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ELC/BUS/PSA 347Day 2
Questions?? Blackboard updates IP Projects discussions Why project management?? Assignment 1 posted in Blackboard
◦ Due in one week; September 15 @ 3:35 PM
Agenda
1-2
Team based◦ 2 teams
Think of a large project that will require a project plan
Must require at least 10 people to complete◦ Must require 10 or more weeks to complete◦ Must be constrained by a budget
Suggestions◦ Plan an event◦ Build something
Product, business, capital asset◦ Change something
Integrated Project
Introduction: Why Project Management?
Chapter 1
1-4
© 2007 Pearson Education
Examples of projects◦ Split the atom◦ Chunnel between England and France◦ Introduce Windows XP
“Projects, rather than repetitive tasks, are now the basis for most value-added in business”
-Tom Peters
Introduction
1-5
Project Take place outside
the process world Unique and separate
from normal organization work
What is a Project?
1-6
Process• Ongoing, day-to-day
activities• Use existing systems,
properties, and capabilities
A project is a unique venture with a beginning and an end, conducted by people to meet established goals within parameters of cost, schedule and quality.
Complex, one-time processes
Limited by budget, schedule, and
resources
Developed to resolve a clear goal or set of
goals (deliverables)
Customer-focused
Elements of Projects
1-7
Ad-hoc endeavors with a clear life cycle
Building blocks in the design and execution of organizational strategies
Responsible for the newest and most improved products, services, and organizational processes
Provide a philosophy and strategy for the management of change
General Project Characteristics (1/2)
1-8
Entail crossing functional and organization boundaries
Traditional management functions of planning, organizing, motivating, directing, and controlling apply
Principal outcomes are the satisfaction of customer requirements within technical, cost, and schedule constraints
Terminated upon successful completion
General Project Characteristics (2/2)
1-9
Process & Project Management (Table 1.1)
1-10
Process
1. Repeat process or product
2. Several objectives
3. On-going
4. People are homogeneous
5. Systems in place
6. Performance, cost, & time known
7. Part of the line organization
8. Bastions of established practice
9. Supports status quo
Project
1. New process or product
2. One objective
3. One shot – limited life
4. More heterogeneous
5. Systems must be created
6. Performance, cost & time less
certain
7. Outside of line organization
8. Violates established practice
9. Upsets status quo
Software & hardware projects fail at a 65% rate
Over half of all IT projects become runaways
Up to 75% of all software projects are cancelled
Average cost overrun is 45%; schedule overrun is 63%; with only 67% of originally contracted features
47% of IT projects delivered but not used, 29% paid for but not delivered; 19% abandoned
Information Technology Project “Success”
1-11
1-12
Happens more often than most people think!
1. Shortened product life cycles
2. Narrow product launch windows
3. Increasingly complex and technical
products
4. Emergence of global markets
5. Economic period marked by low inflation
Why are Projects Important?
1-13
3 Gorges Dam
1-14
18,000 workers and a $73 billion cost estimate, idea in 1920’s, construction began in 1994 and is to be completed in 2009
http://www.chinapage.com/3gorge/3gorge.html
Project Life Cycles
1-15
Man Hours
Conceptualization Planning Execution Termination
Project Life Cycles and Their Effects
1-16
Conceptualization Planning Execution Termination
Uncertainty
Client Interest
Project Stake
Creativity
Resources
Success
Budget
Client
Acceptance
Schedule Performance
Determinants of Project Success
1-17
1. System quality
2. Information quality
3. Use
4. User satisfaction
5. Individual Impact
6. Organizational impact
Six Criteria for IT Project Success
1-18
Four Dimensions of Project Success
1-19
Project
Completion
Time
Importance
1Project
Efficiency
4Preparing forThe Future
2Impact onCustomer
3 Business Success
Iron triangle
Information System
Benefits (Organization)
Benefits(Stakeholders)
CostQualityTime
MaintainabilityReliabilityValidityQualityUse
Improved efficiencyImproved effectivenessIncreased ProfitsStrategic goalsOrganization learningReduced Waste
Satisfied usersSocial and environmental ImpactPersonal DevelopmentProfessional learning, Contractors’ profitsCapital suppliers. contentProject team, economicImpact to surrounding Community
Atkinson Model
1-20
Determines Organizational adaptation of Best Practices◦ Analyze and assess◦ Benchmark◦ Change◦ Re-Measure
Using Maturity Models
1-21
1-22
0 Not defined or poor1 Defined but substandard2 Standardized3 Industry leader or cutting edge
0
0.5
1
1.5
2
2.5
3Project Scheduling
Structural Support forProject Management
Portfolio Management
Coaching, Auditing andEvaluating Proejcts
Control Practices
Project StakeholderManagement
Networking BetweenProjects
Personnel Development forProjects
Spider Web Diagram
1-23
Project management maturity models
◦ Center for business practices
◦ Kerzner’s project management maturity model
◦ ESI International’s project framework
◦ SEI’s capability maturity model integration
Developing Project Management Maturity
1-24
Project Management MaturityGeneric Model
1-25
Low Maturity
Ad hoc process, no common language, little support
Moderate MaturityDefined practices, training programs,
organizational support
High Maturity
Institutionalized, seeks continuous
improvement
Project Elementsand Text Organization
Text organizatoion Foundation
Chapter 1 - Introduction: Why Project Management?
Chapter 2 - The Organization Context: Strategy, Structure, and Culture
Chapter 3 - Project Selection and Portfolio Management
Chapter 4 - Leadership and the Project Manager
Planning Chapter 5 - Scope Management Chapter 6 - Project Team
Building, Conflict, and Negotiation Chapter 7 - Risk Management Chapter 8 - Cost Estimation and
Budgeting
Planning (con’t) Chapter 9 - Project
Scheduling: Networks, Duration Estimation, and Critical Path
Chapter 10 - Project Scheduling: Lagging, Crashing, and Activity Networks
Chapter 11 - Critical Chain Project Scheduling
Chapter 12 - Resource Management
Implementation Chapter 13 - Project Evaluation
and Control Termination
Chapter 14 - Project Close-out and Termination
Project Elements and Text Organization
1-28
1-29
http://www.pmi.org/
http://www.maxwideman.com/papers/comparing/intro.htm
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