concepts of project management_2

7/31/2019 Concepts of Project Management_2

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Concept of Project

Lecture 1


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What is a Project?

Characteristics Projects versus Operational Work

Projects and Strategic Planning

*** PMBOK A Guide to the Project

Management Body of Knowledge


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What is a Project?

Characteristics A project is a unique endeavor to produce a

set of deliverables within clearly specifiedconstraints of time, cost and quality

Projects are different from businessoperations, in terms of uniqueness,

timescale, budget, resources, risk andchange.


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What is a Project?

Characteristics Uniqueness . Every project is different from the last, whereas

operational activities typically involve repetitive (if notidentical) processes.

Timescale . A project has clearly specified start and end dateswithin which deliverables are produced to meet the customer'srequirements.

Budget . A project has a maximum limit to the expenditurewithin which the deliverables must be produced, to meet thecustomer's requirement.

Resources . A project is allocated a specified amount of labor,equipment and materials at the start. Risk . A project entails uncertainty and therefore carries

business risk. Change . The purpose of a project is typically to improve an

organization through the implementation of business change.


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Project versus Operational (1)

Usually share similar characteristics Performed by people

Constrained by limited resources Planned, executed and controlled

Unlike operational which is ongoing

and repetitive, projects are temporaryand unique


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Unique endeavor Produce a set of deliverables

Clearly specified constraints Scope Time

Cost Quality


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Are unique in nature No repetitive processes Different from last project

Have defined timescales Clear start and end dates Meet specified customer requirement

Have approved budget allocated level of financial expenditure Meet specified customer requirement


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Project versus Operational (4) Have limited resources

labor equipment

Materials Involve an element of risk level of uncertainty carry business risk

Achieve beneficial change Improve an organization Implementation of business change


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Project versus Strategic Planning

Usually organized to address areas beyond anorganization's operational limits

Utilized as a means to achieve an organization'sstrategic plans

Usually authorized as a result or to meet thefollowing strategic considerations

Market Demand Organizational Need Customer Request Technological Advance A Legal or Regulatory Requirement


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Concept of Project

ManagementLecture 2


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Why adopt a Project ManagementMethodology?

Without using a methodology from the outset:

Project Teams start building deliverables without definingthe project's scope and objective

Project roles and responsibilities are unclear, and linesof communications are undefine

There are no quality targets set, so it's difficult to knowwhen deliverables are really finished

The customer can never be certain of the project'sprogress or when it is likely to be complete Project Managers must attempt to manage change, risks

and issues "on the fly".


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Why adopt a Project ManagementMethodology?

By using best practice project management methodology, you will:

Reduce time spent completing project deliverables Decrease cost by saving time and effort to build deliverables Minimize change , risks and issues by defining your project properly

before you begin Assure quality of deliverables, increasing your likely of meeting the

customer's requirements Monitor and control the project more efficiently, especially during

the Execution phase Manage suppliers more effectively with comprehensive supplier

contracts Improve staff performance by clarifying roles, responsibilities and

delivery expectations Increase the likelihood of overall projectsuccess .


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What is Project Management?

Required Skills

Tools Processes

Undertake a Project successfully


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What is Project Management? (1)(Formal Definitions)

PMBOK "The PMBOK is the sum of knowledge within theprofession of project management that is standardizedby ISO.

P RINCE2"The planning, monitoring and control of all aspects of the project and the motivation of all those involved in it toachieve the project objectives on time and to thespecified cost, quality and performance.

PROJECT A temporary endeavour with a finite completion dateundertaken to create a unique product or service.Projects bring form or function to ideas or needs.


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What is Project Management? (2)(Formal Definitions)

DIN 69901"Project management is the complete set of tasks, techniques, tools applied during project

execution ISO 10006:2003

"Planning, organizing, monitoring, controlling andreporting of all aspects of a project and themotivation of all those involved in it to achievethe project objectives."


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Aspects of Project Management

Skills Tools

Processes


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Aspects of Project ManagementSkills

Specialist knowledge Skills

Experience


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Aspects of Project ManagementTools

Various types of tools Specialized methodologies Computer hardware and software Monitoring and Measuring Equipment Documentation systems

Examples Document templates Records register Planning software Audit checklist Review forms


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Aspects of Project ManagementProcesses

Management techniques and processes to monitorand control

Time Cost

Quality Scope Examples

Time management Cost management Change management Risk management Issue Management


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Knowledge Areas in ProjectManagement (1)

Project Integration Management Chartering Scoping Project Plan Execution Monitoring and Control Change Control Closure

Project Scope Management Planning

Scope Definition Work Breakdown Structure Scope Control


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Project Time Management Sequencing Resource and Duration Estimating Schedule Development and Control

Project Cost Management Estimating Budgeting Control

Project Quality Management Quality Planning Quality Assurance and Control


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Project Time Management Sequencing Resource and Duration Estimating Schedule Development and Control

Project Cost Management Estimating Budgeting Control

Project Quality Management Quality Planning Quality Assurance and Control


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Project Procurement Management Plan Purchase and Acquisition

Supplier Selection Contract Administration and Closure


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Project Management Triangle

Time Cost Scope


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Concept of the Triple Constraint

All project need to be performed and delivered undercertain constraints

These are scope, time and Cost Known as the "Project Management Triangle" These factors are interdependent and changes

in one affects the other factors These factors directly affect the "fourth constraint"

which is quality Sometimes, "Labor" replaces the "Scope"

constraint in some Project Management models


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Concept of the Triple ConstraintTime

The time-related processes aim to determine dependencies and the duration of activities and to ensure timely completion of the project.

The time-related processes are: - Planning of activity dependencies - Estimation of duration - Schedule of development - Schedule control

addresses the issues of overtime and delays


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Concept of the Triple ConstraintCost

The cost-related processes aim to forecast and manage the project costs. This should ensure that the project is completed within budget constraints, and that cost information can be provided to the originating organization.

The cost-related processes are: - Cost estimation - Budgeting

- Cost control

addresses the issues of over costs and deficits


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Concept of the Triple ConstraintScope

Overall definition of what is to beaccomplished

Specific description of the end results(e.g. quality) Sometimes, replaced or synonymous

with Specification.addresses the issues of scope creep

and under scope


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Project Management Activities (1)

Analysis and design of objectives and events Planning the work according to the objectives Assessing and controlling risk (or Risk Management) Estimating resources Allocation of resources Organizing the work Acquiring human and material resources Assigning tasks Directing activities Controlling project execution Tracking and reporting progress


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Project Management Activities (2)

Analyzing the results based on the facts achieved Defining the products of the project Forecasting future trends in the project Quality Management Issues management Issue solving Defect prevention Identifying, managing & controlling changes Project closure (and project debrief) Communicating to stakeholders Increasing / decreasing a company's workers


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Overall Project Objectives (1)

Overview Project objectives define targets and

performance indicators for specific target deliverables at the end of the project.


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Overall Project Objectives (1) SMA[A]RT[ER] Criteria Specific (or Significant, Stretching, Simple) Measurable (or Meaningful, Motivational, Manageable)

Achievable (or Agreed, Attainable, Assignable, Appropriate, Actionable, Action-oriented) [Acceptable] Realistic (or Relevant, Results-oriented, Resourced, Rewarding) Time-bound (or Timely, Time-Specific, Trackable) [Ethical] (or Exciting, Evaluated) [Recorded] (or Rewarding, Reviewed)


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Overall Project Objectives (2)

DUMB Criteria Doable

Understandable, Manageable Beneficial


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Usual Outputs / Deliverables (1)

Project Charter Preliminary Scope Statement / Statement of work Business case / Feasibility Study Scope Statement / Terms of reference Project management plan / Project Initiation

Document Work Breakdown Structure Change Control Plan Risk Management Plan Risk Breakdown Structure

Communications Plan Governance Model Risk Register Issue Log


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Usual Outputs / Deliverables (2)

Action Item List Resource Management Plan Project Schedule Project Status Report Responsibility assignment matrix Database of lessons learned Stakeholder Analysis Document Management


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External Factors Risk Often defined as potential points of failure Usually associated with "negative" events Can also be categorized as "positive" events (e.g. optimization risk, faster completion rates)

Customers Either internal (e.g. persons/groups in the organization) or external (e.g. customer, agencies or regulators) May dictate the time, cost and scope of the

project Area of negotiation and balancing of resources versus client requirements


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External Factors

Suppliers Either internal (e.g. persons/groups in

the organization) or external (e.g. approved supplier, client supplied) Usually a very critical area for monitoring Relationship with suppliers is usually the "key

concepts of project management_2

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