Midterm Project management

Day to day activities in which organization engages while producing goods and services.

Organized work toward a predefined goal or objective that requires resources and effort, a unique venture having a budget and schedule.

A complex, one time process. It is limited budget, schedule and resource constraints and it is developed with a set goal. Finally, is focused on customers.

• occur only once (ad hoc)

• Essential components un how organizational strategies are constructed and how they are executed.

• Allow creation of new and improved products, services; and processes

• Guide the management of change

• Entails crossing functional and organizational boundaries

• Traditional management functions also apply

• Outcome base on customer satisfaction

• Once completed no longer exist

1. Conceptualization

2. Planning

3. Execution

4. Terminantion

Developments of the initial goal and technical specifications of the project

1. Client interest

2. Project stake

3. Resources

4. Creativity

5. Uncertainty

1. Time

2. Budget

3. Performance

4. Client acceptance

Meeting budget and schedule expectations

Meeting technical specifications, addressing curstomer Needs, and creating a project that satisfies the client needs

Determining whether the project achieved sufficing comercial sucess

Determining whether the project opened new markets or new product lines or helped to develop new technology

Is destined to systematically manage improvements within a process.

Are the models that allow benchmarking to happen within an organization

Defiend as the science of formulating, implementing and evualuating cross-functional decisions that enable an organization to achieve its objectives.

• developing vision and mission statement

• Formulating implementing and evaluating

• Making cross functional decisions

• Achieving objectives

A statement that describes the organizational vision of what it desires to become in the future.

A statement that argues the organization’s for existence

Tool for demonstrating some of the seemingly irresolvable conflicts that occur through the planned creation, and introduction of new projects.

Define as all individuals or groups, who have an active stake in the project and can potentially impact either positively or negatively the development

Include internal sources, such as top management, accountants, other functional managers and project team members

Include external sources such as clients, competitors suppliers, environmental groups.

Refers to the challenges companies face in both their internal environment (within organizations) and their external environment (outside a company.

• external opportunities (O)

• external threats (T)

• internal strenghts

• internal weaknesses

Develop projects that use strenghts to maximize opportunities.

Developed projects that use strenghts to minize threats

Developed projects that minimize weaknesses by taking advantage of opportunities

developed projects that minimize weaknesses and avoid threats.

• It designates, formal reporting relationships

• It identifies groupings

• Design of systems

Number of levels in the hierarchy - spa of control

Individuals into departments and departments into risk organization

• effective communication

• Coordination

• Integration across departments

• functional organizations

• Project organizations

• Matrix organizations

Group of people performing similar activities into the apartments

Group of people into project teams on temporary assignments

create a dual hierarchy, in which functions and projects have equal prominence

Centralize units that oversee or improve the management of project resources centres

• Technical details,

• expertise

• repository

• center of excellence

Is an organizational unit that has the test to over and improve the management of projects have been described as operating under one of three alternative forms and purpose in companies

the PMO is typically used only as a tracking and monitoring device.

This focuses on developing methods to continually improving project management skills by identifying what is working, where the shortcomings exist, and how to resolve ongoing problems

mantain and provide a cadre of trained and skilled project professionals as they are needed. Is responsible for supplying project managers and other skilled professionals to the company´s projects.

defines as the unwritten rules of behavior or norms that are used to shape and guide behaviour.

it is held by some subsets of the organization.

it is taught to all new members

1. technology

2. the environment

3. the geographical environment

4. the reward systems

5. rules and procedures

6. key organizational members

7. Critical incidents

help managers pick winners from a pool of projects

are numer or nonnumeric

1. Realism

2. capability

3. flexibility

4. ease of use

5. cost effectiveness

6. comparability

seek to use numbers as inputs for the decision process involved in selecting projects

an effective model must reflect organizational objectives, incluiding firm’s strategic goals and mission.

A model should be flexible enough to respond to changes in the conditions under which projects are carried out.

The model should be easily modified if trial applications require changes

a model must be simple enough to be used by people in all areas of the organization, both those in specific project roles and those in related functional positions.

1. risk

2. commercial

3. internal operating

4. additional

unpredictability to the firm

market potential

changes in firm operations

1. Checklist model

2. Simplified scoring models

3. Analytic hierarchy process (AHP)

4. Profile models

list of criteria applied to possible projects.

It requires agreement on these criteria and assumes all criteria are equily important.

each project receives a score that is the weighted sum of its grade on a list of criteria.

Requires agreement on the criteria and their weight and a score to be assigned to each criterion.

4 step processs that construct a hierarchy of criteria and sub criteria

Analytic hierarchy process

1. Allocate weights to criteria

2. Assigns numerical values to evaluations dimmensions

3. Determine score by summing the products of numeric evaluations and weights.

4. Unlike the simple score model this scores can be compared.

Allow managers to plot risk/returns options for various alternatives and then select the project that maximizes return while staying within a certain range of minimun acceptable risk.

investement/annual cash savings

determines how long it takes for a project to reach a breakeven point. The goal is to estimate cash flows both in and out the organization.

Initial cash investment + Sum of net cash flow for period t / (1+r+inflation rate during the period)^t

projects the change in firms value if a project is undertaken. Positive “…” implies that the project will profitable after a set amount of time.

Higher values mean that more revenue is generated in comparison to a lower “…” value projects

The discounted sum of cash flows by the company’s required rate of return to get a more accurate payback period.

a project must meet a minimum rate of return before it is worthy of consideration.

is the systematic process of selecting, supporting, and managing the firm’s collection of projects.

• Decision making

• Prioritization

• Review

• Realignment

• Reprioritization of a firm’s projects.

Pre-process phase

Process phase

Postprocess phase

methodology of selection and strategy

pre-screening, individual project analisis, screening, portfolio selection, and portfolio adjustment.

project development, project evaluation, and portfolio completion.

Classifies projects into 4 types according to commercial potential (x -axis) and technical feasibility. (y-axis)

high probability of technical feasibility and a modest comercial profitability.

high probability of technical feasibility and a high comercial profitability.

projects that offer strong commercial potential and are technical feasible.

These projects can be used to gain a strategic advantage in the market place.

modest probability of technical feasibility and a high comercial profitability.

early-stage project that have the potential to unleash signifcant strategic and commercial advatages for the company that can solve technical challenges.

Because “...” projects involve unknown revolutionary technolgy they are still at the early stages of possible success

low probability of technical feasibility and a low comercial profitability.

is everything about the project - work content as well as expected outcomes

is the function of controllling a project in term of its goals and objectives.

1. Conceptual development

2. Scope statement

3. Work authorization

4. scope reporting

5. control systems

6. project closeout

the process that addresses project objective by finding the best ways to meet them. Data collection and development of information are crucial in creating conceptual development. We recognize several key steps when it comes down to data collection and information development.

A statement that entails why there is a need in finding a solution, what the exact underlying problem is, and the implications of the project.

the demands, needs, and specification for a product as outlined by project stakeholders.

the project manager gathers data as he/she/they/it/moo needs to have a clear understanding of a specific target date, alternative supplier options, the degree of top management support for the project,.

what restriction can potentially have an influence on the development of the project.

first clearly understanding the nature of the problem statement and then working to generate alternative solutions.

a clear statement of the final objectives for the project in terms of output, require resources, timing.

The organization’s justification for committing to the project.

detail narrative of the description of the work required for the project

A document issued by the project initiator formally sanctioning the existance of the project and autherises the project manager to begin applying organzational resources to project activities.

there is a business case for the project

Elements of the project are understood

company-specific information for the project has been applied.

reflects a project teams best effort at creating the documentation and approval of all important project parameters prior to the development phase.

1. establish the project goal criteria

2. develop a mangement plan

3. establish a work breakdown structure

4. create a scope baseline

A hierachical composition of the total scope of the work to be carried out by the project team to acopmplish the project objective and create the project deliverables.

elements of the project that are isolated for assignment to work centres for acomplishment.

Organize tasks into cost control accounts.

all projects are promised in terms of the specific functionality, or performance criteria, they will meet.