pmgt401-01 introduction to project management.pdf

01

Introduction to Project Management

PMGT- 401:

Project Management

Fundamentals

PMGT- 401: Project Management Fundamentals © 2009 Bob Xourafas, P.Eng, PMP, Proprietary

01 Introduction to Project Management

01 Introduction to Project Management:Learning Objectives

By the end of this module, you will be able to:

Understand the key terms and the basic structure of

project management. The tropics that will be covered

are:

Definition of a project and its attributes/characteristics and key constraints within which a project must be managed

How a project is “born” and main ingredients for project success

Discuss the relationship between project, program, and portfolio management and the contributions they each make to enterprise success

Understand the role of the project manager, what skills they need, and what the career field is like.

Describe the project management profession, the role of professional organizations like the Project Management Institute, the importance of certification and ethics



Text Book:

Chapter 1: Introduction to Project Management

References:

PMBOK:

– Section 1.2 What is a Project

– Section 1.5 Related Endeavors

Reading Material



What does this Symbol Mean?

This slide is important.

The contents of this slide will be parts of tests/exams



Project Management Statistics

Many organizations today have a new or renewed interest in project management

The U.S. spends $2.3 trillion on projects every year, or one-quarter of its gross domestic product, and the world as a whole spends nearly $10 trillion of its $40.7 gross product on projects of all kinds

More than sixteen million people regard project management as their profession. In 2005, the total compensation for the average senior project manager was $99,183 per year in the United States, $94,646 in Australia, and $106,374 in the United Kingdom

Worldwide IT spending totaled more than $1.8 trillion in 2005, a 6 percent increase from 2004, and spending is projected to grow 8 percent in 2006 and 4 percent in 2007

Famous business authors and consultants are stressing the importance of project management. As Tom Peters writes in his book, Reinventing Work: the Project 50, “To win today you must master the art of the project!”



Benefits of Project Management

• The ultimate benefit of implementing project management techniques is having a satisfied customer.

• Completing the full project scope in a quality manner, on time, and within budget provides a great feeling of satisfaction.

• It could lead to additional business.

• Successful projects can expand your career opportunities.

• You feel the satisfaction of being on a winning team.

• Through the project you expand your knowledge, enhance your skills, and prepare for more complicated projects.

• When projects are successful, everybody wins!



The Project Management Profession

• The profession of project management is growing at a very rapid pace

• It is helpful to understand the history of the field, the role of professional societies like the Project Management Institute, and the growth in project management software



PMI-Project Management Institute

PMI is an international organization focusing on the needs of project management professionals worldwide. Its membership consists of more than 200,000 professionals, representing 125 countries. PMI professionals come from virtually every major industry.

http://www.pmi.org

PMI is the world’s leading publisher of project management books, training tools, and learning products. Over 1,000 titles are currently available from our online bookstore. PMI also publishes three periodicals for the benefit of our members

PM Network® – a monthly professional magazine

Project Management Journal® – a quarterly professional journal.

PMI Today® – the monthly newsletter of PMI



Project Management Knowledge Continues to Grow and Mature

• There are specific interest groups in many areas like engineering, financial services, health care, IT, etc.

• Project management research and certification programs continue to grow

• PMI hosted their first research conference in June 2000 in Paris, France, and the second one in Seattle in July 2002

• The PMBOK® Guide is an ANSI standard

• PMI’s certification department earned ISO 9000 certification

• Hundreds of new books, articles, and presentations related to project management have been written in recent years



Project Management Certification

PMI provides certification as a Project Management Professional (PMP)

A PMP has documented sufficient project experience, agreed to follow a code of ethics, and has passed the PMP exam

The number of people earning PMP certification is increasing quickly

PMI and other organizations are offering new certification programs (see Appendix B of the text)

The PMI boasts a worldwide membership of more than 220,000, with members from 150 different countries.



Growth in PMP Certification, 1993-2006



Why Become PMP Certified?

Local PMI chapters meet regularly and allow project managers to exchange information and learn about new tools and techniques of project management or new ways to use established techniques. I encourage you to join a local chapter and get to know other professionals in your field.

The following benefits are associated with becoming PMP certified:

It demonstrates proof of professional achievement.

It increases your marketability.

It provides greater opportunity for advancement in your field.

It raises customer confidence in you and in your company’s services.



Ethics in Project Management

Ethics, loosely defined, is a set of principles that guide our decision making based on personal values of what is “right” and “wrong”

Project managers often face ethical dilemmas

In order to earn PMP certification, applicants must agree to PMI’s Code of Ethics and Professional Conduct

Several questions on the PMP exam are related to professional responsibility, including ethics



What is PMBOK?

In short, PMBOK is guide that consists of a set of tools

recognized by the American National Standards Institute

(ANSI) to manage projects. PMBOK provides basic

references, terms, skills and techniques for project

management

What is PMBOK’s purpose?The primary purpose of the Project Management Body of

Knowledge (PMBOK) material is to identify practices in

project management that are generally recognized as

good practices.

PMBOK- Project Management Body of Knowledge



Can you name a few projects?-Class Discussion

• Planning a wedding

• Designing and implementing a computer system

• Hosting a holiday party

• Designing and producing a brochure

• Executing an environmental clean-up of a contaminated site

• Holding a high school reunion

• Performing a series of surgeries on an accident victim

What are some of the project attributes?



What is a Project?Class Discussion

What is a “project”?

identify projects you have been involved

what were the objective, the constraints, the schedule, the resources were used?

can you identify any project managers in the real world?

discuss something you did during the past summer or winter break, such as take a vacation, etc.

how those activities relate to project management.



What is a project?

A project is a temporary endeavor undertaken to create unique product or service

• Attributes of projects:

• Temporary: Projects have a definite beginning and end, not an on-going effort. Projects end when the project objectiveshave been attained or when it becomes clear that the project objectives will not or cannot be met, or the need for the project no longer exists and the project is terminated.

• Unique: Projects involve doing something that has not been done before and which is, therefore, unique. i.e., they are different in some distinguishing way from all other projects. Because they are temporary and unique, their characteristics are progressively elaborated.

• Progressively Elaborated: Progressively means “proceeding in steps; continuing steadily by increments”. Elaborated means “worked out with care and detail; developed thoroughly”.



Other Project Characteristics

Well Define Objectives (expected result or product).

The objective of a project is usually defined in terms of scope, schedule, and cost.

It is also expected that the scope will be accomplished in a quality manner and to the customer’s satisfaction.

Series of interdependent tasks

A project is carried out through a series of interdependent tasks in a certain sequence (logic) in order to achieve the project objective.

Requires resources, often from various areas.

Resources to carry out the tasks can be internal or external to an organization and they can be provided from organizations the project manager has very little influence/control.

Has customers/sponsors/stakeholders

Persons whose interests may be positively or negatively impacted by the project

Involves uncertainty

Because each project is unique, it is sometimes difficult to define clearly the project objectives, estimate, time, quality, etc.



Other Project Characteristics

• Projects are multidisciplinary

• They require input from people with different kinds of knowledge and expertise.

• Projects are complex

• They are composed of many interconnected elements and require inputs from groups outside the project.

• Projects are characterized by conflict

• Scope, schedule and estimate are conflicting with each other.

• The needs of various stakeholders conflict with each other.

• Some of the most intense and intractable conflicts are those between members of the project team.

• Projects do not exist in isolation.

• They are often parts of other entities or programs.



The Triple Constraint of Project Management

The successful accomplishment of the project objective is usually constrained by three factors: scope, cost, and schedule. A fourth factor is the customer satisfaction

Scope is all the work that must be done to satisfy the customer that the deliverables (the tangible product or items to be provided) meet the requirements or acceptance criteria agreed upon at the onset of the project.

• Schedule specifies when each activity should start and finish. The project objective usually states the time by which the project scope must be completed in terms of a specific date agreed upon by the customer and the project.

• Customer satisfaction is based on a set of criteria agreed upon with the customer. To help the achievement of this objective, it is important to develop the criteria before the start of the project execution, usually at the planning stage of the project lifecycle.

Scope

Cost Schedule

Customer

Satisfaction



Customer Satisfaction

• Today, customers expect projects not only will be delivered:

• On time, on budget, on schedule and with the agreed quality

• BUT ALSO THEY EXPECT:

• The projects will be managed with sound project management practices

• Projects will be delivered with minimum disruption to their business.

• Projects will add value to their business by bringing innovative ideas and solutions



Customer Satisfaction Criteria-Example

Satisfaction Criteria Weight

(1–5)

Score1

(1–5) 1. How well do we demonstrate expertise and bring innovative ideas to your organization? This includes how well do we understand

your industry and provide you with industry expertise.

2. How well our technical knowledge meet your expectations? 3. How well did the quality of deliverables meet your expectations? 4. How well does the project meet your expectations regarding dates accepted and agreed to by both parties regarding key events and

deliverables?

5. How do you rate project’s performance on staying within the budget, as well as getting your agreement on revisions to the budget? 6. How do you rate the project’s ability to listen and communicate effectively? 7. How do you rate our responsiveness? Are request acknowledged, understood and acted upon appropriately? 8. How well does the project anticipate your needs and provide value-added suggestions? 9. How effectively does project explain their work and transfer knowledge to your staff? 10. How well does the project staff meet your standards of reliability, integrity, and appearance? Do they show a sincere interest in your

company while keeping your needs and objectives in mind at all times?

11. How do you rate the project’s ability to work effectively with your staff while demonstrating an understanding of your culture? 12. How well did the project execute their assignments with an appropriate level of managerial attention from you? 13. Does the project deliver effective and efficient results? 14. How well do the project deliverables comply with your predefined technical standards? 15. For IT projects, how closely did the count approved functionality meet the released functionality? 1 1 = very dissatisfied, 2 = dissatisfied, 3 = satisfied, 4 = very satisfied, 5 = WOW



Unforeseen Circumstances-Class Discussion

• Once a project is started, unforeseen circumstances may impact the project in various ways such as scope, cost, or schedule.

• Can you name a few unforeseen events? What should the manager do in such cases?

• Prevent, anticipate, and/or overcome such circumstances in order to complete the project scope on schedule, on budget, and to the customer’s satisfaction.

• Good planning and communication are essential to prevent problems from occurring and to minimize their impact.

• Ultimately, the responsibility of the project manager is to make sure the customer is satisfied. This goes beyond just completing the project scope within budget and on schedule. It requires ongoing communication with the customer.

Before taking any action:Analyze and understand the unforeseen event and determine its impact on the project.Use the agreed change control process to obtain approval prior toimplementing any changes.



• Sources of projects can be:

• Market Demand

• Business need

• Customer request

• Technological advance

• Legal requirement

• Social need

How Projects are “Born”

• Projects are “born” when a need is identified by the customer



Ways the Work of Project Management is Organized

• An organization typically exists to meet the present and future needs of its customers.

• Organizations develop strategic plans and business directions/goals in order to meet the future needs of their customers as well as stay competitive in the market place.

• Every project undertaken by the organization should add value to the organizations’ strategic plan/direction otherwise the organization’s resources are poorly used and the project should be terminated.

• The process linking the various projects directly to the goals and strategy of the organization is called Project Portfolio Management Process (PPMP).

• Through the PPMP many project portfolios can exist within an organization each linked to the strategic plan.

• Several projects within a specific portfolio can be grouped together to form a program.

• There is often a hierarchy of strategic plan, program, project, and subproject, in which a program consisting of several associated projects will contribute to the achievement of a strategic plan.



Traditional Strategic Planning Model

Gathering

of

Information

External Analysis Internal Analysis

Gathering

of

Information

Environmental

Opportunities

And Threats

Organizational

Strengths &

Weaknesses

Evaluation

of

Information

Firm’s

Social

Responsibility

Managerial

Values of

Management

Strategy

Evaluation

Strategy

Selection

Strategy

Implementation



Strategic Selection of

Projects

Startegic Fit & Prioritazation

Preliminary Evaluation

Feasibility Study

Cost/Benefit Analysis

Identification of Projects

Identify needs & Sources of Ideas

Project Portfolio Management Process (PPMP)

Preliminary Evaluation

Feasibility Study

Cost/Benefit Analysis

PPMP



Program Structure

The hierarchy structure consists of Strategic Plan, Portfolio, Program, Project and Subproject

Several projects within a specific portfolio can be grouped together to form a program

A program is a group of projects managed in a coordinated way, to obtain benefits not available from managing them individually

Note: Many programs consist of projects as well as of ongoing operations.

Program

Project

R

Project BProject

A

Operations

M E

• Operations are ongoing and repetitive. They involve work that is continuous without an ending date, and often repeat the same processes and produce the same results. The purpose of operations is to keep the organization functioning, while the purpose of a project is to meet its goals and to conclude. Ongoing operations must not be included as part of the project.

Ongoing operations MUST NOT be included as part of the project.



Project vs. Program Managers

Project managers work with project sponsors, a project team, and other people involved in a project to meet project goals

Program managers oversee programs and often act as bosses for project managers



Program Example

Building a new shopping mall

Many projects exist underneath this program, such as excavation, construction, interior design, store placement, marketing, facilities management, and so on.

Each of the projects has its own project manager, who reports to a project manager with responsibility over several of the areas, who in turn reports to the head project manager over the entire program.

All the projects are related and are managed together so that collective benefits are realized and controls are implemented and managed in a coordinated fashion.

Sometimes programs involve aspects of ongoing operations as well. After the shopping mall in our example is built, the management of the facility becomes the ongoing operations part of this program.

The management of this collection of projects is called program management. Program management involves centrally managing and coordinating groups of related projects to meet the objectives of the program.



Project Portfolio Management

• As part of project portfolio management, organizations group and manage projects and programs as a portfolio of investments that contribute to the entire enterprise’s success

• Portfolio management encompasses managing the collections of programs and projects in the portfolio.

• Portfolio managers help their organizations make wise investment decisions by helping to select and analyze projects from a strategic perspective

• This includes weighing the value of each project, or potential project, against the portfolio’s strategic objectives. It also concerns monitoring active projects for adherence to objectives, balancing the portfolio among the other investments of the organization, and assuring the efficient use of resources.

• Portfolio management is generally performed by a senior manager in the organization.



Project Management vs.Project Portfolio Management



Portfolio Example

• Let’s say our company is in the construction business. Our organization has several business units:

• retail, single-family residential, and multifamily residential.

• All projects and programs associated with the retail business unit belong to the retail portfolio.

• The program with the building of the new mall (see program example) is one of the programs that belongs to the retail portfolio.

• Other programs and projects could be within this portfolio as well. For example, implementing a waste management system for the retail facilities.

• The objective of any program or project in the retail portfolio is to meet the strategic objectives of the portfolio, which in turn should meet the objectives of the department and ultimately the corporation.



Figure 1-4:Sample Project Portfolio Approach



What is Project Management?

Project management brings together a set of tools and techniques -performed by people- to describe, organize, and monitor the work of project activities to meet project requirements

Project managers are the people responsible for managing the project processes and applying the tools and techniques used to carry out the project activities. All projects are composed of processes, even if they employ a haphazard approach.

It is the responsibility of the project manager to ensure that project management techniques are applied and followed.

Project managers strive to meet the triple constraint by balancing project scope, time, and cost goals



Project Management Framework



Project Stakeholders

Stakeholders are the people involved in or affected by project activities

Stakeholders include:

The project sponsor

The project manager

The project team

Support staff

Customers

Users

Suppliers

Opponents to the project



Nine Project Management Knowledge Areas

• Knowledge areas describe the key competencies that project managers must develop

• Four core knowledge areas lead to specific project objectives (scope, time, cost, and quality)

• Four facilitating knowledge areas are the means through which the project objectives are achieved (human resources, communication, risk, and procurement management

• One knowledge area (project integration management) affects and is affected by all of the other knowledge areas

• All knowledge areas are important!



Best Practices

• A best practice is “an optimal way recognized by industry to achieve a stated goal or objective”-PMI

• Robert Butrick suggests that organizations need to follow basic principles of project management, including these two mentioned earlier in this chapter

• Make sure your projects are driven by your strategy; be able to demonstrate how each project you undertake fits your business strategy, and screen out unwanted projects as soon as possible

• Engage your stakeholders; ignoring stakeholders often leads to project failure

• Be sure to engage stakeholders at all stages of a project, and encourage teamwork and commitment at all times



Project Management Tools and Techniques

• Project management tools and techniques assist project managers and their teams in various aspects of project management

• Some specific ones include:

• Project charter, scope statement, and WBS (scope)

• Gantt charts, network diagrams, critical path analysis, and critical chain scheduling (time)

• Cost estimates and earned value management (cost)

• See Table 1-1 for many more



Main tools used by Project Management

Work Breakdown Structures (WBS)

• a deliverable-oriented grouping of project components that organizes and defines the total scope of the project work

Critical Path Analysis

• determines the earliest completion time of the project



Project Management Software

• There are hundreds of different products to assist inperforming project management

• Three main categories of tools

• Low-end tools: handle single or smaller projects well, cost under $200 per user

• Midrange tools: handle multiple projects and users, cost $200-600 per user, Project 2007 most popular

• High-end tools: also called enterprise project management software, often licensed on a per-user basis, like VPMi Enterprise Online (www.vcsonline.com); see front cover for trial version information

• See the Project Management Center Web site or Top Ten Reviews for links to many companies that provide project management software



Project Success

There are several ways to define project success

The project met scope, time, and cost goals

The project satisfied the customer/sponsor

The results of the project met its main objective, such as making or saving a certain amount of money, providing a good return on investment, or simply making the sponsors happy



Table 1-2: What Helps Projects Succeed?*

1. Executive support

2. User involvement

3. Experienced project manager

4. Clear business objectives

5. Minimized scope

6. Standard software infrastructure

7. Firm basic requirements

8. Formal methodology

9. Reliable estimates

10. Other criteria, such as small milestones, proper planning, competent staff, and ownership

*The Standish Group, “Extreme CHAOS,” (2001).



Skills & Competenciesfor Project Managers

Ten Most Important Skills and Competencies

1. People skills

2. Leadership

3. Listening

4. Integrity, ethical behavior, consistent

5. Strong at building trust

6. Verbal communication

7. Strong at building teams

8. Conflict resolution, conflict management

9. Critical thinking, problem solving

10.Understands, balances priorities



CoreProject Management Competencies

• Business/Organizational competencies

• Management Competencies

• Professional Project Management Competencies



Business / Organizational Competencies

• Business Literacy

• Understand contemporary business fundamentals and comprehend the business environment of the company,

• Align the project vision with the company’s business vision.

• Corporate Procedures and Tools

• Understand established policies, procedures and tools, and how to apply them to the project.

• Institutional or Corporate Culture

• recognize and understand the corporate culture and its impact on the project

• Organizational Structure

• Understand and work within the corporate organization and team culture



Management Competencies

• These are the “soft-skills” or people-oriented competencies that are required of any manager, but especially important for project managers in dealing with all project stakeholders

• Communications

• Communicate effectively using clear writing and verbal skills

• Communicate tactfully and candidly, avoid jargon

• Make stakeholders aware of all relevant issues

• Be an excellent listener.

• Issue Management

• Identify, analyze, prioritize and develop mitigation plans for issues threatening the project.

• Financial Acumen

• Comprehend how decisions affect the project’s bottom line

• Grasp general financial and accounting principles and practices that affect operations

• Appreciate and recognize the links between operations and company’s financial performance, which is essential to create value for all of the organization’s stakeholders.




• Leadership

• Motivate project team members

• Set SMART objectives

• Maintain a positive outlook

• Take responsibility

• Make decisions

• Provide constructive feedback

• Learning and Knowledge Management

• Keep abreast of technological change

• Learn from and reflect on past experience

• Ensure effective training and development of self and team members

• Find the most expedient way to develop new skills and knowledge required to undertake new projects

• Negotiations

• Undertake continual adjustments with stakeholders in a persuasive manner

• Keep the project on course by taking a integrative win/win orientation in negotiations




• Organization

• Arrange and organize assets so that needed tools, resources and data are easily accessible

• Create, organize and maintain an effective team structure

• Problem Solving & Decision Making

• Analyze and correctly define a problem

• Evaluate potential alternatives to solve the problem

• Select the optimum solution,

• Implement, monitor and control the selected solution.

• Relationship Management

• Consult and provide advice

• Facilitate discussions and resolve conflicts

• Develop positive relationships with key project stakeholders

• Recognize and impartially deal with people from other cultures

• Establish trust, credibility and earn respect

• Be willing and contented to give more than one will receive




• Strategic Thinking

• Anticipate future impact of decisions by analyzing a big-picture view

• Strategically position the project within the business to align it to the enterprise’s short and long term objectives

• Team Building

• Assemble the project team with the right mix of skills, then promote and create teamwork

• Understand and know how to share information

• Coach and mentor members as required

• Delegate responsibility, promote support and positive interaction

• Time Management

• Effectively manage competing priorities

• Be resourceful

• Use time as a valuable resource



Technical Competencies

• These are competencies required for a project manager to be accountable for and lead the project to a successful completion by satisfying customer expectations, and the implementing organization’s objectives

• Budget Planning

• Understand and know how to perform cost/benefit analyses

• Use sound rationale

• Ensure that all factors are included

• Maintain focus on budget

• Consults with client and management if estimated final costs are above budget

• Customer Focus

• Develop familiarity with and a thorough understanding of client’s needs

• Be able to satisfy realistic expectations

• Interact and reach agreements with the client from the project’s outset

• Contract/procurement Management

• Understand and know how to use purchasing procedures and tools

• Draft contracts with clear and agreed upon term and conditions

• Administer contracts to achieve successful completion




Environmental, Health and Safety

Understand and know how to comply with regulations

Implement a positive attitude toward health and safety in the design and execution of the project

Ensure safe and environmentally friendly deliverables

Hand-over management

Understand and know how to co-ordinate, implement, test and deliver a project in order to produce an effective working system or product

Information Management

Ability to manage project documentation (technical and management) and data or information requirements




• Issues/Change/Assumptions Management

• Devise and implement a change control process when needed

• Document and track issues

• Monitor assumptions and make decisions in a timely manner

• Understand and use problem-solving techniques

• Risk Management

• Understand how to identify, assess, document and manage internal and external project risks

• Develop response plans, contingencies and mitigation measures

• Project Controls and Process Management

• Understand and know how to use standard project management tools and techniques to schedule, plan, track and correct project performance

• Know how to make effective use of technical and management methodologies




• Quality Management

• Plan and implement steps to obtain and assure quality results or products for total customer satisfaction

• Be able to take corrective actions

• Effectively perform verification of project quality standards

• Resource Management

• Ability to identify and make optimal use of both human and non-human resources

• Schedule Management

• Ability to organize the work in a logical way so that it is executed effectively

• Ability to manage the schedule

• Scope Definition

• Ability to establish a clear scope and define the extend of the project

• Set up and understand verification and approval procedures.



Question and Answers

pmgt401-01 introduction to project management.pdf

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