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Chapter 1

Projects in
Contemporary
Organizations

Copyright 2012 John Wiley & Sons, Inc.

Project or Not?

Project

Developing a new product

Improving the services provided
Constructing a section of highway
Building the Chunnel
Expanding the Panama Canal
Launching a rocket

Not a Project

Manufacturing automobiles
Delivery of mail
Daily flights Toronto-New York
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The Definition of a Project

A temporary endeavor undertaken to

create a unique product, service, or result
Modern project management began with
the Manhattan Project
In its early days, project management was
used mainly for large complex projects
As the tools and techniques were
developed, the use of project organization
began to spread
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Major Characteristics of a Project

Importance to senior management

Scope specifications and expectations
Life cycle with a finite due date
Interdependencies Reliance on or
competition with other/external groups
Uniqueness
Resources Limited
Conflict among stakeholders: client, parent
organization, project team, the public
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How Project Management Developed

Credit for the development of project

management goes to the military

Navys Polaris program

NASAs Apollo space program
Development of smart bombs and missiles

Project management has found wide

acceptance in industry
It has many applications outside of construction

Managing legal cases

Managing new product releases
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Forces Fostering Project Management

Main forces in driving the acceptance of

project management:

Exponential growth of human knowledge

Growing demand for a broad range of
complex goods and services
Increased worldwide competition

All of these contribute to the need for

organizations to do more and to do it
faster
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Recent Changes in Managing

Organizations
Consensual management
Systems approach
Projects are established in order to
accomplish set goals

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Why Project Management?

The main purpose for initiating a project is
to accomplish some goal

Project management increases the
likelihood of accomplishing that goal

Project management gives us someone
(the project manager) to spearhead the
project and to hold accountable for its
completion

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Three Project Objectives: The Triple

Constraint
Time
Cost
Scope

Specifications
Clients Expectations

Time, cost, and performance are all related

to a project
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Direct Project Goals: Scope, Cost,

Time

Figure 1-1

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Project Success

Project efficiency
Impact on the customer
Business impact on the organization
Opening new opportunities for the future

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Project Manager
Project manager is the key individual on a
project

Project manager is like a mini-CEO

More to come in Chapter 3

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Realities of Project Management

Complexity
Conflict

Risk

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Project Life Cycles

Return on Input
Stretched S-curve (e.g. construction)

% Project
Completion

Time

Time

Stretched J-curve (e.g. baking a cake)

100
% Project
Completion

% Project
Completion

Linear (e.g. demolition)

100

Stair steps (e.g. getting a degree)

100

% Project
Completion

100

Time

Time

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Time Distribution of Project Effort

Figure 1-3

Figure 1-4

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Estimates of Project Costs

During Life Cycle

At Start of Life Cycle

Figure 1-6

Figure 1-7

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Textbook Readings

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Look Ahead
Topic: Project Selection and Proposals

Reading: Chapter 2: Strategic
Management and Project Selection

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