PROJECT MANAGEMENT

For this portion of the session, the learning objectives are:

What is a Project? Project characteristics To know about Project Management Project Management fundamentals Project Objective Statement Project Life cycle Project Management Process

Organization for project management

PROJECT MANAGEMENT

PROJECT MANAGEMENT

INTRODUCTION
HISTORIC PROJECTS

Project Defined
A project is a unique effort with a defined beginning and end, a specific deliverable, and specified resources. As per PMI a project is a temporary endeavor undertaken to create a unique product, service, or result. 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.
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A project can be considered to be any series of activities and tasks that:

Have a specific objective to be completed within certain specifications Have defined start and end dates

Have funding limits (if applicable)

Consume human and nonhuman resources (i.e., money, people, equipment) Are multifunctional (i.e., cut across several functional lines)
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Some characteristics of Projects

1. A project involves a single, definable purpose, end-item, or result, usually specified in terms of cost, schedule, and performance requirements. 2. Every project is unique in that it requires doing something different than was done previously. A project is a one-time activity, never to be exactly repeated again. 3. Projects are temporary activities. An adhoc organization of personnel, material, and facilities is assembled to accomplish a goal, usually within a scheduled time frame; once the goal is achieved, the organization is disbanded or reconfigured to begin work on a new goal. 4. Projects cut across organizational lines because they need the-skills and talents from multiple professions and organizations. Project complexity often arises from the complexity of advanced technology, which creates task interdependencies that may introduce new and unique problems.
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5. Given that a project differs from what was previously done, it also involves unfamiliarity. It may encompass new technology and, for the organization undertaking the project, posses significant elements of uncertainty and risk.

6. The organization usually has something at stake when doing a Project. The activity may call for special scrutiny or effort because failure would jeopardize the organization or its goals.
7. Finally, a project is the process of working to achieve a goal; during the process, projects pass through several distinct phases, called the project life cycle. The tasks, people, organizations, and other resources change as the project moves from one phase to the next.

The Project Management Institute (PMI) defines project management as, The application of knowledge, skills, tools, and techniques to project activities in order to meet or exceed stakeholder needs and expectations.
Project management is the process by which projects are defined, planned, monitored, controlled and delivered such that the agreed benefits are realized. Projects are unique, transient endeavors undertaken to achieve a desired outcome. Projects bring about change and project management is recognized as the most efficient way of managing such change. Definition from the Association for Project Management, UK

Some Applications of Project Management

Construction or renovation of a plant, an office complex, a residential housing plan, a sports stadium, or a freeway. Research and development associated with a new product. Relocation of a major facility (e.g., a plant or a hospital). Manufacture, maintenance, or repair, of a large item (e.g., an airplane or a nuclear reactor). Installation of a new information technology (e.g., a new accounting system or a new supply chain management system). Countdown for a launch of a rocket and putting the satellite into orbit. Making financial arrangements (e.g., an IPO or a revenue bond). A fund raising campaign for a charity.

An advertising campaign.
A political campaign. Performing a complex surgery. Filming a major motion picture.
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Project Management Project management is the application of knowledge, skills, tools and techniques to project activities to meet project objectives. The major objectives that must be met include performance, cost, and time goals, while at the same time you control or maintain the scope of the project at the correct level.

Project management is accomplished through the use of the following 5 processes: Initiation Planning Execution Controlling and Closure

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Project initiation Selection of the best project given resource limits Recognizing the benefits of the project Preparation of the documents to sanction the project Assigning of the project manager Project planning Definition of the work requirements Definition of the quality and quantity of work Definition of the resources needed Scheduling the activities Evaluation of the various risks Project execution Negotiating for the project team members Directing and managing the work Working with the team members to help them improve Project monitoring and control Tracking progress Comparing actual outcome to Project closure predicted outcome Verifying that all of the work has been Analyzing variances and impacts accomplished Making adjustments Contractual closure of the contract 12 Financial closure of the charge numbers Administrative closure of the papework

Project Management fundamentals

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1. Define and Organize the Project

Benefits of Defining and Organizing:

Clarifies the purpose of the project Establishes the project objectives Clarifies the deliverable(s) or solution which is needed Defines the project parameters Initiates building a solid project organization Establishes a framework for the project team

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Draft the Preliminary Objective Initiate a dialogue with key stakeholders Draft the preliminary Project Objective Statement (POS) Prepare a preliminary priority matrix

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The POS is a single declarative statement of the objective of the project. It states what you are going to do (scope), by when (date needed), and for how much (resources allocated).

It should be stated in no more than 25 words. Make it Clear, Concise

and Complete. Use ordinary language (or languages-translate as needed). Avoid

technical jargon, buzzwords, or expertise-specific phrases). Use terms

and concepts all the stakeholders will understand. State dates in standard formats including day, month, an, year. State resources in monetary terms and/or headcount. The POS is a target to help guide the planning process. Once a plan is developed it becomes the formal objective of project.
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Project Life cycle

Every program, project, or product has certain phases of development known as life-cycle phases. A clear understanding of these phases permits managers and executives to better control resources to achieve goals. These phases include: Conceptual Planning Execution Closure

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The first phase, the conceptual phase, includes the preliminary evaluation of an idea. Most important in this phase is a preliminary analysis of risk and the resulting impact on the time, cost, and performance requirements, together with the potential impact on company resources.
The second phase is the planning phase. It is mainly a refinement of the elements in the conceptual phase and requires a firm identification of the resources required and the establishment of realistic time, cost, and performance parameters.

This phase also includes the initial preparation of documentation necessary to support the system.
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The third phase is the implementation/execution phase, which integrates the projects product or services into the existing organization. If the project was developed for establishment of a marketable product, then this phase could include the product life-cycle phases of market introduction, growth, maturity, and a portion of deterioration. The final phase is closure/termination and includes the reallocation of resources. Consider a company that sells products to consumers. As one product begins the deterioration and death phases of its life cycle (i.e., the divestment phase of a system), new products or projects must be established
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PROJECT LIFE CYCLE PLAN

The project life cycle is a key consideration in project planning. The typical project life cycle has four phases: initiation, planning, execution and control, and closeout. These phase can be different to meet the needs of a specific industry and the names may differ.

Project Management Process

As a manner and means of progressing, a project management process sets the tone for the conceptualization of project management; the planning and execution of concepts, methods, and policies; and the commitment of resources to the project endeavors. In its entirety a project management process provides a paradigm for how the management functions of planning, organizing, motivation, directing, and control will be carried out in the commitment of resources on the project.

The Project Management Process

The project management process means planning the work and then working the plan. 7 steps of planning 1. Clearly define the project objective. 2. Divide and subdivide the project scope into major pieces 3. Define the specific activities for each piece (work package) 4. Graphically portray the activities that need to be performed fro each work package in order to accomplish the project objective in the form of network diagram. 5. Make a time estimate for how long it will take to complete each activity resources needed. 6. Make a cost estimate for each activity. 7. Calculate a project schedule and budget to determine whether the project can be completed within the required time, with the allotted founds, and with the available resources.

A simple yet important way of further describing the management process through its major functions is indicated below: Planning What are we aiming for and why? In the execution of this function, the organizations mission, objectives, goals, and strategies are determined. Organizing Whats involved and why? In carrying out the organizing function, a determination is made of the need for human and nonhuman resourcesand how those resources will be aligned and used to accomplish the organizations mission. Authority, responsibility, and accountability are the glue that holds an organization together. Motivation What brings out the best performance of people in supporting the organizations purposes? Directing Who decides what and when? In the discharge of this management function, the manager provides the face-to-face leadership of the organizational members. Controlling Who judges results and by what standards? In this function the manager monitors, evaluates, and controls the effectiveness and efficiency in the utilization of organizational resources.
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Representative Functions/Processes of Project Management

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Organization models for

PROJECT MANAGEMENT

Organizational Models
-The project as part of the functional organization or pure line organization. -The project as a free-standing part of the parent organization (project organization). - A third type, called a matrix organization. is a hybrid of the two main type

The pure line organization

or functional organization (see Figure 2-2) does not have a specific position for project managers Project managers are specialist or Line managers who are aligned to the project for a specific time. The project is divided into partial tasks and delegated to responsible departments. The team members continue to report to their line-directors and upper managers.

The advantages are

- Reduced overhead, as no additional project team members have to be hired - Provides clearly marked career paths for hiring and promotion - Employees work alongside colleagues who share similar interests. therefore the expertise of the team members stays within their departments - No structural change for running the project required -Flexibility for changes in the project scope -Easy post-project transition as the project team members simply continue doing their line job again.

The disadvantages are:

- Co-ordination of functional tasks is difficult as little reward for co-operation with other departments is granted since authority resides with functional supervisor - Provides scope for different department heads to pass off company project failures as being due to the failures of other departments - Slow reaction time due to long communication lines within the project

Within the pure project organization (task-force) the project manager is fully responsible for a group of specialists, which have temporarily dedicated their entire workforce to the project (see Figure 2-3).

The advantages are:

-Simple and fast, as the project manager has full line authority over the project and all members of the project team are reporting directly to the project manager -The lines of communication are shortened: the ability to make a swift decision is enhanced -A cross-functional integration is supported as a pure project organization can maintain a permanent cadre of experts who develop skills in specific technologies - A project team that has a strong and separate identity and develops a high level of commitment from its members - The organizational structure tends to support a holistic approach to the project

-The disadvantages are:

--Each project has to be full staffed which can lead to a duplication of staff numbers - Project managers tend to stockpile equipment and technical assistance as this represents the importance of their project within the organization - The post-project transition is difficult as there tends to be concern among team members about career after the project ends

The matrix organization as shown in figure 2-4 is a combination of a functional and a pure project organization. This organizational structure allows for participation on multiple projects while performing normal functional duties. A greater integration of expertise and project requirements can be achieved.

The advantages are:

The advantages of a functional organization and project team structure are retained Resources can be coordinated in a way that applies them effectively to different projects Team Members can maintain contact with project teams as well as with their functional department colleagues, they can be chosen in-time. according to the needs of the project The project team will be more agile and able to view problems in a different way as specialists have been brought together in a new environment. Project managers are directly responsible for completing the project by a specific deadline and budget. Team members can return to their old line responsibility after finishing the project

The disadvantages are:

Potential for conflict between functional vs. project groups due to unclear responsibilities as the principle of unity of command is violated with a matrix organization A conflict of loyalty between line managers and project managers over the allocation of resources Costs can be increased if more (project) managers are created through the use of project teams The balance of power between the project and functional areas is very delicate The division of authority and responsibility in a matrix organization is complex and uncomfortable for the project manager Project workers have at least two bosses, their functional heads and the project manager.

PROJECT MATRIX ORGANIZATIONS

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Choosing the Project Organization

Choosing the right project organization is the first and probably tile most important key to success for project management. Therefore a great deal of time should be spent in considering the decision about formation, preparation and initiation of the project organization. Best practice is a step-wise approach, to define the goals and implications of the project within the current organizational structure:

PROJECT MANAGEMENT
For this portion of the session, the learning objectives are:

PMBOK (Project Management Body of Knowledge) Project Management Knowledge Areas Project Scope Management Project Time Management Project Cost Management Project Quality Management Project Communication Management Project Integration Management (sub units) Project Procurement Management Project Human Resource Management

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PMBOK (Project Management Body of Knowledge) Structure of PMBOK Project Management Knowledge Areas Project Scope Management Project Time Management Project Cost Management Project Quality Management Project Communication Management Project Integration Management (sub units) Project Procurement Management Project Human Resource Management Project Risk Management

What is PMBOK (Project Management Body of Knowledge) ?

The Project Management Body of Knowledge (PMBOK) is an inclusive term that describes the sum of knowledge within the profession of project management. The full PMBOK includes knowledge of proven, traditional practices which are widely applied as well as knowledge of innovative and advanced practices which have seen more use.

Structure of PMBOK includes 5 major project management process groups

 Within the five major process groups there are 9 knowledge management (KM) areas
Project Management Knowledge Areas Project Scope Management Project Time Management Project Cost Management Project Quality Management Project Human Resource Management Project Communication Management Project Risk Management Project Procurement Management Project Integration Management (sub units)

PMBOK Project Management Framework

PROJECT SCOPE MANAGEMENT Project Scope Management includes the processes required to ensure that the project includes all the work required, and only the work required, to complete the project successfully. Figure 5-1 provides an overview of the Project Scope Management processes, which include the following: 5.1 Collect Requirementsthe process of defining and documenting stakeholders needs to meet the project objectives. 5.2 Define Scopethe process of developing a detailed description of the project and product. 5.3 Create WBSthe process of subdividing project deliverables and project work into smaller, more manageable components. 5.4 Verify Scopethe process of formalizing acceptance of the completed project deliverables. 5.5 Control Scopethe process of monitoring the status of the project and product scope and managing changes to the scope baseline.

WORK BREAK DOWN STRUCTURES(WBS)

The process of developing the WBS is to establish a scheme for dividing the project into major groups, and then dividing the major groups into tasks, subdividing the tasks into subtasks, and so forth. Projects are planned, organized, and controlled around the lowest level of the WBS, called work packages. The planned work is contained within the lowest level WBS components, which are called work packages. A work package can be scheduled, cost estimated, monitored, and controlled.

The organization of the WBS should follow some orderly identification scheme; each WBS element is given a distinct identifier. With an aircraft, for example, the WBS might look like the information as under: Aircraft System Airframe Tail section Wings Engines Avionics Documentation Operators manual Repair manual Test and Demonstration Static system test on the ground Dynamic air test, - Initial flight for aerodynamics, - Initial flight maneuver test, Endurance flight test Logistics Maintenance tools Repair parts (spares)

PROJECT TIME MANAGEMENT Project Time Management includes the processes required to manage timely completion of the project. Figure 6-1 provides an overview of the Project Time Management processes, which are as follows:

6.1 Define ActivitiesThe process of identifying the specific actions to be performed to produce the project deliverables. 6.2 Sequence ActivitiesThe process of identifying and documenting relationships among the project activities. 6.3 Estimate Activity ResourcesThe process of estimating the type and quantities of material, people, equipment, or supplies required to perform each activity. 6.4 Estimate Activity DurationsThe process of approximating the number of work periods needed to complete individual activites with estimated resources. 6.5 Develop ScheduleThe process of analyzing activity sequences, durations, resource requirements, and schedule constraints to create the project schedule. 6.6 Control ScheduleThe process of monitoring the status of the project to update project progress and managing changes to the schedule baseline.

PROJECT COST MANAGEMENT Project Cost Management includes the processes involved in estimating, budgeting, and controlling costs so that the project can be completed within the proved budget. Figure 7-1 provides an overview of the Project Cost Management processes which include the following: 7.1 Estimate Coststhe process of developing an approximation of the monetary resources needed to complete project activities. 7.2 Determine Budgetthe process of aggregating the estimated costs of individual activities or work packages to establish an authorized cost baseline. 7.3 Control Coststhe process of monitoring the status of the project to update the project budget and managing changes to the cost baseline.

PROJECT QUALITY MANAGEMENT Project Quality Management includes the processes and activities of the performing organization that determine quality policies, objectives, and responsibilities. It implements the quality management system through policy and procedures with continuous process improvement activities conducted throughout, as appropriate. Figure 8-1 provides an overview of the Project Quality Manager processes which include the following: 8.1 Plan Qualitythe process of identifying quality requirements and/or standards for the project and product, and documenting how the project will demonstrate compliance. 8.2 Perform Quality Assurancethe process of auditing the quality requirements and the results from quality control measurements to ensure appropriate quality standards and operational definitions are used. 8.3 Perform Quality Controlthe process of monitoring and recording results of executing the quality activities to assess performance and recommend necessary changes.

Project Management Knowledge Areas Continued..

Project Human Resource Management Project Communication Management Project Risk Management Project Procurement Management Project Integration Management (sub units)

Project Human Resource Management

Project Human Resource Management includes the processes that organize, manage, and lead the project team. The project team is comprised of the people with assigned roles and responsibilities for completing the project.

Figure 9-1 provides an overview of the Project Human Resource Management processes, which are as follows: 9.1 Develop Human Resource PlanThe process of identifying and documenting project roles, responsibilities, and required skills, reporting relationships, and creating a staffing management plan. 9.2 Acquire Project TeamThe process of confirming human resource availability and obtaining the team necessary to complete project assignments. 9.3 Develop Project TeamThe process & improving the competencies, team interaction, and the overall team environment to enhance project performance. 9.4 Manage Project TeamThe process of tracking team member performance, providing feedback, resolving issues, and managing changes to optimize project performance.

Develop Human Resource Plan: Tools and Techniques

Project Communication Management

Project Communications Management includes the processes required to ensure timely and appropriate generation, collection, distribution, storage, retrieval, and ultimate disposition of project information.

Project managers spend the majority of their time communicating with team members and other project stakeholders, whether they are internal (at all organizational levels) or external to the organization.

Figure 10-1 provides an overview of the Project Communications Management processes which include the following: 10.1 Identity StakeholdersThe process of identifying all people or organizations impacted by the project, and documenting relevant information regarding their interests, involvement, and impact on project success. 10.2 Plan CommunicationsThe process of determining the project stakeholder information needs and defining a communication approach.

10.3 Distribute InformationThe process of making relevant information available to project stakeholders as planned.
10.4 Manage Stakeholder ExpectationsThe process of communicating and working with stakeholders to meet their needs and addressing issues as they occur. 10.5 Report PerformanceThe process of collecting and distributing performance information, including status reports, progress measurements, and forecasts.

Project Risk Management

Project Risk Management includes tile processes of conducting risk management planning, identification, analysis, response planning, and monitoring and control on a project. The objectives of Project Risk Management are to increase the probability and impact of positive events, and decrease the probability and impact of negative events in the project.

PROJECT PROCUREMENT MANAGEMENT Project Procurement Management includes the processes necessary to purchase or acquire products, services, or results needed from outside the project team. The organization can be either the buyer or seller of the products, services, or results of a project. Project Procurement Management includes the contract management and change control processes required to develop and administer contracts or purchase orders issued by authorized project team members.

Figure 12-1 provides an overview of the Project Procurement Management processes which include the following:
12.1 Plan ProcurementsThe process of documenting project purchasing decisions, specifying the approach, aid identifying potential sellers. 12.2 Conduct ProcurementsThe process of obtaining seller responses, selecting a seller, and awarding a contract. 12.3 Administer ProcurementsThe process of managing procurement relationships, monitoring contract performance, and making changes and corrections as needed. 12.4 Close ProcurementsThe process of completing each project procurement

Project Integration Management

Project Integration Management includes the processes and activities needed to identify, define, combine, unity, and coordinate the various processes and project management activities within the Project Management Process Groups.

Integration includes characteristics of unification, consolidation, articulation, and integrative actions that are crucial to project completion, successfully managing stakeholder expectations, and meeting requirements.

Figure 4-1 provides an overview of Project Integration Management processes, which are as follows:
4.1 Develop Project CharterThe process of developing a document that formally authorizes a project or a phase and documenting initial requirements that satisfy the stakeholders needs and expectations. 4.2 Develop Project Management PlanThe process of documenting the actions necessary to define, prepare, Integrate, and coordinate all subsidiary plans. 4.3 Direct and Manage Project ExecutionThe process of performing the work defined in the project management plan to achieve the projects objectives. 4.4 Monitor and Control Project WorkThe process of tracking, reviewing, and regulating the progress to meet the performance objectives defined in the project management plan. 4.5 Perform Integrated Change ControlThe process of reviewing all change requests, approving changes, and managing changes to the deliverables, organizational process assets, project documents, and the project management plan. 4.6 Close Project or PhaseThe process of finalizing all activities across all of the Project Management Process Groups to formally complete the project or phase.

PROJECT MANAGEMENT
For this portion of the session, the learning objectives are:

Planning for Project management Project Plan Development

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PROJECT MANAGEMENT and PLANNING

The most important responsibility of the project team is to develop the project plan in consent with other supportive stakeholders. Project planning is reflective thinking about the projects future in relationship to its present role in the design and execution of enterprise strategies.

The project plan must be harmonious with the strategic plan of the enterprise, the functional plans, and, where appropriate, with the plans of the relevant stakeholders.
If the project plans are inadequate, then the review of the project during its life cycle is greatly affected.

Project planning and controls are interrelated. Planning prescribes the path to be followed in executing the project, whereas the controls are the means to collect, analyze, compare, and correct. Project controls are an integral part of project planning. A useful flowchart model below shows this interrelationship and shows the sequence in which planning is required.

PLANNING

Project Plan Development Approach

Step 1: Determine the project concept Step 2: Assess the project Step 3: Develop a strategy for the project Step 4: Identify major milestones and initial schedule Step 5: Define initial budget using milestones. Step 6: Identify groups/organizations will be involved Step 7: Determine the methods/tools to be employed in the project. Step 8: Identify the areas of risk and association them with milestones and tasks. Step 9: Refine the schedule and budget Step 10: Identify project manager/leader Step 11: Identify and establish the project team Step 12: Develop the detailed project plan

Step 1: Determine the Project Concept Project Concept: Purpose of the project Scope of the project Benefits of the project General roles of the project which organizations are going to do what Basic issues that the project may face Evaluation of Specific Objectives & Scope Do the objectives and scope fit with the organization? Are the objectives too broad or too focused? Are potential resources available? What are the areas of risks? Are the benefits reasonable given the purpose and scope?

Step 2: Assess the Project Perspectives: Technology Competition Government Regulations Cross-impacts examples First, determine which items can be employed in the project Second, determine where risks lie up front, before the project is started. Third, use the list to validate your objectives and scope.

Step 3: Develop a Strategy for the Project What should your strategy address? How will you organize the project? How will you select the project leader/team? What will be the role of the team in project management? How will you manage risk and address issues? Step 4: Identify Major Milestones and Initial Schedule Milestones: Draw up at least 10 to 20 milestones for each sub projects. Logically relate the milestones between the subprojects in terms of dependences. Take a piece of paper and lay it out sideways.

Step 5: Define Initial Budget List 4 or 5 key resources for each milestone Next, develop an initial budget by milestones for each subproject. Estimate overhead and other resources as a group (including facilities, supplies, and equipments as well as personnel). Step 6: Identify Groups/Organizations will be Involved Organization Role and importance of Involvement

Step 7: Determine the Methods & Tools to be Employed in the Project First, determine the set of methods/tools for the actual work. Another set of methods and tools for the project management.

Step 8: Identify the Areas of Risk and Associate them with Milestones & Tasks Refine and label more detailed milestones which involve risks (smaller milestones). Use the list of issues that may impact the project as defined in the project concept. Identify any tasks (milestones) to which an issue pertains. Step 9: Refine the Schedule and Budget Refine the estimates of budgets and schedule based upon the risks identified in the tasks. Step 10: Identify Project Managers -Identify several alternative project managers -Need a backup plan for a project leader when leaves a project before completion.

Step 11: Identify and Establish the Project Team -Identify and establish a few key people as the core of the project team. Step 12: Develop Detailed Project Plan -For each subproject enter the milestones and the resources that you identified. -Now define the tasks that lead up to each milestone (you now have a work breakdown structure with a list of tasks). -Establish dependencies between tasks. -Assign up 4 to 5 resources per task. -Estimate the duration of each task and set the start date of the project. -Assign the quantity of each resource for the tasks. -Analyze the schedule and make changes by changing duration, dependencies, resources, and starting dates.

Some Guidelines for planning Build a plan with great detail on the near-term tasks but less detail for tasks that are further out in the future. Take a project and divide it into phases. Remain sensitive to the environment Understand what Not to do in a project Hold one person accountable for each detailed task Minimize documentation Analyze risks at the start of a project Use a chart to create a picture of the project