increases the likelihood of accomplishing that goal  Project management gives us someone (the project manager) to spearhead the project and to hold accountable for its completion .

Negative Side to Project Management  Greater organizational complexity  Higher probability organizational policy will be violated  Says managers cannot accomplish the desired outcome  Conflict .

The Project Life Cycle Figure 1-3 .

Time Distribution of Project Effort Figure 1-4 .

Another Possible Project Life Cycle Figure 1-5 .

Risk During at the Start of the Life Cycle Figure 1-6 .

Risk During the Life Cycle Figure 1-7 .

The Structure of this Text  Follows the project life cycle  Some topics stand-alone  Other topics incorporated throughout .

Negotiation and the Management of Conflict 5. The Project in the Organizational Structure . The Project Manager 4. Strategic Management and Project Selection 3. Projects in Contemporary Organizations 2.Part I: Project Initiation 1.

Budgeting and Cost Estimation 8. Scheduling 9. Project Activity Planning 7. Resource Allocation .Part II: Project Planning 6.

Part III: Project Execution 10. Project Control 12. Monitoring and Information Systems 11. Project Termination . Project Auditing 13.