Lect1.Intro to PM Part.A

8/8/2019 Lect1.Intro to PM Part.A

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Computer Applications in ProjectManagement

Lect#1

Overview and Concepts of ProjectManagement


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Objective of this Course

This course is especially designed for technical managers of all

levels involved in Project Management dealing in todays

engineering and construction market which is highly

competitive, driving profit margins down as risks increase. It

only takes one failed project to wipe out an entire years profit.

As a project-based organization that depends upon theaccuracy of decisions made every day, one needs best-in-class

project management solutions that build a competitive

advantage for the field and office. Primavera offers the most-

specified project management solutions in the industry to help

you profitably manage the business of engineering and

construction. The course will provide the fundamental training

on Primavera and MS Project software to handle different

complex project management activities.


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Mid Term Exam 20 Percent

Final Exam 30 Percent

Assignments/Quizzes 25 Percent (Lect-Summariesfor DLs)

Research Paper/Project 25 Percent

Grade Distribution


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All classes are Smoke and Mobile Free. Timely

submission of Homework /Assignments is mandatory

and if not turned in when due, the student will be

graded negatively. Individual homework meansindividual effort.

Homework may be submitted via E-Mail and

Fax in case individual is out of town/country.

Important: There will be surprise quizzes.

Misc. Instructions


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OUT LINE FOR TODAY

What is a project?

What is Project Management?

The Context for Project Management The Project Management Process

Knowledge areas for project

management


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What is a Project?

A project is a sequence oftemporary, unique,complex and connected activities having one

goal or purpose and that must be completed

by a specific time, within budget, and

according to specifications.

A project is a group of activities that are to beundertaken with limited resources to yield

specific objectives in a specific time in a

specific locality. A project has a specific

starting point, and a specific ending point.


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Contd

An investment on which resources are used

to create assets that will produce benefitsover an extended period of time.

PMI has defined the project as single effortundertaken in order to create unique projector service.

ISO 10006 Standard defines the project as,unique processes, consisting of a set of

coordinated and controlled activities withstart and finish dates, undertaken to achievean objective conforming to specificrequirements, including the constraints oftime, cost and resources.


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Project Inputs Project Output(s)

Time & Cost Limits

Scope Constraint


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What is a Project (Contd) Unique Activities

The project has never happened before and willnever happen again under the same conditions.

Complex Activities

Not simple, repetitive acts, such as mowing thelawn, running the weekly payroll, washing the car,

or loading the delivery truck

Connected Activities

There is some order or sequence

Output from one activity is input to another.

Temporary Activities

Start and Finish Dates


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What is a Project (Contd)

One Goal

Projects must have a single goal.

Specified Time

Projects have a specified completion date

Within Budget

Projects also have resource limits (people, money,

machines)

According to Specification

The customer or recipient expectation

Self-imposed


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What is a Program & Program

Management?

A program is different from a project. Programs are larger in scope

and comprise multiple inter-related projects.

A program is a group of related projects managed in a coordinatedway to obtain benefits and control not available from managing

them individually.

In contrast with project management, program management is the

centralized, coordinated management of a group of projects to achieve

the program's strategic objectives and benefits.


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Management?

There are two different views of how programs differ

from projects.

On one view, projects deliver outputs; programs create outcomes.

On this view, a project might deliver a new factory, hospital orIT

system. By combining these projects with other deliverables and

changes, their programs might deliver increased income from a

new product, shorter waiting lists at the hospital or reduced

operating costs due to improved technology.

The other view is that a program is nothing more than either a large

project or a set of projects. On this second view, the point of having

a program is to reduce coordination costs and risks.


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Management?

Successful projects deliver on time, to budget and to specification,

whereas successful programs deliver long term improvements to

an organization.

Many electronics firms have program managers who areresponsible for both individual product releases (projects) and the

coordination of multiple releases over a period of time (an ongoing

operation).

For example,

Publishing a newspaper or magazine is also a program with each

individual issue managed as a project.


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What is a Portfolio & Portfolio Management?

A portfolio is a collection of programs and/or projects and/or other

work that are grouped together to facilitate effective management of

that work to meet strategic business objectives.

The projects and programs in the portfolio may not necessarily be

interdependent or directly related.

Organizations manage their portfolios based on specific goals. One

goal of portfolio management is to maximize the value of the portfolio

by careful examination of candidate projects and programs for

inclusion in the portfolio and the timely exclusion of projects not

meeting the portfolios strategic objectives.


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Portfolio Management Vs. Program

Management

Portfolio Management:

A portfolio comprises a number of programs and/or projects, that are not

necessarily linked by common objectives (other than at highest level), but

rather are grouped together to enable better control to be exercised over

time.

Program Mgmt Vs. Portfolio Mgmt:

Program Management Portfolio Management

Consist of series of projects Consists of number of programs and/or

projects

That are linked by common objectives That are not necessarily linked by

common objectives (other than at highest

level)


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What is a SubProject?Projects are frequently divided into more manageable

components or subprojects, although the individualsubprojects can be referred to as projects and managedas such. Subprojects are often contracted to an external

enterprise or to another functional unit in the performingorganization.

Subprojects according to human resource skill requirements,such as plumbers or electricians needed on a construction

project.

Subprojects involving specialized technology, such as theautomated testing of computer programs in a softwaredevelopment project.



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Project Parameters (Constraints)

Cost

Time

Scope


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What is a Project (Contd)Triple Constraint: Trade-off between Time, Cost and Scope

TimeCost

Scope

Quality

The triple constraint is often depicted as

a triangle where one of the sides or one

of the corners represent one of the

parameters being managed by the

project team.

Project managers often talk of a triple

constraintproject scope, time and

costin managing competing project

requirements. Project quality is affected

by balancing these three factors. High

quality projects deliver the requiredproduct, service within scope, on time,

and within budget. The relationship

among these factors is such that if any

one of the three factors changes, at

least one other factor is likely to be

affected.


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If the duration (time) of your project schedule decreases, you might need

to increase budget (cost) because you must hire more resources to do

the same work in less time. If you cant increase the budget, you might

need to reduce the scope because the resources you have cant do all

of the planned work in less time.

If you must decrease a projects duration, make sure that overall project

quality is not unintentionally lowered. For example, testing and quality

control often occur last in a software development project; if the project

duration is decreased late in the project, those tasks might be the ones

cut back. You must weigh the benefits of decreasing the project duration

against the potential downside of a deliverable with poorer quality.


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If your project scope increases, you might need more time or more

resources (cost) to do the additional work.

If the project scope increases after the project has started, its called

scope creep. Changing project scope midway through a project is notnecessarily a bad thing.

Changing project scope is a bad thing only if the project manager doesnt

recognize and plan for the new requirementsthat is, when other

constraints (cost, time) are not correspondingly examined and, if

necessary, adjusted.


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Project Management

Project Management is an organized venture of managingprojects

Project management is the application of knowledge, skills,tools, and techniques to project activities in order to meet

or exceed stakeholder needs and expectations from aproject

Meeting stakeholder needs and expectations involves

balancing competing demands among:

Scope, time, cost, and quality.

Stakeholders with differing needs and expectations.

Identified requirements (needs) and unidentified

requirements (expectations).


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Modern Tools - Technique

PERT/CPM (Program Eval & Review Tech)

LinearResponsibility Charts

Gantt Charts and Milestone Charts

Work Breakdown Structures

Project Action Plans

Computers


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Operations and Projects

Two may overlap yet they share many characteristics like:

Performed by people.

Constrained by limited resources.

Planned, executed, and controlled.

Operations are ongoing and repetitive while projects aretemporary and unique.

The objectives ofprojects and operations are fundamentallydifferent. The purpose of a project is to attain its objectiveand then terminate. Conversely, the objective of anongoing operation is to sustain the business.


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Operations and Projects (Contd..)

Operations may include activities suchas: Financial management and control

Continuous manufacture

Product distribution

Projects may include activities such as: Developing a new product or service.

Effecting a change in structure, staffing, or styleof an organization.

Developing or acquiring a new or modifiedinformation system.


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1. Projects are Temporary

A project can thus be defined in terms of its distinctivecharacteristics-aproject is a temporary endeavorundertaken to create a unique productorservice.

Temporary means that every project has a definitebeginning and a definite end.

The end is reached: When the projects objectives have been achieved, or

When it becomes clear that the project objectives will not orcannot be met and the project is terminated.

Temporary does not necessarily mean short in

duration: many projects last for several years.

The duration of a project is finite: projects are not ongoing efforts.


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2. Product of a Project is unique

Projects involve doing something that has not beendone before and which is, therefore, unique.

For example, many thousands of office buildings

have been developed, but each individual facilityis uniquedifferent owner, different design,different location, different contractors, and soon.


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The Context for Project

Management The Project Life Cycle

Project Stakeholders

Organizational Influences

Key General Management Skills


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The Project Life Cycle

The project life cycle serves to define the beginningand the end of a project

The life cycle is normally divided into a number of

phases, to provide better management control with

appropriate links to the ongoing operations of the

performing organization.

Each project phase is marked by completion of one

or more deliverables

A deliverable is a tangible, verifiable work product

such as a

feasibility study or a detailed design


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A Generic Life Cycle

The level of uncertainty is highest and, hence, risk of

failing to achieve the objectives is greatest at the start of

the project. The certainty of completion generally gets

progressively better as the project continues.


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Project Stakeholders

Project stakeholders are individuals and organizationswho are actively involved in the project, or whoseinterests may be positively or negatively affected as aresult of project execution or successful projectcompletion.

The project management team must identify thestakeholders, determine what their needs andexpectations are, and then manage and influence thoseexpectations to ensure a successful project.


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Key Stakeholders

Key stakeholders on every project include:Project manager

the individual responsible for managing the project.

Customer

the individual or organization who will use the project product

Performing organization

the enterprise whose employees are most directly involved indoing the work of the project.

Sponsor

the individual or group who provides the financial resources, incash or in kind, for the project.

Project team membersthe people doing the work on the project


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Organizational Influences Conduct of Projects is influenced by:

Organizational Systems

The organizations tend to have management systems in place tofacilitate project management. For example, their financial systemsare often specifically designed for accounting, tracking, andreporting on multiple, simultaneous projects.

Organizational CultureConservative or Aggressive

Participative or Authoritarian

A project manager with a highly participative style is appropriate toencounter problems in a rigidly hierarchical organization, while aproject manager with an authoritarian style will be equallychallenged in a participative organization.

Organizational StructureRange from fully functional to totally project oriented.


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Key General Management Skills

General management encompasses planning, organizing, staffing,executing, and controlling the operations of an ongoing enterprise.

Some general management skills are critical for successful project

management:

Leading

Communicating

Negotiating

Problem Solving


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Leadership

Leadership is about integrity

Transformation leaders interact with team members in a

positive and inspiring manner.

A leader has a vision that is fueled by an overall

confidence and willingness to take risks.

Sharpens and utilizes peoples skills, intelligence, andtalents to attain a goal, create an excellent product,

accomplish a task or mission, or reach goals and

objectives


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Communicating

Exchange of information

Internal & external

Formal & informal

Vertical and horizontal


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Negotiating

Negotiating involves conferring with others

to come to terms with them to reach an

agreement. Negotiations can be on the

following:

Scope, cost and schedule

Changes to scope ,cost and schedule

Contract terms and conditions

Assignments and resources


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Problem solving

A combination of problem definition and

decision making

Problem definition requires distinguishing

between causes and symptoms

Decision making includes analyzing the

problem to identify viable solution


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Assignment #1

Select the organization of your own choice (may be your own) anddevelop:

Organization Chart

And Identify its:

Organizational Structure with proper justification

(For example, if your organization is a matrix org then you wouldspecify which type of matrix org with proper reasoning)


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Project Management Process

The purpose of the Project

Management process is to identify,

establish, coordinate and monitor

activities, tasks and resources

necessary for a project to produce a

product and/or service meeting the

agreed requirements.


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Planning provides documented executing plans and

the updates as the project progresses.

InitiatingProcesses

PlanningProcesses

ControllingProcesses

Executing

Processes

ClosingProcesses

Project Management Process

K l d A f P j t


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Knowledge Areas for Project

Management

Project Integration Management

Project Scope Management

Project Time Management

Project Cost Management Project Quality Management

Project Human Resource Management

Project Communications Management

Project Risk Management Project Procurement Management

M i f th P j t M t P t th


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Mapping of the Project Management Processes to theProject Management Process Groups and the Knowledge

Areas

Click to view

A F k f P j t


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A Framework for Project

Management

O t f P j t


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Outcomes of Project

Management

As a result of successful implementation of the process: the scope of the work for the project will be defined;

the feasibility of achieving the goals of the project with availableresources and constraints will be evaluated;

the tasks and resources necessary to complete the work will besized and estimated;

plans for execution of the project will be developed andimplemented;

progress of the project will be monitored and reported;

actions to correct deviations from the plan and to preventrecurrence of problems identified in the project, will be takenwhen project targets are not achieved.


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Results of Poor Project Management

Original objectives not met

Project cost overruns

Schedule overruns

Project may not be completed

Personal misunderstandings and

differences, often resulting in

conflict

Poor quality project outputs

Failure to deliver anticipated

business benefits, leading to

dissatisfied management and

project members

Insufficient resources

PAIN

Lect1.Intro to PM Part.A

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