Slide 1Slide 2WHAT IS A PROJECT?Why the emphasis on project management?Characteristics of ProjectsOther Common Characteristics of ProjectsPMI DefinitionPROJECT MANAGEMENT VS. GENERAL MANAGEMENTSkill Requirements for Effective Project ManagementWHAT IS MANAGED? THE THREE GOALS OF A PROJECTFigure 1-1: Performance, Cost, and Time Project TargetsTHE LIFE CYCLES OF PROJECTSFigure 1-2 The Project Life CycleFigure 1-3 An Alternate Project Life CycleSELECTING PROJECTSNonnumeric Selection MethodsNumeric Selection MethodsConfronting Uncertainty – The Management of RiskWhat uncertainties are encountered in project management?Can uncertainty surrounding projects ever be eliminated?THE PROJECT PORTFOLIO PROCESSThe Project Portfolio ProcessThe Aggregate Project PlanFigure 1-12 An Example Aggregate Project Plan1-1The World of Project Management1-21-3WHAT IS A PROJECT?1-4Why the emphasis on project management?Many tasks do not fit neatly into business-as-usual.Need to assign responsibility and authority for achievement of organizational goals.1-5Characteristics of ProjectsUnique Specific DeliverableSpecific Due Date1-6Other Common Characteristics of ProjectsMultidisciplinaryConflictComplexPart of Programs1-7PMI Definition“A temporary endeavor undertaken to create a unique product or service”Project Management Institute, 20001-8PROJECT MANAGEMENT VS. GENERAL MANAGEMENT1-9Skill Requirements for Effective Project ManagementConflict ResolutionCreativity and FlexibilityAbility to Adjust to ChangeGood PlanningNegotiation–win-win versus win-lose1-10WHAT IS MANAGED? THE THREE GOALS OF A PROJECT1-11Figure 1-1: Performance, Cost, and Time Project Targets1-12THE LIFE CYCLES OF PROJECTS1-13Figure 1-2 The Project Life Cycle1-14Figure 1-3 An Alternate Project Life Cycle1-15SELECTING PROJECTS1-16Nonnumeric Selection MethodsThe Sacred CowThe Operating/Competitive NecessityComparative Benefits1-17Numeric Selection MethodsFinancial Assessment Methods–payback period–discounted cash flowScoring Methods–unweighted 0-1 factor method–weighted factor scoring method1-18Confronting Uncertainty – The Management of Risk1-19What uncertainties are encountered in project management?Time required to complete a projectAvailability of key resourcesCost of resourcesTiming of solutions to technological problemsActions taken by competitorsActions taken by clients1-20Can uncertainty surrounding projects ever be eliminated?No, but it can be managed1-21THE PROJECT PORTFOLIO PROCESS1-22The Project Portfolio ProcessStep 1: Establish a Project CouncilStep 2: Identify Project Categories and CriteriaStep 3: Collect Project DataStep 4: Assess Resource AvailabilityStep 5: Reduce the Project and Criteria SetStep 6: Prioritize the Projects within CategoriesStep 7: Select the Projects to be Funded and Held in ReserveStep 8: Implement the Process1-23The Aggregate Project Plan1-24Figure 1-12 An Example Aggregate Project