Topic Introduction

to Project
1 Management
LEARNING OUTCOMES

By the end of this topic, you should be able to:

1. Classify a project, management and project management;
2. Define a Project Managers role;
3. Identify project management advantages and disadvantages;
4. Recognise project management defacto standards;
5. Elaborate the project triple constraints; and
6. Explain Concurrent Engineering.

INTRODUCTION
Look around you. You will be amazed with various products such as cars,
buildings and infrastructures. You may wonder how all these products were nicely
created or built. In this topic, we are going to introduce the concept of Project
Management that has created or built all those products.

ACTIVITY 1.1
In a group, list products or infrastructures around you that may be an
outcome of project management.

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1.1 PROJECT MANAGEMENT (PM)

Project Management (PM) terminology consists of two key words, that is, Project
and Management.

1.1.1 What is a Project?

A project is known to be unique whereby it is not a regular, routine process or
operation. There are specific set of tasks designed to fulfil defined outcomes and
deliverables. A project team consists of people who dont usually work together and
they come from different organisations and across multiple locations. It also has
certain scope, limited by budget and resources. So, we can define a project as below:

A Project is a temporary endeavour with a set or sequence of tasks planned

from beginning to end that are interrelated and to be implemented within a fixed
time and limited by budget and resources.

In other words, a project can be likened to that of a ship on a journey from Point A
to Point B (inception to completion) and a Project Manager the Captain of the ship.

Table 1.1 lists the definitions of project according to various project management
organisations.

Table 1.1: Definitions of Project

Author/Professional
Definition of Project
Bodies/Organisation
The Project Management Institute A temporary endeavour undertaken to create a
(PMI), USA, 1996 unique product or service.
The UK Association of Project A discrete undertaking with defined objectives
Managers, 1996 often including time, cost and quality
(performance) goals.
The British Standards Institute (BSI), A unique set of coordinated activities, with
2000 definite starting and finishing points,
undertaken by an individual or organisation to
meet specific objectives within a defined
schedule, cost and performance parameters.
Turner, 1992 An endeavour in which human, material and
financial resources are organised in a novel way
to undertake unique constraints of cost and
time, so as to achieve beneficial change defined
by quantitative and qualitative objectives.

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Usually, you can identify a project by certain characteristics. Some of the

characteristics include:

(a) Has an established objective;

(b) Unique in some way;

(c) Has a defined life span with a beginning and an end;

(d) Has specific time, cost and performance requirements;

(e) Requires across-the-organisational participation (diversity); and

(f) Involves doing something never been done before (risk and uncertainty).

1.1.2 What is Management?

Now, let us review what management is.

Generally, management is defined as the process of completing activities efficiently

and effectively with and through others. Management functions are listed as
follows:

(a) Planning;

(b) Organising;

(c) Staffing;

(d) Directing;

(e) Coordinating;

(f) Reporting; and

(g) Budgeting.

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1.1.3 What is Project Management?

Now, let us see what project management is.

Basically, project management is the application of knowledge, skills, tools and

techniques to project activities in order to meet or exceed stakeholders needs and
expectations from a project.

Generally, we can divide project management processes into the following five
groups:

(a) Initiating
Steps implemented to define a new project or a new phase of an existing
project by getting an authorisation to begin the project or phase.

(b) Planning
Activities required to establish the project scope, improve the objectives and
define the course of action required to achieve the project objectives.

(c) Executing
Processes executed to complete the work defined in the project management
plan to fulfil the project requirements.

(d) Monitoring and Controlling

The processes needed to track, review and control the progress and
performance of the project; recognise any areas in which changes to the
project plan are required and initiate those changes.

(e) Closing
The processes executed to ensure all activities across all Process Groups to
formally close the project

In 1996, the Project Management Institute (PMI) of USA developed NINE Project
Management Knowledge Areas in a book entitled A Guide to the Project
Management Book of Knowledge (PMBOK Guide). This book was subsequently
revised in 2000, 2004, 2008 and the latest edition was released in 2013 with the
addition of one new knowledge area moving from nine project management
knowledge areas to 10. The 10 knowledge areas are:

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(a) Project Integration Management

It comprises of processes and activities in order to recognise, define, combine,
merge and coordinate the processes and project management activities in the
project management process groups.

(b) Project Scope Management

It includes the processes necessary to ensure that the project comprises of all
the required work for a successful project completion.

(c) Project Time Management

It includes the processes required to manage the timely completion of the
project.

(d) Project Cost Management

It consists of the processes under the planning, estimating, budgeting,
financing, funding, managing and controlling costs in order for the project to
be completed within the permitted budget.

(e) Project Quality Management

It consists of the processes and actions of the executing organisation that
determines quality policies, objectives and responsibilities so that the project
will fulfil the requirements for which it was undertaken.

(f) Project Human Resource Management

It consists of the processes that organise, manage and lead the teams in the
project.

(g) Project Communications Management

It consists of the processes that are needed to ensure it is appropriate and
timely in the following areas:
(i) Planning;

(ii) Collection;

(iii) Creation;

(iv) Distribution;

(v) Storage;

(vi) Retrieval;

(vii) Management;

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(viii) Control;

(ix) Monitoring; and

(x) Project information dissemination.

(h) Project Risk Management

It comprises of the processes required to conduct risk planning, risk
identification, risk analysis, risk response planning and risk controlling on a
project.

(i) Project Procurement Management

Project Procurement Management includes the processes necessary to
purchase or acquire products, services or results needed from outside the
project team

(j) Project Stakeholders Management

It comprises of the processes needed to recognise resources (such as people
or organisations) influenced by the project, expectations of stakeholders and
their impact on the project and appropriate management strategies
developed for efficiently engaging stakeholders in project decisions and
implementation.

The above 10 project management knowledge areas consists of the processes that
are required to be accomplished within its areas in order to attain effective project
management.

All the 10 knowledge areas also fall into one of the five project management
process groups as mentioned earlier (Initiating, Planning, Executing, Monitoring
and Control and Closing) thus, building a matrix structure as shown in Table 1.2.
In this matrix, every process can be related to one knowledge area and one process
group.

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Table 1.2: PMBOK 2013 Knowledge Areas, Process Groups and Processes
Project Management Process Group
Knowledge
Areas Initiating Planning Process Executing Monitoring and Closing
Process Group Process Group Controlling Process
Group Process Group Group

Project Develop Develop Project Direct and Monitor Close Project

Management or Phase
Integration Project Manage Project Control
Charter Plan
Management Work Project
Work
Perform
Integrated
Change
Control

Project Scope Plan Scope Validate

Management Scope
Management
Collect Control
Scope
Requirements
Define Scope
Create WBS

Project Time Plan Schedule Control

Schedule
Management Management
Define
Activities
Sequence
Activities
Estimate
Activity
Resources
Estimate
Activity
Durations
Develop
Schedule

Project Cost Plan Cost Control Costs

Management Management
Estimate Costs
Determine
Budget

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Project Quality Plan Quality Perform Control Quality

Management Management Quality
Assurance

Project Plan Human Acquire

Human Resource Project
Resource Management Team
Management Develop
Project Team
Manage
Project Team

Project Plan Manage Control

Communications Communications Communications Communications
Management Management

Project Risk Plan Risk Control Risks

Management Management
Identify Risks
Perform
Qualitative
Risk
Analysis
Perform
Quantitative
Risk
Analysis
Plan Risk
Responses

Project Plan Conduct Control Close

Procurement Procurement Procurements Procurements Procurements
Management Management

Project Identify Plan Manage Control

Stakeholder Stakeholders Stakeholder Stakeholder Stakeholder
Management Management Engagement Engagement

Source: http://www.pmi.org/~/media/pdf/standards/appendixa_pfm3_20111002.ashx

1.1.4 Advantages and Disadvantages of Project

Management
In a company, project management brings more advantages that make up more
than the overhead of implementing formal project management. Some of the
advantages include:

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(a) Adaptable to changes;

(b) Reduced cost;
(c) Improved quality;
(d) Higher productivity;
(e) Multi-disciplinary approach => better decision making;
(f) Good team work; and
(g) High morale among team members.

The Center for Business Practices (CBP) (PM Solutions White Paper Series, 2002)
has conducted a study to document the value of project management to
organisations. The following lists the average return organisations have achieved
by implementing project management:
(a) About 97% respondents say it adds value;
(b) Return on Investment (ROI) is 28%;
(c) Improvement in time to market by 22%;
(d) Improvement in customer satisfaction by 38%;
(e) Improvement in productivity by 23%;
(f) Improvement in cost performance by 24%; and
(g) Improvement in schedule performance by 32%.
Much has been said about the advantages of project management, but almost
nothing about its disadvantages. Project management do have some
disadvantages, but, in most cases its advantages far outweigh its disadvantages.
These disadvantages are overhead, obsession and non-creativity.

ACTIVITY 1.2

1. In a group, discuss what project management is.

2. Identify the characteristics of a project.
3. Identify a project that you are familiar with. Describe the relationship
between the 10 knowledge areas a project manager will use during
this project and the specific output for each of the five process

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SELF-CHECK 1.1

1. What is a project?
2. Describe project characteristics.
3. List all 10 project management knowledge areas.
4. Discuss the advantages of practicing project management.

1.2 PROJECT MANAGER

You may ask who project managers are. What are their roles and responsibilities?
Where do they work and so on?

A project manager is the person who is responsible for managing a project. He or

she who is responsible for the successful of the five project management processes,
namely initiation, planning, design, execution, monitoring, controlling and closure
of a project. We can find this job title in various industries such as architecture,
construction, information technology, petrochemical and many different
industries that produce products and services. Figure 1.1 demonstrates the project
managers functions in a project environment.

A project manager is expected to welcome new challenges in each project. In order

to manage these new challenges, the projects managers are expected to have the
talents, skills and diplomacy. Generally, the following is a good skill list for a
project manager:

(a) Set a clear vision;

(b) Good communicator;
(c) Effective leadership skills;
(d) Sound technical skills;
(e) Good decision maker;
(f) Good at team building;
(g) Thrive under pressure;
(h) Good negotiator;
(i) Empathetic; and
(j) Enthusiastic.

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Figure 1.1 shows the functions of a Project Manager and the profession related to
his or her functions.

Figure 1.1: A Project managers functions and profession

SELF-CHECK 1.2

1. Who is a project manager?

2. Discuss the skills needed to be a project manager.
3. With the aid of a diagram, sketch and explain a project managers
functions.

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1.3 PROJECT MANAGEMENT DE FACTO

STANDARDS
There are various standards available for a project management individual and the
types of standard being adopted or used is dependent on the implementation that
an organisation have chosen. They are:

(a) A Guide to the Project Management Body of Knowledge (PMBOK Guide)

PMBOK Guide represents a set of standard terminology and guideline. It is
the document resulting from the work overseen by the Project Management
Institute (PMI) of USA. This standard is commonly adopted by many
organisations.

(b) Project in a Controlled Environment (PRINCE)

PRINCE covers quality management, control and organisation of
a project with consistency and review to align with the
project objectives. PRINCE stresses dividing projects into manageable and
controllable stages. This is a UK based standard.

(c) ISO 10006:2003 Quality Management Systems - Guidelines for quality

management in projects
ISO (International Organisation for Standardisation) developed this standard
and provides guidance on the application of quality management in projects.

(d) TickIT
It is a certification program for companies in the software development and
computer industries developed and adopted by the United Kingdom and
Swedish industries. Its general objective is to improve software quality.

(e) SSADM (Structured Systems Analysis and Design Method) - UK

SSADM is a systems method for the analysis and design of information
systems. It was developed for the use at the Central Computer and
Telecommunications Agency, a UK government office concerned with the use
of technology in the government in the 1980s.

SELF-CHECK 1.3

Name any four Project Management de facto standards.

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1.4 PROJECT TRIPLE CONTRAINTS

The project triple constraints are the combination of the three most significant
restrictions that you can find in any project, that is, cost, time and scope as shown
in Figure 1.2. It is also known as the project management triangle or the iron
triangle.

Figure 1.2: Project management triangle

Source: Adapted from http://www.minxing.us/2011/02/15/pm02

From Figure 1.2, these three constraints are mutually dependent whereby none of
them can be changed without affecting one or both of the others.

For example, if the cost of a project is to be reduced, it is likely to reduce the scope
and/or to take longer time. Likewise, an increased scope is almost certain to cost
more and/or to take longer time.

In project management, it is certainly difficult to satisfy all the three constraints

together. In reality, only two of these can be satisfied by sacrificing the other one.
For example, if a client wants to complete the project sooner, the project is likely
to cost more money or have a lesser scope.

SELF-CHECK 1.4

Explain the project triple constraints.

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1.5 CONCURRENT ENGINEERING

Concurrent engineering is a technique of designing and developing products
where the different stages run simultaneously, instead of sequentially. It decreases
product development time and also the time to market, leading to improved
productivity and reduced costs.

The concurrent engineering environment supports project management, the

control of project information, and promotes collaboration in the building process.
There are three foundational components, that is, electronic information,
information storage that are centrally accessible and networks connecting the users
to the information storage and by which project information is transferred.

SELF-CHECK 1.5

Explain concurrent engineering.

A project is a temporary endeavour with a set or sequence of tasks planned from

beginning to end that are interrelated and to be implemented within a fixed time
and limited by budget and resources.

Project management is the application of knowledge, skills, tools and

techniques to project activities in order to meet or exceed stakeholders needs
and expectations from a project.

Project management brings more advantages that make up more than the
overhead of implementing formal project management.

A project manager is a person who is responsible for managing a project. He

or she is responsible for the successful five project management process,
namely initiation, planning, design, execution, monitoring, controlling and
closure of a project.

Concurrent engineering is a technique of designing and developing products

where the different stages run simultaneously, rather than consecutively.

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Concurrent Engineering Project Management

ISO Project Manager
Management PMBOK
PMI SSADM
PRINCE TickIT
Project

David, I. C., & Lewis R. I. (2002). Project Management: Strategic Design and
Implementation. New York, NY: McGraw Hill.

Harold, K. (2009). Project Management: A system approach to planning,

scheduling and controlling. New Jersey, NJ: Wiley.

PM Solutions White Paper Series. (2002). The Value of Project Management:

Validating the positive impacts of project management on organizations.
West Chester, PA: Center for Business Practices.

Project Management Institute. (2013). A Guide to the Project Management Body of

Knowledge: PMBOK Guide (5th Ed). Newtown Square, PA: Project
Management Institute,

Nigel, J. S. (2007). Engineering Project Management. New Jersey, NJ: Wiley.

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