Project Management

Merrie Phinney
 Day 1: Overview of Project Management

• Define Project and Project Management

• Describe the three constraints that affect project success

• Describe the main phases of the project management processes

• Establish project objectives

• Apply the management by objectives (MBO) methodology

What is a Project?
A project is a temporary endeavor
undertaken to accomplish a unique
product or service with a defined start and
end point and specific objectives that,
when attained, signify completion.
PMBOK definition
PMBOK is a trademark of the Project Management Institute
What can go wrong in a Project?

The major cause of project failure is not the

specifics of what went wrong, but rather
the lack of procedures, methodology and
standards for managing the project.
PMBOK definition
PMBOK is a trademark of the Project Management Institute
5
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30 fail
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20

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1994 1995 1998 2000
How can we reduce the risks?
How Project Management can help

 Single point of contact and accountability for the

overall success of the project
 Focuses on meeting customer needs and ensuring
satisfaction
 Improves performance in time, cost and technical
areas
 Focuses on managing project scope and controlling
change
 Helps avoid disasters by managing risks
 Strengthens project teams and improves internal
morale
History of Project Management
 In 1917 Henry Gantt developed the Gantt chart as a
tool for scheduling work in job shops
 Modern project management began with the
Manhattan Project (circa 1943), which led to the
development of the atomic bomb
 In 1958, the Navy pioneered the use of PERT
network charts
 In the 1970s, the military began the broad use of
project management software, as did the construction
industry.
 By the 1990s, virtually every industry uses some form
of project management
What is Project Management?
Project management is the application of
knowledge, skills, tools, and techniques
applied to project activities in order to
meet or exceed stakeholder needs and
expectations from a project.
PMBOK definition
PMBOK is a trademark of the Project Management Institute
The Triple Constraint
Scope Creep

1. Add Time- delay the project to give you

more time to add the functionality ($)

2. Add Cost- recruit, hire or acquire more

people to do the extra work ($)

3. Cut Quality- trade off some non-essential

requirements for the new requirements ($)
QUALITY ASSURANCE AND THE SINKING OF THE LARGEST
OFFSHORE OIL PLATFORM
Read this quote from a Petrobras executive, citing the
benefits of cutting quality assurance and inspection costs:
on the project that sunk into the Atlantic Ocean
off the coast of Brazil in March 2001.
"Petrobras has established new global
benchmarks for the generation of
exceptional shareholder wealth
through an aggressive and innovative programme
of cost cutting on its P36 production facility.
Conventional constraints have been
successfully challenged
and replaced with new paradigms appropriate
to the globalised corporate market place.
Through an integrated network
of facilitated workshops,
the project successfully rejected the established
constricting and negative influences of prescriptive
engineering,
onerous quality requirements, and outdated
concepts of inspection and client control.
Elimination of these unnecessary straitjackets has
empowered the project's suppliers and contractors
to propose highly economical solutions,
with the win-win bonus of enhanced
profitability margins for themselves
The P36 platform shows the shape of things to come
in the unregulated global market
economy of the 21st Century.“
 And now you have seen the final
result of this proud achievement by
Petrobras.
"We can do GOOD, QUICK and CHEAP
work.
You can have any two but not all three.

1. GOOD QUICK work won't be CHEAP.

2. GOOD CHEAP work won't be QUICK.
3. QUICK CHEAP work won't be GOOD."
Project Management Processes
Management by Objectives (MBO)
Approach
Establish clear and realistic objectives

Good objectives are “clearly stated” and

contain a “measure” of how to assess
whether they have been achieved.

To be realistic, objectives must be

“determined jointly” by managers and
those who perform the work.
Exercise 1: Setting Clear Objectives

“To have the painter paint my office a

pleasing color”
 But the ceiling is oppressive!
Not only
Ceilings did never
should you paint
be the
mycolor
same officeaswalls blue, They
the walls. but
you always
should paintedbe the ceiling color.
a lighter
blue as well!

You
Youasked
askedfor
meatoblue
room.
paint the
You’re
roomlucky
blue,
Iand
didn’t
nowpaint
you’ve
thegot
floor
a blue
blue
room.
as well.

Office Manager Contractor

How could I have said it?
The floor and all furniture will be covered by drop cloths
prior to painting each of the 4 office walls, not
including the door, base-boards, crown molding,
window frames, windows, light switches, or power
outlets that will be masked with painters tape. The
walls should be painted using Behr paint in Sapphire
Berry #550C-2 in the semi-gloss sheen, using a
nylon/polyester 3” inch wide brush using a vertical
brush stroke, applying two coats of paint, allowing 16
hours between coats, and be completed by Friday,
October 6 including removal of all protective tape.
“I know that’s what I said, but it’s not what I meant!”
Key Messages
 A Project is a unique endeavor directed toward
achieving a specific result; it is temporary, with a
beginning and an end
 Project management is the process of successfully
completing a project
 The triple constraints affecting project success are
requirements, time and cost (resources)
 The main processes of project management are
initiation, planning, execution, control and closeout
 MBO is a specific methodology used to establish
realistic objectives and to measure achievement
Reading Assignments

Case Study 1-1: The Education of Jerry; Part 1-

The Project Environment

Case Study 2-1: Ralph’s Drugstore