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Project Management Fundamentals

13/8/2005

© ITC Infotech India Ltd

Presented by Niladri Mallick Choudhuri PMP Project Manager ITC Infotech India Ltd.

A Project
Organizations perform work
Could be classified into either operations or projects Similar Characteristics - People perform the activities; Constrained by limited resources; Planned, executed, and controlled Differences - Operations are ongoing and repetitive whereas Projects are temporary and unique

A project is a temporary endeavor undertaken to create a unique product or service
Projects - may involve a single person or many thousands, their duration ranges from a few weeks to a few years, may involve a single unit of one organization or may have cross-organizational boundaries

Project Management
Project management is the application of knowledge, skills, tools, and techniques to project activities to meet project requirements
Accomplished through the use of the following 5 processes: Initiation, Planning, Execution, Controlling and Closure Management of various activities : Competing demands for scope, time, cost, risk, and quality; Managing expectations of stakeholders and Identifying requirements “The more you know about your project, the better you are able to manage it“ - many of the processes are iterative in nature - existence of and the necessity for progressive elaboration throughout the PLC

Scope & Quality Increase in scope Vs Time. cost. Cost & Quality st Co Ti me Quality Scope “Adequate trade-offs with respect to time. Cost. Scope & Quality Decrease in Cost Vs Time. Scope & Quality constraints Decrease in duration Vs Cost. scope & quality are the three essential elements of any successful project manager” .Trade Off Time.

and schedule control. and cost control. Project Time Management Activity definition. execution. scope planning. cost budgeting. scope definition. activity duration estimating.PM Knowledge Areas Project Integration Management Project plan development. schedule development. quality assurance. and scope change control. Project Cost Management Resource planning. and integrated change control. and quality control . cost estimating. Project Quality Management Quality planning. Project Scope Management Initiation. scope verification. activity sequencing.

risk identification.. and administrative closure. performance reporting. solicitation planning. information distribution. Project Procurement Management Procurement planning. contract administration.PM Knowledge Areas (contd. qualitative risk analysis. Project Risk Management Risk management planning. solicitation. staff acquisition. and contract closeout. risk response planning. and risk monitoring and control. quantitative risk analysis. . source selection. Project Communications Management Communications planning.) Project Human Resource Management Organizational planning. and team development.

Project Characterizations Project Phases: Each phase marked by completion of one or more deliverables Helps in establishing the desired management control Conclusion of a project phase is marked by a review of both key deliverables and project performance to date Project Life Cycle: Serves to define the beginning and the end of a project Will determine which transitional actions at the beginning and the end of the project are included and which are not Will define what technical work should be done in each phase and who would be involved .

Ability of the stakeholders to influence the final characteristics: Highest at the start and gets progressively lower as the project continues .Project Characteristics Cost and staffing levels:Low at the start. and hence risk and uncertainty are highest. and drop rapidly as the project draws to a conclusion Probability of successfully completion: Lowest at start. higher toward the end.

Key General Mgmt. Resources . Formal and informal interactions. Internal and external interactions. or schedule . and schedule objectives. Contract terms and conditions. Aligning people. Presentation techniques. cost. Choice of media. cost. Writing style. Motivating and inspiring Communication: Written and oral listening and speaking. Assignments. Skills Leading: Establishing direction. Vertical and horizontal Sender-receiver models. Changes to scope. Meeting management techniques Negotiating: Scope.

Skills Problem Solving: Involves a combination of problem definition and decision-making Distinguishes between causes and symptoms Need not necessarily be technical Influencing the Organization: Ability to “get things done” Requires understanding of both formal and informal structures of the organizations Understanding of the mechanics of power and politics Understanding cross-cultural factors influencing the software industry .Key General Mgmt.

Process & Customizations Can be organized into five groups of one or more processes Initiating: authorizing the project or phase Planning: defining and refining objectives and selecting the best of the alternative courses of action Executing: coordinating people and other resources to carry out the plan Controlling: monitoring and measuring progress to identify variances from plan so that corrective action can be taken Closing: formalizing acceptance of the project or phase and bringing it to an orderly end. .

Mapping the Process Initiating Proje ct Integration Manage ment Proje ct Scope Manage ment Initiation Planning Project Plan Development Scope Planning Scope Definition Activity Definition Activity Sequencing Activity Duration Estimation Schedule Development Resource Planning Cost Estimating Cost Budgeting Exe cuting Project Plan Execution Controlling Integrated Change Control Scope Verification Scope Change Control Closing Proje ct Time Manage ment Schedule Control Proje ct Cost Manageme nt Proje ct Quality Manage ment Proje ct Human Resource Manage ment Proje ct Communications Manage ment Cost Control Quality Planning Organizational Planning Staff Acquisition Quality Assurance Quality Control Team Development Administrative Closure Proje ct Risk Manageme nt Communications Information Distribution Performance Reporting Planning Risk Management Planning Risk Identification Risk Monitoring and Qualitative Risk Control Analysis Quantitative Risk Analysis Risk Response Planning Procurement Planning Solicitation Source Selection Contract Administration Proje ct Procureme nt Manage ment Solicitation Planning Contract Closeout .

pull-me negotiation Inadequate design Shortchanged quality assurance Insufficient management controls Omitting necessary tasks from estimates Planning to catch-up later Research-oriented development .Classical Mistakes People Related Undermined motivation Weak personnel Process Related Optimistic schedules Insufficient risk management Product Related Requirements gold-plating Gilding the lily Feature creep Developer gold-plating Technology Related Silver-bullet syndrome Overestimated savings from new tools and methods Fad warning Switching tools in mid-project Lack of automated source-code control Uncontrolled problem employees Insufficient planning Adding people to a late project Customer-Developer friction Unrealistic expectations Politics over substance Wishful thinking Lack of effective project sponsorship Lack of stakeholder buy-in Lack of user input Abandonment of plan under pressure Wasted time during fuzzy front end Beware the pet project Shortchanged upstream activities Push-me.

Standards & Certifications PMP Project Management Professional PMI established in 1969 PMBOK® Guide approved by ANSI PRINCE PRojects IN Controlled Environments de facto standard used extensively by the UK Government Registered trademark of OGC Office of Government Commerce. UK .

PMO’s Office??? BUDGET B A D E F C F SCHEDULE RISKS # of Risks High Med BCWS_________ Original Schedule to Date________ Current State On track Behind On track Behind Current State Low Low Med High Impact DELIVERABLES % of Deliverables # of Resources Total Due to Date Completed on Time Completed Late Total Overdue Drowning Wading Treading RESOURCES ISSUES Percent Turnover Overtime Vacancies # of issues % of issues .Dash Boards.

Purpose of PMO’s Office Provide efficient support on project mgmt. efforts Essential component of future success of an organization Provide an infrastructure for tools and expertise in the area of project management Maintains a clearinghouse for project management best practices Provides an infrastructure for current project managers to deal with contingencies .

Goals…Objectives…Targets Goal : To set industry standards by way of achieving excellence Objectives: To improve divisional management performance Target: Finish current projects on time and within budget Attain formalized and consistent project management practices throughout the organization Reduce project overruns Improve resource allocation procedures Increase customer satisfaction Increase the delivery speed of projects PMO provides archival information to the project manager .

Business value focused Metrics showing project management value estimated at the organizational level Others summarized as a common set of metrics that are reported by each project team.Focus Area of PMO Project focused Collecting the metrics and acting upon them to improve the project management and product delivery processes. Organization scorecard focused Provides a sense for whether the organization is meeting its objectives for the year . PMO focused Collecting metrics that show how effective the PMO is at delivering its services.

Functionalities of PMO Data Clearinghouse Visibility Center Schedule and Record Meetings Budget and Cost Monitoring Documentation Materials and Equipment Team Building Communications Problem Solving Staffing Process Support Project Newsletter .

Stored Information at PMO Project portfolio management Best practices in project management PM standards and methods Project performance archives Consulting Mentoring Training Quantitative objectives for continuously improving enterprise project management processes .

Thank You .

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Appendix .

Managing Integration Project Plan Development Other planning outputs Historical information Organizational policies Constraints Assumptions Project planning methodology Stakeholder skills and knowledge Project management information system (PMIS) Earned value management (EVM) Project Plan Execution Project plan Supporting detail Organizational policies Preventive action Corrective action General management skills Product skills and knowledge Work authorization system Status review meetings Project management information system Organizational procedures Work results Change requests Integrated Change Control Project plan Performance reports Change requests Input Change control system Configuration management Performance measurement Additional planning Project management information system Project plan updates Corrective action Lessons learned Tools & Techniques Output Project plan Supporting detail .

Managing Scope Initiation Product description Strategic plan Project selection criteria Historical information Scope Planning Product description Project charter Constraints Assumptions Scope Definition Scope statement Constraints Assumptions Other planning outputs Historical information Scope Verification Work results Product documentation Work breakdown structure Scope statement Project plan Scope Change Control Work breakdown structure Performance reports Change requests Scope management plan Input Tools & Techniques Project selection Methods Product analysis Expert judgment Work breakdown structure Inspection templates Scope change control System Performance measurement Additional planning Scope changes Corrective action Lessons learned Adjusted baseline Output Project charter Project manager identified/assigned Constraints Assumptions Benefit/cost analysis Decomposition Alternatives identification Expert judgment Scope statement Work breakdown structure Formal acceptance Supporting detail Scope management plan Scope statement updates .

updates Schedule updates Corrective action Lessons learned Output Supporting detail Activity list updates Work breakdown structure updates .Managing Time Activity Definition Scope statement Historical information Constraints Assumptions Expert judgment Activity Sequencing Product description Mandatory dependencies External dependencies Milestones Activity Duration Estimation Activity list Constraints Assumptions Resource capabilities Historical information Identified risks Schedule Development Project n/w diagrams Activity duration estimates Resource Req Resource pool description Calendars Constraints Assumptions Leads and lags Risk Mgmt plan Activity attributes Schedule Control Project schedule Performance reports Change requests Schedule management plan Work breakdown structure Activity list Discretionary dependencies Resource requirements Input Decomposition Templates Tools & Techniques Precedence diagramming method (PDM) Arrow diagramming method (ADM) Conditional diagramming methods Network templates Expert judgment Analogous estimating Quantitatively based durations Reserve time (contingency) Mathematical analysis Duration compression Simulation Resource leveling heuristics Project management software Coding structure Schedule change control system Performance measurement Additional planning Project management software Variance analysis Activity list Project network diagrams Activity duration estimates Basis of estimates Activity list updates Project schedule Supporting detail Schedule Mgmt plan Resource req.

methods Cost budgeting tools and techniques Cost change control system Performance measurement Earned value management (EVM) Additional planning Computerized tools Tools & Techniques PM software Resource requirements Cost estimates Supporting detail Cost management plan Cost baseline Resource Planning Revised cost estimates Budget updates Corrective action Estimate at completion Project closeout Lessons learned Output .Managing Cost Resource Planning Work breakdown structure Historical information Scope statement Resource pool description Organizational policies Activity duration estimates Cost Estimating Work breakdown structure Resource requirements Resource rates Activity duration estimates Estimating publications Historical information Chart of accounts Risks Cost Budgeting Cost estimates Work breakdown structure Project schedule Risk management plan Cost Control Cost baseline Performance reports Change requests Cost management plan Input Expert judgment Alternatives identification Analogous estimating Parametric modeling Bottom-up estimating Computerized tools Other cost est.

Managing Quality Quality Planning Quality policy Scope statement Quality Assurance Quality management plan Results of quality control measurements Operational definitions Quality Control Work results Quality management plan Operational definitions Checklists Input Product description Standards and regulations Other process outputs Benefit/cost analysis Quality planning tools and techniques Inspection Quality audits Control charts Pareto diagrams Statistical sampling Flow-charting Trend analysis Quality improvement Quality improvement Acceptance decisions Rework Completed checklists Process adjustments Tools & Techniques Benchmarking Flow-charting Design of experiments Cost of quality Quality management plan Operational definitions Output Checklists Inputs to other processes .

Managing HR Organizational Planning Project interfaces Staffing requirements Staff Acquisition Staffing management plan Staffing pool description Recruitment practices Team Development Project staff Project plan Staffing management plan Performance reports External feedback Input Constraints Templates Human resource practices Negotiations Pre-assignment Procurement Team-building activities General management skills Reward and recognition systems Collocation Training Tools & Techniques Organizational theory Stakeholder analysis Role and responsibility assignments Project staff assigned Project team directory Performance improvements Input to performance appraisals Output Staffing management plan Organization chart .

Managing Communications Communications Planning Communications requirements Information Distribution Work results Communications management plan Project plan Performance Reporting Project plan Work results Other project records Administrative Closure Performance measurement documentation Product documentation Other project records Performance reporting tools and techniques Project reports Project presentations Input Communications technology Constraints Assumptions Communications skills Performance reviews Variance analysis Earned value analysis Information distribution tools and techniques Tools & Techniques Information retrieval systems Stakeholder analysis Information distribution methods Trend analysis Output Communications management plan Project records Project reports Project presentations Performance reports Change requests Project archives Project closure Lessons learned .

Managing Risk Ris k Manage me nt Planning Project charter Organization’s ris k mgmt. plan Work breakdown structure (WBS) Data precis ion Scales of probability and impact Ass umptions Planning meetings Documentation reviews Information-gathering techniques Checklists As sumptions analysis Diagramming techniques Ris k probability and impact Probability/impact ris k rating matrix Interviewing Sens itivity analysis Avoidance Transference Mitigation Acceptance Tools & Te chnique s Project ass umptions testing Decis ion tree analysis Data precis ion ranking Simulation Risk management plan Ris ks Triggers Inputs to other proces ses Output Overall ris k ranking for the Prioritized list of quantified project ris ks Probabilis tic analysis of the Lis t of prioritized risks project Probability of achieving the Lis t of risks for additional cos t and time objectives analys is and management Trends in quantitative risk analysis results Trends in qualitative ris k analys is results Risk response plan Res idual ris ks Secondary risks Contractual agreements Contingency reserve amounts needed Inputs to other process es Inputs to a revised project plan . policies Defined roles respons ibilities Stakeholder ris k tolerances Ris k Ide ntification Ris k management plan Project planning outputs Ris k categories Qualitative Ris k Ris k mgmt plan Identified risks Project s tatus Quantitative Ris k Analys is Risk management plan Identified ris ks Lis t of prioritized ris ks Lis t of risks for additional analysis and management Historical information Expert judgment Other planning outputs Ris k Re s pons e Planning Risk management plan List of prioritized risks Risk ranking of the project Prioritized list of quantified risks Probabilistic analysis of the project Probability of achieving the cost and time objectives List of potential res ponses Risk thresholds Risk owners Common ris k causes Trends in qualitative and quantitative ris k analysis results His torical information Project type Input Template for the org’s ris k mgmt.

Managing Procurement Procurement Planning Scope statement Product description Solicitation Procurement management plan Statement(s) of work Planning Solicitation Source Selection Procurement documents Proposals Qualified seller lists Evaluation criteria Contract Administration Contract Work results Seller invoices Contract Closeout Contract documentation Input Procurement resources Other planning outputs Market conditions Other planning outputs Constraints Assumptions Make-or-buy analysis Standard forms Expert judgment Bidder conferences Advertising Organizational policies Change requests Contract negotiation Weighting system Screening system Independent estimates Tools & Techniques Expert judgment Contract type selection Procurement management plan Contract change control Procurement audits system Performance reporting Payment system Procurement documents Proposals Evaluation criteria Statement of work updates Contract Correspondence Contract changes Payment requests Contract file Formal acceptance and closure Output Statement(s) of work .