IS333

Project Management
Effective Project Management

Week 01 – Lecture 03
Last Session

 Any questions from the course outline?

 Any questions from the last lectures?

 Any questions about the labs or tutorial?

 Course assignment to be discussed next week …

 About the text book …

 …

 Any questions about the course in general …

Slide 2 of 00
Course Announcements

 Group formation for assignment

 Assignment 1 due date

 …

 Any announcement from the students …

Project Management: Achieving
Competitive Advantage
Fifth Edition

Chapter 1
Introduction: Why Project
Management?
Learning Objectives

3.Understand why effective project management is such

a challenge.
4.Understand and explain the project life cycle, its stages,
and the activities that typically occur at each stage in the
project.
5.Understand the concept of project “success,” including
various definitions of success, as well as the alternative
models of success.
1.6 Understand thepurpose of project management
maturity models and the
process of benchmarking in
organizations.
 Why do We like Project Work?
• Employees: Seller of Skills

• Employers: Buyer of Skills

• Win-Win …

• Save money …

• Sick/Annual Leave, FNPF …

• Adaptability, Flexibility …

• Freelancers
Process and Project Management
Table 1.1 Differences Between Process and Project Management

Process Project
Repeat process or product New process or product
Several objectives One objective
Ongoing One-shot-limited life
People are homogenous More heterogeneous
Well-established systems Integrated system efforts
Greater certainty Greater uncertainty
Part of line organization Outside of line organization
Established practices Violates established practice
Supports status quo Upsets status quo
Project Success Rates
• Software and hardware projects fail at a 65% rate.
• Over half of all I T projects become runaways.
• Only 30% of technology-based projects and programs are a
success. (developed for themselves)
• Ten major government contracts have over $16 billion in
cost overruns and are a combined 38 years behind
schedule.
• One out of six I T projects has an average cost overrun
of
200% and a schedule overrun of 70%.
• More than one-third of the $110 billion in costs spent on the
post-war reconstruction projects in Afghanistan, total $110
billion was lost due to fraud, waste, and abuse. (Corruption
story …)
Why Are Projects Important?

1. Shortened product life cycles (reverse)

2. Narrow product launch windows (+5, +6)
3. Increasingly complex and technical products (power)
4. Emergence of global markets (the world)
5. An economic period marked by low inflation (buying)
Some Reasons for IT Project Failure - Inaccurate requirements
Figure 1.4 Project Life Cycle Stages
Project Life Cycles

A project life cycle refers to the stages in a project’s

development and are divided into four distinct phases:
• Conceptualization—development of the initial goal and
technical specifications of the project. Key stakeholders
are identified and signed on at this phase.
• Planning—all detailed specifications, schedules,
schematics, and plans are developed.
• Execution—the actual “work” of the project is
performed.
• Termination—project is transferred to the customer,
resources reassigned, project is closed out.
Figure 1.5 Project Life Cycles and Their
Effects
Quadruple Constraint of Project Success
Figure 1.7 The New Quadruple Constraint
Figure 1.8 Four Dimensions of Project
Success Importance
Table 1.2 Understanding Success Criteria

Iron Triangle Information Benefits Benefits

System (Organization) (Stakeholders)
Cost Maintainability Improved efficiency Satisfied users
Quality Reliability Improved effectiveness Social and
environmental impact
Time Validity Increased profits Personal development
Information quality Strategic goals Professional learning,
contractors’ profits
Use Organization learning Capital suppliers,
content
Reduced waste Project team,
economic impact to
surrounding
community
Six Criteria for IT Project Success
• System Quality (performance)

• Information Quality (useful)

• Use (regularity)

• User Satisfaction

• Individual Impact (value)

• Organizational Impact (positive, profit)

Case Study 1.1 - MegaTech, Inc.

MegaTech, Inc. designs and manufactures automotive components. For years,

the company enjoyed a stable marketplace, a small but loyal group of
customers, and a relatively predictable environment. Though slow, annual sales
continued to grow until recently hitting $300 million. MegaTech products were
popular because they required little major updating or yearly redesign. The
stability of its market, coupled with the consistency of its product, allowed
MegaTech to forecast annual demand accurately, to rely on production runs
with long lead times, and to concentrate on internal efficiency.

Questions

1.What is it about project management that offers MegaTech a

competitive advantage in its industry?

2.What elements of the marketplace in which Mega-Tech operates

led the firm to believe that project management would improve its
operations?
Questions

1. What is it about project management that offers MegaTech a

competitive advantage in its industry?

Project management techniques will allow the firm to combine the advantages of
internal efficiency with external (environmental) responsiveness. For example,
it was determined that successful firms offer frequent product updates, which
MegaTech’s move has allowed them to exploit. It has also promoted a team-
based atmosphere that is encouraging cooperation and unity of effort among the
different functional departments.

2. What elements of the marketplace in which MegaTech operates led the

firm to believe that project management would improve its operations?

The intense, new competitive nature of the marketplace impels companies to

find new methods for competitive advantage. With many new competitors and
serious price pressure, success will require firms to be fast to market, hold the lid
on costs, offer frequent upgrades and new products—all while encouraging an
atmosphere of risk taking and cooperation.
Project Management Maturity
• Project management maturity (PMM) models are used
to allow organizations to benchmark the best practices
of successful project management firms.
• Benchmarking is the practice of systematically
managing the process improvements of project delivery
by a single organization of a period of time.
Figure 1.9 Spider Web Diagram for
Measuring Project Maturity

0 = Poor, 1 = substandard, 2 = standard, 3 = cutting edge

Figure 1.10 Spider Web Diagram with
Embedded Organizational Evaluation
Figure 1.11 Project Management Maturity
—A Generic Model
Developing Project Management Maturity

PMM models
• Center for Business Practices
• Kerzner’s Project Management Maturity Model
• ESI International’s Project Framework
• SEI’s Capability Maturity Model Integration
Center for Business Practices PMM
• Level 1: Initial Phase
• Level 2: Structure, Process, and Standards
• Level 3: Institutionalized Project Management
• Level 4: Managed
• Level 5: Optimizing
Kerzner’s PMM Model
• Level 1: Common Language
• Level 2: Common Processes
• Level 3: Singular Methodology
• Level 4: Benchmarking
• Level 5: Continuous Improvement
ESI International’s Project Framework
• Level 1: Ad Hoc
• Level 2: Consistent
• Level 3: Integrated
• Level 4: Comprehensive
• Level 5: Optimizing
SEI’s Capability Maturity Model
Integration
• Level 1: Initial
• Level 2: Managed
• Level 3: Defined
• Level 4: Quantitative Management
• Level 5: Optimizing
Project Elements and Text Organization

Figure 1.12 Organization of Text

Project Management Employability Skills

1. Communication
2. Critical Thinking
3. Collaboration
4. Knowledge Application and Analysis
5. Business Ethics and Social Responsibility
6. Information Technology Application and Computing
Skills
7. Data Literacy
Project Manager Responsibilities

1. Selecting a team
2. Developing project objectives and a plan for execution
3. Performing risk management activities
4. Cost estimating and budgeting
5. Scheduling
6. Managing resources
Figure 1.13 Overview of the Project Management
Institute’s PMBoK Knowledge Areas
Summary (1 of 2)

1. Understand why project management is becoming such

a powerful and popular practice in business.
2. Recognize the basic properties of projects, including
their definition.
3. Understand why effective project management is such a
challenge.
4. Understand and explain the project life cycle, its stages,
and the activities that typically occur at each stage in the
project.
Summary (2 of 2)

5. Understand the concept of project “success,” including

various definitions of success, as well as the alternative
models of success.
6. Understand the purpose of project management
maturity models and the process of benchmarking in
organizations.
7. Recognize how mastery of the discipline of project
management enhances critical employability skills for
university graduates.
References:
1. Pinto, J. K. (20180110). Project Management, 5th Edition
[VitalSource Bookshelf version]. Retrieved from
vbk://9780134730509

2. Image Source: Google Images

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