Project Management (PMP Material)

PMAC
PMAC Consulting Private Limited
Global R.E.P. PMI, USA
presents
“ADVANCED PROJECT MANAGEMENT COURSE”
IN CONFORMANCE WITH LATEST PMI STANDARDS
PMBOK® GUIDE-2008, FOURTH EDITION
1

GOOD MORNING FOLKS!

Welcome
to
the world
of

Project Management
Latest PMI Standards
2

LATEST PMI STANDARDS!

A guide to the Project Management
Body of Knowledge (PMBOK®
Guide) is a recognized standard for
the project management profession
worldwide!
3


The PMBOK® Guide provides Knowledge,
Processes, Skills, Tool and Techniques that are
generally recognized good practice.
Their application enhances the chances of
success over a wide variety of projects.
But, all the processes may not apply uniformly
to all projects. Hence, it is the RESPONSIBILITY of
your organization and/or the project management
team to determine what is appropriate for any
given project. This is called TAILORING!
4


In addition to taking advantage of the
PMBOK® Guide for the success of your
projects, PMI also requires the practitioners
to demonstrate a commitment to ethical and
professional conduct.
“Project Management Institute Code of
Ethics and Professional Conduct”.

5

Purpose of this Course

To provide a proven, holistic approach to the
professional of Project Management. An
approach that has been globally recognized to
enhance chances of success over a wide range
of projects.

6

Education Agenda

LEARNING OBJECTIVES
Upon completion of this course, the students will:
1. Comprehend entire gamut of concepts, tools and
techniques, and terminology relating to the profession
of Project Management in conformance with per PMI
standards.
2. Master identification of project needs, creation of WBS
and how to plan to avoid scope creep, time and cost
overruns, or quality problems later in the project.

7

Education Agenda

LEARNING OBJECTIVES
3. Command the art of estimating project costs and
schedules using simple and proven techniques.

4. Attain expertise on meeting triple constraints,
assessing and dealing with risks, and establishing a
dependable project control and monitoring system.

8

Education Agenda

LEARNING OBJECTIVES
5. Achieve proficiency in vendor management and project
closure.

6. Acquire knowledge and ability to pass PMP
examination.

9

Education Agenda

WARMING UP WITH

A PROJECT FORETHOUGHT!

10

Project forethought

Do you have a vision?
Your personal vision

Your functional area’s vision

Your organization’s vision

11

Project forethought

How do you articulate it in the
backdrop of today’s
realities?

12

Project forethought

Backdrop of today’s realities?
Over capacity of production facilities
Sharp increases in the cost of material, energy, and
labor
Changing customer values and more exacting quality
requirements
Increased competition among companies in saturated
and dwindling markets
Environmental problems
13

Project forethought

Backdrop of today’s realities?
A need to introduce new products more rapidly
Globalization of markets
Social problems, economic problems, political problems

A need to lower breakeven point

14

Project forethought

Questions to help you articulate your vision?

How can your organization balance the need for radical
change with strategic continuity?

What will be the new management model for tomorrow,
and how it will be different from today’s?

What role must managers play in the post hierarchical
organization of future?
15

Project forethought


How can strategic thinking about the future be embedded
within the organization?

Whom should your organization involve in the process of
developing and implementing strategy?

16

Project forethought


How can a radically-decentralized organization be
created and sustained?

As corporations and their networks become increasingly
complex, how can they be controlled?

17

Project forethought


How can organizations shift from spreading
information around to building knowledge?

How to discover better technologies
to increase quality of human life on earth?

18

Project forethought

Articulating your vision
You can now choose with an end in mind

It should be worthy of pursuance

Challenging and achievable

To make it happen, take up its realization as a
“PROJECT”
19

Project forethought

Articulating your vision
You can now choose with an end in mind

It should be worthy of pursuance

Challenging and achievable

To make it happen, take up its realization as a
“PROJECT”
20

Project forethought


How to train and ensure competency of people to work
together to achieve common goals?

How to make coming generation better equipped to
succeed in life?

21

Project forethought

Realizing vision

‘Needs and aspirations of people
are the reasons for organized effort
in society’.
‘Projects have been taken up since
earliest civilizations to fulfill them’.
22

Project forethought

Projects make it “possible”
Products
Services
Infrastructure
Needs
Monuments
Aspirations
Visions Projects Space research
War victories
Strategies
Entertainment
Media
Earnings
Operations provide us benefits of the Growth
23 product of the project on ongoing basis Etc.

PM Basics

Fundamental
Concepts

24

PM Basics: Fundamental Concepts

We begin our discussion on fundamental
concepts under three broad headings:
1. Project Management Framework
2. Project Life Cycle and Organization
3. Project Management Processes

25


PROJECT MANAGEMENT FRAMEWORK
What is a project?
Projects vs. Operations!
Projects and Strategic Planning!
What is ‘Project Management?
What is a Program?
What is a Portfolio?
26


PROJECT MANAGEMENT FRAMEWORK
Relationships among Project Management,
Program Management, and Portfolio
Management!
What is a PMO?
Role of a Project Manager!
PMBOK® Guide!
Enterprise Environmental Factors!
27

PM Basics

What is a project?

A Project is A TEMPORARY ENDEAVOR
undertaken to create A UNIQUE PRODUCT,
SERVICE, OR RESULT!

Let’s understand the definition

28

PM Basics

- What do we mean by the word
TEMPORARY?

- What do we mean by the words A UNIQUE
PRODUCT, SERVICE, OR RESULT!

- We would also discuss on a very
important terms called “Progressive
Elaboration”!
Let’s understand the definition
29

PM Basics: Understanding ‘Project Characteristics’

Temporary means:
- Definite beginning
- Definite end
- With defined project objectives
(scope, time, cost, and quality)

30


Project end IS REACHED when:
1) Its objectives are met, or
2) It becomes clear that the project objectives
will or can not be met, or
3) The need for the project no longer exists.

31


Temporary does not
necessarily mean
Short in duration!
Projects can last for several years!!
Government of India’s E-governance project is
A multi-year project.
All that temporary means is that
project duration is finite, not ongoing.
32


Temporary does not mean

The product of the project will also be temporary.

Most projects are done to produce products,
service or result that is long lasting.
Examples
a bridge, a dam,
a building, a monument, a park
33


Temporary nature
Some projects produce a product or service for a
particular occasion.
Examples: Olympics, Fashion show, Grammy awards

Certain others cater to an opportunity or
market window that is short in duration
Examples: Sale Campaigns for Christmas, Diwali, Pongal, IId, etc
PROJECT TEAMS ARE FORMED AS IT BEGINS AND
34 DISBANDED AS IT COMPLETES


Unique product, service, or result
Projects involve creating a product, service,
or result that has not been done exactly the
same way before EVEN IF YOU HAVE BEEN
DOING SAME CATEGORY OF PROJECTS
MANY TIMES OVER!
Different CLIENTS, REQUIREMENTS, LOCATIONS,
etc.
35

PM Basics: Comprehending Project

A project can create:
1. A product (component of another item or end
item).
2. A service (a business function to support
production or logistics).
3. A result (an outcome or document, such as
R&D project develops Knowledge,
36 Market Survey).


Progressive elaboration
is critical to project success

Progressive means proceeding in steps,
continuing steadily with increment.

Elaboration means worked out with care
and detail, developed thoroughly
37


WHY Progressive elaboration?
Because projects are temporary and unique!

Example: Project scope is high-level in the beginning. It
becomes more detailed as project team
progresses and develops better understanding
of project objectives and deliverables.
Many people confuse it with scope creep that happens
due to poor scope definition, poor WBS formation and
38 Uncontrolled changes.


Each project’s product is unique.
Hence, its characteristics
THAT DISTINGUISH IT
must be
“PROGRESSIVELY ELABORATED!”
That’s why so much emphasis on processes called:
- “Identify stakeholders” (during initiation)
- “Collect requirements” (during planning)
39


Progressive elaboration
is critical to project success!

The distinguishing characteristics
“Broadly defined” early in the project
More explicit and detailed as project
progresses
THEN, PROJECT TEAM BEGINS TO GRASP THEM
BETTER
40

PM Basics: Progressively elaborated

Product Scope and Project Scope
PRODUCT SCOPE PROJECT SCOPE
Functions and The work required to
features characterizing be performed to deliver
the product or service. a product bearing
specified functions and
features.
COMPLETION
COMPLETION
Measured against
Measured against
product requirements
project management
plan
41

Sample
Progressive
Elaboration


L0 ABC CARGO
LOGON PROJECT
BASIC SOFTWARE SITE Project
L1 DESIGN (H)
HARDWARE
SPECS (L)
FABRICATION
OPERATIONS
PURCHASE
Management

DESIGN DESIGN DRAWINGS
PART A SOFTWARE
(I) (J) (P)
L2
DRAWINGS TEST
DRAWINGS PART B PART A
(K) (Z)
(O)
FINAL
INSTALLATION PART B
(Y)
WORK
PAKCAGES ASSEMBLY ASSEMBLY PURCHASE PURCHASE PURCHASE
L3 (H) (V) (U) (N) (M) (Q)
through TEST TEST DELIVERY DELIVERY DELIVERY
42 (Z) (X) (W) (S) (R) (T)

PM Basics

Projects Vs. Operations

43

PM Basics: Projects vs. Operational Work

What do organizations do?

1.
ORGANIZATIONS
PERFORM WORK
to accomplish
a set of defined objectives

44


2.

Work can be categorized as
either

PROJECTS or OPERATIONS

Sometimes they overlap!

45


What is common to projects and operations?
3.

Performed by people
Limited by Constraints, including
resource constraint
Planned, executed, monitored and controlled
Performed to achieve organizational objectives
Or strategic plans
46


PROJECTS OPERATIONS

Projects are temporary
Operations are ongoing
and unique.
and repetitive.
The purpose of a project
The purpose of an
is to attain its objective
ongoing operation is to
and then terminate.
sustain the business.
The project concludes
Operations adopt new
when its specified
set of objectives and the
objectives have been
work continues.
47 achieved.

PM Basics

Remember:
1. Operations produce same product until the product
becomes obsolete.
2. Within the life cycle of a product, projects can intersect
with operations at various points:
a) During improving productivity/process,
b) Developing new product or upgrading a product
c) Expanding outputs
d) At each closeout phase or until divestment of the
product, there can be many projects!
48

PM Basics

Remember:
3. At each point, deliverables and knowledge are
transferred between projects and operations. Why?
Answer: For implementation of the delivered work!
4. How it happens?
Answer: It happens in two way!
a) Transfer of project resources to operations
toward the end of the project.
b) Transfer of operational resources to the project
at the start.
49

PM Basics: Comprehending ‘Project Examples’

Operation examples

Manufacturing operations
Production operations
Usage of the product of a project, such
as a software application, or using
network infrastructure
Accounting operations

50


Project examples
Developing a new product or service
Starting a new business, or expansion of the
existing one
Installing a new facility/ infrastructure
Increasing productivity
Increasing market share
Increasing profitability

51


Project examples
Cost reduction (operation and maintenance)
R & D projects
Technology up-gradation/ new technology
projects
Pharmaceutical projects
Organizational Change management projects
(work environment, performance management,
organization structure, training, etc.)

52

PM Basics: Projects and Strategic Planning

Projects and Strategic Planning

53

PM Basics: ‘Projects implement strategy’

Projects are are a means to achieve
“Strategic Plan” of an organization!

One or more of the following Strategic
Considerations give rise to projects:
1) Market demand
2) Customer request
3) Strategic opportunity/Business Need
4) Technological advance
5) Legal requirements
54

PM Basics: ‘Projects implement strategy’

“Hence, Projects (within programs or
portfolios) are a means by which we
achieve organizational goals and
objectives within the context of strategic
plan!”

55

PM Basics: ‘Projects encompass entire organization’

Projects
are
-Taken up at all organizational levels
- May require few persons to thousands
- May be undertaken within an organization or
involve many outside organizations

56

PM Basics: ‘Hey! It’s important’

Worldwide concern

YET
It is concerning to note
that
only about 34% of all the projects
undertaken globally
SUCCEED!

57


Worldwide concern
This only means that the concept
of
“Managing Projects Effectively”
is
poorly understood.

58


Addressing the concern

To master
the concepts, tools, and techniques
for
“Managing Projects Successfully”
let’s first
understand the genesis of PROJECTS!
59

PM Basics

What
is
‘Project Management’

60

PM Basics : Defining ‘Project Management’

What is Project Management?
PROJECT MANAGEMENT IS
The application of KNOWLEDGE,
SKILLS, TOOLS AND TECHNIQUES
to project activities to meet the
Project Requirements!

61

PM Basics

What is Project Management?
The project management is accomplished through
application and integration of the 42 logically grouped
Project Management Processes comprising 5 Process
Groups
Initiating
Planning
Executing
Monitoring and Controlling
62 Closing

THE GIST

Managing a project consists of 3 main items:
1
Identifying requirements!

2
Addressing the various Needs,
Concerns, and Expectations
of the stakeholders-
as the project is planned
and executed!
63

THE GIST

Managing a project consists of 3 main items:
3

Balancing competing project constraints,
such as:
a) Scope,
b) Schedule,
c) Budget,
d) Quality,
e) Resources, and
f) Risk.
64

PM Basics: Managing a project REQUIRES

Iteration of many of the processes within
project management
Because of the existence of and necessity for

Progressive elaboration in a project throughout the
Project’s life cycle

The more a project management team learns about a project,
the better the team can manage to greater level of detail
65

PM Basics: Triple Constraints

HOW TO manage the TRIPLE CONSTRAINTS

Time Cost
Q

Scope

66

PM Basics: Triple Constraints

Dimensions of TRIPLE CONSTRAINTS
Time

Scope Cost

Risk Quality

Customer satisfaction

67

PM Basics: Program, Portfolio

- What is a program?
- What is a portfolio?
- Relationships among project
management, program management,
and portfolio management!

68

PM Basics: Project Management Context

Wider Perspective of Project Management

Project Management exists in a broader canvas:
Program Management
Portfolio Management

69

PM Basics: Fundamental concepts

“Project Management exists in
a broader context governed by
Program and Portfolio Management!”
Organizational Strategies and Priorities
are linked and have relationships
- Between portfolios and programs,
- Between programs and individual projects!
70


Organizational Planning decides prioritization
among the projects, having regard to:
- Strategic plan
- Funding
- Risk
This means finds and support for component projects
is provided on the basis of risk categories, specific
lines of business, or general type of projects ( internal
process improvement or infrastructure projects).
71


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!
Programs may include elements of related work
outside the scope of the discrete projects in the
program.
72


Generally,
there is a hierarchy of Strategic plan

Portfolio
In this hierarchy, a program
consists of several associated Program
projects that will contribute to
the accomplishment of Project
a STRATEGIC PLAN!
Subproject

73


Space program Strategic plan
Airplane program
Poverty alleviation Portfolio
program
Program
Project A Project B Project C
Subproject Subproject
Subprojects
OFTEN OUTSOURCED Externally, or Internally (to other
unit) on the basis:
- Single phase, HR Skill requirement, Technology
74


A PROGRAM
1) extends over a longer period of time horizon.
2) consists of several parallel or sequential work efforts
that are coordinated toward program goals.
3) time scale for projects tends to be shorter, and projects
are often the individual work efforts of a program.

Program Urban Development
Program

Projects Small business
Job & Skill
Housing rehab Consulting
75 Training
Assistance

Typical Aircraft
Weapons System
Development
Program

Senior
Management

Integration
Program Data Field Procurement
Comptroller &
Management Processing Support
Testing

Aerodynamics
project
Propulsion
Project
Structures
Project
Avionics
76 Project

Programs also entail
a series of
Cyclical
undertakings

Fund Raising Publishing
Program ‘India Today’
of Helpage India Magazine

A Project 1 A Project 1
Issue January
‘Membership drive’
series program
Project 2
of Project 2 where Issue February
‘Advertising’
Discrete general
Project 3 Project 3
Projects ‘Corporate Appeal’
operations Issue March
become Project ‘n’
Project ‘n’ ‘MBO’ Issue every month

77

DYNAMICS OF
Portfolio and
Portfolio
Management

Portfolio Management
1. Maximize the value of portfolio by careful scrutiny of
the Proposed Projects and Programs for being
taken within the Portfolio.
2. Timely exclusion of the projects not meeting
Portfolio’s Strategic Business Objectives.
3. Balance the portfolio AMONG Incremental &
Radical investments AND for efficient utilization of
78 resources.

Relationships Among Project Management, Program
Management and Portfolio Management!

Highest Level Portfolio

Lower Level Portfolios Higher Level Programs Projects

Higher Level Programs Lower Level Programs Projects

Projects Projects

Low Level Programs

Projects

79

Comparison Project Management, Program

Item Projects Programs Portfolios
Scope Defined objectives, Larger scope, more Scope changes with
progressively elaborated significant benefits strategic goals

Change Project Managers expect Program Managers Portfolio Managers
change, monitor & must expect change continually monitor
control them. from inside & outside changes in broad
program, and environment.
manage.
Planning Project Managers Program Managers Portfolio Managers
progressively elaborate develop overall develop and maintain
hi-level info into detailed program plan, create relevant processes
plans throughout project hi-level plans for and communication
life cycle guiding detailed at total portfolio level.
planning at
component level

80

Comparison Project Management, Program

Item Projects Programs Portfolios
Management Project Managers Program Managers Manage portfolio
manage the project team manage program management staff.
for meeting project staff and project
objectives. managers. Provide
overall leadership
and vision.
Success Success criteria: product Success criteria: Success criteria:
& project quality, time degree to which aggregate
and cost and degree of program satisfies performance and
customer satisfaction. needs. value indicators.
Project Manager Program Manager Portfolio Manager
Monitoring monitors & controls the monitors and monitors aggregate
project work controls program performance and
components value indicators

81

PMO


Project Management Office

An organizational unit to centralize and coordinate
management of projects under its domain.

At minimum, PMO provides Project Management
Support Functions:
1. Training
2. Software
3. Standardized policies & procedures

82

PMO


Advanced PMOs:
• Can get delegated authority to act as integral
stakeholder and key decision-maker during initiation
of each project.
• Can have authority to Recommend or Terminate
projects TO KEEP BUSINESS OBJECTIVES
CONSISTENT.
• Be involved in selection, management and
redeployment of shared/dedicated project staff.

83

PM Basics: Functions of PMO

1) Administer shared and coordinated resources across
all projects.
2) Identify and deploy PM Methodology/Bests Practices/
Standards.
3) Clearinghouse and management of project policies,
procedures, templates, and other shared documents.
4) Central repository/management for shared & unique
risks for all projects.
5) Central office for operation/management of PM Tools
(enterprise pm software).
6) Mentoring of Project Managers.
84


7) Central coordination of communication across all
projects.
8) Central coordination of overall project quality standards
between PM & other quality staff (internal or external),
or standards organization.
9) Central monitoring: all project timelines and budgets at
enterprise level!

What is the difference between the role of a
Project Manager and a PMO?
85


Role Differences:

1) Project Mangier focuses on specified project objectives.
PMO manages major program scope changes that
(opportunities to better achieve business objectives).

2) Project manager controls assigned project resources.
PMO optimizes use of shared resources across all
projects.

86


Role Differences:

3) Project Manager manages constraints of the project.
PMO manages constraints among all projects at the
enterprise level. PMO manages the methodologies,
standards, overall risk/opportunity, and
interdependences among Projects at the enterprise
level!

87

PM Basic: Role of a Project Manager

Role
The project manager is a person assigned by the
performing organization to achieve project
objectives!
Role of project manager is different from the role of a
functional manager or operations manager.
- functional manager is responsible for providing
oversight for and administrative area.
- operations manager is responsible for a facet of core
business.
88


Reporting- depends on the organizational structure!!
1) May report to functional manager (functional, matrix
organizations).

2) A project manager may one of many other project
managers who report to a program or portfolio manager!

89


Success
In addition to area-specific skills and general management
proficiencies, a project manager needs to have three
Characteristics for effective project management:
1. Knowledge (about project management knowledge).
2. Performance (what he/she is able to accomplish by
using project management knowledge).

90


Success
For effective project management, the project manager is
supposed to possess following characteristics:

3. Personal (personal effectiveness-attitudes, core
personality traits, and leadership-ability to guide the
project team for success while balancing project
constraints

91

Project Management Body of Knowledge

The PMBOK® is the standard for managing:

1. MOST PROJECT,
2. MOST OF THE TIMES,
3. ACROSS MANY INDUSTIRES

THIS STANDARD DEFINES:
- The project management processes (42)
- The tools and techniques of each process
Used to manage a project toward a successful
92 completion!


THIS STANDARD:

- IS unique to the project management
- HAS interrelationships to other project management
disciplines such as program management and
portfolio management!
Note: this standard does not address all the details
of every topic! It contains processes generally
recognized as good practice applicable to single
projects!!
93


THIS STANDARD:
projects!!
Projects are done in a broader context of program
and portfolio management. Other standards may also
be consulted to gain the broader view:
-The Standard For Program Management
-The Standard For Portfolio Management
94


THIS STANDARD:
projects!!
Other standards may also be consulted to gain the
broader view:
- Organizational Project Management Maturity Model
(OPM3) for assess project management process
capabilities.
95

Enterprise Environmental Factors

We need to consider all the external and internal factors
that surround our project!
WHY?
Answer
They may enhance or constraint project
management options! They may have a positive or
negative influence on the outcome!! Remember this.

You will agree when you see what all are these factors.

96


factors
1) Organization culture, structure, and processes
2) Market conditions
3) Government or industry standards
4) Stakeholder risk tolerances
5) Infrastructure
6) Existing human resources and their special skills
7) Personnel administration (staffing, retention, training
8) Work authorization system

97


factors
9) Political climate
10) Organization’s established communication channels
11) Commercial databases
12) PMIS (project management information system)
PMIS- an automated tool. Examples:
- scheduling software tool
- a configuration management system
- an information collection and distribution system
- web interfaces to other online automated systems
98

Project Life Cycle and Organization

1) The Project Life Cycle and Project Phases
2) Project Stakeholders
3) Organizational Influences

99


The Project Life Cycle
and
Project Phases

10
0


What is a project life cycle?
A project life cycle is a collection of generally sequential
and sometimes overleaping project phases!

What leads to deciding their number and names?

Management and control needs of the organization or
Organizations involved in the project determine names
and numbers of the project phases! The industry,
10
the technology, and unique aspects of the organization!
1

PM Basics : “Project Life Cycle and Project Phases”

Projects are unique
Project
undertakings.
Involve a degree of Phase 1 Phase 2 Phase 3
uncertainty.
Hence, each project is divided into several phases
for better management control and providing for
links to the ongoing operations.
Together, the project phases are called the ‘Project
Life Cycle’.
10
2

Makes sure proper
definition of the
project’s product
Project phases: Sequential Logic

Project

Deliverable I Deliverable II Deliverable n
Output of Preceding phase is input to Succeeding phase

Each phase marked by completion of one or more
deliverables.
Takes its name from the item/items, it has to deliver-the
primary phase deliverable.
10
3

Project phases: ‘What is a deliverable?’

DELIVERABLE
is
‘A TANGIBLE, VERIFIABLE WORK PRODUCT’

EXAMPLES
1. A specification,
2. Feasibility report,
3. Detailed design document, or
4. A working prototype
10
4

Project phases: ‘Types of deliverables’

1. 2.
Product deliverables Project Management Deliverables
End products or Deliverables of the
the components of Project management
end products process
for which the project is (charter, scope statement,
undertaken plan, baseline, etc.)

Deliverables, and therefore phases, are part of a
sequential process designed to ascertain proper control
10 of the project and to accomplish the intended Product/
5 Service that is the objective of the project.

PM Basics : “Project Phases and Project Life Cycle”

Phases can be further subdivided into subphases
Size, complexity, level of risk,
Project
and cash flow constraints
decide further division of
Phase 1 Phase 2 Phase 3
phases into subphases.
Subphase
Each subphase is aligned with
Subphase defined deliverable (s) for
monitoring and control, and
Subphase
10 are related to primary phase
deliverable.
6

PM Basics : Phase End Review

Project
Completion of each phase
marked by review of: Deliverable
Requirements Design
1) Key deliverable, n

2) Project performance to date
R R
Determine
- Should project continue
Phase end review = R
into phase.
phase exits
- Find out errors cost
stage gates
10 effectively, and correct
kill points
7 them if necessary.

Beware!
PM Basics : Fast-tracking Phases

Starting activities of next phase without closing the current
phase! Examples abound:
Often, the management review is conducted to decide
beginning activities of next phase before the current
one is closed.
Most IT projects use an iterative cycle in which more
than one phase are undertaken at the same time:
Requirements for a module are collected and analyzed
prior to the design and construction the module.
Requirements of another module are collected while
10 analysis of previous module is underway!
8

PM Basics : Project Phases

Common characteristics of phases
1. When they are sequential

a) at the close transfer of work product
b) phase end review (called phase exit,
milestones, phase gates, decision gates, or
kill points)

2. The work has distinct focus in each phase and involves
10 different organizations and skill sets.
9


Common characteristics of phases
2. The primary deliverable requires an extra degree of
control for success

3. The repetition of process across all 5 process groups
provides that additional degree of control and defines
boundaries of the phase!

11
0


Project phases vital points
• Many projects may have similar phases, few are
identical.

2. Some projects may have just one phase. Single phase
project.

3. Others may have multiple phases.
11
1


Project phases vital points
4. There is no rigid, single way to define ideal structure for
a project. Industry common practices. Some
organization’s own way of defining phases.
Example: “Feasibility Study”
- A routine pre-project work OR
- First phase of the project OR
- A separate stand-alone project
11
2

Typical Sequence of Phases in a PLC

Inputs Idea Resources

Phases INITIAL INTERMEDIATE FINAL

Project Charter Plan Acceptance
Management Scope Baseline Approval
Outputs Statement
Progress Handover

Project PRODUCT
Deliverable

11 Each phase is formally initiated to keep focus on project
3 objectives!

PM Basics: “Project Life Cycle”

Project Life Cycle
Project life cycle (PLC) defines what one needs to do
“ to do the work” on the project
Construction PLC
Feasibility, planning, design, product, turnover, and
startup.
Information systems PLC
Requirements analysis, high-level design, detailed
design, coding, testing, installation, conversion, and
11 operation.
4


BSES
Project

Project
Requirements Design Build Test Turnover
Management

Project life cycle

START PLC Characteristics FINISH

defines start and finish of the project
determines transactional actions at the start and finish
11
of the project
5

PM Basics : Project life cycle characteristics

Uncertainty and risk are highest in the beginning.
The chances of successfully completing the project
are therefore lowest at the start.
But as we proceed, the uncertainty, risk become
progressively reduced, and our chances of
successfully completing the project become
progressively brighter
11
6


Project life cycle characteristics

Uncertainty of Success AND RISK
High

Low
Amount at Stake

11
Life Cycle of Project (Time)
7


The cardinal principle
Stakeholders ability to influence the final
characteristics the product of the project is highest
only in the beginning .
As project proceeds, it gets diminished
progressively and then the cost of any change, or
correction becomes very high.
This lays stress proper scope definition to avoid
11 later surprises .
8


PLC Characteristics

High
Opportunity to add value opportunity to add
value highest at the
start and lowest at
the end.
Cost of change
Low Cost of change lowest at the start
Time
and highest at the
11 Project life cycle end
9



COST TO CORRECTION
High

Low

12 Requirements / Architecture / Detailed Design / Construction Maintenance.
0 Life Cycle of Project (Time)


Project life cycle Example:
BSES Project

BSES
Project

Project
Requirements Design Build Test Turnover
Management

Project life cycle

All the project phases of a project together determine
12 the project life cycle!
1

EXAMPLE 1: Project life cycle and project phases

CONSTRUCTION PROJECTS
Percentage complete

Engineering and Full
major contracts operation Synthetic
let
Yarn Project
Project
“GO”
Installation
decision
substantially
complete

Stage I Stage II Stage III Stage IV

Life cycle stages Stage handoffs
12
2

SOFTWARE PROJECTS

Operations and
production
Deploy Support
EVALUATE IDENTITY
Test Unit Requirements
Evaluation
Evaluation subsystem Requirements
Risk Analysis System Requirements
Software Business
Proof of Requirements
Development Concept
Conceptual
First Build Design
Second Build Logical Design

Third Build
Physical
Design
12 Final Design

3 CONSTRUCT DESIGN

Pharmaceutical PROJECT
Drug Discovery
Project


Process Development

Formulation Stability

A
Post P
Screening Preclinical Phase-I Phase-II Phase-III Registration P
Drug Lead IND File Clinical Clinical Clinical File Activity
Sourcing Identified Workup IND Tests Tests Tests IND R
O
V
A
Metabolism L
Patent Process
Toxicology Post
12 Preclinical Registration(s) Submission
Discovery Screening Development Activity
4 Ten Plus Years
Workup

‘Project Life Cycle’

Most projects are linked to the ongoing operations
of the performing organization
Projects are authorized only after due feasibility
study (or preliminary plan/ equivalent analysis),
which may be taken as a separate project.
This sometimes requires extra phases to develop
and test a prototype before initiating a project for
developing the final product.
Certain internal service projects are initiated
12 informally.
5

‘Project Life Cycle’: Phase-to-phase relationships

Sequential relationship
Overlapping relationship (another phase can start
before completion of another one. Fast tracking.
Increases risk and rework. Used for schedule
compression.
Iterative relationship (only one phase is planned at
any given time and the planning for the next is done
as work progresses on the current phase and
deliverables. Useful in undefined, uncertain, or rapidly
12 changing environments. Research projects.
6

PM Basics: ‘Project Life Cycle and Product life Cycle’

Project life cycle defines start and finish of a project with intermediate
phases. Product life cycle is a broader concept. It begins with business
plan, through idea, to product, ongoing operations and ends with product
divestment. Project life cycle is but a phase of product life cycle!

Product life cycle
Feasibility Product development Operations Disposal

Operation and support
Test and install
Requirements

Construct
Design

12 Maintenance and support
7 Project Life Cycle

Relationship between Project and Product Life Cycle

We must take care to distinguish project life cycle from the product life
cycle, and understand how fast the product will become obsolete, in
view of the technological advances and stiff competition! The design
should withstand longer stay.

UPGRADE

PRODUCT OPERATIONS
LIFE Business
plan
OPRNS DIV
CYCLE I
D
E PRODUCT
A

12 Project
DIVESTMENT
Lifecycle INITIAL INTERMEDIATE FINAL
8

PM Basics : “Project Management Life Cycle”

Project Management Life Cycle
Project management life cycle (PMLC) defines
what one needs to do “ to manage” the
project
PHASE OF PROJECT MANAGEMENT LIFE CYCLE
Initiating, planning, executing, monitoring and
controlling, and closing.

Define Goal Plan Execute Evaluate Close
12 project plan project project

9

PM Basics: Project Stakeholders

Project Stakeholders
Individuals and organizations
Actively involved in the project OR
Whose interests may be positively or negatively
affected by the performance or completion of the
project.
Stakeholders may exert influence over the project, its
13 deliverables, and the project team members!
0


KEY POINT
The project Manager MUST
identify all internal and external stakeholders!
determine their requirements and expectations!!
manage the influence of the various stakeholders in
relation to project requirements to ensure successful
outcome!!!
13
1


Examples of stakeholders
• Customers/users
• Sponsor
• Portfolio managers/portfolio review board
• Program managers
• Project management office
• Project managers
• Project team
• Functional managers
13 • Operations management
2 • Sellers/business partners

Key Project Stakeholders

Sponsor
Government Performing Suppliers
organization Sub Contractors
Top Influencers
Management Boss
Project Manager
Project Staff Team members

Functional department
Customers/ INFUENCERS
personnel in Customer
user PMO
13 Internal Users
organization
3


Relationship between stakeholders and the project

Project
sponsor PROJECT

Project
Manager

Project
Management Team

Project team

Project stakeholders
13
4


Stakeholders responsibility and project outcomes
Stakeholders Responsibility and
authority Project outcomes
Varying levels “DAMAGING”
Changes over the course of
project life cycle

Occasional contributions in
surveys to focus groups to full Project outcomes
project sponsorship (financial /
political support) “HIGHLY
13
POSITIVE”
5


Stakeholders responsibility and project outcomes

Stakeholders Responsibility
and authority Project
outcomes
Project Managers “DAMAGING”
who ignore stakeholders

13
6


Positive / Negative Stakeholders

Positive stakeholders Negative stakeholders
Those who would benefit Those who see negative
from the project outcomes from project’s
Community Business leaders gain
success
from an industrial project as they Environmental activists may see
find economic benefit for the project’s success leading to
community from project’s success environmental hazards.
- Rs. 100 million Reliance Power
Project in Dadri, U.P. hailed by Amar
13 Singh Group of Ruling Party.
7


Stakeholder Management

THE CHALLENGE
Stakeholders have differing needs,
perspectives, and expectations to be
managed by the project manager.

13
8

Stakeholder expectations: “differing objectives”

MARKETING DEPT.
High features
TECHNICAL DEPT.
MANAGEMENT
State-of-Art
profitable
Technology,
low cost of
PRODUCT
GOVERNMENT operation
of
Satisfying
PROJECT
Government CUSTOMER
pollution and Cheaper and
safety norms Long lasting
SOCIETY FINANCE
13 Comfortable and Low cost of
Eco-friendly procurement
9



CONCURRENT ENGINEERING

provides
Solution to the problem
of

“differing stakeholder needs, perspectives,
and expectations”.
14
0



CONCURRENT ENGINEERING
It refers to the combined early efforts of

designers That final
developers product of
producers To ensure the project
salesperson, and satisfies
other stakeholders everyone
14
1


Identify stakeholders
Assess their knowledge and skills
Analyze the project to make sure their needs will
be met
Get and keep them involved through assigning
them work, using them as experts, reporting to
them, involving them in changes and the creation
of lessons learned
14 Get them to sign-off and obtain their formal
acceptance
2


Managing Stakeholders
Resolving stakeholder conflicts is major task on the
project. You have to continuously find ways to satisfy
their needs.
In general, differences between and among
stakeholders should be resolved in favor of the
customer!
But remember, not to disregard needs and expectations
of other stakeholders.
14 In fact, it is your major challenge to find appropriate
resolutions to such differences!!
3

PM Basics: organizational influences

Organizational influences on the project

PROJECT Healthcare
corporations
Institutions

Other
14 Organizations
4


Maturity of the organization with respect to
its:
organizational SYSTEMS
organizational CULTURE and STYLES
organizational STRCUTURE
role of PMO in ORGANIZATIONAL STRUCTURES
PROJECT MANAGEMENT SYSTEM
14
5



Project-based

Non-project-based

14
6



Project-based

derive their revenue from performing projects
engineering/ consultant/ architectural / construction
companies, government contractors
14
7



Non-project-based

adopted management by projects
like their financial system account, track, and report on
multiple, simultaneous projects
14 try to have project management systems
generally do not have adequate PM Systems
8


Organizational
Performance of work Culture

organizational CULTURE and STYLES
Values, norms, beliefs, and expectations
(shared within organization)
Work ethics and work hours
Policies and procedures
14 View of authority relationships
9

IMPACT OF ORGANIZATIONAL INFLUENCES
on the success of the project

Organization culture can be entrepreneurial,
aggressive, participatory, rigid hierarchical, fraught
with infighting and politics, friendly and human-
centered, etc.
REAL LIFE EXAMPLES
1) Pepsi has a culture that is aggressive, your
high-risk approach is welcome there.
2) Century Cotton Mill has rigid hierarchical culture,
your participatory style will not work there.
15 3) HCL Corporation has participatory culture, it can not
0 accommodate anybody’s authoritarian style.


organizational STRCUTURE
Constraints the availability
of
resources
Functional to Projectized

MATRIX
Functional Weak matrix Projectized
Balanced matrix
15 Strong matrix
1

Impact of organizational structure

Tell me what type of organizational structure you are working in
and I will tell you how much you will SUCCEED as a Project Manager !

Organizational structure that has served ongoing
organizations for ages is no longer suitable for
performing projects !!

As Project Manager, you are responsible for managing
the project and if you do not have authority to make
15 resources available, you will fail miserably !!!
2

Impact of organizational structure

FORMS OF ORGANIZATIONAL STRUCTURE
WEAK
MATRIX

BALANCED
Functional PROJECTIZED
MATRIX

STRONG
MATRIX

COMPOSITE
15
3

Functional Structure

MOST COMMON / TRADITIONAL FORM

Organization is structured by functions:

Marketing, Engineering, Manufacturing, Finance, HR.

Each one works
as separate entity
15 with managers and subordinates.
4


organizational STRCUTURE Functional
Staff engaged
Project in project work
coordination
CEO
EXAMPLE Functional Functional Functional
A PRODUCT Manager A Manager B Manager C
DEVELOPMENT
PROJECT
Design phase Staff Staff Staff
called “design
project” by
engineering
department
Staff Staff Staff
Communication
15through heads
of departments Staff Staff Staff
5 only


ADVANTAGES DISADVANTAGES
1) Easier management of 1) More emphasis on
functional specialists. functional specialty to
2) Team members report detriment of the project.
to only one supervisor. 2) Project Manager has no
3) Similar resources are authority.Power with
centralized to function, FMs.
companies are grouped 3) Scope of the project
by functions/specialties. limited to functional
4) Clearly defined career boundary.
15 path in the functional 4) No career in project
6 area. management.

Projectized Structure

PROJECTIZED ORGANIZATIONS ARE
JUST OPPOSITE OF FUNCTIONAL:
All organization is by projects.
The project manager has
total control of projects.

15 Team members are collocated
7 Most organization’s resources assigned to project work


organizational STRCUTURE Projectized
Staff engaged
Project in project work
coordination
CEO
Project Project Project
IDEAL Manager A Manager B Manager C
Project Manager
Sole Authority
Staff Staff Staff
Departments
report directly to
the Project Staff Staff Staff
Manager or
provide support
15
services Staff Staff Staff
8


ADVANTAGES
DISADVANTAGES
1) Project manager has 1) No home for project
ultimate authority over team members when
the project. project is completed.
2) Loyalty to the project. 2) Less efficient resource
3) More effective utilization, though efficient
communication than project organization.
functional. 3) Lack of professionalism
4) Team members are in disciplines.
15 collocated 4) Duplication of facilities
9 and job functions.

Matrix Structure

SINCE BOTH FUNTIONAL AND PROJECTIZED HAVE STRENGTHS
AND WEAKNESSES, we need to maximize strengths and
weaknesses.
MATRIX: best of both organizational structures.

Employees in a matrix organization report to
one FM and at least one PM.
PM and FM together conduct performance
16 review of the employees.
0

Matrix Structure

Matrix organizations are of three types:

WEAK BALANCED STRONG
MATRIX MATRIX MATRIX

16
1

WEAK
MATRIX

Matrix Structure

Weak matrix (more like functional)- Here, the balance
of power rests with the FM and PM is merely an
expeditor or coordinator.
Project expeditor acts mainly as a staff assistant and
coordinates communication. Project expeditor can not
make or enforce any decisions.
Project coordinator has some power to make
decisions and reports to higher level manager than
16
2 expeditor.

Matrix Structure

organizational STRCUTURE Weak matrix
Staff engaged
in project work
CEO
Functional Functional Functional
Manager A Manager B Manager C

Staff Staff Staff
Project
coordination Staff Staff Staff

16 Staff Staff Staff
3

BALANCED
MATRIX

Matrix Structure

Balanced matrix- The power is balanced between
project manager and functional manager.
Each manager has responsibility for his/her part of the
project or organization, and people get assigned to
projects based on the needs of the project, not
strengths or weakness of the manager’s position.

Most organizations are Balanced Matrix these
16 days!
4

Matrix Structure

organizational STRCUTURE Balanced matrix
Staff engaged
in project work
CEO
Functional Functional Functional
Manager A Manager B Manager C

Staff Staff Staff
Project
coordination Staff Staff Staff

16 Project Manager Staff Staff
5

Matrix Structure

STRONG
MATRIX

Strong matrix is more like projectized.
Here,
The balance of power rests with
The project manager
not
16 The functional manager.
6

Matrix Structure

organizational STRCUTURE Strong matrix
Staff engaged
in project work
CEO
Manager of Functional Functional Functional
Project Managers Manager A Manager B Manager C

Project
Staff Staff Staff
Manager
Project
coordination Project
Staff Staff Staff
Manager

16 Project
Staff Staff Staff
Manager
7

Matrix Structure

RELEVANCE FOR PROJECTS

Highly visible project Not cost effective as
objectives. more administrative
Improved PM control personnel are
over resources. needed.
More support from More than one boss for
functions. project team.
Maximum utilization of More complex to
16 scarce resources. monitor and control.
8 Better coordination.

Matrix Structure

Better information flow Tougher problems with
(both horizontal and resource allocation.
vertical) than functional. Requires extensive
Team members policies and procedures.
maintain a home, they FMs may have differing
continue to belong to priorities than PMs.
their respective Higher potential for
departments unlike conflicts and duplication
16 projectized. of efforts.
9

Composite Structure

organizational STRCUTURE Composite organization
Staff engaged
in project work
CEO Project Y
Coordination

Manager of Functional Functional Functional
Project Managers Manager A Manager B Manager C

Project
Staff Staff Staff
Manager
Project X
coordination Project
Staff Staff Staff
Staff
Manager

17 Project
Staff Staff Staff
Manager
0

Organizational structure influences on project

Structure Matrix
Functional Projectized
Features Weak Balanced Strong
Project Little or none Limited Low to FULL
Manager Moderate Moderate AUTHORITY
Power to High
Resource Little or none Limited Moderate Moderate ALMOST
Availability to High TOTAL
Budget Functional Functional Mixed Project Project
Control Manager Manager Manager Manager
Role of Project Part time Part time Full time Full time FULL TIME ON
Manager On projects on projects on projects PROJECTS
17 Administrative Part time on Part time Full time Full time FULL TIME ON
1 Staff On projects on projects on projects PROJECTS

Organization Process Assets
OPAs help us throughout the project!

1. Corporate Knowledgebase

2. Policies, Processes and Procedures

17
2


1. Corporate Knowledgebase
- Historical information from previous projects
- Lessons learned from previous projects
Project files, process measurement databases, issue and
defect management databases, configuration
management databases, versioning and rebaselining info,
Financial databases, overruns, etc.
17
3

2. Policies and Procedures
- organization's policy and procedures for conducting work
Organizational standards, policies, standard product and
project lifecycles, quality policy and procedures, work
instructions, performance measurement criteria, proposal
evaluation criteria, Templates (WBS, Network Diagram,
Contract Templates), ethics policy, project management
policy, Guidelines/criteria for tailoring, Project Closure
17 Guidelines/Requirements..
4

2. Policies and Procedures
- organization's policy and procedures for conducting work
Issue and defect management procedures,
Procedures for prioritizing, approving and issuing work
instructions, Change Control Procedures, Risk Control
Procedures, Financial Control Procedures,
Organizational Communication Requirements.
17
5

PM Basics

Project Management Processes

17
6

PM Basics: Project Management Knowledge Areas

PM Basics: Last Leg!
“The Project Management Processes”
But, before we master its concepts, we
need to know the knowledge areas
which contribute
as building blocks of the
Project Management Process Groups!
17
7


Project Management
Knowledge Areas

Describe Project Management Knowledge and Practice in
terms of THEIR COMPONENT PROCESSES.
9 Knowledge Areas!

17
8


o Integration
o Scope WHY
o Time
o Cost
o Quality NINE
o Human Resource
o Communications KNOWLEDGE
o Risk
o Procurement
AREAS?
17
9


Project Integration Management Develop Project Charter
Develop Project Management Plan
Supports various elements Direct and Manage project
of project management which execution
are identified, defined, Monitor and control project work
Combined and coordinated Perform Integrate change control
Close project or phase
Project Scope Management
To ensure project includes Collect requirements
all the work required and Define scope
Only the Work needed to Create WBS
complete project Verify scope
18 Successfully Control scope
0


Project Time Management Define Activities
Sequence Activities
To ensure timely completion Estimate Activity Resources
Estimate Activity Durations
of the project
Develop Schedule
Control Schedule

Project Cost Management
Planning, controlling, and Estimate Costs
managing costs so Determine budget
that project is completed Control Costs
18 within approved Budget
1


Project Quality Management
Plan Quality
To ensure project will satisfy Perform Quality Assurance
NEEDS for which it was Perform Quality Control
undertaken

Project HR Management
Develop Human Resource plan
To make most effective Acquire project team
use of people involved Develop project team
with the project Manage project team
18
2


Project Com. Management Identify Stakeholders
To ENSURE TIMELY and
Plan Communications
APPROPRIATE generation, Distribute Information
collection, dissemination, Storage Manage stakeholders expectations
and disposition of the Report Performance
PROJECT INFORMATION

Project Risk Management
Plan Risk Management
Identify Risks
Concerned with
Perform Qualitative risk analysis
identifying, analyzing, and
Perform Quantitative risk analysis
responding to project risks Plan Risk responses
18
Monitor and control Risks
3


Project Procurement
Management Plan procurements
To acquire material, goods Conduct procurements
and services outside Administer procurements
Close procurements
performing organization
To meet project scope

18
4

PM Basics

So, here we come!
We will now deal with
Project Management Processes
Project Processes Just a foundation
talk
Process Groups at the outset!
Process Interactions
Customizing Process Interactions
18
Mapping of Project Management Processes
5

PM Basics: Project Management Processes

Project Team must:
1) Select right processes within the process groups.
2) Use defined approach to adapt product specs and
plans to fulfill PROJECT and PRODUCT
Requirements.
3) Adhere to the requirements to fulfill the needs,
wants, and expectations of the stakeholders.
4) Balance competing demands of Scope, Time,
Cost, Quality, Resources, and risk to accomplish
18 a quality product, service, or result.
6


We will discuss about what is required to:
1) Initiate
2) Plan
3) Execute
4) Monitor and control, and
5) Close a project.

18
7


Project Processes
What is a process?
To accomplish
A set of A
interrelated PERFORMED pre-specified
actions set
& of products,
activities services, or
results
18
8


Project processes are performed by the project team
and consist of two main categories:

1) Project
Management
Project Processes
Processes

Product-oriented
18 Processes
2)
9


1) Are common to most projects most of the
time.
2) Are related with each other by their
performance for an integrated purpose of
initiating, planning, executing, monitoring and
controlling, and closing a project!
3) These processes interact with each other in
19 complex ways (discussed a little later).
0

PM Basics: Product-oriented Processes

1) Specify and create project’s product.
2) Are typically defined by the respective
project life cycle.
3) Vary by application area!

Both project management processes and product-oriented
processes overlap throughout the project.

19 Example: You can not define the project scope without
basic knowledge of how to create the concerned product!
1

PM Basics: Project Processes

Project management A change in scope
is an integrative effort
Always Though, it may or
Any action or lack affects may not affect
of it in one area product quality
affects other areas or morale of the
team
Scope, Time, Project cost
Cost,
19 Quality, Risk, etc.
2

PM Basics: Project Processes SOME TRUTHS!

Project processes interactions require trade
offs among project objectives (scope, time,
cost, and performance).
Enhancing performance in one area leads to
scarifying SOMETHING in another area.
Hence, project objectives are called triple
constraints shown through a triangle with its
sides or corners representing each constraint
19 (we have already discussed it).
3

PM Basics: PM Process Groups

Initiating
Process Group

Authorizes the project or phase

19
4


Planning
Process Group
1) Establish the scope of the project,
2) Refine the objectives,
3) Define the course of action for attaining the
objectives.
19
5


Executing
Process Group

Complete the work defined in the project
management plan to satisfy the project
specifications! Coordinates people and resources.

19
6


Monitoring & Controlling
Process Group

- Track, review, and regulate the progress and
performance of the project.
- Manage changes to the project management
plan
19
7


Closing
Process Group

- Finalize all activities across all Process
Groups to formally close the project or phase.

- Brings it to an orderly end.
19
8

Project Management Process Groups
INTERACTIONS

PM Basics: Project Management Process Groups

PM process groups are
Charter linked by their outputs.
Initiating Planning Output of one is input to
Process Process another .

Project
For Project Recommended Plan
Plan updates Corrective
actions
Controlling Executing
Process Process
Work results
Implemented
Correctly Corrective actions
Produced
deliverables
19 for formal
Closing
Process
9 acceptance

Project Management (PMP Material)

Project Management (PMP Material)

Empfohlen

Empfohlen

Weitere ähnliche Inhalte

Was ist angesagt?

Was ist angesagt? (20)

Andere mochten auch

Andere mochten auch (14)

Ähnlich wie Project Management (PMP Material)

Ähnlich wie Project Management (PMP Material) (20)

Mehr von VR M

Mehr von VR M (20)

Kürzlich hochgeladen

Kürzlich hochgeladen (20)

Project Management (PMP Material)