Project Management

What is a Project
 A Project is a temporary endeavor undertaken to
create a unique product, service or result.

 Temporary: has a definite beginning and an end

 End is when the project objectives have been reached or
project is stopped.
 Projects are not ongoing efforts

 Unique: product or service is different in some

distinguishing way from all similar products or
services
Project Management
 Application of knowledge, skills,
tools and techniques to project
activities in order to meet project
requirements.
 Project Management is an art as
well as science
Importance of Project
Management
 Globalization of businesses and
competition
 Rapid advances in technology
 Focus on financial results and
accountability
 Necessity of speed and responsiveness
 Projects are the way that organizations
implement new strategic objectives
Project Management
Causes & Results
Corporate
Corporate
Globalization
Globalization Market
Market
Demand/
Demand/
opportunity
opportunity

Technological T
Technological DUC
Advance O E
Advance •PR RVIC
•SE CESS KET
O R
•PR O MA
E DT
E
•SP
Business
Business
Need
Need
Social
Social
Need
Need
Benefits to Organizations
 Project portfolio aligned to business strategy
 Greenfield Projects
 Brownfield Projects
 Improved estimates of cost and scheduling
 Monitoring of project cost vs value (ROI)
 Balance and realignment of resources
 Better project execution
 Compete in today’s fast paced environment
Benefits to Individuals
 Increased awareness of the value of PM
 Professional and personal growth
opportunities
 Builds one’s reputation and network
 Develop portable skills and experience
 Accelerated path to management
leadership
 IT Projects : Some Statistics

Source: Adapted from the Standish Group, CHAOS http://www.standishgroup.com

Success Factors
97% of the successful
projects have an experienced
project manager at the helm.

46% of the successful

projects used a formal
project management
methodology, compared to
30% of the challenged and
failed project.

Formal project management

methodology increase the
success rate by 16%
Introduction to PMBOK Guide
 An authoritative standard for project
management
 First draft Developed after 30 years of

research
 Collection of generally recognized best

practices
 Provides and promotes a common lexicon

http://www.pmi.org/
Understanding Some Concepts
Project Characteristics
 Temporary
 Unique Product, Service, Results
 Progressive elaboration
Operations
 Ongoing activities of an organization
 They are repetitive
 They are necessary for organizations
business
Projects / Operations -
Similarities
 Performed by the people
 Limited resources
 Planned, executed and controlled
Are these projects or
operations?
 Building a house
 Baker baking cakes
 Going on a pilgrimage
 Daily visit to a temple
 Organizing a college festival
 Purchasing a new Car
 Processing monthly payroll
Managing a project
 Includes
 Establishing clear and achievable objectives
 Identify requirements
 Identifying the resource requirements
 Balancing competing demands
 Addressing stakeholder needs
 Tracking the progress – taking corrective actions
 Learning experience - all the way
Triple Constraint

Sc
op
e
e
Tim

Quality

Cost
Stakeholders
 Persons and organizations that are actively involved
in the project, or whose interests may be positively
or negatively affected by execution or completion of
a project

 Stakeholder management :
 Identify stakeholders
 Understand their needs
 Understand their expectations
 Manage their needs & expectations throughout the project
Project Management Knowledge
Areas
• What are different elements and how will they be
coordinated
– INTEGRATION

• What needs to be done?

- SCOPE

• What is the sequential order and pace of the tasks

involved?
- SCHEDULE & TIME
Project Management Knowledge
Areas

• How much will the tasks and resources cost?

- Cost

• Produced to what standards?

– Quality
Project Management Knowledge
Areas
• What people are required, with what skills?
– HUMAN RESOURCES

• Who need to be informed, about what and when?

– COMMUNICATIONS

• What is the degree of uncertainty associated with the work?

– RISK

• What must be procured, or what resources must be contracted

for?
- PROCUREMENT
Areas of Expertise
 Application area knowledge
 Standards and Regulations
 Project environment
 General Management knowledge and
skills
 Interpersonal skills
Related Endeavors
 Programs
 Group of projects managed in a coordinated way to obtain benefits not
available from managing them individually

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

 Subprojects
 Parts of a project

 PMO
 Organizational unit to centralize and coordinate management of
projects under its domain.
 Project phases
 Project Phase
 The portions / segments that a project is broken in,
to enable better management control and
appropriate links to ongoing operations
 Life Cycle
 Project Phases collectively form the life cycle
 Serves the definite beginning and the end of a
project
 Determines which transactional actions at the end of
the project are included and which are not
Project life cycle vs. product
life cycle

 Project life cycle phases

 Initial Phase

 Intermediate Phase

 Final Phase (Closure)

Phase Characteristics
 Phases are sequential
 Output of one phase is input to
succeeding phase
 Usually phase end is formally
recognized thru a review
 Usually initiation of new phase is
formally authorized
 Kill points or stage gates
Project Management
– Relationship to Other
Disciplines
 Supporting Disciplines
 Financial Management
 Purchase/Procurement
 Contracts and commercial law
 Logistics and Supply Chain
 Strategic, Tactical and Operational Planning
Project Management
– Relationship to Other
Disciplines
 Supporting Disciplines
 Organizational Behavior
 Health and Safety Practices
 Application/ Technical Management
Project Management
– Desired Interpersonal Skills
 Effective Communication
 Influencing the organization
 Leadership
 Motivation
 Negotiation & Conflict Management
 Problem Solving
People & organizations
 Organization types
 Functional
 Project Based
 Matrix
Functional organization
 Characteristics
 Employees are grouped by specialty
 Each employee has a Line Manager, who is
also a Functional Manager
 People are assigned to projects from each
functional area
 Functional organization
senior management

n
atio
in
o ord
ctc Functional Functional Functional
e
P roj Manager 1 Manager 2 Manager n

staff staff staff

staff staff staff

staff staff staff

 Functional Organization
Potential Advantages

 Clear reporting relationships

 Highly specialized expertise
 Homogeneous group
 Drive for technical excellence
Functional Organization
Potential Issues
 People lay more emphasis on their
functional specialty to the detriment of
project
 Barrier to customer influence and
satisfaction
 Project manager dependent on personal
influence; has little authority
 Hierarchical decision and communication
processes
 Fosters part-time roles
 Project Based
Organization
 Organization Characteristics
 (usually) Organizations that derive revenue
from performing projects for others
 Organizations that have adopted
management by projects
 Management By Projects: treats many
aspects of ongoing operations as
projects in order to apply project
management to them.
 Project Based Organization
senior management

ti on
dina
r
coo Project Project Project
ct
o je Manager 1 Manager 2 Manager n
Pr

staff staff staff

staff staff staff

staff staff staff

Project-Based Organization
Potential Advantages
 Strong project manager role
 Full-time administrative staff
 Clear accountability
 Improved focus
 Cost and performance tracking
 Decision-making
 Customer relationships
 Common processes
Project-Based Organization
Potential Issues
 Lessening of employee’s “professional”
identity
 Reduced focus on technical competence
 Leadership by the non technically skilled
 Focus on management work versus
technical
 Devaluing of functional managers
 Process versus deliverable emphasis
Matrix
 Somewhere in the middle of the spectrum
 Types of matrix organization
 Weak matrix – inclined towards functional
 Balanced matrix –on the fence
 Strong matrix – inclined towards project based
 Characteristics
 Depends on the inclination and matrix type
Weak matrix

senior management

Functional Functional Functional

Manager 1 Manager 2 Manager n

staff staff staff

staff staff staff

n
staff staff staff atio
r din
o
t co
ec
P roj
Balanced matrix
senior management

Functional Functional Functional

Manager 1 Manager 2 Manager n

staff staff staff

staff staff staff

Project staff staff ti on

Manager dina
r
coo
t
o jec
Pr
 Strong matrix
senior management

Functional Functional Functional Manager of

Manager 1 Manager 2 Manager n Project Managers

staff staff staff Project Manager

staff
n staff staff Project Manager
ti o
di na
o or staff staff staff Project Manager
ctc
roje
P
 Organizational influence
Organization Functional Matrix Project
type based
Project Weak Balanced Strong
Characteristi
cs
Project Little or None Limited Low to Moderate to High to almost
Manager’s moderate high total
authority
% of Virtually none 0-25% 15-60% 50-95% 85-100%
organization’s
personnel
assigned full time
to project work
Project Manager’s Part time Part time Part time Full time Full time
role

Common titles for Project Project Project Project Project

Project Manager’s coordinator / coordinator Manager / Manager / Manager /
role Project Leader / Project Project Officer Program Program
Leader Manager Manager
Project Part time Part time Part time Full time Full time
Management
Administrative
staff
 Organizational peculiarities
Functional Matrix Project based
 Controlled by  Difficult to manage  Easiest for the project
functional managers  Tussle between manager
 Resources do not functional and project  Resources have no
belong to a project managers home
 Resources have a  Complex structure  Skill specialization is
permanent home to with many variations low
return to after a  Communication
project intensive
 Resources have
strong skill bases
 Works better for
larger organizations
 Projects are run by
functional managers
in silos
 Project coordinators
are just
Project Management
Processes
 Process: A set of interrelated actions and
activities that are performed to achieve a pre-
specified set of products, results and services
 Project Management is accomplished thru
processes
 Project Manager along with project team
decides
 Appropriate processes
 Degree of rigor
Project Management Process
Groups
 Initiating
 Planning
 Executing
 Monitoring and controlling
 Closing
Process group interactions
Monitoring
and
controlling process

Planning
process

Initiation Closure
Process Process

Executing
process
 Process life spans and
interactions
executing process
level of activity

planning process closing process

initiating process
controlling process

time

 Project management processes are not one time discrete events

 They overlap and iterate at various intensities over the lifespan of
a phase
 Process group interactions also overlap across phases. Closing one
phase provides an input to the initiating of the next.
Initiating Processes
 Authorization to start a new project or
phase
 External to the project
 Activities Include
 Developing Project Charter
 Developing Preliminary Scope Statement
Planning Processes
 Prepare project plan
 This process group contains maximum
processes
 Planning is an iterative process
Planning Processes
 Key Planning processes
 Scoping
 Estimation
 Scheduling
 Risk Management
 HR
 Purchase and Contracts
 Costing
 Quality
 Communication
Process flows: planning Monitoring &
Controlling
Process Group

Scope Planning Scope Definition

Develop Project Activity

Initiating Management Activity
Process Group Resource Definition
Plan
Estimating

Activity Duration
Create WBS Estimating

Risk
Management Cost Estimating
Planning Activity
Sequencing

Cost
Risk Budgeting
Identification
Schedule
Development

Qualitative Risk HR Planning

Analysis

Quality Planning
Quantitative
Risk Analysis
Executing
Process Group
Communication
Planning

Plan Purchases
& Acquisitions Plan contracting Closing
Process Group

Risk Response
Planning
Executing Processes
 Carry out work to create project’s
product as per the plan
 Direct and manage project execution
 Resource Management
 Risk Management
 Execution of Purchases and Contracts
 Quality Assurance
 Communication Management
Executing processes
Monitoring and Controlling
Processes
 Monitor
execution
and control
deviation
Closing Processes
 Formally
close a
project or a
project Phase

 Closure may
not always
be normal
end