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Chapter 1,
Introduction to Project
Management
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Learning Objectives
? Explain what a project is and provide examples of
information technology projects
? Describe what project management is and discuss
key elements of the project management framework
? Describe how project management relates to other
disciplines
? Understand the history of project management
? Explain the growing need for better project
management,especially for information technology
projects
? Describe the project management profession,
including recent trends in project management
certification and software products
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Chapter Outline
? Introduction
? What is a Project?
? What is Project Management?
? How Project Management Relates to Other
Disciplines
? History of Project Management
? The Project Management Profession
? Project Management Careers
? Project Management Certification
? Code of Ethics
? Project Management Software
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1.1 Introduction
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Recent Facts About Project
Management*
? The Project Management Institute (PMI)
estimates that 4.5 million people in the
U.S,(3.3% of the workforce) and over
12 million people in the rest of the world
regard project management as their
profession of choice
? The U.S,spends over $2.3 trillion on
projects every year,or one quarter of
the nation’s gross domestic product
*The PMI Project Management Fact Book,Second Edition,PMI,2001
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Certification Updates
? The number of
PMPs continues to
grow,and PMI is
creating new
certifications
? CompTIA
purchased the
Gartner Institute
IT PM exams and
launched the IT
Project+ exam in
April 2001*
Number of PMPs 1,0 0 0
1,9 0 0
2,8 0 0
4,4 0 0
6,4 1 5
1 0,0 8 6
1 8,1 8 4
2 7,0 5 2
3 5,4 6 5
0
5,0 0 0
1 0,0 0 0
1 5,0 0 0
2 0,0 0 0
2 5,0 0 0
3 0,0 0 0
3 5,0 0 0
4 0,0 0 0
1993 1994 1995 1996 1997 1998 1999 2000 2001
Y e a r
#
P
M
P
s
A s of S e p,' 01
*www.pmi.org www.comptia.org
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Caveat
? The text for this class emphasizes
using project management (PM) on
information technology (IT) projects
? The general concepts of PM are the
same in all application areas
? We’ll also use non-IT examples to
illustrate how PM works in different
contexts
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? A 1995 Standish Group study (CHAOS) found
? only 16.2% of IT projects were,successful”
? and over 31% were canceled before completion,
costing over $81 B in the U.S,alone,
? Time overruns were 222%,
? cost overruns were 189%,
? and only 61% of features were provided
? The latest CHAOS Study (2001 data) showed
improvements in all areas but still…
? Only 28% of IT projects succeeded
Motivation for Studying IT
Project Management
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The Need for
IT Projects Keeps Increasing
? In 1998,corporate
America issued
200,000 new-start
application
development projects
? In 2000,there were
300,000
? In 2001,the
estimate is over
500,000
N u m b e r o f N e w A p p l i c a t i o n D e v e l o p m e n t
P r o j e c t s
-
1 0 0,0 0 0
2 0 0,0 0 0
3 0 0,0 0 0
4 0 0,0 0 0
5 0 0,0 0 0
6 0 0,0 0 0
1998 2000 2001
*The Standish Group,"CHAOS 2001,A Recipe for Success," 2001
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1.2 What Is a Project?
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The definition of Projects
? A project is a temporary endeavor
undertaken to create a unique product
and service
? Attributes of projects
? unique purpose
? temporary
? require resources,often from various areas
? should have a primary sponsor and/or
customer
? involve uncertainty
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Samples of IT Projects
? Airlines developed a new reservation
system
? Many organizations upgrade hardware,
software,and networks via projects
? Organizations develop new software or
enhance existing systems to perform
many business functions
? Note:,IT projects” refers to projects
involving hardware,software,and networks
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Samples of Non-IT Projects
? Constructing a new building
? Developing a new product
? Planning/holding a major event like a
wedding,party,etc,
? Your examples?—Training
? Note,Try to think of projects that
involve several people with different
backgrounds
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The Triple Constraint
? Every project is constrained in different
ways by its
? Scope goals,What is the project trying to
accomplish?
? Time goals,How long should it take to
complete?
? Cost goals,What should it cost?
? It is the project manager’s duty to balance
these three often competing goals while
also pleasing project stakeholders,
especially the sponsor/customer
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The Triple Constraint of
Project Management
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Exercise on the
Triple Constraint
? Give a real project example you’re
familiar with
? Describe in your own words what the
triple constraint really means
? Was the project,successful?”
? Why or why not?
? How did you define success?
-your four-year training
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Improvement in IT Project*
? Time overruns significantly decreased to 63%
compared to 222%
? Cost overruns were down to 45% compared
to 189%
? Required features and functions were up to
67% compared to 61%
? 78,000 U.S,projects were successful
compared to 28,000
? 28% of IT projects succeeded compared to
16%
? The 2001 Standish Group Report(from 1995)
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Why the Improvements?
? The reasons for the increase in
successful projects vary,
? First,the average cost of a project has
been more than cut in half,
? Better tools have been created to
monitor and control progress
? and better skilled project managers with
better management processes are being
used,
The Standish Group,"CHAOS 2001,A
Recipe for Success" (2001)
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Advantages of Using Formal
Project Management
? Better control of financial,physical,and
human resources
? Improved customer relations
? Shorter development times
? Lower costs
? Higher quality and increased reliability
? Higher profit margins
? Improved productivity
? Better internal coordination
? Higher worker morale
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1.3 What is Project
Management?
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The definition of PM
Project management(PM) is
“the application of knowledge,skills,
tools,and techniques to project
activities in order to meet or exceed
stakeholders’ needs and expectation
from a project,
(PMI*,Project Management Body of
Knowledge (PMBOK Guide),2000,p,6)
*The Project Management Institute (PMI) is an international
professional society,Their web site is www.pmi.org,
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Operations vs,PM
? Project management
? One-time execution
? Objective oriented
? Teamwork with PM
? Change
management
? Operation
? Repetitive with
existing systems
? Efficiency &
effectiveness
? Line management
? Maintaining
consistency
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Project Stakeholders
? Stakeholders are the people involved in or
affected by project activities
? Stakeholders include
? project team
? support staff
? Sponsor,owner
? customers
? Suppliers,contractor,vendor
? opponents to the project
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PM Framework
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9 Project Management
Knowledge Areas
? Knowledge areas describe the key
competencies that project managers must
develop
? 4 core knowledge areas lead to specific project
objectives (scope,time,cost,and quality)
? 4 facilitating knowledge areas are the means
through which the project objectives are achieved
(human resources,communication,risk,and
procurement management)
? 1 knowledge area (project integration
management) affects and is affected by all of the
other knowledge areas
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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,network diagrams,critical path
analysis,
? Cost estimates and Earned Value Management
(cost)
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Sample Project Charter
P roje ct T itle, Inf orm ation T ec hn olo gy ( IT ) Upg ra de P rojec t
P roje ct S tart D ate,M ar ch 4,20 02 P roje ct ed F inish Date, De ce m ber 4,20 2
P roje ct Manag er, Kim N gu y en,69 1 - 27 84,kn gu y en@ abc,com
P roje ct O bj ec tives,Upg ra d e hardwar e and sof twa re fo r all em plo y ee s
(a pp roxim ate ly 2,00 0) within 9 m on ths based on new corporate sta nd ar ds, Se e
atta ched sheet describing the new stand ar ds, U pg ra des m ay a f f ec t se rver s a nd
m idrange c om pu ter s a s w ell as network har dwar e and sof twa re, Bud geted $1,000,000
f or hardwar e and sof twa re c os ts a nd $50 0,00 0 f or labo r costs,
Ap pr oa ch,
? ? Upd ate the IT invento ry data base to dete rm ine upg ra de needs
? ? De velo p detailed cost estim ate fo r project and r epo rt to CI O
? ? Issue a r equ est f or qu otes to ob tain har d wa re a nd sof twa re
? ? Use internal staf f a s m uch a s po ssib le to do the plan nin g,analy sis,and installation
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Sample Project Charter (continued)
N a m e R o le R e spo nsibilit y
Wa lte r Sc h m idt,CE O Pr o je c t Sp o n so r M o n itor p r o je c t
M ike Z w a c k CI O M o n itor p r o je c t,p r o v ide
sta f f
K im N g u y e n Pr o je c t M a n a g e r Pla n a n d e x e c u te p r o je c t
J e f f J o h n so n D ir e c tor o f I T O p e r a tion s M e n tor K im
N a n c y Re y n o lds V P,H u m a n R e so u r c e s Pr o v ide s ta f f,iss u e m e m o
to a ll e m p loy e e s a b o u t
p r o je c t
Ste v e M c Ca n n D ir e c tor o f Pu r c h a sin g A ss ist in p u r c h a sin g
h a r d w a r e a n d s o f tw a r e
Sign - o f f, ( Sig n a tur e s o f a ll a b o v e s ta k e h o lde r s)
C o m m e nt s,( H a n d w r itt e n c o m m e n ts f r o m a b o v e s ta k e h o lde r s,if a p p lic a b le )
T h is p r o je c t m u st b e d o n e w ithin te n m o n ths a t the a b so lute la te st,M ik e Zwa c k,CI O
We a r e a ss u m ing th a t a d e q u a te s ta f f w ill b e a v a ila b le a n d c o m m itt e d to s u p p o r ting th is
p r o je c t,So m e w o r k m u st b e d o n e a f te r h o u r s to a v o id w o r k d isr u p tion s,a n d o v e r time
w ill b e p r o v ide d, J e ff J o h n so n a n d Kim Ng u y e n,I T I n for m a tion Te c h n o log y D e p a rtm e n t
Roles and Responsibilities,
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Sample WBS for Intranet
Project in Chart Form
Con cept
De s i gn Us er I n te rf a ce
De s i gn S er v er S et u p
Dev el op Serv er
Su pp ort I n f ra s tru ct u re
W eb S i te
De s i gn
De v el op P a ge s
a n d Li n ks
De v el op
Fu n ct i on a l i ty
Con ten t
M i gra ti on /I n te gra ti on
T es ti n g
W eb S i te
De v el op m en t
Ro l l Ou t Su pport
I n tra n et P roj ec t
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Sample Gantt Chart
The WBS is on the left,and each task’s start and finish date
are shown on the right using a calendar timescale,
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Sample Network Diagram
Each box is a project task from the WBS,Arrows show dependencies
between tasks,The bolded tasks 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,
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Sample Earned Value Chart
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PMs Can’t Neglect Business
and Leadership Skills
? In addition to using appropriate PM
tools and techniques,PMs must use
? Business skills,financial analysis,
problem-solving,decision-making
? Leadership skills,negotiation,team-
building
? Communication skills,listening,
speaking,writing,presenting
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1.4 How Project Management
Relates to Other Disciplines
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Relations 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
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PM and Other Disciplines
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1.5 History of Project
Management
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History of PM
? 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 1957 Dupont and Remington Rand developed
CPM
? In 1958,the Navy developed PERT charts
? In the 1970s,the military began using PM
software,as did the construction industry
? By the 1990s,virtually every industry was using
some form of project management
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1.6 The Project Management
Profession
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The PM Profession
? A 1996 Fortune article called project
management the,number one career
choice”
? Professional societies like the Project
Management Institute (PMI) have
grown tremendously
? Average salaries for project managers
are over $81,000
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PM Knowledge Continues to
Grow and Mature
? PMI hosted their first research conference in
June 2000 in Paris,France,second one in
July 2002
? The PMBOK Guide – 2000 Edition is an ANSI
standard,and PMI’s certification
department earned ISO 9000 certification
? Hundreds of new books,articles,and
presentations related to PM have been
written in recent years
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PM 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
? PMI and other organizations are
offering new certification programs,
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Code of Ethics
? As a professional in the field of project
management,PMI members pledge to uphold and
abide by the following,
? I will maintain high standards of integrity and
professional conduct
? I will accept responsibility for my actions
? I will continually seek to enhance my professional
capabilities
? I will practice with fairness and honesty
? I will encourage others in the profession to act in an
ethical and professional manner,
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Project Management Software
? By 2001,there were hundreds of different
products to assist in performing project
management
? Three main categories of tools,
? Low-end tools,Handle single or smaller projects
well,cost under $200 per user
? Midrange tools,Handle multiple projects and
users,cost $200-500 per user,Project 2000
most popular
? High-end tools,Also called enterprise project
management software,often licensed on a per-
user basis
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Don’t Overemphasize
Using PM Software
? You can’t use PM software well if
you don’t understand fundamental
PM concepts
?,A fool with a tool is still just a fool.”
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You Can Apply PM to Many Areas
? Project management applies to work as well
as personal projects
? Project management applies to many
different disciplines (IT,engineering,
construction,finance,sports,event planning,
etc.)
? Project management skills can help in
everyday life,especially in properly scoping
projects and dealing with different
stakeholders
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Quick Quiz
? 1,What three knowledge areas comprise the triple constraint of
project management?
? 2,Name two tools and techniques that are unique to project
management,
? 3,Modern project management began with what project?
? 4,What is the designation for people certified as project
managers by the Project Management Institute?
ANSWER,scope,time,and cost
ANSWER,Any of the following,project charter,WBS,Gantt
chart,network diagram,critical path analysis,project cost estimates,
earned value chart
ANSWER,The Manhattan Project
ANSWER,PMP for Project Management Professional