Chapter 1 1

Chapter 1:Introduction to Project

Management

Chapter 1 4

What is a Project?

• A project is “a temporary effort taken to accomplish a unique product or service”

• Attributes of projects– A project has a unique purpose, resulting in a

unique product, service or outcome. Every project should have a well defined objective.

– A project is temporary. A project has a definite beginning and a definite end.

Chapter 1 5

What is a Project?

– A project requires resources from various areas to achieve their unique purposes. Resources include people, hardware, software or other assets. They must be sued effectively to meet project and other corporate goals.

– A project should have a primary sponsor and/or customer.

– The project sponsor usually provides the direction and funding for the project.

Chapter 1 6

Who is the one responsible for the Project Success ?

• A Project Manager is responsible to a project’s success. Project Managers work with the project sponsor, the project team, and the other people involved in a project to meet project goals.

Chapter 1 7

Samples of IT Projects

• “IT projects” refers to projects involving hardware, software, and networks

• Northwest Airlines developed a new reservation system called ResNet

Chapter 1 8

The Triple Constraint

• Every project is constrained in different ways by itsscope, time and cost goals. The limitations are

sometimes called the triple constraints.– Scope goals: What is the project trying to

accomplish? What unique product or service does the customer or sponsor expect from the project ?

– Time goals: How long should it take to complete the project? What is the project schedule ?

– Cost goals: What should it cost to complete the project?

• It is the project manager’s duty to balance these three often competing goals

Chapter 1 9

The Triple Constraint of Project Management

Chapter 1 10

Triple Constraint

• Managing the triple constraint involves making compromises between scope, time and cost goals for a project. e.g. increasing the budget for a project in order to meet scope and time goals. Or, reducing the scope of a project in order to meet time and cost goals.

• It is the project manager’s job to negotiate with the project team and project sponsor in order to make qualified decisions about the scope, time and cost goals.

Chapter 1 11

Quadruple Constraint

• Triple constraints describes the basic elements of a project. There are also some elements that play significant roles. These are– QualityCustomer or Sponsor satisfaction

Some people believe that quality considerations, including customer satisfaction must be inherent in setting the scope, time and cost goals of a project.Thus , a good project management meets not only the triple constraint (scope, time and cost) but also the quality and customer satisfaction.

Chapter 1 12

What is Project Management?

Project management is “the application of knowledge, skills, tools, and techniques to project activities in order to meet project requirements”.

Chapter 1 13

Key elements of the Frame work

• Project stakeholders.

• Project management knowledge areas.

• Project management tools and techniques.

Chapter 1 14

Project Stakeholders

• Stakeholders are the people involved in or affected by project activities

• Stakeholders include– the project sponsor and project team– support staff– customers– users– suppliers

Chapter 1 15

Project Stakeholders

• The stakeholders often have very different needs and expectations, which are important throughout the life of a project.

• Successful Project Mangers develop good relationships with project stakeholders to understand and meet their needs and expectations.

Chapter 1 16

9 Project Management Knowledge Areas

• A project Manager must have knowledge and skills in all the nine knowledge areas.

• Knowledge areas describe the (skills) that project managers must develop– The four(4) knowledge areas lead to specific project

objectives • Scope management –it involves defining and

managing all the work required to complete the project successfully,

Chapter 1 17

9 Project Management Knowledge Areas

• Time management - it involves estimating how long it will take to complete the work, developing an acceptable project schedule and ensuring timely completion of the project.,

• Cost management- it consists of preparing and managing the budget for the project, and

• Quality management – it ensures that the project will satisfy the stated or implied needs for which it was undertaken.

Chapter 1 18

9 Project Management Knowledge Areas

– The four(4) facilitating knowledge areas of project management by means of which the project objectives are achieved are • human resources management- concerned with

making effective use of the people involved with the project.,

• Communication management – involved in generating, collecting, and sorting project information.,

Chapter 1 19

9 Project Management Knowledge Areas

• Risk management – includes identifying, analyzing and responding to risks related to the project, and

• procurement management – involved in acquiring or procuring goods and services for a project from outside the performing organization.

– 1 knowledge area known as Project Integration management is an overall function that affects and is affected by all of the other knowledge areas.

Chapter 1 20

Project Management Tools and Techniques

• Project management tools and techniques assist project managers and their teams in various aspects of project management

• Some specific ones include– Project Charter, scope statement, and WBS (scope)

– Gantt charts, network diagrams, critical path analysis, critical chain scheduling (time)

– Cost estimates (top-down , Bottom-up, parametric modeling) and earned value management (cost)

– Quality control charts, maturity models (Quality)

Chapter 1 21

Advantages of Using Formal Project Management

• Better control of financial, physical, and human resources

• Improved customer relations• Shorter development times• Lower costs• Higher quality and increased reliability• Improved productivity• Better internal coordination• Higher worker morale

Chapter 1 22

The Project Management Profession

• The job of IT Project Manager is in the list of the top ten most in demand IT skills

• Professional societies like the Project Management Institute (PMI) have grown tremendously

• Project management research and certification programs continue to grow

Chapter 1 23

Top Ten Most in Demand IT SkillsRank IT Skill/Job Average Annual Salary

1 SQL Database Analyst $80,664 2 Oracle Database Analyst $87,144 3 C/C++ Programmer $95,829 4 Visual Basic Programmer $76,903 5 E-commerce/Java Developer $89,163 6 Windows NT/2000 Expert $80,639 7 Windows/Java Developert $93,785 8 Security Architect $86,881 9 Project Manager $95,719

10 Network Engineer $82,906 Paul Ziv, “The Top 10 IT Skills in Demand,” Global Knowledge Webcast (www.globalknowledge.com) (11/20/2002).

Chapter 1 24

Project Management Software

• Three main categories of tools exist:

Low-end tools:

Provide basic Project Management features. Handle single or smaller projects well, cost under $200 per user. Most of these tools allow users to create Gantt charts, online guide and templates for many project Management deliverables, such as reports for project tracking, status reporting, budgeting, time reporting and resource management features.

Chapter 1 25

Sample Gantt Chart

The WBS is on the left, and each task’s start and finish dateare shown on the right using a calendar timescale. Early GanttCharts, first used in 1917, were drawn by hand.

Chapter 1 26

Project Management Software

Midrange tools:

Handle larger projects, multiple projects and multiple users, cost $200-500 per user, Project 2000 most popular which includes, Gantt charts, network diagrams, critical path analysis, resource allocation, project tracking, status reporting and so on.

Chapter 1 27

Sample Network Diagram

Each box is a project task from the WBS. Arrows show dependencies

between tasks. The bolded tasks are on the critical path. If any tasks on thecritical path take longer than planned, the whole project will slip unless something is done. Network diagrams were first used in 1958 on the Navy Polaris project, before project management software was available.

Chapter 1 28

Project Management Software

High-end tools:

Also called enterprise project management software. These tools provide robust capabilities to handle very large projects

Chapter 1 29

Sample Enterprise Project Management Tool

In recent years, organizations have been taking advantage of softwareto help manage their projects throughout the enterprise.

Chapter 1 30

You Can Apply Project Management to Many Areas

• Project management applies to work as well as personal projects

• Project management applies to many different disciplines (IT, construction, finance, sports, event planning, etc.)

• Project management skills can help in everyday life

Chapter 1 31

Project Charter

• A project charter is a document that formally recognizes the existence of a project and provides direction on the project’s objectives and management.

• Back

Chapter 1 32

Scope Statement

• It is a document used to develop and confirm a common understanding of the project scope.

• It describes in detail the work to be done on the project.

back

Chapter 1 33

WBS

• A WBS (Work Breakdown Structure ) is a deliverable oriented grouping of the work involved in a project that defines the total scope of the project.

• It is a tool for breaking down a lot of work into manageable pieces.

• It provides the basis for planning and estimating project time schedules, cost, resources and changes. back

Chapter 1 34

Suggested Skills for Project Managers

• Project managers need a wide variety of skills

• Project managers need both “hard” and “soft” skills. – Hard skills include product knowledge and knowing

how to use various project management tools and techniques, and

– soft skills include being able to work with various types of people

Chapter 1 35

Suggested Skills for a Project Manager

Communication skills: listening, persuading Organizational skills: planning, goal-setting, analyzing and

achieving project goals Team Building skills: empathy, motivate different types of

people effectively, develop esprit de corps within the project team and the stake holders.

Leadership skills: set examples of appropriate and effective behaviour, be energetic, have vision (big picture), delegate, be positive

Coping skills: flexibility, creativity, patience, persistence Technological skills: experience, product and project

knowledge

Chapter 1 36

Table 2-4. Most Significant Characteristics of Effective and Ineffective Project Managers

• Lead by example• Are visionaries• Are technically competent• Are decisive• Are good communicator• Are good motivators• Stand up to upper

management when necessary• Support team members• Encourage new ideas

• Set bad examples• Are not self-assured

• Lack technical expertise

• Are poor communicators

• Are poor motivators

Effective Project Managers Ineffective Project Managers