Introduction to

Project Management
Chapter 1
 Project Management Institute (PMI)

Building Professionals in Project Management

• Project management certification is popular worldwide

• PMI was established in 1969 and headquartered outside
Philadelphia, Pennsylvania, USA.
• Project Management Institute is the world’s leading project
management professional association with over 480000
members and PMP’s worldwide.
PMI provides certification of
Project Management Professional (PMP).
What is Project Management?

 Project Management is the combination of two words:

Project and Management

What is a Project?
Definition:
 A project can be defined as a series of activities and
tasks that:
 Has a specific objective to be completed within certain
specifications
 Has defined start and end dates
 Is unique, non-repetitive
 Has funding limits
 Consume human and nonhuman resources and
 Is multifunctional
What is Management?

Definition:
 Management can be defined as getting work done with and
through others effectively and efficiently with the help of
different Functions of Management:
 Planning
 Organizing
 Staffing
 Leading
 Controlling
What is Project Management?

Definition:
 Project management is the application (use) of
knowledge, skills, tools and techniques to project
activities to meet project requirements.
 Historical Perspective of Project
Management

 In ancient (older) times, projects were obvious

however techniques were quite different.

 There is little knowledge about the techniques used

by the ancient people in the management of their
projects but they often involved slaves and prisoners
who spent many years building ancient wonders such
as ….
Egyptian Pyramids
Great Wall of China
Taj Mahal
World’s Tallest Towers
World’s tallest man-made structure Burj Al Khalifa in Dubai; 829.8 m (2,722 ft.) tall
From Sep 21, 2004 to Jan 4, 2010
History of Project Management

 In 1850s some students of Algebra used a special

technique to show the flow of their logical problems. This
technique we now know as the “project planning
diagram” or PERT

 In the late 1950’s, two companies:

 E. I. DUPONT AND CO. and THE U.S. NAVY
completed early work in project management, combining
the project planning diagram with a computerized
schedule
 Beginning of
Modern Project Management

 Some recent examples of very difficult projects are:

 NASA’s Apollo Space Program,

 Space Shuttle Program,

Etc.
Beginning of
Modern Project Management…

• Following such examples, non-military government

sectors, private sector, public service agencies and
volunteer organizations have all used project
management to increase their effectiveness.

• Today, the concept is applied in such diverse

industries and organizations as:
• Defense, Construction, Pharmaceuticals, Banking,
Chemicals, Hospitals, Accounting, Advertising, Law,
Entertainment industry, State and Local governments
in the United Nations.
Examples of
Modern Project Management
Some Other Examples of Projects
 Designing and implementing a Computerized Accounting
System for an organization.

 Developing a web site of a company.

 Provision of clean water to a community

 Developing a new product or service

(automobile, computer, roads etc.).

 Developing or acquiring a new or modified information

system (MIS).
Project: Definition (PMBOK)

A Project is a:
 Temporary Endeavor (effort) with a definite
beginning and end, which
 Creates a Unique product, service or result;
 Done for a Purpose or strategic situation,
 Has Interrelated Activities, and
 Is Progressively Elaborated
 i.e. development in steps with great care
Characteristics of a Project

 Following are some of the main characteristics of a

project:

 Temporary
 Unique
 Fixed Budget
 Fixed Time Frame
 Interrelated Activities
 Progressively Elaborated
Characteristics of a Project…
Temporary
 Projects start and they end (i.e., projects have to end)

 Although, projects are temporary but their outcome is

not
 Taj Mahal, Eiffel Tower, etc.

 Other temporal issues are

 A project is a temporary window of opportunity – meaning that
the project has a limited time frame in which to produce a
product or service. Once objectives are achieved projects are
terminated/completed.
Characteristics of a Project…
Unique Endeavour
 Deliverables are Unique (different)

 Projects are non-repetitive (not repeated).

 For example, many thousands of office buildings

have been developed, but each individual building
is different from the other – different owner, different
design, different location, different contractors,
different laborers, and so on.
Characteristics of a Project…
Progressively Elaborated

 “Progressive” means that the project work is continuing

steadily by increments (in steps)

 “Elaborated” means worked out with care and detail i.e.,

developed thoroughly

 Progressive elaboration involves continuous

improvement and detailing the plan as more detailed
and specific information and more accurate estimates
become available.
 Characteristics of a Project…
Interrelated Activities

 Interrelated activities mean that the output from one

activity is input to another.

 For example: we must design the computer program before we can

program it.
Characteristics of a Project…
Fixed Budget and Time Frame

 Fixed Budget:
 The project is supposed to be completed within a fixed
budget

 Fixed Time:
 The project has to be completed within the stipulated time.
What Are Not Projects

Not everyday work is a project – projects are

done only once whereas everyday work is
usually repetitive and routinized

 E.G/ mining and extracting gold are from the ground is

everyday work, whereas setting up a new mine
extraction plant is a project.
 Similarly, establishing a university is a project but
routine classes and activities in a university is every day
work hence not a project.
Projects vs. Operations

Similarities:
 Performed by people
 Constrained by limited resources
 Planned, executed, monitored and controlled
Differences:
 Operations are ongoing and repetitive
 Purpose is to sustain the organization by setting new
objectives and continuing the work
 Projects are temporary and unique
 Purpose is to attain the objective, then terminate
Can you give me examples of
project and operations?
Why Projects are Initiated?
Projects are authorized as a result of some of the following strategic
considerations:

 Market Demand (Torkham-Jalalabad Road Project)

 Organizational Need (Corporate initiative to exploit an opportunity or tackle a problem)
 Customer Request (External customers routinely make requests for products or
services)
 Technological Advances (software firms generating new software as per new
technological advances)
 Social Responsibility (NGOs and non-profit organizations undertaking projects like
community development, education….)
 Crisis (Disasters) (Earthquake, or Floods demand relief projects)
 Legal Requirement (Federal and Provincial laws and regulations)
Relationships Among
Project Management, Program Management,
and Portfolio Management

 Project management exist in a broader context

governed by program management and portfolio
management.

Portfolio management,
Program management,
Project management, and
Project management office (PMO).
Projects and Project Management

 Projects are a means of organizing activities that cannot

be addressed within the organization’s normal
operational limits.
 Projects are, therefore, often utilized as a means of
achieving an organization’s strategic plan.

 A Strategic plan is an organization’s long term plan.

Organizations manage their portfolios based on their
strategic plan, which may dictate a hierarchy to the
portfolio, program, or projects involved.
Program and Program Management

 A program is a group of projects managed in a coordinated way

to obtain benefits not available from managing them
individually.

 For example: Health Program, Educational Program, Science &

Technology Program
 Each program in turn may have one or more projects undertaken.
 For example projects of building schools for kids under the primary education
program

 Program management is centralized.

 For example the Health Program is centrally controlled by the
Ministry of Health
Portfolio and Portfolio Management

 A portfolio is a collection of programs or projects grouped

to effectively manage the work to meet strategic business
objectives.

 Programs under the portfolio may not be directly related,

but projects under programs are usually related.
 For example: an infrastructure firm that has the strategic objective of
“maximizing the return on its investments” may put together a portfolio that
includes a mix of projects in oil and gas, power, water, roads, rail, and
airports. From this mix, the firm may choose to manage related projects as
one program. All the power projects may be grouped together as a power
program. Similarly, all of the water projects are grouped as water program.
Subprojects

 Projects are frequently divided into more manageable

components or subprojects.

 Subprojects are often contracted to an external enterprise

or to another functional unit in the performing
organization. E.g.,

 Subprojects according to human resource skill requirements, such

as the installation of plumbing or electrical fixtures on a
construction project.

 Subprojects are typically referred to as projects.

 Question

I’m am everywhere and a part

of everyone. I am at the end of
space and time and existence
itself. What am I?
 Answer

The letter E
Project Management Office (PMO)

 PMO works directly under the authority of ‘upper-

management’

 A PMO centralizes and coordinates the management of

programs, projects, or a combination of both
 PMOs can:
 Provide PM support: training, software, standard policies and
procedures,
 Direct management and responsibility for projects
 Be integral stakeholders and decision maker during initiation
 Have authority to make recommendations, terminate projects;
select, manage, and redeploy project personnel
Triple Constraints (Limitations)
 Project managers often talk of a “triple
constraint”—project scope, time and
cost—in managing project
requirements.

 The relationship among these factors

is such that if any one of the three
factors changes, at least one other
factor is likely to be affected.

 Project quality is affected by balancing

these three factors.
Triple Constraint Trade-Offs
Cost

Quality/Scope

Constraint Required Adjustment Alternatives (One or

Change Combination of Both)
Shorter Time Higher Cost Reduced Quality or Narrowed
Scope
Reduced Cost More Time Reduced Quality or Narrowed
Scope
Higher Quality or More Time Higher Cost
Increased Scope
Triple Constraint: Setting Priorities
Priority Matrix
Constraint 1 2 3 Measurement
Time
Cost
Quality/Scope

•Must be set by customer and sponsor near startup.

•May change over time, but a change is a significant event!

Example of a Comple te d Priority Matrix for a Construction Proje ct

Constraint 1 2 3 Measurement
Building must be completed by
Time X October 31 of this year to
accommodate corporate move.
Costs for the project must not
Cost X exceed $22.5 million.
Must provide workspace for 120 call
Quality/Scope X center staff.
Successful Project Management

Successful project management can be defined as having

achieved the project objectives:

 Within time

 Within cost

 At the desired performance/technology level

 While utilizing the assigned resources effectively and efficiently

 Accepted by the customer

 Benefits/Importance of Project
Management
 Better customer relations

 Identify and correct problems at an early stage

 Make timely decisions about trade-offs between conflicting

project goals,

 Shorter overall delivery times

 Lower costs and higher profit margins

 Higher quality and reliability (consistency)

 Higher worker morale

Project Management Obstacles
 Unfortunately, the benefits cannot be achieved without
overcoming obstacles such as:

 Project complexity (difficulty)

 Customer’s special requirements and scope changes

 Project risks (natural, financial, security)

 Changes in technology

 Forward planning and pricing (Estimations)

Kinds of project (cost, quality, time)
1.Normal project
Completion of project within given time, given cost and up to
the satisfaction Level.

2. Crash project
Time and cost can overlap but no compromise on quality

3. Disaster project
Overlap in time and cost but compromise on quality as well.
THANKS