Module 1

Introduction to Project Management

 PMI & PMP

The Project Management Institute (PMI) is

project management professional
association with over 500,000 member.
Established in 1969 and located in US.

Project Management Professional (PMP)

credential recognizes demonstrated
knowledge and skill in leading and
directing project teams and in delivering
project results within the constraints of
schedule, budget and resources.

PMI, PMBOK, PMP are registered marks of Project Management Institute, Inc.
 The Project Management Framework

Module 1 Introduction

Module 2 Organizational Influences and Project Life Cycle

Module 3 Project Management Process for a Project

 PMBOK Guide

Is a standard (formal document that describes established norms,

methods, processes and practices)
Guidelines for managing individual projects
A good practices which are applicable to most project most of the
time
A common vocabulary within project management profession
A foundational project management reference

PMI Code of Ethics and Professional Conduct is also requirement

for PMP certification
 Advantages of Using Formal Project Management

Better control of financial, physical, and human resources

Improved customer relations Improved customer relations
Shorter development times
Lower costs
Higher quality and increased reliability
Higher profit margins
Improved productivity
Improved productivity
Better internal coordination
Higher worker morale (less stress)
 What is Project?

A Project is a temporary endeavor undertaken to create a unique, product,

service, or result.

Temporary = a definite beginning and end.

Repetitive elements may be present but has fundamental uniqueness

Is progressively elaborated.

Distinguishing characteristics of each unique project will be

progressively detailed as the project is better understood.
 Project Attributes

A project:

Has a unique purpose

Is temporary
Is developed using progressive elaboration
Requires resources, often from various areas
Should have a primary customer or sponsor
The project sponsor usually provides the direction and funding for the
project
Involves uncertainty
 Project vs. Operational Work

Projects Operations
To attain its objectives and terminate To sustain the business
Create own character, organization, and Semi permanent charter, organization, and
goals goals
Catalyst for change Maintain status quo
Unique product or services Standard product or services
Heterogeneous teams Homogeneous teams
Start and end date Ongoing

Examples
Producing a News letter
Writing and publishing a book
Implementing a LAN
Hiring a sales man
Arrange for a conference
Opening for a new shop
Producing the annual report
Examples
Responding to customers requests
Writing a letter to a Prospect
Hooking up a Printer to a computer
Meeting with an employee
Attending a conference
Opening the shop
Writing a progress update memo
 What is Project Management?

The application of knowledge, skills, tools and technique to project

activities to meet project requirements

Project Management is accomplished through the application and

integration of the processes which are grouped in the 5 process groups:
1. Initiating
2. Planning
3. Executing
4. Monitoring and Controlling
5. Closing

Due to the nature of change, managing project is iterative and goes

through progressive elaboration throughout the projects lifecycle
 Managing Project

The Project Manager is the person responsible for accomplishing

the project objectives.

Managing a project includes:

Identifying requirements.
Establishing clear and achievable objectives.

Balancing the competing demands of quality, scope, time and cost.

Adapting the specifications, plans, and approach to the different

concerns and expectations of the various stakeholders.
 Project Constraints

Every project is constrained in different ways by its:

Scope
Schedule/Time

Cost/Budget

Quality

Resources

Risk

The Triple Constraint

or
The Trade-off Triangle

SCOPE/QUALITY
Figure 1-1. The Triple Constraint of Project Management

Successful project
management means
meeting all three
goals (scope, time,
and cost) and
satisfying the
projects sponsor!

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 Projects and Strategic Planning

Projects are means of

Achieving organizations strategic plan.
Organizing activities that cannot be addressed within the organizations normal
operational limits.

Projects are typically authorized as a result of one or more of the

following strategic considerations:
Market demand
Strategic opportunity/business need
Customer request
Technological advancement
Legal requirements
Ecological Impacts
Social need
Project Management Framework
 Project Management Knowledge Areas

Four core knowledge areas lead to specific project objectives.

Project scope management involves defining and managing all the work required to
complete the project successfully.

Project time management includes estimating how long it will take to complete the
work, developing an acceptable project schedule, and ensuring timely completion of
the project.

Project cost management consists of preparing and managing the budget for the
project.

Project quality management ensures that the project will satisfy the stated or implied
needs for which it was undertaken.
 Project Management Knowledge Areas

Five facilitating knowledge areas are the means through which the
project objectives are achieved.

Project human resource management is concerned with making

effective use of the people involved with the project.
Project communications management involves generating, collecting,
disseminating, and storing project information.
Project risk management includes identifying, analyzing, and responding
to risks related to the project.
Project procurement management involves acquiring or procuring goods
and services for a project from outside the performing organization.
Project stakeholder Management
 Project Management Tools and Techniques

Project management tools and techniques assist project

managers and their teams in various aspects of project
management.

Note that a tool or technique is more than just a software package.

Specific tools and techniques include:

Project charters, scope statements, and WBS (scope)
Gantt charts, network diagrams, critical path analyses (time)
Net present value, cost estimates, and earned value management (cost)
 Project Success

There are different ways to define project success:

The project met scope, time, and cost goals.

The project satisfied the customer/sponsor.

The project produced the desired results.

 Relationships Among Project Management, Program
Management and Portfolio Management

Project Management
Program Management

Portfolio Management
Portfolio

Project Management Office

Program

PMO
Projects & Operation
 What is a Program?

A program is:
a group of related projects managed in a coordinated way to
obtain benefits and control not available from managing them
individually.
A program manager provides leadership and direction for the
project managers heading the projects within the program.

ADVANTAGES
Decreased risk

Economies of Scale
 Portfolios and Portfolio Management

A portfolio is a collection of projects or programs and

other work that are grouped together to facilitate
effective management of that work to meet strategic
business objectives.

Portfolio managers help their organizations

make wise investment decisions
by helping to select and analyze projects from a strategic
perspective
 Project and Program Managers

Project managers work with project sponsors, project

teams, and other people involved in projects to meet
project goals.
Program: A group of related projects managed in a
coordinated way to obtain benefits and control not
available from managing them individually.*
Program managers oversee programs and often act
as bosses for project managers.

*PMI, A Guide to the Project Management Body of Knowledge

(PMBOK Guide) (2013)

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Comparative Overview
 Projects and Strategic Planning

Projects are means of organizing activities that cannot be addressed

within the organizations normal operational limits.

Projects are typically authorized as a result of one or more of the

following strategic considerations:
A Market Demand & Organizational Need

A Customer Request

A Technological Advancement

A Legal Requirement
 Subprojects

Projects are frequently divided into more manageable components or

subprojects.

Subproject are often contracted to an external enterprise or to another

functional unit in the performing organization.
Subprojects can be referred to as projects and managed as such
 PMO

A department that centralizes the management of projects.

A PMO usually takes one of three roles:

Project Support: Provide project management guidance to project

managers in business units.
Project Management Process/Methodology: Develop and implement
a consistent and standardized process.
Training: Conduct training programs or collect requirements for an
outside company
 Primary Function of PMO

A Primary function of PMO is to support project managers in a

variety of ways which may include, but are not limited to:
Managing shared resources across all the projects administered by the
PMO
Identifying and developing project management methodology, practices &
standards
Coaching, mentoring , training and oversight
Monitoring compliance with project management standard policies,
procedures , and templates via project audits .
Developing and managing project policies, procedures, templates, and
other shared documentation ( organizational process assets); and
Co coordinating communication across projects
 Project Management Office (PMO) Contd

Home for project managers: Maintain a centralized office from which

project managers are loaned out to work on projects.

Internal consulting and mentoring: Advise employees about best practices.

Project management software tools: Select and maintain project

management tools for use by employees.

Portfolio management: Establish a staff of program managers who can

manage multiple projects that are related, such as infrastructure
technologies, desktop applications and so on, and allocate resources
accordingly.
 Role of a Project Manager

The Project Manager is the person responsible for

accomplishing the project objectives.

Project managers strive to meet the triple constraint by

balancing project scope, time, and cost goals

Depending on the organization structure , a project manager may

report to functional manager.
 Project Expediter and Coordinator

Project managers role can very limited

Project Expediter
acts primarily as a staff assistant
as communications coordinator.
cannot personally make or enforce decisions.

Project Coordinator
has some power to make decisions

Has some authority

reports to a higher-level manager

 Stakeholders

Stakeholders are persons or organizations who are actively involved in

the project or whose interests may positively or negatively affected by
the performance or completion of the project.

Stakeholders have varying levels of responsibility and authority and

can change over the project life cycle

Project management team must continuously identify both external and

internal stakeholders

Project manager must manage the influence of various stakeholders in

relation to the requirements and balance stakeholders interest
 Stakeholders

Some examples of project stakeholders

 Enterprise Environmental Factors

Refer to both internal & external environmental factors that surround or

influence a projects success
As an input in almost all project management process
May enhance or constrain project management options
May have positive or negative influence on the outcome
Examples:

Organizational culture, structure, and Organizations established

processes communications channels
Government or industry standards Commercial databases
Infrastructure Project management information
Existing human resources
Personnel administration
Company work authorization systems
Marketplace conditions
Stakeholder risk tolerances
Political climate
 Fifteen Project Management Job Functions
Define scope of project.
Identify stakeholders, decision-
makers, and escalation procedures.
Develop detailed task list (work
breakdown structures).
Estimate time requirements.
Develop initial project management
flow chart.
Identify required resources and
budget.
Evaluate project requirements.
Identify and evaluate risks.
Prepare contingency plan.
Identify interdependencies.
Identify and track critical milestones.
Participate in project phase review.
Secure needed resources.
Manage the change control process.
Report project status.
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 Suggested Skills for Project Managers

Project managers need a wide variety of skills.

They should:

Be comfortable with change.

Understand the organizations they work in and with.

Lead teams to accomplish project goals.

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 Suggested Skills for Project Managers

Project managers need both hard and soft skills.

Hard skills include product knowledge and knowing how to use various project
management tools and techniques.

Soft skills include being able to work with various types of people.

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 Suggested Skills for Project Managers

Communication skills: Listens, persuades.

Organizational skills: Plans, sets goals, analyzes.

Team-building skills: Shows empathy, motivates, promotes

esprit de corps.

Leadership skills: Sets examples, provides vision (big picture),

delegates, positive, energetic.

Coping skills: Flexible, creative, patient, persistent.

Technology skills: Experience, project knowledge.

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Media Snapshot Good Project Management Skills from The
Apprentice
Leadership and professionalism
are crucial.
Know what your sponsor expects
from the project, and learn from
your mistakes.
Trust your team and delegate
decisions.
Know the business.
Stand up for yourself.
Be a team player.
Stay organized and dont be overly
emotional.
Work on projects and for people you
believe in.
Think outside the box.
There is some luck involved in project
management, and you should always
aim high.
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 Table 1-4. Most Significant Characteristics of Effective and
Ineffective Project Managers

Effective Project Managers Ineffective Project Managers

Leadership by example Sets bad example
Visionary Not self-assured
Technically competent Lacks technical expertise
Decisive Poor communicator
Good communicator Poor motivator
Good motivator
Stands up to upper
management when
necessary
Supports team members
Encourages new ideas

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 Importance of Leadership Skills

Effective project managers provide leadership by

example.
A leader focuses on long-term goals and big-picture
objectives while inspiring people to reach those goals.
A manager deals with the day-to-day details of
meeting specific goals.
Project managers often take on both leader and
manager roles.

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 History of Project Management

Some people argue that building the Egyptian pyramids was a project, as was
building the Great Wall of China.

Most people consider the Manhattan Project to be the first project to use modern
project management.

This three-year, $2 billion (in 1946 dollars) project had a separate project and
technical managers.

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 Figure 1-4. Sample Gantt Chart

Work Breakdown Structure (WBS)

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Figure 1-5. Sample Network Diagram

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 Project Management Office (PMO)

A PMO is an organizational group responsible for coordinating the project management

function throughout an organization.
Possible goals include:

Collect, organize, and integrate project data for the entire organization.
Develop and maintain templates for project documents.
Develop or coordinate training in various project management topics.
Develop and provide a formal career path for project managers.
Provide project management consulting services.
Provide a structure to house project managers while they are acting in those
roles or are between projects.

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 Project Management Software

Enterprise PM software integrates information from

multiple projects to show the status of active,

approved, and future projects across an entire
organization.

It also provides links to more detailed information on

each project.

Many managers like to see status in color red,

yellow, and green.

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Figure 1-6. Sample Enterprise Project Management Tool

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 The Project Management Profession

Professional societies such as the Project Management Institute (PMI) have

grown significantly.

There are specific interest groups in many areas, such as engineering, financial

services, health care, and IT.

Project management research and certification programs continue to grow.

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 Project Management Certification

PMI provides certification as a Project Management Professional (PMP).

A PMP has documented sufficient project experience, agreed to follow a code of

ethics, and passed the PMP exam.

The number of people earning PMP certification is increasing quickly.

PMI and other organizations are offering new certification programs as CAPM,

Certified Associate in Project Management

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 Figure 1-7. Growth in PMP Certification, 1993-2003
80,000 76,550

70,000
60,000
52,443
50,000
# PMPs

40,000 40,343

30,000 27,052

20,000 18,184

10,000 10,086
6,415
4,400
1,900 2,800
1,000
0
1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003

Year

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 Ethics in Project Management

Ethics is an important part of all professions.

Project managers often face ethical dilemmas.

In order to earn PMP certification, applicants must agree to the PMP code of

professional conduct.

Several questions on the PMP exam are related to professional responsibility,

including ethics.

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 Project Management Software

There are currently hundreds of different products to assist in performing project

management.

Three main categories of tools:

Low-end tools: Handle single or smaller projects well; cost under $200 per
user.

Midrange tools: Handle multiple projects and users; cost $200-500 per user;
MS.Project most popular (includes an enterprise version).

High-end tools: Also called enterprise project management software; often

licensed on a per-user basis; VPMi Enterprise Online (www.vcsonline.com).
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 Summary

As the number and complexity of projects continue to grow, it is becoming even more

important to practice good project management.

A project has several attributes, such as being unique, temporary and developed

incrementally.

A framework for project management includes project stakeholders, the nine knowledge

areas, tools and techniques, and creating project portfolios to ensure enterprise success.

Successful project managers must possess and development many skills and lead their

teams by example.

The project management profession continues to mature as more people become certified

and more tools are created.

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End of Module 1