PMBOK Chapter 1 - Introduction to PM

8/3/2019 PMBOK Chapter 1 - Introduction to PM

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1Chapter 1

Chapter 1:

Introduction to Project

Managementadopted from PMIs PMBOK 2000 and

Textbook : Information Technology Project Management

(author : Dr. Kathy Schwalbe)


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2Chapter 1

Contents

Project and project management definition

Motivation of studying PM

Advantages of using formal PM Triple Constraint of PM

Project Management Framework

9 Project Management Knowledge Areas

Project Management Profession


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3Chapter 1

What is a Project?

A project is a temporary endeavor

undertaken to accomplish a unique purpose

Attributes of projectsunique purpose

temporary

require resources, often from various areas

should have a primary sponsor and/or customer

involve uncertainty


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4Chapter 1

Examples of IT Projects

Northwest Airlines developed a new reservationsystem called ResNet (see chapters 11-16)

Many organizations upgrade hardware, software,

and networks via projects (see chapter 5 openingand closing case)

Organizations develop new software or enhanceexisting systems to perform many business

functions (see examples throughout the text) Note: IT projects refers to projects involving

hardware, software, and networks


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5Chapter 1

IT Projects have a terrible track record

A 1995 Standish Group study (CHAOS) found that

only 16.2% of IT projects were successful and over

31% were canceled before completion, costing over$81 B in the U.S. alone

The need for IT projects keeps increasing

In 1998, corporate America issued 200,000 new-start

application development projects

In 2000, there were 300,000 new IT projects, and

In 2001, over 500,000 new IT projects were started

Motivation for Studying Information

Technology (IT) Project Management


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6Chapter 1

Advantages of Using Formal

Project Management Better control of financial, physical, and humanresources

Improved customer relations

Shorter development times Lower costs

Higher quality and increased reliability

Higher profit margins Improved productivity

Better internal coordination

Higher worker morale


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7Chapter 1

The Triple Constraint

Every project is constrained in differentways by itsScope goals: What is the project trying to

accomplish?Time goals: How long should it take to

complete?

Cost goals: What should it cost?

It is the project managers duty to balancethese three often competing goals


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8Chapter 1

Figure 1-1. The Triple Constraint of

Project Management


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9Chapter 1

Problems of poor project management

The 2001 Standish Group Report Showed Decided

Improvement in IT Project Success Rates From the 1995

Study

Time overruns significantly decreased to 63% comparedto 222%

Cost overruns were down to 45% compared to 189%

Required features and functions were up to 67%

compared to 61% 78,000 U.S. projects were successful compared to 28,000

28% of IT projects succeeded compared to 16%


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10Chapter 1

Why the Improvements?

"The reasons for the increase in successfulprojects vary. First, the average cost of aproject has been more than cut in half.

Better tools have been created to monitorand control progress and better skilledproject managers with bettermanagement processes are being used.

The fact that there are processes issignificant in itself.*

The Standish Group, "CHAOS 2001: A Recipe for

Success" (2001)


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11Chapter 1

What is Project Management?

Project management is the application of

knowledge, skills, tools, and techniques to

project activities in order to meet project

requirements (PMI*, Project Management

Body of Knowledge (PMBOK Guide),

2000, p. 6)

*The Project Management Institute (PMI) is an

international professional society. Their web site is

www.pmi.org.


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12Chapter 1

Figure 1-2. Project Management

Framework


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13Chapter 1

Project Stakeholders

Stakeholders are the people involved in oraffected by project activities

Stakeholders include

the project sponsor and project team

support staff

customers

userssuppliers

opponents to the project


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14Chapter 1

9 Project Management

Knowledge Areas Knowledge areas describe the key competencies

that project managers must develop 4 core knowledge areas lead to specific project

objectives (scope, time, cost, and quality) 4 facilitating knowledge areas are the means through

which the project objectives are achieved (humanresources, communication, risk, and procurementmanagement

1 knowledge area (project integration management)affects and is affected by all of the other knowledgeareas


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15Chapter 1

Project Management Tools and

Techniques Project management tools and techniques assist

project managers and their teams in various

aspects of project management

Some specific ones include

Project Charter and WBS (scope)

Gantt charts, network diagrams, critical path analysis,

critical chain scheduling (time)

Cost estimates and earned value management (cost)


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16Chapter 1

Sample WBS for Intranet Project

in Chart Form

Concept

Design User Interface

Design Server Setup

Develop ServerSupport Infrastructure

Web Site

Design

Develop Pages

and Links

Develop

Functionality

ContentMigration/Integration

Testing

Web Site

Development

Roll Out Support

Intranet Project


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17Chapter 1

Figure 1-4. Sample Gantt Chart

The WBS is on the left, and each tasks start and finish date

are shown on the right using a calendar timescale.


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Figure 1-5. Sample Network Diagram

Each box is a project task from the WBS. Arrows show dependencies

between tasks.The bolded tasks are on the critical path. If any tasks onthe critical path take longer than planned, the whole project will slip

unless something is done.


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19Chapter 1

0

50

100

150

200

250

300

1 2 3 4 5 6 7 8 9 10 11 12

Month

$

BCWS or Cumulative Plan

ACWP or Cumulative Actual

BCWP or Cumulative EVBCWS

ACWP

BWCPSchedule Variance

Cost Variance

EAC

BAC

Sample Earned Value Chart


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20Chapter 1

More Advantages of Project

Management* Bosses, customers, and other stakeholders do not like

surprises

Good project management (PM) provides assurance andreduces risk

PM provides the tools and environment to plan, monitor,track, and manage schedules, resources, costs, and quality

PM provides a history or metrics base for future planningas well as good documentation

Project members learn and grow by working in a cross-functional team environment

*Knutson, Joan, PM Network, December 1997, p. 13


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21Chapter 1

How Project Management (PM)

Relates to Other Disciplines Much of the knowledge needed to manage

projects is unique to PM

However, project managers must also haveknowledge and experience ingeneral management

the application area of the project

Project managers must focus on meetingspecific project objectives


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22Chapter 1

Figure 1-3. Project Management and Other

Disciplines


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23Chapter 1

History of Project Management

Modern project management began with theManhattan Project, which the U.S. military led todevelop the atomic bomb

In 1917 Henry Gantt developed the Gantt chart asa tool for scheduling work in job shops

In 1958, the Navy developed PERT charts

In the 1970s, the military began using project

management software, as did the constructionindustry

By the 1990s, virtually every industry was usingsome form of project management


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The Project Management

Profession A 1996 Fortune article called projectmanagement the number one careerchoice

Professional societies like the ProjectManagement Institute (PMI) have growntremendously

Average salaries for project managersare over $81,000


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Project Management Knowledge

Continues to Grow and Mature PMI hosted their first research conference in June

2000 in Paris, France

The PMBOK Guide2000 Edition is an ANSI

standard

PMIs certification department earned ISO 9000

certification

Hundreds of new books, articles, andpresentations related to project management have

been written in recent years


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26Chapter 1

Project Management

Certification PMI provides certification as a Project

Management Professional (PMP)

A PMP has documented sufficient project

experience, agreed to follow a code of ethics, andpassed the PMP exam

The number of people earning PMP certificationis increasing quickly

PMI and other organizations are offering newcertification programs (see Appendix B)


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Figure 1-6. Growth in PMP

Certification, 1993-2000


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28Chapter 1

Project Management Software

By 2001, there were hundreds of different productsto assist in performing project management

Three main categories of tools: Low-end tools: Handle single or smaller projects well,cost under $200 per user

Midrange tools: Handle multiple projects and users, cost$200-500 per user, Project 2000 most popular

High-end tools: Also called enterprise projectmanagement software, often licensed on a per-user basis


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29Chapter 1

You Can Apply Project

Management to Many Areas

Project management applies to work as

well as personal projects

Project management applies to manydifferent disciplines (IT, construction,

finance, sports, event planning, etc.)

Project management skills can help ineveryday life


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30Chapter 1

Summary

Project and project management definition

unique purpose, temporary, require resources, sponsor support

and involve uncertainty

Motivation of studying PM

IT Projects have a terrible track record

The need for IT projects keeps increasing

Advantages of using formal PM

1. Better control of resources

(financial, physical, and human)

2. Improved customer relations

3. Shorter development times

4. Lower costs

5. Higher quality

6. Increased reliability

7. Higher profit margins

8. Improved productivity

9. Better internal coordination

10. Higher worker morale


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Summary (2)

Triple Constraint of PM time, costs and scope

Project Management Framework

stakeholder input => 9 PM knowledge areas => othertools and techniques => success project

9 Project Management Knowledge Areas core: scope, time, cost, quality

facilitating: HR, communication, risk, procurement integration

Project Management Profession

Documents

PMBOK Chapter 1 - Introduction to PM