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Project Management
N G U Y E N H O A N G L A N P H D. P M P
D E PA R T M E N T O F I N D U S T R I A L E C O N O M I C S
SCHOOL OF ECONOMICS AND MANAGEMENT
ROOM 206 – C9
E M A I L : L A N . N G U Y E N H O A N G @ H U S T. E D U .V N
0905169617

Course Syllabus
• Course units: 45
• Theory: 30
• Practice: 15
• Objectives: This course is designed to go in depth on selected
parts of project applications and provide the knowledge, skills and
abilities for students to know how to establish project, evaluate
project finance, and manage project.
• Evaluation Criteria
◦ Process: classroom participant, in class assignment, homework, term paper:
30%
◦ Final exam: 70%

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Term paper
• Group of 3-5 students
• Develop a project
• Present group’s project
• Final report of project

Reference
• 1. Phạm Thị Thu Hà (2013), Bài giảng phân tích hiệu quả dự án đầu tư
• 2. Phạm Thị Thu Hà, (2014), Tổ chức quản lý thực hiện dự án đầu tư
• 3. TS Phạm Phụ, Phân tích và lựa chọn dự án đầu tư (kinh tế - kỹ thuật ),
NXB Trường ĐHBK TP Hồ Chí Minh
• 4. TS Đặng Minh Trang (2003), Tính toán dự án đầu tư (kinh tế - kỹ
thuật), NXB Thống kê
• 5. PARK CHAN S., Contemporary Engineering Economics
• 6. Tung Au, Thomas P. Au - Allyn and Bacon, Inc, Engineering
Economics for Capital Investment Analysis
• 7. PMI, Project Management Body of Knowledge

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Class rule
• Discuss about class rule

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Class rule
Be on time
Concentrate
Listen to the teacher
Listen to others
Put your hand up if you want to speak / answer.
Use kind words.
Finish our work on time.
Complete exercises, homework

• Follow directions from others.

• Always tell the truth.
• Share with others.
• Keep the classroom tidy.
• Tidy the classroom when we have finished working.
• Always work hard.
• Be happy.
• Try to make others happy.
• Smile!

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Chapter 1: FUNDAMENTAL CONCEPTS

• What is investment?

Chapter 1: FUNDAMENTAL CONCEPTS

• What is project?

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What is investment?
• Money committed or property acquired for future income
• In an economic sense, an investment is the purchase of goods
that are not consumed today but are used in the future to
create wealth. In finance, an investment is a monetary asset
purchased with the idea that the asset will provide income in
the future or will later be sold at a higher price for a profit

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1.1 What is project?

• A project is a temporary endeavor undertaken to create a
unique product, service, or result
◦ A unique product: a component of another item (an enhancement or
correction to an item), a new item
◦ A unique service or a capability to perform a service: a business
function that supports production or distribution
◦ A unique result: an outcome or document
◦ A unique combination of one or more products, services, or results (a
software application, its associated documentation and help desk
services)

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What is project?
• Temporary endeavor:
◦ Have a definite beginning and end
◦ Not mean short duration

• Project end:
◦ The objectives been achieved
◦ The objectives not be met
◦ Out of funding
◦ No need of project
◦ Out of resources (human and physical)
◦ Be terminated for legal cause or convenience

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What is project?
• one-off, creating something unique, are temporary
• have specific start and end dates
• have limited resources
• involve uncertainty
• and implement change.

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• Example of projects
• Differences between Projects and Ongoing operations

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Ongoing operations
• Repeat tasks staff are already familiar with
• have resources permanently assigned to them
• and are the day-to-day duties of a workplace.

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• Why we need project/

• Project come from?

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Projects come from?

• From outside of the organization
◦ Customer needs; market demands
◦ Regulator and social requirements;
• From inside of the organization
◦ Business strategy or technology advancement
◦ Improve or fix products, processes, or services.

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Project, Program, Portfolio

• Program: group of related projects, subsidiary programs, and
program activities that are managed in a coordinated manner
to obtain benefits not available from managing them
individually
• Portfolio: a collection of projects, programs, subsidiary
programs, and operations managed as a group to achieve
strategic objectives

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1.2 Project influences

• Two major categories of influences: Enterprise environmental
factors (EEFs) & Organizational process assets (OPAs).
• EEFs:
◦ The environment outside of the project and often outside of the
enterprise.
◦ An impact at the organizational, portfolio, program, or project level.
• OPAs:
◦ Internal to the organization.
◦ Arise from the organization itself, a portfolio, a program, another
project, or a combination of these.

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Project influences

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1.2.1 Enterprise environmental factors (EEFs)

• conditions, not under the control of the project team, that
influence, constrain, or direct the project
Internal External
• Organizational culture, structure, • Marketplace conditions.
and governance. • Social and cultural influences and
issues.
• Geographic distribution of
• Legal restrictions.
facilities and resources. • Commercial databases.
• Infrastructure • Academic research.
• Information technology software. • Government or industry standards.
• Resource availability. • Financial considerations.
• Employee capability. • Physical environmental elements.

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Organizational structure
• Types of organization structure
◦ Projectized
◦ Functional
◦ Matrix
◦ Strong Matrix
◦ Weak Matrix
◦ Balanced Matrix

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Projectized
• All activities are managed through
the projects
• Projectized organizations are
dynamic and adaptive.
• Project managers have full authority
over project resources.
• Project managers have full-time team
members under their control.
• Team members are often collocated
for better performance until the
project ends.
• When the project is completed, the
team is disbanded, and resources are
released

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Projectized
Advantages Disadvantages
• Lack of professionalism in
specialization areas
• Efficient project organization
• No “home” when projects are
• Project loyalty
completed
• Simplified communications
• Duplication of facilities and job
functions

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Functional
• The “project manager” is
◦ usually a team member within a
functional area
◦ not have the title of project manager.
• The functional manager will
control the budget and the
“project manager” will act
more as a coordinator or
expediter of project activities
rather than having true project
management responsibilities

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Functional
Advantages Disadvantages
• More than one boss for project
• Clear career paths in
team members
specialization areas
• Resource allocation is
• Team members report to one
challenging
supervisor
• Potential for conflict between
• Easier specialist management
functional and project managers

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Matrix
• Employees report to two or
more managers rather than
one manager overseeing
every aspect of a project
• Weak matrix organization
◦ is most similar to a Functional.
◦ The project manager’s role might
be more of a: Project Expediter
or
Project Coordinator

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Matrix
• Balance matrix
organization
◦ More authority is given to
the project manager.
◦ There is still a functional
manager who is the primary
authority, employees also
report to the project
manager.

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Matrix
• A strong matrix
organization
◦ Provides the project manager
with equal or more power
than the functional manager.
◦ The project manager has
primary control over
resources and distribution of
tasks

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Matrix
Advantages Disadvantages
• Improved project manager control
• More than one boss for project team
over resources
members
• Project objectives are supported in
• Resource allocation is challenging
the organization
• Potential for conflict between
• More support from functional
functional and project managers
organization

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Project Management Office (PMO)

• An organizational structure that standardizes the project-related governance processes and
facilitates the sharing of resources, methodologies, tools, and techniques
• A primary function of a PMO is to support project managers in a variety of ways, there are
several types of PMOs:
Type of PMO Supportive Controlling Directive

Degree of
Low Moderate High
Control
Supplying
Compliance to
templates, best Directly managing
specific templates,
practices, training, the projects.
Roles and forms, and tools;
responsibility access to Project managers
and conformance
information, and are assigned by and
to governance
lessons learned report to the PMO.
frameworks.
from other projects.

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1.2.2 Organizational Process Assets

• Organizational process assets (OPAs) are
◦ Processes, policies, and procedures; and
◦ Organizational knowledge bases.
• OPAs include any artifact, practice, or knowledge from any or
all of the performing organizations involved in the project that
can be used to execute or govern the project.
• Since OPAs are internal to the organization, the project team
members may be able to update and add to the organizational
process assets as necessary throughout the project.

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Organizational Process Assets

Processes, Procedures and Organizational Knowledge base
Policies
Financial Databases
• Processes Historical information
• Procedures Lessons learned
• Policies Issue and defect databases

Not be updated as a part of the project

Updated throughout the project
work

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1.3 Project Life cycle

• A project life cycle is the series of phases that a project passes
through from its start to its completion
• There are many different types of project life cycles,
depending on the industry , or on the organization’s
preferences.
• Ex:
◦ IT Project: Requirement -> Design -> Program -> Test -> Implement
◦ Energy project: Initiate -> Construct-> Operate - > Close

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Project Life Cycle

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Project Phases
• A project phase is a collection of logically related project
activities that culminates in the completion of one or more
deliverables
• A phase gate is held at the end of a phase
◦ a decision is made to continue to the next phase, to continue with
modification, or to end a project or program.
◦ Maybe referred to by other terms: Phase review, stage gate, kill point,
phase entrance or phase exit.
◦ Decision made maybe: Go, Hold, Kill, Recycle...

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Types of project life cycle

• Predictive life cycle: the project scope, time, and cost are determined in
the early phases of the life cycle. Any changes to the scope are carefully
managed. Predictive life cycles may also be referred to as waterfall life
cycles.
• We can predict the final product, and we know how we have to work to
deliver the right product (example: producing a T-shirt)

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Types of project life cycle

• Iterative life cycle: the project scope is generally determined
early in the project life cycle, but time and cost estimates are
routinely modified as the project team’s understanding of the
product increases. Iterations develop the product through a series
of repeated cycles, while increments successively add to the
functionality of the product.
• The goal is to take frequent feedbacks before reaching the final
product.
• Real feedback comes when the customer and other stakeholders
can see some deliverable or part of the product and helps the team
to learn about the customer’s and other stakeholder’s expectations

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Iterations - Example: software

project
• 5 iterations
• Each iteration will execute Planning, Analysis, Design,
Code, testing phases, and deliver the result at the end
of the iteration.
• This delivered result be shown to give a feel for the
final product to encourage a discussion of a product
that will really solve the problem

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Types of project life cycle

• Incremental life cycle: the deliverable is produced through a series
of iterations that successively add functionality within a
predetermined time frame. The deliverable contains the necessary
and sufficient capability to be considered complete only after the
final iteration.
• Example: develop an e-commercial website with some functions.
◦ Develop each function separately in separate steps.
◦ Step 1: customer can see and search the goods
◦ Step 2: customer can order online
◦ Step 3: customer can order and pay online (by credit/debit cards)
◦ Step 4: customer can order, pay (by cards and e-wallet)
◦ Step 5: customer can order, pay, track and give feedback

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Types of project life cycle

• Adaptive life cycles are agile, iterative, or incremental. The
detailed scope is defined and approved before the start of an
iteration. Adaptive life cycles are also referred to as agile or
change-driven life cycles
• This life cycle is a mix of iterative and incremental
development. We add features incrementally, but they can be
changed based on received feedback.

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Types of project life cycle

• A hybrid life cycle is a combination of a predictive and an
adaptive life cycle. Those elements of the project that are well
known or have fixed requirements follow a predictive
development life cycle, and those elements that are still
evolving follow an adaptive development life cycle

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Characteristic of Project Life Cycle

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• What is project management?

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1.4 What is project management?

• Project management is the application of knowledge, skills,
tools, and techniques to project activities to meets the project
requirements.
• Good project management:
◦ Meet business objectives
◦ Manage constraints (scope, quality, schedule, costs, resources)
◦ Resolve problems and issues

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What is project management?

• Poorly managed projects or no project management:
◦ Missed deadlines
◦ Cost overrun
◦ Poor quality
◦ Rework
◦ Uncontrolled expansion of the project
◦ Failure in achieving the objectives
◦ Unsatisfied stakeholders

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Project management processes

• Project management process produces one or more outputs
from one or more inputs by using appropriate project
management tools and techniques. The output can be a
deliverable or an outcome
• The output of one process
◦ An input to another process, or
◦ A deliverable of the project or project phase

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Project management processes

• Processes generally fall into one of three categories:
◦ Processes used once or at predefined points in the project: Develop
Project Charter and Close Project or Phase
◦ Processes that are performed periodically as needed: Acquire
Resources
◦ Processes that are performed continuously throughout the project:
Define Activities

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Project management processes

• Group of Project management process
◦ Initiating Process Group: performed to define a new project or a new
phase of an existing project by obtaining authorization to start the
project or phase.
◦ Planning Process Group: required to establish the scope of the project,
refine the objectives, and define the course of action required to attain
the objectives that the project was undertaken to achieve.
◦ Executing Process Group: performed to complete the work defined in
the project management plan to satisfy the project requirements.

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Project management processes

• Group of Project management process
◦ Monitoring and Controlling Process Group: required to track,
review, and regulate the progress and performance of the project;
identify any areas in which changes to the plan are required; and initiate
the corresponding changes.
◦ Closing Process Group: performed to formally complete or close the
project, phase, or contract.

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Project management knowledge Areas

• Ten Knowledge Areas:
◦ Project Integration Management: the processes and activities to
identify, define, combine, unify, and coordinate the various processes
and project management activities within the Project Management
Process Groups.
◦ Project Scope Management: the processes required to ensure the
project includes all the work required, and only the work required, to
complete the project successfully.
◦ Project Schedule Management: the processes required to manage the
timely completion of the project.

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Project management knowledge Areas

• Ten Knowledge Areas:
◦ Project Cost Management: the processes involved in planning, estimating,
budgeting, financing,
funding, managing, and controlling costs so the project can be completed
within the approved budget.
◦ Project Quality Management: the processes for incorporating the
organization’s quality policy
regarding planning, managing, and controlling project and product quality
requirements, in order to meet
stakeholders’ expectations.
◦ Project Resource Management: the processes to identify, acquire, and
manage the resources needed
for the successful completion of the project.

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Project management knowledge Areas

• Ten Knowledge Areas:
◦ Project Communications Management: the processes required to
ensure timely and appropriate planning, collection, creation,
distribution, storage, retrieval, management, control, monitoring, and
ultimate disposition of project information.
◦ Project Risk Management: the processes of conducting risk
management planning, identification, analysis, response planning,
response implementation, and monitoring risk on a project.
◦ Project Procurement Management: the processes necessary to
purchase or acquire products, services, or results needed from outside
the project team.

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Project management knowledge Areas

• Ten Knowledge Areas:
◦ Project Stakeholder Management: the processes required to identify
the people, groups, or organizations that could impact or be impacted
by the project, to analyze stakeholder expectations and their impact on
the project, and to develop appropriate management strategies for
effectively engaging stakeholders in project decisions and execution
• In some fields, knowledge areas include financial, safety and
health management (example: construction)

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