2e
Chapter 3
Project
Management
Information Technology for Managers
George W. Reynolds
Strayer University
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Learning Objectives
∙ What is project management, and what are the key
elements of an effective project management
process?
∙ How can an effective project management process
improve the likelihood of project success?
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Why Managers Must Understand
Project Management
Guide to Cengage
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Core Competency
∙ Task that a firm can do well which provides
customer benefits
∙ Hard for competitors to imitate
∙ Leveraged widely to many products and markets
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Project Management
∙ Recognized by many organizations as one of the
core competencies
∙ Viewed by organizations as the ability to manage
projects to:
− Achieve an edge over competitors
− Deliver greater value to shareholders and customers
∙ Involves spending considerable effort in:
− Identifying potential project managers
− Training and developing the personnel
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What is a Project?
Guide to Cengage
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Project
Temporary endeavor undertaken to create a unique
product, service, or result (Upaya sementara
dilakukan untuk menciptakan produk, layanan, atau
hasil yang unik)
− Attempts to achieve specific business objectives
− Subject to certain constraints, such as total cost and
completion date
∙ Is not repetitive
∙ Varies in size and levels of complexity
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Project Variables
∙ Highly interrelated parameters defining a project
− Project scope
∙ Definition of tasks to be included and excluded in a
project
∙ Key determinant of the other project factors
− Cost
∙ Capital, expenses, and internal crosscharges
associated with the project’s buildings, operation,
maintenance, and support
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Project Variables
− Time
∙ Projects needs to be completed by a certain date to
meet business goals or a government mandate
− Quality
∙ Degree to which the project meets the needs of the
users
∙ ITrelated system project quality is defined in terms of
the system’s functionality, features, system outputs,
performance, reliability, and maintainability
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Table 3.1 Typical ITRelated Project
Costs
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Project Variables
− User expectations
∙ Stakeholders’ expectations about how the project will
be conducted and how it will affect them
∙ End users expect to participate in weekly project
status meetings
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Figure 3.1 Five Parameters that
Define a Project
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Figure 3.2 Revised Project Definition
Information Technology for Managers
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Project Management
Guide to Cengage
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Project Management
∙ Application of knowledge, skills, and techniques to
project activities to meet project requirements
∙ Handled by managers by managing the
expectations of the stakeholders
∙ Considered an art and a science
∙ Project stakeholders
− People involved in the project or those affected by
its outcome
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Project Management Knowledge
Areas
Guide to Cengage
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Figure 3.3 Nine Project Management
Knowledge Areas
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Scope Management
∙ Defining the work that must be done as part of the
project
∙ Controlling the work to stay within the scope to
which the team has agreed
∙ Key activities
− Initiation, scope planning, scope definition, scope
verification, and scope change control
∙ Functional decomposition: Defines the scope of
an information system by identifying the business
processes it will affect
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Scope Management
∙ Process: Set of logically related tasks performed
to achieve a defined outcome
∙ Formal scope change process should be defined
before the project begins in order to avoid
problems
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Figure 3.4 Functional Decomposition
Defining the Scope of a System
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Time Management
∙ Involves:
− Defining an achievable completion date
− Developing a workable project schedule
− Ensuring the timely completion of the project
∙ Efficiency requires:
− Identifying and sequencing the tasks
− Focusing on firm deadlines or task dependencies
− Estimating the amount of resources required
− Estimating the elapsed time to complete each task
− Analyzing all the data to create a project schedule
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Time Management
− Controlling and managing changes to the project
schedule
∙ Project schedule: Identifies project activities to be
completed, expected start and end dates, and
resources allocated to each task
∙ Project milestone: Critical date for completing a
major part of the project
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Time Management
∙ Project deadline: Date of completing and
operationalizing a project
∙ Slack time: Amount of time an activity can be
delayed without delaying the entire project
∙ Critical path: Consists of all activities that, if
delayed, would delay the entire project
∙ Project Evaluation and Review Technique
(PERT)
− Creates three time estimates for an activity
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Time Management
∙ Gnatt chart: Graphical tool used for planning,
monitoring, and coordinating projects
∙ Work breakdown structure (WBS)
− Outline of the work to be done to complete the
project
− Allows one to look at the project in detail to
recognize all the work that needs to be performed
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Figure 3.5 Gnatt Chart Depicting the
Start and Finish of Project Tasks
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Cost Management
∙ Developing and managing the project budget
∙ Involves resource planning, cost estimating, cost
budgeting, and cost control
∙ Separate budget needs to be established for each
type of cost
− Capital, expense, and internal crosscharge
∙ Use WBS to estimate all costs
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Figure 3.6 Development of a WBS Leads
to Creation of a Schedule and Budget
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Quality Management
∙ Ensures that the project will meet the needs for
which it was undertaken
∙ Quality planning: Determining relevant quality
standards for the project and ways to meet them
∙ Quality assurance: Evaluating the progress of the
project to ensure that identified quality standards
are met
∙ Quality control: Checking project results to
ensure that they meet identified quality standards
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Human Resource Management
∙ Making optimum use of the people involved with
the project
∙ Includes organizational planning, staff acquisition,
and team development
∙ Requires a project manager to:
− Build a project team staffed with people with the
right mix of skills and experience
− Train, develop, coach, and motivate the team to
perform effectively on the project
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Human Resource Management
∙ Formingstormingnormingperforming model
− Describes how teams develop and evolve
− Forming stage Team learns about the project,
agrees on basic goals, and begins to work on tasks
− Storming stage Team recognizes differences of
opinion among the members and allows the ideas to
compete for consideration
− Norming and performing stage Team is competent,
motivated, and knowledgeable about all aspects of
the project
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Figure 3.7 Tuckman’s Forming
StormingNormingPerforming Model
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Human Resource Management
∙ Project steering team: Consists of senior
managers representing the business and IT
organizations
− Provide guidance and support to the project
− Key members of the team include:
∙ Project champion
∙ Project sponsor
∙ IT manager
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Communications Management
∙ Generation, collection, dissemination, and storage
of project information in a timely and effective
manner
∙ Includes communications planning, information
distribution, performance reporting, and managing
communications
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Communications Management
∙ Key stakeholders
− Project steering team
− The team itself
− End users
− Others who may be affected by the project
∙ Stakeholder analysis matrix
− Identifies the interest of the stakeholders, their
information needs, and important facts
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Figure 3.8 Project Steering Team
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Risk Management
∙ Identifying, analyzing, and managing project risks
∙ Project risk: Uncertain event that, if it occurs, has
a positive or a negative effect on a project objective
∙ Known risks Identified and analyzed risks
∙ Unknown risks cannot be managed directly
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Risk Management
∙ People who can participate in identifying the risks
− Experienced project managers
− Members of the organization’s risk management
department
∙ Classify the risk by:
− Probability that it will occur
− Impact on the project if the risk does occur
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Risk Management
∙ Requires considering which risks need to be
addressed with risk management plan
∙ Allows ignoring risks with a low probability of
occurrence and low potential impact
∙ Risk owner: Responsible for developing a risk
management strategy and monitoring the project
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Table 3.8 Risk Management Plan
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Figure 3.9 Well linking Projects to
Organizational Goal and Strategy
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Procurement Management
∙ Acquiring goods and/or services for the project
from sources outside the performing organization
∙ Divided into the following processes
− Plan purchase and acquisition
− Plan contracting
− Request seller responses
− Select seller
− Contract administration
− Contract closure
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Procurement Management
∙ Makeorbuy decision: Comparing the pros and
cons of inhouse production versus outsourcing of
a given product or service
∙ Contract Legal agreement that defines the terms
and conditions of the buyerprovider relationship
− Types
∙ Fixedprice
∙ Costreimbursable
∙ Time and material
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Project Integration Management
∙ Requires the assimilation of all eight other project
management knowledge areas
∙ Requires the coordination of all appropriate people,
resources, plans, and efforts to complete a project
successfully
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Project Integration Management
∙ Comprises of the following project management
processes
− Developing the project charter
− Developing a preliminary project scope statement
− Developing the project management plan
− Directing and managing project execution
− Monitoring and controlling the project work
− Performing integrated change control
− Closing the project successfully
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Summary
∙ Five parameters define a project
− Scope, cost, time, quality, and user expectations
∙ Project management
− Application of knowledge, skills, and techniques to
project activities to meet project requirements
∙ Project managers must coordinate nine areas of
expertise
∙ Formingstormingnormingperforming model
describes how teams form and evolve
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Summary
∙ Each project should have a project steering team
∙ Risk management is a process that attempts to
identify, analyze, and manage project risks
∙ Procurement management involves acquiring
goods and/or services for the project from sources
outside the performing organization
∙ Project integration management needs the
assimilation of all the project management
knowledge areas
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