Topic 1

Modern Project
Management

McGraw-Hill/Irwin © 2008 The McGraw-Hill Companies, All Rights Reserved

 Objectives:
1. Explain the basic concepts of a project, project cycle and
project management.
2. Understand the importance of project management.
3. Cite the tasks of the project manager.
4. Discuss the integrative project management approach

1-2
1-3
Introduction

“All of mankind’s greatest

accomplishments from building the
great pyramids to discovering a cure
for polio, to putting the man on the
moon-began as a project”
On this note we can also add that the
development of the Covid-19 vaccine
is one of the most important,
complex, challenging and historic
projects in the 21st century.
Introduction (cont’d)

• Project mgt. (PM) is a strategic imperative.

• PM provides people with a powerful set of
tools that improve their ability to plan
implement and manage activities to
accomplish orgz’n objs.
• PM builds collaborative relationships,
among a diverse set of characters.
Introduction (cont’d)

• PM has spread to all avenues of work.

Project teams are creating fuel efficient
vehicles, developing sustainable sources
of energy, exploring outer space etc.
• The impact of PM is most profound in
electronics industry where young
professionals are developing new
software & hardwares.
Introduction (cont’d)
• Project Management (PM) is also important
to govt. and non-profit organizations.
• Demand for PM is increasing as shown in:
1) the rapid expansion of Project Mgt. Institute
(PMI )
2) info./ news about projects are everywhere.
3) most universities now offer PM since
knowledge in PM is a distinct advantage when
looking for jobs
Introduction (cont’d)
• At its core, PM fundamentals is universal. The same methodology that
is used to develop a new product can be adopted to develop a new
service, organize an event etc.
What Is a Project?
• Project Defined
• A complex, non routine, one-time effort limited by time, budget,
resources, and performance specifications designed to meet
customer needs.
• A project is a temporary endeavor undertaken to create a unique
product, service, or result (PMI)
What Is a Project?
• Major Characteristics of a Project
• Has an established objective.
• Has a defined life span with a beginning and an end.
• Typically requires across-the-organizational participation.
• Involves doing something that has never been done before
(unique).
• Has specific time, cost, and performance requirements.
Programs versus Projects
• Program Defined
• A series of coordinated, related, multiple projects that continue over an
extended time and are intended to achieve a goal.
• A higher-level group of projects targeted at a common goal.
• Example:
• Project: completion of a required course in project management.
• Program: completion of all courses required for a business major.
Comparison of Routine Work with Projects
Routine, Repetitive Work
Taking class notes
Daily entering sales receipts into the
accounting ledger
Responding to a supply-chain request
Practicing scales on the piano
Routine manufacture of an Apple iPod
Attaching tags on a manufactured
product
Projects
Writing a term paper
Setting up a sales kiosk for a
professional accounting meeting
Developing a supply-chain information
system
Writing a new piano piece
Designing an iPod that is approximately 2
X 4 inches, interfaces with PC, and
stores 10,000 songs
Wire-tag projects for GE and
Wal-Mart
TABLE 1.1
Project Life Cycle

FIGURE 1.2
Project Life Cycle (PLC)
• PLC recognizes that projects have limited life span and there are
predictable changes in the level of effort & focus over the life of a
project.
• PLC is often used by project groups to depict the timing of major tasks
over the project life.
The Challenge of Project Management
• The Project Manager
• Manages temporary, non-repetitive activities and frequently
acts independently of the formal organization.
• Marshals resources for the project
• Provides direction, coordination, and integration to the
project team
• Manages a diverse set of project stakeholders
• Dependent upon others for technical answers
• Is responsible for performance and success of the
project
• Must induce the right people at the right time to address the
right issues and make the right decisions.
The Importance of Project Management
• Factors Leading to the Increased Use of
Project Management:
• Compression of the product life cycle
• Knowledge explosion
• Triple bottom line (Planet, People, Profit)
• Corporate downsizing
• Increased customer focus
• Small projects that represent big problems
The Importance of Project Management (Cont’d.)

• Compression of the product life cycle- In hi-tech. companies PLC is

averaging 1-3 years where before it was 10-15 years.
- Time to market new products with short life cycle has become
important. In hi-tech product development, a 6 month. delay in
project can result to a 33% loss in product revenue share.
The Importance of Project Management (Cont’d.)

Knowledge explosion – growth in new knowledge has increased

complexity of projects because. projects encompass the latest
advances.
-Product complexity has increased the need to integrate divergent
technologies and PM has emerged as the important. discipline for
achieving this task.
- Triple bottomline (Planet, People, Profit); bus. can’t simply focus on
profit at the expense of the environment & society.
The Importance of Project Management (Cont’d.)

• Corporate downsizing – has become a common strategy for many

firms in order to survive. Organizations. are becoming flatter &
leaner. Companies outsource significant portions of project work &
project managers. have to deal both w/ their own people and
those of their counterparts.
• Increased customer focus- increased competition has placed a
great importance on customer satisfaction. Customers want
“customized” products to meet heir specific needs. PM is critical to
the development of customized products & services & to
sustaining lucrative relationships with customers.
The Importance of Project Management (Cont’d.)

• Small projects that represent big problems – speed of change has

created a “multi- project environment”. There are many problems
involved with inefficient management of small projects.
Integrated Project Management Systems

• Problems Resulting from the Use of Piecemeal Project Management

Systems:
• Do not tie together the overall strategies of the firm.
• Fail to prioritize selection of projects by their importance of their
contribution to the firm.
• Are not integrated throughout the project life cycle.
• Do not match project planning and controls with organizational
culture to make appropriate adjustments in support of project
endeavors.
Integrated Mgt. of Projects
• Competing in a global market influenced by fast change in
tech./innovation, time to market means organizations. manage more
& more projects.
• Centralization of project mgt. processes & practices has been the
practical of all projects. Processes & practices to improve project.
management in the whole organizations in the long run.
Integrated
Management
of Projects

FIGURE 1.3
The Technical
and
Sociocultural
Dimensions
of the Project
Management
Process

FIGURE 1.4
An Overview of Project Management
3. Firm should not have been studied by agrib.
Thank you!
students (or have not accepted OJT agrib.
students ) in the past 5 years, unless:
 firm has new product(s)/projects
 new technology/ies
new management
new branches

4. Firm must have been in operation for at least 2

years