Scribd
Upload
11 views

Ch.1 Projects in Comtemporary Organizations

Uploaded by

Hiba
Copyright
© © All Rights Reserved
Available Formats
Download as DOC, PDF, TXT or read online on Scribd
11 views

Ch.1 Projects in Comtemporary Organizations

Uploaded by

Hiba
Copyright
© © All Rights Reserved
Available Formats
Download as DOC, PDF, TXT or read online on Scribd
You are on page 1/ 3

Chapter 1

Projects in contemporary Organizations

Need for Project management


1. Expansion knowledge
2. Demand for a broad range of complex, sophisticated, customized goods and services.
3. Globally competitive markets for the production and consumption of goods and services.

All these factors combine to make the projects large, complex and multidisciplinary endeavors.

Project Management is the application of knowledge, skills, tools and techniques to project activities
to meet project requirements. Routine production and project in terms of time, cost and performance.

Constraints as well as objectives of a Project :


1. Time
2. Cost
3. Performance
Fig. 1-1

Trade offs between these constraints or objectives of project.

Project Manager :
PM is the person who manages the project and applies the principles of Project management.

Project Manager’s responsibility is to integrate all aspects of a project, ensure that proper knowledge
and resources are available when and where needed and ensure that expected results are produced in
a timely, cost effective manner.

Problems faced by PM
1. Frustration of being responsible for outcomes while lacking full authority to command the
requisite resources or personnel.
2. Dealing with parties involved in any project – senior management, client, project team and
public, each with different smaller objectives.
3. Project already is more work than routine organization.
4. Technical Problems.
5. Organizational problems
6. Vendors who are not punctual in delivering of raw material.

Recent changes in Managing Organizations


Recent changes in managing organizations are the following :-
1. Replacement of traditional, hierarchical management by consensual management.
2. Adoption of the Systems approach.
3. Organizations establishing projects as a preferred way to accomplish the many specific
changes that must be made when the organization attempts to alter its strategy.
Definition of a Project
“A temporary endeavor undertaken to create a unique product or service”

Distinction between Program, Project, Task, Work Package and Work Unit
Exceptionally large, long range objective that is broken down into asset of projects.
Tasks :- The projects are divided further into tasks.
Work Package :- Tasks are divided into Work Packages.
Work Units :- Work Packages are divided into Work Units.

Purpose of a Project :- A project is usually a one-time activity with a well-defined set of desired
end results. It can be divided into subtasks that must be accomplished in order to achieve the project
goals. The project is complex enough that the subtasks require careful coordination and control in
terms of timing, precedence, cost and performance. Often the project itself must be coordinated with
other projects being carried out by the same parent organization.

Life Cycle :- Projects have life cycles. From a slow beginning they progress to a buildup of size,
then peak, begin to decline, and finally must be terminated.

Interdependencies :- Different projects pursued by the same organization sometimes interact with
one another for resources, technical know-how etc. Also projects interact with the various functional
departments of the parent organization e.g marketing may be interacting with the project in the
beginning. Manufacturing may be involved throughout the project life time. Finance in the
beginning and accounting at the end. PM must keep all these interactions clear and maintain the
appropriate relationships with all external groups.

Uniqueness :- Every project has some elements that are unique. No two construction or R& D
projects are precisely alike. Projects by their nature, cannot be completely reduced to routine.

Conflict :- There are many types of conflicts in projects as follows :-


 Projects competing with functional departments for resources and personnel.
 Project versus project conflict for resources within multiproject organizations.
 Project team are in almost constant conflict for the project’s resources and for leadership
roles in solving project problems.

Project Management and the Project

The projects are created to focus the responsibility and authority for the attainment of goals to an
individual or a small group.

The project manager is expected to coordinate and integrate all activities to reach the project
goals.

Discourage Suboptimization

Trade off between goals of cost, time and performance


Advantages of Project Management

1. Better control and better customer relations


2. Shorter development times
3. Lower costs
4. Higher quality and reliability
5. Higher profit margins
6. Higher worker morale

Disadvantages

1. Greater organizational complexity


2. Probability that organizational policy will be violated.

Limitations of Project Management

1. The creation of the project itself indicates that there was a limitation of routine output.
2. Conflict
3. PM’s responsibilities and his lack of authority.

Project’s life cycle

Graph on page 13
Graph on page 14

How PM can save project costs if closely follows project life cycle.

Trade off’s between cost, time and performance at different stages of the life cycle of the
project.

Future projection of project costs (Forecasting and uncertainty)

How to make the Projection costs more accurate


Graph

You might also like