Transcript Fundamentals of Project Management

Fundamentals of
Project Management
Chapter-1
From PMBOK 4th Edition @2008 PMI
What is a Project?
?
What is a Project?
• A project is a sequence of unique, complex and connected
activities having one goal or purpose that must be
completed by a specific time, wthin budget and according to
specification
• A project is a complex, nonroutine, one-time effort limited
by time, budget, resources, and performance specifications
designed to meet customer needs
• Projects are ad hoc, resource-consuming activities used to
implement organizational strategies, achieve enterprise
goals and objectives, and contribute to the realization of the
enterprise‘s mission
A project is a temporary endeavor
undertaken to create a unique
product, service or result.
A Project can Create
• A product that can be either a component of
another item or an end item in itself.
• A capability to perform a service(e.g., a business
function that supports production or
distribution).
• A result such as an outcome or a document (e.g.,
a research project that develops knowledge that
can be used to determine whether a trend is
present or a new process will benefit society).
Main features of a Project •
•
•
•
Revision
It is a temporary endeavor undertaken.
To create a unique product, service or result
Temporary, therefore, has a start and an end
End is reached when
– Objectives have been achieved
– When objectives will not or cannot be met
– Need for the project does no longer exist
• What can be the duration of a project?
• What about the outcome of a project?
Examples of Projects
• Developing a new product or service (Why)
• Effecting a change in the structure, staffing or
style of an organization
• Developing or acquiring a new modified
information system
• Constructing a building or infrastructure
• Implementing a new business process or
procedure
• Give examples of Projects in Pakistan / World
What is Project Management?
• It is the application of:
–
–
–
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–
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Knowledge
Skills
Tools
Techniques
To do project activities to meet project requirements
It is accomplished through appropriate application and
integration of 42 logically grouped project management
processes comprising the 5 process groups.
– What are those FIVE Process Groups?
– What are those 9 Knowledge Areas in Projects?
Mapping the Processes
Process
PM
Group
Knowledge Area
4. Project
Integration
Management
Initiating
P.G.
4.1 Develop
Project
Charter
Planning
P.G.
4.2 Develop Project
Management Plan
Executing
P.G.
Controlling
P.G.
4.3 Direct &
Manage
Project
Execution
4.4 Monitor &
Control Project
Work
4.5 Perform
Integrated Change
Control
5. Project Scope
Management
5.1 Collect
Requirements
5.2 Define Scope
5.3 Create WBS
5.4 Verify Scope
5.5 Control Scope
6. Project Time
Management
6.1 Define Activities
6.2 Sequence Activities
6.3 Estimate Activity
Resources
6.4 Estimate Activity
Duration
6.5 Develop Schedule
6.6 Control
Schedule
7. Project Cost
Management
7.1 Estimate Costs
7.2 Determine Budgets
7.3 Control Costs
Closing
P.G.
4.6
Close
Project
or
Phase
9
Mapping the Processes (cont.)
Process
Group
PM
Knowledge Area
8. Project Quality
Management
Initiating
P.G.
9. Project Human
Resource
Management
10. Project
Communications
Management
11. Project Risk
Management
10.1
Identify
Stakehold
er
Planning
P.G.
Executing
P.G.
8.1 Plan Quality
8.2 Perform Quality
Assurance
9.1 Develop
Human Resource
Plan
9.2 Acquire Project Team
9.3 Develop Project Team
9.4 Manage Project Team
10.2
Communications
Planning
10.3 Information
Distribution
10.4 Mange Stakeholders
11.1 Plan Risk
Management
11.2 Identify Risk
11.3 Perform
Qualitative Risk
Analysis
11.4 Perform
Quantitative Risk
Analysis
11.5 Plan Risk
Responses
Controlling
P.G.
Closi
ng
P.G.
8.3 Perform
Quality Control
10.5 Report
Performance
11.6 Monitor &
Control Risk
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Mapping the Processes (cont.)
Process
Group
PM
Knowledge Area
12. Procurement
Initiating
P.G.
Planning
P.G.
12.1 Plan
Procurement
Executing
P.G.
12.2 Conduct
Procurement
Controlling
P.G.
12.3 Administer
Procurement
Closing
P.G.
12.6 Close
Procurement
11
Why Projects?
To meet strategic business goals and objectives:
Strategic opportunity
Business needs
Customer request
Technological advance
Legal requirements
What is Project Management?
• Project Initiation
• Project Planning
• Project Execution
• Project Monitoring
& Change Mgt.
• Project Closing
1.Project aligned with organizational objectives and customer needs
2.Preliminary scope statement includes stakeholder needs and expectations
3.High-level risks, assumptions are understood
4.Stakeholders identified and their needs understood
5.Project charter approved
1 .Project scope agreed
2.Project schedule approved
3.Cost budget approved
4.Project team identified with roles and responsibilities agreed
5.Communications activities agreed
6.Quality management process established
7.Risk response plan approved
8.Integrated change control processes defined
9.Procurement plan approved
10.Project plan approved
1.Project scope achieved
2.Project stakeholders expectations managed
3.Human resources managed
4.Quality managed against plan
5.Material resources managed
1.Project tracked and status communicated to stakeholders
2.Project change is managed
3.Quality is monitored and controlled
4.Risk is monitored and controlled
5.Project team is managed
6.Contracts administered
1.Project outcomes accepted
2.Project resources released
3.Stakeholder perceptions measured and analyzed
4.Project formally closed
Relationship Between
• Project Management
• Portfolio Management
• Program Management
What is Portfolio Management?
• resource allocation to achieve
corporate new product
objectives.
Portfolio Management
 Portfolio (finance), a collection of investments held by an institution
or a private individual
 Career portfolio, an organized presentation of an individual's
education, work samples, and skills
 Artist's portfolio, a sample of an artist's work or a case used to
display artwork, photographs etc
 Product portfolio (business administration), 2D separation of
products by their market share and profits or growth rates (BCG)
 IT Portfolio, in IT portfolio management, the portfolio of large
classes of items of enterprise Information Technology (IT)
 Project Portfolio, in Project Portfolio Management, the portfolio of
projects in an organization. It is a collection of projects or programs
and other works that are grouped together to facilitate effective
management
Examples of Portfolio Management
An infrastructure firm that has the strategic objective of
maximizing the return on its investments may have a
portfolio of:
• Projects in oil & gas
• Projects in power
• Projects in water
• Projects in roads
• Projects in rail
• Projects in airports
Program Management
Program Management is defined as a group of
related projects managed in a coordinated
way to obtain benefits and control not
available from managing them individually.
Programs may include elements of related work
outside the scope of the discrete projects in
the program
A program will always have projects.
Program Management
It focuses on the project interdependencies and
help to determine the optimal approach for
managing them.
• Resolve resource constraints & conflicts
• Aligning organizational direction
• Resolve issues and change management
within a shared governance structure
Example of a
Program Management
A new communication satellite system:
• Designing of a satellite and ground system
• Construction of a satellite and ground station
• Integration of the system
• Launching of the satellite
Project Management Office (PMO)
It is an organized body or entity assigned
coordinated management of projects under its
domain
It is the key decision maker during the beginning
of each project
It is also responsible for the selection,
management and deployment of shared or
dedicated project resources
Functions of (PMO)
1. Managing shared resources
2. Identifying & developing project management
methodology, best practices and standards
3. Coaching, monitoring, training and oversight
4. Monitoring compliance project audits
5. Developing & managing project policies,
procedures, templates and other standard
documentation?
6. Coordinating communication across projects
Project Manager
• Focuses on a specific project objective
• Controls resources to best meet project
objectives
• Manages the constraints (scope, schedule,
cost and quality etc) of individual project
Main Functions of a Project Manager
 Define scope of project
 Identify stakeholders & Leadership (decision
makers: Client, Parent organization, Project Team,
Publics)
 Evaluate project requirements
 Develop detailed task list (work breakdown,
structures)
 Develop initial project management flow chart
 Estimate time requirements
 Identify cost estimation and budget
 Identify required resources and evaluate risks
Main Functions of a Project Manager
Prepare contingency plan
Identify interdependencies
Identify and track critical milestones
Secure needed resources, manpower
Participate in project phase review
Manage the change control process
Report project status
Project Management Vs
Operation Management
• How they are different?
• When do they interact?
Project Management Vs
Operation Management
• Operations are permanent endeavors that
produce repetitive outputs with resources
assigned to do same set of tasks
• It is an ongoing nature of operations
• Projects are unique
• Projects are temporary endeavors
Characteristics of a
Project Manager
• Knowledge: Must be well versed with project
management. ?
• Performance: Application of project management
knowledge
• Personal: Behavior of the project manager:
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Effectiveness
Attitude
Personality characteristics (Michael Dell)
Leadership, guidance to balance project constraints
Enterprise Environmental Factors
• Organizational culture, structure & processes
• Government or industry standards
• Infrastructure: Existing facilities and capital equipment
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Existing human resource
Marketplace conditions
Stakeholder risk tolerance
Potential climate
Political climate
Established communication channels
Commercial databases: cost, risk study / info
Project management information systems (blog)
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