THE MANAGERIAL PROCESS
Universiti Teknikal Malaysia Melaka (UTeM)
BMFP 4542 1
An Overview of Project Management .
What is a Project?
A project is an interrelated set of activities
with a definite starting and ending point,
which result in a unique outcome for a
specific allocation of resources.
• Project Defined:
A complex, non-routine, one-time effort limited by
time, budget, resources, and performance
specifications designed to meet customer needs.
What is a Project?
• Major Characteristics of a Project
–Has an established objective.
–Has a defined life span with a beginning and an
–Requires across-the-organizational participation.
–Involves doing something never been done before.
–Has specific time, cost, and performance
What is a Project?
• Three main goals of any project:
– Complete the project on time or earlier.
– Do not exceed the budget.
– Meet the specification to the satisfaction of the
Needs the skills of multiple professions and organizations
Requiring new combination of skills and resource in the
Differences will arise with each replication, especially due
to uncertainties. So can change the characteristic and
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
• Project: completion of a required course in project
• Program: completion of all courses required for a business
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
Attaching tags on a manufactured Wire-tag projects for GE and
• Project management is a systemized, phased
approach to defining, organizing, planning,
monitoring, and controlling projects.
• A collection of projects is called a program,
which is an interdependent set of projects
with a common strategic purpose.
• A cross-functional effort: Even though a
project may be under the overall purview of a
single department, other departments likely
should be involved.
Project Management Questions
• What activities are required to complete a project
and in what sequence?
• When should each activity be scheduled to begin
• Which activities are critical to completing the
project on time?
• What is the probability of meeting the project
completion due date?
• How should resources be allocated to activities?
The Nature of Project Management
• Characteristics of Projects: purpose, life cycle,
interdependencies, uniqueness, and conflict.
• Project Management Process: planning (work
breakdown structure), scheduling, and controlling.
• Selecting the Project Manager: credibility, sensitivity,
ability to handle stress, and leadership.
• Building the Project Team: Forming, Storming,
Norming, and Performing.
• Principles of Effective Project Management: direct
people individually and as a team, reinforce excitement,
keep everyone informed, manage healthy conflict,
empower team, encourage risk taking and creativity.
• Project Metrics: Cost, Time, Performance
Project Life Cycle
The Challenge of Project Management
• The Project Manager
–Manages temporary, non-repetitive activities and
frequently acts independently of the formal
• Marshals resources for the project.
• Is linked directly to the customer interface.
• Provides direction, coordination, and integration to the project
• 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
• Selecting the right project manager is critical
and specific skills are needed.
Facilitator: Able to resolve conflicts, have leadership
skills and a systems view.
Communicator: Ability to keep senior management
informed, communicate progress, and work with team
Decision Maker: Able to organize members and make
• Team members need to be technically
competent, dedicated, and able to work well
with other team members.
The Importance of Project Management
• Factors leading to the increased use of project
– Compression of the product life cycle
– Global competition
– Knowledge explosion
– Corporate downsizing
– Increased customer focus
– Rapid development of Third World and
– Small projects that represent big problems
Integrated Project Management Systems
• Problems resulting from the use of piecemeal
project management systems:
–Do not tie together the overall strategies of the
–Fail to prioritize selection of projects by their
importance of their contribution to the firm.
–Are not integrated throughout the project life
–Do not match project planning and controls with
organizational culture to make appropriate
adjustments in support of project endeavors.
Benefits of an Integrative Approach
to Project Management
• Integration (or centralization) of project
management provides senior management with:
–An overview of all project management activities
–A big picture of how organizational resources are used
–A risk assessment of their portfolio of projects
–A rough metric of the firm’s improvement in managing
projects relative to others in the industry
–Linkages of senior management with actual project
Major Functions of Portfolio Management
• Oversee project selection.
• Monitor aggregate resource levels and skills.
• Encourage use of best practices.
• Balance projects in the portfolio in order to represent
a risk level appropriate to the organization.
• Improve communication among all stakeholders.
• Create a total organization perspective that goes
beyond silo thinking.
• Improve overall management of projects over time.
The Technical and
of the Project
Having a Nice Break
Next to Organization Strategy and Project Selection