Yabut, Jaemmy N.

4th Year | A-433 | July 20, 2024

ASSIGNMENT 1

Project

 A project is a short-term effort to make something new, like a product, service, or result.

It has clear goals, a start and end date, and a series of tasks to complete. The main goal is

to meet the project's aims within the set limits of time and budget while providing value

to those involved.

Project constraints

 Cost: It refers to the budget allocated for the project. Managing cost is crucial to ensure

the project remains financially viable and does not exceed the available funding.

 Scope: It outlines what is included and excluded in the project, ensuring all stakeholders

have a clear understanding of the project's boundaries.

 Quality: It refers to the standards and criteria that the project's deliverables must meet to

satisfy the stakeholders. Balancing quality with other constraints is essential to deliver a

product that meets or exceeds stakeholder expectations.

 Risk: It encompasses the potential events or conditions that could negatively influence

the project. Identifying, assessing, and mitigating risks is crucial to minimize their impact

on project objectives.

 Resources: It include the personnel, equipment, materials, and other assets required to

complete the project. Efficient resource management ensures that the necessary resources

are available when needed and used effectively.

 Time: It refers to the schedule for completing the project, including all tasks and

milestones. Effective time management helps prevent delays and ensures the project is

completed within the agreed timeframe.

Yabut, Jaemmy N. 4th Year | A-433 | July 20, 2024

Project management

 Project management is the process of guiding a team to complete a project successfully.

The goal is to finish the project on time, within budget, and to meet the desired quality.

Project managers oversee all these activities to ensure everything runs smoothly and any

problems are addressed.

History of project management

 Early methodologies were not well-documented, but their results, such as the pyramids,

Stonehenge, and mass human migrations, still stand as testaments to human ingenuity.

 In the late 19th century, monumental projects like the intercontinental railroad

exemplified advances in large-scale project execution.

 The early 20th century saw the advent of scientific management by Frederick Taylor and

the Gantt chart by Henry Gantt, which revolutionized industrial processes and project

task visualization.

 By the mid-20th century, methodologies like CPM and PERT emphasized task

sequences, dependencies, and the critical path, while the establishment of the Project

Management Institute (PMI) and the creation of the Project Management Body of

Knowledge (PMBOK) formalized project management as a profession.

 Today, project management is recognized as a specialized skill set across diverse

industries, supported by certifications such as PMP and CAPM, the latest PMBOK

edition, and methodologies like Agile and waterfall, highlighting the integration of

projects into broader portfolios and programs.

Yabut, Jaemmy N. 4th Year | A-433 | July 20, 2024

Five process groups

 Initiating: This phase involves defining and authorizing the project or a project phase.

Key activities include identifying stakeholders, setting project objectives, and creating a

project charter. The goal is to ensure that the project has a clear purpose and necessary

approvals to proceed.

 Planning: In this phase, detailed plans are developed to outline how the project will be

executed, monitored, and closed. It includes defining scope, creating a schedule,

estimating costs, and planning resources.

 Executing: This phase involves carrying out the project plan by coordinating people and

resources, as well as implementing the project’s activities. Key tasks include managing

teams, communicating with stakeholders, and ensuring that project deliverables are

produced according to the plan.

 Monitoring and Controlling: This phase includes tracking and measuring project

performance to ensure that it stays on course. It involves comparing actual progress

against the project plan, making adjustments as needed, and addressing any issues or

risks.

 Closing: In this phase, the project is finalized and formally closed. Activities include

delivering the final product or service, obtaining stakeholder acceptance, and

documenting lessons learned.

Knowledge areas in project management

 Project Integration Management: It ensures all parts of the project are properly

coordinated, including project plan development and execution.

Yabut, Jaemmy N. 4th Year | A-433 | July 20, 2024

 Project Scope Management: It defines and controls what is included and excluded from

the project.

 Project Time Management: It involves planning and controlling the schedule to ensure

timely completion.

 Project Cost Management: It focuses on budgeting and controlling costs to keep the

project within financial constraints.

 Project Quality Management: It ensures that the project’s deliverables meet the required

standards and stakeholder expectations.

 Project Human Resource Management: It involves organizing, managing, and leading the

project team.

 Project Communications Management: It ensures effective information exchange among

stakeholders.

 Project Risk Management: It identifies, analyzes, and mitigates risks that could impact

the project.

 Project Procurement Management: It involves acquiring goods and services from external

sources.

 Project Stakeholder Management: It engages and manages relationships with everyone

affected by the project.

Project selection

 Project selection is the process of evaluating and choosing projects that align with an

organization's strategic goals and resource availability. The process is visualized as a

funnel because it begins with a broad range of potential projects and systematically

narrows down to a few selected ones.

Yabut, Jaemmy N. 4th Year | A-433 | July 20, 2024

Strategic alignment

 Strategic alignment refers to the process of ensuring that an organization's strategies,

objectives, and actions are consistently directed towards achieving its long-term goals.

Effective strategic alignment ensures that every part of the organization works cohesively

towards common objectives.

Qualitative selection tools

 Project Selection Checklist: A project selection checklist is a straightforward tool that

helps evaluate potential projects against a predefined set of criteria. It involves listing

essential factors, such as alignment with strategic goals and feasibility, and checking if

each project meets these criteria.

 Weighted Checklist: A weighted checklist enhances project evaluation by assigning

weights to different criteria based on their importance. This approach provides a more

detailed and quantifiable comparison that considers both the significance of each criterion

and how well each project addresses them.

Quantitative selection tools

 Money Made: This tool measures the total revenue or profit generated from an

investment or project. It is a straightforward way to assess financial performance by

comparing the amount earned against initial costs.

 Project Payback Period: This tool calculates the time required to recover the initial

investment from the project's cash flows. It helps assess how quickly an investment will

start generating profit.

Yabut, Jaemmy N. 4th Year | A-433 | July 20, 2024

 Time Value of Money (TVM): TVM evaluates how the value of money changes over

time due to factors like inflation and interest rates. It helps determine the present value of

future cash flows or the future value of current investments.

 Multiyear Time Value of Money: This tool extends the TVM concept over multiple

years, accounting for the compounding effects of interest and inflation over an extended

period.

 Net Present Value: This tool evaluate the profitability of an investment by calculating the

difference between the present value of cash inflows and the present value of cash

outflows over time, discounted at a specific rate.

o If NPV is positive, it indicates that the investment is expected to generate more

value than the cost, suggesting it is financially viable.

o If NPV is zero, the investment is expected to break even, meaning it neither gains

nor loses value.

o If NPV is negative, it suggests that the investment will result in a net loss,

implying it is not financially worthwhile.

Project schedule

 A project schedule is a plan that shows what needs to be done in a project and when. It

lists all the tasks, important dates, and deadlines. This helps everyone know what to work

on and when to finish it, making sure the project gets done on time and stays on track.

Project charter

 A project charter is a formal document that authorizes the start of a project and outlines

its objectives, scope, key stakeholders, and overall framework. The charter serves as a
Yabut, Jaemmy N. 4th Year | A-433 | July 20, 2024

foundational guide, ensuring alignment and providing a reference for decision-making

throughout the project's lifecycle.

Elements of a project charter

 Scope: Defines the general boundaries and objectives of the project, detailing what will

be done.

 Timing Parameters: Specifies the duration for which the project is authorized.

 Team: Identifies the core project team members and project manager, distinguishing

between those permanently assigned and those temporarily involved.

 Cost Parameters: Sets the budget limits within which the project must operate, requiring

reauthorization if exceeded.

 Constraints: Lists any factors or limitations that may impact the project's execution.

 Sponsor: Names the individual who authorizes and supports the project.

 Business Case or Rationale: Provides a brief explanation of the project's purpose.

 Comments or Notes: Includes any additional observations, special requests, or notes from

the sponsor or stakeholders.

 Authorization Signatures: Requires signatures from the sponsor and project manager, and

possibly other key management team members, to formalize the charter.

Analyzing stakeholders

 First, identify stakeholders by mapping all relevant parties and understanding their roles

and perspectives. Then, rank these stakeholders based on their level of interest in the

project's outcomes, prioritizing those most affected by or invested in the results. Finally,

assess and rank stakeholders according to their power to influence the project's success or

failure, considering their authority, resources, and capacity to impact decisions.

Yabut, Jaemmy N. 4th Year | A-433 | July 20, 2024

Outcome of stakeholder analysis process

 Stakeholder Register: It is a document that identifies each stakeholder's interests,

influence, and contact information. This register serves as a reference for managing

stakeholder engagement throughout the project lifecycle.

 Power or Interest Grid: The power or interest grid is a tool used to categorize

stakeholders based on their level of power and interest in the project. It guides how to

tailor communication and engagement efforts to address stakeholder needs and concerns.

Project scope

 A project scope describes what a project will deliver and what it will not. This helps keep

the project on track and ensures everyone involved understands what needs to be done.

Work breakdown structure

 A Work Breakdown Structure (WBS) is a way to divide a project into smaller, more

manageable parts. It breaks the project down into a list of tasks, organized in a tree-like

structure. Each level of the WBS goes into more detail, making sure nothing is missed

and everything is manageable.