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Project Management
Project Management
Project management is the discipline of initiating, plan- to systematically apply project management tools and
ning, executing, controlling, and closing the work of a techniques to complex engineering projects.* [8]
team to achieve specic goals and meet specic success
criteria. A project is a temporary endeavor designed to
produce a unique product, service or result with a dened beginning and end (usually time-constrained, and
often constrained by funding or deliverables) undertaken
to meet unique goals and objectives, typically to bring
about benecial change or added value.* [1]* [2] The temporary nature of projects stands in contrast with business
as usual (or operations),* [3] which are repetitive, permanent, or semi-permanent functional activities to produce products or services. In practice, the management
of these two systems is often quite dierent, and as such
requires the development of distinct technical skills and
management strategies.* [4]
The primary challenge of project management is to
achieve all of the project goals and constraints.* [5] This
information is usually described in a user or project manual, which is created at the beginning of the development.
The primary constraints of many things.* [6] The secondary and more ambitious challenge is to optimize
the allocation of necessary inputs and integrate them to
meet pre-dened objectives.
History
As a discipline, project management developed from several elds of application including civil construction, engineering, and heavy defense activity.* [9] Two forefathers of project management are Henry Gantt, called the
father of planning and control techniques,* [10] who is famous for his use of the Gantt chart as a project management tool (alternatively Harmonogram rst proposed by
Karol Adamiecki* [11]); and Henri Fayol for his creation
of the ve management functions that form the foundation of the body of knowledge associated with project
and program management.* [12] Both Gantt and Fayol
were students of Frederick Winslow Taylor's theories of
scientic management. His work is the forerunner to
modern project management tools including work breakdown structure (WBS) and resource allocation.
2
mal techniques and tools. At that time, two mathematical
project-scheduling models were developed. The "Critical
Path Method" (CPM) was developed as a joint venture between DuPont Corporation and Remington Rand
Corporation for managing plant maintenance projects.
And the "Program Evaluation and Review Technique" or
PERT, was developed by the United States Navy in conjunction with the Lockheed Corporation and Booz Allen
Hamilton as part of the Polaris missile submarine program.* [14]
PERT and CPM are very similar in their approach but still
present some dierences. CPM is used for projects that
assume deterministic activity times; the times at which
each activity will be carried out are known. PERT, on
the other hand, allows for stochastic activity times; the
times at which each activity will be carried out are uncertain or varied. Because of this core dierence, CPM and
PERT are used in dierent contexts. These mathematical
techniques quickly spread into many private enterprises.
2 APPROACHES
formed in the USA.* [17] PMI publishes A Guide to
the Project Management Body of Knowledge (PMBOK
Guide), which describes project management practices
that are common to most projects, most of the time.
PMI also oers multiple certications.
2 Approaches
There are a number of approaches for managing project
activities including lean, iterative, incremental, and
phased approaches.
Regardless of the methodology employed, careful consideration must be given to the overall project objectives,
timeline, and cost, as well as the roles and responsibilities
of all participants and stakeholders.
2.3
2.2
PRINCE2
3
PRINCE2 provides a common language for all participants in the project. The governance framework of
PRINCE2 its roles and responsibilities are fully described and require tailoring to suit the complexity of the
project and skills of the organisation.* [22]
agement released in 1996 as a generic project management method.* [21] It combines the original PROMPT
methodology (which evolved into the PRINCE methodology) with IBM's MITP (managing the implementation
of the total project) methodology. PRINCE2 provides
a method for managing projects within a clearly dened
framework.
PRINCE2 focuses on the denition and delivery of products, in particular their quality requirements. As such, it
denes a successful project as being output-oriented (not
activity- or task-oriented) through creating an agreed set
of products* [22] that dene the scope of the project and
provides the basis for planning and control, that is, how
then to coordinate people and activities, how to design
and supervise product delivery, and what to do if products
and therefore the scope of the project has to be adjusted
if it does not develop as planned.
In the method, each process is specied with its key inputs
and outputs and with specic goals and activities to be
carried out to deliver a project's outcomes as dened by
its Business Case. This allows for continuous assessment
and adjustment when deviation from the Business Case is
required.
The project plan should typically undergo resource leveling, and the longest sequence of resource-constrained
tasks should be identied as the critical chain. In some
cases, such as managing contracted sub-projects, it is advisable to use a simplied approach without resource leveling.
In multi-project environments, resource leveling should
be performed across projects. However, it is often enough
to identify (or simply select) a singledrum. The drum
can be a resource that acts as a constraint across projects,
which are staggered based on the availability of that single
resource.
One can also use avirtual drumby selecting a task or
group of tasks (typically integration points) and limiting
the number of projects in execution at that stage.
2 APPROACHES
2.5
an
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weeks
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ati
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Acceptance Test
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It is the most consistent project management technique since it involves frequent testing of the project
under development.
se
ea
tive approaches based on the principles of human interaction management and founded on a process view of human collaboration. Agile-based methodologies aremost
typicallyemployed in software development as well as
thewebsite, technology, creative, and marketing industries.* [23] This sharply contrasts with traditional approaches such as the Waterfall method. In agile software
development or exible product development, the project
is seen as a series of relatively small tasks conceived and
executed to conclusion as the situation demands in an
adaptive manner, rather than as a completely pre-planned
process.
Re
l
Scrum - A holistic approach to development that focuses on iterative goals set by the Product Owner
through a backlog, which is developed by the De- Planning and feedback loops in Extreme programming (XP) with
livery Team through the facilitation of the Scrum the time frames of the multiple loops.
Master.
noted that several PERT based models are not well suited
Extreme Programming (XP) - A set of practices for the multi-project company environment of today.
based on a set of principles and values, with a goal Most of them are aimed at very large-scale, one-time,
3.1
Initiating
non-routine projects, and currently all kinds of management are expressed in terms of projects.
Using complex models forprojects(or rathertasks)
spanning a few weeks has been proven to cause unnecessary costs and low maneuverability in several cases. The
generalization of Extreme Programming to other kinds
of projects is extreme project management, which may be
used in combination with the process modeling and management principles of human interaction management.
2.8
be supplemented with decision points (go/no go decisions) at which the project's continuation is debated and
decided. An example is the Phasegate model.
Initiating
Planning
Production or execution
3.2
PROCESSES
Planning
3.3
Executing
3.5
Closing
3.5 Closing
Correction of errors
Updates to the product over time
In this stage, auditors should pay attention to how eectively and quickly user problems are resolved.
Over the course of any construction project, the work
scope may change. Change is a normal and expected part
of the construction process. Changes can be the result of
necessary design modications, diering site conditions,
material availability, contractor-requested changes, value
engineering and impacts from third parties, to name a
few. Beyond executing the change in the eld, the change
normally needs to be documented to show what was actually constructed. This is referred to as change management. Hence, the owner usually requires a nal record to
show all changes or, more specically, any change that
modies the tangible portions of the nished work. The
record is made on the contract documents usually, but
not necessarily limited to, the design drawings. The end
product of this eort is what the industry terms as-built
drawings, or more simply, as built.The requirement
for providing them is a norm in construction contracts.
Construction document management is a highly important task undertaken with the aid an online or desktop
software system, or maintained through physical documentation. The increasing legality pertaining to the construction industries maintenance of correct documentation has caused the increase in the need for document
management systems.
When changes are introduced to the project, the viability of the project has to be re-assessed. It is important
not to lose sight of the initial goals and targets of the
projects. When the changes accumulate, the forecasted
result may not justify the original proposed investment
in the project. Successful project management identies
these components, and tracks and monitors progress so
as to stay within time and budget frames already outlined
at the commencement of the project.
4 TOPICS
creation of transparency among the project parame- successfully. A formal process is more eective in creatters* [31]
ing strong controls, and auditors should review this process to conrm that it is well designed and is followed in
Fulllment and implementation of these tasks can be practice. A good formal systems development plan outachieved by applying specic methods and instruments lines:
of project controlling. The following methods of project
A strategy to align development with the organizacontrolling can be applied:
tions broader objectives
investment analysis
costbenet analysis
expert surveys
simulation calculations
risk-prole analysis
4 Topics
surcharge calculations
sources. In addition, auditors should consider how important the projects are to the nancial statements, how reliant the stakeholders are on controls, and how many controls exist. Auditors should review the development process and procedures for how they are implemented. The
process of development and the quality of the nal product may also be assessed if needed or requested. A business may want the auditing rm to be involved throughout
the process to catch problems earlier on so that they can
be xed more easily. An auditor can serve as a controls
consultant as part of the development team or as an independent auditor as part of an audit.
4.5
4.3
9
Capability Maturity Model from the Software Engineering Institute.
GAPPS, Global Alliance for Project Performance
Standards an open source standard describing
COMPETENCIES for project and program managers.
A Guide to the Project Management Body of
Knowledge from the Project Management Institute
(PMI)
HERMES method, Swiss general project management method, selected for use in Luxembourg and
international organizations.
The ISO standards ISO 9000, a family of standards for quality management systems, and the ISO
10006:2003, for Quality management systems and
guidelines for quality management in projects.
PRINCE2, Projects IN Controlled Environments.
Association for Project Management Body of
Knowledge* [38]
Team Software Process (TSP) from the Software
Engineering Institute.
Total Cost Management Framework, AACE International's Methodology for Integrated Portfolio,
Program and Project Management.
V-Model, an original systems development method.
The Logical framework approach, which is popular
in international development organizations.
[Australian Institute of Project Management] AIPM
has 4 levels of certication; CPPP, CPPM, CPPD
& CPPE for Certied Practicing Project ... Partner,
Manager, Director and Executive.
International standards
There have been several attempts to develop project management standards, such as:
An increasing number of organizations are using, what
is referred to as, project portfolio management (PPM)
projects and then using
ISO 21500: 2012 - Guidance on project manage- as a means of selecting the right
*
[39]
as the means for deproject
management
techniques
ment. This is the rst project management ISO.
livering the outcomes in the form of benets to the per ISO 31000: 2009 - Risk management. Risk man- forming private or not-for-prot organization.
agement is 1 of the 10 knowledge areas of either
ISO 21500 or PMBoK5 concept of project manage4.6 Project management software
ment.
ISO/IEC/IEEE 16326-2009 - Systems and Software Main articles: Project management software and Project
EngineeringLife Cycle ProcessesProject Man- management information system
agement * [37]
10
REFERENCES
Project management software is software used to help [10] Martin Stevens (2002). Project Management Pathways.
Association for Project Management. APM Publishing
plan, organize, and manage resource pools, develop reLimited, 2002 ISBN 1-903494-01-X p.xxii
source estimates and implement plans. Depending on the
sophistication of the software, functionality may include
[11] Edward R. Marsh (1975). The Harmonogram of Karol
estimation and planning, scheduling, cost control and
Adamiecki. In: The Academy of Management Journal.
budget management, resource allocation, collaboration
Vol. 18, No. 2 (Jun., 1975), p. 358. (online)
software, communication, decision-making, workow,
quality management, documentation and/or administra- [12] Morgen Witzel (2003). Fifty key gures in management.
Routledge, 2003. ISBN 0-415-36977-0. p. 96-101.
tion systems.* [40]* [41]
4.7
See also
References
[1]
[16] ipma.ch
[17] F. L. Harrison, Dennis Lock (2004). Advanced project
management: a structured approach. Gower Publishing,
Ltd., 2004. ISBN 0-566-07822-8. p.34.
[18] Wysocki, Robert K (2013). Eective Project Management: Traditional, Adaptive, Extreme (Seventh Edition).
John Wiley & Sons. ISBN 978-1118729168.
[19] Winston W. Royce (1970). Managing the Development of Large Software Systemsin: Technical Papers of
Western Electronic Show and Convention (WesCon) August 2528, 1970, Los Angeles, USA.
[20] Stellman, Andrew; Greene, Jennifer (2005). Applied Software Project Management. O'Reilly Media. ISBN 978-0596-00948-9.
[21] OGC PRINCE2 Background
[22] [Oce for Government Commerce (1996) Managing Successful Projects with PRINCE2, p14]
[23] What is Agile Project Management?". Planbox.
[24] Serra, C. E. M. & Kunc, M., 2014. Benets Realisation Management and its inuence on project success and
on the execution of business strategies. Also, no. International Journal of Project Management, Issue http:
//dx.doi.org/10.1016/j.ijproman.2014.03.011.
[25] Project Management Guide (PDF). VA Oce of Information and Technology. 2003.
[26] Peter Nathan, Gerald Everett Jones (2003). PMP certication for dummies. p.63.
[27] Harold Kerzner (2003). Project Management: A Systems
Approach to Planning, Scheduling, and Controlling (8th
ed.). Wiley. ISBN 0-471-22577-0.
11
[28] James P. Lewis (2000). The project manager's desk reference: : a comprehensive guide to project planning, scheduling, evaluation, and systems. p.185
[29] Jrg Becker, Martin Kugeler, Michael Rosemann (2003).
Process management: a guide for the design of business
processes. ISBN 978-3-540-43499-3. p.27.
[30] Bernhard Schlagheck (2000).
Objektorientierte
Referenzmodelle fr das Prozess- und Projektcontrolling.
Grundlagen Konstruktionen Anwendungsmglichkeiten. ISBN 978-3-8244-7162-1. p.131.
[31] Josef E. Riedl (1990). Projekt Controlling in Forschung
und Entwicklung. ISBN 978-3-540-51963-8. p.99.
[32] Steinle, Bruch, Lawa (1995). Projektmanagement. FAZ
Verlagsbereich Wirtschaftsbcher. p.136143
[33] Cynthia Snyder, Frank Parth (2006). Introduction to IT
Project Management. p.393-397
[34] Certied Construction Manager. CMAA. Retrieved
23 November 2013.
[35] Certicate in Biotechnology Project Management.
University of Washington. Retrieved 23 November 2013.
[36] NASA NPR 9501.2D. May 23, 2001.
[37] ISO/IEC/IEEE
16326-2009
Systems
and
Software
Engineering--Life
Cycle
Processes-Project Management.
December 2009.
DOI:
10.1109/IEEESTD.2009.5372630.
ISBN 978-07381-6116-7
[38] Body of Knowledge 5th edition, Association for Project
Management, 2006, ISBN 1-903494-13-3
[39] Albert Hamilton (2004). Handbook of Project Management Procedures. TTL Publishing, Ltd. ISBN 0-72773258-7
[40] PMBOK 4h Ed. p. 443. ISBN 978-1933890517.
[41] Tom Kendrick. The Project Management Tool Kit:
100 Tips and Techniques for Getting the Job Done
Right, Third Edition. AMACOM Books, 2013 ISBN
9780814433454
[42] Curlee, Wanda (2011). The Virtual Project Management
Oce: Best Practices, Proven Methods.
[43] Khazanchi, Deepak (2005). Patterns of Eective Project
Management in Virtual Projects: An Exploratory Study.
Project Management Institute. ISBN 9781930699830.
[44] Velagapudi, Mridula (April 13, 2012).Why You Cannot
Avoid Virtual Project Management 2012 Onwards.
External links
Guidelines for Managing Projects from the UK Department for Business, Enterprise and Regulatory
Reform (BERR)
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