Fundamentals of Project Management

Chapter-1From PMBOK 4th Edition @2008 PMI

What is a Project?

?

What is a Project?• A project is a sequence of unique, complex and connected

activities having one goal or purpose that must be completed by a specific time, wthin budget and according to specification

• A project is a complex, nonroutine, one-time effort limited by time, budget, resources, and performance specifications designed to meet customer needs

• Projects are ad hoc, resource-consuming activities used to implement organizational strategies, achieve enterprise goals and objectives, and contribute to the realization of the enterprise‘s mission

A project is a temporary endeavor undertaken to create a unique

product, service or result.

A Project can Create

• A product that can be either a component of another item or an end item in itself.

• A capability to perform a service(e.g., a business function that supports production or distribution).

• A result such as an outcome or a document (e.g., a research project that develops knowledge that can be used to determine whether a trend is present or a new process will benefit society).

Main features of a Project - Revision

• It is a temporary endeavor undertaken. • To create a unique product, service or result• Temporary, therefore, has a start and an end• End is reached when

– Objectives have been achieved– When objectives will not or cannot be met– Need for the project does no longer exist

• What can be the duration of a project?• What about the outcome of a project?

Examples of Projects

• Developing a new product or service (Why)• Effecting a change in the structure, staffing or

style of an organization• Developing or acquiring a new modified

information system• Constructing a building or infrastructure• Implementing a new business process or

procedure• Give examples of Projects in Pakistan / World

What is Project Management?

• It is the application of:– Knowledge– Skills– Tools– Techniques – To do project activities to meet project requirements– It is accomplished through appropriate application and

integration of 42 logically grouped project management processes comprising the 5 process groups.

– What are those FIVE Process Groups?– What are those 9 Knowledge Areas in Projects?

Mapping the Processes Initiating

P.G.

Planning

P.G.

Executing

P.G.

Controlling

P.G.

Closing

P.G.

4. Project Integration Management

4.1 Develop Project Charter

4.2 Develop Project Management Plan

4.3 Direct & Manage Project Execution

4.4 Monitor & Control Project Work

4.5 Perform Integrated Change Control

4.6 Close Project or Phase

5. Project Scope Management

5.1 Collect Requirements5.2 Define Scope

5.3 Create WBS

5.4 Verify Scope5.5 Control Scope

6. Project Time Management

6.1 Define Activities6.2 Sequence Activities6.3 Estimate Activity Resources

6.4 Estimate Activity Duration6.5 Develop Schedule

6.6 Control Schedule

7. Project Cost Management

7.1 Estimate Costs

7.2 Determine Budgets

7.3 Control Costs

9

PM Knowledge Area

Process Group

Mapping the Processes (cont.)Initiating

P.G.

Planning

P.G.

Executing

P.G.

Controlling

P.G.

Closing

P.G.

8. Project Quality Management

8.1 Plan Quality 8.2 Perform QualityAssurance

8.3 Perform Quality Control

9. Project Human Resource Management

9.1 Develop Human Resource Plan

9.2 Acquire Project Team9.3 Develop Project Team

9.4 Manage Project Team

10. Project

Communications

Management

10.1 Identify

Stakeholder

10.2 CommunicationsPlanning

10.3 Information Distribution

10.4 Mange Stakeholders

10.5 Report Performance

11. Project Risk

Management

11.1 Plan Risk Management11.2 Identify Risk11.3 Perform Qualitative Risk Analysis11.4 Perform Quantitative Risk Analysis11.5 Plan Risk Responses

11.6 Monitor & Control Risk

10

PM Knowledge Area

Process Group

Mapping the Processes (cont.)Initiating

P.G.

Planning

P.G.

Executing

P.G.

Controlling

P.G.

Closing

P.G.

12. Procurement 12.1 Plan Procurement

12.2 Conduct Procurement

12.3 Administer

Procurement

12.6 Close Procurement

11

PM Knowledge Area

Process Group

Why Projects?

To meet strategic business goals and objectives:

Strategic opportunityBusiness needsCustomer requestTechnological advanceLegal requirements

What is Project Management?

• Project Initiation

• Project Planning

• Project Execution

• Project Monitoring& Change Mgt.

• Project Closing

Relationship Between

• Project Management

• Portfolio Management

• Program Management

What is Portfolio Management?

• resource allocation to achieve corporate new product objectives.

Portfolio Management Portfolio (finance), a collection of investments held by an

institution or a private individual Career portfolio, an organized presentation of an individual's

education, work samples, and skills Artist's portfolio, a sample of an artist's work or a case used to

display artwork, photographs etc Product portfolio (business administration), 2D separation of

products by their market share and profits or growth rates (BCG) IT Portfolio, in IT portfolio management, the portfolio of large

classes of items of enterprise Information Technology (IT) Project Portfolio, in Project Portfolio Management, the portfolio of

projects in an organization. It is a collection of projects or programs and other works that are grouped together to facilitate effective management

Examples of Portfolio Management

An infrastructure firm that has the strategic objective of maximizing the return on its investments may have a portfolio of:

• Projects in oil & gas• Projects in power• Projects in water• Projects in roads• Projects in rail• Projects in airports

Program Management

Program Management is defined as a group of related projects managed in a coordinated way to obtain benefits and control not available from managing them individually.

Programs may include elements of related work outside the scope of the discrete projects in the program

A program will always have projects.

Program Management

It focuses on the project interdependencies and help to determine the optimal approach for managing them.

• Resolve resource constraints & conflicts • Aligning organizational direction• Resolve issues and change management

within a shared governance structure

Example of a Program Management

A new communication satellite system:• Designing of a satellite and ground system• Construction of a satellite and ground station• Integration of the system• Launching of the satellite

Project Management Office (PMO)

It is an organized body or entity assigned coordinated management of projects under its domain

It is the key decision maker during the beginning of each project

It is also responsible for the selection, management and deployment of shared or dedicated project resources

Functions of (PMO)

1. Managing shared resources2. Identifying & developing project management

methodology, best practices and standards3. Coaching, monitoring, training and oversight4. Monitoring compliance project audits5. Developing & managing project policies,

procedures, templates and other standard documentation?

6. Coordinating communication across projects

Project Manager

• Focuses on a specific project objective• Controls resources to best meet project

objectives• Manages the constraints (scope, schedule,

cost and quality etc) of individual project

Main Functions of a Project Manager Define scope of project Identify stakeholders & Leadership (decision

makers: Client, Parent organization, Project Team, Publics)

Evaluate project requirements Develop detailed task list (work breakdown,

structures) Develop initial project management flow chart Estimate time requirements Identify cost estimation and budget Identify required resources and evaluate risks

Main Functions of a Project Manager

Prepare contingency planIdentify interdependenciesIdentify and track critical milestonesSecure needed resources, manpowerParticipate in project phase reviewManage the change control processReport project status

Project Management Vs Operation Management

• How they are different?• When do they interact?

Project Management Vs Operation Management

• Operations are permanent endeavors that produce repetitive outputs with resources assigned to do same set of tasks

• It is an ongoing nature of operations• Projects are unique• Projects are temporary endeavors

Characteristics of a Project Manager

• Knowledge: Must be well versed with project management. ?

• Performance: Application of project management knowledge

• Personal: Behavior of the project manager:– Effectiveness– Attitude– Personality characteristics (Michael Dell)– Leadership, guidance to balance project constraints

Enterprise Environmental Factors

• Organizational culture, structure & processes• Government or industry standards• Infrastructure: Existing facilities and capital equipment• Existing human resource • Marketplace conditions• Stakeholder risk tolerance• Potential climate• Political climate• Established communication channels• Commercial databases: cost, risk study / info• Project management information systems (blog)

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