Lecture II

In the beginning God created the universe. All subsequent projects have been of lesser significance. - Anonymous

Facets of a Project
Temporary Unique product, services or result

Progressive Elaboration
Requires resources Involves uncertainty

Difference Between Projects & Routine Operations

PROJECTS OPERATIONS

Purpose of a project is to its New types of tasks Day toattain Day activity
objective and Require extensive then terminate Repetitive
planning Same type of Unique outputsof an ongoing outputoperation is The objective Starting and ending the business No ending date to sustain SIMILARITIES date Limited funds

Examples
Building a water system for community

Manufacturing Skoda cars in a plant

Running MPM program at Bahria

University Research on Higgs Boson Establishing solar powered park Telephony services at home Feasibility study of power generation through wind mills

History of Project Management

Ancient feats of construction

Taj Mahal
20,000 workers

Craftsmen from all

around the world, China, Bukhara, Syria, Afghanistan, Persia, Tibet, India, Sri Lanka Approximately 12+10 years to complete 1000 elephants Completed in 1643 32 million rupees in

 77,000 sq

meters of space Built in 1703

 1933-1937

$37 million
Finished $1.3

million under budget

Airbus A380

PMBOK 5

2013

IPMA: International Public Mgt Asso AACE: Assoc for advancement of cost engineering CCPM: Critical chain PM

Why Start Projects?

Market demand Business need Customer request Technological advance Legal requirement Social need

Why Start Projects?

An oil company builds a new refinery in response to gasoline shortages Market demand

Training company authorizes a project to create Business need a new course to increase revenue
Electric utility company starts a project to build as new substation Customer request to serve a new locality

3 D HD TVs Technological advance

Paint Company authorizes a project to establish guide lines Legal requirement to handle toxic material

Social need

Government starts Rescue 911 emergency services

Project Management

Modern day Pioneers

1900 Fredrick Taylor

(worker productivity)

1930 Henry Gantt

(Gantt Charts)

1950 Willard Fazar

(Program Evaluation and Review Technique PERT)

Food for thought

Project Management has been around for

centuries Principles are same Priorities differ (from place to place and time to time) Methodologies may differ QUESTION Are you going to benefit from Project Management?

Project Management Need

Complex project needs coordination of :

Multiple people Multiple resources (labs, equipment, etc.) Multiple tasks some must precede others Multiple decision points approvals Phased expenditure of funds Matching of people/resources to tasks

Project Manager
A person who manages a project

Practical Practical Experien Experien Motivato Communicat Organize Conflict ce in ce ( r or r Resolver Project Relevant Mgmt Field)

HELL

Triple Constraints

QUALITY
Increased Scope = increased time + increased cost Tight Time = increased costs + reduced scope Tight Budget = increased time + reduced scope.

SCOPE

Transition Process
Different project constraints can come into play at different times in the project and each of these constraint needs to be evaluated in terms of customer satisfaction