Project Management Fundamentals: Structures and Concepts

Project Management Definitions

A project is a temporary endeavor undertaken to create a unique product, service, or result. It consists of a concrete and organized effort motivated by a perceived opportunity when facing a problem, a need, a desire, or a source of discomfort. It seeks the realization of a unique and innovative deliverable, such as a product, a service, a process, or scientific research.

• Program: A group of related projects managed in a coordinated manner to obtain benefits and control that would not be available if managed individually.
• Portfolio: A set of projects or programs grouped together to facilitate effective management and meet strategic business objectives.
• Subproject: A subdivision of a larger project.

Organizational Models: Advantages and Disadvantages

Functional Organization

• Advantages:
  1. Company grouped by specialties.
  2. Single supervisor.
  3. Well-defined career plan in each area of specialization.
• Disadvantages:
  1. Team emphasizes functional specialty over the project.
  2. Project manager has little or no authority.
  3. No career plan for project management.

Matrix Organization

• Advantages:
  1. Maximum use of scarce resources.
  2. Greater support from functional areas.
  3. Increased control of resources and visibility of project objectives.
• Disadvantages:
  1. Increased administrative work and intensive use of policies.
  2. Difficult to monitor and control.
  3. Multiple reporting lines (functional directors vs. project managers) can cause conflict.

Project-Oriented Organization

• Advantages:
  1. Efficient project organization.
  2. High project loyalty.
  3. Effective communication.
• Disadvantages:
  1. Less effective use of resources.
  2. Lack of professionalization in specific disciplines.
  3. Duplication of functions.

Essential Project Tools

Project Charter

A document that formally recognizes a project. It includes a problem statement, project objectives, benefits, process owners, and a project sponsor or champion.

Critical Path

The sequence of stages determining the minimum time needed for an operation, especially when analyzed for a large organization.