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 growing demand for a broad range of complex goods and services 3. 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 . The exponential growth of human knowledge 2.Introduction Continued  Main forces in driving the acceptance of project and other forms of management: 1.

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

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

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

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

500 members in 1990 to over 260.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 .

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

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

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

project management was used mainly for very complex projects  As the tools became better understood.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 .

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 .

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

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

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