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
