Final Textbook.docx - 1 | Page ISTM 630 PROJECT MANAGEMENT TEXTBOOK 2 | Page SPRING 2018 This page is intentionally blank 3 | Page Table of Contents

Final Textbook.docx - 1 | Page ISTM 630 PROJECT MANAGEMENT...

This preview shows page 1 out of 295 pages.

You've reached the end of your free preview.

Want to read all 295 pages?

Unformatted text preview: 1 | Page ISTM 630 PROJECT MANAGEMENT TEXTBOOK 2 | Page SPRING 2018 This page is intentionally blank. 3 | Page Table of Contents INTRODUCTION TO PROJECT MANAGEMENT CHAPTER 1 MANAGEMENT INFORMATION SYSTEMS CHAPTER 2 PROJECT INTEGRATION MANAGEMENT CHAPTER 3 PROJECT SCOPE MANAGEMENT CHAPTER 4 PROJECT TIME MANAGEMENT CHAPTER 5 PROJECT COST MANAGEMENT CHAPTER 6 PROJECT QUALITY CONTROL CHAPTER 7 HUMAN RESOURCE MANAGEMENT CHAPTER 8 COMMUNICATIONS MANAGEMENT CHAPTER 9 RISK MANAGEMENT CHAPTER 10 PROCUREMENT CHAPTER 11 STAKEHOLDER MANAGEMENT CHAPTER 12 ETHICS IN PROJECT MANAGEMENT CONCLUSION REFERENCES 4 | Page Introduction to Project Management Introduction to Project Management 5 | Page The word project, as is stated in the Oxford Dictionary, comes from the Latin word projectum and from the Latin verb proicere which means "to throw something forward". This in turn comes from pro, that denotes something which precedes the action of the next part of the word in time (paralleling the Greek πρό) and iacere, "to throw". The word "project" thus originally meant "something that comes before anything else happens". Leapfrogging through time, it became something which is undertaken to achieve a certain something in a finite time. When the English language initially adopted the word, it referred to a plan of something, not to the act of carrying this plan. Something performed in accordance with a project became known as an "object". A modern project is defined as team function that involves meeting specific goals and objectives and has specific start and end dates. A project is a temporary endeavor that requires certain amount of background research, modus operandi and a design that symbolize how the project would evolve. Attributes of a Project • Unique - Every project has certain attribute or objective that differentiates it from another project. • Time based - A project has a definitive time frame; it has a beginning and an end time. Moreover, there are certain time deadlines that need to be taken care of to maintain the constraints of the project. (Constraints would be discussed later) • Requires multi-dimensional resources across organization - A project may be a modular operation within an organization with predefined time limits. So, a project would require resources in terms of people, technologies, software from different parts of the organization. • Sponsor and Customer - A project must have a sponsor from the upper echelons of management to ensure uninterrupted funding and support from the organization. New Delhi, India hosted 2010 Commonwealth Games (formerly British Empire Games) with an estimated initial cost of US$323.19 million which later, escalated to US$11.97 billion. This shows lack of planning and vision on part of the management undertaking such a huge project of organizing the games. This incident further explains the importance of better project management and the triple constraints that involve a project namely cost, scope and time management. In the above case, scope was an almost immovable constraint and time most definitely was. So, the cost constraint was the one to be compromised. But an almost 300% increase in overall cost is a prime example of project management mishap. (Guardian, London UK, September 22, 2010) A Broad Perspective Even though a project has a planned duration, the execution time of each project varies. It is said that the construction of the Great Wall of China began in the 7th century BC and the project was 6 | Page completed by the 16th century AD; roughly 2,300 years (one of the longer projects as we may say). Every project requires planning in advance, milestone identification, schedule and cost adherence to make it successful. Project Management Institute (PMI) defines project management as the application of knowledge, skills, tools, and techniques to project activities to meet the project requirements. Let us go through these constraints one by one: • Scope - This constraint deals with the basic work and the highest achievable outcome that is possible from this work. Scope mainly includes the features and quality that the project must deliver. The Great wall of China would not have had this constraint as a major blockage as the major project sponsor, the Qin dynasty and dynasties subsequent, took a great deal of interest in the project throughout the two thousand years. If there was anything like a scope constraint in the building of the wall, we must take a moment and think what must be the highest possible result that they wanted out of this project. • Cost - Any project involves money to carry it forward and how much, where, and how to spend it are some relevant questions that any project manager must answer and plan for. Dealing with the cost constraint is one of the most important activities in any project since many projects have been shelved in the past and shall be in the future as no matter how good or useful the projects are, they simply could not fit into the costing model that the company developed. The major chunk of the cost spent is on the human resource, training, labor and procurement of raw materials. Though it can be said that the Great Wall project managers never had to worry about these aspects as well. • Time - This was one constraint in front of which the project managers of the Great Wall of China had to bow down to. Something very specific about this constraint is that time once lost is lost forever. This constraint determines how long the project would take to end and the outcome of the project whatever it may be if it would still be relevant after the outcome of the project. The builders of The Wall of China believed so much in their endeavor that they never took in account the time constraint. By now we have understood the definition of a project and why is it necessary to manage projects effectively, the attributes of a project, and the constraints that are involved. Project management is a complex task because it involves a lot of people who work during the different phases of the project. The project team, the support staff, higher management, and customers contribute heavily towards the successful completion of the project. All the people involved in the project are called Project Stakeholders. As is evident, project stakeholders have very different needs and aspirations and it is the job of the project manager to fulfill those needs or at least cater to their interests partially. To be a successful project manager one needs to be result oriented and build a good rapport with all the stakeholders. Along with the hard-technical skills, the soft skills that involve good communication and exemplary leadership qualities are required to be a good manager and handle all stakeholders including you. 7 | Page A story about Project Management Waldorf Astoria Probably considered by some as one of the most famous hotels in the world, the Waldorf Astoria has its roots steeped in catering to the social elite of New York city. The history of the Waldorf Astoria is interesting in that its first incarnation on 5th avenue and 33rd street was a two-tower structure, with the first 13-story building built by William Waldorf Astor in 1893 and later connected via a tunnel to a 17-story tower constructed by his cousin John Jacob Astor IV in 1897. As the largest hotel in the world at the time, the Waldorf Astoria would be the first to transform the meaning of a hotel into a place to be seen by the social elite of the time. Eventually, this first structure was demolished in 1929 to make place for the Empire State building and a second incarnation of the Waldorf Astoria was erected 15 blocks away in 1931, continuing its legacy as the tallest hotel in the world and maintaining its reputation in hospitality innovation. Throughout its history, the Waldorf Astoria looked towards the customer’s needs first and incorporated the most advanced technology and innovative services that built its reputation as we know it today. Referred to as the true visionaries, the drivers behind the project spared no expense to build the most opulent hotel of its time. Considering it was the height of the Great Depression, to ensure its success the project leaders behind the Waldorf Astoria were astutely calculating in envisioning a top-notch product aimed at its target market. From an execution point of view, the construction project was a great success. Despite the poor economic climate, the hotel still managed to maintain its prestige and popularity. For project managers and business visionaries alike, the Waldorf Astoria’s success can be attributed to the people behind its success along with their deep understanding of the customers and market they serve. By the late 1940s, the hotel was purchased by Conrad Hilton and the Waldorf Astoria brand continued to be associated with the rich and powerful. Some notable guests included President Herbert Hoover, numerous U.S. Army Generals, the notorious mobster Bugsy Siegel, and the famous musician Cole Porter. In more recent years, Hilton hotels (2006) decided to leverage the brand and build various exclusive Waldorf Astoria’s in Beverly Hills, Orlando and Chicago. For over 110 years, the Waldorf Astoria has been successful in maintaining its reputation of offering the best product in the hospitality industry aimed at its exclusive market. This alone is a testament that the recipient and benefactors of a project can have a long-lasting impact on a project’s success. (PM BoxFamous Stories) History of Project Management and Why It Is Important History of Project Management 8 | Page Although project management theory and practice seem to be established only a few decades ago, the applications of the basic project management principles can be found dating back to ancient times. Projects such as building the Great Wall of China and the Egyptian pyramids, where people and raw materials were assembled and scheduled temporarily to perform specific tasks and achieve common goals (Young-Hoon Kwak 2005). These are small examples related to use of project management practices in the past. As commerce boomed and became more complex in the 19 th Century, businesspeople began to realize the advantages and benefits of organizing work and resources for the project. Project management concepts became increasingly important for large-scale projects which usually involved making crucial decisions and organizing unprecedented quantities of resources. For example, the Transcontinental Railroad project was the first large government project requiring project management practices (Young-Hoon Kwak 2005). In the 1950s, organizations began to systematically implement project management techniques and tools for projects (Young-Hoon Kwak 2005). However, one key difference between the ancient marvels of project management and modern day projects is the ancient marvels did not routinely involve schedule optimization. In the early twentieth century, people thought the only way to make work more productive was through working harder and for longer hours. However, after systematic study and research, Frederick Taylor, the father of scientific management, found a scientific way to improve productivity, which was through working efficiently (A Quick History of Project Management). His associate, Henry Gantt, continued the study further on the order of work operations to see how these operations can improve productivity. Henry then established the famous Gantt Chart, an analytical management tool that can list the task sequence and duration, which made him as the father of project management tools (Project Management: History and Evolution). In the mid twentieth century, military and government projects became even more complex to deal with, and previous tools-techniques were not able to satisfy the project requirements. To deal with this situation, PERT Chart (Program Evaluation and Review Technique) was established and Critical Path Method, a mathematical technique, was applied so that managers had more control over the projects in fast-changing organizational structures (Project Management: History and Evolution). With time, a sizeable amount of business leaders started to realize the importance of applying project management techniques to improve productivity and bring more benefits. Soon, these management techniques were adopted by business leaders in all kinds of industries. In 1969, the Project Management Institute (PMI) was founded to modernize and standardize project management techniques and tools. Nowadays, with globalization, projects tend to be bigger, more challenging and difficult to manage. For instance, an IT project may need to be accomplished by team members located in different regions, time zones and with people belonging from different culture backgrounds. Project management continues to evolve to accommodate this trend. Currently, two popular methods adopted by many project managers are bottom-up planning and top-down planning and reviewing (A Quick History of Project Management). Bottom-Up Planning is a method of planning, defining objectives and ways to achieve them through the bottom up approach. First, 9 | Page relatively close targets at lower levels of the organizational hierarchy are set. They are then gradually integrated into the framework of global goals and global strategy at progressive higher levels, thus establishing it as a convergent approach. Whereas, Top-Down Planning is a method of planning, defining objectives and ways to achieve them through the top down approach. Here, firstly the global (framework) goals are set, and ways are identified on how to achieve them. They are gradually moved to further lower levels of the organizational hierarchy to be developed and specified, thus making it a divergent approach. Why Project Management Is Important Project management is crucial for projects because it provides strategies and guiding system to keep the project on track and to meet the stakeholders’ requirements. It can minimize the risks of project failure and ensure the project execution to meet the corporate strategies. Without proper and strategic management, projects are vulnerable to many potential threats. According to the CHAOS® report, in 2009, only 32% of software projects succeed, while others were either challenged or failed (Jorge Dominguez, 2009). Many factors may challenge the project to be completed successfully, such as lack of user involvement, scope creep, or lack of top management support. To best handle these factors and reduce the negative impact generated from them, project management knowledge and skills should be applied for projects. Project management provides comprehensive management principles including time, cost, scope, quality, human resource, procurement, communication, risk and integration management. These nine management areas cover all concerned aspects for a project. Therefore, understanding these principles and proper implementation of them can make the project process more controllable and ensure the project execution correctly. Moreover, project management principles can be learned through experience, not only through your own experience, but the experience from project management community. Definition of a Project and Project Management What is a Project? The PMI (Project Management Institute) defines a project as a temporary endeavor which has been undertaken by a group of individuals to create a unique product, service, or result. The term ‘temporary’ is used here as the project is required to have an end date. This helps in defining the required scope and assigning available resources to appropriate tasks in the allocated timelines. A project consumes resources in the form of manpower, raw materials, and time. Apart from that, it has funding limits as well. These factors together decide the degree of success which can be achieved through the project. The end of such an effort is associated with the event or situation 10 | Page where all set objectives which were set during the beginning of project, have been met. A project can range from being small and simple to being large and complex. Generally, the larger the project is, the more time and resources are associated with it. One should not confuse a project with an operation. An operation is just the basic work done to sustain businesses. One can say that successful completion of an operation can contribute towards the success of project. In Non-IT sense, this can be as basic as supplying raw material to the manufactures or maintenance of payroll aspects in an organization. All projects must be expertly managed for timely delivery by an efficient leader called the Project manager. With his or her help, the organization should be able to integrate their needs in a coherent manner. This way the result delivery will be well within the budget restrictions and the project members will be presented with valuable learning opportunities. Example of a project: A small project can be installing anti-virus software on all the computer laboratories of a specific department in a university. This can involve taking backups, scanning systems, loading new software and providing training to the personnel involved. On the other hand, a larger project will deal in cross-functional aspects like selection of an ERP tool or vendor followed by its company wide application. The reason it is a complex task is that it involves participation from different departments in the same organization like HR, Sales, Production, Accounting and so on. Project Management Project management is the application of knowledge, skills, tools and techniques to project activities to meet project objects in an effective and efficient manner (PMBOK® Guide). It has always been practiced informally for a long time, but it began to emerge as a unique and critical profession in the mid-20th century. Organizations worldwide use this as a strategic competency to correlate project results to business goals and objectives. A better selection of project management techniques help them compete in their markets in a better way. Project and Program Managers: Project Manager is an efficient leader who expertly manages all project activities for timely delivery. They work with the project sponsors, project teams, stakeholders and all the other people involved to ensure that the project meets its objectives/goals. Project managers must coordinate all of the other knowledge areas throughout a project’s life cycle. With the help of the project manager, the organization should be able to integrate their needs in a coherent manner. This way the result delivery will be well within the budget restrictions and the project members will be presented with valuable learning opportunities. On the other hand, Program managers are the ones who oversee these activities. They act as the bosses for project managers. 11 | Page The associated activities can be anything ranging from organizing the tasks and components for development of a new product line, launch of a new website or an e-campaign. Project management processes can be categorized into following five groups: ● Initiating/Definition: It includes recognizing and starting a new phase in a project. It involves defining the scope of the project/phase and user expectations. Apart from a list of project deliverables and the results of activities performed, it involves working with the business sponsor and other stakeholders. Stakeholders are the people who have invested in the project and are affected by the outcome of project. The reason for a team entering project initiation phase is if marks the beginning of a new project/business need or when you have to reevaluate the business requirements. REASONS FOR ENTERING PROJECT INITIATION: KEY OUTPUTS: • Assigning the project manager. 12 | Page • Identifying key stakeholders. • Completing a business case. • Completing a project charter...
View Full Document

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture