Project Management

(Introduction)

Lets Get to Know Each Other

Instructors Introduction
Muhammad Shahid M.B.A. (MIS) Institute of Business Administration B.E. (Mech.) NED University of Engineering and Technology MCSE (2000/2003) MCDBA (SQL 2000) SCJP

Work experience with Siemens Pakistan Novartis Pharma Pakistan Limited Microsoft Canada NCR Canada Sui Southern Gas Company Limited

Email address: m_schahid@yahoo.com

What is a Project?

A complex, non-routine, one-time effort limited by time, budget, resources and performance specifications designed to meet customer needs.
Keywords: (complex, non-routine, one-time, budget, resources, performance specifications, customer needs)

A project is a temporary endeavor undertaken to create unique product, service, or result.

Keywords: (temporary, unique product service or results)

Major Characteristics of a Project

Temporary An established / well defined objective Unique Products, Services or Results A defined life span with a beginning and an end Usually involves several departments and professionals (human and other resources, such as, material, equipment, supplies, etc.) Typically doing something that has never been done before Specific time, cost and performance requirements Progressive elaboration

Major Characteristics of a Project Temporary

Every project has a definite beginning and a definite end. The end is reached when the projects objectives have been achieved, or it becomes clear that the projects objectives will not or cannot be met, or the need for the project no longer exists and the project is terminated.

Major Characteristics of a Project An Established Objective

Project have a defined objective, such as construction of a 12-story apartment complex by December 31, 2010 or releasing version 2.0 of a specific software package.

Major Characteristics of a Project Unique Product, Service, or Results

Project creates unique deliverables, which are: Product that is produced Capability to perform service

Result, such as, outcomes or documents.

Major Characteristics of a Project A Defined Life Span with a Beginning And An End
Because there is a specific objective, projects have a defined endpoint, which is contrary to the ongoing duties and responsibilities of traditional jobs. Individuals move from one project to the next as opposed to staying in one job.

Major Characteristics of a Project Usually the Involvement of Several Departments and Professionals
Unlike much organizational work that is segmented according to functional specifications, projects typically require the combined efforts of a variety of specialists. Instead of working in separate offices under separate managers, project participants work closely together under the guidance of project manager to complete the project.

Major Characteristics of a Project Typically Doing Something That Has Never Been Done Before
It is not routine and involves unique elements to some degree.
Many thousands of office buildings have been developed, but each individual facility is unique different owner, different design, different location, different contractor and so on. The presence of repetitive elements does not change the fundamental uniqueness of the project work.

Major Characteristics of a Project Specific Time, Cost and Performance Requirements

Specific time, cost and performance requirements bind projects. Projects are evaluated according to accomplishment, time, and cost. These triple constraints impose a higher degree of accountability. They also highlight one of the primary functions of project management, which is balancing the trade-off between time, cost and performance while satisfying the customer.

Major Characteristics of a Project Extended Concept of Triple Constraints

Cost Time Scope

Risk

Quality

Customer Satisfaction

Major Characteristics of a Project Progressive Elaboration

Progressive elaboration means developing in steps and continuing by increments. For example, the project scope will be broadly described early in the project and made more explicit and detailed as the project team develops a better and more complete understanding of the objectives and deliverables. It is not Scope Creep!!

Examples of Projects

Developing a new product / service Organizational restructuring Designing a new transportation vehicle Developing / acquiring a new information system Constructing a building / facility Building a water system for a community Running a campaign for a political party Implementing new business processes

What is Not a Project? Not an everyday work, routine, or repetitive work. Ordinary daily work typically requires doing the same or similar work over and over, while a project is done only once at the end of which a new project / service exists. Operations are ongoing and repetitive while projects are temporary and unique.

Project terminates when it attains its objectives. While purpose of ongoing operation is to sustain business.

Projects and Strategic Planning Projects are utilized as a means of achieving an organizations strategic plan. Typically authorized as a result of one or more of the following activities: Market Demand Organizational Need Customer Request Technological advance Legal Requirements

Project Management Application of knowledge, skills, tools and techniques that allows you to deliver projects that are:

On time

On budget

According to Specifications

Project Management Methodology is a structured approach to projects.

Project Management Standish Group conducted a study in 2004, according to which, only 34% of the projects are successful.

Project Management

Accomplished through the application and integration of the project management process groups of: Initiating (2) Planning (21) Executing (7) Monitoring and Control (12) Closing (2)
Numbers in bracket represent no. of processes in the process group Process is a series of actions that brings about a result.

Project Management Managing a project includes: Identifying requirements

Establishing clear and achievable objectives

Balancing the competing demands for quality, scope, time and cost Adapting the specifications, plans, and approach to the different concerns and expectations of the various stakeholders

Project Management

Project Management

Major goal is to satisfy customer needs Customer

Project Management Provides people with a powerful set of tools that improves their ability to plan, implement and manage activities to accomplish specific organizational objectives. Results-oriented management style that places a premium on building collaborative relationships among a diverse group of people.

9 Knowledge Areas, 5 Process Groups and 44 Processes

Scope
Risk Quality

Time
Procurement Human Resource

Cost

Fully integrated together for successful Project Management

Communication

These 9 knowledge areas are applied through 5 process groups. Structured and controlled application of knowledge areas

9 Knowledge Areas, 5 Process Groups and 44 Processes

Project Integration Management Project Procurement Management Project Scope Management

Process Groups
Initiating

Project Risk Management Planning

Project Time Management

Controlling Project Communication Management Closing

Executing Project Cost Management

Project H.R. Management

Project Quality Management

9 Knowledge Areas, 5 Process Groups and 44 Processes

Initiating Project Integration Management 1. Develop Project Charter 2. Develop Preliminary Project Scope Statement 3. Develop Project Management Plan 4. Direct and Manage Project Execution 5. Monitor and Control Project Work 6. Integrated Change Control 7. Close Project Scope Management 1. Scope Planning 2. Scope Definition 3. Create WBS 4. Scope Verification 5. Scope Control Time Management 1. Activity Definition 2. Activity Sequencing 3. Activity Resource Estimating 4. Activity Duration Estimating 5. Schedule Development 6. Schedule Control x x x x x x x x x x x x x x x x x x Planning Execution Monitoring & Control Closing

9 Knowledge Areas, 5 Process Groups and 44 Processes

Initiating Planning Execution Monitoring & Control Closing

Cost Management
1. Cost Estimating 2. Cost Budgeting 3. Cost Control x x x

Quality Management
1. Quality Planning 2. Perform Quality Assurance 3. Perform Quality Control Project Human Resource Management 1. Human Resource Planning 2. Acquire Project Team 3. Develop Project Team 4. Manage Project Team Project Communication Management 1. Communications Planning 2. Information Distribution 3. Performance Reporting 4. Manage Stakeholders x x x x x x x x x x x

9 Knowledge Areas, 5 Process Groups and 44 Processes

Initiating Project Risk Management 1. Risk Management Planning 2. Risk Identification 3. Qualitative Risk Analysis 4. Quantitative Risk Analysis 5. Risk Response Planning 6. Risk Monitoring and Control Project Procurement Management 1. Plan Purchase and Acquisition 2. Plan Contracting 3. Request Seller Response 4. Select Seller 5. Contract Administration 6. Contract Closure x x x x x x x x x x x x Planning Execution Monitoring & Control Closing

Project Management

Project Management appears to be ideally suited for a business environment requiring accountability, flexibility, innovation, speed, and continuous improvement. Not restricted to specialists. Managing projects are often a vital part of everyones job.

Project vs. Program Similarities

Both are directed towards goals and require plans and resources to reach their goals. Both use similar tools, methods, and policies.

Differences
Primarily lie in scope and time horizons.

Program is a series of coordinated, related, multiple projects that continue over extended time intended to achieve a goals. It is a higher level group of projects targeted at a common goals.
Example: Americas space program

Project Project X A

Project B

Project Y

Program

Project Manager
Plan, schedule, motivate and control. Project manager manages temporary, nonrepetitive activities and frequently acts independently of the formal organization. Marshal the resources to complete a fixed-life project on time, on budget, and within specifications. Direct link to the customer and must manage the interface between customer expectations and what is feasible and reasonable. Provide direction, coordination, and integration to the project team, which is often made up of part-time participants loyal to their functional departments.

Project Manager
Responsible for performance

Ensure that appropriate trade-offs are made between the time, cost and performance requirements of the project.
They must orchestrate the completion of the project by inducing the right people, at the right time, to address the right issues and make right decisions.

Allocation of Projects Vs. Seniority of Project Managers

Initiation Allocation of Projects Closing

Planning Monitoring & Control

Execution Junior PMs Seniority Level Senior PMs

It is essential that once the project is closing, you must have processes in place to return the resources back to corporate asset pool so that they can be redeployed to other projects.

Importance of Project Management

An increasing percentage of the typical firms effort is being devoted to projects. Future promises an increase in the importance and the role of projects in contributing to the strategic direction of the organization. Shortening of the project life cycle 1 3 years compared to 10 15 years, 30 years ago
In high-tech industries, 33% of product revenue share is lost if product development is 6 months late.

Global competition Knowledge explosion Corporate downsizing Increased customer focus Rapid development of third world and closed economies
Page 7 11 of Gray & Larson

Project Management Trends

Rapid expansion of the Project Management Institute (PMI) International, not-for-profit group of volunteers focused on assimilation and delivery of project management best practices 230,000 members, 251 chapters, 160,000 PMPs Certifications offered are: PMP, CAPM, PgMP, OPM3 (Accessor and consultants) www.pmi.org Increased Number of Project Management Professionals (PMPs)

Specific Interest Groups (SIGs) for people in different industries to share ideas about managing projects in their areas of interest, such as, aerospace, automotive, construction, engineering, information technology, financial services, pharmaceuticals and telecommunications.

What Do We Need to be Successful?

Well defined scope Empowered sponsor Budget Will comes from the sponsor

Senior Managements approval / buy-in

An Integrative Approach to Project Management

Integration in project management directs attention to two key areas: Integration of projects with the strategic plan of the organization Integration within the process of managing actual projects

An Integrative Approach to Project Management Integration of projects with the strategic plan of the organization
Strategies are typically implemented through projects. There are usually more projects proposed than there are resources The key is selecting from the many proposals those projects that make the largest and most balanced contribution to the objectives and strategies and thus the customers of the organization. This means prioritizing projects so that scarce resources are allocated to the right project. Once the project has been selected for implementation, the focus switches to the project management process that sets the stage for how the project will be implemented or delivered.

An Integrative Approach to Project Management

Integration With the Process of Managing Actual Projects There are two dimensions within the project management process.
Creating a temporary social system within a larger organizational environment that combines the talent of divergent set of professionals working to complete the project. Project manager must shape a culture that stimulates teamwork. The Art of project management. Technical Scope WBS Schedules Resource Allocation Baseline Budgets Status Reports Formal, disciplined, pure logic parts of the process. Science of project management

Socio-cultural Leadership Problem Solving Teamwork Negotiation Politics Customer expectations

To be successful, you have to master both.

Area of Expertise Needed by the Project Team

Project life cycle definition Five project management process groups Nine knowledge areas

Effective communication Influencing the organization Leadership Motivation Negotiation Conflict management Problem solving Interpersonal Skills

Project Management Body of Knowledge

Functional department / supporting disciplines Technical elements Management specialization Industry groups

Application Area Knowledge, Standards and Regulations

Financial management / accounting Purchasing / procurement Sales / marketing Contracts and commercial law Manufacturing / distribution Logistics / supply chain Strategic / tactical / operational planning Human resource management Health and safety practices Information technology

General Management Knowledge and Skills

Understanding Project Environment

Cultural / social environment International and political environment Physical environment

Project Management Context

Strategic Plan

Portfolio

Collection of projects or programs and other work that are grouped together to facilitate effective management of that work to meet strategic business objectives.

Program

Group of related projects managed in a coordinated way to obtain benefits and control not available from managing them individually.

Project

Subproject

Projects are frequently divided into more manageable components / subprojects, although the individual subprojects can be referred to as projects and managed as such.

Important Point
Principles of project management are the same, no matter your industry or specialty. However, dont fell into the A project is a project is a project! syndrome. You will be much more successful if you actually understand the industry in which you are practicing. The project management team is responsible for determining what is appropriate for any given project.

Stakeholders
Anyone who is actively involved in, is affected by, or is in a position to exert influence on, the project. Project Manager Customers / Users Performing Organization Project Team Members Project Management Team Project Sponsor Influencers PMO Secondary Stakeholders, such as, community, government.

One of the management skills you need is to be able to develop consensus. Another is the capacity to accept decisions that may not be to your liking. Project manager must identify stakeholders, determine their requirements and expectations, and, to the extent possible, manage their influence in relation to the requirements to ensure successful project.

Stakeholders
Managing Stakeholders
Determine all the stakeholders Determine all of their requirements and expectations Manage and influence the stakeholders involvement. Get them to sign off that the requirements are finalized. Assess their knowledge and skills. Analyze the project to make sure their needs will be met. Let them know what requirements will and what requirements will not be met and why Get and keep them involved in the project through assigning them project work such as the role of risk response owners Use them as experts Make sure the project communicates to them what they need to know, when they need to know it Involve them, as necessary, in change management and approval Involve them in the creation of lessons learned Get their sign-off and formal acceptance during project or project phase closing.

Stakeholders

Other Methodologies
In the UK, the government has sponsored through the Central Computer and Telecommunication Agency, CCTA, a set of procedures called PRINCE, which has, after several years been revised to PRINCE 2. CCTA is the owner of PRINCE. PRINCE stands for PRojects IN Controlled Environments. PRINCE, the earlier version, was designed primarily for IT projects, but it soon became apparent, however, that the method was applicable to projects outside the IT industry, and PRINCE 2 makes no specific reference to IT development.

Other Methodologies BS 6079 Project Management Series

This series is aimed at providing guidance for relative newcomers to project management and to act as a framework for more experienced practitioners. It will also prove useful to those who interact with project management teams and has been specifically written with the SME (small and medium enterprise) manager in mind. BS 6079-1:2002 Guide to Project Management BS 6079-2:2000 Vocabulary BS 6079-3:2000 Guide to Management of Business Related Project Risk

Other Methodologies ISO 12207

ISO 12207 differs from these in that, firstly, it is international in standing and secondly, that it relates specifically to software development. ISO 12207 has as the prime areas of its concern the documentation (or software life cycle data as it is called) created and used by a software development project and the processes that, during development, will use and update software life cycle data.

Other Methodologies
0 Select project

Identify project scope and objectives 3 Analyze project characteristics

Select Project

Review

4 Identify the products and activities 5 Estimate effort for activity

Lower level detail 6

Identify activity risks

10

Allocate resources

Allocate resources

Execute plan

Review and publicize plan

Feedback on last semester

90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 1 PM Context PM Process Integ. Mgt. Scope Mgt. Time Mgt. Cost Mgt. Quality Mgt. HR. Mgt. Comm. Mgt. Risk Mgt. Proc. Mgt. Prof. Resp.