PROJECT

MANAGEMENT
Chapter 1: Understanding
Project Management

Purpose of the PMBOK Guide

PMBOK Guide identifies those elements of the
project management body of knowledge that are
generally recognized as good practice.
Project management offers a structured approach
to managing projects.
Application of knowledge, processes, skills, tools,
and techniques can have a significant impact on
project success or failure
Generally recognized means the knowledge and
practices are applicable to most projects most of
the time, and there is consensus about their
value and usefulness.

Purpose of the PMBOK Guide

Good practice means there is general
agreement that the application of the knowledge,
skills, tools, and techniques can enhance the
chances of success over many projects.
Good practice does not mean that the
knowledge described should always be applied
uniformly to all projects
PMBOK Guide provides and promotes a
common vocabulary within the project
management profession for using and applying
project management concepts.

A common vocabulary is an essential element of

a professional discipline.

What is a Project?

What is a Project?
Temporary means that every
project has a definite beginning and
end.
Unique means that the product,
service, or result is different from
others.

A project is a need, opportunity

scheduled for solution
Problems, needs, and
opportunities continually arise
any place at anytime and if
solved may create value for
stakeholders.
Problems: Low operational
efficiency / Environmental conflicts
Needs: Modifying a product /
software / Additional factory space ,
Opportunities: Lunching a new
product in the market / Expand the
business / Takeover a company

r
o
d
e
ne ortu
opp
nity

WHAT IS A
PROJECT?
A project is an activity that :
is temporary having a start and
end date
is unique

ATTRIBUTES OF PROJECTS
A project MUST contain a well defined
objective.
Brings about change
(problem/need/opportunity)
Organizes work toward a predefined goal
or objective
Is multifunctional (i.e., cut across several
functional lines)
Project objective impact on the scope

ATTRIBUTES OF PROJECTS
A project has a degree of UNCERTAINTY
arising from:

access to resources.
resources capability.
assumptions that support decisions.
impact on environmental factors.

Requires project managers to re-assess

and balance the trade-offs between
scope, costs, and time..

Project Management vs
Operation Management
What is an Operation?
Operations are permanent activities that
produce repetitive results (with resources
assigned to do the same set of tasks and
produce a standard output)
Manufacturing operations and accounting
operations are examples of operations
In the life of a product, the manufacturing
of the product will continue as usual but
there will be many projects to improve the

WHICH OF THE
FOLLOWING ARE
PROJECTS?
Building a deck
Implementing a new
system
Mowing the lawn
Planning a wedding
Planning a fundraiser
Planning a student
graduation

Yes
Yes
Yes
Yes
Yes
Yes

No
No
No
No
No
No

MEASURING PROJECT
SUCCESS
SCOPE

On time
On budget
On scope
Meeting customer
s expectations
(quality)

TIME

QUALIT
Y
COS
T

WHY DO PROJECTS FAIL?

Poor project planning and
discipline
Lack of executive-level support
Wrong team members
Poor communication
No measures for evaluating the
success of the project
No risk management
Inability to manage change

Project Management: Art and

Science
Project management is the art of
understanding stakeholders needs and
expectations and leading the people to
get things done also.
Project management is science as it
involves the understanding, knowledge
and application of processes, tools and
techniques to achieve the project goal.

What is Project
Management?
Project management
deals with people,tools
and processes
Projects are people, and
Tool
people engage in
processes to get results. s
If the people do not work
well, neither will the
processes; and if the
processes dont work,
goals wont be achieved .

Peopl
e
Proce
ssess

Project Management is
about People
Assets by themselves wont make any
money for you.
It is only people who create value and
money for you.
Project management is all about dealing
with people to create value

What is Project
Management?
Project management is the application
of knowledge, skills, tools, and
techniques to project activities to
meet the project requirements
(stakeholder's needs and
expectations)
Is anything missing in this
definition?

Project Constraints
A project constraint is a limiting
factor that affects the achieving of
the project goal

Project constraints simply mean that,

project teams always work under
some limitations and restrictions.

Traditional Triple
Constraints

Every project is constrained by its:

Scope goals: What work will be done?
Time goals: How long should it take to
complete?
Cost goals: What should it cost?
Project managers duty to is to balance
these three often-competing goals.
Successful project management means
meeting all three goals (scope, time, and

PMBOK Project
Constraints
Project Management involves balancing
limitations (project constraints) for
successful completion of the project. For
example:
Scope : Work as defined in contract
Schedule: Customer imposed completion
dates
Budget: Sponsor imposed funding limits
Quality : Conformance to a quality model as
defined in contract
Resources: Unavailability of skilled &
competent human resources
Risks: Threats due to natural calamities

Project Managers

must :

direct all activities required to successfully

meet the project objectives
manage risk scanning ahead for potential
issues and resolving them before they become
a problem
solve problems - recommending alternative
approaches to problems that arise and
providing guidance to the Project Sponsor
track and report project progress

Managing a Project
Areas of
Knowledge that
a Project Manager
is required to
manage

Scope
Time
Cost
Quality
Human Resources
Communication
Procurement
Risks
Stakeholders
INTEGRATION

Key Processes in Projects

Project management is accomplished through a
number of interlinked processes (a set of
interrelated activities /tasks directed toward a
particular result (output)) called project
management processes:
Initiating,
Planning,
Executing,
Monitoring and Controlling, and
Closing.

Project Management Process Groups

Start

Plan

Do

Check & Correct

End

Project Management Process

Groups
PROCESS GROUP

Initiating Process Group

Project Plan Evolution

IDEA
Proble
m,
Need,
Opport
unity

Project
Overvi
ew
Statem
ent

Busine
ss
Case

Project
Charte
r

Project
Plan

Initiating Process Group

Project Initiation
Initiating a project includes recognizing and starting a
new project or project phase.
Some organizations use a pre-initiation phase, while
others include items such as developing a business case
as part of the initiation.
The main goal is to formally select and start off projects.
Key outputs include:

Assigning the project manager.

Identifying key stakeholders.
Completing a business case.
Completing a project charter and getting signatures on it.

Project Initiation Documents

Every organization has its own
variations of what documents are
required to initiate a project. Its
important to identify the project
need, stakeholders, and main goals.

PROJECT CHARTER: PMIs

Definition
A Project Charter is the process of developing a
document that formally authorizes a project or a
phase and documenting initial requirements that
satisfy the stakeholders needs and expectations.
It establishes a partnership between the performing
organization and the client.
The approved Project Charter formally initiates the
project.

Project Charter
The Project Charter is used to set the project direction and defines the measures of
success.
A Project Charter is created at the beginning of a project, approved by the stakeholders,
and signed off before work can begin.
There is no official project without an approved Project Charter
The Project Charter provides a high-level overview of the project.
It allows all stakeholders to agree and document project scope, objectives, timeframe,
and deliverables.
A Project Charter will be the single most important tool the project manager/lead
utilizes for managing the expectations of the project sponsor and all other stakeholders.
Preparing and using a Project Charter is one of a project managers most important
jobs.

Key Sections on a Project

Charter

Project Goal/s
Scope Statement
Deliverables
Key Stakeholders
Assumptions
Constraints
Initial Risks
Schedule Estimates
Cost Estimates
Success Criteria
Signatures

Key information from the Project Charter

Project Purpose or Justification

Measurable Project Objectives
High-level Requirements
High-level Project Description
High-level Risks
Summary Milestone Schedule
Summary Budget

Benefits of Using a Project

Charter
Stakeholders are clearly defined
Communication channels are defined
Roles and Responsibilities are outlined
Scope is Defined Helps prevent Scope
Creep
Improved Project Management Processes
in later Phases
Increased Probability of project Success
BUY IN from Project Team Members

PROJECT CHARTER Summary

A Project Charter officially initiates a
Project
Project Charters are a High-level view
of the Project objectives,
deliverables, and scope
Project Charters are living documents
and need to be updated as the
Project moves forward
Important tool for a PM/PL to manage
requirement (expectations)

Planning Process Group

Planning Process Group

Project Planning
Keyn purpose of project planning is to guide
execution.
Every knowledge area includes planning
information.
Key outputs include:

A team contract.
A scope statement.
A work breakdown structure (WBS).
A project schedule, in the form of a Gantt chart with
all dependencies and resources entered.
A list of prioritized risks (part of a risk register).

Plan a list of prioritized Risks

Executing Process Group

Project Executing
Project execution usually takes the most time and
resources.
Project managers must use their leadership skills
to handle the many challenges that occur during
project execution.
Table 3-9 on page 99 lists the executing
processes and outputs. Many project sponsors
and customers focus on deliverables related to
providing the products, services, or results
desired from the project.
A milestone report (see example on page 100)
can keep the focus on completing major
milestones.

Part of Milestone Report

Monitoring and Controlling

Process Group

Project Monitoring and

Controlling
Involves measuring progress toward project
objectives, monitoring deviation from the plan, and
taking corrective action to match progress with the
plan.
Affects all other process groups and occurs during
all phases of the project life cycle.
Outputs include performance reports, requested
changes, and updates to various plans.

Monitoring and Controlling

Process Group

Closing Process

Project Closing
Involves gaining stakeholder and customer
acceptance of the final products and services.
Even if projects are not completed, they should be
formally closed in order to reflect on what can be
learned to improve future projects.
Outputs include project archives and lessons
learned, which are part of organizational process
assets.
Most projects also include a final report and
presentation to the sponsor or senior management.

Project Information / Reports

Project Stakeholders
A stakeholder is an individual, group, or organization with
interest in a decision, activity, or outcome of a project.
Stakeholders may have interests that may be positively or
negatively affected by the performance or completion of the
project and may be actively involved in the project .
Different stakeholders may have competing expectations that
might create conflicts within the project (conflict of interests).
Stakeholders may also exercise influence over the project, its
deliverables, and the project team in order to achieve a set of
outcomes that satisfy their own interest or needs.

Project Stakeholders
A project can be perceived by the stakeholders as having
positive or negative results over their interests.
Overlooking negative stakeholder interests can result in an
increased likelihood of failures, delays, or other negative
consequences to the project. When some members of a
community benefit from an industrial expansion project in the
form of additional jobs and supporting infrastructure. But,
other members may lose their property, be forced to relocate
or accept unwanted changes in the environment ( adversely
affected by the project).
An important part of a project managers responsibility is to
manage stakeholder expectations,

Project Stakeholders
Stakeholders also include all members of the project team as
well as all interested parties that are internal or external to the
organization.
The project team identifies stakeholders in order to determine
the project requirements and the expectations of all parties
involved.
The project manager should manage the influences of these
various stakeholders in relation to the project requirements to
ensure a successful outcome.

Project Stakeholders
Stakeholder identification is a continuous process throughout the
entire project life cycle.
Identifying stakeholders, understanding their relative degree of
influence on a project, and balancing their demands, needs, and
expectations are critical to the success of the project.
Failure to do so can lead to delays, cost increases, unexpected issues,
and other negative consequences including project cancellation.
An example is late recognition that the legal department is a
significant stakeholder, which results in delays and increased
expenses due to legal requirements that are required to be met
before the project can be completed or the product scope is
delivered.

Project Stakeholders

Project Governance
Project governance the alignment of the project with
stakeholders needs or objectivesis critical.
Project governance provides a framework in which the
project manager and sponsors can make decisions that satisfy
stakeholders needs and expectations, and
organizational strategic objectives .

Project Management
Process

WORK-BREAKDOWN
STRUCTURE
Hierarchy of tasks required to complete project
Each task is broken into smaller tasks that can
be managed and estimated
Define task dependencies
Some tasks must begin at the same time,
some must end at the same time and some
cannot start until the other tasks have finished.
Estimate task durations and cost
May be inputted into project management
software
Final WBS plan is called baseline WBS

WORK BREAK DOWN STRUCTURE

Portfolio and Program

WHAT IS A PROGRAM?
A group o interrelated projects managed in a coordinated
way.
A program will always have Project ( but not all projects are
part of a program)
Usually a program manager provides leadership and
direction for the project managers within a program.
Benefits of Programs: Decreased Risk / Economies of
Scale.
WHAT IS A PORTFOLIO?
A collection of projects or programs not necessarily related.

An Overview to Portfolios,
Programs, Projects and Operations

Portfolio
Managem
ent
Program
Managem
ent

Project
Managem
ent

Portfolio
Operatio
ns

Progra
m
Proje
ct
Proje
ct

Proje
ct
Proje
ct

Proje
ct
Proje
ct

Servic
es

Operation
s
Managem
ent

Product

Product Managem
s
ent

KEY PROJECT TERMS

Deliverables: Tangible things that the
project produces
Milestones: Key events/facts that
must he ocurred to keep going
performed.
Tasks/Actions. Activities undertaken during
the project
Risks: Potential problems that may arise
during the project
Issues: Risks that have happened
Gantt Chart: A specific type of chart
showing time and tasks.
Stakeholder: Any person or group of people