SCM 432 Ch.01-B - Introduction

Project Management (SCM 432)
Ch.01-An introduction to Project, Program, and Portfolio Management
1
Learning Objectives
After studying this chapter, you will learn:
• Understand the growing need for better project, program, and portfolio management
• Explain what a projects, provide examples of projects, list various attributes of projects, and describe
project constraints.
• Describe project management and discuss key elements of project management framework, including
stakeholders, the project management knowledge areas, common tools, and techniques, and project
success factors.
• Discuss the relationship between project, program, and portfolio management and their contribution
to enterprise success.
• Describe the project management profession, including suggested skills for project, program, and
portfolio managers, the roles of professional organizations like the Project Management Institutes, the
importance of certification and ethics, and the growth of project and portfolio management software.
Chapter 1-A OPIM 432 – Project Management 2

What is a Project?
• Operation(s) is/are work done in organizations to sustain the business
• A project is “ a temporary endeavor undertaken to create a unique product, service, or result”
• Projects are different form operations in that they end when their objectives have been reached or the project
has been terminated.
• Examples of Projects:
• A construction company designs and construct a new office building for a client
• A pharmaceutical company launches a new drug
• A retail store manger works with employees to display a new clothing line
• A college campus upgrades its technology infrastructure to provide wireless Internet access
• An automobile company develops standards to streamline procurement
• etc.,

What is a Project?
• Project Attributes:
• A project has a unique purpose: every project should have a well-defined objective
• A project is temporary: a project has a definite beginning and definite end
• A project is developed using progressive elaboration or in a iterative fashion: projects are often defined
broadly when they begin, and as time passes, the specific details of the projects become more clear.
• A project requires resources: resources include people, hardware, software, or other assets.
• A project Should have a primary customer or sponsor: many projects have many interested parties or
stakeholders, but someone must take the primary role of sponsorship. The project sponsor usually provides
the directions and funding for the project.
• A project involves uncertainty: every project is unique. It is mostly difficult to define the project’s
objectives clearly, estimates exactly how much it will take to complete or determine how much it will cost.
External factors also cause uncertainty. Uncertainty invokes risk!

Comparison of Routine Work with Projects
Operations
Projects
Routine, Repetitive Work
Writing a term paper
Taking class notes
Setting up a sales kiosk for a
Daily entering sales receipts into the professional accounting meeting
accounting ledger
Developing a supply-chain
Responding to a supply-chain information system
request
Writing a new piano piece
Practicing scales on the piano
Designing an iPod that is
Routine manufacture of an Apple approximately 2 X 4 inches,
iPod interfaces with PC, and
stores 10,000 songs
Attaching tags on a manufactured Wire-tag projects for GE and
product Wal-Mart
What is a Project?
• Project Constraints:
• Scope: what work will be done as part of the project? What unique product,
service, or results does the customer or sponsor expect from the project?
• Time: how long should it take to complete the project? What is the project’s
schedule?
• Cost: what should it cost to complete the project? What is the project’s
budget? What resources are needed?
• Quality: how good does the quality of the products or services need to be?
What do we need to do to satisfy the customer?
• Risk: how much uncertainty are we willing to accept on the project?
• Resources: who and what is required to do the work

What is a Project?
• Project Constraints:

Chapter 1 Topics:
• What is Project?
• What is a Project Management?
• Program and Project Portfolio
• The Project Management Profession
Chapter 1-B OPIM 432 – Project Management 8

Project Management
• Project Management (PM) is the application of knowledge, skills, tools and techniques to project
activities to meet the project requirements.
• Project managers should not only strive to meet specific scope, time, cost, and quality requirements of
projects, they must also facilitate the entire process to meet the need and expectations of the people
involved in or affected by project
• Stakeholders are people involved in or affected by project activities and include the project sponsor,
project team, support staff, customers, users, suppliers, and even opponents to the project.

Project Management
• PM Advantages: organizations claim that using project management provides advantages:
• Better control of financial, physical and human resources

• Improved customer relations
• Shorter development times
• Lower costs
• Higher quality and increases reliability
• Higher profit margins
• Improved productivity
• Better internal coordination
• Higher worker moral

How is Project Management Accomplished?

“Project management is accomplished through the application and
integration of the project management processes of initiating,
planning, executing, monitoring and controlling, and closing.”
Project Management
• PM Process Groups are initiating, planning, executing, monitoring, and controlling.
• PM Knowledge areas are integration, scope, time, cost, quality, human resources, communications, risk,
procurement and stakeholders.
• PM Tools and Techniques assist project managers and their teams in carrying out work in all ten
knowledge areas.

Project Management
• PM Process Groups are initiating, planning, executing, monitoring and controlling, and closing activities.
• Initiating: actions to define and authorize new projects and project phases
• Planning: devising and maintaining a whole scheme to ensure that the project meets its scope, time, and cost goals as well as
organizational needs.
• Executing: coordinating people and other resources to carry out the project plans and produce the deliverables of the project
or the pahse.
• Monitoring & Controlling: measure progress toward achieving project goals, monitor deviation from plans, and take corrective
action to match progress with pans and customer expectations.
• Closing: formalizing acceptance of the project or phase and brining it to an orderly end.

Project Management
• PM Knowledge Areas describe the key competencies that project

managers must develop.
1. Integration: a function that coordinates the work of all other

knowledge areas.
2. Scope: to define and manage all the work required to complete

the project successfully.
3. Time: to estimate how long it will take to complete the project.
4. Cost: preparing and managing the budget for the project
5. Quality: ensures that the project will satisfy the stated needs for
which it was undertaken

Project Management
• PM Knowledge Areas describe the key competencies that project

managers must develop.
6. Human Resources: concerned with making effective use of the

people involved with the project
7. Communications: generating, collecting, disseminating, and

storing project information
8. Risk: identifying, analyzing, and responding to risks related to

the project
9. Procurement: acquiring goods and services for a project from

outside the performing organization
10. Stakeholders: identifying, understanding, and engaging theme

appropriately throughout the project.

Project Management
• PM Tools and Techniques assist project managers and their teams in carrying out work in all ten
knowledge areas.

Chapter 1 Topics:

Program and Project Portfolio Management
• Program is a group of related projects managed in a coordinated way to obtain benefits and control not avail
be from managing them individually. It is more economical to group projects together to help streamline
management, staffing, purchasing, and other work.
• Program Manager: provides leadership and direction for the project managers, project teams, functional
groups, suppliers, and operations staff supporting the projects to ensure that project products and processes
are implemented to maximize benefits.
• Project portfolio management is the continuous process of selecting and managing the optimum set of
project initiatives that deliver maximum business value.
• Portfolio managers need to understand how projects fit into the bigger picture of the organization,
especially in terms of corporate strategy, finances, and business risks. They should have strong financial and
analytical skills and understand how projects and programs can contribute to meeting strategic goals.

Chapter 1 Topics:

Project Management Profession
• The Project management Institute (PMI) is a global professional society for project and program
managers. www.pmi.org
• PMI provides certifications as Project Management Professional (PMP) and Certified Associate in
project Management (CAPM).
• Portfolio Management Professional (PfMP)

• Professional in Business Analysis (PMI-PBA)
• Program Management Professional (PgMP)
• Risk Management Professional (PMI-RMP)
• Scheduling Professional (PMI-SP))
• Many colleges, universities, and companies around the world offer courses related to various aspects of
project management or academic degree in project management. Program is a group of related projects
manage med in a coordinated way to obtain benefits and control not avail be from managing them
individually.

Chapter 1 Topics:

Questions ?

SCM 432 Ch.01-B - Introduction

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Project Management (SCM 432)

Ch.01-An introduction to Project, Program, and Portfolio Management

Chapter 1-A OPIM 432 – Project Management 2

Chapter 1-A OPIM 432 – Project Management 3

Chapter 1-A OPIM 432 – Project Management 4

Chapter 1-A OPIM 432 – Project Management 6

Chapter 1-A OPIM 432 – Project Management 7

Chapter 1-B OPIM 432 – Project Management 8

Chapter 1-B OPIM 432 – Project Management 9

• Better control of financial, physical and human resources

Chapter 1-B OPIM 432 – Project Management 10

How is Project Management Accomplished?

• PM Process Groups are initiating, planning, executing, monitoring, and controlling.

Chapter 1-B OPIM 432 – Project Management 11

Chapter 1-B OPIM 432 – Project Management 12

• PM Knowledge Areas describe the key competencies that project

1. Integration: a function that coordinates the work of all other

2. Scope: to define and manage all the work required to complete

3. Time: to estimate how long it will take to complete the project.

4. Cost: preparing and managing the budget for the project

Chapter 1-B OPIM 432 – Project Management 13

• PM Knowledge Areas describe the key competencies that project

6. Human Resources: concerned with making effective use of the

7. Communications: generating, collecting, disseminating, and

8. Risk: identifying, analyzing, and responding to risks related to

9. Procurement: acquiring goods and services for a project from

10. Stakeholders: identifying, understanding, and engaging theme

Chapter 1-B OPIM 432 – Project Management 14

Chapter 1-B OPIM 432 – Project Management 15

Chapter 1-B OPIM 432 – Project Management 16

Program and Project Portfolio Management

Chapter 1-B OPIM 432 – Project Management 17

Chapter 1-B OPIM 432 – Project Management 18

Project Management Profession

• Portfolio Management Professional (PfMP)

Chapter 1-B OPIM 432 – Project Management 19

Chapter 1-B OPIM 432 – Project Management 20

Chapter 1-B OPIM 432 – Project Management 21

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