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Project Management Chap. 1 Introduction

Project Management fundamentals
Introduction. BBA / MBA course - Chapter 1

PPT available upon request: frgaucher@yahoo.fr.
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Francois Gaucher, DBA, MBA

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Project Management Chap. 1 Introduction

  1. 1. McGraw-Hill/Irwin © 2008 The McGraw-Hill Companies, All Rights Reserved Chapter 1 – Introduction Image by Free-Photos on Pixabay Project Management
  2. 2. 1-2 An Overview of Project Management Project Management - Chapter 1 - Introduction Page 2
  3. 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. 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. 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. 6. 1-6 Introduction: What Is a Project?  Project management statistics Source Pmi.org Project Management - Chapter 1 - Introduction Page 6
  7. 7. 1-7 Introduction: What Is a Project?  Project management statistics Source Pmi.org Project Management - Chapter 1 - Introduction Page 7
  8. 8. 1-8 PROJECT DEFINED Project Management – Chapter I. Introduction
  9. 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. 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. 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. 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. 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. 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. 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. 16. 1-16 Project Life Cycle Project Management - Chapter 1 - Introduction Page 16
  17. 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. 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. 19. 1-19 PM CERTIFICATION Project Management – Chapter I. Introduction
  20. 20. 1-20 Trends in Project Management related Jobs Project Management - Chapter 1 - Introduction Page 20 Source Pmi.org
  21. 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. 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. 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. 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. 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. 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. 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. 28. 1-28 PMP Certification - PMBOK Project Management - Chapter 1 - Introduction Page 28 Download PMBOK www.pmi.org
  29. 29. 1-29 PMI Credentials Project Management - Chapter 1 - Introduction Page 29
  30. 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. 31. 1-31 PMP vs PRINCE2 Project Management - Chapter 1 - Introduction Page 31 Source: www.whizlabs.com
  32. 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. 33. 1-33 INTEGRATED PROJECT MANAGEMENT SYSTEMS Project Management – Chapter I. Introduction
  34. 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. 35. 1-35 The Technical and Sociocultural Dimensions of the Project Management Process Project Management - Chapter 1 - Introduction Page 35
  36. 36. 1-36 An Overview of Project Management Project Management - Chapter 1 - Introduction Page 36
  37. 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

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