Project Management fundamentals Introduction. BBA / MBA course - Chapter 1 PPT available upon request: frgaucher@yahoo.fr. Comments are welcome to improve the content! Francois Gaucher, DBA, MBA

1. McGraw-Hill/Irwin © 2008 The McGraw-Hill Companies, All Rights Reserved
Chapter 1 – Introduction
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Project Management

2. 1-2
An Overview of Project Management
Project Management - Chapter 1 - Introduction Page 2

3. 1-3
Tribute – Textbook and Pictures banks
Project Management - Chapter 1 - Introduction Page 3
 Image banks
❑ gettyimage.com
❑ pixabay.com
❑ plixs.com
❑ rawpixel.com

4. 1-4
Introduction: What Is a Project?
 Project management statistics
❑ Failure rate
▪ A study by PricewaterhouseCoopers, which reviewed 10,640 projects from 200
companies in 30 countries and across various industries, found that only 2.5% of
the companies successfully completed 100% of their projects.
▪ 39% of projects fail for lack of planning and proper resource allocation.
▪ 57% of projects fail due to “breakdown in communications.”
▪ The failure rate of projects with budgets over $1M is 50% higher than the failure
rate of projects with budgets below $350,000.
❑ Importance of PM: 77% of high performing companies understand the value of project
management. 40% of low-performing companies.
Project Management - Chapter 1 - Introduction Page 4

5. 1-5
Introduction: What Is a Project?
 Project management statistics
❑ Budget overrun:
▪ A study published in the Harvard Business Review, which analyzed 1,471 IT
projects, found that the average overrun was 27%, but one in six projects had a
cost overrun of 200% on average and a schedule overrun of almost 70%.
❑ PM skills gap
▪ 56% project managers have a formal certification or degree in project
management.
▪ 90% of global senior executives and project management experts say good project
management is key to delivering successful results and gaining a competitive edge
Project Management - Chapter 1 - Introduction Page 5

6. 1-6
Introduction: What Is a Project?
 Project management statistics
Source Pmi.org
Project Management - Chapter 1 - Introduction Page 6

7. 1-7
Introduction: What Is a Project?
 Project management statistics
Source Pmi.org
Project Management - Chapter 1 - Introduction Page 7

8. 1-8
PROJECT DEFINED
Project Management – Chapter I. Introduction

9. 1-9
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.
❑ “Customer” may be external or internal to the
organization
Project Management - Chapter 1 - Introduction Page 9

10. 1-10
What Is a Project?
 Project Defined
❑ Project management is the planning, scheduling, and controlling
of project activities to meet project objectives.
❑ The major objectives that must be met include:
▪ Performance: The quality of the work being done.
▪ Cost: The cost of project work, directly related to the human and physical
resources applied.
▪ Time goals: The schedule that must be met.
▪ Respect project Scope: The magnitude of the work to be performed
Project Management - Chapter 1 - Introduction Page 10

11. 1-11
What Is a Project?
 Project Defined
❑ Plan, organize, control, and lead are the four basic
functions of project management.
▪ Planning is deciding in advance what the project will achieve,
determining the steps to execute, and identifying when to start
and stop.
▪ Organizing is orchestrating resources cost-effectively to execute
the project plan.
▪ Controlling is assessing how well the project manager uses the
plans and organization to meet project goals and objectives.
▪ Leading is influencing people to achieve the goals and objectives
of the project.
Project Management - Chapter 1 - Introduction Page 11

12. 1-12
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 never been done before.
❑ Has specific time, cost, and performance requirements.
Project Management - Chapter 1 - Introduction Page 12

13. 1-13
Programs versus Projects
 Program Defined
❑ A series of coordinated, related, multiple projects targeted at a common
goal.
❑ Project Directors vs Project Managers
❑ A Project Director generally oversees a team of project managers and
project teams.
Project Management - Chapter 1 - Introduction Page 13

14. 1-14
Importance of PM
❑ Projects are the means by which we introduce change in the
organization.
❑ As the pace of change (technology, business, social, regulatory etc.)
accelerates, and the penalties of failing to adapt to change become more
evident, the focus of management attention is inevitably moving to achieve a
balance between business as usual and business change.
Project Management - Chapter 1 - Introduction Page 14

15. 1-15
Comparison of Routine Work with Projects
Project Management - Chapter 1 - Introduction Page 15
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
Organizing 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

16. 1-16
Project Life Cycle
Project Management - Chapter 1 - Introduction Page 16

17. 1-17
The Project Manager
 The Project Manager
❑ 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
Project Management - Chapter 1 - Introduction Page 17

18. 1-18
The Importance of Project Management
 Factors Leading to the Increased Use of Project
Management:
▪ Compression of the product life cycle
▪ Global competition
▪ Permanent changes
▪ Disruptive technologies
▪ Knowledge dissemination
▪ Corporate downsizing/restructuring
▪ Increased customer focus strategies
▪ Small projects that represent big problems
Project Management - Chapter 1 - Introduction Page 18

19. 1-19
PM CERTIFICATION
Project Management – Chapter I. Introduction

20. 1-20
Trends in Project Management related Jobs
Project Management - Chapter 1 - Introduction Page 20
Source Pmi.org

21. 1-21
Top Project Management Certifications
❑ PMP: Project Management Professional
❑ CAPM: Certified Associate in Project Management
❑ CSM: Certified ScrumMaster
❑ CompTIA Project+ certification
❑ PRINCE2 Foundation/PRINCE2 Practitioner
❑ CPMP: Certified Project Management Practitioner
❑ Associate in Project Management
❑ MPM: Master Project Manager
❑ PPM: Professional in Project Management
❑ PMITS: Project Management in IT Security
❑ Certified Project Director
❑ CPM: Certified Project Manager (IAPM)
Project Management - Chapter 1 - Introduction Page 21

22. 1-22
Growth in PMP Certification
• Project Management Professional (PMP) is an internationally
recognized professional designation offered by the Project
Management Institute (PMI).
• The exam is based on the PMI Project Management Body of
Knowledge (PMBOK).
Project Management - Chapter 1 - Introduction Page 22

23. 1-23
PMI Credentials
• Certified Associate in Project Management (CAPM)
• Project Management Professional (PMP)
• Program Management Professional (PgMP)
• PMI Agile Certified Practitioner (PMI-ACP)
• PMI Risk Management Professional (PMI-RMP)
• PMI Scheduling Professional (PMI-SP)
• Portfolio Management Professional (PfMP)
• PMI Professional in Business Analysis (PMI-PBA)
Project Management - Chapter 1 - Introduction Page 23

24. 1-24
PMI Credentials
Project Management - Chapter 1 - Introduction Page 24
CAPM
This certification is considered an entry-
level option for project managers and the
first step for professionals looking to
receive their PMP.
It recognizes that professionals have the
fundamental skills and knowledge of an
effective project manager.
PMP
This credential demonstrates an in-depth
knowledge of all aspects of project
management, including time, budget and
scope, as well as strategic planning, risk
management, and communication.

25. 1-25
Growth in PMP Certification
As of March 2018, there are
833 025 active PMP certified
individuals across 210
countries worldwide.
Project Management - Chapter 1 - Introduction Page 25

26. 1-26
PMI Exam syllabus
PMP Exam syllabus
The PMP exam is based on the PMP Examination Specification which describes
tasks out of five performance domains:
▪ Initiating the project (13%)
▪ Planning the project (24%)
▪ Executing the project (31%)
▪ Monitoring and controlling the project (25%)
▪ Closing the project (7%)
Project Management - Chapter 1 - Introduction Page 26

27. 1-27
Growth in PMP Certification
PMP Exam syllabus
The certification exam has 200 multiple-choice questions, and you have four hours to
complete it.
To maintain your PMP, you must earn 60 professional development units (PDUs) every
three years.
Price: Member: US$405.00 - Non-member: US$555.00
Project Management - Chapter 1 - Introduction Page 27

28. 1-28
PMP Certification - PMBOK
Project Management - Chapter 1 - Introduction Page 28
Download PMBOK
www.pmi.org

29. 1-29
PMI Credentials
Project Management - Chapter 1 - Introduction Page 29

30. 1-30
Project Management - Chapter 1 - Introduction Page 30
▪ Advanced level Project Management
certification
▪ Based on PMBOK
▪ Generic project management
knowledge, applicable for multiple
industries
▪ Originated in US. Widely accepted in
US, Canada, Middle East and Asia
▪ Has only one level
▪ Project Manager responsible for the
result of a project
▪ Answer the « How » part of project
management
▪ Is a methodology, with a detailed
process model and templates
▪ Three levels of certification:
Foundation, Practitioner,
Professional
▪ More IT focus
▪ Originated in IK. Wideley accepted in
UK, Europe, Australia
▪ Project Manager is a middleman
between the project and its control
board
▪ Answer the « What » part of project
management
PMP PRINCE 2
PMP vs PRINCE2

31. 1-31
PMP vs PRINCE2
Project Management - Chapter 1 - Introduction Page 31
Source: www.whizlabs.com

32. 1-32
PMP – Prince2 – ISO Differences
 PMI (not-for-profit association)
❑ PMI's Project Management Professional (PMP) credential is the most important
industry-recognized certification for project managers
❑ Develops standards (PMBOK) and credentials (PMP, CAPM, etc.)
❑ Is a standard and not a methodology. Answer the question “WHAT”
 PRINCE2 (PRojects IN Controlled Environments)
❑ PRINCE2 is in the public domain.
❑ Used extensively by the UK Government and is widely recognised and used in the
private sector, both in the UK and internationally.
❑ PRINCE 2 is a process-based methodology. Answers the question “HOW”
Project Management - Chapter 1 - Introduction Page 32

33. 1-33
INTEGRATED PROJECT MANAGEMENT
SYSTEMS
Project Management – Chapter I. Introduction

34. 1-34
Integrated Project Management Systems
 Problems Resulting from the Use of Piecemeal Project
Management approach:
❑ 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.
Project Management - Chapter 1 - Introduction Page 34

35. 1-35
The Technical and Sociocultural Dimensions
of the Project Management Process
Project Management - Chapter 1 - Introduction Page 35

36. 1-36
An Overview of Project Management
Project Management - Chapter 1 - Introduction Page 36

37. 1-37
Web Links
❑ PMI
▪ www.pmi.org
❑ Prince2
▪ http://www.ogc.gov.uk/methods_prince_2.asp
▪ http://www.prince2.com
❑ Project Management resources
▪ http://www.gantthead.com/default.cfm
▪ www.whizlabs.com
▪ https://thedigitalprojectmanager.com/resources/
▪ www.wrike.com/blog/awesome-online-resources-for-project-managers/
▪ https://blog.azendoo.com/best-free-project-management-resources/
❑ Videos on Project Management
▪ http://www.pmiwdc.org/eview-online-video-archives-0#mozTocId7437
▪ https://www.projectmanager.com/training
▪ www.projectinsight.net/support/videos/
Project Management - Chapter 1 - Introduction Page 37