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Copyright Course Technology 1999 1
Chapter 1:
Introduction to Project
Management
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Copyright Course Technology 1999 2
IT Projects have a terrible track record
A 1995 Standish Group study found that only16.2% of IT projects were successful
Over 31% of IT projects were canceled beforecompletion, costing over $81 B in the U.S. alone
A 1999 ComputerWorld article listed projectmanager as the #1 position IT managers say
they need most for contract help The need for IT projects keeps increasing
Companies in general are emphasizingprojects
Motivation for Studying Information
Technology (IT) Project Management
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Copyright Course Technology 1999 3
What Is a Project?
A project is a temporary endeavorundertaken to accomplish a uniquepurpose
Attributes of projects unique purpose
temporary
require resources, often from variousareas
should have a primary sponsor and/orcustomer
involve uncertainty
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Copyright Course Technology 1999 4
Samples of Projects
Northwest Airlines developed a newreservation system called ResNet (seechapters 11-16)
Bank of America created a system tointegrate check processing, checkingaccounts, and savings accounts invarious states (p. 130)
Kodak created the Advantix AdvancedPhoto System in one of their mostambitious projects ever (p. 302)
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Copyright Course Technology 1999 5
Projects Ive Worked On
Writing this book!Writing a web-based CBT course
Starting a new academic program
Purchasing a risk management system foran oil company
Starting a new internal consulting group
Managing a beta test for new software
The National Aerospace Plane Project
The High Reliability Fighter Project
The Local Online Network System Project
etc., etc., etc.
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Copyright Course Technology 1999 6
The Triple Constraint
Every project is constrained in differentways by its
Scope goals
Time goals
Cost goals
It is the project managers duty to
balance these three often competinggoals
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Figure 1-1. The Triple Constraint
of Project Management
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Exercise on the Triple Constraint
Pair up and instructor assign rolesPlayer describe in your own words
what the triple constraint really
means, then give an example of it ona real project youre familiar with
Coach listen and ask questions,
then be ready to share what yourpartner said
Was the project successful? Whyor why not?
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Copyright Course Technology 1999 9
What is Project Management?
Project management is theapplication of knowledge, skills, tools,and techniques to project activities in
order to meet or exceed stakeholderneeds and expectations from aproject (PMI*, Project ManagementBody of Knowledge (PMBOK Guide),
1996, p. 6)*The Project Management Institute (PMI) is an international professionalsociety. Their web site is www.pmi.org. Over 315,000 copies of the PMBOKGuide were in circulation by June 1999.
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Figure 1-2. Project Management
Framework
TT
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Copyright Course Technology 1999 11
Project Stakeholders
Stakeholders are the people involved inor affected by project activities
Stakeholders include
the project sponsor and project team support staff
customers
users suppliers
opponents to the project
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Copyright Course Technology 1999 12
9 Project Management
Knowledge AreasKnowledge areas describe the key
competencies that project managers mustdevelop
4 core knowledge areas lead to specific projectobjectives (scope, time, cost, and quality)
4 facilitating knowledge areas are the meansthrough which the project objectives are achieved(human resources, communication, risk, andprocurement management)
1 knowledge area (project integrationmanagement) affects and is affected by all of theother knowledge areas
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Copyright Course Technology 1999 13
Project Management Tools and
Techniques
Project management tools andtechniques assist project managersand their teams in various aspects of
project management
Some specific ones include
Project Charter and WBS (scope)
Gantt charts, PERT charts, critical pathanalysis (time)
Cost estimates and Earned Value Analysis(cost)
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Copyright Course Technology 1999 14
Sample WBS for Intranet Project
in Chart Form
Concept
Desi n ser Interf ce
Desi n er er et p
Develop erverpport Infr str ct re
Web iteDesi n
Develop esand inks
DevelopFunctionalit
Contenti ration/Integration
Testing
Web iteDevelopment
oll ut upport
Intranet roject
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Figure 1-4. Sample Gantt Chart*
*This template file comes with Project 98
WBS Gantt Chart
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Copyright Course Technology 1999 16
Figure 1-5. Sample PERT Chart
Each box is a project task from the WBS. Arrows show dependencies
between tasks. The tasks in red are on the critical path. If any tasks on the
critical path take longer than planned, the whole project will slip
unless something is done.
B
2 2 days
Mon 8/3/98 Tue 8/4/98
C
3 3 days
Mon 8/3/98 Wed 8/5/98
D
4 4 days
Tue 8/4/98 Fri 8/7/98
E
5 5 days
Wed 8/5/98 Tue 8/11/98
G
7 6 days
Thu 8/6/98 Thu 8/13/98
H
8 6 days
Wed 8/12/9 Wed 8/19/98
I
9 2 days
Fri 8/14/98 Mon 8/17/98
F
6 4 days
Wed 8/5/98 Mon 8/10/98
A
1 1 day
Mon 8/3/98 Mon 8/3/98
J
10 3 days
Thu 8/20/98 Mon 8/24/98
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Copyright Course Technology 1999 17
0
50
100
150
200
250
300
1 2 3 4 5 6 7 8 9 10 11 12
Month
WS
r
m l
t v
Pl
WP
r
m l
t v
ct
l
WP
r
m l
t v
V
WS
WP
W P
h dul i n
o t i n
E
Sample Earned Value Chart
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Copyright Course Technology 1999 18
Advantages of Project Management*Bosses, customers, and other stakeholders
do not like surprisesGood project management (PM) provides
assurance and reduces risk
PM provides the tools and environment to
plan, monitor, track, and manage schedules,resources, costs, and quality
PM provides a history or metrics base for
future planning as well as gooddocumentation
Project members learn and grow by workingin a cross-functional team environment
*Source: Knutson, Joan, PM Network, ecember 1997, p. 13
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Copyright Course Technology 1999 19
How Project Management (PM)
Relates to Other Disciplines
Much of the knowledge needed tomanage projects is unique to PM
However, project managers must alsohave knowledge and experience in
general management
the application area of the project
Project managers must focus onmeeting specific project objectives
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Copyright Course Technology 1999 20
Figure 1-3. Project Management
and Other Disciplines
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History of Project Management*Modern project management began with
the Manhattan Project, which the U.S.military led to develop the atomic bomb
In 1917 Henry Gantt developed the Ganttchart as a tool for scheduling work in jobshops
In 1958, the Navy developed PERT charts
In the 1970s, the military began usingproject management software, as did theconstruction industry
By the 1990s, virtually every industry wasusing some form of project management
* August 1999 PM Network has good articles on history of PM
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The Project Management
Profession
A 1996 Fortune article called projectmanagement the number one careerchoice
Other authors like Tom Peters andThomas Stewart stress that projectsare what add value to organizations
Professional societies like the Project
Management Institute have growntremendously
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Copyright Course Technology 1999 23
Project Management
Certification PMI provides certification as a Project
Management Professional (PMP)
A PMP has documented sufficient project
experience, agreed to follow a code ofethics, and passed the PMP exam
The number of people earning PMPcertification is increasing quickly
Other groups, like the Gartner Group and theSingapore Computer Society, have their ownIT PM Certification programs
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Figure 1-6. Growth in PMP
Certification, 1993-1998 Over 12,500by May 1999
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Code ofEthics
PMI developed a project managementcode of ethics that all PMPs must agreeto abide by
Conducting work in an ethical mannerhelps the profession earn confidence
Ethics are on the web at
www.pmi.org/certification/code.htm
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