Fundamentals of Project Management
Chapter-1 From 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 enterprises 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
Process PM Group Knowledge Area 4. Project Integration Management Initiating P.G. 4.1 Develop Project Charter Planning P.G. 4.2 Develop Project Management Plan Executing P.G. 4.3 Direct & Manage Project Execution Controlling P.G. 4.4 Monitor & Control Project Work 4.5 Perform Integrated Change Control 5.4 Verify Scope 5.5 Control Scope Closing P.G. 4.6 Close Project or Phase
5. Project Scope Management
5.1 Collect Requirements 5.2 Define Scope 5.3 Create WBS 6.1 Define Activities 6.2 Sequence Activities 6.3 Estimate Activity Resources 6.4 Estimate Activity Duration 6.5 Develop Schedule 7.1 Estimate Costs 7.2 Determine Budgets
6. Project Time Management
6.6 Control Schedule
7. Project Cost Management
7.3 Control Costs
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Mapping the Processes (cont.)
PM Knowledge Area 8. Project Quality Management 9. Project Human Resource Management 10. Project Communications Management 11. Project Risk Management 10.1 Identify Stakehold er Process Group
Initiating P.G.
Planning P.G.
8.1 Plan Quality 9.1 Develop Human Resource Plan 10.2 Communications Planning 11.1 Plan Risk Management 11.2 Identify Risk 11.3 Perform Qualitative Risk Analysis 11.4 Perform Quantitative Risk Analysis 11.5 Plan Risk Responses
Executing P.G.
8.2 Perform Quality Assurance 9.2 Acquire Project Team 9.3 Develop Project Team 9.4 Manage Project Team 10.3 Information Distribution 10.4 Mange Stakeholders
Controlling P.G.
8.3 Perform Quality Control
Closi ng P.G.
10.5 Report Performance
11.6 Monitor & Control Risk
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Mapping the Processes (cont.)
PM Knowledge Area 12. Procurement Process Group Initiating P.G. Planning P.G. 12.1 Plan Procurement Executing P.G. 12.2 Conduct Procurement Controlling P.G. 12.3 Administer Procurement Closing P.G. 12.6 Close Procurement
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Why Projects?
To meet strategic business goals and objectives: Strategic opportunity Business needs Customer request Technological advance Legal requirements
What is Project Management?
Project Initiation Project Planning
[Link] aligned with organizational objectives and customer needs [Link] scope statement includes stakeholder needs and expectations [Link]-level risks, assumptions are understood [Link] identified and their needs understood [Link] charter approved 1 .Project scope agreed [Link] schedule approved [Link] budget approved [Link] team identified with roles and responsibilities agreed [Link] activities agreed [Link] management process established [Link] response plan approved [Link] change control processes defined [Link] plan approved [Link] plan approved
[Link] scope achieved [Link] stakeholders expectations managed [Link] resources managed [Link] managed against plan [Link] resources managed [Link] tracked and status communicated to stakeholders [Link] change is managed [Link] is monitored and controlled [Link] is monitored and controlled [Link] team is managed [Link] administered [Link] outcomes accepted [Link] resources released [Link] perceptions measured and analyzed [Link] formally closed
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 resources 2. Identifying & developing project management methodology, best practices and standards 3. Coaching, monitoring, training and oversight 4. Monitoring compliance project audits 5. 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 plan Identify interdependencies Identify and track critical milestones Secure needed resources, manpower Participate in project phase review Manage the change control process Report 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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