What is Project Management?

It is the application of knowledge, skills, tools and techniques to project activities to

fulfill the project's requirements.

It is the art of Organizing, Leadership, reporting and completing the project with the
team.

Why Do We Need Project Management?*

•Exponential increase in human knowledge

•Global demand for Products and Services
•Global Competition
• The need to use teams rather than individuals in order to realize these items

*Project Management—A Managerial Approach,1995, by Jack R. Meredith and Samuel J. Mantel Jr.
Benefits of Project Management

• Project Managers are well equipped with the knowledge and tools
to successfully deliver project products on time.

•This creates customer satisfaction and improves customer relations.

•Total cost is reduced and timely delivery is more assured.

•Stress in the work environment decreases and morale rises.

Examples of Projects
Projects can be large or small and involve one person or thousands of people. They
can be done in one day or take years to complete.
Examples of projects include the following: A young couple hires a firm to design and
build them a new house.
A retail (selling) store manager works with employees to display a new clothing line.
A college campus upgrades its technology infrastructure to provide wireless internet
access.
A construction company designs and constructs a new office building for a client.
A school implements new government standards for tracking student achievement.
A group of musicians starts a company to help children develop their musical talents.
A pharmaceutical company launches a new drug.
A television network develops a system to allow viewers to vote for contestants and
provide other feedback on programs.
The automobile industry develops standards to streamline procurement.
A government group develops a program to track child immunizations.
Program and Portfolio Management
Portfolio

It is a collection of projects, programs, sub-portfolios and operations

managed as a whole to achieve strategic objectives.

Program
It forms a group within the portfolio and consists of subprograms,
projects, or other work that supports the portfolio and is managed in a
coordinated manner.
RELATIONSHIP OF PROJECT, PROGRAM, PORTFOLIO, AND OPERATIONS MANAGEMENT
Using project management processes, tools, and techniques puts in place a sound foundation for
organizations to achieve their goals and objectives. A project may be managed in three separate
scenarios:
 as a stand-alone project (outside of a portfolio or program),
 within a program, or
 within a portfolio.
Project managers interact with portfolio and program managers when a project is within a program or
portfolio. For example, multiple projects may be needed to accomplish a set of goals and objectives for
an organization. In those situations, projects may be grouped together into a program.
A program is defined as a group of related projects, subsidiary programs, and program activities
managed in a coordinated manner to obtain benefits not available from managing them individually.
PROGRAM MANAGEMENT
Program management is defined as the application of knowledge, skills, and principles to a
program to achieve the program objectives and to obtain benefits and control not available
by managing program components individually.

A program component refers to projects and other programs within a program. Project
management focuses on interdependencies within a project to determine the optimal
approach for managing the project. Program management focuses on the interdependencies
between projects and between projects and the program level to determine the optimal
approach for managing them.

PORTFOLIO MANAGEMENT
A portfolio is defined as projects, programs, subsidiary portfolios, and operations managed as
a group to achieve strategic objectives.
Portfolio management is defined as the centralized management of one or more portfolios to
achieve strategic objectives. The programs or projects of the portfolio may not necessarily be
interdependent or directly related.
PORTFOLIO MANAGEMENT

Maximizing the value of the portfolio requires careful examination of the components.
Components are ordered so that those contributing the most to the organization’s
strategic objectives have the required financial, team, and physical resources.

For example, an infrastructure organization 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
organization may choose to manage related projects as one portfolio. All of the power
projects may be grouped together as a power portfolio. Similarly, all of the water
projects may be grouped together as a water portfolio. However, when the
organization has projects in designing and constructing a power plant and then
operates the power plant to generate energy, those related projects can be grouped in
one program. Thus, the power program and similar water program become integral
components of the portfolio of the infrastructure organization.
PORTFOLIO and PROGRAM RELATIONSHIP
HISTORY of PROJECT MANAGEMENT

1917-GANTT CHART
Dam (Arizona)
History of Project Management–1940’s
Project
HISTORY of PROJECT MANAGEMENT- 1950’s
Military weapon systems and startups
project complicated by the space race
needs.

Program Evaluation and Review

Technique (PERT) instead of Gantt
Chart
(Polaris Missile Program)

Critical Path Method (CPM)

HISTORY of PROJECT MANAGEMENT- 1960’s

Earned Value method

developed for the U.S.
defence projects by
economists

Usage of Work Breakdown

Structure (WBS) methods
HISTORY of PROJECT MANAGEMENT- 1970’s

Project Management Institute (PMI)

was established. (1969)

The use of tools of Modern project

management in the construction
industry has increased rapidly.

KAI-ZEN system practiced in Japan

system (change for better) was used to
produce high-quality products at
competitive prices.
HISTORY of PROJECT MANAGEMENT- 1980’s

 Successful quality control methods and

Total Quality Management was created by
examining the quality methods in Japan.

 Risk management is taken as a part of

project management.

 Project Management Institute, published

PMBOK (Project Management Knowledge
Guide)
History of Project Management -1990s

Development of quality methods such as

ISO 9000, Lean manufacturing and Six
Sigma. (6s: Statistical training based
approach)

Compliance with the strategic plan

Project networks (portfolio and program

management)

Development of organizational project

management maturity model.
History of Project Management -2000s
Distribution of Project Management knowledge to
everyone and every field

Project Managers' need for more business

management knowledge in the field of budget and
finance

The increasing importance of Human Resources,

the value placed on the workforce, role modeling
and leadership skills become key for PM

Ability to adapt to change, change management

Declining PY education to primary education
HISTORICAL EXAMPLES

(7.6 m)
(For ex. GAP Watering Project)
GAP (Southeast
Anatolia) Water
Chanels Project

Solar Energy
Project
Wind vanes
A project is an investment made on a package of interrelated time bound activities;
consequently, a project becomes a time-bound task.

Every project has two phases basically; the first is preparation and construction,
and the second, its operation.

Project planning deals with specified tasks, operations or activities which must be
performed to achieve the Project goals.

Any project that we may consider has an objective, or a set of objectives, to achieve. It
has to be operated within a given set of rules, regulations, constraints and restrictions.

Implementation (application) of projects needs resources or inputs. Every project

converts the given inputs into outputs through a process of implementation. The outputs
in the short run lead to outcomes, which, in the long run, should result in impact.
Monitoring
and
Controlling