2 - 1 Lecture - 2-Introduction To PM1

PROJECT MANAGEMENT Overview and Concepts
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introduction to project management
OUT LINE FOR TODAY

What is a project? What is Project Management? The Context for Project Management The Project Management Process Knowledge areas for project
management
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Motto
Professional Project Management
makes the difference between success and failure in all our engagements
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Project Management
A project is a temporary endeavour undertaken to create a unique product or service:
Temporary means that every project has a definite beginning and a definite end. Unique means that the product or service is different in some distinguishing way from all similar products or services.
Distinguish between projects and operations: Projects are usually performed by teams:
operations are ongoing and repetitive projects are temporary and unique
clearly defined team and individual roles open and effective communications visible rewards for good performance, pressure to improve poor performance
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Operations and Projects

Operations and projects share many
characteristics:
Performed by people. Constrained by limited resources. Planned, executed, and controlled. Financial management and control Continuous manufacture Product distribution
Operations may include activities such as: Projects may include activities such as:
Developing a new product or service. Effecting a change in structure, staffing, or style of an organization. Developing or acquiring a new or modified information system.
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Projects are Temporary

Temporary means that every project has a
definite beginning and a definite end. The end is reached:
Temporary does not necessarily mean short in

duration:
When the projects objectives have been achieved, or When it becomes clear that the project objectives will not or cannot be met and the project is terminated.
The duration of a project is finite:

projects are not ongoing efforts.
many projects last for several years.
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The Product of a Project is Unique

A product or service may be unique even if the category it belongs
to is large.
For example, many thousands of office buildings have been developed, but each individual facility is uniquedifferent owner, different design, different location, different contractors, and so on. Because the product of each project is unique, the characteristics that distinguish the product or service must be progressively elaborated. Progressively means proceeding in steps; continuing steadily by increments Elaborated means worked out with care and detail; developed thoroughly
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What is Project Management?

Project management is the application of knowledge, skills,
tools, and techniques to project activities in order to meet or exceed stakeholder needs and expectations from a project
Meeting stakeholder needs and expectations involves

balancing competing demands among:
Scope, time, cost, and quality. Stakeholders with differing needs and expectations. Identified requirements (needs) and unidentified requirements (expectations).
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Project management consists of

Work Products Roles
Who is responsible?
Guiding Principles
What to deliver?
Processes
Hints & Tips
Techniques
How to produce?
16/11/2013 introduction to project management
How to produce?
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News flash
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Stages of PM
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The Triple Constraint of Project Management
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Managing triple constraint

1. Builds the dashboard you use for controlling the project. 2. Without this dashboard, you have no way of knowing where the project is currently headed, how far off course it is, or what action to take to get it back on course. 3. If you neglect this function, you and all project stakeholders are subject to unhappy surprises. 4. Uncontrolled projects rarely reach their goal.
Delivery (Performance)
Time (Schedule)
Client Agreement
Cost (Budget)
Manage the Triple Constraint

The Context for Project Management

The Project Life Cycle Project Stakeholders Organizational Influences Key General Management Skills
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The Project Life Cycle

The project life cycle serves to define the
beginning and the end of a project The life cycle is normally divided into a number of phases Each project phase is marked by completion of one or more deliverables A deliverable is a tangible, verifiable work product such as a
feasibility study, a detail design, or a working prototype
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A Generic Life Cycle
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Project Stakeholders
Project stakeholders are individuals and
organizations who are actively involved in the project, or whose interests may be positively or negatively affected as a result of project execution or successful project completion
The project management team must identify the
stakeholders, determine what their needs and expectations are, and then manage and influence those expectations to ensure a successful project
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Key Stakeholders
Key stakeholders on every project include:
Project manager
the individual responsible for managing the project.
Customer
the individual or organization who will use the project product
Performing organization Sponsor
the enterprise whose employees are most directly involved

in doing the work of the project.
the individual or group within the performing organization
who provides the financial resources, in cash or in kind, for the project.
Project team members

the people doing the work on the project to realise a product
Influence of Organizational Structure on Projects
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Organizational Influences
Conduct of Projects is influenced by:
Organizational Structure range from fully functional to totally project oriented Organizational Culture
Conservative or Aggressive Participative or Authoritarian
Organizational Systems
Suitability of support functions such as finance, human resource management or strategic planning for project work
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10 Reasons Why Projects Fail
Source: Gartner Group, July 1998 and Accenture analysis
Costs of Poor Project Management

31% of all new software development
projects are cancelled before completion
estimates A survey on overall applications development projects revealed:
53% of projects cost >189% of original
46% of IT projects were "challenged" (completed over budget and past the original deadline).
6% of projects succeeded.
16.2% of software projects completed

on time and on budget estimates
Average overrun is 222% of original

Source: Standish Group, 1995
28% of projects failed.
Source: Standish Group, 1998
Influencing the organization

Ability to get things done Requires an understanding of both the
formal and informal structures of all the stakeholders An understanding the mechanics of power and politics
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Project Management Process

The purpose of the Project
management process is to identify, establish, and coordinate and monitor activities, tasks, and resources necessary for a project to produce a product and/or service meeting the agreed requirements.
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Outcomes of Project Management

As a result of successful implementation of the
process:
the scope of the work for the project will be defined; the feasibility of achieving the goals of the project with available resources and constraints will be evaluated; the tasks and resources necessary to complete the work will be sized and estimated; interfaces between elements in the project, and with other projects and organizational units, will be identified and monitored; plans for execution of the project will be developed and implemented; progress of the project will be monitored and reported; actions to correct deviations from the plan and to prevent recurrence of problems identified in the project, will be taken when project targets are not achieved.
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Knowledge Areas for Project Management

Project Integration Management Project Scope Management Project Time Management Project Cost Management Project Quality Management Project Human Resource Management Project Communications Management Project Risk Management Project Procurement Management
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A Framework for Project Management
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Project Integration Management

Describes the processes required to ensure that the various
elements of the project are properly coordinated. Tradeoffs among competing objectives and alternatives to meet or exceed stake holders needs or expectations
Consists of
project plan development Integrating and co-ordinating all project plans to create a consistent, coherent document
project plan execution
Carryout the project plan by performing the activities included therein overall change control. Co-ordinating the changes across the entire project
These processes interact with each other and with the processes in the other knowledge areas as well. Each process may involve effort from one or more individuals or groups of individuals, based on the needs of the project.
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Project Scope Management

Describes the processes required to ensure that
the project includes all the work required, and only the work required, to complete the project successfully. Consists of
initiation scope planning
Authorizing the project phase Developing a written scope statement as the basis for future project decisions Subdividing the project deliverables into smaller, more manageable components Formalizing the acceptance of the project scope Controlling the changes to project scope
scope definition
scope verification
scope change control.
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Project Time Management

Describes the processes required to
ensure timely completion of the project. Consists of
activity definition activity sequencing activity duration estimating schedule development schedule control
Activity Definitionidentifying the specific

activities that must be performed to produce the various project deliverables. (b) Activity Sequencingidentifying and documenting interactivity dependencies. (c) Activity Duration Estimatingestimating the number of work periods that will be needed to complete individual activities. (d) Schedule Developmentanalyzing activity sequences, activity durations, and resource requirements to create the project schedule. (e) Schedule Controlcontrolling changes to the project schedule.
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Project Cost Management

the project is completed within the approved budget.
Consists of resource planning determining what resources (people, equipment, materials) and what quantities of each should be used to perform project activities. cost estimating developing an approximation (estimate) of the costs of the resources needed to complete project activities. cost budgeting Allocating the overall cost estimate to individual work activities cost control Controlling changes to the project budget
Project Quality Management

the project will satisfy the needs for which it was undertaken. Consists of
quality planning Identifying relevant quality standards quality assurance Planned and systematic activities implemented within the quality system quality control. Monitoring specific project results
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Project Human Resource Management

Describes the processes required to make the
most effective use of the people involved with the project Consists of
organizational planning
Identifying, documenting and assigning project roles and responsibilities
staff acquisition
Getting the human resource needed, assigned to and working on the project
team development.
Developing individual and group competencies to enhance project performance
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Project Communications Management

Describes the processes required to ensure
timely and appropriate generation, collection, dissemination, storage, and ultimate disposition of project information Consists of
communications planning information distribution performance reporting administrative closure.
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Communications Planningdetermining the
information and communications needs of the stakeholders: who needs what information, when they will need it, and how it will be given to them. Information Distributionmaking needed information available to project stakeholders in a timely manner. Performance Reportingcollecting and disseminating performance information. This includes status reporting, progress measurement, and forecasting. Administrative Closuregenerating, gathering, and disseminating information to formalize a phase or project completion.
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Communicating is a broader subject and involves a
substantial body of knowledge that is not unique to the project context. For example: Sender-receiver modelsfeedback loops, barriers to communications, etc. Choice of mediawhen to communicate in writing versus when to communicate orally, when to write an informal memo versus when to write a formal report, etc. Writing styleactive versus passive voice, sentence structure, word choice, etc. Presentation techniquesbody language, design of visual aids, etc. Meeting management techniquespreparing an agenda, dealing with conflict, etc.
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Project Risk Management

Describes the processes concerned with
identifying, analyzing, and responding to project risk
Risk Management Planningdeciding how to approach and plan the risk management activities for a project. Risk Identificationdetermining which risks might affect the project and documenting their characteristics. Qualitative Risk Analysisperforming a qualitative analysis of risks and conditions to prioritize their effects on project objectives. Quantitative Risk Analysismeasuring the probability and consequences of
introduction to project 39
risks and estimating their implications 16/11/2013 management for project objectives.
Project Procurement Management

Describes the processes required to
acquire goods and services from outside the performing organization Consists of
procurement planning solicitation planning source selection contract administration contract close-out
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Project management plan

Sections: 1. Background 2. Objectives 3. Scope 4. Deliverables 5. Approach 6. Risks 7. Assumptions 8. Constraints 9. External Dependencies 10. Critical Success Factors 11. Equipment and Facilities Needs 12. Client Responsibilities
Project Management Plan

Project Definition
Project Plan
Detail Level Sections: 1. Product/Work Breakdown Top Level Sections: Structure 1. Product/Work Breakdown 2. Project Dependency Structure Diagram 2. Project Dependency 3. Project Schedule Diagram 3. Project Schedule 4. Project Organization 4. Project Organization 5. Staffing Profile 5. Staffing Profile 6. Project Budget 6. Project Budget 7. Payment Schedule 7. Payment Schedule Subordinated Work Products Start-Up Plan Configuration Management Plan Subcontractor Management Plan Acceptance Plan Communication Management Plan Quality Plan Risk Management Plan Training Plan Project Completion Plan Performance Measurement Plan Update Plan
Procedures and Tools
Subordinated Work Products Project Management Tools Issue Resolution Procedure Data / Document Management Procedures Other Project Procedures
Other Supporting Plans
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Summary
Project Management Introduction
What is a project? What is Project Management? The Context for Project Management The Project Management Process Knowledge areas for project management
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Exercise
Take a few minutes to write down answers to: What are the main ideas I have learned today? What am I still confused about, or dont understand?
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PROJECT MANAGEMENT Overview and Concepts

introduction to project management

OUT LINE FOR TODAY

introduction to project management

introduction to project management

introduction to project management

Operations and Projects

introduction to project management

Projects are Temporary

definite beginning and a definite end. The end is reached:

Temporary does not necessarily mean short in

The duration of a project is finite:

many projects last for several years.

introduction to project management

The Product of a Project is Unique

What is Project Management?

Meeting stakeholder needs and expectations involves

introduction to project management

Project management consists of

Hints & Tips

introduction to project management

introduction to project management

The Triple Constraint of Project Management

introduction to project management

Managing triple constraint

Manage the Triple Constraint

The Context for Project Management

introduction to project management

The Project Life Cycle

introduction to project management

A Generic Life Cycle

introduction to project management

The project management team must identify the

introduction to project management

Performing organization Sponsor

the enterprise whose employees are most directly involved

the individual or group within the performing organization

Project team members

Influence of Organizational Structure on Projects

introduction to project management

introduction to project management

10 Reasons Why Projects Fail

Source: Gartner Group, July 1998 and Accenture analysis

Costs of Poor Project Management

53% of projects cost >189% of original

16.2% of software projects completed

Average overrun is 222% of original

28% of projects failed.

Source: Standish Group, 1998

Influencing the organization

introduction to project management

Project Management Process

Outcomes of Project Management

Knowledge Areas for Project Management

A Framework for Project Management

introduction to project management

Project Integration Management

project plan execution

introduction to project management

Project Scope Management

scope change control.

Project Time Management

Activity Definitionidentifying the specific