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Chapter 1
Modern Project
Management
McGraw-Hill/Irwin © 2008 The McGraw-Hill Companies, All Rights Reserved
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What Is a Project?
Project Defined
A complex, nonroutine, one-time effort limited by time,
budget, resources, and performance specifications
designed to meet customer needs.
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 never been done before.
Has specific time, cost, and performance
requirements.
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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:
o Project: completion of a required course in project
management.
o Program: completion of all courses required for a
business major.
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Comparison of Routine Work with Projects
Routine, Repetitive Work Projects
Taking class notes Writing a term paper
Daily entering sales receipts into Setting up a sales kiosk for a
the accounting ledger professional accounting meeting
Responding to a supply-chain Developing a supply-chain
request information system
Practicing scales on the piano Writing a new piano piece
Routine manufacture of an Apple Designing an iPod that is
iPod approximately 2 X 4 inches,
interfaces with PC, and stores
10,000 songs
Attaching tags on a manufactured Wire-tag projects for GE and
product Wal-Mart
TABLE 1.1
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Project Life Cycle
FIGURE 1.2
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The Challenge of Project Management
The Project Manager
Manages temporary, non-repetitive activities and
frequently acts independently of the formal organization.
o Marshals resources for the project
o Provides direction, coordination, and integration to the
project team
o Manages a diverse set of project stakeholders
o Dependent upon others for technical answers
o 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.
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The Importance of Project Management
Factors Leading to the Increased
Use of Project Management:
Compression of the product life
cycle
Global competition
Knowledge explosion
Corporate downsizing
Increased customer focus
Small projects that represent
big problems
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Growth in PMP Certification
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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.
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Integrated
Management
of Projects
FIGURE 1.3
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The
Technical
and
Sociocultural
Dimensions
of the Project
Management
Process
FIGURE 1.4
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An Overview of Project Management 4e.
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Key Terms
Program
ISO 9000
Project
Project life cycle
Project management professional (PMP)
Sociotechnical perspective
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