Key Concepts (Chapter 1.

Introduction)
 Project: A project is a temporary endeavor undertaken to create a unique product, service, or result (Even a
combination of them). In general terms a project is undertaken to fulfill objective by producing deliverables.
o When we say that a project is a temporary endeavor, we are not talking about a short duration. It means
that every project has a definite beginning and end.
o Projects drive change, a project is aimed at moving an organization from one sate to another.
o Project enable business value creation; business value refers to the benefits (tangible or intangible)
obtained as result of a project.
o Project initiation context. The projects are done in response to factors acting upon the organizations.
 Project Management: Is the application of knowledge, skills, tools, and techniques to meet the project
requirements. Project management enable organizations to execute projects effectively & efficiently.

 Program: Is defined as group of related projects, subsidiary programs, and

program activities managed in a coordinated manner to obtain benefits not available
from managing them individually.
 Portfolio: Projects, programs subsidiary portfolios and operations managed as a
group to achieve strategic objectives.

- A portfolio is created by an organization.

- A portfolio has both projects & programs.
- A program cans has several projects.

 Project Life Cycle: Is the series of phases that a project passes through from its start to its completion.
 Project Management Processes: Series of PM activities, all these processes produce outputs (deliverables or
outcomes) from one or more inputs.

 10 Knowledge Areas

Integration Resource
Scope Communications
Schedule Risk
Cost Procurement
Quality Stakeholder

 Tailoring: Is the selection of appropriate activities as each

project is unique (Processes, inputs, tools, techniques, outputs,
life cycles)
Key Concepts (Chapter 2. The Environment in which Projects Operate)
 Enterprise Environmental Factors: Refers to conditions not under the control of the project team, that influence
constrain, or direct the project. These conditions can be internal and/or external the organization. These factors
are considered as inputs.
o Factors Internal to the Organization:
 Organizational culture, structure,  Infrastructure
and governance.  Information Technology software
 Geographic distribution of facilities  Resource availability
and resources.  Employee capability

o Factors External to the Organization:

 Marketplace conditions  Government or industry
 Social and cultural influences standards
and issues  Financial considerations
 Legal restrictions  Physical environmental
 Commercial databases elements
 Academic research

 Organizational Process Assets: Are the plans, processes, policies, procedures, and knowledge bases specific to and
used by the performing organization. These assets influence the management of project.
o Processes, policies and procedures: Are not updated as part of the project work, these assets are usually
established by the project management office (PMO) or another function outside the project.
o Organizational Knowledge Bases: Are updated throughout the project with project information.
 Organizational systems: The interactions of multiple factors within an individual organization creates a unique
system that impacts the project operating in that system. The resulting organizational system determines the
power, influence, interests, competence, and political capabilities of the people who are able to act within the
system.
o Management Elements
o Governance Frameworks
o Organizational Structure
types.

 Project Management Office (PMO): Is an organizational structure that standardizes the project-related
governance processes and facilitates the sharing of resources, methodologies, tools, and techniques. It provides
PM support functions to the direct management of one or more projects. Below it can be found the 3 different
types of PMO’s:
o Supportive – Consultative role, it has a low degree of control.
o Controlling – Supportive role, it has moderate degree of control.
o Directive –Manage role, it has high degree of control.

Reflection: These chapters introduce us to the world of PM, now we are going to be able to understand the concepts
related to this area of knowledge.