Introduction to Project Management 1-1

PROJECT
MANAGEMENT

2011
1
Michael Porters frame work market
environment
1. Barrier to entry in the industry
2. Threat of substitute product
3. Buyer power
4. Supplier power
5. Degree of competitors rivalry

5
What exactly is a project?
PM 1 Im in charge of the construction of a retail development in the centre
of a large town. There are 26 retail units and a super market in the complex.
My main responsibilities are to co-ordinate the work of the various contractors
to ensure that the project is completed to specification, within budget and on
time.
PM 2 I am directing a team of research scientists. We are running trials on a
new analgesic drug on behalf of a pharmaceutical company. It is my
responsibility to design the experiments and make sure that proper scientific
and legal procedures are followed, so that our results can be subjected to
independent statistical analysis.
PM 3- The international aid agency which employs me is sending me to New
Delhi to organize the introduction of multimedia resources at a teachers
training college. My role is quite complex. I have to make sure that appropriate
resources are purchased- and in some cases developed within the college. I
also have to encourage the acceptance of these resources by lecturers and
students within the college.
6
PM 2 I am directing a team of research scientists. We are running trials on a new
analgesic drug on behalf of a pharmaceutical company. It is my responsibility to design
the experiments and make sure that proper scientific and legal procedures are
followed, so that our results can be subjected to independent statistical analysis.
PM 3- The international aid agency which employs me is sending me to New Delhi to
organize the introduction of multimedia resources at a teachers training college. My
role is quite complex. I have to make sure that appropriate resources are purchased-
and in some cases developed within the college. I also have to encourage the
acceptance of these resources by lecturers and students within the college.
PM 1 Im in charge of the construction of a retail development in the centre of a large
town. There are 26 retail units and a super market in the complex. My main
responsibilities are to co-ordinate the work of the various contractors to ensure that the
project is completed to specification, within budget and on time.
Project is not defined by the type of outcome it is set up to achieve
Some of the well known
projects


Grate pyramids of Egypt
Pacific Railroad
Hoover Dam
Manhattan Project
Space program
Some of the well known projects










S O ME P R O J E CT S

what is a project

A Project is a temporary endeavor undertaken to create a
unique product, service, or result``.
Project Attributes
A project has a unique purpose
A Project is temporary
A Project requires resources
A Project should have a primary customer or sponsor
A project involves uncertainty






PROJECT ATTRIBUTES

a) A project has a unique purpose
Every project should have a well defined objectives
since a project exist to achieve some specific
outcomes. For example: To improve a business
process, create a specific product or achieve a
specific skill.
The purpose of a project is defined by the project
requirements.
b) A Project is temporary
A project should have limited time spans: That is,
a project has a start date and a deadline date (End
date) for completion.






PROJECT ATTRIBUTES

c) Projects are often defined broadly when they begin,
and as time passes. The specific details of the
project become clearer. A project team should
develop initial plans and then update them with
more detail based on new information.
d) A Project requires resources,
Resources include people, machinery, budget and
other assets. Resources however, are limited and
must be used effectively to meet project and other
corporate goals.








PROJECT ATTRIBUTES

e) A Project should have a primary customer or
sponsor.
A sponsor usually provides the direction and
funding for the project. (Project Sponsor role is different from the Project
Stakeholders )
f) A Project involves uncertainty
Because every project is unique, it is sometimes
difficult to define its objectives clearly, estimate how
long it will take to complete, or determine how much
it will cost. External factors also cause project
uncertainty.
The uncertainty is one of the main reason Project
Management is so challenging especially on projects
involving new technologies.





Four different types
of projects . . .
Shaft sinking at an Australian nickel mine
1 Civil or chemical engineering and
construction projects
- construction
- land reclamation
- tunnels and bridges
- mining and quarrying
- petrochemical plant
- oil and gas
2 Manufacturing projects
(the outcome is a product)
- new product development
- equipment manufacture
- shipbuilding
- heavy engineering
- aircraft construction
- pharmaceuticals
- food processing
Ingersoll milling machine
3 Management projects
(often in-house)

- organize an exhibition or stage
play
- relocate a company
- quality improvement project
- marketing project
- new production or IT facility
- disaster recovery
4 Projects for pure scientific research
- high risk of failure
- also possibility of high rewards
- possible public apprehension
- outcome often unpredictable
What is Project Management
1-18
Project management is the application of knowledge,
skills, tools and techniques to project activities to meet
project requirements.

Project managers must not only strive to meet specific
scopes, time, cost, and quality goals of projects they must
also facilitate the entire process to meet the needs and
expectations of the people involved in or affected i.e.
`Stakeholders` by project activities.




The Triple Constraints Of Project Management
Every project is constrained in different ways by its:
Scope goals: What work will be done as part of the project?
Time goals: How long should it take to complete?
Cost goals: What should it cost to complete the project ?
These limitations are sometimes referred to as the Triple
Constraints.
It is the Project Managers duty to balance these three
often-competing goals in order to create a successful
project.






The Triple Constraint
of Project Management
20

The Triple Constraints
OF Project Management

.
Managing the triple constraints involves making trade-offs between
scope, time, and cost goals for a project.
For example, you might need to increase the Budget for a project to meet
Scope and Time goals.
You might have to reduce the Scope of a project to meet Time and Cost
(Budget) goal.
Experienced project managers know that you must decide which aspect
of the triple constraint is most important.
If Time is most important : Most often the initial project scope and/or Cost
goals need to be changed to meet the project schedule..
If Scope goals are most important, then the time and /or Cost goals need to be
adjusted







The Triple Constraints
Of Project Management


The Triple Constraint describes how the basic elements of
a project i.e. Scope, Time and cost interrelate. However
there are other elements such a : Quality, Customer
satisfaction and Sponsor satisfaction that can also play
significant roles.
The Quadruple Constrains of Project Management
which includes `Quality` as well as Scope, Time, and Cost
is also gaining acceptance in the project management.





The Quadruple Constrains
of Project Management
1-23
Project Management
Framework
1-24
Key Project Management
Framework Elements
1-25
The key elements of Project management framework
include:

Project Stakeholders
Project Management Knowledge areas
Project Management Tools and Techniques
Contribution of Successful Projects to the Enterprise
Key Project Management
Framework Elements
a) Project Stakeholders
Stakeholders are the people involved in or affected by project
activities and include the :
Project sponsor,
Project team,
Project Support staff,
Customers
Users,
Suppliers
Opponents of the project
The Stakeholders often have very interests. Stakeholders` needs and
expectations are important in the beginning and throughout the life of a
project.
Successful Project managers should develop good relationships with
stakeholders to understand their needs and expectations.
.

Key Project Management
Framework Elements
b) Project Management Knowledge Areas.

Knowledge areas describe the key competencies that
project managers must develop.
Project Managers must have knowledge and skills in both the Four
Core Knowledge areas as well as in the four Facilitating
Knowledge areas plus in the Overarching knowledge area.

The Four Core Knowledge Areas that lead to specific
project objectives are:

1. Scope management
2. Time management
3. Cost management,
4. Quality Management.



Key Project Management
Framework Elements
1) Scope Management
Project Scope management involves defining and managing all the
work required to complete the project successfully.

2) Time Management
Includes estimating how long it will take to complete the work,
developing and acceptable project schedules , and ensuring timely
completion of the project.

3) Cost Management
Consists of preparing and managing the budget for the project

4) Quality Management
Ensures that the project will satisfy the stated or implied needs for
which it was undertaken.



Key Project Management
Framework Elements
b) Project Management Knowledge Areas.

The Four Facilitating Knowledge Areas are the means
through which the project objectives are achieved :

1. Human Resources Management,
2. Communication Management,
3. Risk Management,
4. Procurement Management.
Plus
Project Integration Management,
(the ninth knowledge area which is an overarching area that
affects and is affected by all of the other knowledge areas.


Key Project Management
Framework Elements
1. Project Human Resources Management
Is concerned with making effective use of people involved with the
project.

2. Project Communication Management
Involves generating, collecting, disseminating , and storing project
information.

3. Project Risk Management
Includes identifying, analyzing and responding to the risk related to
project

4. Project Procurement Management
Involves acquiring or procuring goods and services for a project from
outside the performing organization.



Project Management Tools and
Techniques
1-31
Project Management Tools and Techniques assist
project managers and their teams in various aspects
of project management.

Specific tools and techniques include:
Project charters, Scope statements, and WBS (For scope
Mgmt).
Gantt charts, Network diagrams, Critical Path Analyses,
Critical Chain Scheduling (For Time Management area).
Cost estimates and earned value management (For Cost
Management area)

There are other tools used specifically in different Knowledge
areas,.

Sample Gantt Chart
32
The WBS is shown on the left, and each tasks start and finish dates
are shown on the right. Early Gantt charts were drawn by hand.
Work Breakdown Structure (WBS)
Sample Network Diagram
33
Each box is a project task from the WBS. Arrows show Dependencies
between tasks. The bolded tasks are on the critical path. If any task on the critical path
takes longer to complete than planned, the whole project will slip unless something is done.
Project Success Factors
34
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,
e.g. Milestones,
proper planning,
competent staff,
ownership.

Job Functions of Project Management
35
Define scope of project.
Identify stakeholders, decision-
makers, and escalation
procedures.
Develop detailed task list (work
Breakdown Structures).
Estimate time requirements.
Develop initial project
management flow chart.
Identify required resources and
budget.


Evaluate project requirements.
Identify and evaluate risks.
Prepare contingency plan.
Identify interdependencies.
Identify and track critical
milestones.
Participate in project phase
review.
Secure needed resources.
Manage the change control
process.
Report project status.
.
Managerial Knowledge and Skills For
Project Managers
36
Financial Management
Accounting
Procurement
Sales
Marketing
Contracts
Manufacturing
Distribution
Logistics
Supply Chain


Strategic Planning
Tactical Planning
Operational Planning
Organizational Structure and
behavior
Personnel Administration
Compensations
Benefits
Career Path
Health and safety procedures.


Project Managers Skills
Summary
1-37
Soft skills:

Leadership (Set examples, provide
vision (big picture), delegate, positive,
energetic)
Team building (Show empathy,
motivate, promote esprit de corps)
Negotiation
Conflict management
Organization for self and
others (Plan, set goals, analyze).
Communication both oral and
written to both technical and non-
technical audiences
Change management
Active listening
Coping Skills (Flexible, creative,
patient, persistent).

Technical Skills:

Project Management
software
Level of understanding of the
technology being used in the
project
Basic knowledge of the
business
Cost estimating and
budgeting

Ten Most Important Skills
For Project Managers
38
Project management experts from various industries were asked to
identify the ten most important skills for effective Project Managers in
a recent study.

1. People skills
2. Leadership
3. Listening
4. Integrity, ethical behavior, consistent
5. Strong at building trust
6. Strong at building teams
7. Verbal communication
8. Conflict resolution, conflict management
9. Critical thinking. Problem solving
10. Understands, Balances priorities
Advantages of Using Formal
Project Management Practices
1-39
Improvement in customer satisfaction
Better cost performance, higher Return On Investment (ROI)
Better schedule performance, allocation of time commitments,
and utilization of resources, higher productivity
Increased quality and thus reducing re-work
Increase in delivering required features
Will make everyone happier (stakeholders, team members,
management )
The Project Management
Profession
40
Project Management Institute (PMI) is an international
professional society for Project Managers.

The members of PMI are from different fields such as
Engineering, Financial Services, Health care etc.
However a large percentage of PMI members work in
IT field.
Project Management research and certification
programs continue to grow.
Project Management Certification
41
PMI provides certification as a Project Management
Professional (PMP).

A Project Management Professional is someone who has
documented sufficient project experience and education, agreed to
follow the PMI code of professional conduct (ethics), and
demonstrated knowledge of the field of project management by
passing a comprehensive examination.

Many employers today require specific certifications to ensure their
workers have current skills, and job seekers find that they often
have an advantage when they earn and maintain marketable
certifications.

According to a recent survey, average salary for workers in project
management were among the highest for all IT specialists. IT
Workers with a PMP certification earn amongs the highest salaries
for all IT workers who held professional certifications.
Project Life Cycle

Phases of the Project Life Cycle 1
The first phase involves the identification of a
need, problem, or opportunity.
The need and requirements are usually written by the
customer into a document called a request for proposal
(RFP).
Phases of the Project Life Cycle 2
The second phase is the development of a
proposed solution to the need or problem.
This phase results in the submission of a proposal.
The customer and the winning contractor negotiate
and sign a contract (agreement).
Phases of the Project Life Cycle 3
The third phase is performing the project.
Different types of resources are utilized
Results in the accomplishment of the project
objective
Phases of the Project Life Cycle 4
The final phase is terminating the project.
Perform close-out activities
Evaluate performance
Invite customer feedback
Project Life Cycle
5. Requirements
Project Management Maturity
Why Project Management?
Organizations face new challenges
as their surrounding changes.
Organizations are required to have
the flexibility to achieve strategic
goals.
Successful organizations will be
those that manage their projects
most effectively.
Organizational Project
Management Performance
Project management maturity is a
widely accepted term when
discussing the extent that an
organization has adopted project
management processes.
PM Maturity can be identified
through key project related areas
(i.e organizational structure,
processes, etc).
The Benefits Of Being Mature!
Manage all projects undertaken
effectively.
Continually improve the
performance of all projects
undertaken.
Create an organization-wide ability
for managing projects.
Define roles and responsibilities for
carrying out all project-related
activities.
Achieve strategic goals.
Existing PM Maturity Models
The PM Solutions Project
Management Maturity Model.
The Project Management Maturity
Model (ProMMM).
The Berkley PM Process Maturity
Model
The Project Management Process
Maturity (PM)2 model.
The OPM3.
Kerzner Project Management Maturity
Model (PMMM).
Traditional PM Maturity Model Structure
Most PM Maturity
Models influenced by
the SEI-CMM.
PM Maturity is ranked
into 1 of 5 maturity
levels.

Integrated multi-project
Planning and Control
Ad-hoc
Level1
Planned
Level 2
Managed
Level 3
Integrated
Level 4
Sustained
Level 5
Basic PM Processes
Individual Project
Planning
Systematic Project
Planning and Control
Continuous PM
Process Improvement
PM Maturity Model Assessment.
No PM maturity model has been adopted as the
preferred model.
A number of key similarities and differences were
observed between the PM Maturity Models
analysed.
Of note, the incorporation of benchmarking
activities were limited to the PMMM and the
OPM3.
The PM-MBM structure
Accidental
Stage
Level 1
Continuous
Improvement
Stage
Level 5
Integrated
Stage
Level 4
Deliberate
Stage
Level 3
Informal
Stage
Level 2
Internal Performance
Benchmarking
Generic
Performance
Benchmarking
Internal Process
Benchmarking
Generic Process
Benchmarking
The PM-MBM Continuous PM
Process Improvement Cycle


1.
Planning

5. Review
4.
Implement
change
3. Data
evaluation

2. Data
collection

Level 1

Level 2
Continuous Improvement Cycle

Internal PM
performance/
process
Benchmarking
Singular Project
Management
Processes

Continuous
Improvement

Level 3


Level 4/5
External PM
performance/ process
benchmarking
Improved PM
Performance
Consistent PM
Performance
PM-MBM Maturity Assessment
To support and validate the ability of the PM-MBM
to assess an organization maturity level,
additional research was conducted.
The individual project management maturity
levels of the five subsidiary organizations was
assessed.