LECTURE – 1

INTRODUCTION
TO PROJECT MANAGEMENT
&
THE PROJECT MANAGEMENT CONTEXT
 FACTORS

• Lack of User Input • Incomplete Requirements

• Incomplete Requirements & • Lack of User Involvement
Specifications • Lack of Resources
• Changing Requirements & • Unrealistic Expectations
Specifications • Lack of Executive Support
• Lack of Executive Support • Changing Requirements &
• Technology Incompetence Specifications
• Lack of Resources • Lack of Planning
• Unrealistic Expectations • Didn't Need It Any Longer
• Unclear Objectives • Lack of IT Management
• Unrealistic Time Frames • Technology Illiteracy
• New Technology
THE PROJECTS SUCCESS FACTORS

• User Involvement
• Executive Management
Support
• Clear Statement of
Requirements
• Proper Planning
• Realistic Expectations
• Smaller Project Milestones
• Competent Staff
• Ownership
• Clear Vision & Objectives
• Hard-Working, Focused Staff
 A RECIPE FOR SUCCESS

Projects fail not for lack of money or

technology; but for lack of skilled & formal
project management

Technology is neither the problem or the

solution….. The problem and solution lay in
people and processes
 PROJECT

• A project is a temporary
endeavor, undertaken in an
organized manner to produce a
unique product or service or result.
 PROJECT CHARACTERISTICS
• Temporary means that every project has a
definite beginning and a definite end
(Schedule)

• The end is reached when the Project’s:

• Objectives have been achieved, or

• It becomes clear that the project objectives

will not be or cannot be achieved,

– Or the need for the project no longer exists

and the project is terminated
 PROJECT CHARACTERISTICS

• Endeavor
• Activity or effort
– Project activity is:
• Specific
• Must be done within a time frame
• It has dependence / interdependence
• Must utilize specific resources
• Must be done by designated people
• Must produce desired results
– However, a Normal activity – can be done at any
time by any one regardless of quantum of
resources and results thereof
 PROJECT CHARACTERISTICS

• Organized Manner
• Project activity is done through an
organization created solely for the
designated project

• The project has a team consisting of HR each

of whom has certain skill, knowledge and
other attributes

• The Project organization is headed by

Project Manager (PM)
 PROJECT CHARACTERISTICS

• UNIQUE PRODUCTS & SERVICES

• Projects can create:
• A product or artifact that is produced, is
quantifiable, and can be either an end item in itself
or a component item

• A capability to perform a service, such as business

functions supporting production or distribution

• A result, such as outcomes or documents.

• Uniqueness; never happened before & will never happen again
under same conditions.
PROGRAMME
?
 PROGRAMME
• Group of related projects managed in a coordinated
way to obtain benefits and control not available from
managing them individually
– May include elements of related work outside the scope of
the discrete projects in the program

– Project may or may not be the part of program; program

always have projects

– Projects related through the common outcome or collective

capability

– New communication satellite system

• Design of satellite and ground stations
• Construction of each and integration of the system
• Launch of the satellite
– Space programme
PORTFOLIO
?
 PORTFOLIO
• Collection of projects or programs, grouped
together to facilitate effective management
of work to meet strategic business
objectives

– Not necessarily interdependent or directly related

– Infrastructure firm
• Strategic objectives of “maximizing the return on the
investment”
• Mix of projects Oil and gas, Power, Water, Road, Rail,
Airport
• All the power projects may be grouped together as Power
programme
• All the water project as Water programme
OPERATIONS
?
 OPERATIONS

• Organizational function, performing the ongoing

execution of activities that produce the same
product or provide a repetitive service

• Organizations sometimes change their operations,

products, or systems by creating strategic business
initiatives

• Permanent endeavors that produce repetitive outputs

with resources assigned to do basically the same set
of tasks according to the standards institutionalized
in product life cycle; Production - Manufacturing
 OPERATIONS & PROJECTS
THE SIMILARITIES

• Operations and projects share many characteristics:

– Both requires to be performed by people.
– Both requires to be provided resources
– Both are constrained by limited resources.
– Both requires to be planned, executed, and controlled.
– Both are aligned with the Org strategic Objectives
– Deliverables and knowledge is transferred between two

• Occurs through transfer of project resource to operations

towards the end of the project
Or
• Through a transfer of operational resource to project at the
start of the project
 OPERATIONS & PROJECTS
THE DIFFERENCES

• PROJECTS • OPERATIONS
Operations require Business Process
Management or Operations
Projects require project management Management
Temporary undertaking Permanent endeavors
Temporary assignments Ongoing nature of operations
Produce unique outputs Produce repetitive outputs
Temporary resourcing Permanent resource assignments
Executed according to project Executed as per SOPs institutionalized in
management plan developed for project product life cycle
life cycle
Attain objective and then terminate Sustain the business
Concludes when its specific objectives Adopt a new set of objectives and the
have been attained work continues
 PROJECT ATTRIBUTES
A Project…

 Has specific objectives

 Has a start and end date
 Has a budget
 Has an ‘owner’/’sponsor’
 Produces specific deliverables
 Can vary vastly in size, complexity and duration
 May be a phase within a larger project or a phase
within a program
LIFE IS A PROJECT
SECTION - 2
STAKEHOLDERS
 PROJECT ENVIRONMENT

Government The Organization Suppliers

Organization Goals
Top Management The Boss

PROJECT MANAGER
PROJECT TEAM
COLLEAGUES
Managers Controlling
Internal Resources

External Users Internal Users Sub Contractors

 MAJOR ROLES ON PROJECT
Functional Manager

Functional
Sponsor
Team – The
Members Manager
internal
– staff –who
Managers
Organizational
use their
Project Manager –for
responsible individuals
activitieswith
and the
Stakeholders
owner
skillsof
to the – Parties
project.
contribute to involved
Responsible
the in or
for
project’s Sponsor
Project Manager authority
resources and responsibility
in a specialized for
department
being affected
establishing byreport
the project
delivering the the
deliverables. project’s
Can
documented priority
either
project
within their
directly or function.
activities.
Organization.
orrequirements
indirectly Has
to the overall
project
responsibility for its success.
Manager.

project
Participants
Team Members Stakeholders
 PROJECT MANAGER

Individual responsible for managing

project within constraints of

Scope, Quality, Time & Cost

To deliver specified requirement & meet or

exceed Customer Satisfaction.
 PROJECT MANAGER

• The role of project manager is distinct from a

functional manager or operations manager

– A Project Manager is a person assigned by the performing

organization to achieve the project objectives

– A Functional Manager is focused on providing management

oversight for an administrative area

– An Operations manager is responsible for a facet of the core

business

• Project Manager may report to a Functional ,

portfolio or program manager
ESSENTIALS - PROJECT MANAGER

 Effective project management requires that

the project manager possesses the following
characteristics

 Knowledge - What project manager knows about

project management?

 Performance - What project manager is able to do

or accomplish while applying knowledge?

 Personal - How project manager behaves when

performing project?
 PROJECT MANAGER
Prior start of Project On Project
completion
PROJECT MANAGER
 RELATIONSHIP BETWEEN
STAKEHOLDERS & PROJECT
 PROJECT STAKEHOLDERS
• Customer/end users
– who uses proj products, service or result
– Doctor prescribes, patient uses, insurer pay for it.
• Sponsor- who finance
• Project Mgr Responsible for project
• Performing Organization- whose employees are
involved
• Project Mgmt Team - Performing task of project
• Project team members -directly involved
• PMO- exists in performing Org.
• Functional managers; HR, Finance, Accounting etc
• In addition:
• Sellers, Contractor, MEDIA Outlets, Govt Lobbyist,
Team Member families, society
 PROJECT STAKEHOLDERS

• An assembly-line worker whose future

employment depends on the outcome of
the new product design project is a
stakeholder

• POSITIVE & NEGATIVE STAKE HOLDERS

– S/H Identification a difficult Process

– Proj. Pay the Price if S/H not Identified Properly

 WHAT IS
PROJECT MANAGEMENT
?????
 PROJECT MANAGEMENT

• Application of knowledge, skills, tools &

techniques to project activities in order
to meet or exceed stakeholder needs &
expectations from a project
(PMI)
 PROJECT MANAGEMENT

An Organized venture for Managing Projects.

Involves scientific application of
Modern tools & techniques in
Planning, Financing, Implementing, Monitoring,
Controlling & coordinating unique activities or tasks
to produce desirable outputs in consonance with
pre-determined objectives,
within the constraints of
“Time, Cost, Quality”.
 PROJECT MANAGEMENT

“Project Management is the act of directing

and
coordinating human and material resources
throughout the life of a project to achieve
predetermined objectives of
 Scope
 Quality
Quality
 Effort
 Risk Effort Time

Project
 Time

Scope Risk
 PROJECT MANAGEMENT

Is the acquired knowledge & skills

applied using a formal Set of

“Tools & Techniques”

to Initiate, Plan, Execute, Monitor & Control and

Close Projects.
 PROJECT MANAGEMENT
OBJECTIVES

Coordinate interrelated processes of the proj.

• Ensure proj includes all the work required, to complete the
project successfully.
• Ensure that Proj is completed on “Time & Within Budget”.
• Ensure – Proj will satisfy needs for which it was undertaken.
• Ensure most effective use of HR involved in Proj.
• Promote effective communication between project’s team
members & key stakeholders.
• Ensure -Proj risks are identified, analyzed, responded.
 PROJECT MANAGEMENT OFFICE

• Organizational body or entity assigned various

responsibilities related to the centralized and
coordinated management of those projects under its
domain
• Provide Project Management Support functions to
actually being responsible for the direct management
of the project
• Projects supported or administered by the PMO may
not be related other than by being managed together
• Specific form, function and structure of a PMO is
dependent upon the supported organization’s needs
 PROJECT MANAGEMENT OFFICE

• Primary function of a PMO is to support

project managers in a variety of ways which
may include , but are not limited to:

– 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 via project audits.
– Developing and managing projects policies, procedures,
templates and other shared documentations.
– Coordinating communication across projects
 TRIPPLE CONSTRAINT
Project managers often talk of a “Triple Constraint”—project scope, time and
cost—in managing competing project requirements

• Project quality is affected by balancing “Triple Constraint”—

project scope, time and cost

• High quality projects deliver the required product, service or

results within scope, on schedule, and within budget.
 MANAGING CONSTRAINTS
• Build the dashboard for controlling the project.

• Without this dashboard, you have no way of knowing

where the project is currently headed, how far off
course it is, or what action to take to get it back on
course.

• If you neglect this function, you and all project

stakeholders are subject to unhappy surprises.
Scope
(Performance)

• Uncontrolled projects rarely reach theirAgreement

goal.
Client

Time Cost
(Schedule) (Budget)

Manage the Triple Constraint

 PROJECT

• It is a one time activity.

• It has a Life Cycle
– It has a beginning.
– It has an end.
• It is interdependent.
• It achieves goals.
• It is unique in nature.
• It is conducted by a group of people.
• It uses resources.
• It is non- routine event.
 Project life cycle

• A project life cycle is a collection of

generally sequential and sometimes
overlapping project phases whose name
and number are determined by the
management and control needs of the
– organization or organizations involved in the
project
– the nature of project itself
– its area of application.
PROJECT LIFECYCLE
Project
Definition

Post
Project Implementation Project
Closure Review Definition Project
Planning
Project
Monitoring Life cycle
& Control Detailed
Planning

Execution

Project
Control Project
Execution
 Characteristics of the PLC
• Cost and staffing levels are low at the start, peak as the work is
carried out and drop rapidly as the project draws to a close. The
dashed line illustrates this typical pattern.
 Characteristics of the PLC
• Stake holder influence, risk, and uncertainty; greatest at start.
• Ability to influence the final characteristics of the project’s
product, without significantly impacting cost, is highest at the
start of the project and decreases as the project progresses
toward completion.
 Product vs Project LC

• Product Life Cycle

– Generally consist of sequential, non-overlaping
product phases determined by the
manufacturing and control need of the
organization
• Last phase is generally the product retirement

• Project life cycle occur in one or more

phases of a product life cycle
– All projects have a purpose or objective;
– where it is a service or result, there may be a
life cycle for the service or result, not a
product life cycle
 Product vs Project LC
• When output of the project is related to the
product
– Existing product may benefit from project to add new
functions and features
– Project may be created to develop a new model

• Many facets of the product life cycle lend

themselves to being run as projects
– Performing feasibility study
– Conducting market research
– Running advertising campaign
– Installing a product
– Holding focus groups
– Conducting trial
• Project life cycle would differ from the product
life cycle
 Product vs Project LC

• One product may have many projects

associated with it

– Separate projects may be related to the

development of new automobile

– Each project may be distinct, but still

contributes to key deliverable necessary
to bring the automobile to market
Product vs Project LC
Product vs Project LC
 Project Phases
• Project phases are divisions within a project
where extra control is needed to effectively
manage the completion of major deliverable.

• The phase structure allows the project to be

segmented into logical subsets for ease of
management, planning and control.

• The number of phases, the need for phases

and the degree of control applies depend on
the size, complexity and potential impact of
the project
 Project Phases
• Project governance

– It provides a comprehensive, consistent

method of controlling the project and
ensuring its success. The project
governance approach WOULD be described
in the project management plan.

– The phase structure provides a formal

basis for control.

• Each phase is formally initiated to specify what

is allowed and expected for that phase .
 Project Phases
• Project governance

– The beginning of a phase is also a time to

revalidate earlier assumptions, review risks and
define in more detail the processes necessary to
complete the phase deliverable(s).

– A project phase is generally concluded and

formally closed with a review of the deliverables
to determine completeness and acceptance.

• A phase end review can achieve the combined

goal of obtaining authorization to close the
current phase and start the subsequent one.

• Formal phase completion doesnot necessarily

include authorizing the subsequent phase
 Project Phases
• Phases-to-phase relationships

– A sequential relationship, where a phase can start

once the previous phase is complete.

– An overlapping relationship, where the phase

starts prior to completion of the previous one.

– An iterative relationship, where only one phase is

planned at an given time
Project Phases (Single phase project)
 Project Phases (Three phase project)

• Sequential Relationship
– Reduces uncertainty but may eliminate options for
reducing the schedule
 Project Phases (Overlapping phases)

• Overlapping Relationship
– Schedule compression technique called fast tracking
– Increased risk
Project Phases (Iterative Relationship)

• One phase planned at any given time

• Planning of the next carried out as work

processes on the current phase and
deliverables

• Useful in largely undefined, uncertain or

rapidly changing environments i.e
research
 ENTERPRISE ENVIRONMENTAL
FACTORS
• Refer to environmental factors that surround or
influence a project’s success
• May come from any or all enterprises involved in
project
• May enhance or constrain project management
options
• May have a +ve or –ve influence on the outcome
– Organizational culture, structure and processes
– Government or industry standards (e.g regulatory agency
regulations, codes of conduct, product standards, quality
standards, and workmanship standards)
– Infrastructure (e.g existing facilities and capital
equipment)
 ENTERPRISE ENVIRONMENTAL
FACTORS
– Existing human resources (skills, disciplines,
knowledge etc

– Company work authorization systems

– Marketplace conditions

– Stakeholder risk tolerances

– Political climate
– Organization’s established communications channels
– Commercial databases (e.g standardized cost
estimating data, industry risk study information, and
risk databases)
 Organizational Influences on PM

• Organizational Cultures and Styles

– The organizational culture is an enterprise
environmental factor. Therefore, a project
manager should understand the different
organizational styles and cultures that may
affect a project.

– Typically known as “Cultural norms”

• Includes knowledge regarding how to approach
getting the work done, what means are
considered acceptable for getting the work done
and who is influential in facilitating the work
getting done
 Organizational Structure

• Organizational structure is an enterprise

environmental factor which can affect the
availability of resources and influence how
projects are conducted.

• Organizational structures range from

Functional to Projectized, with a variety of
matrix structures between them.
Organizational Structure (Functional)
• Each employee has one clear superior.
• Staff members are grouped by specialty, i.e production, marketing
etc at top level.
• Each department in a functional organization will do its project work
independent of other department.
Organizational Structure (Projectized)
• Team members are often co-located
• Most of the organization’s resources are involved in
project work
• Project managers have a great deal of independence and
authority.
Organizational Structure (Weak Matrix)
• Blend of functional and projectized characteristics.
• Weak matrices maintain many of the characteristics of a
functional organization, and the project manager role is more of
a coordinator or expediter than that of a true project manager.
Organizational Structure (Balanced Matrix)
• Balanced matrix organization recognizes the need for
a project manager, it does not provide the project
manager with the full authority over the project and
project funding.
Organizational Structure(strong matrix)
• Strong matrices have many of the characteristics of
the projectized organization, and can have full time
project managers with considerable authority and full
time project administrative staff.
Organizational Structure (Composite)
Organizational Structure
 Organizational Process Assets

• Any or all process related assets, from any or all

of the organizations involved in the project that
can be used to influence the project’s success.

• These process assets include formal and informal

plans, policies, procedures and guidelines.

• The process also include the organization's

knowledge bases such as lessons learned and
historical information.

• Organizational process assets may include

completed schedules, risk data, and earned value
data.
 Processes and Procedures
• Processes and Procedures
– The Organization’s processes and procedures for
conducting work include but are not limited to:
• Organizational standard processes such as standards,
policies (e.g., safety and health policy, ethics policy, and
projects managements policy)
• Standardized guidelines, work instructions, proposal
evaluation criteria, and performance measurement criteria;
• Templates (e.g, risk, work breakdown structure, project
schedule network diagram, and contract templates);
• Guidelines and criteria for tailoring the organization’s set of
standard processes to satisfy the specific needs of the
project;
• Organization communication requirements (e.g., specific
communication technology available, allowed communication
media).
 Processes and Procedures
– Project closure guidelines or requirements (e.g., final project
audits, project evaluations, and acceptance criteria)
– Financial controls procedures (e.g required expenditure and
disbursement reviews, accounting codes)
– Issue and defect management procedure
– Change control procedures, including the steps by which official
company standards, policies, plans, and procedure – or any
project documents – will be modified , and how any changes will
be approved and validated;
– Risk control procedures, including risk categories, probability
definition and impact, and probability and impact matrix
– Procedure for prioritizing, approving, and issuing work
authorizations.
Why do Organization use Project Management?

To sum it up…..

1. Improve results Value………

2. Decrease costs

3. Improve customer service

4. Time
THANK YOU