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FIVE PROCESS GROUP

Project initiation
Selection of the best project given
resource limits
Recognizing the benefits of the
project
Preparation of the documents to
sanction the project
Assigning of the project manager
Project planning
Definition of the work requirements
Definition of the quality and
quantity of work
Definition of the resources needed
Scheduling the activities
Evaluation of the various risks
Project execution
Negotiating for the project team
members
Directing and managing the work
Working with the team members to
help them improve
Project monitoring and control
Tracking progress
Comparing actual outcome to
predicted outcome
Analyzing variances and impacts
Making adjustments

Unfortunately, the benefits cannot be


achieved without overcoming
obstacles such as:
Project complexity
Customers special requirements
and scope changes
Organizational restructuring
Project risks
Changes in technology
Forward planning and pricing
Project management is the art of
creating the illusion that any outcome
is the
result of a series of predetermined,
deliberate acts when, in fact, it was
dumb luck.
Project
management
is
the
planning, organizing, directing, and
controlling of
company resources for a relatively
short-term objective that has been
established
to complete specific goals and
objectives.

Project closure
Verifying that all of the work has
been accomplished
Contractual closure of the contract
Financial closure of the charge
numbers
Administrative closure of the
papework
Successful project management can
then be defined as having achieved
the project
objectives:
Within time
Within cost
At the desired
performance/technology level
While utilizing the assigned
resources effectively and efficiently
Accepted by the customer

Classical management is usually


considered
to have five functions or principles:

Planning
Organizing
Staffing
Controlling
Directing

Deliverables are outputs, or the end


result of either the completion of the
project or
the end of a life-cycle phase of the
project.
Hardware Deliverables: These
are hardware items, such as a table, a
prototype,
or a piece of equipment.
Software Deliverables: These
items are similar to hardware
deliverables but are
usually paper products, such as
reports, studies, handouts, or
documentation.
Some companies do not differentiate
between hardware and software
deliverables.
Interim Deliverables: These
items can be either hardware or
software deliverables
and progressively evolve as the
project proceeds. An example might
be a
series of interim reports leading up to
the final report.
Stakeholders are individuals or
organizations that can be favorably or
unfavorably impacted by the project.
stakeholders are referred to as
active or key
Organizational stakeholders
Executive officers
Line managers
Employees
Unions
Product/market stakeholders
Customers
Suppliers
Local committees
Governments (local, state, and
federal)
General public
Capital market stakeholders
Shareholders

Creditors
Banks
Project success as the completion of
an activity within the constraints of
time, cost, and performance.
Within the allocated time period
Within the budgeted cost
At the proper performance or
specification level
With acceptance by the
customer/user
With minimum or mutually agreed
upon scope changes
Without disturbing the main work
flow of the organization
Without changing the corporate
culture
the project manager must control
company resources
Within time, cost, and performance.
Most companies have six resources:

Money
Manpower
Equipment
Facilities
Materials
Information/technology

Classical management has often


been defined as a process in which
the manager does not necessarily
perform things for himself, but
accomplishes objectives through
others in a group situation.
Effective project management
requires an understanding of:
Quantitative tools and techniques
Organizational structures
Organizational behavior
The functional manager has the
responsibility to define how the task
will be done and where the task will
be done (i.e., the technicalcriteria).

Executives are expected to interface


a project as follows:
In project planning and objectivesetting
In conflict resolution
In priority-setting
As project sponsor6
Success in project management is
like a three-legged stool.
The first leg is the project
manager,
the second leg is the line
manager, and
the third leg is senior
management
Project managers cannot make any
promises to a functional employee
concerning:

Promotion
Grade
Salary
Bonus
Overtime
Responsibility
Future work assignments

Project champion
Corporations encourage employees to
think up new ideas that, if approved
by the corporation, will generate
monetary and nonmonetary rewards
for the idea generator.
MARKETING IN THE PROJECTDRIVEN
ORGANIZATION
Marketing projects requires the ability
to
identify, pursue, and capture one-of-akind business opportunities, and is
characterized by:
A systematic effort. A systematic
approach is usually required to
develop a new program lead into an

actual
contract.
The
project
acquisition effort is often highly
integrated with ongoing programs and
involves key personnel from both the
potential customer and the performing
organization.
Custom design. While traditional
businesses provide standard products
and services for a variety of
applications and customers, projects
are custom-designed items to fit
specific requirements of a singlecustomer community.
Project life cycle. Project-oriented
businesses
have
a
well-defined
beginning and end and are not selfperpetuating.
Business
must
be
generated on a project-byproject basis
rather than by creating demand for a
standard product or service.
Marketing phase. Long lead times
often exist between the product
definition, startup, and completion
phases of a project.
Risks. There are risks, especially in
the research, design, and production
of programs. The program manager
not only has to integrate the
multidisciplinary tasks and project
elements within budget and schedule
constraints, but also has to manage
inventions and technology while
working with a variety of technically
oriented prima donnas.
The technical capability to
perform. Technical ability is critical to
the successful pursuit and acquisition
of a new project.

In project-driven organizations, there


are three career paths that lead to
executive management:
Through project management
Through project engineering
Through line management
General systems theory
can be classified as a management
approach that attempts to integrate
and unify scientific information across
many fields of knowledge.
General systems theory implies the
creation of a management technique
that is able to cut across many
organizational
disciplinesfinance,
manufacturing,
engineering,
marketing, and so onwhile still
carrying
out
the
functions
of
management.
Ludwig von Bertalanffy,
a biologist, described so-called open
systems using anatomy nomenclature.

LIFE-CYCLE PHASES FOR PROJECT


MANAGEMENT MATURITY

Executive
Management
Acceptance Phase
Line Management Acceptance
Phase
Embryonic Phase
Growth Phase
Maturity Phase

Systems
are collections of interacting
subsystems that, if properly
organized, can provide a synergistic
output.
A group of elements, either human or
nonhuman, that is organized and
arranged in such a way that the
elements can act as a whole toward
achieving some common goal or
objective.
CLOSED SYSTEMS
business firm system were completely
isolated from the environmental
system.

Special projects: Often special


projects occur that require certain
primary functions and/or authority to
be assigned temporarily to other
individuals or units. This works best
for short-duration projects. Long-term
projects can lead to severe conflicts
under this arrangement.
Matrix or aggregate projects:
These require input from a large
number of functional units and usually
control vast resources.
In order to complete a task, a
project manager must:
Set objectives
Establish plans
Organize resources
Provide staffing
Set up controls

OPEN SYSTEMS
If the business system reacts with the
environment.

Issue directives
Motivate personnel
Apply innovation for alternative
actions
Remain flexible

Four categories of projects:


Individual projects: These are
short-duration
projects
normally
assigned to a single individual who
may be acting as both a project
manager and a functional manager.
Staff projects: These are projects
that can be accomplished by one
organizational unit, say a department.
A staff or task force is developed from
each section involved. This works best
if only one functional unit is involved.

Project scope defines the work that


must be accomplished to produce a
deliverable
with specified features or functions.
The deliverable can be a product,
service, or
other result.

Product scope defines the features


or functions that characterize the
deliverable.
Maturity
in project management is the
implementation of a standard
methodology and accompanying
processes such that there exists a
high likelihood of repeated successes.
Informal project management
mandates:

Effective communications
Effective cooperation
Effective teamwork
Trust

Planning failure
the difference between what was
planned and what was, in fact,
achieved.
Actual failure
This is the difference between what
was achievable and what was actually
accomplished.
Perceived failure
is the net sum of actual failure and
planning failure.

Total Quality Management: The process of


ensuring that the end result will meet the quality
expectations of the customer.
Concurrent Engineering: The process of
performing work in parallel rather than series in
order to compress the schedule without
incurring serious risks.
Scope Change Control: The process of
controlling the configuration of the end result
such that value added is provided to the
customer
Risk Management: The process of identifying,
quantifying, and responding to the risks of the
project without any material impact on the
projects objectives.

Types of cultures
Cooperative cultures: These are
based upon trust and effective
communications,
internally
and
externally.
Noncooperative cultures: In these
cultures, mistrust prevails. Employees
worry more about themselves and
their personal interests than whats
best for the team, company, or
customer.
Competitive
cultures:
These
cultures force project teams to
compete with one another for
valuable corporate resources. In these
cultures, project managers often
demand
that
the
employees
demonstrate more loyalty to the
project than to their line managers.
This
can
be
disastrous
when
employees are working on many
projects at the same time.

Project Management: The basic principles of


planning, scheduling, and controlling work.

Isolated cultures: These occur when


a large organization allows functional
units to develop their own project
management cultures and can result

in
a
culture
environment.

within-

a-culture

Fragmented cultures: These occur


when part of the team is
geographically separated from the
rest of the team.

PROCESS
Indicates an active ongoing system
that is fed by input from its parts.