Scribd
Upload
121 views

CH 01

Uploaded by

shital_vyas1987
Copyright
© © All Rights Reserved
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
121 views

CH 01

Uploaded by

shital_vyas1987
Copyright
© © All Rights Reserved
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
You are on page 1/ 30

Chapter 1

The World of Project Management

MEM 612 Project Management


WHAT IS A PROJECT?

MEM 612 Project Management


Why the emphasis on project
management?
Many tasks do not fit neatly into business-
as-usual.
Need to assign responsibility and authority
for achievement of organizational goals.

MEM 612 Project Management


Characteristics of Projects
Unique
Specific Deliverable
Specific Due Date

MEM 612 Project Management


Other Common Characteristics of
Projects
Multidisciplinary
Complex
Conflict
Part of Programs

MEM 612 Project Management


PMI Definition
A temporary endeavor undertaken to create
a unique product or service

Project Management Institute, 2000

MEM 612 Project Management


PROJECT MANAGEMENT VS.
GENERAL MANAGEMENT

MEM 612 Project Management


Skill Requirements for Effective
Project Management
Conflict Resolution
Creativity and Flexibility
Ability to Adjust to Change
Good Planning
Negotiation
win-win versus win-lose

MEM 612 Project Management


WHAT IS MANAGED? THE
THREE GOALS OF A PROJECT

MEM 612 Project Management


Figure 1-1: Performance, Cost,
and Time Project Targets

MEM 612 Project Management


THE LIFE CYCLES OF
PROJECTS

MEM 612 Project Management


Figure 1-2 The Project Life Cycle

MEM 612 Project Management


Figure 1-3 An Alternate Project
Life Cycle

MEM 612 Project Management


SELECTING PROJECTS

MEM 612 Project Management


Nonnumeric Selection Methods
The Sacred Cow
The Operating/Competitive Necessity
Comparative Benefits

MEM 612 Project Management


Figure 1-4 The Q-Sort Method

MEM 612 Project Management


Numeric Selection Methods
Financial Assessment Methods
payback period
discounted cash flow
Scoring Methods
unweighted 0-1 factor method
weighted factor scoring method

MEM 612 Project Management


Payback Period

Initial Fixed Investment


Annual Net Cash Inflows

MEM 612 Project Management


Discounted Cash Flow

n
Ft
NPV (project) - I 0
t 1 (1 k )
t

where
I0 = the initial investment
Ft = the net cash flow in period t
k = the required rate of return or hurdle rate

MEM 612 Project Management


The Weighted Scoring Model

n
Si sij w j
j 1

where
Si = the total score of the ith project
sij = the score of the ith project on the jth criterion
wj = the weight or importance of the jth criterion

MEM 612 Project Management


Confronting Uncertainty The
Management of Risk

MEM 612 Project Management


What uncertainties are encountered
in project management?
Time required to complete a project
Availability of key resources
Cost of resources
Timing of solutions to technological
problems
Actions taken by competitors

MEM 612 Project Management


Can uncertainty surrounding
projects ever be eliminated?
No, but it can be managed

MEM 612 Project Management


Risk Analysis
Estimate probabilities or distributions
associated with key parameters
Develop analytic or simulation model
Analyze distribution of outcomes
generated by model

MEM 612 Project Management


Risk Analysis with Crystal Ball
Assumption Cells
Distribution Gallery
Forecast Cells

MEM 612 Project Management


THE PROJECT PORTFOLIO
PROCESS

MEM 612 Project Management


The Project Portfolio Process
Step 1: Establish a Project Council
Step 2: Identify Project Categories and Criteria
Step 3: Collect Project Data
Step 4: Assess Resource Availability
Step 5: Reduce the Project and Criteria Set
Step 6: Prioritize the Projects within Categories
Step 7: Select the Projects to be Funded and
Held in Reserve
Step 8: Implement the Process

MEM 612 Project Management


The Aggregate Project Plan

MEM 612 Project Management


Figure 1-12 An Example
Aggregate Project Plan

MEM 612 Project Management


Copyright
Copyright 2005 John Wiley & Sons, Inc.
All rights reserved. Reproduction or translation of this work beyond that
permitted in Section 117 of the 1976 United States Copyright Act
without express permission of the copyright owner is unlawful.
Request for further information should be addressed to the
Permissions Department, John Wiley & Sons, Inc. The purchaser
may make back-up copies for his/her own use only and not for
distribution or resale. The Publisher assumes no responsibility for
errors, omissions, or damages, caused by the use of these programs
or from the use of the information herein.

MEM 612 Project Management

You might also like