pm chapter 01 introduction

7/27/2019 PM Chapter 01 Introduction

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Project Management(Introduction)


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Lets Get to Know Each Other


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Muhammad Shahid

M.B.A. (MIS)Institute of Business Administration

B.E. (Mech.)NED University of Engineering and Technology

MCSE (2000/2003)

MCDBA (SQL 2000)

SCJP

Work experience with

Siemens Pakistan

Novartis Pharma Pakistan Limited

Microsoft Canada

NCR Canada

Sui Southern Gas Company Limited

Email address: [email protected]

Instructors Introduction
mailto:[email protected]:[email protected]


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What is a Project?

A complex, non-routine, one-time

effort limited by time, budget,

resources and performance

specifications designed to meet

customer needs.

Keywords: (complex, non-routine, one-time, budget, resources,

performance specifications, customer needs)

A project is a temporary endeavor undertaken to create

unique product, service, or result.

Keywords: (temporary, unique product service or results)


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Major Characteristics of a Project

Temporary

An established / well defined objective

Unique Products, Services or Results

A defined life span with a beginning and an end

Usually involves several departments and

professionals (human and other resources, such

as, material, equipment, supplies, etc.)

Typically doing something that has never been

done before

Specific time, cost and performancerequirements

Progressive elaboration


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Temporary

Every project has a definite beginning and a

definite end. The end is reached when the

projects objectives have been achieved, or it

becomes clear that the projects objectives

will not or cannot be met, or the need for theproject no longer exists and the project is

terminated.


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An Established Objective

Project have a defined objective, such as

construction of a 12-story apartment

complex by December 31, 2010 or

releasing version 2.0 of a specific

software package.


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Unique Product, Service, or Results

Project creates unique deliverables, which are:

Product that is produced

Capability to perform service

Result, such as, outcomes or documents.


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A Defined Life Span with a Beginning And An End

Because there is a specific objective,

projects have a defined endpoint,

which is contrary to the ongoing duties

and responsibilities of traditional

jobs. Individuals move from one project

to the next as opposed to staying

in one job.


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Usually the Involvement of Several Departments and

Professionals

Unlike much organizational work that is

segmented according to functional

specifications, projects typically require the

combined efforts of a variety of specialists.Instead of working in separate offices under

separate managers, project participants work

closely together under the guidance of project

manager to complete the project.


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Typically Doing Something That Has Never Been Done

Before

It is not routine and involves unique

elements to some degree.

Many thousands of office buildings

have been developed, but each

individual facility is uniquedifferent

owner, different design, different

location, different contractor and so

on. The presence of repetitive

elements does not change thefundamental uniqueness of the

project work.


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Specific Time, Cost and Performance Requirements

Specific time, cost and performance requirements

bind projects. Projects are evaluated according to

accomplishment, time, and cost.

These triple constraintsimpose a higher degree of

accountability. They also highlight one of the primaryfunctions of project management, which is balancing

the trade-off between time, cost and performance

while satisfying the customer.


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Extended Concept of Triple Constraints

Cost

Time Scope

Risk Quality

Customer

Satisfaction


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Progressive Elaboration

Progressive elaboration means developing

in steps and continuing by increments.

For example, the project scope will be

broadly described early in the project and

made more explicit and detailed as the

project team develops a better and morecomplete understanding of the objectives

and deliverables.

It is not Scope Creep!!


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Examples of Projects

Developing a new product / service

Organizational restructuring

Designing a new transportation vehicle

Developing / acquiring a new information systemConstructing a building / facility

Building a water system for a community

Running a campaign for a political party

Implementing new business processes


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What is Not a Project?

Not an everyday work, routine, or repetitive work.

Ordinary daily work typically requires doing the same

or similar work over and over, while a project is done

only once at the end of which a new project / service

exists.

Operations are ongoing and repetitive while projects

are temporary and unique.

Project terminates when it attains its objectives. While

purpose of ongoing operation is to sustain business.


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Projects and Strategic Planning

Projects are utilized as a means of

achieving an organizations strategicplan.

Typically authorized as a result of one

or more of the following activities:

Market Demand

Organizational Need

Customer Request

Technological advance

Legal Requirements


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Project Management

Application of knowledge, skills, tools and techniques

that allows you to deliver projects that are:

On time On budget According to

Specifications

Project Management Method olog yis a structured

approach to projects.


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Project Management

Standish Group conducted a

study in 2004, accordingto which, only 34% of the

projects are successful.


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Project Management

Initiating (2)

Planning (21)

Executing (7)

Monitoring and Control (12)

Closing (2)

Processis a series of actions that brings about a result.

Accomplished through the application and integration

of the project management process groupsof:

Numbers in bracket represent no. of processes in

the process group


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Project Management

Managing a project includes:

Identifying requirements

Establishing clear and

achievable objectives

Balancing the competingdemands for quality,

scope, time and cost

Adapting the specifications,

plans, and approach to thedifferent concerns and

expectations of the

various stakeholders


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Project Management

ProjectManagement

Major goal is

to satisfycustomer

needs

Customer


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Project Management

Provides people with a

powerful set of tools thatimproves their ability to plan,

implement and manage

activities to accomplish

specific organizationalobjectives.

Results-oriented

management style that

places a premium onbuilding collaborative

relationships among a

diverse group of people.


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9 Knowledge Areas, 5 Process Groups and 44 Processes

Fully integrated

together for successful

Project Management

These 9 knowledge areasare applied through 5 process groups.

Structured and controlled application of knowledge areas

Scope Time Cost

QualityHuman

Resource

Commun-

ication

RiskProcure-

ment


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Process

Groups

Initiating

Planning

ExecutingControlling

Closing

Project Integration

Management

Project Scope

Management

Project Time

Management

Project Cost

Management

Project Quality

Management

Project H.R.

Management

Project Communication

Management

Project Risk

Management

Project Procurement

Management

9 G 44


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Initiating Planning Execution

Monitoring

& ControlClosing

Project Integration Management

1. Develop Project Charter x

2. Develop Preliminary Project Scope Statement x

3. Develop Project Management Plan x

4. Direct and Manage Project Execution x

5. Monitor and Control Project Work x

6. Integrated Change Control x

7. Close Project x

Scope Management

1. Scope Planning x

2. Scope Definition x

3. Create WBS x

4. Scope Verification x

5. Scope Control x

Time Management1. Activity Definition x

2. Activity Sequencing x

3. Activity Resource Estimating x

4. Activity Duration Estimating x

5. Schedule Development x

6. Schedule Control x


9 K l d A 5 P G d 44 P


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Monitoring

& ControlClosing

Cost Management

1. Cost Estimating x

2. Cost Budgeting x

3. Cost Control x

Quality Management

1. Quality Planning x

2. Perform Quality Assurance x

3. Perform Quality Control x

Project Human Resource Management

1. Human Resource Planning x

2. Acquire Project Team x

3. Develop Project Team x

4. Manage Project Team x

Project Communication Management

1. Communications Planning x

2. Information Distribution x

3. Performance Reporting x

4. Manage Stakeholders x


9 K l d A 5 P G d 44 P


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Monitoring

& ControlClosing

Project Risk Management1. Risk Management Planning x

2. Risk Identification x

3. Qualitative Risk Analysis x

4. Quantitative Risk Analysis x

5. Risk Response Planning x

6. Risk Monitoring and Control x

Project Procurement Management

1. Plan Purchase and Acquisition x

2. Plan Contracting x

3. Request Seller Response x

4. Select Seller x

5. Contract Administration x

6. Contract Closure x


P j t M t


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Project Management

Project Management appears tobe ideally suited for a business

environment requiring

accountability, flexibility,

innovation, speed, andcontinuous improvement.

Not restricted to specialists. Managing projects are

often a vital part of everyones job.

P j t P


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Project vs. Program

Similarities

Both are directed towards goals and require plans and resources to

reach their goals. Both use similar tools, methods, and policies.

Differences

Primarily lie in scope and time

horizons.

Programis a series of coordinated,

related, multiple projects that

continue over extended time intended

to achieve a goals. It is a higherlevel group of projects targeted at a

common goals.

Example:Americas space program

Program

Project

A

ProjectB

Project

X

Project

Y

P j t M


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Project Manager

Plan, schedule, motivate and control.

Project manager manages temporary, non-repetitive activities and frequently acts

independently of the formal organization.

Marshal the resources to complete a fixed-life

project on time, on budget, and withinspecifications.

Direct link to the customer and must manage

the interface between customer expectations

and what is feasible and reasonable.

Provide direction, coordination, and

integration to the project team, which is often

made up of part-time participants loyal to their

functional departments.

P j t M


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Project Manager

Responsible for performance

Ensure that appropriate trade-offs are made

between the time, cost and performance

requirements of the project.

They must orchestrate the completion of theproject by inducing the right people, at the

right time, to address the right issues and

make right decisions.

Allocation of Projects Vs Seniorit of Project Managers


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Allocation of Projects Vs. Seniority of Project Managers

Seniority Level

Junior PMs Senior PMs

Allocationof

Projects

Execution

Planning

Monitoring & Control

Initiation

Closing


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It is essential that once the project is

closing, you must have processes in place

to return the resources back to corporate

asset pool so that they can be redeployed to

other projects.

Importance of Project Management


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Importance of Project Management

An increasing percentage of the typical firms effort is being

devoted to projects.

Future promises an increase in the importance and the role of

projects in contributing to the strategic direction of the

organization.

Shortening of the project life cycle

1 3 years compared to 10 15 years, 30 years agoIn high-tech industries, 33% of product revenue share

is lost if product development is 6 months late.

Global competition

Knowledge explosion

Corporate downsizing

Increased customer focus

Rapid development of third world and closed economies

Page 711 of Gray & Larson

Project Management Trends


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Project ManagementTrends

Rapid expansion of the Project Management Institute (PMI)

International, not-for-profit group of volunteers focused on

assimilation and delivery of project management best practices

230,000 members, 251 chapters, 160,000 PMPs Certifications offered are: PMP, CAPM, PgMP, OPM3 (Accessor

and consultants)

www.pmi.org

Increased Number of Project Management Professionals (PMPs)

Specific Interest Groups (SIGs) for people in different

industries to share ideas about managing projects in their areas

of interest, such as, aerospace, automotive, con struc t ion,

engineer ing, inform ation techno logy, f inancial services,

pharmaceuticals andte lecommunicat ions.

What Do We Need to be Successful?
http://www.pmi.org/http://www.pmi.org/


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What Do We Need to be Successful?

Well defined scope

Empowered sponsor

Budget

Willcomes from the sponsor

Senior Managements approval / buy-in

An Integrative Approach to Project Management


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Integration in project management directs attention to two key areas:

Integration of projects with the strategic

plan of the organization

Integration within the process of

managing actual projects



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Integration of projects with the strategic plan of the

organization

Strategies are typically implemented through projects.

There are usually more projects proposed than there are resources

The key is selecting from the many proposals those projects

that make the largest and most balanced contribution to the

objectives and strategies and thus the customers of the organization.

This means prioritizing projects so that scarce resources are

allocated to the right project.

Once the project has been selected for implementation, the focus

switches to the project management process that sets the stage

for how the project will be implemented or delivered.



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Integration With the Process of Managing Actual Projects

There are two dimensions within the project management process.

Technical

ScopeWBS

Schedules

Resource Allocation

Baseline Budgets

Status Reports

Formal, disciplined, pure logic parts

of the process.

Science of project management

Socio-cultural

Leadership

Problem Solving

TeamworkNegotiation

Politics

Customer expectations

Creating a temporary social system

within a larger organizational

environment that combines the

talent of divergent set of professionals

working to complete the project.

Project manager must shapea culture that stimulates

teamwork.

The Art of project

management.

To be successful, you have to master both.

Area of Expertise Needed by the Project Team


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Area of Expertise Needed by the Project Team

Project

Management

Body of

Knowledge

Application AreaKnowledge,

Standards and

Regulations

Interpersonal

Skills

General

Management

Knowledge and

Skills

Understanding

Project

Environment

Functional department / supporting disciplines

Technical elements

Management specialization

Industry groups

Project life cycle definition

Five project management process groups

Nine knowledge areas

Cultural / social environment

International and political

environment

Physical environment

Financial management / accountingPurchasing / procurement

Sales / marketing

Contracts and commercial law

Manufacturing / distribution

Logistics / supply chain

Strategic / tactical / operational planning

Human resource management

Health and safety practices

Information technology

Effective communication

Influencing the organization

Leadership

Motivation

Negotiation

Conflict management

Problem solving

Project Management Context


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Project Management Context

Strategic Plan

Portfolio

Program

Project

Subproject

Group of related projects managed in a coordinated way to obtain benefits and control

not available from managing them individually.

Collection of projects or programs and other work that are grouped together

to facilitate effective management of that work to meet strategic business objectives.

Projects are frequently divided into more manageable components / subprojects,although the individual subprojects can be referred to as projects and managed as such.

Important Point


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Important Point

Principles of project management are the same, no matter your

industry or specialty. However, dont fell into the A pro ject is aproject is a pro ject!syndrome.

You will be much more successful if you actually understand the

industry in which you are practicing.

The project management team is responsible for determining what is

appropriate for any given project.

Stakeholders


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Stakeholders

Anyone who is actively involved in, is affected by, or is in a position to exert

influence on, the project.

Project Manager

Customers / Users

Performing Organization

Project Team Members

Project Management Team

Project Sponsor Influencers

PMO

Secondary Stakeholders, such as, community, government.

One of the management skills you need is to be able to develop consensus.

Another is the capacity to accept decisions that may not be to your liking.

Project manager must identify stakeholders, determine their requirements

and expectations, and, to the extent possible, manage their influence in

relation to the requirements to ensure successful project.

Stakeholders


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Stakeholders

Managing Stakeholders

Determine all the stakeholders

Determine all of their requirements and expectations

Manage and influence the stakeholders involvement.

Get them to sign off that the requirements are

finalized.

Assess their knowledge and skills.

Analyze the project to make sure their needs will be

met. Let them know what requirements will and what

requirements will not be met and why

Get and keep them involved in the project through

assigning them project work such as the role of risk

response owners

Use them as experts

Make sure the project communicates to them what

they need to know, when they need to know it

Involve them, as necessary, in change management

and approval

Involve them in the creation of lessons learned

Get their sign-off and formal acceptance during

project or project phase closing.

Stakeholders


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Stakeholders

Other Methodologies


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Other Methodologies

In the UK, the government has sponsored through the Central Computer

and Telecommunication Agency, CCTA, a set of procedures calledPRINCE, which has, after several years been revised to PRINCE 2.

CCTA is the owner of PRINCE.

PRINCE stands for PRojects INControlled Environments.

PRINCE, the earlier version, was designed primarily for IT projects,

but it soon became apparent, however, that the method was applicable

to projects outside the IT industry, and PRINCE 2 makes no specific

reference to IT development.

Other Methodologies


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Other Methodologies

BS 6079 Project Management Series

This series is aimed at providing guidance for relative newcomers to

project management and to act as a framework for more experienced

practitioners.

It will also prove useful to those who interact with project management

teams and has been specifically written with the SME (small and mediumenterprise) manager in mind.

BS 6079-1:2002Guide to Project Management

BS 6079-2:2000Vocabulary

BS 6079-3:2000Guide to Management of Business Related Project Risk

Other Methodologies


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Other Methodologies

ISO 12207

ISO 12207 differs from these in that, firstly, it is international in standing

and secondly, that it relates specifically to software development.

ISO 12207 has as the prime areas of its concern the documentation

(or software life cycle data as it is called) created and used by a

software development project and the processes that, duringdevelopment, will use and update software life cycle data.

Other Methodologies


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Other Methodologies

Select project

Select Project

Analyze project

characteristics

Identify the products

and activities

Estimate effort for

activity

Identify activity risks

Allocate resources

Review and publicize

plan

Identify project

scope and objectives

0

1 2

3

4

5

6

7

8

Allocate resources

Execute plan

10

9

Review

Lower level

detail

Feedback on last semester


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Feedback on last semester

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

1

PM Context

PM Process

Integ. Mgt.

Scope Mgt.

Time Mgt.

Cost Mgt.

Quality Mgt.

HR. Mgt.

Comm. Mgt.

Risk Mgt.Proc. Mgt.

Prof. Resp.

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