Concept of Project

Lecture 1

What is a Project?
Characteristics Projects versus Operational Work Projects and Strategic Planning *** PMBOK A Guide to the Project Management Body of Knowledge

What is a Project? Characteristics

A project is a unique endeavor to produce a set of deliverables within clearly specified constraints of time, cost and quality Projects are different from business operations, in terms of uniqueness, timescale, budget, resources, risk and change.

What is a Project? Characteristics

Uniqueness. Every project is different from the last, whereas operational activities typically involve repetitive (if not identical) processes. Timescale. A project has clearly specified start and end dates within which deliverables are produced to meet the customer's requirements. Budget. A project has a maximum limit to the expenditure within which the deliverables must be produced, to meet the customer'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.

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 temporary and unique

Project versus Operational (2)

Unique endeavor Produce a set of deliverables Clearly specified constraints Scope Time Cost Quality

Project versus Operational (3)

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

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

Project versus Strategic Planning

Usually organized to address areas beyond an organization's operational limits Utilized as a means to achieve an organization's strategic plans Usually authorized as a result or to meet the following strategic considerations Market Demand Organizational Need Customer Request Technological Advance A Legal or Regulatory Requirement

Concept of Project Management

Lecture 2

Why adopt a Project Management Methodology?

Without using a methodology from the outset: Project Teams start building deliverables without defining the project's scope and objective Project roles and responsibilities are unclear, and lines of communications are undefine There are no quality targets set, so it's difficult to know when deliverables are really finished The customer can never be certain of the project's progress or when it is likely to be complete Project Managers must attempt to manage change, risks and issues "on the fly".

Why adopt a Project Management Methodology?

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 project success.

What is Project Management?

Required Skills Tools Processes Undertake a Project successfully

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

PMBOK "The PMBOK is the sum of knowledge within the profession of project management that is standardized by ISO. PRINCE2 "The planning, monitoring and control of all aspects of the project and the motivation of all those involved in it to achieve the project objectives on time and to the specified cost, quality and performance. PROJECT A temporary endeavour with a finite completion date undertaken to create a unique product or service. Projects bring form or function to ideas or needs.

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 and reporting of all aspects of a project and the motivation of all those involved in it to achieve the project objectives."

Aspects of Project Management

Skills Tools Processes

Aspects of Project Management Skills

Specialist knowledge Skills Experience

Aspects of Project Management Tools

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

Aspects of Project Management Processes

Management techniques and processes to monitor and control Time Cost Quality Scope Examples Time management Cost management Change management Risk management Issue Management

Knowledge Areas in Project Management (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

Knowledge Areas in Project Management (2)

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

Knowledge Areas in Project Management (3)

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

Knowledge Areas in Project Management (4)

Project Procurement Management Plan Purchase and Acquisition Supplier Selection Contract Administration and Closure

Project Management Triangle

Time Cost Scope

Concept of the Triple Constraint

All project need to be performed and delivered under certain 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

Concept of the Triple Constraint Time

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

Concept of the Triple Constraint Cost

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

Concept of the Triple Constraint Scope

Overall definition of what is to be accomplished Specific description of the end results (e.g. quality) Sometimes, replaced or synonymous with Specification. addresses the issues of scope creep and under scope

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

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

Overall Project Objectives (1)

Overview Project objectives define targets and performance indicators for specific target deliverables at the end of the project.

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)

Overall Project Objectives (2)

DUMB Criteria Doable Understandable, Manageable Beneficial

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

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

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

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