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Chapter-1

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What is a Project?

?

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What is a Project?

A project is a sequence of unique, complex andconnected activities having one goal or purposethat must be completed by a specific time, wthinbudget and according to specification.

A project is a complex, nonroutine, one-time effortlimited by time, budget, resources, andperformance specifications designed to meetcustomer needs.

Projects are ad hoc, resource-consuming activities

used to implement organizational strategies,achieve enterprise goals and objectives, andcontribute to the realization of the enterprisesmission.

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Aproject is a temporary

endeavor undertaken to createa unique product, service or

result.

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A Project can Create

A product that can be either a component ofanother item or an end item in itself.

A capability to perform a service(e.g., a businessfunction that supports production or

distribution).A result such as an outcome or a document (e.g.,

a research project that develops knowledge thatcan be used to determine whether a trend ispresent or a new process will benefit society).

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Main features of a Project -Revision

It is a temporary endeavor undertaken.

To create a unique product, service or result

Temporary, therefore, has a start and an end

End is reached when Objectives have been achieved

When objectives will not or cannot be met

Need for the project does no longer exist

What can be the duration of a project?

What about the outcome of a project?

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Examples of Projects

Developing a new product or service (Why) Effecting a change in the structure, staffing or style of

an organization

Developing or acquiring a new modified informationsystem (DAR)

Constructing a building or infrastructure (Motorway)

Implementing a new business process or procedure

(Cut down cost / material / HR) Give examples of Projects in Pakistan / World

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A Typical Project Life-Cycle

9

Phase 1: Conceptual Phase 2: Planning Phase 3: Execution Phase 4: Termination

Dollarsof

Manhours(levelofEff

ort)

Identify Need Establish Feasibility

Identify Alternatives Prepare Proposal Develop BasicBudget and Schedule

Identify Project Team

Identify Schedule Conduct Studies and

analyses Design System Build/test prototypes Analyze results Obtain approval for

production

Procure Materials Build/ test tooling

Develop supportrequirements Procure System Verify Performance Modify as required

Train functionalpersonnel

Transfer materials Transfer

responsibility Release resources Reassign project

team members

David I. Cleland / Lewis R. Ireland, Project Management: Design and Strategic Implementation, 4th ed., p. 50.

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What is Project Management? It is the application of:

Knowledge

Skills

Tools

Techniques

To do project activities to meet project requirements It is accomplished through appropriate application and

integration of 42 logically grouped project managementprocesses comprising the 5 process groups.

What are those FIVE Process Groups?What are those 9 Knowledge Areas in

Projects?

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Mapping the Processes

Initiating

P.G.

Planning

P.G.

Executing

P.G.

Controlling

P.G.

Closing

P.G.

4. ProjectIntegrationManagement

4.1 DevelopProjectCharter

4.2 Develop ProjectManagement Plan

4.3 Direct &ManageProjectExecution

4.4 Monitor &Control ProjectWork

4.5 PerformIntegrated ChangeControl

4.6CloseProjectorPhase

5. Project ScopeManagement

5.1 CollectRequirements5.2 Define Scope

5.3 Create WBS

5.4 Verify Scope5.5 Control Scope

6. Project TimeManagement

6.1 Define Activities6.2 Sequence Activities6.3 Estimate Activity

Resources6.4 Estimate ActivityDuration6.5 Develop Schedule

6.6 ControlSchedule

7. Project CostManagement

7.1 Estimate Costs

7.2 Determine Budgets

7.3 Control Costs

11

PM

Knowledge Area

Process

Group

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Mapping the Processes (cont.)Initiating

P.G.

Planning

P.G.

Executing

P.G.

Controlling

P.G.

Closing

P.G.8. Project QualityManagement

8.1 Plan Quality 8.2 Perform QualityAssurance

8.3 PerformQuality Control

9. Project HumanResourceManagement

9.1 DevelopHuman ResourcePlan

9.2 Acquire Project Team9.3 Develop Project Team

9.4 Manage Project Team

10. ProjectCommunications

Management

10.1Identify

Stakeholder

10.2CommunicationsPlanning

10.3 InformationDistribution

10.4 Mange Stakeholders

10.5 ReportPerformance

11. Project Risk

Management

11.1 Plan RiskManagement11.2 Identify Risk

11.3 PerformQualitative RiskAnalysis11.4 PerformQuantitative RiskAnalysis11.5 Plan RiskResponses

11.6 Monitor &Control Risk

12

PM

Knowledge Area

Process

Group

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Mapping the Processes (cont.)Initiating

P.G.

Planning

P.G.

Executing

P.G.

Controlling

P.G.

Closing

P.G.

12. Project

ProcurementManagement

12.1 PlanProcurement

12.2 ConductProcurement

12.3 Administer

Procurement

12.4 CloseProcurement

13

PM

Knowledge Area

Process

Group

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Contribution from Waqas Qazi (MPM-501)

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Why Projects?

Tomeet strategic business goals and objectives:Strategic opportunity

Business needs

Customer requestTechnological advance

Legal requirements

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1.Project aligned with organizational objectives and customer needs2.Preliminary scope statement includes stakeholder needs and expectations3.High-level risks, assumptions are understood4.Stakeholders identified and their needs understood

5.Project charter approved

1 .Project scope agreed2.Project schedule approved3.Cost budget approved4.Project team identified with roles and responsibilities agreed5.Communications activities agreed6.Quality management process established7.Risk response plan approved8.Integrated change control processes defined9.Procurement plan approved10.Project plan approved

1.Project scope achieved2.Project stakeholders expectations managed3.Human resources managed4.Quality managed against plan5.Material resources managed

1.Project tracked and status communicated to stakeholders

2.Project change is managed3.Quality is monitored and controlled4.Risk is monitored and controlled5.Project team is managed6.Contracts administered

1.Project outcomes accepted2.Project resources released3.Stakeholder perceptions measured and analyzed4.Project formally closed

What is Project Management?

Project Initiation

Project Planning

Project Execution

Project Monitoring& Change Mgt.

Project Closing

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Relationship Between Project Management

Program Management

Portfolio Management

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What is Portfolio Management?

Aportfolio is a collection of projects or programsand other work that are grouped together tofacilitate effective management of that work tomeet strategic business objectives.

The projects or programs in the portfolio may notnecessarily be interdependent or directly related.

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Examples of Portfolio Management

An infrastructure firm that has the strategicobjective of maximizing the return on itsinvestments may have a portfolio of:

Projects in oil & gas

Projects in power

Projects in water

Projects in roads

Projects in rail

Projects in airports

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Program Management

Program Management is defined as a group of relatedprojects managed in a coordinated way to obtainbenefits and control not available from managingthem individually.

Programs may include elements of related work outsidethe scope of the discrete projects in the program

A program will always have projects.

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Program Management

It focuses on the project interdependencies and help todetermine the optimal approach for managing them.

Resolve resource constraints & conflicts

Aligning organizational direction Resolve issues and change management within a

shared governance structure

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Example of a

Program Management

A new communication satellite system:

Designing of a satellite and ground system

Construction of a satellite and ground station

Integration of the system Launching of the satellite

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Project Management Office (PMO)

It is an organized body or entity assigned coordinatedmanagement of projects under its domain

It is the key decision maker during the beginning of eachproject

It is also responsible for the selection, management anddeployment of shared or dedicated project resources

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Functions of (PMO)

1. Managing shared resources

2. Identifying & developing project managementmethodology, best practices and standards

3. Coaching, monitoring, training and oversight4. Monitoring compliance project audits

5. Developing & managing project policies,procedures, templates and other standard

documentation?6. Coordinating communication across projects

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Project Manager

Focuses on a specific project objective

Controls resources to best meet project objectives

Manages the constraints (scope, schedule, cost, risk,

human resources and quality etc)of individual project

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Main Functions of a Project Manager

Define scope of projectIdentify stakeholders & Leadership (decision

makers: Client, Parent organization, ProjectTeam, Publics)

Evaluate project requirements

Develop detailed task list (work breakdown,structures)

Develop initial project management flowchart

Estimate time requirementsIdentify cost estimation and budgetIdentify required resources and evaluate risks

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Main Functions of a Project Manager

Prepare contingency planIdentify interdependencies

Identify and track critical milestones

Secure needed resources, manpower

Participate in project phase review

Manage the change control process

Report project status

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Project Management Vs

Operation Management

How they are different?

When do they interact?

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Project VS Operations

PROJECTS OPERATIONSProjects require Project Management Operations require Business ProcessManagement or Operations Management

Temporary Undertakings Permanent Endeavors

Temporary Assignments Ongoing nature of Operations

Produce Unique Outputs Produce Repetitive Outputs

Temporary Resourcing Permanent Resource Assignments

Executed according to Project Management Plan Executed as per standards (SOPs)

objectives and then terminate institutionalized in product life developed.

Concludes when its specific objectives have been Sustain the business

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Project Vs Production Interaction

Projects can intersect with operations at variouspoints during the product life cycle:

At each closeout phase

When developing a new product, upgrading aproduct, or expanding outputs

Improvement of operations or the productdevelopment process

Until the divestment of the operations at the endof the product cycle

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Enterprise Environmental Factors

Organizational culture, structure & processes Government or industry standards Infrastructure: Existing facilities and capital equipment Existing human resource

Marketplace conditions Stakeholder risk tolerance Potential climate Political climate Established communication channels Commercial databases: cost, risk study / info Project management information systems (blog)