Project Management | Chapter 01

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Student Version

CHAPTER ONE

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.

Modern Project Management

McGraw-Hill/Irwin

• Major Characteristics of a Project

–Has an established objective. –Has a defined life span with a beginning and an end. –Requires across-the-organizational participation. –Involves doing something never been done before. –Has specific time, cost, and performance requirements.

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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 common goal. –Example:

• Project: completion of a required course in project management. • Program: completion of all courses required for a business major.

Comparison of Routine Work with Projects

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

Projects

Writing a term paper Setting up a sales kiosk for 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

Attaching tags on a manufactured product

TABLE 1.1

1–3 1–4

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Project Life Cycle

The Challenge of Project Management

• The Project Manager

–Manages temporary, non-repetitive activities and frequently acts independently of the formal organization.

• Marshals resources for the project. • Is linked directly to the customer interface. • Provides direction, coordination, and...