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ROJECTP

MANAGEMENT

Nine Project Management

Knowledge Areas

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Learning Objectives

Understand the difference between

a project and project management The Triple Constraint

Integration Management

Scope Management

Time Management

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Learning Objectives

Cost Management Quality Management

Human Resource Management Communications Management Risk Management Procurement Management

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What is a Project?

A project is a temporarily endeavorundertaken to create a unique product,

service, or result.

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Project Attributes

A project has a unique purpose

A project is temporarily

A project is developed using progressive

elaboration

A project requires resources, often from

various areas

A project should have a primary customer orsponsor

A project involves uncertainty

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Project management

Project management is the application of

knowledge, skills, tools and techniques to

project activities to meet project

requirements.

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The Triple Constraints

Every project constrained in different ways by its

scope, time, and cost goals. These limitations

are sometimes referred to in project

management as the triple constraint.

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The Triple Constraints

Scope: all the work we have to do in order to

create the clearly specified product.

Time: the time we need in order to create that

product.

Cost: the total amount of money we need in

order to create that product.

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Integration Management

Project Integration Management includes the

processes and activities needed to identify,

define, combine, unify, and coordinate the

various processes and project managementactivities within the Project Management

process group

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Integration Management Processes

Developing the project charter involves working with stakeholders to

create the document that formally authorizes a project the charter

Developing the project management plan involves coordinating all

planning efforts to create a consistent, coherent document the project

management plan

Directing and managing project execution involves carrying out the project

management plan by performing the activities included in it

Monitoring and controlling project work involves overseeing activities to

meet the performance objectives of the project

Performing integrated change control involves identifying, evaluating, andmanaging changes throughout the project life cycle.

Closing the project or phase involves finalizing all activities to formally

close the project or phase.

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Table of Processes

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Case Study

Project involved creating the hardware and software for a DNA- sequencinginstrument used in assembling and analyzing the human genome. Thebiotech project was the companys largest endeavor, and it hadtremendous potential for future growth and revenues. Unfortunately,there were problems managing this large project. Nick Carson recently

became project manager of this project. The CEO told him to do whateverit took to deliver the first version of the software for DNA sequencinginstrument in four months and a production version in nine months. Hewas having difficulty in this new role as project manager. Although Nickand his team got the product out on time top management was upsetbecause Nick did not focus on managing all aspects of the project. He

never provided them with accurate schedules or detailed plans of whatwas happening on the project. Instead of performing the work of projectmanager, Nick had taken on the role of software integrator andtroubleshooter.

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Scope Management

Project Scope Management includesthe processes involved in defining and

controlling what work is or is notincluded in a project.

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Scope Management Processes

Collecting requirements involves defining and documenting the featuresand functions of the products produced during the project as well as theprocesses used for creating them

Defining scope involves reviewing the project charter, requirementsdocuments, and organizational process assets to create a scope

statement, adding more information as requirements are developed andchange requests are approved.

Creating the WBS involves subdividing the major project deliverables intosmaller, more manageable components.

Verifying scope involves formalizing acceptance of the project deliverable.Key stakeholders such as the customer or sponsor for the project, inspectand then formally accept the deliverable during the this process.

Controlling scope involves controlling changes to project scope throughoutthe life of the project

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Table of Processes

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Case Study

In the late 1980s at Northrop Grumman, which specializes in defense

electronics, information technology, advanced aircraft, shipbuilding, and

space technology, an IT project team became convinced that it could, and

should, automate the review and approval process of government

proposals. The team implemented a powerful workflow system to manage

the whole process. Unfortunately, the end users for the system wereaerospace engineers who referred to work in a more casual, ad hoc

fashion. They dubbed the system Naziware and refused to use it. This

example illustrates an IT project that wasted millions of dollars developing

a system that was not in touch with the way end users did their work.

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Time Management

This Project Time Management Processdescribes how to monitor and control time

spent within a project and required toensure timely completion of the project

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Project Time Processes

Defining activities involves identifying the specific activities that theproject team members and stakeholders must perform to produce theproject deliverable.

Sequencing activities involves identifying and documenting therelationships between project activities.

Estimating activity resources involves estimating how many resourcespeople, equipment, and materials a project team should use to performactivities.

Estimating activity durations involves estimating the number of workperiods that are needed to complete individual activities.

Developing the schedule involves analyzing activity sequences, activityresource estimates, and activity duration estimates to create the projectschedule.

Controlling the schedule involves controlling and managing changes to theproject schedule.

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Table of Processes

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Cost Management

It includes the project processesrequired to ensure that a project team

completes a project within anappropriate budget.

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Cost Management Processes

Project Cost Estimation. It is the project cost management process step whenthe project manager cooperates with the financial department to estimatecosts required for purchasing all necessary good/services and undertakingnecessary activities to deliver the project.

Project Budget Determination. At this step of the project cost managementprocess, cost spreadsheets are used to develop the budget framework anddetermine the budget. The project manager can use project cost managementsoftware to work in collaboration with the financial department to determineitems of the budget and sources of funding and then to allocate the budget.

Project Spending Control. It is the step of the project cost managementprocess when the allocated budget is reviewed and spending is tracked. Theproject manager takes responsibility for control spending and to ensure thatthe budget allocation is optimized and costs are fully covered with the plannedand allocated budget.

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Table of Processes

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Case study

Many organization use IT to reduce operational costs. For example, recent

study shows that technology has decreased the cost (adjusted for

inflation) associated with processing an automated teller machine (ATM)

transaction from a financial institution:

In 1968, the average cost was $5

In 1978, the cost went down to $1.50

In 1988, the cost was just a nickel

In 1998, it only cost a penny

In 2008, the cost was just half a penny

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Quality Management

The purpose of the project qualitymanagement is to ensure that the

project will satisfy the needs for whichit was undertaken.

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Quality Management Processes

Planning quality includes identifying which quality are relevant to the

project and how to satisfy those standards.

Performing quality assurance involves periodically evaluation overall

project performance to ensure that the project will satisfy the relevant

quality standards

Performing quality control involves monitoring specific project results to

ensure that they comply with the relevant quality standards while

identifying ways to improve overall quality.

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Table of Processes

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Human Resource Management

Human Resource Management (HRM) is thefunction within an organization that focuses

on recruitment, management, and providingdirection for the people who work in theorganization.

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Communication Management

Project communication management plays a key role in

keeping all members of the project management team on

the same page. Without communication among all team

members and project stakeholders there can be a

breakdown in processes which could have a negative impact

on the final product.

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Risk Management

Project risk management is an important aspects of project

management. A risk is something that may happen and if it

does, will have a positive or negative impact on the project.

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Procurement Management

This

Procurement Management

process will help you to purchase goods and services from

external suppliers. It gives you a completeprocurementprocess andprocurement procedures, which explain step-

by-step, how to purchase from suppliers.

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Case Study

KPMG, a large consulting firm, published a studyin 1995 that found that 55% of runaway projectsdid (projects with significant cost or scheduleoverruns) did no risk management at all, that

38% did some (but half did not use their riskfindings after the project was underway), andthat 17% did not know whether they did riskmanagement or not. This study suggests that

performing risk management is important toimproving the likelihood of project success andpreventing runaway projects