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    16/11/2013introduction to project

    management 1

    PROJECT MANAGEMENT

    Overview and Concepts

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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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    Motto

    Professional Project Managementmakes the difference between success

    and failure in all our engagements

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    Project ManagementA project is a temporary endeavour undertaken to create a

    unique product or service:Temporary means that every project has a definite beginningand a definite end.Unique means that the product or service is different in somedistinguishing way from all similar products or services.

    Distinguish between projects and operations:operations are ongoing and repetitiveprojects are temporary and unique

    Projects are usually performed by teams:

    clearly defined team and individual rolesopen and effective communicationsvisible rewards for good performance, pressure to improvepoor performance

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    Operations and Projects

    Operations and projects share many

    characteristics: Performed by people. Constrained by limited resources. Planned, executed, and controlled.

    Operations may include activities such as:

    Financial management and control Continuous manufacture Product distribution

    Projects may include activities such as: Developing a new product or service.

    Effecting a change in structure, staffing, or style of anorganization. Developing or acquiring a new or modified information

    system.

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    Projects are Temporary Temporary means that every project has a

    definite beginning and a definite end.

    The end is reached: When the projects objectives have been achieved, or

    When it becomes clear that the project objectives will

    not or cannot be met and the project is terminated. Temporary does not necessarily mean short induration: many projects last for several years.

    The duration of a project is finite: projects are not ongoing efforts.

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    The Product of a Project is

    Unique A product or service may be unique even if the category it belongsto is large.

    For example, many thousands of office buildings have beendeveloped, but each individual facility is uniquedifferent

    owner, different design, different location, differentcontractors, and so on.

    Because the product of each project is unique, thecharacteristics that distinguish the product or service must beprogressively elaborated.

    Progressively means proceeding in steps; continuing steadilyby increments

    Elaborated means worked out with care and detail; developedthoroughly

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    What is Project Management?

    Project management is the application of knowledge, skills,tools, and techniques to project activities in order to meetor exceed stakeholder needs and expectations from aproject

    Meeting stakeholder needs and expectations involvesbalancing competing demands among:

    Scope, time, cost, and quality. Stakeholders with differing needs and expectations.

    Identified requirements (needs) and unidentified requirements (expectations).

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    Project management consists of

    Roles

    Who isresponsible?

    1

    2

    7

    8

    3

    Processes

    Work Products

    What to deliver?

    Techniques

    How to produce?

    Hints &Tips

    How to produce?

    Guiding

    Principles

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    News flash

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    Stages of PM

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    The Triple Constraint of ProjectManagement

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    Managing triple constraint

    1. Builds the dashboard you use for controlling the project.

    2. Without this dashboard, you have no way of knowing where the project iscurrently headed, how far off course it is, or what action to take to get it back

    on course.

    3. If you neglect this function, you and all project stakeholders are subject tounhappy surprises.

    4. Uncontrolled projects rarely reach their goal.

    Manage the Triple Constraint

    Delivery

    (Performance)

    Cost

    (Budget)

    Time

    (Schedule)

    Client

    Agreement

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    The Context for Project

    Management The Project Life Cycle Project Stakeholders

    Organizational Influences Key General Management Skills

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    The Project Life Cycle

    The project life cycle serves to define thebeginning and the end of a project

    The life cycle is normally divided into anumber of phases

    Each project phase is marked bycompletion of one or more deliverables A deliverable is a tangible, verifiable work

    product such as a

    feasibility study, a detail design, or a workingprototype

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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 theproject, or whose interests may be positively ornegatively affected as a result of project executionor successful project completion

    The project management team must identify thestakeholders, determine what their needs andexpectations are, and then manage and influencethose 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, forthe project.

    Project team members the people doing the work on the project to realise a

    product

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    Influence of OrganizationalStructure 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 planningfor project work

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    10 Reasons Why Projects

    Fail

    Source:Gartner Group, July

    1998 and Accenture analysis

    C f P P j

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    31% of all new software developmentprojects are cancelled beforecompletion

    53% of projects cost >189% of originalestimates

    16.2% of software projects completedon time and on budget

    Average overrun is 222% of originalestimates

    Source: Standish Group, 1995

    Costs of Poor Project

    Management

    A survey on overall applicationsdevelopment projects revealed:

    46% of IT projects were"challenged" (completed overbudget and past the originaldeadline).

    6% of projects succeeded.

    28% of projects failed.

    Source:Standish Group, 1998

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    Influencing the organization

    Ability to get things done Requires an understanding of both the

    formal and informal structures of all thestakeholders

    An understanding the mechanics of power

    and politics

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    Project Management Process

    The purpose of the Projectmanagement process is to identify,

    establish, and coordinate andmonitor activities, tasks, andresources necessary for a project to

    produce a product and/or servicemeeting the agreed requirements.

    f j

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    Outcomes of ProjectManagement

    As a result of successful implementation of theprocess: 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 thework will be sized and estimated; interfaces between elements in the project, and with

    other projects and organizational units, will be identifiedand 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.

    l d f j

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    Knowledge Areas for ProjectManagement

    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

    A F k f P j

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    A Framework for ProjectManagement

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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 aconsistent, coherent document

    project plan execution

    Carryout the project plan by performing the activitiesincluded therein

    overall change control.

    Co-ordinating the changes across the entire project

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    These processes interact with each other and with the

    processes in the other knowledge areas as well. Eachprocess may involve effort from one or more

    individuals or groups of individuals, based on the needs ofthe project.

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    Project Scope Management Describes the processes required to ensure that

    the project includes all the work required, and onlythe work required, to complete the projectsuccessfully.

    Consists of initiation

    Authorizing the project phase scope planningDeveloping a written scope statement as the basis for future

    project decisions

    scope definitionSubdividing the project deliverables into smaller, more manageable

    components scope verificationFormalizing 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 toensure timely completion of theproject.

    Consists of activity definition

    activity sequencing

    activity duration estimating

    schedule development

    schedule control

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    Activity Definitionidentifying the specificactivities that must be performed to produce thevarious project deliverables.

    (b)Activity Sequencingidentifying anddocumenting interactivity dependencies.

    (c)Activity Duration Estimatingestimatingthe number of work periods that will be needed

    to complete individual activities. (d) Schedule Developmentanalyzing activitysequences, activity durations, and resourcerequirements to create the project schedule.

    (e) Schedule Controlcontrolling changes tothe project schedule.

    P j C M

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    Project Cost Management Describes the processes required to ensure that

    the project is completed within the approvedbudget.

    Consists of resource planning

    determining what resources (people, equipment, materials) andwhat quantities of each should be used to perform projectactivities.

    cost estimating

    developing an approximation (estimate) of the costs of theresources needed to complete project activities.

    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 thatthe project will satisfy the needs for which it wasundertaken.

    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

    P j t H R

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    Project Human ResourceManagement

    Describes the processes required to make themost effective use of the people involved with theproject

    Consists of organizational planning

    Identifying, documenting and assigning project roles andresponsibilities

    staff acquisition Getting the human resource needed, assigned to and working

    on the project

    team development. Developing individual and group competencies to enhance projectperformance

    P j t C i ti

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    Project CommunicationsManagement

    Describes the processes required to ensuretimely 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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    Communications Planningdetermining theinformation and communications needs of thestakeholders: who needs what information,

    when they will need it, and how it will be givento them. Information Distributionmaking needed

    information available to project stakeholders in atimely manner.

    Performance Reportingcollecting anddisseminating performance information. Thisincludes status reporting, progressmeasurement, and forecasting.

    Administrative Closuregenerating,gathering, and disseminating information toformalize a phase or project completion.

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    Communicating is a broader subject and involves asubstantial body of knowledge that is not unique to theproject context. For example:

    Sender-receiver modelsfeedback loops, barriers tocommunications, etc.

    Choice of mediawhen to communicate in writingversus when tocommunicate orally, when to write an informal memoversus when to write a formal report, etc.

    Writing styleactive versus passive voice, sentencestructure, word choice, etc.

    Presentation techniquesbody language, design ofvisual aids, etc.

    Meeting management techniquespreparing anagenda, dealing with conflict, etc.

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    Project Risk Management

    Describes the processes concerned withidentifying, analyzing, and responding to projectrisk

    Risk Management Planningdeciding how to approach andplan the risk

    management activities for a project. Risk Identificationdetermining which risks might affect theproject and

    documenting their characteristics. Qualitative Risk Analysisperforming a qualitative analysis

    of risks and conditions to prioritize their effects on project objectives. Quantitative Risk Analysismeasuring the probability and

    consequences of

    risks and estimating their implications for project objectives.

    Project Procurement

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    Project ProcurementManagement

    Describes the processes required toacquire goods and services from outsidethe performing organization

    Consists of procurement planning solicitation planning

    source selection

    contract administration contract close-out

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    Project management plan

    Project

    Definition

    ProjectPlan

    Procedures

    and Tools

    Other

    Supporting

    Plans

    Project Management PlanSections:1. Background

    2. Objectives

    3. Scope

    4. Deliverables

    5. Approach

    6. Risks

    7. Assumptions

    8. Constraints9. External Dependencies

    10. Critical Success Factors

    11. Equipment and Facilities Needs

    12. Client Responsibilities

    Subordinated Work Products

    Project Management Tools Issue Resolution Procedure

    Data / Document Management

    Procedures

    Other Project Procedures

    Subordinated Work Products

    Start-Up Plan

    Configuration Management Plan

    Subcontractor Management Plan

    Acceptance Plan Communication Management Plan

    Quality Plan

    Risk Management Plan

    Training Plan

    Project Completion Plan

    Performance Measurement Plan

    Update Plan

    Detail Level Sections:

    1. Product/Work Breakdown

    Structure

    2. Project Dependency

    Diagram

    3. Project Schedule

    4. Project Organization

    5. Staffing Profile

    6. Project Budget7. Payment Schedule

    Top Level Sections:

    1. Product/Work Breakdown

    Structure

    2. Project Dependency Diagram

    3. Project Schedule

    4. Project Organization

    5. Staffing Profile6. Project Budget

    7. Payment Schedule

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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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    introduction to project

    Exercise

    Take a few minutes to write downanswers to:

    What are the main ideas I havelearned today?

    What am I still confused about, or

    dont understand?