Modern Project Management - A Landscape

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What is a Project?What is a Project?

• Project Defined–A complex, nonroutine, one-time effort limited by time,

budget, resources, and performance specifications designed to meet customer needs.

• Major Characteristics of a Project–Has an established objective.–Has a defined life span with a beginning and an end.–Requires across-the-organizational participation.–Involves doing something never been done before.–Has specific time, cost, and performance

requirements.

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Programs versus ProjectsPrograms versus Projects

• Program Defined–A series of coordinated, related, multiple

projects that continue over an extended time and are intended to achieve a goal.

–A higher level group of projects targeted at a common goal.

–Example:•Project: completion of a required

course in project management.

•Program: completion of all courses required

for a business major.


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Comparison of Routine Work with ProjectsComparison of Routine Work with Projects

TABLE 1.1

Routine, Repetitive Work

Taking class notes

Daily entering sales receipts into the accounting ledger

Responding to a supply-chain request

Practicing scales on the piano

Routine manufacture of an Apple iPod

Attaching tags on a manufactured product

ProjectsWriting a term paper

Setting up a sales kiosk for a professional accounting meeting

Developing a supply-chain information system

Writing a new piano piece

Designing an iPod that is approximately 2 X 4 inches, interfaces with PC, and stores 10,000 songs

Wire-tag projects for GE and Wal-Mart


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Project Life CycleProject Life Cycle

FIGURE 1.1


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The Challenge of Project ManagementThe Challenge of Project Management

• The Project Manager–Manages temporary, non-repetitive activities and

frequently acts independently of the formal organization.

•Marshals resources for the project.•Is linked directly to the customer interface.•Provides direction, coordination, and integration

to the project team.•Is responsible for performance and success of the

project.–Must induce the right people at the right time to

address the right issues and make the right decisions.


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The Importance of Project ManagementThe Importance of Project Management

• Factors leading to the increased use of project management:–Compression of the product life cycle–Knowledge explosion–Triple bottom line (planet, people, profit)–Corporate downsizing–Increased customer focus–Small projects represent big problems


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Benefits of an Integrative Approach Benefits of an Integrative Approach to Project Management to Project Management

• Integration (or centralization) of project management provides senior management with:–An overview of all project management activities–A big picture of how organizational resources are used–A risk assessment of their portfolio of projects–A rough metric of the firm’s improvement in managing

projects relative to others in the industry–Linkages of senior management with actual project

execution management


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Integrated Project Management SystemsIntegrated Project Management Systems

• Problems resulting from the use of piecemeal project management systems:–Do not tie together the overall strategies of the firm.

–Fail to prioritize selection of projects by their importance of their contribution to the firm.

–Are not integrated throughout the project life cycle.

–Do not match project planning and controls with organizational culture to make appropriate adjustments in support of project endeavors.


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Integrated Management of ProjectsIntegrated Management of Projects

FIGURE 1.2


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Major Functions of Portfolio ManagementMajor Functions of Portfolio Management

• Oversee project selection.

• Monitor aggregate resource levels and skills.

• Encourage use of best practices.

• Balance projects in the portfolio in order to represent a risk level appropriate to the organization.

• Improve communication among all stakeholders.

• Create a total organization perspective that goes beyond silo thinking.

• Improve overall management of projects over time.


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The Technical The Technical and Sociocultural and Sociocultural

DimensionsDimensionsof the Project of the Project Management Management

ProcessProcess

FIGURE 1.3


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An Overview of Project Management 5e.An Overview of Project Management 5e.


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Key TermsKey Terms

ISO 9000

Program

Project

Project life cycle

Project Management Professional (PMP)

Sociotechnical perspective


PROJECT MANAGEMENT 641PROJECT MANAGEMENT 641

PAPER 4

MODERN PROJECT MANAGEMENT

A BRIEF HISTORY

MODERN PROJECT MANAGEMENT The 1940sMODERN PROJECT MANAGEMENT The 1940s

• The Manhattan Project - first evidence of modern PM.


MODERN PROJECT MANAGEMENT The 1950sMODERN PROJECT MANAGEMENT The 1950s

• 2 major developments:–Network planning/control techniques -

PERT/CPM/PDM–Systems engineering and management.

• Modern PM in early 1950s by US Air Force & Navy.–Large number of planes & rockets projects. –Engineering & Production offices combined–Atlas ICBMs used systems approach - managed as 1

entity.

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MODERN PROJECT MANAGEMENT - The MODERN PROJECT MANAGEMENT - The 1950s [cont’d]1950s [cont’d]

1956 USAF report:Projects organised on product not functional

basisGeneral elevation of the project management

function

Polaris :Elevated authority of 'Project' within organisation Led to development of PERT

Gaddis - Article broaden the focus of PM

MODERN PROJECT MANAGEMENT - The MODERN PROJECT MANAGEMENT - The 1960s1960s

Growth in systems integration, & plan/control tools. Major theme - theoretical organisational basis for PM US Defence introduced core PM tools (esp. Apollo). eg: life-

cycle costing, C/SCSC, work breakdown structure. Construction industry began to use modern PM tools Emergence of an intellectual interest in PM Growing use of matrix in many organisations PM tools overemphasied, integration overlooked


MODERN PROJECT MANAGEMENT MODERN PROJECT MANAGEMENT The 1970sThe 1970s

Project-based firms use PM as permanent function. Growing influence of external factors upon projects. Growth of matrix as PM tools used for special tasks Perceptions of PM: middle-management, intra-

organisational skill. But real projects indicate a fuller view - ie impact of external factors

PMI & Internet established - focus on techniques used by intra-project middle management.


MODERN PROJECT MANAGEMENT The MODERN PROJECT MANAGEMENT The 1980s1980s

PM a mature management discipline. creation of PM degree courses proliferation of publications on PM increasing use of PM PC-based tools. focus on top-down strategic management of projects:

attention to defining project success criteria importance of effects of external factors importance of managing project as soon as

an idea involvement of client & end users of

project's product

MODERN PROJECT MANAGEMENT The MODERN PROJECT MANAGEMENT The 1980s [cont’d]1980s [cont’d]

application of quality assurance to project activities

sophisticated procurement & financing

IT - faciliated PM, & created a class of projects

Writings on PM : risk management; expert systems; project success; strategic project management.

Gareis (1989) - "Management by Projects"


MODERN PROJECT MANAGEMENTMODERN PROJECT MANAGEMENTSUMMARYSUMMARY

• 50S– - MPM by USAF

•Organisational integration•Systems management•CPM/PERT

• 60s –Matrix–WBS,, earned value, PDM


MODERN PROJECT MANAGEMENTMODERN PROJECT MANAGEMENTSUMMARYSUMMARY

• 70s–heavy focus on TCQ–Growing importance of external factors –Focus on middle-PM

• 80s–becomes mature & broadens–eg risk, TQM, partnering, project success–PC-based “PM” software–Pmbok published–“Management by Projects”


Why did modern PM emerged ?Why did modern PM emerged ?

COMPLEXITY

Growing complexity of tasks performed by organisations.

This required specialisation - multi-disciplinary inputs

This required a high level of coordination

Project management provided this INTEGRATION.


Why did modern PM emerged ?Why did modern PM emerged ?

CHANGE

Organisations work in increasingly dynamic worldConstantly under pressure to implement changeAnd changes occurring at an accelerating pace. Changes implemented by projects and PM

TIME

Intense competition -products made asapTight time and cost constraints - well suited for PM

1990s and the future1990s and the future

PM to be recognised as an individual discipline “PM will become an expected professional skill”

Corporate StrategiesOrganisations respond to rapid change by right CS. PM seen as appropriate for implementing CS

PM as Mainstream“change from perceiving PM unique towards seeing PM methods as elements in management in general”

Broader Management Input PM not mainly task of PMs, but all management needed, top managers & project participants



Concurrent EngineeringCE aims for shorter product life cycles. CE = requires multi-disciplinary teams.This process lends itself to the application of PM

Stakeholder ManagementMore projects dealing with many influential SHs. Interface management will be significant focus for PM.

QualityTQM in projects will grow - ISO/CD 10006

Collaborative ArrangementsStrategic alliances & partnering to grow in popularity



Information Technology Computer-based developments in projects to grow- better PM software; expert systems, risk analysis, EDI

Multi-project ManagementManage network of projects. Integration needed

CertificationProcess to verify PM’s competencies to othersPMI - PMP APM UK AIPM - RegPM



Front-End Management Greater emphasis in starting up projects- Verification of objectives, value management, risk management;

Team Building Team processes will grow, eg - team empowerment, consensus decision-making

Beyond Technical ExpertiseRequire PMs whose competency is PM - not technicalSkills in business, risk, integration - not technical

Virtual teamsProject teams to be geographically dispersed

The Professionalism of PMThe Professionalism of PM

• Project Management Institute–1969. 44,000. 1998 budget -$12m–Developed PmBok. Annual Conference–PM Journal (4) & PM Network (12)

• International Project Management Association–1985. 22 European bodies. 10,000. UK - 4,000–International Journal of PM (6)

• Australian Institute of Project Management–1976.2000.Australian Project Manager (12)


Modern Project Management - A Landscape

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