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Fundamentals of Projects Management MPM-Fall ,2013

Ejaz Ahmed Bajwa

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A walk through the course outline

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Course Outline
Lecture-1 Lecture-2 Lecture-3 Lecture-4 Lecture-5 Introduction to Projects, Development Projects, and Project Management Rationales of Project Initiation, Project Management as discipline, and Project Manager Project Planning basics, Project Management Process Framework, Phases and Integration Project Organizational Structure, Context and Cultural considerations (EEFs and OPAs) Project Controlling (Monitoring & Evaluation), Decision Making and Performance Measurement of Projects

Lecture - 6 Project Management Framework, Process Groups and Project Integration Management
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Course outline
Lecture-7 Lecture-8 Lecture-9 Project Scope and Time Management Project Cost and Quality Management Project Human Resource Management

Lecture-10 Project Communication Management Lecture-11 Project Risk Management Lecture-12 Project Procurement & Contract Management Lecture-13 Project Stakeholders Management Lecture -14 Project Management in Public Sector

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How we will go about the Lectures

Dont wait till the end! You might forget Feel free to interupt, if you have really very relevant question Otherwise note down and we will discuss at the end

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Lecture 1 Introduction to Projects, Development Projects, and Project Management

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outline
Nature of Development and Projects Projects Vs. Operations Projects and Development Projects Types of Projects , Common Characteristics of Projects Project Parameters Project Processes, Life Cycle / Phases of Project Introduction to Project Management as discipline

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Organizational Broad Division of Work

Planning & Development Operations Administration and Finance

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Nature of Development

Continuous

Continual

Process/Phenomenon continuous, execution is continual

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Projects

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What is a Project?
All projects have a definite beginning and an end, but all activities having definite beginning and an end are not Projects.

Beginning

Project

End

e.g. Having Dinner and Lunch

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Examples of Projects
Arranging a holiday, marriage ceremony by family A cricket match Developing a computer application Renovation/Re-Engineering Mega Development Project like Dam Establishing Educational Campus

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Projects Vs Operations

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How are they different ?

Projects
Unique Finite Revolutionary change Dis-equilibrium Unbalanced objectives Limited Resources Flexibility Effectiveness Goals Risk & uncertainty

Operations
Repetitive Infinite (Till life of organization) Evolutionary change Equilibrium Balanced objectives (Balanced Score
Card Objective Strategic Objectives in area of Finance, Process, Customer, Growth etc.)

Stable Resources Rigidity /SOPs Efficiency Roles Certainty /Experience

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Characteristics of Projects
Temporary Activities Start and Finish dates Unique Activities The project has never happened before and will never happen again under the same conditions. One-time effort, with specific objectives and deliverables. Complex Activities Not simple repetitive acts, such as mowing the lawn, running the monthly payroll, washing the car, or loading the delivery truck etc. Projects involves certain amount of complexity and is not Business as usual" (operations). Connected Activities There is some logical order or sequence Output from one activity is input to another.
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Characteristics of Projects
Goal(s) and Objectives Project must have at least one goal to accomplish. Projects have specific objectives to achieve to achieve Resources/Cost Projects need resources (3-Ms: Men, Money, Material) Specified Time Projects have a specified completion date Specification/Scope Customer or recipient expectations or self-imposed Creates Goods and Services Generally, adds to the Development, and becomes beneficial for the Society
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What are not Projects?

Projects must not be confused with an organizations on-going and recurring operations, though done intermittently. For example: Customer invoicing and billing Airline flights, Railway Journey University Semesters Treatment of patients in a hospital emergency ward, and Marriage ceremeny by event manager ?

Above are not projects even though they exhibit project characteristics (Goal,Time Frame, Cost) , organization is in operations which are done intermittently.

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What is a Project ?
A Project is a sequence of temporary, unique, complex and connected activities having one goal or purpose that must be completed within a specified time, cost/budget, as per specifications, to the satisfaction of the customer.

Therefore, Project is:

A temporary undertaking with a definable beginning and end Unique A utilization of finite resources Work to be completed within agreed parameters/constraints A change in the status quo

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What distinguishes Projects from Operations?

All temporary activities are not Projects, then what makes activity(ies) a Project:
Temporary Unique Activity Triple Constraints

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What if Project has no Benefits?

Ideally, Projects should produces deliverables (goods and services), for the benefit of the humanity:
Like manufacture of nuclear weapons Manufacturing of drugs by non commercial Drone attack Terrorists Attack

we mainly be concerned with Development Project

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What is a Development Project

Projects Deliver

Products/ Services Deliver

Development Project essentially delivers goods and services which adds to the Development

Benefits

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Development Project
A temporary endeavour in which human, material and financial resources are organized in a novel way, to undertake a unique scope of work, of given specification, within constraints of cost and time, so as to achieve beneficial change defined by qualitative and quantitative objectives.
(J Rodney Turner)

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History of Development Project

2130 B.C
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History of Development Project Management

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600 BC

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Historic Development Projects

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Contemporary Development Projects

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Classification of Development Project

Development Projects are usually classified as under:Infrastructure Development Projects
Physical Infrastructure Social Infrastructure Economic Infrastructure

Political
Advocacy Mobilization Lobbying

Economic
Improvement in Macro-Economic Indicators

Social
Mobilization Recreation Conservation

Administrative
Reforms Re-Engineering/Re-Processing
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Major Infrastructure Development Projects in Pakistan

Tarbela, Mangla and Ghzi-Brotha Dam Pakistan Steel HUBCO, Kot Addu thermal Power, Chashma Nuclear Power Station Islamabad-Lahore Motorway, Islamabad-Peshawar Motorway Karakorum Highway Jinnah International Airport Allama Iqbal International Airport National Stadium Karachi Shah Faisal Mosque Gawadar Port JF-17 Sino-Pakistan Combat Aircraft

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Main Reasons of Initiation of Development Projects

Project are designed and launched to:
1. 2. 3. 4. 5. 6.

Satisfy the needs of organizations and stakeholders Solve the Problem in hand Improve the existing state of development Avail the opportunities that environment is offering Part of the larger Strategy/Plan Targeted assistance from foreign Donors

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Project Parameters/Variables Scope Time Cost Quality

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Project Variables/Parameters
Project Triangle: Time, Cost and Quality

Scope

Quality Cost
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Time
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Triple Constraints Also known as the Iron Triangle

Time

Scope

Cost

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Reality Vs Idealism
Projects Triple Constraints Scope/Resources

Balanced Projects Benefits

Time

Cost

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The Quadruple Constraint

Time

Quality Scope Cost

Quality: is now at the heart of the Project Triangle

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Project System

Time & Cost Limits

Project Input(s) Project Output(s)

Scope Constraint

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Project as a System & Conversion Process

Constraints
Financial, legal, ethical, environmental, logical, cultural, Scope, Time, Cost and Quality, etc.

Input:
Wants / needs Problem/ Oppertunity

Project

Output:
Satisfied needs Solution of the Problem

Resources:
People , Knowledge ,Technology, expertise , tools & techniques, Capital (6 Ms = Men, Money, Material, Machine, Methods, Management)
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Sucess/Failure of Project
All projects have atleast one goal to achieve e.g., the development of society, area, Infratsrucure or process re-engineering of a large organization.

A project which does not achieve its goal is termed as Failed Project. A project which has problem with constaraints is a Troubled Project Project Goal must be as specific and clear e.g: increase in standard of education In addition to the Goal, projects may have subgoals and subsidiary goals (objectives), which should be SMART.

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Your Projects Cannot Afford to Fail

Globally 51 % of the projects face cost/time over run. 15 % fail to deliver results 34 % only face success Impacts: Reduced Organizational profitability Inability to solve the Problem Poor Stakeholders satisfaction

Succeed 34%

Fail 15%

Over time or over budget 51%

Troubled Projects

You cannot afford failure of your Project, especially at the start of your career because your future career depends on its success 22 September, 2013

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Few Causes of troubled Projects

Lack of common understanding of Requirements Failure to set and manage Customer Expectations Failure to plan and manage project Risks Poor Project Planning & Design Problems Poor Project Documentation Unclear organizational roles and responsibilities Lack of quality control mechanisms Inaccurate and uncommitted project estimates .. Customer/End user unprepared to take on project responsibilities

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Project Processes and Life Cycle

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Typical Project Life Cycle

Typical milestones that constitute a Project Cycle:
1. 2. 3. 4. 5. 6. 7.

Identification/Conception Planning Appraisal /Selection/Approval Implementation/Execution Monitoring , Evaluation & Control Closure/ Termination Evaluation/Lessons Learned

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Project Life Cycle

Project cycle by definition classifies the major stages of a project in a systematic manner. Planning, Implementation and Control
Identification Close out/ Lessons Learnt

Project Planning

Evaluation/ Mid course Corrections Implementation & Monitoring

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Appraisal & Approval

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Project Processes as per PMBoK

PMBoK has standardized the Project Processes in the following five stages:
Initiating Processes Planning Processes

Controlling Processes

Executing Processes

Process Groups and linkages

Closing Processes

Source: Project Management Institute (PMI) Guide to the Project Management Body of Knowledge 2013
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Process Groups
A process is a series of actions directed towards a particular result
Start Plan Implement - Control Finish

Initiate

Plan Monitor & Control Implement Close

All projects typically pass through above five processes

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Project Management

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Management"
According to the Oxford English dictionary, the word "manager" is derived from the Italian word maneggiare (to handle especially a horse) Management" characterizes the functions of Planning, Organizing, Leading/Directing, Staffing and Controlling for the achievement of objectives through the deployment and manipulation of resources Management has to do with power by position, whereas leadership involves power by influence.
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Management To Handle/Control
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What is Management?
An art more than a science Inherently social in nature Getting things done through others

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Hope is not a Strategy

In Professional Management Implementation is never an accident. It is a result of high intention, sincere effort, intelligent direction and skillful execution. It represents the wise choice of many alternatives
Donald G. Giles, US Steel

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3 Areas/Spheres of Management?
Strategic Management

Effective
Doing the right job

Efficient
Doing the job right
Operations Management Project Management

In Project Management Effectiveness is more important than Efficiency

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Project Management
Project Management is
- Getting things done efficiently through people - Effectively performing management functions - Dealing with mixed objectives - Maximizing chance of success

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Project Management

Purpose

Scope

Project Management activities

Organising

Time Cost

Quality

deliverables

Project Management
Project Management a discipline of Planning, Organizing, Leading/Directing, Staffing and Controlling to successfully achieve specified Project goal and objectives A methodical approach to planning and guiding project processes from start to finish. According to PMI, processes guided through five stages: initiation, planning, executing, controlling, and closing It is about both Effectiveness Efficiency doing the Right Job doing the Job Right

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Why do organizations use Project Management?

To sum it up.. 1. Improve results, create value 2. Decrease costs 3. Time saving 4. Improve Customer Satisfaction

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Purpose of Project Management

to ensure that if ANY change happens, the project will still complete... ...on Time ...within Budget ...as per given Specification & Standards .. Fulfills Customers Expectations

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Benefits of Project Management

Project Results are achieved Minimizes Project Costs due to Timely completion of Projects Efficient deployment of resources Cost of rework minimized Savings on account of subsequent maintenance & support Completion on time, timely decisions Supplier prices & deliveries controlled, timely procurement

These are measurable

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Advantages of Project Management

Better control of financial, physical, and human resources Improved customer relations, better internal coordination Higher quality and increased reliability Improves productivity Allows optimized use of resources Improves visibility of planning & control

These are not easily measurable

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Who should study Project Management?

Anyone who is directly or indirectly involved in; Initiation, Planning, Implementation, Monitoring, Evaluating and/or Controlling Project or Development activity, hardly there is any organization which is not involved now a days Working/Intends to work on a position which involves a substantive level of Decision-making, Responsibility, Communication and Coordination Knowledge acquistion in the subject areas, methodology, processes,tools and techniques of Project Management. A good Project Management knowledge platform will increase the likelihood of the Projects Success and your employment oppertunities.
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Project Institutions and Standards

Project Management Institute (PMI) Project Management Guide to the Body of Knowledge (PMBoK) (5th edition)

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Major Project Management Standards

(Conventional and Customized)
Off-the-Shelf Project Management Standards In-House Project Management Standards

PMBOK, Prince 2, P2M, BS 6079, ISO 21500. OPM3

(Best Practices)

Developed by the organizations based on their own specific requirements, policies and environment

Most of the P.M Standards are process oriented (Input, Output, Tools and Techniques), PMBOK approved by ANSI
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Project Management Body of Knowledge

Project Management Institutes Body of Knowledge PMBOK is perhaps the most widely acknowledged and popular project management process standards. It is the basis for the PMIs popular PMP certification examinations. Presently, its fifth edition (2013) is in hands, PMBOK offers a comprehensive and sophisticated best practices and process-based standard which can be applied to different categories of projects. At the heart of the PMBOK are the ten knowledge areas and five process groups which are applied over the project life-cycle to manage the Projects.
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Major Changes in the New Edition

10th Knowledge area Stakeholder Management added 5 new processes increased from (42-47)
PMBOK 4th Edition 9 Knowledge Area 5 Process Groups 42 Processes PMBOK 5th Edition 10 Knowledge Area 5 Process Groups 47 Processes

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Thanks
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