Module 1
Introduction to Project Management
PMI & PMP
The Project Management Institute (PMI) is
project management professional
association with over 500,000 member.
Established in 1969 and located in US.
Project Management Professional (PMP)
credential recognizes demonstrated
knowledge and skill in leading and
directing project teams and in delivering
project results within the constraints of
schedule, budget and resources.
PMI, PMBOK, PMP are registered marks of Project Management Institute, Inc.
The Project Management Framework
Module 1 Introduction
Module 2 Organizational Influences and Project Life Cycle
Module 3 Project Management Process for a Project
PMBOK Guide
Is a standard (formal document that describes established norms,
methods, processes and practices)
Guidelines for managing individual projects
A good practices which are applicable to most project most of the
time
A common vocabulary within project management profession
A foundational project management reference
PMI Code of Ethics and Professional Conduct is also requirement
for PMP certification
Advantages of Using Formal Project Management
Better control of financial, physical, and human resources
Improved customer relations Improved customer relations
Shorter development times
Lower costs
Higher quality and increased reliability
Higher profit margins
Improved productivity
Improved productivity
Better internal coordination
Higher worker morale (less stress)
What is Project?
A Project is a temporary endeavor undertaken to create a unique, product,
service, or result.
Temporary = a definite beginning and end.
Repetitive elements may be present but has fundamental uniqueness
Is progressively elaborated.
Distinguishing characteristics of each unique project will be
progressively detailed as the project is better understood.
Project Attributes
A project:
Has a unique purpose
Is temporary
Is developed using progressive elaboration
Requires resources, often from various areas
Should have a primary customer or sponsor
The project sponsor usually provides the direction and funding for the
project
Involves uncertainty
Project vs. Operational Work
Projects Operations
To attain its objectives and terminate To sustain the business
Create own character, organization, and Semi permanent charter, organization, and
goals goals
Catalyst for change Maintain status quo
Unique product or services Standard product or services
Heterogeneous teams Homogeneous teams
Start and end date Ongoing
Examples Examples
Producing a News letter Responding to customers requests
Writing and publishing a book Writing a letter to a Prospect
Implementing a LAN Hooking up a Printer to a computer
Hiring a sales man Meeting with an employee
Arrange for a conference Attending a conference
Opening for a new shop Opening the shop
Producing the annual report Writing a progress update memo
What is Project Management?
The application of knowledge, skills, tools and technique to project
activities to meet project requirements
Project Management is accomplished through the application and
integration of the processes which are grouped in the 5 process groups:
1. Initiating
2. Planning
3. Executing
4. Monitoring and Controlling
5. Closing
Due to the nature of change, managing project is iterative and goes
through progressive elaboration throughout the projects lifecycle
Managing Project
The Project Manager is the person responsible for accomplishing
the project objectives.
Managing a project includes:
Identifying requirements.
Establishing clear and achievable objectives.
Balancing the competing demands of quality, scope, time and cost.
Adapting the specifications, plans, and approach to the different
concerns and expectations of the various stakeholders.
Project Constraints
Every project is constrained in different ways by its:
Scope
Schedule/Time
Cost/Budget
Quality
Resources
Risk
The Triple Constraint
or
The Trade-off Triangle
SCOPE/QUALITY
Figure 1-1. The Triple Constraint of Project Management
Successful project
management means
meeting all three
goals (scope, time,
and cost) and
satisfying the
projects sponsor!
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Projects and Strategic Planning
Projects are means of
Achieving organizations strategic plan.
Organizing activities that cannot be addressed within the organizations normal
operational limits.
Projects are typically authorized as a result of one or more of the
following strategic considerations:
Market demand
Strategic opportunity/business need
Customer request
Technological advancement
Legal requirements
Ecological Impacts
Social need
Project Management Framework
Project Management Knowledge Areas
Four core knowledge areas lead to specific project objectives.
Project scope management involves defining and managing all the work required to
complete the project successfully.
Project time management includes estimating how long it will take to complete the
work, developing an acceptable project schedule, and ensuring timely completion of
the project.
Project cost management consists of preparing and managing the budget for the
project.
Project quality management ensures that the project will satisfy the stated or implied
needs for which it was undertaken.
Project Management Knowledge Areas
Five facilitating knowledge areas are the means through which the
project objectives are achieved.
Project human resource management is concerned with making
effective use of the people involved with the project.
Project communications management involves generating, collecting,
disseminating, and storing project information.
Project risk management includes identifying, analyzing, and responding
to risks related to the project.
Project procurement management involves acquiring or procuring goods
and services for a project from outside the performing organization.
Project stakeholder Management
Project Management Tools and Techniques
Project management tools and techniques assist project
managers and their teams in various aspects of project
management.
Note that a tool or technique is more than just a software package.
Specific tools and techniques include:
Project charters, scope statements, and WBS (scope)
Gantt charts, network diagrams, critical path analyses (time)
Net present value, cost estimates, and earned value management (cost)
Project Success
There are different ways to define project success:
The project met scope, time, and cost goals.
The project satisfied the customer/sponsor.
The project produced the desired results.
Relationships Among Project Management, Program
Management and Portfolio Management
Project Management
Program Management
Portfolio Management
Portfolio
Project Management Office
Program
PMO
Projects & Operation
What is a Program?
A program is:
a group of related projects managed in a coordinated way to
obtain benefits and control not available from managing them
individually.
A program manager provides leadership and direction for the
project managers heading the projects within the program.
ADVANTAGES
Decreased risk
Economies of Scale
Portfolios and 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.
Portfolio managers help their organizations
make wise investment decisions
by helping to select and analyze projects from a strategic
perspective
Project and Program Managers
Project managers work with project sponsors, project
teams, and other people involved in projects to meet
project goals.
Program: A group of related projects managed in a
coordinated way to obtain benefits and control not
available from managing them individually.*
Program managers oversee programs and often act
as bosses for project managers.
*PMI, A Guide to the Project Management Body of Knowledge
(PMBOK Guide) (2013)
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Comparative Overview
Projects and Strategic Planning
Projects are means of organizing activities that cannot be addressed
within the organizations normal operational limits.
Projects are typically authorized as a result of one or more of the
following strategic considerations:
A Market Demand & Organizational Need
A Customer Request
A Technological Advancement
A Legal Requirement
Subprojects
Projects are frequently divided into more manageable components or
subprojects.
Subproject are often contracted to an external enterprise or to another
functional unit in the performing organization.
Subprojects can be referred to as projects and managed as such
PMO
A department that centralizes the management of projects.
A PMO usually takes one of three roles:
Project Support: Provide project management guidance to project
managers in business units.
Project Management Process/Methodology: Develop and implement
a consistent and standardized process.
Training: Conduct training programs or collect requirements for an
outside company
Primary Function of PMO
A Primary function of PMO is to support project managers in a
variety of ways which may include, but are not limited to:
Managing shared resources across all the projects administered by the
PMO
Identifying and developing project management methodology, practices &
standards
Coaching, mentoring , training and oversight
Monitoring compliance with project management standard policies,
procedures , and templates via project audits .
Developing and managing project policies, procedures, templates, and
other shared documentation ( organizational process assets); and
Co coordinating communication across projects
Project Management Office (PMO) Contd
Home for project managers: Maintain a centralized office from which
project managers are loaned out to work on projects.
Internal consulting and mentoring: Advise employees about best practices.
Project management software tools: Select and maintain project
management tools for use by employees.
Portfolio management: Establish a staff of program managers who can
manage multiple projects that are related, such as infrastructure
technologies, desktop applications and so on, and allocate resources
accordingly.
Role of a Project Manager
The Project Manager is the person responsible for
accomplishing the project objectives.
Project managers strive to meet the triple constraint by
balancing project scope, time, and cost goals
Depending on the organization structure , a project manager may
report to functional manager.
Project Expediter and Coordinator
Project managers role can very limited
Project Expediter
acts primarily as a staff assistant
as communications coordinator.
cannot personally make or enforce decisions.
Project Coordinator
has some power to make decisions
Has some authority
reports to a higher-level manager
Stakeholders
Stakeholders are persons or organizations who are actively involved in
the project or whose interests may positively or negatively affected by
the performance or completion of the project.
Stakeholders have varying levels of responsibility and authority and
can change over the project life cycle
Project management team must continuously identify both external and
internal stakeholders
Project manager must manage the influence of various stakeholders in
relation to the requirements and balance stakeholders interest
Stakeholders
Some examples of project stakeholders
Enterprise Environmental Factors
Refer to both internal & external environmental factors that surround or
influence a projects success
As an input in almost all project management process
May enhance or constrain project management options
May have positive or negative influence on the outcome
Examples:
Organizational culture, structure, and Organizations established
processes communications channels
Government or industry standards Commercial databases
Infrastructure Project management information
Existing human resources
Personnel administration
Company work authorization systems
Marketplace conditions
Stakeholder risk tolerances
Political climate
Fifteen Project Management Job Functions
Define scope of project. Evaluate project requirements.
Identify stakeholders, decision- Identify and evaluate risks.
makers, and escalation procedures. Prepare contingency plan.
Develop detailed task list (work Identify interdependencies.
breakdown structures). Identify and track critical milestones.
Estimate time requirements. Participate in project phase review.
Develop initial project management Secure needed resources.
flow chart.
Manage the change control process.
Identify required resources and
Report project status.
budget.
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Suggested Skills for Project Managers
Project managers need a wide variety of skills.
They should:
Be comfortable with change.
Understand the organizations they work in and with.
Lead teams to accomplish project goals.
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Suggested Skills for Project Managers
Project managers need both hard and soft skills.
Hard skills include product knowledge and knowing how to use various project
management tools and techniques.
Soft skills include being able to work with various types of people.
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Suggested Skills for Project Managers
Communication skills: Listens, persuades.
Organizational skills: Plans, sets goals, analyzes.
Team-building skills: Shows empathy, motivates, promotes
esprit de corps.
Leadership skills: Sets examples, provides vision (big picture),
delegates, positive, energetic.
Coping skills: Flexible, creative, patient, persistent.
Technology skills: Experience, project knowledge.
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Media Snapshot Good Project Management Skills from The
Apprentice
Leadership and professionalism Be a team player.
are crucial. Stay organized and dont be overly
Know what your sponsor expects emotional.
from the project, and learn from Work on projects and for people you
your mistakes. believe in.
Trust your team and delegate Think outside the box.
decisions. There is some luck involved in project
Know the business. management, and you should always
Stand up for yourself. aim high.
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Table 1-4. Most Significant Characteristics of Effective and
Ineffective Project Managers
Effective Project Managers Ineffective Project Managers
Leadership by example Sets bad example
Visionary Not self-assured
Technically competent Lacks technical expertise
Decisive Poor communicator
Good communicator Poor motivator
Good motivator
Stands up to upper
management when
necessary
Supports team members
Encourages new ideas
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Importance of Leadership Skills
Effective project managers provide leadership by
example.
A leader focuses on long-term goals and big-picture
objectives while inspiring people to reach those goals.
A manager deals with the day-to-day details of
meeting specific goals.
Project managers often take on both leader and
manager roles.
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History of Project Management
Some people argue that building the Egyptian pyramids was a project, as was
building the Great Wall of China.
Most people consider the Manhattan Project to be the first project to use modern
project management.
This three-year, $2 billion (in 1946 dollars) project had a separate project and
technical managers.
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Figure 1-4. Sample Gantt Chart
Work Breakdown Structure (WBS)
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Figure 1-5. Sample Network Diagram
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Project Management Office (PMO)
A PMO is an organizational group responsible for coordinating the project management
function throughout an organization.
Possible goals include:
Collect, organize, and integrate project data for the entire organization.
Develop and maintain templates for project documents.
Develop or coordinate training in various project management topics.
Develop and provide a formal career path for project managers.
Provide project management consulting services.
Provide a structure to house project managers while they are acting in those
roles or are between projects.
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Project Management Software
Enterprise PM software integrates information from
multiple projects to show the status of active,
approved, and future projects across an entire
organization.
It also provides links to more detailed information on
each project.
Many managers like to see status in color red,
yellow, and green.
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Figure 1-6. Sample Enterprise Project Management Tool
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The Project Management Profession
Professional societies such as the Project Management Institute (PMI) have
grown significantly.
There are specific interest groups in many areas, such as engineering, financial
services, health care, and IT.
Project management research and certification programs continue to grow.
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Project Management Certification
PMI provides certification as a Project Management Professional (PMP).
A PMP has documented sufficient project experience, agreed to follow a code of
ethics, and passed the PMP exam.
The number of people earning PMP certification is increasing quickly.
PMI and other organizations are offering new certification programs as CAPM,
Certified Associate in Project Management
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Figure 1-7. Growth in PMP Certification, 1993-2003
80,000 76,550
70,000
60,000
52,443
50,000
# PMPs
40,000 40,343
30,000 27,052
20,000 18,184
10,000 10,086
6,415
4,400
1,900 2,800
1,000
0
1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003
Year
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Ethics in Project Management
Ethics is an important part of all professions.
Project managers often face ethical dilemmas.
In order to earn PMP certification, applicants must agree to the PMP code of
professional conduct.
Several questions on the PMP exam are related to professional responsibility,
including ethics.
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Project Management Software
There are currently hundreds of different products to assist in performing project
management.
Three main categories of tools:
Low-end tools: Handle single or smaller projects well; cost under $200 per
user.
Midrange tools: Handle multiple projects and users; cost $200-500 per user;
MS.Project most popular (includes an enterprise version).
High-end tools: Also called enterprise project management software; often
licensed on a per-user basis; VPMi Enterprise Online (www.vcsonline.com).
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Summary
As the number and complexity of projects continue to grow, it is becoming even more
important to practice good project management.
A project has several attributes, such as being unique, temporary and developed
incrementally.
A framework for project management includes project stakeholders, the nine knowledge
areas, tools and techniques, and creating project portfolios to ensure enterprise success.
Successful project managers must possess and development many skills and lead their
teams by example.
The project management profession continues to mature as more people become certified
and more tools are created.
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End of Module 1
