Chapter-04 Project ManagementChapter four is the first of three chapters that describe the theoretical framework of the master's thesis. This chapter covers project management theory, the general project management model and its components.4.1. Project Definition and Project ManagementA project is an activity performed by a temporary organization to achieve a predetermined outcome. Projects are not limited in size or people involved, but are always temporary and have a clear beginning and a clear end [59]. Projects can be used for different types of assignments, but are most commonly used to realize corporate visions or goals [60]. It is important to have a clear distinction between project activities and line organization activities to ensure that there is no confusion about who performs what [61]. Working in projects requires project management but is often ignored [62]. However, organizations that use project management experience better customer relationships, shorter development times, greater reliability, and a clearer goal orientation [63]. For well-functioning project management it is important to have a support function, generally called the Project Management Office (PMO). The PMO is responsible for developing and managing the project methodology. It should have a resource and expertise center where training and administrative support is offered. The PMO is also responsible for distributing the results and experiences of finished projects to the rest of the organization [64].4.2. Project methodology A project methodology consists of processes, roles and models and is usually formed as a project management model. The purpose of a project methodology is to provide a way… middle of the paper… activities with long lead times can be allowed to start even if not all deliverables have been delivered, while some activities need to be wait for authorization and may end up never being authorized [83]. Stakeholder A stakeholder is someone who is affected by the outcome of the project and therefore has some kind of interest in the outcome. In small projects it is usually easy to identify all stakeholders, but in large projects it becomes more difficult to identify them as large projects involve a larger number of stakeholders. Regardless of the number of stakeholders or who they are, it is important that all stakeholders are reached with correct information regarding the project [84].SponsorThe sponsor is the person who orders the project and is also responsible for allocating resources to the project. The sponsor and recipient of the project do not have to be the same person [85].