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Project Management

Asad Naveed, PMP

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Contents

Chapter Topic Chapter Topic

1 Introduction 8 Quality Management
2 Influences on Project Management 9 Resource Management
3 Role of Project Management 10 Communication Management
4 Integration Management 11 Risk Management
5 Scope Management 12 Procurement Management
6 Schedule Management 13 Stakeholder Management
7 Cost Management

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Introduction

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Olympic
Projects Games
Great Wall of China

Pyramids of
Giza

Taj Mahal

Polio Vaccine
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What is a Project?
 Set of inter-related activities
 Temporary Endeavour
 Unique Product, Service or Result
 Definite Beginning and End

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What is PMBOK?
 Generally Recognized.
 A standard is a formal
document that describes
established norms, methods,
processes, and practices.

 Provides Guidelines for

Managing Individual
Projects.
 Defines PM Life Cycle
and Related Processes.

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When Projects End?

 The project’s objectives have been achieved;
 The objectives will not or cannot be met;
 Funding is exhausted or no longer available for allocation to the project;
 The need for the project no longer exists (e.g., the customer no longer wants the
project completed, a change in strategy or priority ends the project, the
organizational management provides direction to end the project);
 The human or physical resources are no longer available; or
 The project is terminated for legal cause or convenience.

The temporary nature of projects indicates that a project has a definite beginning
and end. Temporary does not necessarily mean a project has a short duration.

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Projects Drive Change

 Projects drive change in organizations.
 A project is aimed at moving an organization
from one state to another state in order to
achieve a specific objective.

Organizational State Transition via a Project

The successful completion of a project results in

the organization moving to the future state and
achieving the specific objective.

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Projects enable business value creation

PMI defines business value as the net quantifiable benefit derived from a business endeavor

Trademarks

Monetary Assets

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Project Initiation Context

Projects are initiated in response to factors acting upon their organizations

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What is Project Management?

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

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Effective Project Management

 Meet business objectives;  Optimize the use of organizational
 Satisfy stakeholder expectations; resources;
 Be more predictable;  Identify, recover, or terminate failing
 Increase chances of success;
projects;
 Manage constraints (e.g., scope, quality,
 Deliver the right products at the
right time; schedule, costs, resources);
 Balance the influence of constraints on
 Resolve problems and issues;
the project (e.g., increased scope may
 Respond to risks in a timely manner;
increase cost or schedule);
 Manage change in a better manner.

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Poorly Managed Projects

 Failure in achieving the objectives for which the project was undertaken
 Missed deadlines
 Cost overruns
 Poor quality
 Rework
 Uncontrolled expansion of the project
 Loss of reputation for the organization
 Unsatisfied stakeholders

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Progressive Elaboration

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Project, Program, Portfolio and Operations Management

 A project may be managed in three separate scenarios:
 As a stand-alone project (outside of a portfolio or program),
 Within a program, or
 Within a portfolio.

 Program: A group of related projects managed in a coordinated manner to

obtain benefits not available from managing them individually.
 Programs are not large projects.

A very large project may be referred to as a megaproject. As a guideline, megaprojects

cost US $ 1 billion or more, affect 1 million or more people, and run for years.

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Projects, and Operations
Portfolio, Programs,

 Program and project management focus on doing programs and projects the “right” way
 Portfolio management focuses on doing the “right” programs and projects
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Program Example: New Communications Satellite System

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Portfolio Example Oil and Gas Projects

Airports Projects

Road and Rail Projects

Power Projects

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Program Management

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Operations Management
 It is an area that is outside the scope of formal project management.
 Operations management is concerned with the ongoing production of goods
and/or services.
 It ensures that business operations continue efficiently by using the
optimal resources needed to meet customer demands.

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Operations and Project Management

 Changes in business or organizational operations may be the focus of a project—

especially when there are substantial changes to business operations as a result
of a new product or service delivery.
 Ongoing operations are outside of the scope of a project; however, there are
intersecting points where the two areas cross.
 Projects can intersect with operations at various points during the product life
cycle, such as;
 When developing a new product, upgrading a product, or expanding outputs;
 While improving operations or the product development process;
 At the end of the product life cycle; and
 At each closeout phase.

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Organizational Project Management (OPM) And Strategies

Portfolios, programs, and projects are aligned with or driven by organizational

strategies and differ in the way each contributes to the achievement of
strategic goals:
 Portfolio management aligns portfolios with organizational strategies by
selecting the right programs or projects, prioritizing the work, and
providing the needed resources.
 Program management harmonizes its program components and controls
interdependencies in order to realize specified benefits.
 Project management enables the achievement of organizational goals and
objectives.

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Organizational Project
Management

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Interrelationship of PMBOK® Guide

Key Components in Projects

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PROJECT AND DEVELOPMENT LIFE CYCLES

Project Life Cycle Development Life Cycle
 The series of phases that a project passes  Within a project life cycle, there are generally
through from its start to its completion. one or more phases that are associated with the
 It provides the basic framework for development of the product, service, or result.
managing the project.  These are called a development life cycle and
 This basic framework applies regardless of they can be predictive, iterative, incremental,
the specific project work involved. adaptive, or a hybrid model.
 The phases may be sequential, iterative,
or overlapping.
 Project life cycles can be predictive or
adaptive.

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Development Life Cycles

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Predictive Life Cycles (Waterfall Method)

Predictive life cycles (also known as fully
plan-driven) are ones in which the project
scope, and the time and cost required to
deliver that scope, are determined as early in
the project life cycle as practically possible.

These projects proceed through a series of

sequential or overlapping phases, with each
phase generally focusing on a subset of project
activities and project management processes.

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Iterative and Incremental Life Cycles

 Iterative and incremental life cycles are ones in which project phases intentionally repeat one or
more project activities as the project team’s understanding of the product increases.
 Iterations develop the product through a series of repeated cycles, while increments successively
add to the functionality of the product.
 These life cycles develop the product both iteratively and incrementally.
 During an iteration, activities from all Project Management Process Groups will be performed.
 At the end of each iteration, a deliverable or set of deliverables will be completed.
 Future iterations may enhance those deliverables or create new ones.
 Each iteration incrementally builds the deliverables until the
exit criteria for the phase are met, allowing the project team to
incorporate feedback.

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Adaptive Life Cycles (Agile Methods)

 Adaptive life cycles (also known as change-driven or agile methods) are intended to respond to
high levels of change and ongoing stakeholder involvement.
 Adaptive methods are also iterative and incremental, but differ in that iterations are very rapid
(usually with a duration of 2 to 4 weeks) and are fixed in time and cost.

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Project Phases
The phases in a life cycle can be described by a variety of attributes like:
 Name (e.g., Phase A, Phase B, Phase 1, Phase 2, proposal phase),
 Number (e.g., three phases in the project, five phases in the project),
 Duration (e.g., 1 week, 1 month, 1 quarter),
 Resource requirements (e.g., people, buildings, equipment),
 Entrance criteria for a project to move into that phase (e.g., specified
approvals documented, specified documents completed), and
 Exit criteria for a project to complete a phase (e.g., documented approvals,
completed documents, completed deliverables).

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Examples of Phase Names

Projects may be separated into distinct phases or subcomponents. These phases or subcomponents
are generally given names that indicate the type of work done in that phase. Examples of phase
names include but are not limited to:

 Concept development,  Build,

 Feasibility study,  Test,
 Customer requirements,  Transition,
 Solution development,  Commissioning,
 Design,  Milestone review, and
 Prototype,  Lessons learned.

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Phase Gate
A phase gate, is held at the end of a phase. The project’s performance and
progress are compared to project and business documents including:

 Project business case,

 Project charter,
 Project management plan,
 Benefits management plan.
A decision (e.g., go/no-go decision) is made as a result of this comparison to:
 Continue to the next phase,
 Continue to the next phase with modification,
 End the project,
 Remain in the phase, or
 Repeat the phase or elements of it.
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Project Management Processes

The project life cycle is managed by executing a series of project management
activities known as project management processes.
 Every project management process produces one or more outputs from one or
more inputs by using appropriate project management tools and techniques.
 The output can be a deliverable or an outcome.

Inputs T&T Outputs

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Process Iterations and Interactions

Processes used once or at predefined points in the project
• The processes Develop Project Charter and Close Project or Phase are examples.

Processes that are performed periodically as needed

• The process Acquire Resources is performed as resources are needed. The process
Conduct Procurements is performed prior to needing the procured item.

Processes that are performed continuously throughout the project

• The process Define Activities may occur throughout the project life cycle, especially
if the project uses rolling wave planning or an adaptive development approach. Many
of the monitoring and control processes are ongoing from the start of the
project, until it is closed out.

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PM Process Groups (PG)

A Project Management Process Group is a logical grouping of project management processes to achieve
specific project objectives. Process Groups are independent of project phases. Project management processes
are grouped into the following five Project Management Process Groups:

• Define a new project or a new phase of an

Initiating PG
existing project

• Establish the scope of the project, refine the

Planning PG
objectives, and define the course of action

• Complete the work defined in the PMP to

Executing PG
satisfy the project specifications.

Monitoring and • Track, review, and regulate the progress and

Controlling (M&C) PG performance of the project

• Formally complete or close the project,

Closing PG
phase, or contract.

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PM Process Groups and Knowledge Areas

Project Schedule Management

Project Resource Management

Project Stakeholder Management

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PM Process Group and

Knowledge Area Mapping

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Project Information
Work • The raw observations and measurements
Performance identified during activities performed to carry out
Data (WPD) the project work.

Work
• The performance data collected from various
Performance
controlling processes, analyzed in context and
Information integrated based on relationships across areas.
(WPI)

Work • The physical or electronic representation of WPI

compiled in project documents, intended to
Performance generate decisions or raise issues, actions, or
Reports (WPR) awareness.
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Examples: Reported percent of work physically

completed, quality and technical performance
measures, start and finish dates of schedule
Project Data, Information

activities, number of change requests, number of

defects, actual costs, actual durations, etc.
and Report Flow

Examples: Status of deliverables,

implementation status for change requests,
and forecasted estimates to complete.

Examples: Status reports, memos,

justifications, information notes, electronic
dashboards, recommendations, and updates.

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WPD vs WPI vs WPR

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Tailoring

 PMs apply a project management methodology

to their work.
 Methodology: A system of practices,
techniques, procedures, and rules used by those
who work in a discipline.
 PMBOK guide is not a methodology.

“Good practice” does not mean that the knowledge described should always be
applied uniformly to all projects.

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Project Management Business Documents

The project manager needs to ensure that the project management approach
captures the intent of business documents. These two documents are
interdependent and iteratively developed and maintained throughout the life
cycle of the project.

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and Critical Business/Project Documents
Interrelationship of Needs Assessment

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• A statement of the recommended option to

Project Business Case pursue in the project;
• Items to include in the statement may
• Determination of what is prompting the need for action;
• Business problem or opportunity to be addressed
include:
• Analysis results for the potential option;
including the value to be delivered to the organization;
• Constraints, assumptions, risks, and
• Identification of stakeholders affected;
dependencies for the potential options;
• Identification of the scope
• Success measures.

Analysis of
Business
the
needs
situation

• Identification of organizational strategies, Recomme

goals, and objectives; Evaluation
ndation
• Identification of root cause(s) of the
Statement describing the plan for measuring benefits
problem or main contributors of an
the project will deliver. This should include any
opportunity;
ongoing operational aspects of the recommended
• Gap analysis of capabilities needed for the
option beyond initial implementation.
project versus existing capabilities of the
organization;
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PROJECT BENEFITS MANAGEMENT PLAN

The project benefits management plan is the document that describes how and when the benefits of
the project will be delivered, and describes the mechanisms that should be in place to measure those
benefits.
 Target benefits (e.g., the expected tangible and intangible value to be gained by the
implementation of the project; financial value is expressed as net present value);
 Strategic alignment (e.g., how well the project benefits align to the business strategies of the
organization);
 Timeframe for realizing benefits (e.g., benefits by phase, short-term, long-term, and
ongoing);
 Benefits owner (e.g., the accountable person to monitor, record, and report realized benefits
throughout the timeframe established in the plan);
 Metrics (e.g., the measures to be used to show benefits realized, direct measures, and indirect
measures);
 Assumptions (e.g., factors expected to be in place or to be in evidence); and
 Risks (e.g., risks for realization of benefits).

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Project Charter and Project Management Plan

 The project charter is defined as a document issued by the project sponsor that formally
authorizes the existence of a project and provides the PM with the authority to apply
organizational resources to project activities.
 The project management plan is defined as the document that describes how the project will
be executed, monitored, and controlled.

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PROJECT SUCCESS MEASURES

One of the most common challenges in project management is determining
whether or not a project is successful.
 More recently, practitioners and scholars have determined that project success should also be
measured with consideration toward achievement of the project objectives.
 Project stakeholders may have different ideas as to what the successful completion of a project
will look like and which factors are the most important.

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Project Success: Additional Criteria

 Completing the project benefits management plan;
 Meeting the agreed-upon financial measures documented in the business case (NPV, ROI, IRR,
PBP, BCR).
 Meeting business case nonfinancial objectives;
 Completing movement of an organization from its current state to the desired future state;
 Fulfilling contract terms and conditions;
 Meeting organizational strategy, goals, and objectives;
 Achieving stakeholder satisfaction;
 Acceptable customer/end-user adoption;
 Integration of deliverables into the organization’s operating environment;
 Achieving agreed-upon quality of delivery;
 Meeting governance criteria; and
 Achieving other agreed-upon success measures or criteria (e.g., process throughput).

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Responsibilities and Competencies of PM

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Project Constraints
 Time, cost, risk, scope, quality,
resources, or any other factors that
limit options, such as customer
satisfaction.
 Examples of constraints may include
the date a milestone or the project
must be completed or the maximum
allowable risk a project may have.

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I 1
Project Life Cycle for a Large Project
P
C 6
PM Process Groups 5
2
7
3
M&C E
4
Research Design Code Test Transition
Key:

I I I I I I: Initiating
1 1 1 1 1
P: Planning
C
P
C
P
C
P
C
P
C
P E: Executing
6 6 6 6 6
5 2 5 2 5 2 5 2 5 2
M&C: Monitoring &
7 7 7 7 7 Controlling
M 3 M 3 M 3 M 3 M 3
&C
E
&C
E
&C
E
&C
E
&C
E C: Closing
4 4 4 4 4

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Typical ITTOs EJ, Mtgs, PMIS,

DG (Data Gathering)
DR (Data
PMP Representation)
PDs PMP, PD, CR, WPD,
DA (Data Analysis)
Others WPI, Others, PMP
DM (Decision Making)
EEF Updates, PD Updates
IPTS (Interpersonal and
OPA Team Skills)
Others
Doc/Technique Components Examples
PMP SMP, ReMP, SchMP, CMP, QMP, PIP, ReMP, CmMP, RMP, PrMP, SHEP, ChMP, CfMP
Data Gathering Brainstorming, Interviews, Focus Groups, Q&S, Bench Marking
Data Analysis Alternatives Analysis, Cost Benefit Analysis, Document Analysis, Earned Value Analysis, IBC,
PR, Root Cause Analysis, Trend Analysis, Variance Analysis, What-If-Scenario-Analysis
Decision Making Voting, ADM, Multi Criteria Decision Analysis
Data Representation Affinity Diagram, MM, SHEAM
IPTS Active Listening, CA, CM, CSA, DM, EI, Facilitation, Influencing, Leadership, MM,
Motivation, NGT, Negotiations, Networking, O&C, PA, Prot, Team Building53 1-53

Project Documents
Activity Quality metrics
Forecasts (Fc) Issue log (IL)
attributes (AA) (QM)

Activity cost Duration Quality

Milestone list
estimates estimates checklists
(ML)
(ACE) (ADE) (Chk)

Quality control
Activity list Performance
Contracts measurements
(AL) reports (PR)
(QCM)

Project funding Project

Assumption
Charter (PC) requirements organizational
log (AsL)
(PFR) structure

Procurement
Basis of Change log
Proposals documents
estimates (BE) (CL)
(PrD)

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Project Documents
Responsibility Stakeholder
Stakeholder
assignment matrix management
analysis (SHA)
(RAM) strategy

Requirements
Source selection Stakeholder
traceability matrix
criteria (SSC) register (SHR)
(RTM)

Resource
Stakeholder Work performance
breakdown Sellers list (SL)
requirements measurements
structure (RBS)

Roles and
Resource calendars Statement of work Work performance
responsibilities
(RC) (SoW) information (WPI)
(R&R)

Resource
Teaming Team performance
requirements Risk register (RR)
agreements assessments (TPA)
(RRe)

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PM Knowledge Areas and PG Mapping

Sr. PM Knowledge PM Process Groups
No. Areas Initiating Planning Executing M&C Closing
4 Integration 1 1 2 2 1
5 Scope 4 2
6 Schedule 6 1
7 Cost 3 1
8 Quality 1 1 1
9 Resource 1 3 1
10 Communication 1 1 1
11 Risk 5 1 1
12 Procurement 1 1 1
13 Stakeholder 1 1 1 1
Total (49) 2 24 10 12 1

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PM Process Groups
Sr. No. PM KA
Initiating Planning Executing M&C Closing
D&M Proj Work M&C Proj Work
4 Integ Dev PC Dev PMP CPP
Mng Proj Know Perf ICC
Knowledge Area Mapping

Plan SM
PM Process Group and

Coll Req Val Scope

5 Scope
Def Scope Cont Scope
Create WBS
Plan Sch Mgt
Def Act
6 Schedule Seq Act Cont Sch
Est Act Dur
Dev Sch
Plan CM
7 Cost Est Costs Cont Costs
Det Budget
8 Quality Plan QM Mng Quality Cont Quality
Acq Res
Plan ReM
9 Resource Dev Team Cont Res
Est Act Res
Mng Team
10 Comm Plan Comm Mgt Mng Comm Mon Comm
Plan RM
Id Risks
11 Risk Perf Qual RA Imp RR Mon Risks
Perf Quant RA
Plan RR
12 Proc Plan Proc Mgt Cond Proc Cont Proc
13 SH Id SH Plan SH Eng Mng SH Eng Mon SH Eng
Total (49) 2 24 10 12 1 1-57

Important Terms
Process, Project Team, PM Process Groups, PM Knowledge Areas,
Tailoring, Project Boundaries, WPD, WPI, WPR

References to PMBOK Ch 3 Figures: 3.4, 3.5

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