PROJECT MANAGEMENT 2011 Chapter 1 Introduction to Project Management 1-1 1.

PROJECT MANAGEMENT

2011

Chapter 1

Introduction to Project Management1-11

Learning Objectives

After Completion you will be able to:

• Define what a project is and is not• Define project management• Understand the history of project management• Understand the skills necessary to lead projects• Understand the organizational structures where

projects exist

1-2

History of Project Management

• People have worked on and created many historical places and remarkable inventions for centuries without naming their activities as projects.

• The modern project management began with the Manhattan Project, which the U.S. military led to develop the atomic bomb in World War II.

• Until 1980`s, project management primarily focused on providing schedules and resource data to top management in the military, construction and computer industries.

1-3


• By the 1990s, virtually every industry was using some form of project management.

• Today`s project management involves much more, and people in every industry and every country manage projects.

• Businesses regularly use project management to accomplish unique outcomes with limited resources and under critical time constraints.

1-4


• New technologies and the interdisciplinary global work team have radically changed the work environment and thus, the project management have become a significant factor in many businesses.

• The use of project management, specifically in the service sector to achieve organization`s goals, is even more common. Nowadays, advertising campaigns, voter registration drives, political campaigns, a family`s annual summer vacation, and even the seminars are organized as projects

1-5

Some of the well known projects

• Grate pyramids of Egypt• Pacific Railroad• Hoover Dam• Manhattan Project• Space program

Some of the well known projects

SO M E P R O J E C T S

what is a project

A Project is “a temporary endeavor undertaken to create a unique product, service, or result``.

Project Attributes

• A project has a unique purpose

• A Project is temporary

• A Project is developed using progressive elaboration

• A Project requires resources

• A Project should have a primary customer or sponsor

• A project involves uncertainty

PROJECT ATTRIBUTES

a)A project has a unique purpose

Every project should have a well defined objectives since a project exist to achieve some specific outcomes. For example: To improve a business process, create a specific product or achieve a specific skill.

The purpose of a project is defined by the project requirements.

b) A Project is temporary

A project should have limited time spans: That is, a project has a start date and a deadline date (End date) for completion.

PROJECT ATTRIBUTES

c) Projects are often defined broadly when they begin, and as time passes. The specific details of the project become clearer. A project team should develop initial plans and then update them with more detail based on new information.

d) A Project requires resources,

Resources include people, machinery, budget and other assets. Resources however, are limited and must be used effectively to meet project and other corporate goals.

PROJECT ATTRIBUTES

e) A Project should have a primary customer or sponsor.

A sponsor usually provides the direction and funding for the project. (Project Sponsor role is different from the Project Stakeholders )

f) A Project involves uncertainty

Because every project is unique, it is sometimes difficult to define its objectives clearly, estimate how long it will take to complete, or determine how much it will cost. External factors also cause project uncertainty.

The uncertainty is one of the main reason Project Management is so challenging especially on projects involving new technologies.

The Triple Constraints

Of Project Management

Every project is constrained in different ways by its:

Scope goals: What work will be done as part of the project?

Time goals: How long should it take to complete?

Cost goals: What should it cost to complete the project ?

These limitations are sometimes referred to as the Triple Constraints.

• It is the Project Manager’s duty to balance these three often-competing goals in order to create a successful project.

13

The Triple Constraint of Project Management


OF Project Management

.

• Managing the triple constraints involves making trade-offs between scope, time,

and cost goals for a project.

For example, you might need to increase the Budget for a project to meet Scope and Time goals.

You might have to reduce the Scope of a project to meet Time and Cost (Budget) goal.

Experienced project managers know that you must decide which aspect of the triple constraint is most important.

If Time is most important : Most often the initial project scope and/or Cost goals need to be changed to meet the project schedule..

If Scope goals are most important, then the time and /or Cost goals need to be adjusted


Of Project Management

• The Triple Constraint describes how the basic elements of a project i.e. Scope, Time and cost interrelate. However there are other elements such a : Quality, Customer satisfaction and Sponsor satisfaction that can also play significant roles.

• The Quadruple Constrains of Project Management which includes `Quality` as well as Scope, Time, and Cost is also gaining acceptance in the project management.

The Quadruple Constrains of Project Management

1-16

The Triple ConstraintsOf Project Management

• There is a common belief that the Quality considerations , including Customer and/or

Sponsor satisfaction , must be inherent in the setting the Project Scope, Time, and Cost goals of a project.

• A project team may meet Scope, Time and Cost Goals but fail to meet quality standards or satisfy their sponsor, if they have not adequately addressed these constraints .

e.g. A Project team may have completed the work on time and within the cost constraint, but the quality may have been unacceptable.

A Project manager should be communicating with the project sponsor throughout the project to make sure that the project meets the sponsor `s expectation.

The Triple ConstraintsOf Project Management

• How can you avoid the problems that occur when meeting Project Scope, Time, and Cost goals, but lose sight of quality or customer satisfaction?

The answer is through a `Good Project Management`, which includes more than meeting the triple constraint,

What is Project Management

• Project management is “the application of knowledge, skills, tools and techniques to project activities to meet project requirements.”

• Project managers must not only strive to meet specific scopes, time, cost, and quality goals of projects they must also facilitate the entire process to meet the needs and expectations of the people involved in or affected i.e. `Stakeholders` by project activities.

1-19

Project Management Framework

1-20

Key Project Management Framework Elements

• The key elements of Project management framework include:

Project Stakeholders Project Management Knowledge areas Project Management Tools and Techniques Contribution of Successful Projects to the Enterprise

1-21


a) Project Stakeholders

Stakeholders are the people involved in or affected by project activities and include the :

Project sponsor, Project team, Project Support staff, Customers Users, Suppliers Opponents of the project

The Stakeholders often have very interests. Stakeholders` needs and

expectations are important in the beginning and throughout the life of a

project.

Successful Project managers should develop good relationships with

stakeholders to understand their needs and expectations.

.


b) Project Management Knowledge Areas.

Knowledge areas describe the key competencies that project managers must develop.

Project Managers must have knowledge and skills in both the Four Core Knowledge areas as well as in the four Facilitating Knowledge areas plus in the Overarching knowledge area.

The Four Core Knowledge Areas that lead to specific

project objectives are:

1. Scope management 2. Time management3. Cost management,4. Quality Management.


1) Scope Management Project Scope management involves defining and managing all the

work required to complete the project successfully.

2) Time Management Includes estimating how long it will take to complete the work,

developing and acceptable project schedules , and ensuring timely completion of the project.

3) Cost Management Consists of preparing and managing the budget for the project

4) Quality Management Ensures that the project will satisfy the stated or implied needs for

which it was undertaken.


b) Project Management Knowledge Areas.

The Four Facilitating Knowledge Areas are the means through which the project objectives are achieved :

1. Human Resources Management, 2. Communication Management, 3. Risk Management, 4. Procurement Management. Plus

Project Integration Management, (the ninth knowledge area which is an overarching area that affects and is affected by all of the other knowledge areas.


1. Project Human Resources Management

Is concerned with making effective use of people involved with the project.

2. Project Communication Management

Involves generating, collecting, disseminating , and storing project information.

3. Project Risk Management

Includes identifying, analyzing and responding to the risk related to project

4. Project Procurement Management

Involves acquiring or procuring goods and services for a project from outside the performing organization.

Project Management Tools and Techniques

• Project Management Tools and Techniques assist project managers and their teams in various aspects of project management.

• Specific tools and techniques include: Project charters, Scope statements, and WBS (For scope Mgmt). Gantt charts, Network diagrams, Critical Path Analyses, Critical Chain

Scheduling (For Time Management area). Cost estimates and earned value management (For Cost

Management area)

There are other tools used specifically in different Knowledge areas,.1-27

28

Sample Gantt Chart

The WBS is shown on the left, and each task’s start and finish datesare shown on the right. Early Gantt charts were drawn by hand.

Work Breakdown Structure (WBS)

29

Sample Network Diagram

Each box is a project task from the WBS. Arrows show Dependenciesbetween tasks. The bolded tasks are on the critical path. If any task on the critical path takes longer to complete than planned, the whole project will slip unless something is done.

Project Success

• Project Management has a number of advantages. However it is not a silver bullet that guarantees success on all projects.

• Project Management is a very broad and often very complex discipline. What works on one project may not work on another.

• It is essential for Project managers to: Continue to develop their knowledge and skills in managing projects.

• Learn from the mistakes and success of others

1-30

Project Success

There are several ways to define Project success.

• A project is considered to be successful if it accomplishes one of the following criteria:

a) Met its scope, time and cost goals

Several critics raised for this simple definition of project success and the methods used for collecting data.

Project Success

b) Satisfied the customer / sponsorThe customer/sponsor might not be satisfied with the important aspect of the project despite the fact that project

met its scope, time and cost goals In this event , the project would be deemed a failure.• Conversely. A project might not meet initial scope, time and cost

goals, but the customer could still be very satisfied.• Many organizations implemented a Customer Satisfaction Rating

System to measure project success instead of only tracking scope, time and cost performance.

c) A project may be considered successful by the Sponsor should the result of the project met its main objectives, such as saving money,

resulting in a good Return On Investment (ROI) or simply making sponsor happy regardless of other factors involved (i.e. scope, time and cost factors)/

33

Project Success Factors

1. Executive support

2. User involvement

3. Experienced project manager

4. Clear business objectives

5. Minimized scope

6. Standard software infrastructure

7. Firm basic requirements

8. Formal methodology

9. Reliable estimates

10. Other criteria, e.g. Milestones,

proper planning, competent staff, ownership.

Project Success

• Project Managers play an important role in making projects and therefore organizations, successful.

• Project Managers work with the project sponsors, project team, and other stakeholders involved in a project to meet project goals.

• Good project managers do not assume that their definition of success is the same as the sponsors`. They take the time to understand their sponsors` expectations and then track project performance based on important success criteria.

35

The Role of the Project Manager

• A Project Manager (PM) can have many different job descriptions, which can vary tremendously by industry, organization and by project. However, there are similar tasks such as planning, scheduling, coordinating, and working with people to achieve project goals.

• Job descriptions vary, but most include responsibilities such as planning, scheduling, coordinating, and working with people to achieve project goals.

• Remember that 97 percent of successful projects were led by experienced project managers.

36

• Define scope of project.

• Identify stakeholders, decision-makers, and escalation procedures.

• Develop detailed task list (work Breakdown Structures).

• Estimate time requirements.

• Develop initial project management flow chart.

• Identify required resources and budget.

• Evaluate project requirements.• Identify and evaluate risks.• Prepare contingency plan.• Identify interdependencies.• Identify and track critical

milestones.• Participate in project phase

review.• Secure needed resources.• Manage the change control

process.• Report project status.

Job Functions of Project Management

.

37

General Skills for Project Managers

• Project Managers need a wide variety of skills and be able to decide which particular skills are more important in different situations.

General Skills (Skills that are needed regardless of organization

and project environments)

Understanding change, and be comfortable leading and handling change, since projects naturally introduce changes .

Understand the organization in which they work and how that organization develops products and provides services.

Managerial Knowledge and Skills For Project Managers

• Financial Management • Accounting• Procurement• Sales• Marketing• Contracts• Manufacturing• Distribution• Logistics• Supply Chain

• Strategic Planning• Tactical Planning• Operational Planning• Organizational Structure and

behavior• Personnel Administration• Compensations• Benefits• Career Path• Health and safety procedures.

38

39

Managerial Knowledge and Skills For Project Managers

It will be critical for the project manager to have a lot of experience in one or several of general management area knowledge and skills on some projects.

On other projects, the project manager can delegate detailed responsibility for some of his/her responsibility areas to team members, or project support staff .

In case of delegation:

The project manager must be intelligent and experienced enough to know which managerial areas are most important and who is qualified to do the work.

Project manager must make and / or take responsibility for all key project decisions.

40

Hard and Soft Skills for Project Managers

• Project managers also need “Hard” and “Soft” skills to achieve high performance on projects..

Soft skills

Otherwise called Human Relations Skills include: • Effective Communication• Influencing the organization (To get thing done)• Leadership• Motivation• Negotiation• Conflict Management• Problem solving• Coping Skills

41


Soft skills (Continued)

Why do Project managers need Soft Skills?

Project managers need soft skills is to understand , navigate, and meet stakeholders needs and expectation, project managers need to lead, communicate, negotiate, solve problems and influence the organization at large.

Managers need to be able to listen actively to what others are saying. Help develop new approaches for solving problems, and persuade others to work toward achieving project goals.

PM must lead project teams by providing vision, delegating work, creating an energetic and positive environment, and setting an example of effective behavior.

42


Why do Project managers need Soft Skills? (Continued)

PM focus on Teamwork skills to employ people effectively

PM need to motivate different types of people and develop esprit de corps within the project team and with other project stakeholders.

PM also needs strong Coping skills to maintain their sanity and reduce stress levels to cope with criticism and constant change, since project work involve changes and trade-offs between competing goals

PM must be flexible, creative, and sometimes patient in working toward project goals.

43


Hard Skills

PM needs hard skills such as Product knowledge and knowing how to use various Project Management tools and techniques.

Due to the nature of the work; PMs make many decisions and deal with people in a wide variety of disciplines, so it helps tremendously to have a project6 manager who is confident in using the special tools and techniques that are the most effective in particular settings.

PMs do not normally have to be experts on any specific technology, but they have to know enough to build a strong team and ask the right questions to keep things on track.

44


For example;

PM for large IT projects do not have to be experts in the field of IT, but they must have working knowledge of various technologies and understand how the project would enhance the business.

45

Project Managers Skills Summary

Skills Summary

• All Project Managers should continue to develop their knowledge and experience in Project Management, General management, Soft skills and Hard Skills

(i.e. the industry knowledge they support).

• IT Project Manager in particular must be willing to develop their business and soft skills, besides their technical skills in order to be productive team members and successful Project Managers.

Project Managers Skills Summary

Soft skills:

Leadership (Set examples, provide vision (big picture), delegate, positive, energetic)

Team building (Show empathy, motivate, promote esprit de corps)

Negotiation Conflict management Organization for self and others

(Plan, set goals, analyze). Communication both oral and written to

both technical and non-technical audiences Change management Active listening Coping Skills (Flexible, creative, patient,

persistent).

1-46

Technical Skills:

• Project Management software

• Level of understanding of the technology being used in the project

• Basic knowledge of the business

• Cost estimating and budgeting

47

Ten Most Important Skills For Project Managers

Project management experts from various industries were asked to identify the ten most important skills for effective Project Managers in a recent study.

1. People skills

2. Leadership

3. Listening

4. Integrity, ethical behavior, consistent

5. Strong at building trust

6. Strong at building teams

7. Verbal communication

8. Conflict resolution, conflict management

9. Critical thinking. Problem solving

10. Understands, Balances priorities

48

Most Important Skills and Competencies For PM

PM experts also asked what skills and competences were most important invarious project situations:. Note the emphasis on people and leadership skills .

Large Projects Leadership People skills Relevant prior experience Planning Verbal communication Team building skills

High Uncertainty Projects

Risk Management Expectation Management Leadership People skills Planning skills

Very Novel Projects

Leadership People skills Having visions and goals Self confidence Expectation Management Listening skills

49

Most Important Skills and Competencies

• All PMs especially those working on technical projects, need to demonstrate Leadership and Management skills.

• Leadership and Management are terms often used interchangeable, although there are differences.

• A Leader focus on long-term goals and big-picture objectives, while inspiring people to reach those goals.

• A Manager deals often deals with the day-to-day details of meeting specific goals.

50

Most Important Skills and Competencies

• There are a few sayings to distinguish Leaders and Managers: - Leaders lead people, and Managers manage people.

- Managers do thing right, and Leaders do the right things. - Leaders determine the vision, and Managers achieve the vision.

• Good PMs know that people make or break projects, so they must set a good example to lead their team to success.

• Project Managers often take on the role of both Leader and Manager.

• The best project Managers have leadership and management characteristics; they are visionary yet focused on the bottom line to achieve positive results.

WHY PROJECT MANAGEMENT IS IMPORTANT?

Organizations are forced into heavy investments on very

large, complex and technically challenging projects in various public and private sectors as a result of increased demand for higher quality products and better services, plus the fierce competition among the multi-national organizations.

Successful completion of very large, complex and multi-national projects depend entirely on the use of formal project management practices and “Professional” Project Managers.

Advantages of Using Formal Project Management Practices

Improvement in customer satisfaction Better cost performance, higher Return On Investment (ROI) Better schedule performance, allocation of time commitments,

and utilization of resources, higher productivity Increased quality and thus reducing re-work Increase in delivering required features Will make everyone happier (stakeholders, team members,

management …)

1-52

53

Project Management Office (PMO)

• A Project Management Office (PMO) is an organizational group responsible for coordinating the Project Management function throughout an organization.

• Possible goals of PMO include: Collect, organize, and integrate project data for the entire organization. Develop and maintain templates for project documents. Develop or coordinate training in various Project management topics. Develop and provide a formal career path for Project Managers. Provide Project Management consulting services. Provide a structure to house Project Managers while they are acting in

those roles or are between projects.

54

Program and project portfolio management

• Projects make up a portion of work in most business organizations or enterprise, and successfully managing those projects is crucial to enterprise success.

• Two important concepts that help Projects meet enterprise goals are the use of:

• Programs Management• Project Portfolio Management

55


Program Management

• A Program is a group of related projects managed in a coordinated way to obtain benefits and control not available from managing them individually.

• A Program Manager provides :

• Leadership and direction for the Project Managers heading the projects

within the Program.• Coordinate the efforts of Project teams, functional groups. Suppliers,

and operation staff supporting the projects to ensure that projects and processes are implemented to maximize benefits.

56


Program Management (Continued)

• Program Manager s Responsibilities :• Delivery of project results• Responsible for the success of products and processes produced by those projects

• Program Managers often have review meetings with all Project Managers to

share important information and coordinate important aspects of each project.• Many Program Managers worked as Project Managers earlier in their careers.• Effective Program Managers recognize that managing a program is much more

complex than managing a single project.

• Program Managers must realize that it is not enough to have technical and project management skills but possess strong business knowledge , leadership capabilities, and communication skills.

57


Project Portfolio Management

• In many organizations, Project Managers also support an emerging business strategy of Project Portfolio Management also called Portfolio Management, in which organizations group and manage projects and programs as a portfolio of investments that contribute to entire enterprise`s success.

• Portfolio Managers help their organizations make wise investment decisions by helping to select and analyze projects from a strategic perspective.

• Project Portfolio Management allows Top Management of an organization to view and manage all projects at an enterprise level.

58


• Portfolio Managers may or may not have previous experience as project or program managers. It is most important that they have strong financial and analytical skills ,and understand how projects and programs can contribute to meeting strategic goals.

Project Management compared to Project Portfolio Management

• One main distinction is a focus on meeting Tactical Goals and Strategic Goals. Tactical goals are generally more specific and short-term than Strategic goals, which emphasize long-term goals of organization.

• Individual project often address tactical goals, where Portfolio Management address strategic goals.

• Many organizations use a more disciplined approach to Portfolio Management by developing guidelines and Software tools to assist in Project Portfolio Management.

59

ENTERPRISE PROJECT MANAGEMENT SOFTWARE

• Enterprise Project Management software integrates information from multiple projects to show the status of active, approved, and future projects across an entire organization.

• It also provides links to more detailed information on each project.

• Many managers like to see status in color – red, yellow, and green.

60

The Project Management Profession

• Project Management Institute (PMI) is an international professional society for Project Managers.

• The members of PMI are from different fields such as Engineering, Financial Services, Health care etc. However a large percentage of PMI members work in IT field.

• Project Management research and certification programs continue to grow.

61

Project Management Certification

• PMI provides certification as a Project Management Professional (PMP).

• A Project Management Professional is someone who has documented sufficient project experience and education, agreed to follow the PMI code of professional conduct (ethics), and demonstrated knowledge of the field of project management by passing a comprehensive examination.

• Many employers today require specific certifications to ensure their workers have current skills, and job seekers find that they often have an advantage when they earn and maintain marketable certifications.

• According to a recent survey, average salary for workers in project management were among the highest for all IT specialists. IT Workers with a PMP certification earn amongs the highest salaries for all IT workers who held professional certifications.

62

Ethics in Project Management

• Ethic is a set of principles that guide our decision making based on personal values of what is right and wrong.

• Making ethical decisions is an important part of our personal and professional lives because it generates trust and respect with others people.

• Project managers often face ethical dilemmas.• It is vital for project management practitioners with or without a PMP to

conduct their work in an ethical manner.

• In order to earn PMP certification, applicants must agree to the PMP code of professional conduct.

• Several questions on the PMP exam are related to professional responsibility, including ethics.

WHY IT Projects Are Different

• Traditionally high turnover rates of IT workers• Level of uniqueness and complexity of each project

due to the rapid changes in technology• Software is hard to visualize by the developer let

alone the customer• Difficulty in getting accurate customer requirements• Rate of change in requirements• Difficulty in testing all the possible states of software • Constant training needed to keep team members

current with the technology

1-63

PROJECT MANAGEMENT 2011 Chapter 1 Introduction to Project Management 1-1 1.

Documents

Transcript of PROJECT MANAGEMENT 2011 Chapter 1 Introduction to Project Management 1-1 1.