Introduction to Project Management

Information Technology Institute – ITI Project Management, Copyright 2009

Introduction to Project Management

Amany Atef, PMP eLearning Department Manager - ITI

Email: [email protected]


To: Provide tools and ideas for more effectively executing your projects

In a way that: Develops understanding of the need to execute your projects more effectively

So that: Develops understanding of some basic project management principals and practices Promotes teamwork

Course Description


Course ObjectivesThis course will enable learners to:

• Describe the different stages of a project• Describe the role and management responsibilities of project managers• Understand the project management framework• Establish and work through the phases of a project• Develop an effective project scope, budget, schedule• Identify the risks in a project and develop strategies to minimize them• Use effective communication strategies with all project stakeholders

throughout the project• Identify project management tools and techniques• Close and evaluate a project.


Introduction to PM … Day:1

1


• History of project mangement• Why project management is important?• What is a Project?• Project charactersitcs and attributes• What is a project Management?• What is the Project Manager’s Role?• Project manager Skills?• Project Lifecycle• Project Framework• Project Knowledge Areas

Day1: AGENDA


Your Turn …• When someone says ‘project’ what comes to

mind?• What is your project?• What is the hardest thing about your project?• What has been the biggest surprise about

your project?


Introduction• Many organizations today have a new or renewed interest in

project management

• Computer hardware, software, networks, and the use of interdisciplinary and global work teams have radically changed the work environment

• The U.S. spends $2.3 trillion on projects every year, or one-quarter of its gross domestic product, and the world as a whole spends nearly $10 trillion of its $40.7 gross product on projects of all kinds

7


History of Project Management

• Some people argue that building the Egyptian pyramids was a project, as was building the Great Wall of China

• Most people consider the Manhattan Project to be the first project to use “modern” project management

• This three-year, $2 billion dollars (in 1946) project had a separate project manager and a technical manager

8


Project Management Statistics

• Worldwide IT spending totaled more than $1.8 trillion in 2005, a 6 percent increase from 2004, and spending is projected to grow 8 percent in 2006 and 4 percent in 2007

• In 2005, the total compensation for the average senior project manager was $99,183 per year in the United States, $94,646 in Australia, and $106,374 in the United Kingdom

• The number of people earning their Project Management Professional (PMP) certification increased by more than 70 percent from 2004 to 2005, with more than 200,000 PMPs worldwide by the end of August, 2006

9


Motivation for Studying Information Technology (IT) Project Management

• IT Projects have a terrible track record, as described in the “What Went Wrong?” [Information Technology Project Management,Fifth Edition, 2007]

• A 1995 Standish Group study (CHAOS) found that only 16.2% of IT projects were successful in meeting scope, time, and cost goals

• Over 31% of IT projects were canceled before completion, costing over $81 billion in the U.S. alone

10


Advantages of Using Formal Project Management

• Better control of financial, physical, and human resources• Improved customer relations• Shorter development times• Lower costs• Higher quality and increased reliability• Higher profit margins• Improved productivity• Better internal coordination• Higher worker morale (less stress)

11


What is a Project?It is not ...

You guys start coding and I’ll go figure out what the customer wants.


What is a Project?• A project is “a temporary endeavor undertaken to

create a unique product, service, or result”(PMBOK® Guide, fourth Edition, 2008, p. 5)

• Operations is work done to sustain the business

• Projects end when their objectives have been reached or the project has been terminated

• Projects can be large or small and take a short or long time to complete

13


Project Attributes

• A project: – Has a unique purpose– Is temporary (Start and End date)– Is developed using progressive elaboration– Requires resources, often from various areas– Should have a primary customer or sponsor

• The project sponsor usually provides the direction and funding for the project

14


Project Characteristics

• Performed by People• Constrained by Resources• Planned, Executed and Controlled• Temporary and Unique (as opposed to

operations, which are ongoing and repetitive)


Project Stakeholders• Stakeholders are the people involved in or affected

by project activities• Stakeholders include:

– The project sponsor– The project manager– The project team– Support staff– Customers– Users– Suppliers– Opponents to the project

16


Your Turn …

• Give some examples of projects in your domain!!


Examples of IT Projects• A help desk or technical worker replaces ten laptops for a

small department• A small software development team adds a new feature to an

internal software application for the finance department• A college campus upgrades its technology infrastructure to

provide wireless Internet access across the whole campus• A cross-functional task force in a company decides what

Voice-over-Internet-Protocol (VoIP) system to purchase and how it will be implemented

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• VoIP• Outsourcing• Data networking• Customer relationship

management• Collaboration

Top Ten Technology Projects in 2006

• Supply chain management

• Desktop upgrades• Application performance

management• Business analytics• Compliance tracking

19


Media Snapshot: Where IT Matters• In 2006, Baseline Magazine published “Where IT. Matters:

How 10 Technologies Transformed 10 Industries” as a retort to Nicholas Carr’s ideas (author of “IT Doesn’t Matter”)– VoIP has transformed the telecommunications industry

and broadband Internet access– Global Positioning Systems (GPS) has changed the farming

industry– eLearning has changed the education industry– Digital supply chain has changed the entertainment

industry’s distribution system

20


Project and Program Managers• Project managers work with project sponsors, a

project team, and other people involved in a project to meet project goals

• Program: group of related projects managed in a coordinated way to obtain benefits and control not available from managing them individually (PMBOK® Guide, fourth Edition, 2008, p. 16)

• Program managers oversee programs and often act as bosses for project managers

21


Your Turn …

Explore … • The meaning and importance of the

[Project+Management].…


What is Project Management?

• Project management is “the application of knowledge, skills, tools and techniques to project activities to meet project requirements” (PMBOK® Guide, Fourth Edition, p. 8)

• Project managers strive to meet the triple constraint by balancing project scope, time, and cost goals

23


Characteristics of Effective Project Management

• Effectively plan the project• Accurately monitor and communicate the project

progress• Ensure that all requirements are met• Ensure the project is on time and within budget• Schedule resources effectively• Manage changes to the project


Now Guess..

The role and the skills of the Project Manager?

Your Turn ..


A conductor of an orchestra

The many roles of the Project Manager

Your fairy godmotherA magician

The coach of a team


The Role of the Project Manager

• Job descriptions vary, but most include responsibilities like planning, scheduling, coordinating, and working with people to achieve project objectives, and meet the stakeholders needs and expecations

• Remember that 97% of successful projects were led by experienced project managers, who can often help influence success factors

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Roles of a Project Manager

• Integrator• Communicator• Leader• Negotiator• Planner


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1. People skills2. Leadership3. Listening4. Integrity, ethical behavior, consistent5. Strong at building trust6. Verbal communication7. Strong at building teams8. Conflict resolution, conflict management9. Critical thinking, problem solving10. Understands, balances priorities

Ten Most Important Skills and Competencies for Project Managers


General Management Skills:• Planning• Finance and Accounting• Personnel Administration• Technology• Organizational Development• Delegation• Team Building• Conflict Management• Solving Problems


Leadership Skills:• Vision and Strategy• Establishing Direction• Aligning People• Communicating• Negotiating• Motivating and Inspiring• Influencing Organizations• Overcoming Barriers to Change


• Effective project managers provide leadership by example

• A leader focuses on long-term goals and big-picture objectives while inspiring people to reach those goals

• A manager deals with the day-to-day details of meeting specific goals

• Project managers often take on the role of both leader and manager

Importance of Leadership Skills

32


Communications Skills:

• Writing• Listening• Speaking• Presenting• Media Relations• Meeting Management


Careers for IT Project Managers

• In a 2006 survey by CIO.com, IT executives ranked project/program management the skills that would be the most in demand in the next two to five years

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Top IT Skills (partial list)

SKILL PERCENTAGE OF RESPONDENTS

• Project/program management 60%• Business process management 55%• Business analysis 53%• Application development 52%• Database management 49%• Security 42%• Enterprise architect 41%• Strategist/internal consultant 40%

35


PM

Triple Constrains

TIME

COSTSCOPE

Quality


The Triple Constraint of Project Management

37

Successful project management means meeting all three goals (scope, time, and cost) – and meet the customer needs and expectations!


The Triple Constraint

OR, IN PLAIN

ENGLISHFast Cheap

Good

Cost

Quality/Scope

Time


Triple Constraint Trade-Offs

Time Cost

Quality/Scope

Constraint Change

Shorter Time Higher Cost Reduced Quality or Narrowed Scope

Reduced Cost More Time Reduced Quality or Narrowed Scope

Higher Quality or Increased Scope

More Time Higher Cost

Required Adjustment Alternatives (One or Combination of Both)


Triple Constraint: Setting Priorities

Constraint 1 2 3 MeasurementTimeCostQuality/ Scope

Priority Matrix

•Must be set by customer and sponsor near startup.•May change over time, but a change is a significant event!

If these are the established priorities and measurements, what are some of the implications for the project if the project starts running lateor shows signs of exceeding budget?

Constraint 1 2 3 Measurement

Time X Building must be completed by October 31 of this year to accommodate corporate move.

Cost X Costs for the project must not exceed $22.5 million.

Quality/ Scope X Must provide workspace for 120 call center staff.

Example of a Completed Priority Matrix for a Construction Project


Why do some projects fail?


• Scope creep• Poor requirements gathering • Unrealistic planning and scheduling/Impossible

schedule commitments• Lack of communications• Lack of User involvement• Lack of resources

common pitfalls



2

• The Successful project management• The Project management Lifecycle• Project management Framework• Project Objectives• The Project Charter• Organizations Structure


Successful Project Management

• Meets or exceeds the customers requirements• Delivered on time• Within Budget


9 PM Knowledge Areas

Ingredients of Successful Project Management

5 Important Steps

+

3 Critical elements

+A

B

C


Process

Peop

leEnvironm

ent

A: 3 critical elements of Project Success


If ANY side of the triangle breaks down

Process

Peop

leEnvironm

ent


Disaster occurs!!!


Organization Structure

• Functional• Project• Matrix [weak, strong, balanced]


Organization Structure: Functional


Organization Structure: Project


Organization Structure: Matrix


B: 5 Steps of Project Management

Project Initiation

Project Planning

Project Execution

Project Control

Project Closeout


project lifecycle

TIME

EFFORTplanninginitiation execution close out

control

initiation

planning

execution

close Out

control


Project Lifecycle (cont.)• Defines the beginning and

end of the project• Divides the project into phases

that provide better management control and the appropriate links to the ongoing operations of the organization

Each phase:• Deliverables• Reviews• Exit criteria


Project Management Framework


project management processes (5 process) initiating process creates a strategic direction for the project

planning process defines and refines objectivesplan the course of action required to attain the objectives

executing process integrates people and other resources to carry out the project

managementplan for the project

monitoring and ccontrolling process measures and monitors progress to meet project objectives

closing process establishes the learning process


Links Among Process Groups


initiatingprocesses

planningprocesses

executingprocesses

monitoringprocesses

closingprocesses


Project Initiation

• Concept Development• Design of the Project Scope• Issuing any RFPs• Selecting any Consultants• Contracting with Consultants


VISION

GOALS

STRATEGIC PLANS

ACTIONS & TASKS

IMPACT

INFLUENCE

WHERE

WHAT

HOW


initiating

planning

executing

monitoring

closing


Project Planning

• Complete Project Plan (MPP) Including:– Tasks – Budgeted hours for each task– Staff assignments by task– Project timeline– Identification of milestones


leader

moderator

creator

innovatormanager

organiser

evaluator

finisher

execution initiation

control planning


initiatingprocesses

planningprocesses

executingprocesses

monitoringprocesses

closingprocesses


Project Execution

• Execute tasks defined in project plan • Budget Management• Staff Management• Timeline Management• Consultant Management


initiatingprocesses

planningprocesses

executingprocesses

monitoring/controllingprocesses

closingprocesses


Project Control

• Change Control• Risk Monitoring• Scope Verification• Contract Monitoring• Performance Reporting


initiatingprocesses

planningprocesses

executingprocesses

monitoringprocesses

closingprocesses


Project Closeout

• Final Reporting• Knowledge Transfer• Archive Project Materials• Record of lessons learned• Project Documentation• celebrate success


Project Management Framework (cont.)


Your Turn: What We Know Already

• Look back over your previous experience in project management

• How many of the nine knowledge areas did you use? (Probably all nine!)

• Take a quick inventory and point to your most successful application use of that knowledge area.

• Pick up at least one new tip from others right now!


Project Management Framework


9 Project Management Knowledge Areas

• Knowledge areas describe the key competencies that project managers must develop– Four core knowledge areas lead to specific project objectives

(scope, time, cost, and quality)– Four facilitating knowledge areas are the means through

which the project objectives are achieved (human resources, communication, risk, and procurement management

– One knowledge area (project integration management) affects and is affected by all of the other knowledge areas

– All knowledge areas are important!

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Key Areas of Project Management• Scope Management• Time Management• Cost Management• Quality Management• Human Resource Management• Communications Management• Risk Management• Integration Management


PROJECT CHARTER …


The Project Charter: What?

• The Project Charter is a document that demonstrates management support for the project.

• Authorizes the project manager to lead the project and allocate resources as required.


A Project Charter: Why?• Primary purpose: To get approval to proceed

with the project and obtain sufficient approval for resources to move to the next phase of the project.

• Communicate to stakeholders and other interested parties the project’s mission and the project’s objectives.

• Communicate to the project team what they are expected to accomplish.


Create Project Charter: How?Steps* :• Step 1: Identify the Project Vision

– Vision– Objectives– Scope– Deliverables

• Step 2: Describe the Project Organization– Customers– Stakeholders– Roles: – Structure:

• Step 3: Plan the Approach to Implementation– Implementation Plan– Milestones– Dependencies– Resource Plan

• Step 4: List the Risks and Issues• Step 5: Signature Page Granting Authority to Proceed


Project Charter (Sample 1)


Project Charter WorksheetProject Mission

Write Project Mission Statement Here:

Project Scope Brief statement of project scope. (Supplement with Product Scope and Project Scope Diagrams as part of the Appendix.)

Project Objectives List at least three SMART Objectives.

Project Assumptions List at least three Project Assumptions.

Project Constraints See Project Priority Matrix in Appendix. List any other constraints here.

Project PhasesIndicate the phases of the proposed project.

Milestones List major milestones for project identified so far (include at least five throughout the life of the project).

Project Risks Attach Risk Identification Worksheets and Risk Priority worksheet.

Stakeholders Attach Potential Stakeholders Worksheet.

Signature Page Granting Authority to Proceed Obtain signatures of Project Sponsor and Project Manager.Project Sponsor Signature:Project Manager Signature:


Writing SMART Project Objectives

S pecific

Objectives should be stated in terms that include some quantitative target for the end product.

M easuable

There should be some way of actually testing whether the stated target has been met.

A ttainable

The desired objective must be one that is actually possible to achieve within the time and cost parameters provided.

R elevant

The desired objective should relate directly to the organization's business needs and stated mission.

T ime-Bound

The boundaries for completion date of the desired objective should be either a specific date or time or an "offset" from the beginning of the project. (For example, must be completed within five months of project launch.)


ACTIVITY ONE:For a project from your choice, Create a project charter?

In 30:00 minutes

Your Turn…


Questions & Discussions



3

• What’s Project Scope Management• Statement of Work• Deliverable• Work Package• Work Breakdown Structure• Scope Planning• Scope verification• Scope Creep• Scope Control• Mind Mapping: a tool to create WBS *


Project Scope Management


What is a Scope?


• Scope refers to all the work involved in creating the products of the project and the processes used to create them

• Project Scope "The work that needs to be accomplished to deliver a product service or result with the specified features and functions.

What is a Scope


Poor scope definition is the major contributing factor to cost overruns in the engineering and construction industry.

Project Scope Management• Process required to ensure that the projectincludes all the work required, and only the workrequired, to complete the project successfully.

• includes the processes involved in defining and controlling what is or is not included in a project

Key Point


Project Scope Management Processes• Scope planning: deciding how the scope will be defined,

verified, and controlled • Scope definition: reviewing the project charter and

preliminary scope statement and adding more information as requirements are developed and change requests are approved

• Creating the WBS: subdividing the major project deliverables into smaller, more manageable components

• Scope verification: formalizing acceptance of the project scope by key project stakeholders

• Scope control: controlling changes to project scope which impact project cost and time goals


Scope Planning and the Scope Management Plan

• The scope management plan is a document that includes descriptions of how the team will prepare the project scope statement, create the WBS, verify completion of the project deliverables, and control requests for changes to the project scope

• Key inputs include the project charter, preliminary scope statement, and project management plan

• It should be reviewed with the project sponsor to make sure the approach meets expectations


Project Scope Management

Sample Scope Management Plan


Scope Definition and theProject Scope Statement

• The project team develops a preliminary scope statement in initiating a project as part of the project integration management knowledge area

• The preliminary scope statement, project charter, organizational process assets, and approved change requests provide a basis for creating the more specific project scope statement

95


Scope Definition and theProject Scope Statement

• Project scope statements should contain at a minimum:– Description of the project – overall objectives, justification– Detailed descriptions of all project deliverables– Characteristics and requirements of products and services

produced as part of the project• Other helpful information:

– Project success criteria– Project boundaries– Product acceptance criteria– Schedule milestones– Costs estimates…


• Statement of Work (SOW)• Delievrables• Work Packages

Some Terminology definitions


Statement of Work (SOW)A SOW is a detailed narrative description of the workrequired for a project.

Effective SOWs contain1. Introduction and background2. Technical description

1. The more specific the better 3. Timeline and milestones

1. Anticipated (hoped-for) 4. Client expectations

1. What constitutes a project well done


The Scope Statement Process

1. Establish the project goal criteria (deliverables)a) costb) schedulec) performanced) deliverablese) review gates

2. Develop the management plan for the project3. Establish a work breakdown structure4. Create a scope baseline


• A deliverable is a product produced as part of a project, such as hardware or software, planning documents, or meeting minutes

Deliverables


Work Packages

• Lowest level of WBS is called a Work Package if further deconstruction into activities is possible.– May be assigned as a subproject– May be subordinated into WBS structure for

estimating purposes• Activities at this level become the basis for

time and duration estimates.


Work Packages

Lowest level in WBS X.X.X.X

Deliverable result

One owner

Miniature projects

Milestones

Fits organization

Trackable


Initial Scoping Effort• Sets the baseline for cost and schedule• Must involve the right people• Must include implementation• Identifies items not included• Maximum influence on project cost• Breaks project into manageable pieces

(W.B.S)


PROJECT WBS …


Deliverable oriented grouping of project elements that organizes and defines the total scope of the project

WBS : Definition


Work Breakdown Structure (WBS)A process that sets a project’s scope by breaking downits overall mission into a cohesive set of synchronous,increasingly specific tasks.

What does WBS accomplish? Echoes project objectives Offers a logical structure Establishes a method of control Communicates project status Improved communication Demonstrates control structure


Work Breakdown Structure (WBS)• WBS is a foundation document that provides the basis

for planning and managing project schedules, costs, resources, and changes

• WBSs help organize the activities required to meet the objectives of the project.

• WBSs Focus is on deliverables.• Decomposition is subdividing project deliverables into

smaller pieces– A work package is a task at the lowest level of the WBS– Tasks on a WBS represent work that needs to be done to complete the

project, not specifications (e.g., type of server)


Work Breakdown Structure (WBS)• The project scope statement and project management

plan are the primary inputs for creating a WBS• The outputs include the WBS itself, the WBS dictionary,

a scope baseline and updates to the project scope statement and scope management plan

• The WBS is often depicted as a task-oriented family tree of activities– The WBS can be organized around project products, project

phases or using the project management process groups


Steps for creating a WBS

1. Divide the project into major objectives2. Partition objectives into activities3. Divide activities with missing characteristics

into sub-activities4. Repeat #3 until all sub-activities have desired

characteristics5. Lowest sub-activities are the basis of work

packages


Successful Work Breakdown

• Status and completion is easily measured• Definite beginning and end• It is familiar with prior experience• Manageable work assignments• One continuous stream of work from start

to finish


Partial WBS Organized by Product Areas


Partial WBS Organized by Project Phase


Intranet WBS and Gantt Chart in Microsoft Project


Resulting WBS in Chart Form


Partial Intranet WBS in Tabular Form1.0 Concept

1.1 Evaluate current systems1.2 Define Requirements

1.2.1 Define user requirements1.2.2 Define content requirements1.2.3 Define system requirements1.2.4 Define server owner requirements

1.3 Define specific functionality1.4 Define risks and risk management approach1.5 Develop project plan1.6 Brief Web development team

2.0 Web Site Design3.0 Web Site Development4.0 Roll Out5.0 Support


Work Breakdown Structure and Codes

Work Packages are individual project activities

1.0

1.2 1.3 1.4

1.2.1

1.2.2

1.2.3

1.3.1

1.3.2

1.2.3.1

1.2.3.2

Deliverables are major project components

Sub-deliverables are supporting deliverables

The project is the overall project under development


WBS for Computer Order Processing System Project


Approaches to Developing WBSs

• Using guidelines: some organizations, like the DOD*, provide guidelines for preparing WBSs

• The analogy approach: review WBSs of similar projects and tailor to your project

• The top-down approach: start with the largest items of the project and break them down

• The bottom-up approach: start with the specific tasks and roll them up

• Mind-mapping approach: Mind Mapping is a technique that uses branches radiating out from a core idea to structure thoughts and ideas


Sample Mind-Mapping Approach for Creating a WBS

?


Scope Verification

• It is very difficult to create a good scope statement and WBS for a project

• It is even more difficult to verify project scope and minimize scope changes

• Scope verification involves formal acceptance of the completed project scope by the stakeholders

• Acceptance is often achieved by a customer inspection and then sign-off on key deliverables


What Went Wrong?

• A project scope that is too broad and grandiose can cause severe problems– In 2001, McDonald’s fast-food chain initiated a project to

create an intranet that would connect its headquarters with all of its restaurants to provide detailed operational information in real time; after spending $170 million on consultants and initial implementation planning, McDonald’s realized that the project was too much to handle and terminated it


• Scope changes can affect the timeline of the project and the cost of the project. These changes in scope are more commonly referred by the term scope creep.

In a nutshell, scope creep is the change or growth of project scope.

• Scope creep more frequently occurs during the later stages of a project, such as programming and development, than during the earlier stages, such as design.

What is Scope creep?


The effect of “creeping scope” is a major cause of cost overruns

$

Tip


To manage creeping scope

• Keep scope documents current• Freeze design after the estimate has been

approved• Allow only those changes that are justified

by benefit• Use an effective change management

procedure


Scope Control• Scope control involves controlling changes to the project scope• Goals of scope control are to:

– Influence the factors that cause scope changes– Assure changes are processed according to procedures

developed as part of integrated change control– Manage changes when they occur

• Tools for performing scope control include a change control system and configuration management

• Variance is the difference between planned and actual performance


Best Practices for Avoiding Scope Problems1. Keep the scope realistic: Don’t make projects so large that they

can’t be completed; break large projects down into a series of smaller ones

2. Involve users in project scope management: Assign key users to the project team and give them ownership of requirements definition and scope verification

3. Use off-the-shelf hardware and software whenever possible: Many IT people enjoy using the latest and greatest technology, but business needs, not technology trends, must take priority

4. Avoid gold-platted scope5. Follow good project management processes: As described in this

lecture and others, there are well-defined processes for managing project scope and others aspects of projects


Suggestions for Improving User Input

• Have regular meetings with defined agendas, and have users sign off on key deliverables presented at meetings

• Deliver something to users and sponsors on a regular basis

• Don’t promise to deliver when you know you can’t• Co-locate users with developers


Suggestions for Reducing Incomplete and Changing Requirements

• Develop and follow a requirements management process

• Use techniques such as prototyping, use case modeling, to get more user involvement

• Put all requirements in writing, keep them current and readily available

• Create a requirements management database for documenting and controlling requirements (CASE tools)


Suggestions for Reducing Incomplete and Changing Requirements

• Provide adequate testing and conduct testing throughout the project life cycle

• Review changes from a systems perspective– Project scope changes must include associated cost and

schedule changes– Focus on approved scope goals and don’t get side tracked

• Emphasize completion dates to help focus on what’s most important– What should we drop in order to add something new?

• Allocate resources specifically for handling change requests/enhancements.


Written

Well defined

Clearly understood

Achievable

Recap: The Four Commandments of Good Project Scope


ACTIVITY TWO:For your project according to the project charter,

Create the project WBSIn 1:00 Hour

Your Turn…

Introduction to Project Management

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