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PROJECT MANAGEMENT
Chapter 1:Modern Project Management

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What is a Project ?
Project Defined
A complex, non-routine, one-time effort limited by time, budget,
resources, and performance specifications designed to meet customer
needs.

Major Characteristics of a Project

1. Has an established objective.
2. Has a defined life span with a beginning and an end.
3. Progressive elaboration.
4. Requires across-the-organizational participation.
5. Involves doing something never been done before.
6. Has specific time, cost, and performance requirements.

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What Project is not ?

Project is not a routine work!!!

Routine, repetitive work Projects

Routine house work (cleaning) Remodeling your house

Watching marketing campaign Developing/ uploading your own

videos marketing video
Processing supply chain requests Developing a supply chain info system

Manufacture of iPod Designing the next gen iPod

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What is Project Management ?

Project Management is application of Knowledge, Skills, Tools, and
Techniques to project activities to meet the requirements/ needs.

The needs may fall into any of the following categories:

1. Business need: Setting up a new business, starting a venture
2. Market need: Improving product mix, developing a new product
3. Customer request for project management: Projects by consultants
4. Technological push: Developing new technologies
5. Organizational structure change, geographical expansion
6. Legal/ social requirements

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What is a Program ?
Program Defined
A series of coordinated, related,
multiple projects that continue over an
extended time and are intended to
achieve a goal.
A higher level group of projects
targeted at a common goal.

Example:
Project: completion of a required
course in project management.
Program: completion of all courses
NASA launch services Program
required for a business major.

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What is a Portfolio ?
Portfolio Defined
A collection of projects and programs that are grouped together for
pursuing objectives focused on some specific business strategy.
Scope of portfolio is wider than Projects or Programs.

Example:
Portfolios of Petroleum refinery, Petrochemical complexes

Focus of portfolio management is on the broad macro-economic and

industrial conditions and trends in the nation; and how the
organizations resources can be augmented and employed for optimal
benefits.

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The Project Life Cycle

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The Project Life Cycle

Starting the Organizing/ Carrying out the work Closing the
Cost and staffing level/ Degree

project Preparing project

Stakeholder influence, risk, uncertainty Project Time

Cost of changes

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Project Management processes

1. Initiating process group
Defines and authorizes the project/ project phase
2. Planning process group
Defines/ Refines the project objectives and plans and plans detailed course of action
3. Executing process group
Manages people (own/ vendor) and resources (materials, equipment, technology)
4. Monitoring and controlling process groups
Monitor performance and control wherever necessary
5. Closing process groups
Formalizes acceptance of the result created by the project and brings to an orderly
close.

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Knowledge areas (1 of 2)
1. Project scope management
Takes care of the processes required to ensure inclusion of all works to complete
successfully. (Collect requirements, Define scope, create WBS, Verify and Control)
2. Project time management
Includes processes required for timely completion of the project. (Define activities,
sequence, estimate resources and durations, develop schedule)
3. Project cost management
Includes processes for estimating the project cost (estimate cost & determine budget)
4. Project quality management
Includes process that conform quality criteria, and all policy and procedures are
followed (Plan quality, Perform quality assurance, Perform quality control)
5. Project human resources management
Includes processes required to acquire, organize, train and manage project team.

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Knowledge areas (2 of 2)
6. Project communication management
Includes the processes required to ensure timely generation, collection, distribution
and storage of necessary project information (Identify stakeholders, Plan
communication, Report performance)
7. Project risk management
Includes all the processes required to identify the project risks, prepare qualitative/
quantitative analysis and prepare suitable risk mitigation plan.
8. Project procurement management
Includes processes required to acquire materials, products, technologies, services for
carrying out the project. (Plan, conduct, and administer procurements)
9. Project integration management
Proactively manage and integrate the project management processes related to the
above 8 knowledge areas.

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The Project Manager:

Manages temporary, non-repetitive activities and frequently acts
independently of the formal organization.
Marshals resources for the project.
Is linked directly to the customer interface.
Provides direction, coordination, and integration to the project team.
Is responsible for performance and success of the project.

Must induce the right people at the right time to address the right
issues and make the right decisions.

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Project vs. Functional Manager

Functional manager
Plan, schedule, motivate, and control
Same teams and job.
Manages a set of processes

Project manager
Plan, schedule, motivate, and control
Create project teams which never existed before
Decides on what and how things to be done
Makes tradeoff between time, cost and performance requirements
Is a star in his/ her organization and is well compensated.

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Importance of Project Management

Factors leading to the increased use of project management:
1. Compression of the product life cycle
2. Global competition
3. Knowledge explosion
4. Corporate downsizing
5. Increased customer focus
6. Rapid development of Third World and closed economies
7. Small projects that represent big problems

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Integrated Project Management Systems

Problems resulting from the use of piecemeal project management
systems:
Do not tie together the overall strategies of the firm.
Fail to prioritize selection of projects by their importance of their
contribution to the firm.
Are not integrated throughout the project life cycle.
Do not match project planning and controls with organizational culture to
make appropriate adjustments in support of project endeavors.

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Integrated Management of Projects

Selection and management of projects fail to
support the strategic plan of the organization.
Strategic plans are written by one group of
managers, projects selected by other group, and
implemented by the third group.
Leads to conflicts, confusion and hence, an
unsatisfied customer

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PMP Technical & Socio-cultural dimensions

Technical dimension represents the
science of Project Management
while cultural dimensions represent
the art of managing project.

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Project integration management process

Develop Project Charter
Develop project management plan
Direct and manage project execution
Monitor and control project work
Close project or Phase

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Project integration management process

Process Inputs Tools and Outputs
Techniques
Develop Project Charter Business case, Statement of Expert judgment Project Charter
work, Customer request for (reference for making all
PM, Organizational process decisions during project life
aspects, Enterprise cycle)
environmental factors

Develop project Project charter, outputs from Expert judgment Project management
other planning processes,
management plan Enterprise environmental
plan
factors

Direct and manage Project management plan, Expert judgment, Project deliverables,
Approved change requests,
project execution constraints
PM Info. Systems Document updating

Monitor/ control project
work
Close project or Phase
Project Management Plan, Expert judgment Change requests,
Performance reports, etc.
Updating documents
Project Management Plan, Expert judgment Project closure reports
Accepted deliverables,
Organizational process assets

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Case 1.2
Coal fired Boilers Project

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Next session

Project selection & organizational strategy

Reading: Case study on Film Prioritization

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