PROJ 520 Project Management Fundamentals

Acronym

Instructor: Christine X. Dai, Ph.D. Course Administration (Chapter 1) Project Management Fundamentals

PM = project management PMgr = project manager

(PMI and its PMBOK)

Project Management Institute Project Management Body of Knowledge

Definition of Project
A temporary endeavor undertaken to create a unique product or service
Unique: asset or means of producing it
uncertainty and complexity

Is It A Project?
R&D:
Finding a cure for cancer

Temporary deadlines
Shorter payback period better

Operations:
Building 1,000th automobile on an assembly line Installing a residential phone line

Creation resources Product / Service delivered assets

i.e., something of lasting value

Projects as Investments
Senior management commits to a portfolio:
Ongoing operations, R&D, Projects, etc. Program: a set of related projects

Projects as

Management Experiments
Limited scale & temporality providing feedback on opportunities to pursue (or abandon) new:
Capabilities Technologies Market niches Relationships etc.

Understand individual investment risks better understanding of portfolio risk

The Triple Constraint (Three Project Objectives)

Constraint a factor
that creates risks by limiting project options
Cost

Triple Constraint Management Matrix

Reflects prioritization of triple constraint & helps understand impact of changes

Triple Constraint:
Cost ceiling, Resource unavailability Due date, Duration Required deliverable, Quality level

o s t

C T i m e

Constraint

Priority

1. Constrain (fix)

2. Minimize / Maximize

3. Accept

Cost

Time

Scope

Schedule
What will happen if all 3 constraints are aggressive and fixed?

Performance (Scope)
Scope/Performance

Example: Apollo Space Program

Constraint Priority 1. Constrain (fix) 2. Minimize/ Maximize 3. Accept

An Unacceptable Change in a Constraint

Constraint Priority 1. Constrain (fix) 2. Minimize/ Maximize 3. Accept

Cost: $20B Schedule: Dec. 31 1968 Scope (Performance): Land a man on the moon

Cost: $10B Schedule: Dec. 31 1968 Scope (Performance): Land a man on the moon

why project planning is such a critical element of PM

An Acceptable Change in Priorities

Constraint Priority 1. Constrain (fix) 2. Minimize/ Maximize 3. Accept

Project Life Cycle and Risk Profile: (Value of Early Feedback)

X
A U bility nc ert to in a i n f lu en ty ce n t io en sts nt att o k c eme un S anag M
another argument for why planning is so critical.

Cost: $20B Schedule: Dec. 31 1968 Scope (Performance): Land a man on the moon and ??

ou t co me s

Early phases phases

Later

Definition of PM ? Why Project Management? Plus Minus

Responsive to client and environment Fast problem resolution Quick decision making No sub optimization More ? ? ?
PM the application of resources, time and expertise to meet project requirements. Textbook? PMBOK? etc. Yours?

Wrap-Up