COURSE: “QUẢN TRỊ DỰ ÁN ĐẦU TƯ” Section 1: Introduction to Project Management Lecturer: MSc. Doan Anh Tuan VJCC Institute - Foreign Trade University TABLE OF CONTENTS 1 The definition of Project 2 Project Life Cycles 3 Determinants of Project Success 4 Project Management Maturity 5 Employability Skills 6 Group discussion 7 Key takeaways THE DEFINITION OF PROJECT 1 THE DEFINITION OF PROJECT - It is recognized that projects are distinct from other organizational processes. As a rule, a process refers to ongoing, day-to-day activities in which an organization engages while producing goods or services. Processes use existing systems, properties, and capabilities in a continuous, fairly repetitive manner.
Projects, on the other hand, take place outside the normal, process-oriented world of the firm. - A project is a unique venture with a beginning and end, conducted by people to meet established goals within parameters of cost, schedule, and quality. - Projects are goal-oriented, involve the coordinated undertaking of interrelated activities, are of finite duration, and are all, to a degree, unique. - In the PMBoK (Project Management Body of Knowledge) guide, a project is defined as “a temporary endeavor undertaken to create a unique product, service, or result”.
THE DEFINITION OF PROJECT * Projects are complex, one-time processes. - A project arises for a specific purpose or to meet a stated goal. It is complex because it typically requires the coordinated input of numerous members of the organization. Project members may be from different departments, other organizational units, or one functional area.
- Because a project is intended to fulfill a stated goal, it is temporary. It exists only until its goal has been met, and at that point it is dissolved. THE DEFINITION OF PROJECT * Projects are limited by budget, schedule, and resources - Project work requires that members work with limited financial and human resources for a specified time period. They do not run indefinitely.
- Once the assignment is completed, the project team disbands. Until that point, all its activities are constrained by limitations on budget and personnel availability. - Projects are “resource-constrained” activities. THE DEFINITION OF PROJECT * Projects are developed to resolve a clear goal or set of goals.
- There is no such thing as a project team with an ongoing, nonspecific purpose. project’s goals, or deliverables, define the nature of both the project and its team. THE DEFINITION OF PROJECT * Projects are customer-focused - Whether the project is responding to the needs of an internal organizational unit or intended to exploit a market opportunity external to the organization, the underlying purpose of any project is to satisfy customer needs. - In the past, this goal was sometimes overlooked.
Projects were considered successful if they attained technical, budgetary, and scheduling goals. More and more, however, companies have realized that the primary goal of a project is customer satisfaction. THE DEFINITION OF PROJECT GENERAL PROJECT CHARACTERISTICS 1. Projects are ad hoc endeavors with a clear life cycle 2.
Projects are building blocks in the design and execution of organizational strategies 3. Projects are responsible for the newest and most improved products, services, a organizational processes 4. Projects provide a philosophy and strategy for the management of change 5. Project management entails crossing functional and organizational boundaries 6.
The traditional management functions of planning, organizing, motivation, directing and control apply to project management 7. The principal outcomes of a project are the satisfaction of customer requirements with the constraints of technical, cost, and schedule objectives 8. Projects are terminated upon successful completion of performance objectives THE DEFINITION OF PROJECT Project Case study: Royal Mail (Moving with the Times) THE DEFINITION OF PROJECT THE IMPORTANCE OF PROJECTS 1. Shortened product life cycles 2.
Narrow product launch windows 3. Increasingly complex and technical products 4. An economic period marked by low inflation THE DEFINITION OF PROJECT Project Case study: London’s Crossrail (Europe’s Largest Construction Project) PROJECT LIFE CYCLES 2 PROJECT LIFE CYCLES - A project life cycle refers to the stages in a project’s development. PROJECT LIFE CYCLE STAGES - Life cycles are important because they demonstrate the logic that governs a project.
- They also help us develop our plans for carrying out the project. They help us decide, for example, when we should devote resources to the project, how we should evaluate its progress, and so forth. -> The simplified model divides the life cycle into four distinct phases: Conceptualization, Planning, Execution, and Termination. PROJECT LIFE CYCLES * Conceptualization - It refers to the development of the initial PROJECT LIFE CYCLE STAGES goal and technical specifications for a project.
- The scope of the work is determined, necessary resources (people, money, physical plant) identified, and important organizational contributors or stakeholders signed on. PROJECT LIFE CYCLES * Planning - It is the stage in which all detailed PROJECT LIFE CYCLE STAGES specifications, schematics, schedules, and other plans are developed. - The individual pieces of the project, often called work packages, are broken down, individual assignments made, and the process for completion clearly delineated. PROJECT LIFE CYCLES * Execution - During execution, the actual “work” of the PROJECT LIFE CYCLE STAGES project is performed, the system developed, or the product created and fabricated.
It is during the execution phase that the bulk of project team labor is performed. - Project costs (in man hours) ramp up rapidly during this stage. PROJECT LIFE CYCLES * Termination - Termination occurs when the completed PROJECT LIFE CYCLE STAGES project is transferred to the customer, its resources reassigned, and the project formally closed out. - As specific sub activities are completed, the project shrinks in scope and costs decline rapidly.
PROJECT LIFE CYCLES 5 components of a project may change over the course of its life cycle: - Client interest: The level of enthusiasm or concern expressed by the project’s intende customer. Clients can be either internal or external to the organization. - Project stake: The amount of corporate investment in the project. The longer the life of th project, the greater the investment.
- Resources: The commitment of financial, human, and technical resources over the life the project. - Creativity: The degree of innovation required by the project, especially during certa development phases. - Uncertainty: The degree of risk associated with the project. Riskiness here reflects th number of unknowns, including technical challenges that the project is likely to fa Uncertainty is highest at the beginning because many challenges have yet to be identif let alone addressed.
PROJECT LIFE CYCLES - The components are useful for developing a sense of the competing issues and challenges that aPROJECT LIFE CYCLE AND ITS EFFECTS project team is likely to face over the life cycle of a project. - Over time, while certain characteristics (creativity, resources, and uncertainty) begin to decrease, other elements (client interest and project stake) gain in importance. - Balancing the requirements of these elements across the project life cycle is just one of the many demands placed on a project team. DETERMINANTS OF PROJECT SUCCESS 3 DETERMINANTS OF PROJECT SUCCESS THE NEW QUADRUPLE CONSTRAINT - Any definition of project success must take into consideration the elements that define the very nature of a project: that is, time (schedule adherence), budget, functionality/quality, and customer satisfaction.
- We can also think of the criteria for project success in terms of internal versus external conditions. DETERMINANTS OF PROJECT SUCCESS * Time - Projects are constrained by a specified period of time during which they must be completed. They are not supposed to continue indefinitely. - Thus, the first constraint that governs project management involves this basic requirement: The project should come in on or before its established schedule.
DETERMINANTS OF PROJECT SUCCESS * Budget A second key constraint for all projects is a limited budget. Projects must meet budgeted allowances in order to use resources as efficiently as possible. Companies do not write blank checks and hope for the best.