Project Management Framework

Muhammad Waseem
MS-IT/ PMP
mwjaved@yahoo.com

Organizational
Structure
Functional Organization
Matrix Organization
Projectized Organization

Organizational Structure
Influences On Projects

Advantages and
Disadvantages
E:\PMP New\Meterial for Project Mangmnt
\Rite PMP six edition.pdf

Project Life Cycle

Typical Sequence of Phases in a Project Life Cycle

Project Life Cycle

Project Management Process Groups Mapped to the Plan-DoCheck-Act Cycle

Project Life Cycle

Project Management Process Group Triangle

Sequential, Overlapping
and
Iteration
When your project has sequential phases, each
phase starts after the previous phase is 100%
complete.

Sometimes you need teams to work independently

on different parts of the project, so that one team

delivers their results while another team is still
working. Thats when youll make sure that your
phases have an overlapping relationship.

Iteration means executing one phase while

planning the next

Comparison
In Overlapping the first phase is set to deliver while the
second is still executing. but for some projects you might
have an overlapping phase that ends before the previous
phase.As a result, overlapping phases can get pretty
complicated to manage! Thats why overlapping phases
can increase risk, because your team might have to do a
lot of rework.

Iteration is a really effective way to run certain kinds of software

projects. Agile software development is an approach to
managing and running software projects thats based on the idea
of iterative phases.

Managing project
constraints

Time ,

Cost,

Scope ,

Any time your

project
changes,
youll need to
know how that
change affects
all of the
constraints

Resources, Quality, Risk

If you dont manage all six constraints at the same time, you risk
managing in favor of just one constraint.

Project Life Cycle

Project Boundaries

You cant manage your

project
in
a
vacuum
Enterprise Environmental Factors
People
The skills and organizational culture where you work.

Market
The way your company is performing in the market can affect the way
you manage your project.

Risk Tolerance
Some companies are highly tolerant of risk and some are really risk averse.

Standards
Some companies depend on government standards to run their business
and when they change, it can have a big impact

Databases
Where your company stores its data can make a big difference in the
decisions you make on your project.

Project Integration
Management
Describes the processes and activities that

integrate the various elements of project

management, which are identified, defined,
combined, unified and coordinated within the
Project Management Process Groups.

Project Integration
Management
Project management Process Group

Knowledge Area

Project Integration
Management

Initiating Planning

Develop
Projecct
Charter

Develop
Project
Management
Plan

Monitorin
g and
Executing Control

Direct and
Manage
Project
executions

Monitor and
Control
Project Work

Perform
Integrated
Change
Control

Closin
g

Close
Project
or
Phase

Project Integration
Management
Develop Project Charter
developing the project charter that formally authorizes a project
or a project phase.

Develop Project Management Plan

documenting the actions necessary to define, prepare, integrate,
and coordinate all subsidiary plans into a project management
plan.

Direct and Manage Project Execution

executing the work defined in the project management plan to
achieve the projects requirements defined in the project
scope statement.

Project Integration
Management
Monitor and Control Project Work
monitoring and controlling the processes used to
initiate, plan, execute, and close a project to meet the
erformance objectives defined in the project
management plan.
Integrated Change Control reviewing all change

requests, approving changes, and controlling changes

to the deliverables and organizational process assets.

Close Project finalizing all activities across all of

the Project Management Process Groups to formally
close the project or a project phase.

Project Integration
Management
Develop Project Charter
The very first thing thats done on a new project is the
development of the project charter. Thats the document that
authorizes you to do your work. But youre not always
involved in making itoftentimes its handed to you by the
sponsor.

Project Integration
Management
Develop Project Charter
INPUT
Project Statement Of Work
Business Case
Contract
Enterprise Environmental Factor
Organizational Process assets

TOOLS and TECHNIQUES

Expert Judgment
Project Selection Method
OUTPUT
Project Charter

Develop Project Charter

INPUT
Project Statement Of Work

Business Case
Contract

Enterprise Environmental Factor

Organizational Process Assets

Tools and Techniques

Expert Judgment
Project Selection Method
Benefit Measurement Method

(Comparative
Approach)
Constrained Optimization Method
(Mathematical
Approach)

Project Selection Method

Benefit Measurement Method

Murder Board
Peer Review
Scoring Model
Economical Methods
Constrained Optimization Method
Linear Programing
Dynamic Programing
Integer Programing
Multi-objective Programing

Project Selection Method

Economical Methods
Present Value (PV)
Net Present Value (NPV)
Internal rate of Return (IRR)
Payback Period
Benefit-Cost Ratio

Present Value
Present Value means that value today of Future
cash flow and can be found with this formulaFV
PV= ----------( 1+r)n
PV = Present Value
FV=Future Value
r = Interest rate
N = number of years

Project Selection Method

What is the present Value of $300,000

received from now if we expect the interest

rate to be 10% per year.

Project Selection Method

What is the present Value of $300,000

received from now if we expect the interest

rate to be 10% per year.
FV
PV= ----------( 1+r)n
PV= 300000/(1+.1)3
= 300000/1.331
= 225394.44

Project Selection Method

Net Present Value (NPV)
This is the actual value at a given time of the

project minus all of the costs associated with

it. This includes the time it takes to build it
and labor as well as materials. People
calculate this number to see if its worth
doing a project.

 You have two projects to choose from. Project A will take

three years to complete and has an NPV of $45,000. Project

B will take six years to complete and has an NPV of
$85,000. Which one would you prefer?

Just know that it is the present value of total benefit

(Revenue or income) minus the cost over many time

periods. NPV is useful because it allows for a comparison of
many project to select the best project to intiate. Generally,
if the NPV is positive the investment is a good choice unless
an even better investment opportunity exist.
The project with greatest NPV is selected.

Project Selection Method

Time

Income/Revenue

PV @10%

Cost

PV of Cost

200

200

50

45

100

91

100

83

300

225

353

NPV

353 - 291

291

62

Project Selection Method

Internal rate of return
This is the amount of money the project will

return to the company that is funding it. Its

how much money a project is making the
company. Its usually expressed as a
percentage of the funding that has been
allocated to it.

Project Selection Method

Benefit cost ratio (BCR)
This is the amount of money a project is going

to make versus how much it will cost to build

it. Generally, if the benefit is higher than the
cost, the project is a good investment.

Project Selection Method

Bank return of 2 % every year
If a company has more than one project in

which to invest , the company may look.

Project at the different projects return and
then select the highest one.
Question
You have two projects to choose from. Project
A with an IRR of 21 & or Project B with an IRR
of 15 % . Which one u preferred?

Project Selection Method

Payback Period
This term Refers to the number of time

periods it takes to recover your investment in

the project before you start accumulating
profit.
You have two project from which to choose.

Project A with a payback period of six months

or project B with a payback period of 18
months. Which one would u prefer???

Project Selection Method

You have two project from which to

choose. Project A with a payback period of

six months or project B with a payback
period of 18 months. Which one would u
prefer???
Project A

Project Selection Method

Benefit-Cost Ratio
Benefit Cost Ratio relates to costing project
and to determining what work should be
done. This ratio compares the benefit to the
costs of different options. In this case ,
benefits are the same as revenue .
Remember
(Revenue is not the same as profit)
Ratio > 1 , Ratio < 1,
Ratio = 1

Project Integration
Management
Planning
Develop Project Management Plan
INPUT
Project Charter
Output from Planning Processes
Enterprise Environmental Factor
Organizational Process assets

TOOLS and TECHNIQUES

Expert Judgment
OUTPUT
Project Management Plan

Project Integration
Management
Execution
Direct And Manage Project Executions
INPUT
Project management Plan
Approved Change Request
Enterprise Environmental Factor
Organizational Process assets

TOOLS and TECHNIQUES

Expert Judgment
Project Management Information system

Project Integration
Management
Execution
Direct And Manage Project Executions
OUTPUT

Project Deliverables
Work Performance
Change Request
Project Management Plan Updates
Project Management Documents Updates

Project Integration
Management
Monitor and Control
Monitor and Control Project Works
INPUT
Project Management Plan
Performance Reports
Enterprise Environmental Factor
Organizational Process assets

TOOLS and TECHNIQUES

Expert Judgment
OUTPUT
Change Request
Project Management Plan Updates
Project Management Documents Updates

Project Integration
Management
Monitor and Control
Perform Integrated Change Control
INPUT
Project Management Plan
Work Performance Information
Change Request
Enterprise Environmental Factor
Organizational Process assets

TOOLS and TECHNIQUES

Expert Judgment
Change Control Meetings

Project Integration
Management
Monitor and Control
Perform Integrated Change Control
OUTPUT

Change Request status up dates

Project Management Plan Updates
Project Management Documents Updates

Project Integration
Management
Closing
Close Project Or Phase
INPUT
Project Management Plan
Accepted Deliverables
Organizational Process assets

TOOLS and TECHNIQUES

Expert Judgment
OUTPUT
Final Product , Service or result
Organizational Process Assets Updates

The End
Thank You very Much For your
attention and patience

Questions If any