CHAPTER 1

PROJECT MANAGEMENT IN TODAY'S TIME

OBJECTIVES

At the end of this chapter, the learner will be able to:

✔ Describe the nature of a project;

✔ Distinguish between different classifications of projects;
✔ Recognize the phases in the project life cycle and the pertinent activities in each phase;
✔ Characterize project attributes and their distinctive features;
✔ Internalize the primary goals of a project;
✔ Validate the societal forces that have contributed to the need and importance of project management in
today's organizations;
✔ Authenticate the advantages and disadvantages of project management.
✔ Verify the limitations of project management.
What is Project?
A project is a temporary unique group activity intended to meet specific objectives with constraints
and requirements in scope, budget, schedule, resources, performance factors and value designed to
meet customer needs. Based from the definition, a project is different from other organizational
efforts being undertaken by most organizations because of the following reasons:
1. it has an established objective
2. it has a defined life span with beginning and an end
3. it requires the involvement of several department and professionals.
4. it is doing something that has never been done before
5. it has specific time, budget, resources, performance and value added requirements
A project must come up with an output upon its completion called deliverable. A deliverable is the measurable
and tangible outcome or the result of the completion of the project or the end of the project's life cycle. It
could be in the following forms:

1. hardware deliverable - these are items like table, prototype or a piece of equipment
2. software deliverable - these are items like reports, studies, handouts and
documentation
3. interim deliverable - these are items that could be hardware or software and gradually advances as the
project progresses
Classifications of a Project
Project Type Definition Examples
1. Compliance It is a “must” project to meet the new ✔ Healthcare information protection
requirements enforced by management itself
and regulating bodies like the government projects.
Penalties await non-compliance.
✔ Environmental regulations project

2. Emergency It is a “must-do” project that is required to ✔ Rebuild factory damaged by fire

meet emergency condition. If not done will
impair operation and will not be able to fulfill
the core competencies of the firm. ✔Renovate plant destroyed by a strong
typhoon
3. Mission critical It is a project critical to the mission of the ✔ Construction of a data center of an
firm. If not accomplished shall cause
immediate and unacceptable negative application services provider
impact to the business.
✔A new facility to test products
4. Operational Operational project is considered necessary ✔ Six sigma projects
in order to give full support to present
operation like delivery system upgrading for
efficiency, product cost cutback and
performance enhancement.

5. Strategic It is a project that is vital to support the long ✔ New product design
term mission of increasing revenue and
market share.
✔ Development projects
A project life cycle is also referred to as project lifespan. A project life cycle is a compilation of a commonly sequential
project phases from the time it is originally envisioned until the time it is either make use of as a success or discarded
as a failure. There are a number of life cycle models based on the kind of industry or type of project.

1. Conceive/Initiation - In this stage the preliminary objective and technical specifications for the project is
developed; the scope of work is decided; the necessary resources are identified; teams are formed and important
organizational stakeholders are sought for commitments.
2. Planning - During this phase all comprehensive specifications, schematics, schedule and other plans are
developed; the individual pieces of the project are broken down; individuals assignments are prepared; and the
process of completion clearly described.
3. Execution - In this step the actual work of the project is executed, the system developed, or the product created
or constructed. Here the bulk of project team labor is carried out. The calculations made on time, cost and
specification during the previous stages are used for control.
4. Transfer/Delivery/Closure-This leg occurs when the project is completed and transferred to the customer, its
resources reassigned and the project formally ends.
Figure 1 The Project Life Cycle with Activities
The Project Life Cycle with Activities

The project life cycle also provides a beneficial way of imagining the challenges to be encountered at some point in
the life of a project. There are five components of a project that might vary over the course of its life cycle that may
pose as challenges:

1. Client interest - This is the intensity of eagerness or concern by the project's intended internal or external clients.
2. Project stake - It is the amount of investment by the organization in the project which may increase as the life of
the project becomes longer.
3. Resources - This is the commitment of financial, human and technical resources that might amplify over the
course of the life cycle of the project.
4. Creativity - It is a level of innovation needed by the project principally at some point in the development stages.
5. Uncertainty- This is the degree of risk related with the project. Normally, the riskiest is in the beginning of the
project when many challenges are still unknown and have not been discovered and dealt with.
Project Attributes
Project attributes are set of descriptive features and restrictions of a project that describe significant information regarding the project and communicate it to different stakeholders. They also illustrate project performance and activity condition.

Here are some attriutes that characterizes a project:

1. Importance- The project must be significant enough to the top management in order to rationalize putting up
a unique organizational unit beyond the routine structure of the organization. The project will surely fail if
majority of those in the organization believe that the project is not really essential. Some signs that the project
is not Important consist of the following:

a. top management does not talk about it

b. the project leader belongs to low stature or rank
c. the assignment of the project is delegated to an overstuffed employee
d. progress of the project is not being monitored
e. failure to oversee the needed resources for the project.
2. Scope- A project is a one-time activity that has detailed set of desired outcomes. In order to attain the project goals, the
project must be broken down into subtasks. These subtasks need cautious synchronization and control concerning time,
precedence, cost and scope due to the difficult nature of a project.

3. Life span with a fixed deadline- A project has a life cycle just like any natural bodies. It usually starts slow, then advances into
a peak passes to a decline before completed within a deadline. A successful project ends by being part of the customary,
current operations of the parent organization. However, a project may also fail.

4. Interdependencies- A project may interrelate with other projects being undertaken at the same time by parent organization.
This interrelation is ordinary, particularly in competing the scare resources. Besides, a project always interrelates with the
parent organization’s customary and current operations.

5. Uniqueness- No two projects are exactly the same due to some degree of customization. The presence of uncertainty in a
projects makes it impossible to complete it in a routine manner.

6. Resources- Majority of the resources required of a project has a restricted budget. Budget is usually implied rather than
comprehensive, but is firmly limited.

7. Conflict- A project normally struggles with functional departments in terms of human resources and other resources. In a
multi-project organization, the battle is the project vs project clash for resources. On the other hand, personnel working on a
project must report to two bosses at the same time. The problem with this situation is the differing objectives and priorities of
these two superiors.
 Primary Goals of a Project

The prime goals of a project are as follows:

1. Conclude the project within the planned timetable.

Within the specific time decided, the project must be completed. This means that personnel responsible
must do all feasible means to end the project on time. Presumption and ineffectiveness during planning of
the scope has to be avoided. This avoidance will give realistic time schedule with which to work.

2. Complete the project within the programmed budget.

Budgets are set in order to ensure that the expenditures are well managed and the money goes to
where it is intended. Completion of the project within the programmed budget makes obvious that
personnel working on it has manage the project responsibly.
3. End the project with the identical level of quality

Regrettably, quality is commonly given up when a project delay happens in order to catch up with the
deadline. In order to conclude a project in a speedy manner, some portions of it will require slimming
down od slashing entirely. Any revision on the project plan due to problems encountered must in no way
barter with quality. It is evenly vital to maintain the high quality of the entire project while keeping pace
with the target date.
4. Terminate the project within the detailed guidelines.
In order to delight the customers, it is imperative to meet the customer's needs.
Concluding the project with the essentials the customer truly hunted creates the "wow"
feeling.

5. Make the best of the task that has been given.

A perfect project is unattainable. A project may experience major peculiarities and
setbacks like terror attacks, severe calamities of typhoons and earthquakes, or war. With great
project team leaders and teams a project could still be successful despite these disasters.
Project goals were attained because they have done their best with what appeared their way.
 Why Project Management?

Project management is the science and art in the application of knowledge, skills and techniques to execute
projects effectively and efficiently toward the accomplishment of its goals and objectives. It could be applied in the
development of a new product, the launch of a new service, or a marketing campaign. In order to compete strategically
in the market, project management could be developed as a competency for organizations, binding project outcomes to
business goals.
Here are the few environmental forces that contribute to the increase demand for good project management
encompassing all industries:
1. Shorten product life cycle - In today's generation many industries are highly technical where product life cycles
ranges from one to three years. That's why time to market new products with short life cycles is of great essence.
Speed is now a source of competitive advantage. A lot of organizations are nowforming cross functional teams in
order to place new products and services in the market as soon as feasible.
2. Worldwide competition - The demands of the market is quality products and services in reasonable amount. So
many organizations today are using quality management and improvement to achieve better results in doing business.
In order to be flexible and efficient in getting things accomplished project management is employed with focus on time,
cost and performance.
 Advantage and Disavantage of Project Management
ADVANTAGES DISADVANTAGES
1. A more resourceful handling of resources 1. Overhead
(both human and monetary resources) as
both the schedule and the budget are a.)Cost overhead- all actions that can outlay a sizeable sum of money must
clear in the project plan. be kept aligned with the overall business strategy to make sound
2. Less cost and better quality of the end investments
product/service conveyed by executing b.)Communication overhead- instead of having the information stream
meticulous cost management and quality directly from functional managers down to the team members and back up,
management processes. it's all channeled through the Project Manager.
3. A better, more firm affiliation with the c.)Time overhead - Project Managers can never precisely evaluate the
client and other stakeholders by employing extent of any task, and pad their approximation so that they won't wind up
stakeholder management. with a late project
4. An improved teamwork atmosphere
because of the implementation of a formal 2. Obsession
process to acknowledging/resolving conflicts
(conflict management). a.) Methodology obsession Project Managers - become so blocked and so
5. A flattering touch of professionalism to the defensive to their own methodology that they reject to try out with a
company leading to a healthier insight by different one that may be quicker and superior for their existing project
external organizations.
 DISAVANTAGE S
b.) Process obsession-Quite a few Project Managers deter the advancement
of the project with their obsession for attaching to the process. The motive
why most Project Managers think process obsession as a good practice is
because of insecurity and fear of loss of control.

c.) Stakeholder obsession - Instead of administering the stakeholders'

expectations, requests, and interference, and focusing on getting their
support, these Project Managers strive their best to accommodate the
stakeholders. This accommodation, which often manifests itself in gold
plating, is pricey and unnecessary. Gold- plating is the act of furnishing the
customer more than what he initially requested for.

3. Non-creativity
a.)Technical -Project Management compels cut- off date on resources, who
have to work as speedy as they can to conclude their tasks on time. By
nature, people like to be artistic, particularly at work. However, when
there's a Project Manager breathing down their necks all the time, their
main goal is just to finish on time so they don't mind any longer on setting
free their creativity. This discourages the resources and unfavorably
influences the quality of the end product.

b. Managerial - Project Management, by nature, imposes the routine

process. Managers, habitually leading humans, become directed by a
process. Their managerial skills decline, as there's no requirement to hone
them anymore: the process is obvious and it should be pursued. Likewise,
managers (especially functional managers) become demoralized.
 Limitations of Project Management
A limitation is a constraint enforced by the application of traditional project management. A limitation
differs from a disadvantage as the latter is an unwanted outcome stemming from the implementation of project
management, while limitation is a 'margin unnaturally fashioned by project management. Without this
limitation better supervision of a project and superior quality of delivered product/service are the expected
results.
There are quite a few limitations to project management, primarily: 1. Failure to "stick" with the project
scope
1. Failure to “stick” with the project scope
Commonly, there is an absence of commitment to the original project scope owing to continuous
change requests in project management. In effect this constraint creates many problems. This is the main
explanation also why many projects end up way over budget and over late, at times even canceled.
2. Failure to completely make parallel the project objectives with the business! organizational strategy
A project manager is responsible in supervising projects, not managing their organization. Most
often a project manager is nor capable to guarantee that a project is align with the company's strategy.
Project management to resolve this limitation was placed in a higher layer of managerial control to
undertake and maintain alignment.
3. Failure to administer projects with unstipulated budget and/or schedule
Since traditional project management, this is the prevalent limitation. Project management enforces a
budget and a target date on any project which causes a big problem if not followed. Most projects completed
on time and on schedule have been bargained for quality.
4. Reliance on functional management
The reliance on functional management is a chief limitation in project management. It is the functional
manager who manages the resources especially human and not the project manager. The loyalty, respect
and gratitude of human resources are for the functional manager. A project manager is always at the mercy
of both the functional managers and the human resources. At times the project manager has to "offer
something" in return, in order to get things done for the project.
5. Pursuing an exclusive methodology
Only one methodology for a project is used in project management. In most cases, even when the other
methodology is proven to be highly successful for that type of project, no switching could be done. Being
controlled by a restricted, non-alterable methodology, either at the project level or the organizational level
weakens and confines the potential of the project as well as the resources.