Project Management

Fundamentals

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PROJECT MANAGEMENT FRAMEWORK CONTENTS

What is the Project ? Project Management Data and

What is Project Management ? Information
Importance of Project Management. Tailoring
Project , Program and Portfolio Project Management Business
Documents
PMBOK Guide Key Contents :
Project Influences
The Project Lifecycle
Project Phase Organizational Structure
Phase Gate Project Management Office
Project Management Processes The Role of Project Manager
Project Management Process Questions
Groups
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WHAT IS A PROJECT?

Temporary endeavor undertaken to create a unique

product, service or result.

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1-TEMPORARY:

Definite Beginning & End

End reaches when:
Objectives reached
Objectives cannot be met
Need for project no longer exists
Projects are not “ ongoing” efforts
Does not generally apply to outcomes

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 2-UNIQUE:
 A unique product that can be either a component of another item, an
enhancement or correction to an item, or a new end item in itself (e.g.,
the correction of a defect in an end item).

 A unique service or a capability to perform a service (e.g., a business

function that supports production or distribution).

 A unique result, such as an outcome or document (e.g., a research

project that develops knowledge that can be used to determine
whether a trend exists or a new process will benefit society).

 A unique combination of one or more products, services, or results (e.g., a

software application, its associated documentation, and help desk services).

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 LEGAL
REQUIREMENT

MARKET WHY ARE ORGANIZATION

DEMAND PROJECTS NEED
UNDERTAKEN?

CUSTOMER
REQUEST
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 EXAMPLES:

• Developing a new pharmaceutical compound for market,

• Expanding a tour guide service,
• Merging two organizations,
• Improving a business process within an organization,
• Acquiring and installing a new computer hardware system for use in
an organization,
• Exploring for oil in a region,
• Modifying a computer software program used in an organization,
• Conducting research to develop a new manufacturing process, and
• Constructing a building.

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 EXAMPLES:

• Pyramids of Giza,
• Olympic games,
• Great Wall of China,
• Taj Mahal,
• Publication of a children’s book,
• Panama Canal,
• Development of commercial jet airplanes,
• Polio vaccine,
• Human beings landing on the moon,
• Commercial software applications,
• Portable devices to use the global positioning system (GPS), and
• Placement of the International Space Station into Earth’s orbit.
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 ENDING PROJECTS:

• The project’s objectives have been achieved;

• The objectives will not or cannot be met;

• Funding is exhausted or no longer available for allocation to the

project;

• The need for the project no longer exists (e.g., the customer no longer
wants the project completed, a change in strategy or priority ends
the project, the organizational management provides direction to end
the project);

• The human or physical resources are no longer available; or

• The project is terminated for legal cause or convenience. 9

PROJECTS DRIVE CHANGE:

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Organizational State Transition via a Project

PROJECTS ENABLE BUSINESS VALUE CREATION

Examples of tangible elements include:

• Monetary assets,
• Stockholder equity,
• Utility,
• Fixtures,
• Tools, and
• Market share.
Examples of intangible elements include:
• Goodwill,
• Brand recognition,
• Public benefit,
• Trademarks,
• Strategic alignment, and
• Reputation. 11
PROJECT INITIATION CONTEXT

• Meet regulatory, legal, or social requirements;

• Satisfy stakeholder requests or needs;
• Implement or change business or technological strategies; and
• Create, improve, or fix products, processes, or services.

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PROJECT INITIATION CONTEXT

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PROJECTS VS. OPERATIONS

Project Operation
TEMPORARY ONGOING

UNIQUE REPETITIVE

ENDS WHEN DOES NOT END WHEN

OBJECTIVES ARE MET OBJECTIVES ARE MET
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EXERCISE 1

Project or Operation

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EXERCISE 1

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WHAT IS PROJECT MANAGEMENT?
Project management is the application of
processes, knowledge, skills, experience tools and
techniques to project activities to achieve project
objectives.

It includes:
Identifying requirements
Establishing clear & achievable objectives
Balancing the competing demand for quality, scope, time
and cost
Adapting the specifications & plans
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WHAT PROJECT MANAGEMENT IS NOT?
Managing or building a software
Preparing a schedule or bar chart
Preparing the progress reports showing
accomplishments
Coordinating work and communicating with
stakeholders
For engineers
Project Management is a science and art

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THE PROJECT CONSTRAINTS
SCOPE

RISK QUALITY
The
Project

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COST TIME
PROGRAM MANAGEMENT
A program is a group or related projects managed
in a coordinated way to obtain benefits and control
that cannot be achieved from managing them
individually.

Program Management is the centralized

coordinated management of a program to achieve
the program’s strategic objectives and benefits.

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PROGRAM MANAGEMENT

Project Project
A B

Objective
(s)

Project Project
C D
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PORTFOLIO MANAGEMENT
A Portfolio represents a collection of active
programs, projects and other that are grouped
together to facilitate effective management of that
work to meet strategic business objectives.
Portfolio management, therefore, is the
centralized management of one or more portfolio
in order to achieve specific strategic business
objectives.
Focusses on ensuring that projects and programs
are reviewed to prioritize resource allocation, and
that the management of the portfolio is consistent
with and aligned to organizational strategies. 22
PORTFOLIO MANAGEMENT

Program A

Project
E

Project
F

Operations

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 Project Lifecycle and
Stakeholders

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PROJECT LIFE CYCLE

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PROJECT PHASE

DELIVERABLE:

Is a measurable, verifiable work product.

PHASE :

Is a collection of logically related project activities that

culminates in the completion of one or more deliverables.

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PROJECT LIFECYCLE
A collection of generally sequential and sometimes
overlapping project phases
Phases name and number are determined by:
 Management
 Nature of the project
 Control requirements
 Area of application
 Can be determined or shaped by the unique aspects of
the organization, industry or technology
 Can be documented by a methodology
 Provides the basic framework for managing the project

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COST & STAFFING LEVEL

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THE PROJECT THROUGH ITS LIFECYCLE

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PROJECT PHASES
Divisions within a project where extra control
is needed to effectively manage the completion
of a major deliverable.
A deliverable is a measurable, verifiable work
product.
Each phase ends with a deliverable
Number and structure of phases is determined
by the organization’s control requirements
Some organizations have established policies
that standardize all projects.
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PROJECT LIFECYCLE- SEQUENTIAL
PHASES

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PROJECT LIFECYCLE- OVERLAPPING
PHASES

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STAKEHOLDERS
People or organizations who are actively involved in
the project, or whose interests maybe positively or
negatively affected by the performance or completion
of the project
Project Stakeholders:
 Sponsors
 Customers/ Users
 Vendors/ Suppliers
 Project Manager
 Project Management Team
 Project Team
 PMO 33
STAKEHOLDERS

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5 STEPS TO MANAGING STAKEHOLDERS
Identify ALL of them
Determine ALL their requirements
Determine their expectations
Communicate with them
Manage their influence

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ORGANIZATIONAL INFLUENCE
Projects don’t operate in vacuum, they are
influenced by organizational:
 Culture
 Style
 Structure
 Organization’s degree of project management
maturity and systems can influence the project

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 Project Management Skills
and Framework

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PROJECT MANAGEMENT PROCESSES
Every project management process produces one or
more outputs from one or more inputs by using
appropriate project management tools and techniques. :

Tools &
Inputs Outputs
Techniques
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PROCESS KNOWLEDGE
GROUPS AREAS

Grouping of project
Identified area described in
management processes to
terms of its component
achieve specific project
processes, practices, inputs,
objectives. Five Project
outputs, tools, and
Management Process
techniques:
Groups:

1.Initiating Process Group

1. Project Integration Management
2. Planning Process Group 2. Project Scope Management
3. Project Schedule Management
3. Executing Process Group 4. Project Cost Management
5. Project Quality Management
4. Monitor & Controlling Process Group 6. Project Resource Management
7. Project Communications Management
5. Closing Process Group 8. Project Risk Management
9. Project Procurement Management
10. Project Stakeholder Management 39
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 Project Management Process Groups
Knowledge Areas
Initiating Planning Executing Monitoring and Controlling Closing
4.3 Direct and Manage 4.5 Monitor and Control Project
Project Work Work 4.7 Close
[4] Project Integration 4.1 Develop Project
4.2 Develop Project Management Plan 4.4 Manage Project 4.6 Perform Integrated Change Project or 7
Management Charter
Knowledge Control Phase

5.1 Plan Scope Management 5.5 Validate Scope

5.2 Collect Requirements 5.6 Control Scope
[5] Project Scope
5.3 Define Scope 6
Management
5.4 Create WBS

6.1 Plan Schedule Management

6.2 Define Activities
[6]
6.3 Sequence Activities
Project Schedule Mana 6.6 Control Schedule 6
gement 6.4 Estimate Activity Durations
6.5 Develop Schedule

7.1 Plan Cost Management

[7] Project Cost 7.2 Estimate Costs
7.4 Control Costs 4
Management 7.3 Determine Budget

[8] Project Quality

8.1 Plan Quality Management 8.2 Manage Quality 8.3 Control Quality 3
Management
9.1 Plan Resource Management 9.3 Acquired Resources
[9]
Project Resource Mana 9.2 Estimate Activity Resources 9.4 Develop Team
9.6 Control Resources 6
gement 9.5 Manage Team

[10] Project
10.1 Plan Communications 10.2 Manage
Communications 10.3 Monitor Communications 3
Management Communications
Management
11.1 Plan Risk Management
11.2 Identify Risks
11.3 Perform Qualitative Risk Analysis
[11] Project Risk 11.6 Implement Risk
11.7 Monitor Risks 7
Management 11.4 Perform Quantitative Risk Responses
Analysis
11.5 Plan Risk Responses

[12] Project
Procurement 12.1 Plan Procurement Management
12.2 Conduct
Procurements
12.3 Control Procurements 41 3
Management
[13] Project 13.3 Manage
13.1 Identify 13.4 Monitor Stakeholder
Stakeholder 13.2 Plan Stakeholder Engagement Stakeholder 4
Stakeholders Engagement
Management Engagement
2 24 10 12 1 49
PROJECT MANAGEMENT DATA AND
INFORMATION
• The raw observations and
WORK measurements identified during
PERFORMANCE activities performed to carryout the
project work.
DATA

• The performance data collected from

WORK various controlling processes, analyzed
PERFORMANCE in context and integrated based on
relationships across areas.
INFORMATION

• The physical or electronic representation

WORK of work performance information
PERFORMANCE compiled in project documents , which is 42
intended to generate decisions or raise
REPORTS issues, actions ., or awareness.
TAILORING

The appropriate project management processes,

inputs, tools, techniques, outputs, and life cycle
phases should be selected to manage a project. This
selection activity is known as tailoring project
management to the project.

Tailoring is necessary because each project is unique;

not every process, tool, technique, input, or output
identified in the PMBOK® Guide is required on every
project.
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PROJECT MANAGEMENT OFFICE-(PMOS)

An organizational unit to centralize and

coordinate the management of projects under its
domain.

The PMO can be understood as:

“ The organizational entity, staffed with skilled
professional personnel, that provides services in core and
supporting areas during the planning and execution of a
project/program”.
Can have a wide range of authorities and responsibilities.
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PROJECT MANAGEMENT OFFICE-(PMOS)

Managing shared resources across all projects

administered by the PMO
Identifying and developing project management
methodology, best practices, and standards
Coaching, mentoring, training, and oversight
Monitoring compliance with project management
standards, policies, procedures, and templates by
means of project audits
Developing and managing project policies, procedures,
templates, and other shared documentation
Coordinating communication across projects 45
POM TYPES

There are Three types of POMs that may exist in

an organization:

1- Supportive PMO

2- Controlling PMO

3- Directive PMO

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1- SUPPORTIVE PMO

The most common type of PMO

Its purpose is to empower project managers and teams

to deliver their projects more successfully.

It doesn’t control or direct projects, instead it focuses

on supporting projects through training, mentoring,
administration and reporting.
Provides a consultative role to projects by supplying
templates, best practices , training , access to information
and lessons learned from other projects.
The degree of control is low.
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2- CONTROLLING PMO
Offers controlling services ( such as project reviews,
audits, assessments and governance ), in addition to
the supporting services to get project back on track

Can influence project delivery

It can also enforce standards , implement processes

and manage overall project risk
Provides support and require compliance through using
specific templates , forms and tools , or conformance to
governance.
The degree of control is moderate.
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3- DIRECTIVE PMO
This is the least common, but sometimes most effective
type of POM

It offers directive services, where it does not just

support and control projects, but also responsible for
actually running them

Each of the project managers report to the PMO

Director as their supervisor. This helps to “ corral “ all
of the project work within an organization, to one
department
Takes control of the projects by directly managing the
projects.
The degree of control is high
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PROJECT MANAGEMENT OFFICES (PMOS)

The PMO may:

Manage the interdependencies between projects
Help provide resources
Terminate projects
Monitor compliance with organizational processes
Help gather lessons learned
Be more heavily involved during the project
initiation
Be part of the change control board
Be a stakeholder
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PMOS-REQUIREMENTS FOR SUCCESS

1- Role should be clearly defined

2-Only one role, don’t try to do it all
3-Commitment and support of top management
4-All should be PMPs
5-Improve project performance through the use of
proper processes and techniques

The repercussions of failure !!

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PMOS-REQUIREMENTS FOR SUCCESS

Knowledge

Personal Performance 52
KNOWLEDGE

What the Project Manager knows about Project

Management.

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PERFORMANCE

What the Project Manager is able to do or

accomplish while applying his/her project
management knowledge

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PERSONAL

How the Project Manager behaves when

performing the project or related work.
Encompasses:
Attitude
Core personality characteristics
leadership

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ENTERPRICE ENVIRONMENTAL FACTORS &
ORGANIZATIONAL PROCESS ASSETS

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 ENTERPRICE
ORGANIZATIONAL
ENVIRONMENTAL
PROCESS ASSETS OPA
FACTORS EEF

PLANS, PROCESSES, POLICIES,

CONDITIONS, NOT UNDER THE PROCEDURES & KNOWLEDGE
CONTROL OF THE PROJECT TEAM BASES SPECIFIC TO & USED BY
INFLUENCE THE PROJECT THE PERFORMING
ORGANIZATION
1. ORGANIZATIONAL STRUCTURE
(FUNCTIONAL …ETC)
2. ORGANIZATIONAL CULTURE
3. GOVERNMENTAL/INDUSTRY 1. ORGANIZATIONAL PROCESSES,
STANDARDS STANDARDS & PROCEDURES
4. INFRASTRUCTURE
5. EXISTING HUMAN RESOURCES 2. TEMPLATES
6. PERSONNEL ADMINISTRATION
7. ORGANIZATION’S WORK 3. ORGANIZATIONAL KNOWLEDGE
AUTHORIZATION SYSTEM BASE
8. MARKETPLACE CONDITIONS
9. STAKEHOLDERS’ RISK TOLERANCE 4. LESSONS LEARNED
10. PROJECT MANAGEMENT
INFORMATION SYSTEM 57
ENTERPRISE ENVIRONMENTAL FACTORS
❑ The Internal and External environmental factors
surrounding and/or influencing the project
negatively or positively.
❑ Are Inputs to most of the Project Management
Processes.
❑ Can be categorized into Internal and External

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ENTERPRISE ENVIRONMENTAL FACTORS
Culture & structure
Regulations & Standards
Infrastructure
Existing human resources
Personnel administration
Commercial databases
Information systems
Stakeholders risk tolerance

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ORGANIZATIONAL PROCESS ASSETS
Include all process related assets in addition to
the organization’s knowledge bases
Input to most of the project management
processes
Outputs of many processes may include
updating or adding to these process assets
Can be categorized into:
 Processes and procedures
 Corporate knowledge base

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ORGANIZATIONAL STRUCTURE TYPES

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FACTORS IN ORGANIZATION STRUCTURE
SELECTION
Degree of alignment with organizational objectives
Specialization capabilities
Span of control, efficiency, and effectiveness
Clear path for escalation of decisions
Clear line and scope of authority
Delegation capabilities
Accountability assignment
Responsibility assignment
Adaptability of design
Simplicity of design
Efficiency of performance
Cost considerations
Physical locations (e.g., co-located, regional, and virtual)
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Clear communication (e.g., policies, status of work and
organization’s vision).
FUNCTIONAL ORGANIZATION
Also known as “Silo” organization
Functional managers control resources
Communication happens “vertically”
Good for operation-oriented organizations, such
as banks, government

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FUNCTIONAL ORGANIZATION

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ADVANTAGES & DISADVANTAGES

Advantages Disadvantages
• Clear Authority • Poor
• Career Coordination
Development • No Project
• Controlled Accountability
• High Politics
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PROJECTIZED ORGANIZATION
Also known as “No home”
Systematic approach to project management
Well defined project management methodology
& lifecycle
Does not support learning & career
development

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PROJECTIZED ORGANIZATION

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ADVANTAGES & DISADVANTAGES

Advantages Disadvantages
• Effective • High Risk
Communication • Poor Resource
• Project Driven Utilization
Coordination • “No Home”
• More focused 68
MATRIX ORGANIZATION
Also known as “Two Bosses”
Has three types:
 Weak matrix
 Balanced matrix
 Strong matrix

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WEAK MATRIX

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BALANCED MATRIX

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STRONG MATRIX

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ADVANTAGES & DISADVANTAGES

Advantages Disadvantages
• Project Manager • Two Bosses
Assigned. • Competition of
• Communication and Priorities
Coordination • Hard to Control
• Visible Project • Tough Resource
Objectives Allocation 73
ORGANIZATIONAL STRUCTURES ON PROJECTS

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THE ROLE OF THE PROJECT MANAGER

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THE ROLE OF THE PROJECT MANAGER
OVERVIEW

The project manager plays a critical role in the

leadership of a project team in order to achieve
the project’s objectives.

This role is clearly visible throughout the project.

Many project managers become involved in a

project from its initiation through closing.

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THE ROLE OF THE PROJECT MANAGER

The project manager plays a critical role in the leadership

of a project team in order to achieve the project’s
objectives.
This role is clearly visible throughout the project.
Many project managers become involved in a project from
its initiation through closing
Simple analogy may help in understanding the roles of a
project manager for a large project by comparing them to the
roles of a conductor for a large orchestra
Leading the team
Having knowledge, understanding, and experience
Having management knowledge as well as technical
knowledge, 77
DEFINITION OF THE PROJECT MANAGER

The project manager is the person assigned by the

performing organization to lead the team that is
responsible for achieving the project objectives.

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 Project

The
Project
Organization Manager’s Discipline
Share Of
Influence

Industry

Project managers fulfill numerous roles within their sphere

of influence. These roles reflect the project manager’s
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capabilities and the added value of the project management
profession.
COMPETENCES OF THE PROJECT MANAGER

TECHNICAL LEADERSHIP STRATEGIC

PROJECT OF THE TEAM AND BUSINESS
MANAGEMENT MANAGEMENT
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THE PMI TALENT TRIANGLE

Technical
P.M.

PMI
Talent
Triangle

Strategic &
Business Leadership
Management
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PERFORMING INTEGRATION

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THE INTEGRATOR

The role of the project manager when performing

integration on the project

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THE INTEGRATOR
Working with the
project sponsor to
understand the
strategic
objectives

Ensure the performing

alignment of the integration Discipline
project objectives on the
project

Industry
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PROJECT MANAGER INTERPERSONAL SKILLS

Leadership
Team Building
Motivation
Communication
Influencing
Decision Making
Political& Cultural awareness
Negotiation

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WHY PROJECTS FAIL?
A subject for discussion

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HOW DO WE DEFINE SUCCESS?
On time
Within budget
Scope integrity
Achieving quality

Scope
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CHAOS REPORT
31.1% of projects will be cancelled before they
ever get completed
52.7% of projects will cost 189% of their original
estimates
Only 16.2% of projects were completed
successfully

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PROCESSES AND PROCEDURES
Standard Processes.
Templates.
Communication Requirements.
Financial Controls Procedures.
Issue and Defect Management Procedures.
Change Control Procedure.
Risk Control Procedures.
Approval Procedures.

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CORPORATE KNOWLEDGE
Process Measurement Database.
Project Files.
Historical Information and Lessons Learned.
Issue and Defect Management Database.
Configuration Management Knowledge Base.
Financial Database.

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PROJECT MANAGEMENT KNOWLEDGE AREAS
1. Project Integration Management
2. Project Stakeholders Management
3. Project Scope Management
4. Project Time Management
5. Project Cost Management
6. Project Quality Management
7. Project Resources Management
8. Project Communication Management
9. Project Risk Management
10. Project Procurement Management 91
PROJECT INTEGRATION MANAGEMENT

Includes the processes needed to identify,

define, combine, unify & coordinate the various
processes and project management activities
within the Project Management Process
Groups.

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PROJECT STAKEHOLDERS MANAGEMENT

The processes required to ensure that the

project includes all stakeholders who are
required, to complete the project successfully

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PROJECT SCOPE MANAGEMENT

The processes required to ensure that the

project includes all the work required, and only
the work required, to complete the project
successfully.

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PROJECT TIME MANAGEMENT

Includes the processes required to manage

timely completion of the project.

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PROJECT COST MANAGEMENT

The processes involved in estimating,

budgeting & controlling costs so that the
project can be completed within the approved
budget.

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PROJECT QUALITY MANAGEMENT

Processes and activities of the performing

organization that determine quality, policies,
objectives and responsibilities so that the
project will satisfy the needs for which it was
undertaken.

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PROJECT RESOURCES MANAGEMENT

Processes that organize, manage and lead the

resources in the project.

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PROJECT COMMUNICATION MANAGEMENT

Processes required to ensure timely and

appropriate generation, collection, distribution,
storage, retrieval, and ultimate disposition of
project information.

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PROJECT RISK MANAGEMENT

Processes of conducting risk management

planning, identification, analysis, response
planning, and monitoring and control of the
project.

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PROJECT PROCUREMENT MANAGEMENT

Processes necessary to purchase or acquire

products, services or results needed from
outside the project team.

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 THANK YOU
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