Applied Project Management MGT 461 Lecture #4 Project Management Terminology Ghazala Amin Basic Terminology Projects Subprojects Programs Portfolios Processes Project Management What is a Project? (Definition #1) (Guide to the Project Management Body of Knowledge, the Project Management Institute, 3 rd. Ed., 2004, p. 5) What is a Project? (Definition #2) (Robert Wysocki / Robert Beck Jr. / Daniel B. Crane: Effective Project Management, John Wiley & Sons, 2002, p.65) What is a Project? (Definition #3) (Clifford F. Gray / Erik W. Larson, Project Management: The Managerial Process, 2. ed., p. 15) What is a Project? (Definition #4) (J.R. Turner, The Handbook of Project-Based Management: Improving Processes for Achieving Your Strategic Objectives, Mcgraw Hill: New York, 1992) What is a Project? (Definition #5) (David I. Cleland / Lewis R. Ireland, Project Management: Design and Strategic Implementation, 4th ed., p. 10) Subprojects are smaller, more manageable components of larger, more complex projects Subprojects have their own goals and outputs or deliverables which together constitute the final deliverable. Subprojects have, analogous to the main project in which they are integrated, their own scope, schedules, costs, human resources, risks etc. Subprojects are comprised of project team members and are headed by subproject managers who, similar to the project manager, must have excellent decision-making, communication and other requisite skills, and be in a position to manage the implementation of the subproject work effectively and efficiently. What are Subprojects? Subprojects Example: The Sydney Olympic Games 2000 Events Venues, Facilities Accommodation Venues, Facilities Accommodation Transport Media Facilities and Coordination Media Facilities and Coordination Telecommunications Security Arrangements Security Arrangements Medical Care Human Resources and Volunteers Human Resources and Volunteers Cultural Olympiad Pre-Games Training IT-Projects Opening and Closing Ceremonies Opening and Closing Ceremonies Public Relations Financing Test Games and Trial Events Test Games and Trial Events Sponsorship Management Sponsorship Management The Sydney Olympic Games 2000 was a highly complex project which comprised several distinct work areas, each of which could be con- sidered as subprojects, in their own right, and which all had to be in- tegrated and coordinated within the framework of the overall olympic project. A group of projects managed in a coordinated way to obtain benefits not available from managing them individually A program is inherently more complex than a constituting project it has a broader scope and may require extensive coordination between its various constituting projects A project results in the creation of an output and is then ended, a program must integrate and maintain the operationality of that output for a specified period of time. Project A Project B Project C Program X Project D Project E Project F What is a Program? Examples of a Program? Afforestation Electrification Poverty Alleviation Primary Education Promotion Immunization Privatization Space Exploration Weaponization Urban Regeneration Water Resource Development Programs & Projects: Similarities Programs and projects have goals and objectives which define their purpose of existence Programs and projects have life-spans defining a starting and ending point in time Programs and projects consume resources and necessarily incur a cost Programs and projects require application of a methodo-logy and must be managed properly to bolster their chances of success Programs and projects aim at helping organizations achieve their mission and adding value to them. Programs & Projects: Differences X Programs may have multiple overarching goals whereas projects have one prime goal X A program has a comparatively longer life-span, and obviously costs more than the combination of all the projects which constitute it X A program is inherently more complex than a constituting project it has a broader scope and may require extensive coordination between its various constituting projects X Whereas a project results in the creation of an output and is then ended, a program must integrate and maintain the operationality of that output for a specified period of time What is Project Portfolio? The project portfolio is the set of projects which an organization is undertaking. Projects usually differ in their type, complexity, cost, time requirement, risk level, priority, etc. The Project Portfolio The project portfolio is the set of projects which an organization is undertaking. Projects usually differ in their type, complexity, cost, time requirement, risk level, priority, etc. The projects comprising the portfolio may be in various stages of initiation, planning, and implementation Some portfolios may be quite large, comprising dozens or hundreds of single projects,and consume a large chunk of an organizations resources Portfolios are dynamic. Their composition will change over time as some projects end or are prematurely terminated and new projects are added A major challenge for organizations is to devise a system for identifying, selecting and monitoring projects which are aligned with its mission, goals and objectives and add value to them What is a Process? According to the Project Management Institute, a process can be defined as: Process Interactions Process Series of actions bringing about a result. Individual processes within a process group are linked by their inputs and outputs Each process is defined by Inputs: Documents or documentable items that will be acted upon Tools and Techniques: Mechanisms applied to the inputs to create the outputs Outputs: Documents or documentable items that are a result of the process Project Management Processes Core Processes Have clear dependencies that require them to be performed in essentially the same order on most projects Example : planning, estimating, development, test etc. Facilitating Processes Dependent on the nature of the project Performed intermittently as needed but are not optional Example: Quality assurance, CCB Meetings, sponsor review etc. Focus on Processes Systematically All project management processes should be identified and described, with each process task carefully analyzed in terms of its input(s) and output(s) plus its estimated cost, duration and risk factors, graphically illustrated and subsequently documented for reference by project stakeholders in a project process directory. This directory should be periodically revised and the processes therein modified, simplified or, where necessary, reengineered to improve their effectiveness and efficiency. What is Project Management ? Project Management The application of knowledge, skills, tools and techniques to project activities in order to meet or exceed stakeholder needs and expectations Project Management is primarily about leadership, integrating work occurring in all project areas, steering the project in the right direction and effectively managing stakeholders and complexity. What is Project Management? (Robert K. Wysocki / Robert Beck Jr. / David B. Crane, Effective Project Management, 2. ed., John Wiley & Sons, 2002, p. 79). What is Project Management? [ISO 9001:2000] What is Project Management? (Harold Kerzner, Project Management: A Systems Approach to Planing, Scheduling and Controlling, John Wiley & Sons, Inc., New York et. al., 7. ed, 2001, p. 4) Project Management helps organizations tackle the pressure of change in environments global, economic, market, social, political, regulatory, technological and others which are characterized by a high and increasing degree of complexity, dynamism and uncertainty Essential Functions of Project Management Project Management offers a focused, systematic, integrated and process-driven framework of application of an organizations resources for effective and efficient realization of its projects, and therewith its goals, objectives and mission. It is, hence, an important strategic tool indispensible for an organizations survival and growth. Essential Functions of Project Management Project Management is primarily about leadership, integrating work occurring in all project areas, steer- ing the project in the right direction and effectively managing stakeholders and complexity. Specialized technical tasks and the tools used in project management - often the prime focus of interest by students of the subject and novice project managers - are of secondary concern. Essential Functions of Project Management Project Management teaches best practices based on years of experience with projects in diverse fields across the globe. It should be kept in mind, though, that what works well in one project situation may not at all work well in another. Use good judgement and always be cognizant of the context-sensitivity of Project Management! Essential Functions of Project Management Using Project Management is no guarantee that the project will be sucessful i.e. that it achieves its goal within time and allocated budget to the satisfaction of all stakeholders concerned. What Project Management essentially does, though, is offer a systematic but flexible framework which can increase the chances of the project suceeding or, conversely, decrease its chances of failing. Essential Functions of Project Management The intensity with which Project Management is applied must be proportional to the need and complexity of that project. Just as one wouldnt commission a bazooka or a flame thrower to kill a cockroach, it would be an error of judgment to apply the full gamut of project management processes and tools to a project which can probably be successfully managed more effectively and efficiently using a simpler and intuitive approach. Essential Functions of Project Management Project Management seeks at least to meet - and pre- ferably to exceed - stakeholder needs (i.e. the identi- fied requirements) as well as stakeholder expecta- tions (i.e. unidentified requirements) from a given project within the constraints of scope, cost, time and quality. Project Management is an evolving area of knowledge striving for continuous self-improvement over time.