J. R. Burns, Texas Tech University Lecture 2 – 8/28/2013 n Review—with recitation What is a project? Can you draw the PMI Lifecycle? PMI Lifecycle n How

J. R. Burns, Texas Tech University

Lecture 2 – 8/28/2013 Review—with recitation

• What is a project?• Can you draw the PMI Lifecycle?• PMI Lifecycle

How do IT Projects Differ from Ordinary Projects?

Project tools PMI PMI Knowledge Areas PMI Processes History


What is a project?

A specific objective must be completed within certain specifications

Has a definite starting date and end date

Has funding limitations Consumes resources (money, people,

time, equipment) Made up of activities (tasks)

Accomplished in teams


PMI’s Definition of Project Management?

Project management is “a temporary endeavor undertaken to create a unique product, service, or result. The temporary nature of projects indicates a definite beginning and end.” (PMI*, Project Management Body of Knowledge (PMBOK Guide), 2008, pg. 5)

*The Project Management Institute (PMI) is an international professional society. Their web site is www.pmi.org.


The overall information and communications technology market grew by 6 percent to almost $3 trillion in 2010

In the U.S. the size of the IT workforce topped 4 million workers in 2008, and the unemployment rate for IT professionals is half the rate for the overall labor market

In 2011 the total compensation for the average senior project manager in U.S. dollars was $105,000 per year in the United States and $160,409 in the Switzerland.

The number of people earning their Project Management Professional (PMP) certification continues to increase. 44 percent of employers listed project management as a skill they looked for in new college grads, behind only communication and technical skills

Project Management Statistics

Information Technology Project Management, Seventh Edition

4


IT Projects have a terrible track record A 1995 Standish Group study (CHAOS) found that only

16.2% of IT projects were successful in meeting scope, time, and cost goals; over 31% of IT projects were canceled before completion. The number of successful IT projects has more than doubled, from 16 percent in 1994 to 37 percent in 2010

The number of failed projects decreased from 31 percent in 1994 to 21 percent in 2010

A PricewaterhouseCoopers study found that overall half of all projects fail and only 2.5% of corporations consistently meet their targets for scope, time, and cost goals for all types of project.

Motivation for Studying Information Technology (IT) Project Management


5


Table 1-4. Nine Hottest Skills*


6

Skill

Percentage of Respondents

Programming and application development 60%

Project management 44%

Help desk/technical support 35%

Networking 35%

Business intelligence 23%

Data center 18%

Web 2.0 18%

Security 17%

Telecommunications 9%

*Source: Rick Saia, “9 Hot IT Skills for 2012,” Computerworld, September 26, 2011.


In a 2011 survey, IT executives listed the “nine hottest skills” they planned to hire for in 2012

Project management was second only to programming and application development

Careers for IT Project Managers


7


Sooo What Is a Project, exactly?? A project is a temporary endeavor

undertaken to accomplish a unique purpose• As defined by the Project Management Institute

Attributes of projects• Unique purpose• Temporary• Require resources, often from various areas• Should have a primary sponsor and/or customer• Involves risk and uncertainty• Has stakeholders


The Project LifeCycle

STAGE 1:Conceptualizing

-and-Defining

STAGE 2:Planning-and-

Budgeting

STAGE 3:Executing

STAGE 5:Terminating-and-Closing

STAGE 4:Monitoring-and-Controlling

J. R. Burns, Texas Tech University1–12

Project Life Cycle

FIGURE 1.1

J. R. Burns, Texas Tech University1–13

Comparison of Routine Work with Projects

TABLE 1.1

Routine, Repetitive WorkTaking 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


How do IT Projects differ from ordinary projects? Ordinary projects might be projects in

construction, aerospace, defense, space, government, etc.

Each IT Project is unique and thus involves more risk

The technology is continually changing Construction projects have much more

definitive requirements, much less risk

There is less visibility


How do IT Projects differ from ordinary projects, continued?

There is a tendency to spend too much time on concept definition and analysis in IT projects

There tends to be less organizational maturity in IT projects

Maturity is a big issue here•Watts Humphrey


How are IT Projects similar to ordinary projects? They have all the common basic

attributes of projects—starting point, stopping point, duration, finite, temporary, creating a deliverable or product, utilizing resources, accomplished in teams, consisting of steps (tasks), accruing cost, etc.

All projects involve risk, accrue expenditures, involve procurement, human resources, etc.


Who does project work?

Accountants—each customer is a ‘project’

Engineers, Lawyers Scientists, Administrators Contractors—electrical, plumbing, AC For these people project management

is not a title but a critical job requirement


The Project LifeCycle

STAGE 1:Conceptualizing

-and-Defining

STAGE 2:Planning-and-

Budgeting

STAGE 3:Executing

STAGE 5:Closing and Terminating

STAGE 4:Monitoring-and-Controlling


Project management involves Conceptualizing and Defining

• Definition of work requirements--WORK BREAKDOWN STRUCTURE--WBS

Planning and Budgeting• Determination of quantity and quality of work• Determination of what resources are needed when

Executing• Actual execution of the project tasks take place here• Tracking progress• Comparing actual to predicted outcomes• Analyzing impact/Making adjustments

Closing and Terminating• What went right? What went wrong?• What can be learned?

Monitoring and Controlling


Successful Project management requires completion of the project on time within budget with the desired

performance/technology level with good customer

satisfaction/relations while using the assigned resources

effectively What is the probability of pulling

this off for IT projects????


Why do bad things happen to good projects??? Ill-defined requirements

• Poorly conceived project deliverable• No shared vision of what the project is to

accomplish Poor planning

• No schedule• No budget• No concern for quality/risk/procurement

Resources don’t materialize when they are needed

Subcontractors don’t deliver on time Requirements change Technology changes


Metzger’s List of Software Development Problems Ill-defined contract Poor planning Unstable problem definition Poor planning Inexperienced management Poor planning, training Political pressures Poor planning Ineffective change control Poor planning Unrealistic deadlines Poor planning


When is project management necessary?

when jobs are complex when there are dynamic

environmental considerations when constraints on time and

budget are tight when there are several activities to

be integrated when there are functional

boundaries to be crossed


Project management encompasses many disciplines

Operations management Operations research Psychology Sociology Organization theory Organizational behavior Systems thinking and

management


Project Management Tools and Techniques

Project management tools and techniques assist project managers and their teams in various aspects of project management

Some specific ones include• Project Charter and WBS (scope)• Gantt charts, PERT charts, Critical Path Method

(CPM), network charts, resource charts, etc.• Cost estimates and Earned Value Analysis (cost)

• MS Project, BaseCamp, Visio, others– Follow me (Jim Burns) on Pinterest


GANTT CHART


Figure 1-4. Sample Gantt Chart*

*This template file comes with MS Project

Gantt Chart


WORK BREAKDOWN 1


WORK BREAKDOWN 2


NETWORK CHART 1


Figure 1-5. Sample Network 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 thecritical 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 8/12/98 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


IT Projects have a poor track record• A 1995 Standish Group study found that only

16.2% of IT projects were successful• Over 31% of IT projects were canceled before

completion, costing over $81 B in the U.S. alone

A ComputerWorld article listed “project manager” as the #1 position IT managers say they need most for contract help• Often, this leads to distributed PM

Projects create ¼ of the US and world GDP

Motivation for Studying Information Technology (IT) Project Management


The Triple Constraint

Every project is constrained in different ways by its• Scope goals• Time goals• Cost goals

It is the project manager’s duty to balance these three often competing goals


Project Stakeholders Stakeholders are the people involved in or

affected by project activities Stakeholders include

• the project sponsor and project team– The project sponsor is the person who funds the project

• support staff• customers• users• upper management• line management• suppliers• opponents to the project


Ten Project Management Knowledge Areas Knowledge areas describe the key

competencies that project managers must develop• Four core knowledge areas lead to specific project

objectives (scope, time, cost, and quality)• Five facilitating knowledge areas are the means

through which the project objectives are achieved (human resources, communication, risk, and procurement management

• One knowledge area (project integration management) affects and is affected by all of the other knowledge areas


PM Knowledge Areas

ProjectScope Management

ProjectTime Management

ProjectCost Management

ProjectQuality Management

ProjectHuman Resource Management

ProjectCommunications Management

ProjectRisk Management

ProjectProcurement Management

Project Integration Management

Core Knowledge Areas Facilitating Knowledge Areas

Project Stakeholder Management


Project Management Framework – PMI – 3RD Edition

TT


Figure 1-2 Project Management Framework—PMI 4th Edition


39


Advantages of Project Management Bosses, customers, and other stakeholders

do not like surprises Good 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 good documentation

Project members learn and grow by working in a cross-functional team environment

Source: Knutson, Joan, PM Network, December 1997, p. 13


How Project Management (PM) Relates to Other Disciplines

Much of the knowledge needed to manage projects is unique to PM

However, project managers must also have knowledge and experience in• general management• the application area of the project

Project managers must focus on meeting specific project objectives


Figure 1-3. Project Management and Other Disciplines


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 Gantt chart as a tool for scheduling work in job shops

In 1958, the Navy developed PERT charts In the 1970s, the military began using

project management software, as did the construction industry

By the 1990s, virtually every industry was using some form of project management


The Project Management Profession

A 2006 Fortune article called project management the “number one career choice”

Other authors, like Tom Peters and Thomas Stewart, stress that projects are what add value to organizations

Professional societies like the Project Management Institute have grown tremendously


Figure 1-9 Growth in PMP Certification, 1993-2011


45


Project Management Certification

PMI provides certification as a Project Management Professional (PMP)

A PMP has documented sufficient project experience, agreed to follow a code of ethics, and passed the PMP exam

The number of people earning PMP certification is increasing quickly


Code of Ethics

PMI developed a project management code of ethics that all PMPs must agree to abide by

Conducting work in an ethical manner helps the profession earn confidence

Ethics are on the web at www.pmi.org/certification/code.htm

http://www.pmi.org/certification/code.htm

http://www.pmi.org/certification/code.htm


CAPM (Certified Associate in Project Management)

Requires passing an exam prepared by PMI only.


Discussion Questions

Give three examples of activities that are projects and three examples of activities that are not projects

How is project management different from general management?

Why do you think so many information technology projects are unsuccessful?


A Favorite Web Site

http://portfolio-engineering.com

http://portfolio-engineering.com/

Documents

J. R. Burns, Texas Tech University Lecture 2 – 8/28/2013 n Review—with recitation What is a project? Can you draw the PMI Lifecycle? PMI Lifecycle n How