Chapter-1

What is a Project?

?

What is a Project?A project is a sequence of unique, complex and

connected activities having one goal or purpose that must be completed by a specific time, wthin budget and according to specification.

A project is a complex, nonroutine, one-time effort limited by time, budget, resources, and performance specifications designed to meet customer needs.

Projects are ad hoc, resource-consuming activities used to implement organizational strategies, achieve enterprise goals and objectives, and contribute to the realization of the enterprise‘s mission.

PM Bok Says:A project is a temporary endeavor undertaken to create a unique product, service or result.

A Project can CreateA product that can be either a component of

another item or an end item in itself.

A capability to perform a service(e.g., a business function that supports production or distribution).

A result such as an outcome or a document (e.g., a research project that develops knowledge that can be used to determine whether a trend is present or a new process will benefit society).

Give examples:

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

information system (DAR satellites etc)• 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

Thinking ProcessWhat should be done before launching a project?

A „Typical“ Project Life-Cycle

8

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

Doll

ars

of

Man

hou

rs (

leve

l of

Eff

ort

)

• Identify Need• Establish Feasibility• Identify Alternatives• Prepare Proposal• Develop Basic Budget 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 support requirements• Procure System• Verify Performance• Modify as required

• Train functional personnel• 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.

The Project Boundaries

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 47 logically grouped project management processes comprising the 5 process groups.

– What are those FIVE Process Groups?

– What are those 10 Knowledge Areas in Projects?

Mapping the Processes Initiating

P.G.

Planning

P.G.

Executing

P.G.

Controlling

P.G.

Closing

P.G.

4. Project Integration Management

4.1 Develop Project Charter

4.2 Develop Project Management Plan

4.3 Direct & Manage Project Execution

4.4 Monitor & Control Project Work

4.5 Perform Integrated Change Control

4.6 Close Project or Phase

5. Project Scope Management

5.1 Plan Scope Management

5.2 Collect Requirements5.3 Define Scope

5.4 Create WBS

5.5 Validate Scope5.6 Control Scope

6. Project Time Management

6.1 Plan Schedule Management

6.2 Define Activities6.3 Sequence Activities6.4 Estimate Activity resources

6.5 Estimate Activity Duration6.6 Develop Schedule

6.7 Control Schedule

11

Process Group

Knowledge Area

Mapping the Processes (cont.)Initiating

P.G.

Planning

P.G.

Executing

P.G.

Controlling

P.G.

Closing

P.G.

7. Project Cost Management

7.1 Plan cost management

7.2 Estimate Costs

7.3 Determine Budget

7.4 Control Costs

8. Project Quality Management

8.1 Plan Quality Management

8.2 Perform QualityAssurance

8.3 Control Quality

9. Project Human Resource Management

9.1 Plan Human Resource Management

9.2 Acquire Project Team9.3 Develop Project Team

9.4 Manage Project Team

10. Project

Communications

Management

10.1 Plan CommunicationsManagement

10.2 Management Communication

10.3 Control Communication

11. Project Risk

Management

11.1 Plan Risk Management11.2 Identify Risk11.3 Perform Qualitative Risk Analysis11.4 Perform Quantitative Risk Analysis11.5 Plan Risk Responses

11.6 Control Risks

12

Mapping the Processes (cont.)Initiating

P.G.

Planning

P.G.

Executing

P.G.

Controlling

P.G.

Closing

P.G.

12. Project

Procurement Management

12.1 Plan Procurement Management

12.2 Conduct Procurements

12.3 Control

Procurement

12.4 Close Procurement

13. Project Stakeholder

Management

13.1 Identify Stakeholders

13.2 Plan Stakeholder Management

13.3 Manage Stakeholder Engagement

13.4 Control Stakeholder Engagement

13

PM Knowledge Area

Process Group

Contribution from Waqas Qazi (MPM-2011A)

Why Projects?To meet strategic business goals and

objectives:Strategic opportunityBusiness needsCustomer requestTechnological advanceLegal requirements

Relationship BetweenProject Management

Program Management

Portfolio Management

Program ManagementProgram Management is defined as a group of

related projects managed in a coordinated way to obtain benefits and control not available from managing them individually.

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

A program will always have projects.

Example of a Program ManagementA new communication satellite system:Designing of a satellite and ground systemConstruction of a satellite and ground stationIntegration of the systemLaunching of the satellite

What is Portfolio Management?A portfolio is a collection of projects or

programs and other work that are grouped together to facilitate effective management of that work to meet strategic business objectives.

The projects or programs in the portfolio may not necessarily be interdependent or directly related.

Examples of Portfolio ManagementAn infrastructure firm that has the strategic

objective of maximizing the return on its investments may have a portfolio of:

Projects in oil & gasProjects in powerProjects in waterProjects in roadsProjects in railProjects in airports

Functions of (PMO)1. Managing shared resources2. Identifying & developing project

management methodology, best practices and standards

3. Coaching, monitoring, training and oversight

4. Monitoring compliance project audits5. Developing & managing project policies,

procedures, templates and other standard documentation?

6. Coordinating communication across projects

What is a PMOProject Management Office (PMO)

An organizational structure that standardizes the project-related governance processes and facilitates the sharing of resources, methodologies, tool and techniques.

Project Manager Focuses on a specific project objectiveControls resources to best meet project

objectivesManages the constraints (scope, schedule,

cost, risk, human resources and quality etc) of individual project

Main Functions of a Project Manager Identify stakeholders & Leadership (decision

makers: Client, Parent organization, Project Team, Publics)

Define scope of project

Develop detailed task list (work breakdown, structures)

Develop initial project management flow chart

Estimate time requirements

Identify cost estimation and budget

Identify required resources and evaluate risks

Main Functions of a Project Manager

Prepare contingency planIdentify interdependenciesIdentify and track critical milestonesSecure needed resources, manpowerParticipate in project phase reviewManage the change control processReport project status

Project Management Vs Operation Management

How they are different?When do they interact?

Project VS Operations

PROJECTS OPERATIONSProjects require Project Management Operations require Business Process Management or Operations ManagementTemporary Undertakings Permanent EndeavorsTemporary Assignments Ongoing nature of OperationsProduce Unique Outputs Produce Repetitive OutputsTemporary Resourcing Permanent Resource AssignmentsExecute according to Project Management Plan Execute as per standards (SOPs)

developed for project life cycle institutionalized in product life cycle. Obtain objectives and then terminate Sustain the business Concludes when its specific objectives have been Adopt a new set of adjectives and the attained work continues

Project Vs Production Interaction

Projects can intersect with operations at various points during the product life cycle:At each closeout phaseWhen developing a new product, upgrading a

product, or expanding outputsImprovement of operations or the product

development process

Enterprise Environmental FactorsOrganizational culture, structure &

processesGovernment or industry standardsInfrastructure: Existing facilities and capital

equipmentExisting human resource Marketplace conditionsStakeholder risk tolerancePotential climatePolitical climateEstablished communication channelsCommercial databases: cost, risk study / infoProject management information systems (blog)

Organizational Process AssetsWhat is SWOT?