5763 - Project Management - Chapter 2 PDF

Innovation Throughout
Bharti Consulting
Project Management – An Introduction
02-Jan-11 sunil@bharticonsulting.com
Bharti Consulting
References
•A Guide to Project Management Body of Knowledge, Fourth

Edition, Project Management Institute, Pennsylvania
•Kerzner, Harold. Project Management-A Systems Approach to
Planning, Scheduling and Controlling. John Wiley & Sons Inc.,
Seventh Edition.
•Jack R. Meredith, Samuel J. Mantel, Jr. Project management –
A Managerial Approach. John Wiley & Sons, Fourth Edition,
2000.
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Purpose of Session
•Project Management Framework and Context

•Project Constraints – Revisited
•Understanding Project Stakeholders
•Project Life Cycle and Project Phases
•Project Organizations & Organizational Influences
•General Management Skills
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Project Constraints
•Triple Constraint originally included cost, time and scope.
•The current explanation of Triple Constraint includes, but not
limited to
•Scope
•Quality
•Cost
•Time
•Resources
•Risk
•Customer satisfaction
•The Project Manager is supposed to manage the Project’s Triple
Constraint.
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Stakeholder Management
•A stakeholder is some one whose interests may be positively or
negatively impacted by the Project.
•The stakeholder include: The Project Manager, The Project

Team, The customer, The PMO, The Project Sponsor, The
Performing Organization.
•Stakeholder management requires:

•Identifying All Stakeholder
•Determining All of their requirements
•Determine Stakeholder Expectations
•Communicating with Stakeholders
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Stakeholder Expectation (examples)

•New Product Design Project
•VP (Research) may be interested in state-of-art technology
•VP (Manufacturing) may define this as world class practices
•VP (Marketing) may be interested in the new features in the
product
•In a Real Estate Development Project

•The owner will be interested in timely performance
•The local governing agency may be interested in maximizing
tax revenue
•The local environmental group may look at minimizing
adverse environmental impact
•Nearby residents may like to relocate the project
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Relationship among Stakeholders
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Organization Structure
•There are three types of Organization based on the authority that a Project
Manager has.
•Functional: The organization is grouped by areas of specialization within
different functional areas, e.g, accounting, marketing, Sales. Team member
report to functional Manager.
•Projectized: The entire company is Organized by Project. There is no

department as such. Team member report to Project Manager.
•Matrix: This is a mix of both the above types. This has three forms, Strong
Matrix, Weak Matrix and Balanced Matrix.
•In strong Matrix, power rests with the Project Manager. In weak matrix,
power rests with the functional manager. In balanced Matrix, the power is
shared between the functional manager and the Project Manager.
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Functional Organization
Chief Project
Executive Coordination
Functional Functional Functional

Manager Manager Manager
Staff Staff Staff
Staff Staff Staff
(Black boxes represent staff engaged in project activities.)
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Matrix Organization
Chief
Executive
Functional Functional Functional Manager of

Manager Manager Manager Project Managers
Staff Staff Staff Project Manager
(Black boxes represent staff engaged in project activities.) Project

Coordination
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Projectized Organization
Project Chief
Coordination
Executive
Project Project Project

Manager Manager Manager
Staff Staff Staff
Staff Staff Staff
(Black boxes represent staff engaged in project activities.)
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Advantages & Disadvantages

Functional
Advantages Disadvantages
Specialist can be grouped together Departmental work get more priority
Only one manager, so no confusion than Project Work
Clearly defined career paths. No career path in Project Management
Projectized
Better communication within Projects Less efficient use of resources
Loyalty to Projects No home when Project is completed.
Matrix
Better coordination Higher potential for conflict
Maximum utilization of resources Extra Administration required
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Structure Influence on Projects
Source: A Guide to Project Management Body of Knowledge, 2000 Edition, p 19, Project Management Institute, Pennsylvania, USA.
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Organization Authority Continuum
Project Manager’s Authority
None Low Medium High
Project Project
Functional Weak Matrix Strong Matrix Projectized
Expeditor Coordinator
Organization Organization Organization Organization
Organization Organization
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Project Life Cycle
•Collection of project phases

•Serves to define the beginning and end of a project
•Helps to define the processes for a specific project product
•Top management is responsible for the periodic review of a
project. This should be accomplished, at a minimum, at the
completion of each life-cycle phase.
•Defines –
•What technical work to do in each phase
•When the deliverables are to be generated in each
phase and how each will be reviewed, verified and
validated
•Who is involved in each phase
•How to control and approve each phase
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Project Life Cycle
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Why Project Phases
• To provide appropriate link to

ongoing operations of
performing organizations for
Projects
Projects are
Unique
involves Resource requirements, Funds
Uncertainty
requirements and common
functionalities like-Purchase,
Stores, Administration, HR etc
Phasing
facilitate
better
Management &
Control
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Why Project Phases
• Effectively deals with the

uncertainties by Progressive
Projects
Projects are Elaboration
involves
Unique
Uncertainty
• Tangible & Verifiable work
products at each phase end
• Stakeholders are better placed to
Phasing decide whether to continue
facilitate
better • Better Management and Control
Management &
Control
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The Need for Phases in Project Life Cycle
•Each phase gives a tangible and verifiable work product

•Projects are divided into phases for better management and
control
•At the end of each phase, stakeholders can

•Decide if project should continue
•Detect and correct errors cost effectively
•These points are Phase Exits, Stage Gates or Kill Points
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Sequence of Phases in Project Life Cycle
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decision/contract
DEFINE PLAN ORGANISE EXECUTE CLOSE

requirements identity tasks organize team issue change obtain client
analysis orders acceptance
feasibility sequence tasks review project complete

study status documentation
functional identify critical establish control tool

specification activities install
recruit staff sign off
deliverables
scenario estimate time

development and cost report on
project conduct
cost-benefit assign post-implementation
analysis determine work audit
staffing review schedule
set objectives maintenance
and budget
compare value planning value engineering value assessment
alternatives
FIGURE: The basic project life-cycle
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Phase 1 Phase 2 Phase 3 Phase 4 (final)
determine determine determine determine
requirements requirements requirements requirements
evaluate evaluate evaluate evaluate
alternatives alternatives alternatives alternatives
specify specify specify specify
design design design design
implement implement implement implement
design design design design
user review user review user review user review
FIGURE: A phased development life-cycle (Jordan and Machesky, 1990)
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Project Life Cycle Characteristics
•Cost and staffing levels

•Risk and uncertainty
•Stakeholders ability to influence
•Cost of changes
•Probability of completing the project
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Project Life Cycle Vs. Product Life Cycle

•A typical Product lifecycle starts with the conception of the Product till its
withdrawal from the market, when it becomes obsolete.
A Product can require or spawn many projects over its life. For example, a
Project during Product conception would be to determine customer’s need
and project during product maturity phase can be to do competition
analysis.
A Project has its own lifecycle. The lifecycle depends upon the Industry
within which the project is being executed or the Organization preference of
their project execution methodology.
For example, typically in IT industry, the Project Lifecycle is

Requirement Analysis High Level Design Detailed Design
Coding Testing Installation Hand over to Operation.
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Project Life Cycle & Product Life Cycle
Source: PMBOK 2004 Edition
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Compass for a Project Manager

Looking Backward Looking upwards
Monitoring progress with appropriate Managing your sponsor to
control systems to ensure that the project achieve organization
meets its objectives and the team learns commitments
from its mistakes
Looking outwards
Looking inwards Managing the client, end user
The role of and external stakeholders
Managing yourself, by reviewing
your performance to ensure that PM (including suppliers and
your team leadership is a positive subcontractors) to ensure that the
contribution to the project. project meets their expectations.
Looking downwards Looking Forwards

Managing the team to maximize Ensure that the team sets
its performance. Managing across realistic targets and obtains
disciplines, departments, countries appropriate resources to
and cultures achieve the targets.
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Skills for a Project Manager

•Communication
•Organizational
•Budgeting
•Problem solving
•Negotiation and influencing
•Leading
•Team building
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Qualities of a Good Project Leader

•Flexibility and adaptability;
•Ability to demonstrate significant initiative;
•Assertiveness, confidence and verbal fluency;
•Ambition, drive and commitment;
•Effective communication and good listening skills;
•Enthusiasm, imagination and creativity;
•Being well organized and self-disciplined;
•Being a generalist rather than a specialist - having technical awareness;
•Being able to identify and facilitate problem solving;
•Being able to make and take decisions promptly;
•Ability to promote a motivating climate;
•Ability to keep everyone focused on the project objectives;
•Having been trained in project management tools and techniques;
•Being experienced in project management processes and procedures;
•Being respected by peers and management;
•Being concerned to achieve success.
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Project Management System
•Set of tools, techniques, methodologies, resources and procedures to

manage a project
•The system is a set of processes and control functions combined to a
functioning unified whole
•Can be formal or informal
•The PM System aids a project manager in effective guiding a project to
completion
•The System Contents depend upon the Application area, organizational
influences and complexity of projects
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Organizational Process Assets

•Processes and Procedures
Organizational standard processes such as standards, policies (safety, health,
ethics, project management related etc.)
Standard product and project life cycles, quality policies and procedures
Standardized guidelines (for work instructions, proposal evaluation, performance
measurement and evaluation etc)
Templates (WBS, Project Schedule, Contract templates etc.)
Organization Communication Requirements (specific communication technology
available, allowed communication media, record retention policies, security etc.)
Project Closure Guidelines
Financial Controls (Accounting codes, time reporting, expenditure and
disbursement reviews etc.)
Issues and Defect Management procedures
Change control procedures
Risk control procedures etc.
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Organizational Process Assets

•Corporate Knowledge Base
Process Measurement Databases used to collect and make available measurement
data on processes and products
Project Files
Historical Information
Lessons Learnt from projects
Issues and Defect management databases
Configuration Management Knowledge bases containing the versions and
baselines of all official company standards, policies, procedures and any project
documents
Financial databases containing information such as labor hours, incurred costs,
budgets and project cost overruns
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Profile of Speaker
•Sunil K. Agrawala,PMP
•B.S(Engg) in Electronics & Telecom; M.S. in Computer Science,
(USA)
•More than 20 years of experience in IT industry
•Has worked with giants like Cap Gemini, Bell Labs, Satyam, HCL
Technology, Keane etc.
•Visiting Faculty for Project Management at leading B-Schools
•Experienced trainer on PMBOK and PMP Preparation
•Email: sunil@bharticonsulting.com
Bharti Consulting
Contact:
Sunil@bharticonsulting.com
Phone: 91-9861103700
Visit: http://www.bharticonsulting.com
Bharti Consulting

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Innovation Throughout

•A Guide to Project Management Body of Knowledge, Fourth

•Project Management Framework and Context

•The stakeholder include: The Project Manager, The Project

•Stakeholder management requires:

Stakeholder Expectation (examples)

•In a Real Estate Development Project

Relationship among Stakeholders

•Projectized: The entire company is Organized by Project. There is no

Functional Functional Functional

Staff Staff Staff

Staff Staff Staff

(Black boxes represent staff engaged in project activities.)

Functional Functional Functional Manager of

Staff Staff Staff Project Manager

Staff Staff Staff Project Manager

Staff Staff Staff Project Manager

(Black boxes represent staff engaged in project activities.) Project

Project Project Project

Staff Staff Staff

Staff Staff Staff

(Black boxes represent staff engaged in project activities.)

Advantages & Disadvantages

Structure Influence on Projects

Organization Authority Continuum

Project Manager’s Authority

None Low Medium High

Project Life Cycle

•Collection of project phases

Project Life Cycle

Why Project Phases

• To provide appropriate link to

Why Project Phases

• Effectively deals with the

The Need for Phases in Project Life Cycle

•Each phase gives a tangible and verifiable work product

•At the end of each phase, stakeholders can

Sequence of Phases in Project Life Cycle

Sequence of Phases in Project Life Cycle

DEFINE PLAN ORGANISE EXECUTE CLOSE

feasibility sequence tasks review project complete

functional identify critical establish control tool

scenario estimate time

Sequence of Phases in Project Life Cycle

determine determine determine determine

requirements requirements requirements requirements

evaluate evaluate evaluate evaluate

alternatives alternatives alternatives alternatives

specify specify specify specify

design design design design

implement implement implement implement

design design design design

user review user review user review user review

FIGURE: A phased development life-cycle (Jordan and Machesky, 1990)

Project Life Cycle Characteristics

•Cost and staffing levels

Project Life Cycle Vs. Product Life Cycle

For example, typically in IT industry, the Project Lifecycle is

Project Life Cycle & Product Life Cycle

Source: PMBOK 2004 Edition

Compass for a Project Manager

Looking downwards Looking Forwards