Contemporary

PROJECT MANAGEMENT
MGT 604 - (40728)
July 6th - 27th 5:30pm - 10:00pm
Sat. July 9th 8:00am - 12:30pm
Sat. July 30th 8:00am - 12:30pm
Prof. Robert Showghi, M.B.A.

Introductions:
Robert Showghi (robert.showghi@natuniv.edu or rshowghi@gmail.com)

Emery Bullock,
Michael Fuller,
Sandra Rivera,
Mark Kampa,
Jondola Kumano,
Hau Le,
Christopher Millard,
ZeeshanAli Mohammed,
Vladimir Parica,
Hector Roman Jr,
Tobias Schadl,
Swetha Swarna,
Zhenyu Wang,
Jesse White,
Swetha Yarra,
Pujuan Huang

RSTP

(Robert Showghis Teaching Principles)

A little knowledge that acts is worth infinitely more
than lots of information that is idle. (Khalil Gibran / 1881-1931)

The Donkey and His Shadow

A traveler hired a donkey to convey him to a distant place. The day being
intensely hot, and the sun shining in its strength, the traveler stopped to rest,
and sought shelter from the heat under the shadow of the donkey. As this
afforded protection for one, and as the traveler and the owner of the donkey
both claimed it, a violent dispute arose between them as to which of them had
the right to the shadow. The owner maintained that he had let the donkey only,
not his shadow. The traveler asserted that he had, with the hire of the donkey,
hired his shadow also. The quarrel proceeded from words to blows, and while
the men fought, the donkey galloped off.
(Aesop / 620 BC - 564 BC)

In quarrelling about the shadows, we often lose the substance.

Course Learning Outcomes

Elements of Project Management (PM), Business Environment,
Evolutionary Trends
Core processes of Project Management that are used for Defining,
Planning, Scheduling, Budgeting and Monitoring project performance;
Life-cycle of a Project and the types of activities that are contained in
each phase of the process;
How to read and analyze the Planning, Budgeting and Project
Oversight & Control Tools (Reports and Graphical);
The basic Statistical Tools to help Forecast Project Performance in
terms of Scope, Schedule, Cost;
The most common data elements to Project Management and
Control;
How Information Technology impacts PM; the basic elements of a
Project Management Information System (PMIS);
Earned Value Management (EVM);

Course Schedule & Grade Rubrics

Week-1: Readings: Chapters 1-4
Article Review on a Contemporary Project; Due at Dropbox by
7/10 50 Points
Week-2: Readings: Chapters 5-8
Case Study: A Project Management and Control System for
Capital Projects (TBD); Due at Dropbox by 7/17 50 Points

Quiz 7/13 50 points

Week-3: Readings: Chapters 9-11

Quiz 7/20 50 points

Week-4: Readings: Chapters 12-15

PM Exercise: Planning & Budgeting; Due at Dropbox by 7/29 50 Points

Comprehensive Final Exam (7/30): 8:00am-12:00pm;100 Points

Weeks1 through 4: Class Participation 50 points

Project Management:
A Managerial Approach
Week 1-1

Project Management Introduction

2006 John Wiley and Sons, Inc.

Project Management
One of the most useful tools for managers
Fairly easy to Learn, Master and get Certified
An important employment differentiator

iPhone 6

Release Date: 9/19/14

Est. Mfg. Cost: ~$210
Features / Specifications:

Components to be Designed, Manufactured,

Tested, Operationally Certified by 9/19

18
18

4G
4G

A
A

Additional Considerations for 9/19 Release

Hardware Design
Metal

Frame
Sapphire Camera Lens Cover
Headphone
Chargers

Software Compatibilities & Backward Integration

Packaging & Promotional Material
Carrier Contracts & Promo Coordination
Marketing & Advertisement
Etc.

Key Elements of a Project

Scope

Required Performance

Objective
Budget Limit

Due Date
(Schedule)

Time

Cost

A Project Organization Structure

President
Human
Resources

Finance

Design

Quality
Mgt

Production

Project
No. 1

Project
Manager

Mechanical
Engineer

Test
Engineer

Technician

Project
No. 2

Project
Manager

Electrical
Engineer

Computer
Engineer

Technician

Marketing

Traditional Organization Structures

Finance
FinanceMfg.
Mktg/ Eng.
Mfg. Mktg/
Eng.
Sales
Sales

Role of A Project Manager

Highly Visible Position
Responsible for making sure that:
1. All necessary activities are finished in order
and on time
Managers
should be:
2. The project comesProject
in within
budget
quality
Good Coaches
3. The project meets
goals
Good Communicators
4. The people assigned
to the project receive
Able to Organize Activities
Motivation, Direction,
and Information

from a Variety of Disciplines

History of PM
Emerged as a formal discipline in the 1950s
Developed for aerospace and construction
Involved determining project schedules
Manufacturing, R&D, government, and
construction refined techniques
Software (1980s and 1990s) for planning and
controlling
Risk management techniques
Communication and leadership role emerged

Forces of Project Management

1. Exponential expansion of human knowledge;
2. Growing demand for a broad range of Complex,
Sophisticated, Customized Goods and Services
3. Evolution of worldwide competitive markets for the
production and consumption of goods and services
4. Team-based Problem Solving vs. Individual

Project Management Institute:

Membership Growth

The Definition of a Project

Program: An exceptionally large, long-range objective that
is broken down into a set of projects
Project:
Projects are Unique and Non-routine activities
A problem with a known solution scheduled for
completion
A specific, finite task" to be accomplished
Task: Set of activities that comprise a Project
Work Packages: Division of Tasks
Work Units: Division of Work Packages

Organizational Imperatives
Traditional Hierarchical Management Declining
Consensual Management Increasing
Increasing Reliance on Complex Systems
Engineering
Projects Integral to Organizational Strategy

Organizational Management Structure

Traditional /
Hierarchical
Management

Todays Organic
Structure

The more complex and turbulent the

external environment, the greater the
need for a more organic structure and
design

Project Management (PM)

Administrative tasks

Planning
Documenting
Controlling

Leadership tasks for work associates

Visioning

Motivating

Promoting

Knowledge, skills, and methods apply for most

projects

Project Life Cycle Stages

Selecting and initiating
Planning
Executing
Closing and realizing

Project Life Cycle (PLC)

A project must pass an approval of to move
from one stage to the next
The project life cycle is highly formalized
and very specific
Projects are measured at additional points

Selection,
Progress reporting,
Benefits realization

Predictive (Plan-Driven) PLC

Predictive extreme waterfall

Adaptive (Change-Driven) PLC

Adaptive extreme agile

Project Management Body of

Knowledge (PMBOK)
Project Life Cycle
5 process groups
10 knowledge areas

Project
ProjectManagement
Managementprocess
processgroup
groupa
alogical
logicalgrouping
groupingof
of
the
theproject
projectmanagement
managementinputs,
inputs,tools
toolsand
andtechniques,
techniques,and
and
outputs.
outputs.PMBOK
PMBOKGuide
Guide

PMBOK Process Groups

1.
1. Initiating
Initiatingdefine
defineaaproject
projector
oraanew
newphase
phaseby
by
obtaining
obtainingauthorization
authorization
2.
2. Planning
Planningestablish
establishthe
theproject
projectscope,
scope,refine
refine
objectives
objectivesand
anddefine
defineactions
actionsto
toattain
attainobjectives
objectives
3.
3. Executing
Executingcomplete
completethe
thework
workdefined
definedto
tosatisfy
satisfy
project
projectspecifications
specifications
4.
4. Monitoring
Monitoringand
andControlling
Controllingtrack,
track,review,
review,and
and
regulate
regulateprogress
progressand
andperformance,
performance,identify
identifychanges
changes
required,
required,and
andinitiate
initiatechanges
changes
5.
5. Closing
Closingfinalize
finalizeall
allactivities
activitiesto
toformally
formallyclose
closeproject
project
of
ofphase
phase

PMBOK Knowledge Areas

1.
1. Integration
IntegrationManagement
Management--processes
processesand
andactivities
activitiesto
to
identify,
identify,define,
define,combine,
combine,unify,
unify,and
andcoordinate
coordinatethe
thevarious
various
processes
processesand
andproject
projectmanagement
managementactivities
activities
2.
2. Scope
ScopeManagement
Management--processes
processesto
toensure
ensurethat
thatthe
theproject
project
includes
includesall
allthe
thework
workrequired,
required,and
andonly
onlythe
thework
workrequired,
required,
to
tocomplete
completethe
theproject
projectsuccessfully
successfully
3.
3. Time
TimeManagement
Management--processes
processesto
tomanage
managetimely
timely
completion
completionof
ofthe
theproject
project
4.
4. Cost
CostManagement
Management--processes
processesinvolved
involvedin
inplanning,
planning,
estimating,
estimating, budgeting,
budgeting, financing,
financing, funding,
funding, managing,
managing, and
and
controlling
controllingcosts
costsso
sothat
thatthe
theproject
projectcan
canbe
becompleted
completedwithin
within
the
theapproved
approvedbudget
budget

PMBOK Knowledge Areas

5.
5. Quality
QualityManagement
Management--processes
processesand
andactivities
activitiesof
ofthe
the
performing
performingorganization
organizationthat
thatdetermine
determinequality
qualitypolicies,
policies,
objectives,
objectives,and
andresponsibilities
responsibilitiesso
sothat
thatthe
theproject
projectwill
will
satisfy
satisfythe
theneeds
needsfor
forwhich
whichititwas
wasundertaken
undertaken
6.
6. Human
HumanResources
ResourcesManagement
Management--processes
processesthat
that
organize,
organize,manage,
manage,and
andlead
leadthe
theproject
projectteam
team
7.
7. Communications
CommunicationsManagement
Management--processes
processesto
toensure
ensure
timely
timelyand
andappropriate
appropriateplanning,
planning,collection,
collection,creation,
creation,
distribution,
distribution,storage,
storage,retrieval,
retrieval,management,
management,control,
control,
monitoring,
monitoring,and
andultimate
ultimatedisposition
dispositionof
ofproject
projectinformation
information

PMBOK Knowledge Areas

8.
8. Procurement
ProcurementManagement
Management--processes
processesto
topurchase
purchaseor
or
acquire
acquireproducts,
products,services,
services,or
orresults
resultsfrom
fromoutside
outsidethe
theproject
project
team
team
9.
9. Stakeholder
StakeholderManagement
Management--processes
processesto
toidentify
identifythe
the
people,
people,groups,
groups,or
ororganizations,
organizations,that
thatcould
couldimpact
impactor
orbe
be
impacted
impactedby
bythe
theproject,
project,analyze
analyzetheir
theirexpectations
expectationsand
and
impact,
impact,and
anddevelop
developstrategies
strategiesfor
forengaging
engagingthem
themand
and
managing
managingconflicting
conflictinginterests
interests
10.
10.Risk
RiskManagement
Management--processes
processesof
ofconducting
conductingrisk
risk
management
managementplanning,
planning,identification,
identification,analysis,
analysis,response
response
planning,
planning,and
andcontrolto
controltoincrease
increasethe
thelikelihood
likelihoodand
andimpact
impact
of
ofpositive
positiveevents
eventsand
anddecrease
decreasethe
thelikelihood
likelihoodand
andimpact
impactof
of
negative
negativeevents
eventsin
inthe
theproject
project

Project Success
Deliverables include all agreed upon features
Outputs please customers
Customers use the outputs effectively
Completed on schedule and on budget
Completed without heroics
Learn new and/or refine skills
Organizational learning
Reap business-level benefits

Why Projects Fail

Inadequate project planning & execution
Not enough resources available
Not enough time given to the project
Project expectations are unclear
Changes in the scope not understood or
agreed upon
Stakeholders disagree on expectations

Project Roles
Project Executive-Level Roles
Project Management-Level Roles
Scrum Master / Facilitator
Project Associate-Level Roles

Project Executive-Level Roles

The steering team

The top leader (CEO) and his/her direct reports

Select, prioritize, and resource project
Ensure that accurate progress is reported

Project Executive-Level Roles

The sponsor

Active roles:
Charter

the project
Review progress reports

Behind-the-scenes role:
Mentoring

the project manager

Assisting the project manager

Project Executive-Level Roles

The senior customer representative

Identifies and prioritizes constituents requirements

Ensures project progress support customer desires
Continuous and active role

Project Executive-Level Roles

The Chief Projects Officer

Supports project managers

Require compliance to project directives

Project
ProjectManagement
ManagementOffice
Office(PMO)
(PMO)an
anorganizational
organizational
structure
structurethat
thatstandardizes
standardizesthe
theproject
projectrelated
relatedgovernance
governance
processes
processesand
andfacilitates
facilitatesthe
thesharing
sharingof
ofresources,
resources,
methodologies,
methodologies,tools
toolsand
andtechniques.
techniques.PMBOK
PMBOKGuide
Guide

Project Management-Level Roles

Project Manager

Directly accountable for project results,

schedule, and budget
The main communicator
Responsible for the planning and execution
of the project
Works on the project from start to finish.
Limited formal power

Project
Projectmanager
managerthe
theperson
personassigned
assignedby
bythe
theperforming
performing
organization
organizationto
tolead
leadthe
theteam
teamthat
thatisisresponsible
responsiblefor
forachieving
achieving
the
theproject
projectobjectives.
objectives.PMBOK
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Project Management-Level Roles

Functional Manager

Department heads
Determine the how of project work
Supervise the work
Negotiate with the Project Manager

Project Management-Level Roles

Facilitator

Helps the Project Manager with the process of

running meetings and making decisions

Scrum Master / Facilitator

Project Manager who serves and leads as:

Collaborator
Facilitator

Project Associate-Level Roles

Project management team

Core team members

Planning
Project-level decisions

Project
Projectmanagement
managementteam
teammembers
memberswho
whoare
aredirectly
directly
involved
involvedin
inproject
projectmanagement
managementactivities.
activities.PMBOK
PMBOKGuide
Guide

Overview of the Book

Our book has three major parts:
I.

Organizing and Initiating Projects

II.

Planning Projects

III.

Performing Projects

Part I - Organizing and Initiating Projects

Week - 1
Project Management Basics (Chapter 1)
Project Selection and Prioritization (Chapter 2)
Organizational Structure, Organizational Culture,
Project Life Cycle, and Project Management
Roles (Chapter 3)
Chartering Projects (Chapter 4)
Project
ProjectCharter
Chartera
adocument
documentissued
issuedby
bythe
theproject
projectinitiator
initiator
or
orsponsor
sponsorthat
thatformally
formallyauthorizes
authorizesthe
theexistence
existenceof
ofaa
project,
project,and
andprovides
providesthe
theproject
projectmanager
managerwith
withthe
theauthority
authority
to
toapply
applyorganizational
organizationalresources
resourcesto
toproject
projectactivities.
activities.
PMBOK
PMBOKGuide
Guide

Part II Planning Projects

Week - 2
Identify project stakeholders:

Wants and needs

How to prioritize decisions
Communications planning (Chapter 5)

Determine the project scope:

Work breakdown structure (WBS) (Chapter 6)
Scheduling projects (Chapter 7)
Scheduling resources on projects (Chapter 8)
Work
WorkBreakdown
BreakdownStructure
Structure(WBS)
(WBS) a
ahierarchical
hierarchical
decomposition
decompositionof
ofthe
thetotal
totalscope
scopeof
ofwork
workto
tobe
becarried
carriedout
out
by
bythe
theproject
projectteam
teamto
toaccomplish
accomplishthe
theproject
projectobjectives
objectives
and
andcreate
createthe
therequired
requireddeliverables.
deliverables.PMBOK
PMBOKGuide
Guide

Part II (cont.) Planning Projects

Week - 3
Project Budgeting (Chapter 9)
Risk Planning (Chapter 10)
Project Quality (Chapter 11)
Project
ProjectSchedule
Schedule presents
presentslinked
linkedactivities
activitieswith
with
planned
planneddates,
dates,durations,
durations,milestones
milestonesand
and
resources.
resources.PMBOK
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Guide
Budget
Budget the
theapproved
approvedestimate
estimatefor
forthe
theproject
projector
orany
anywork
work
breakdown
breakdownstructure
structurecomponent
componentor
orany
anyschedule
scheduleactivity.
activity.
PMBOK
PMBOKGuide
Guide

Part III Performing Projects

Week - 4
Supply Chain Management (Chapter 12)
Project Team Development (Chapter 13)
Monitoring and Controlling Project Work
(Chapter 14)
Finishing Projects and Realizing Benefits
(Chapter 15)
Monitor
Monitorand
andControl
ControlProject
Projectwork
work the
theprocess
processof
oftracking,
tracking,
reviewing,
reviewing,and
andreporting
reportingthe
theprogress
progressto
tomeet
meetthe
theperformance
performance
objectives
objectivesdefined
definedininthe
theproject
projectmanagement
managementplan.
plan.PMBOK
PMBOKGuide
Guide
Close
Closeproject
projector
orphase
phase the
theprocess
processof
offinalizing
finalizingall
allactivities
activities
across
acrossall
allof
ofthe
theproject
projectprocess
processgroups
groupsto
toformally
formallyclose
closeaaproject
project
or
orphase.
phase.PMBOK
PMBOKGuide
Guide

Summary
PMBOK Guide
Five process groups:
Initiating, Planning, Executing, Monitoring and
Controlling, and Closing
Nine knowledge areas:
Cost, Time, Scope, Quality, Risk, Communications,
Human Resources, Procurement, and Integration.
Project Management requires an understanding of the
various executive, managerial, and associate roles in
project management

Project Selection and

Prioritization

Chapter 2

Strategic Planning Process

Strategic Analysis Enterprise
Guiding Principles:

Vision
Mission Statement

Strategic Objectives
Flow-down Objectives
Alignment of Projects with the Strategic Plan

Factors Affecting Mission

Philosophy
and Values
Profitability and
Growth

Environment

Mission
Customers

Public Image

Benefit to
Society

How Strategy is Shaped

Mission
Internal

External

Strengths

Opportunities

Analysis
Internal

External

Weaknesse
s

Threats

STRATEGY

Mission & Strategies

Cascade, Superordinated,
Through the Organization

Enterprise
Functional Areas
Departments
Projects

Strategic Unity and Alignment is Imperative!

53

Portfolio, Program, Project, and

Subproject Relationships

Identifying Potential Projects

t
ke t
ar ke an
M ar m nd
M dema d
de

Strategic
opportunity

All

should participate
Identify twice the projects
Brief description of
project elevator pitch

al
t
n
e n
m
n
o
i
o
t
r
i
a
v
r
En side
con

al nt
g
Le eme
ir
u
req

Technologica
l advance

Social
need

Cus
tom
er
Req
ues
t

Identifying Potential Projects

Summarize the work
Statement
Statementof
ofWork
Worknarrative
narrativedescription
description
of
ofproducts,
products,services
servicesor
orresults
resultsto
tobe
be
provided
providedby
bythe
theproject.
project.PMBOK
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Guide

Why the project is important

Business
BusinessCase
Casedescribes
describesthe
thenecessary
necessaryinformation
information
from
fromaabusiness
businessstandpoint
standpointto
todetermine
determineififthe
theproject
projectisis
worth
worththe
therequired
requiredinvestment.
investment.PMBOK
PMBOKGuide
Guide

Methods for Selecting Projects

What value does each potential
project brings to the organization?
Are the demands of performing each
project understood?
Are the resources needed to perform
the project available?
Is there enthusiastic support both from
external customers and from one or
more internal champions?
Which projects will best help the
organization achieve its goals?

Methods for Selecting Projects

Include financial and scoring models

Projects are investments

Three different approaches

1.
2.
3.

Financial analysis as the primary means of selection

Financial models as screening devices
Financial justification as one factor in a multi-factor
scoring model

Using a Cost-Benefit Analysis Model to

Select Projects

NET PRESENT VALUE (NPV)

Most widely accepted model
Discount the expected future value
Subtract discounted costs from discounted
benefits

Using a Cost-Benefit Analysis Model to

Select Projects

BENEFIT-COST RATIO (BCR)

Divide the cash flow by the initial cash outlay
A ratio above 1.0 means the project is
expected to profit

INTERNAL RATE OF RETURN (IRR)

Percentage return expected on the investment
A ratio above the current cost of capital

Using a Cost-Benefit Analysis Model to

Select Projects

PAYBACK PERIOD (PP)

Time required to pay back the initial project
investment

Shorter payback periods are desirable

Financial models ensure the cost and return

perspective
Financial models DO NOT ensure alignment
with strategic goals

Financial Models for Project Selection

Using a Scoring Model to Select

Projects
Identify potential criteria
Determine mandatory criteria
Weight criteria
Evaluate projects
Sensitivity analyses

Examples of Project Selection Criteria

Project Selection and Prioritization Matrix

Completed Project Selection and

Prioritization Matrix
Evaluate
Rate
Weight
Display
Select

Sensitivity Analysis
Decision if factors change
Some criteria may be deemed more important
than others
Add missing criteria or new alternatives

Revised Project Selection and

Prioritization Matrix

Prioritizing Projects
Which projects assigned resources and
scheduled to begin first
Scoring models provide input
Other considerations:

The urgency of each project

Cost of delaying the expected benefits
Practical details of timing

Alternative Breaks Project Selection and

Prioritization Matrix

Securing Projects
The client perspective

Selection and prioritization process

Make versus Buy decision

The contractor perspective

Identify potential project opportunities

Determine which opportunities to pursue
Prepare and submit project proposal
Negotiate to secure the project

Identify Potential Project Opportunities

Perform portfolio alignment exercise
Attend trade shows and professional
conferences
Practice customer relationship management

Establish and nurture personal contacts

Link information systems

Determine Which Opportunities to Pursue

Target projects to pursue:

Use SWOT analysis

Determine if project will help achieve contractor

objectives
Consider cost to pursue the work
Consider probability of securing the project
Consider capability to perform the work

Typical Source Selection Criteria

Negotiate to Secure the Project

Negotiate money to be paid for a project
Negotiate:

Personnel

Contractual
terms
Schedule

Quality
standards

Reporting
mechanisms

PM to find a solution to secure project work

with enough profit potential

Summary
Selection begins with strategic planning
Use SWOT analysis
Develop Mission and Vision statements as
guiding principles
Use portfolio management to consider:

Resources
Organizational Capabilities
Individual Capabilities

Summary
Evaluate potential projects through
financial and/or scoring models
Prioritize selected projects for completion
External project may be a better fit

Article Review on a Contemporary Project

Due by Sunday
Write a short 750-1000 word review of an article
that describes a project of your choice.
List and describe the purpose and goals of the
project, who are the stakeholders of the project,
when is the project supposed to finish, and how
much the project will cost.
Review should conclude with your opinion on the
challenges confronting the projects outcomes
and risks.
Cite your article in APA style.