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Lecture notes, lectures 1,2,3,7,9 - Project definition - project

integration management - stake-holder management - risk
management - communications management
Project Management (University of Toronto)

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A project is a temporary endeavor undertaken to create unique product (component itself), service
(production & distribution), results ( research project analysis &thesis results).

Characteristics of a Project:
1. Temporary
2. Delivers Unique product, service or result.
3. Progressive Elaboration - combination of concepts of 1&2.

Projects vs operations :-

Table of :

Project Operation Program Portfolio Project

ManagementO

ffice

(PMO)

Achieves the Achieve the objective and create new Group of projects managed Group of projects/programs that are An unit to

objective and ones so as to sustain the business. in a co-ordinated way to grouped together to facilitate effective centralize and

terminates. obtain benefits. management and meet strategic co-oridnate

business objectives. projects in one

domain.

Project authorization based on strdt’ic considerations:

PROJECT MANAGEMENT IS THE APPLICATION OF KNOWLEDGE, TOOLS, SKILLS AND TECHNIQUES TO

PROJECT ACTIVITIES TO MEET PROJECT REQUIREMENTS.

Managing a Project:

Areas of Expertise for Project Management :

Project Environment :

Management skils :

Portfolio Management : (done by senior managers) - how it is done?

1. Increase the portfolio of the org by : (a) examine the project and program to include in the folio
(b) cut down unnecessary projects that don’t meet objectives

2. Balance portfolio among : (a) incremental investments

(b) radical investments

Features of PMO:

Difference between Pro.Managers and PMO:

PROJECT MANAGER PMO

Responsible for project objectives in a certain Org structure responsible to look at enterprise
timeline. wide perspective
Focuses on specified objectives Focuses on scope changes
Controls project resources Controls Org resources
Manages time,cost,quality and scope Manages overall risk & opportunities
Reports on Project specific info (project progress) Reports on enterprise view of projects.

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Competencies of Project manager

1. Strongly committed to mission - means gather lots of information to enhance success
2. Systematic , good communication, leadership and decision-making skills
3. Find the best ppl for project => ability to get the best out of ppl
4. Selective involvement in project issues - i.e.; no unnecessary waste of time by involving themselves in unwanted tasks.
5. Have a broad long-term perspective
6. ABILITY TO GET THINGS DONE !!

Project Sponsor :
Who is he? : Person or a group who is responsible for allocating resources for the project and enabling project success. (he may internal or
external). He is the guy to link between proj.managment team and higher managements .
Role:
1. Project Funding
2. Clarifying scope questions
3. Influence others for the benefit of the project - i.e.; promotes the project .
4. Approving phase-gates
5. Ensures smooth transfers to operations

Customers/users:
Who are they ? : The person or org who uses the project’s output => a product or a service or result. ( may be internal / external ::: difficult to
define consistently )

Functional Managers:
Who is he ? : A person who ensures that a project has got sufficient staff to work on it , and whether the staff would be able to work on the
project with their responsibilities.
Role:
1. Hires , fires staff, supports the staffs.
2. Allocate and plan resources
3. Resolve problems in the project
4. Provide productive work environment
5. Executes company policies.

CONSTRAINS IN A PROJECT

PROJECT LIFE CYCLE

PREDICTIVE /PLAN DRIVEN LIFE CYCLE ADAPTIVE LIFE CYCLE

adaptes to changes, flexible

each release creates a product which could be
used.
client can decide when to stop.
limitations : assumes req’mnts doesn’t change and its
not flexible.

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PROJECT CHARTER
WHAT IS IT ?
It is a document that formally authorizes a project. It provides the proj.manager the authority to apply org.resources to
the pro.activities.
how to develop project charter : inputs?

inputs outputs (what pro.charter does)

contract when applicable formally authorizes a project

Project statement of work - description of provides proj.manager the authority to apply
products or services to be supplied by the project. org.resources to the project activities.
for internal proj- SOW => proj.sponsor opportunity to understand customer and product
for external proj- SOW=> Customer requirements
It indicates a : will have objectives and criteria to meet
business need may have budget, milestone schedule ,
product scope description stakeholders
strategic plan
Enterprise environmental factors
Org.’s process assets.

PROJECT MANAGEMENT PLAN

WHAT IS IT ?
It is a plan which includes the actions necessary to define , integrate and coordinate all subsidiary plans into project
management plan. It defines how a project is planned, monitored and controlled and then executed and closed.

How to developed the plan ?

inputs outputs

includes WHAT will be delivered- scope statement a report of project management plan with all the
includes HOW it will planned, monitored, deliverables explained ! :P
controlled , executed and closed.

DIRECT AND MANAGE PROJECT WORK

WHAT IS IT ?
This process requires the pro.manager and the team to perform some tasks specified in the proj.man.plan to accomplish
the work defined in the project scope statement.

How to developed this ?

apply management skills, product knowledge, project management methodology.
work authorization system

MONITOR AND CONTROL PROJECT WORK

WHAT IS IT ?
It is a process to monitor and control the tasks associated with planning, executing and closing
How to develop ?
Compare progress against plan
Report scope ,time and cost
monitor and controls risks involved
can be corrective and preventive

EARNED VALUE MANAGEMENT

CV = EV - AC
SV = EV -PV
EAC = AC + ( BAC - EV ) = BAC / CPI
CPI = EV/AC

PV- Cost baseline

EV- earned value
CV-cost variance
SV- schedule variance
BAC- budget at completion
EVM-earned value management
EVT- earned value technique
EAC- estimate at completion
ETC- estimate to completion
CPI - cost performance index

INTEGRATED CHANGE CONTROL

WHAT IS IT ?
This is performed from project initialization to completion .
How to develop ?

inputs outputs

Project management plan approved project management plan

request changes approved request changes
work performance info approved preventive and corrective actions .
recommended preventive and corrective actions

PROJECT CLOSURE
WHAT IS IT ?
Involves project closure portion of project management plan .
How to develop ?

inputs outputs

Project management plan administrative closure procedure

Organizations assets contract closure procedure
enterprise environmental factors final product , service and result
work performance information

CONFIGURATION MANAGEMENT

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WHO IS HE ?
Any person of the org that has the req’mnt to know about the project, affect or being affected by the project.

POWER/INTEREST GRID :

HOW TO DEVELOP ?

inputs outputs

Communication management plan Resolved issues

Analyse needs of the stakeholders approved project management plan
document the needs approved request changes
Org process assets (issue arises, proj.manager approved preventive and corrective actions .
resolves with appropriate tools)
STAKE-HOLDER ENGAGEMENT ASSESMENT
unaware
resistant
neutral
supportive
leading

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RISK MANAGEMENT PLANNING -> IDENTIFY RISK -> QUALITATIVE RISK ANALYSIS -> QUANTITATIVE RISK
ANALYSIS -> RISK RESPONSE -> RISK CONTROL

PROJECT RISK ?
An uncertain condition or event that occurs and leaves a positive or negative impact on the project objectives is
called as project risk.
Whereas an ISSUE is “ a point or matter in question or dispute, an immediate problem which requires a solution”.

risk = probability * impact

Uncertainity is unmeasurable , uncontrollable outcome.
Risk is the consequence of action taken in-spite of uncertainty.
The attributes of a known risk are risk event, probability, impact, urgency and attitude of the stakeholder who suffers the
risk .

RISK BREAKDOWN STRUCTURE

RISK IDENTIFICATION TECHNIQUES

1. Documentation reviews
2. Information Gathering Techniques
Brainstorming
Delphi Technique
Interviewing
Root cause identification
SWOT analysis
3. Checklist analysis
4. Assumption analysis
5. Diagram technique
Cause and effect diagram
Process flow chart
Influence diagram

QUALITATIVE RISK ANALYSIS TECHNIQUES

QUANTITATIVE RISK ANALYSIS TECHNIQUES/ OUTPUT

The output here is EXPECTED MONETARY VALUE .
Expected monetary value analysis calculates an average outcome when the future includes scenarios that may or may
not include.
EMV = probability % * impact
Montecarlo simulation

RISK RESPONSE PLANNING TECHNIQUES

THREATS (-ve risk) OPPORTUNITIES (+ve risk)

1. AVOID -change the PMP to avoid the risk 1. EXPLOIT- ensures that the opportunity is realized
2. TRANSFER- shift the -ve impact of threat along with 2. ENHANCE- increases the probability or impact in a
its ownership of response to a 3rd party positive way
3. MITIGATE - implies a reduction in the probability or 3. SHARE - allocating the risk to ownership or 3rd party
impact of a risk who is best able to capture the opportunity for the
4. ACCEPT ! COME WHAT MAY benefit of the project
4. ACCEPT

MONTE-CARLO SIMULATION : WEAKNESS

1.Based on guesswork that may be wildly wrong, yet producing a result which is presented very precisely.
2.It only analyzes “internal” risks that we have estimated. Ignores “external” risks that we have not built into the
schedule model.
3.The analyst can bias the results.
4.We must remember to estimate correlations within various groupings of tasks. For example, all design tasks may be
systematically underestimated. All outdoor tasks will be affected if the risk is of unseasonably bad winter weather.
5.But Monte Carlo is better than the older Program Evaluation and Review Technique.

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