Texts and Reference Material

• Project Management Institute, Guide to the Project Management Body of

Knowledge (PMBOK), 2004
http://www.pmi.org

Other topics
Budgeting and Cost Estimation
Scheduling and Networking
Resource Allocation
Monitoring and Information system
Project Control

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OUT LINE FOR TODAY
• What is a project?
• What is Project Management?
• The Context for Project Management
• The Project Management Process
• Knowledge areas for project
management

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 PROJECT MANAGEMENT

Overview and Concepts

Lec 2

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Project Management and Other
Management Disciplines

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The Context for Project
Management
• The Project Life Cycle
• Project Stakeholders
• Organizational Influences

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The Project Life Cycle
• The project life cycle serves to define the
beginning and the end of a project
• The life cycle is normally divided into a
number of phases
• Each project phase is marked by
completion of one or more deliverables
• A deliverable is a tangible, verifiable work
product such as a
– feasibility study, a detail design, or a working
prototype

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A Generic Life Cycle

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Project Stakeholders
• Project stakeholders are individuals and
organizations who are actively involved in the
project, or whose interests may be positively or
negatively affected as a result of project execution
or successful project completion

• The project management team must identify the

stakeholders, determine what their needs and
expectations are, and then manage and influence
those expectations to ensure a successful project

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Key Stakeholders
• Key stakeholders on every project include:
• Project manager
• the individual responsible for managing the project.
• Customer
• the individual or organization who will use the project product
• Performing organization
• the enterprise whose employees are most directly involved in
doing the work of the project.
• Sponsor
• the individual or group within the performing organization who
provides the financial resources, in cash or in kind, for the
project.
• Project team members
• the people doing the work on the project to “realise” a product

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Influence of Organizational
Structure on Projects

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Organizational Influences
• Conduct of Projects is influenced by:
• Organizational Structure
• range from fully functional to totally project oriented
• Organizational Culture
• Conservative or Aggressive
• Participative or Authoritarian
• Organizational Systems
• Suitability of support functions such as finance,
human resource management or strategic planning
for project work

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Area of Expertise

• The PMBOK
• Application area knowledge, standards
and regulations
• Understanding the project environment
• General management knowledge and skills
• Interpersonal skills

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PMBOK

• Project Life Cycle

• Five Project Management Process groups
• Nine Knowledge Areas

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Application Area Knowledge ,
Standards and regulations
• Financial Management & Accounting
• Purchasing and Procurement
• Sales and Marketing
• Contracts and Commercial Law
• Manufacturing and Distribution
• Logistic and Supply Chain Management
• Strategic Planning , tactical planning and operational
planning
• Organizational Structure
• Health and Safety Practices
• Information Technology

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Understanding the Project
Environment
• Cultural and social environment
• International and political environment
• Physical Environment

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Interpersonal Skills
• General management encompasses planning, organizing, staffing,
executing, and controlling the operations of an ongoing
enterprise.

• General management also includes supporting disciplines such as

computer programming, law, statistics and probability theory,
logistics, and personnel.

• Following general management skills are critical for successful

project management:

– • Leading
– • Communicating
– • Negotiating
– • Problem Solving
– • Influencing the Organization

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LEADERSHIP

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Communicating

• Exchange of information
• Internal & external
• Formal & informal
• Vertical and horizontal

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Negotiating

• Negotiating involves conferring with others

to come to terms with them to reach an
agreement. Negotiations can be on the
following:
– Scope, cost and schedule
– Changes to scope, cost and schedule
– Contract terms and conditions
– Assignments and resources

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Problem Solving

• A combination of problem definition and

decision making
• Problem definition requires distinguishing
between causes and symptoms
• Decision making includes analyzing the
problem to identify viable solution

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Influencing the organization

• Ability to get things done

• Requires an understanding of both the
formal and informal structures of all the
stakeholders
• An understanding the mechanics of power
and politics

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 Planning and the project life
cycle
Accumulated
effort and cost

Cost
of change

Level of influence

planning implementation completion

• Important to get the plan right as it is cheaper and

easier make changes at this stage in the process
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10 Reasons Why Projects
Fail
Scop
e Poor
Cree
p sor ship
Spon
Poor ito r i ng
n
Plan
ning o o r Mo ent
P r e m
su
Ineff / Mea
ectiv
e Co o n t rol
mmu
Ch a nge C
nicat
Ill-Sp ion Poor t S kills
ecifi
ed D u ff icien
elive te / Ins
rable pria
High s
a p p r o e nt of
Turn In m ility
over a s sign ta b
of P
rojec nc lear a c c oun
U /
t Tea
s ib ility
m on
r esp
Source: Gartner Group, July
1998 and Accenture analysis
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Costs of Poor Project
Management
• 31% of all new software development A survey on overall applications development projects revealed:

projects are cancelled before completion – 46% of IT projects were "challenged" (completed over budget
and past the original deadline).

• 53% of projects cost >189% of original – 6% of projects succeeded.

estimates – 28% of projects failed.

• 16.2% of software projects completed

on time and on budget

• Average overrun is 222% of original

estimates

Source: Standish Group, 1995

Source: Standish Group, 1998

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Project Management Process

• The purpose of the Project

management process is to identify,
establish, and coordinate and
monitor activities, tasks, and
resources necessary for a project to
produce a product and/or service
meeting the agreed requirements.

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Outcomes of Project
Management
• As a result of successful implementation of the process:
– • the scope of the work for the project will be defined;
– • the feasibility of achieving the goals of the project with
available resources and constraints will be evaluated;
– • the tasks and resources necessary to complete the work will
be sized and estimated;
– • interfaces between elements in the project, and with other
projects and organizational units, will be identified and
monitored;
– • plans for execution of the project will be developed and
implemented;
– • progress of the project will be monitored and reported;
– • actions to correct deviations from the plan and to prevent
recurrence of problems identified in the project, will be taken
when project targets are not achieved.

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Knowledge Areas for Project
Management

• Project Integration Management

• Project Scope Management
• Project Time Management
• Project Cost Management
• Project Quality Management
• Project Human Resource Management
• Project Communications Management
• Project Risk Management
• Project Procurement Management

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A Framework for Project
Management

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Project Integration Management
• Describes the processes required to ensure that the various
elements of the project are properly coordinated.
– Tradeoffs among competing objectives and alternatives to meet
or exceed stake holders needs or expectations

• Consists of
– • project plan development
– Integrating and co-ordinating all project plans to create a
consistent, coherent document
– • project plan execution
– Carryout the project plan by performing the activities included
therein
– • overall change control.
– Co-ordinating the changes across the entire project

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Project Scope Management
• Describes the processes required to ensure that the project
includes all the work required, and only the work required,
to complete the project successfully.
• Consists of
– • initiation
– Authorizing the project phase
– • scope planning
– Developing a written scope statement as the basis for future project decisions
– • scope definition
– Subdividing the project deliverables into smaller, more manageable
components
– • scope verification
– Formalizing the acceptance of the project scope
– • scope change control.
– Controlling the changes to project scope

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Project Time Management
• Describes the processes required to
ensure timely completion of the project.
• Consists of
– • activity definition
– • activity sequencing
– • activity duration estimating
– • schedule development
– • schedule control

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 Project Cost Management
• Describes the processes required to ensure that the
project is completed within the approved budget.
• Consists of
– • resource planning
– Identify people, equipment and material
– • cost estimating
– Developing an approximation of the cost of resources
– • cost budgeting
– Allocating the overall cost estimate to individual work activities
– • cost control
– Controlling changes to the project budget

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Project Quality Management
• Describes the processes required to ensure that the
project will satisfy the needs for which it was
undertaken.
• Consists of
– • quality planning
– Identifying relevant quality standards
– • quality assurance
– Planned and systematic activities implemented within the
quality system
– • quality control.
– Monitoring specific project results

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Project Human Resource
Management
• Describes the processes required to make the
most effective use of the people involved with the
project
• Consists of
– • organizational planning
– Identifying, documenting and assigning project roles and
responsibilities
– • staff acquisition
– Getting the human resource needed, assigned to and working
on the project
– • team development.
– Developing individual and group competencies to enhance project
performance

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Project Communications
Management
• Describes the processes required to ensure
timely and appropriate generation,
collection, dissemination, storage, and
ultimate disposition of project information
• Consists of
– • communications planning
– • information distribution
– • performance reporting
– • administrative closure.

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Project Risk Management
• Describes the processes concerned with identifying,
analyzing, and responding to project risk
• Consists of
– • risk identification
– • risk quantification
– • risk response development
– • risk response control
• An effective software measurement process can
provide early warning of problems associated with
risks
– • indicators can be used to project any trends
– • early warning can allow action in time to prevent problems

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Project Procurement
Management
• Describes the processes required to
acquire goods and services from outside
the performing organization
• Consists of
– • procurement planning
– • solicitation planning
– • source selection
– • contract administration
– • contract close-out

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Summary
• Project Management Introduction
– • What is a project?
– • What is Project Management?
– • The Context for Project Management
– • The Project Management Process
– • Knowledge areas for project
management

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Exercise

Take a few minutes to write down

answers to:
• What are the main ideas I have
learned today?
• What am I still confused about, or
don’t understand?

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