Project Management Framework

The Project Management Framework

• Introduction

• Project Life Cycle and Organization

• Project Management Process for a Project

 References for PMP Study

This course is using following resources as references:

• A Guide to The Project Management Body of Knowledge (PMBOK Guide)

Fourth Edition
© 2008 PMI

• PMP Exam Prep, Rita’s Course in a Book for passing the PMP Exam
Sixth Edition
© 2009 Rita Mulcahy, PMP
1 – INTRODUCTION
What is Project?

A Project is a temporary endeavor undertaken to create a unique,

product, service, or result.

– Temporary = a definite beginning and end.

– Repetitive elements may be present but has fundamental
uniqueness
– Is progressively elaborated.
• Distinguishing characteristics of each unique project will be
progressively detailed as the project is better understood.
Project Attributes

• A project:
– Has a unique purpose
– Is temporary
– Is developed using progressive elaboration
– Requires resources, often from various areas
– Should have a primary customer or sponsor
• The project sponsor usually provides the direction and funding
for the project
– Involves uncertainty
Project vs. Operational Work
Projects
• To attain its objectives and terminate
• Create own character, organization, and
goals
• Catalyst for change
• Unique product or services
• Heterogeneous teams
• Start and end date
Examples
• Producing a News letter
• Writing and publishing a book
• Implementing a LAN
• Hiring a sales man
• Arrange for a conference
• Opening for a new shop
• Producing the annual report
Operations
• To sustain the business
• Semi permanent charter, organization,
and goals
• Maintain status quo
• Standard product or services
• Homogeneous teams
• Ongoing
Examples
• Responding to customers requests
• Writing a letter to a Prospect
• Hooking up a Printer to a computer
• Meeting with an employee
• Attending a conference
• Opening the shop
• Writing a progress update memo
 What is Project Management?
• The application of knowledge, skills, tools and technique to project activities to
meet project requirements

• Project Management is accomplished through the application and integration of

the processes which are grouped in the 5 process groups:
1. Initiating
2. Planning
3. Executing
4. Monitoring and Controlling
5. Closing
 Managing Project
• The Project Manager is the person responsible for accomplishing the project
objectives.

• Managing a project includes:

– Identifying requirements.
– Establishing clear and achievable objectives.
– Balancing the competing demands of quality, scope, time and cost.
– Adapting the specifications, plans, and approach to the different concerns and
expectations of the various stakeholders.

•
 Project Constraints
• Every project is constrained in different ways by its:
– Scope
– Schedule/Time
– Cost/Budget
– Quality
– Resources
– Risk
The Triple Constraint
or
The Trade-off Triangle
SCOPE/QUALITY

• If any one factor changes, at least one other factor is likely to be affected.
• It is the project manager’s duty to balance these competing constraints.
 Projects and Strategic Planning
• Projects are means of
– Achieving organization’s strategic plan.
– Organizing activities that cannot be addressed within the organizations normal
operational limits.

• Projects are typically authorized as a result of one or more of the following

strategic considerations:
 Market demand
 Strategic opportunity/business need
 Customer request
 Technological advancement
 Legal requirements
 Ecological Impacts
 Social need
Project Management Framework
Project Management Knowledge Areas
Four core knowledge areas lead to specific project objectives.

– Project scope management involves defining and managing all the work required to
complete the project successfully.

– Project time management includes estimating how long it will take to complete the
work, developing an acceptable project schedule, and ensuring timely completion of
the project.

– Project cost management consists of preparing and managing the budget for the
project.

– Project quality management ensures that the project will satisfy the stated or implied
needs for which it was undertaken.
 Project Management Knowledge Areas
• Four facilitating knowledge areas are.

– Project human resource management is concerned with making effective use of the
people involved with the project.
– Project communications management involves generating, collecting, disseminating,
and storing project information.
– Project risk management includes identifying, analyzing, and responding to risks
related to the project.
– Project procurement management involves acquiring or procuring goods and
services for a project from outside the performing organization.

• One knowledge area (project integration management) affects and is affected

by all of the other knowledge areas.
 Project Management Tools and Techniques
• Project management tools and techniques assist project managers and their
teams in various aspects of project management.

• Note that a tool or technique is more than just a software package.

• Specific tools and techniques include:

• Project charters, scope statements, and WBS (scope)
• Gantt charts, network diagrams, critical path analyses (time)
• Net present value, cost estimates, and earned value management (cost)
 Project Success
• There are different ways to define project success:

– The project met scope, time, and cost goals.

– The project satisfied the customer/sponsor.

– The project produced the desired results.

Relationships Among Project Management,
Program Management and Portfolio Management

– Project Management
– Program Management
– Portfolio Management
Portfolio

– Project Management Office

Program

PMO
Projects & Operation
 What is a Program?

A program is:
• “a group of related projects managed in a coordinated way to obtain benefits and
control not available from managing them individually.”
• A program manager provides leadership and direction for the project managers
heading the projects within the program.

• ADVANTAGES
– Decreased risk
– Economies of Scale
Portfolios and Portfolio Management

• A portfolio is a collection of projects or programs and other work

that are grouped together to facilitate effective management of that
work to meet strategic business objectives.

• Portfolio managers help their organizations

– make wise investment decisions
– by helping to select and analyze projects from a strategic perspective
Comparative Overview
Projects and Strategic Planning

• Projects are means of organizing activities that cannot be addressed

within the organizations normal operational limits.

• Projects are typically authorized as a result of one or more of the

following strategic considerations:
– A Market Demand & Organizational Need
– A Customer Request
– A Technological Advancement
– A Legal Requirement
Subprojects

• Projects are frequently divided into more manageable components

or subprojects.

– Subproject are often contracted to an external enterprise or to

another functional unit in the performing organization.
– Subprojects can be referred to as projects and managed as
such
PMO

• A department that centralizes the management of projects.

A PMO usually takes one of three roles:

– Project Support: Provide project management guidance to project

managers in business units.
– Project Management Process/Methodology: Develop and
implement a consistent and standardized process.
– Training: Conduct training programs or collect requirements for an
outside company
Primary Function of PMO

• A Primary function of PMO is to support project managers in a

variety of ways which may include, but are not limited to:
– Managing shared resources across all the projects administered by the PMO
– Identifying and developing project management methodology, practices &
standards
– Coaching, mentoring , training and oversight
– Monitoring compliance with project management standard policies, procedures ,
and templates via project audits .
– Developing and managing project policies, procedures, templates, and other
shared documentation ( organizational process assets); and
– Co coordinating communication across projects
Project Management Office (PMO) – Cont’d

• Home for project managers: Maintain a centralized office from which project
managers are loaned out to work on projects.

• Internal consulting and mentoring: Advise employees about best

practices.

• Project management software tools: Select and maintain project

management tools for use by employees.

• Portfolio management: Establish a staff of program managers who can

manage multiple projects that are related, such as infrastructure technologies,
desktop applications and so on, and allocate resources accordingly.
 Role of a Project Manager
• The Project Manager is the person responsible for accomplishing the project
objectives.

• Project managers strive to meet the triple constraint by balancing project scope,
time, and cost goals

• Depending on the organization structure , a project manager may report to

functional manager.

• In other cases project manager may be one of the several project managers who
report to a portfolio or program manager that is ultimately responsible for enterprise
wide projects . In this type of structure, the project manager works closely with the
portfolio or program manager to achieve the project objectives
 Project Expediter and Coordinator
• Project manager’s role can very limited

• Project Expediter
– acts primarily as a staff assistant
– as communications coordinator.
– cannot personally make or enforce decisions.

• Project Coordinator
– has some power to make decisions
– Has some authority
– reports to a higher-level manager
 Stakeholders
• Stakeholders are persons or organizations who are actively involved in the
project or whose interests may positively or negatively affected by the
performance or completion of the project.

• Stakeholders have varying levels of responsibility and authority and can

change over the project life cycle

• Project management team must continuously identify both external and internal
stakeholders

• Project manager must manage the influence of various stakeholders in relation

to the requirements and balance stakeholders’ interest
Stakeholders
Some examples of project stakeholders
 Enterprise Environmental Factors
• Refer to both internal & external environmental factors that surround or
influence a project’s success
• As an input in almost all project management process
• May enhance or constrain project management options
• May have positive or negative influence on the outcome
• Examples:
 Organizational culture, structure,  Stakeholder risk tolerances
and processes  Political climate
 Government or industry standards  Organization’s established
 Infrastructure communications channels
 Existing human resources  Commercial databases
 Personnel administration  Project management information
 Company work authorization
systems
 Marketplace conditions
2 – PROJECT LIFE CYCLE AND
ORGANIZATION
 The Project Life Cycle

• The project life cycle is the agglomeration of all phases in the

project
– All projects are divided into phases, and all projects, large or
small, have a similar life cycle structure.: Starting the project ,
organizing and preparing , carrying out the project work and
closing the project
– At a minimum, project will have a beginning or initiation phase, an
intermediate phase or phases, and an ending phase.
• Each phase has a defined endpoint
Characteristics of Project Life Cycle
• Cost and staffing levels are low at the start,
peak as the work is carried out, and drop
rapidly as the project draws to a close.

• Stakeholder influences, risk, and

uncertainty, are greatest at the start of the
project. These factors decrease over the life
of the project.

• Ability to influence the final

characteristics of the project’s product,
without significantly impacting cost, is
highest at the start of the project and
decreases as the project progresses towards
completion.
…or…
The cost of changes and correcting errors
typically increases substantially as the project
approaches completion.
Project Phases and the Project Life Cycle

• A project life cycle is a collection of project phases that defines:

– What work will be performed in each phase
– What deliverables will be produced and when
– Who is involved in each phase
– How management will control and approve work produced in each phase

• A deliverable is a product or service produced or provided as part

of a project
Handoffs

• Project phases evolve through the life cycle in a series of phases

sequences called handoffs, or technical transfers. The end of one
phase sequence typically marks the beginning of the next.
Phase-to-Phase Relationships

• There are three basic types of phase–to–phase relationships :

– A Sequential relationship : where a phase can only start once
the previous phase is complete

– An Overlapping relationship : where the phase starts prior to

completion of the previous one (Fast tracking). Overlapping phase
may increase risk and can result in rework .

– An Iterative relationship : where only one phase is planned at

any given time and the planning for the next is carried out as work
progresses on the current phase and deliverables
Organizational Influences

• Some organizational aspects that influence how project are

performed:
– Culture and style (Cultural norms)
– Organizational structure
– Degree of project management maturity
– Project management systems
Types of Organizational Structures (1)
Functional
• Organization is grouped by
areas of specialization
• Project generally occur within a
single department

Projectized
• Entire company is organized by
projects
• Personnel are assigned and
report to a project manager
Types of Organizational Structures (2)
Weak Matrix
• Power rest with the functional
manager
• Power of project manager =
coordinator or expediter

Balanced Matrix
• Power is shared between the
project manager and the
functional manager
Types of Organizational Structures (3)
Strong Matrix
• Power rest with the project
manager

• Composite
Organizational Structure

Influences of organizational structure on projects

Organizational Structure
Advantages
Functional • Easier management of specialists
• Team members report to only one
supervisor
• Similar resources are centralized, as the
company is grouped by specialties
• Clearly defined career paths in areas of
work specialization
Projectized • Efficient project organization
• Loyalty to the project
• More effective communication than
functional
Matrix • Highly visible project objectives
• Improved project manager control over
resources
• More support from functional area
• Maximum utilization of scarce resources
• Better coordination
Disadvantages
• People place more emphasis on their
functional specialty to the detriment of the
project
• No career path in project management
• The project manager has little or no authority
• No “home” when project is completed
• Lack of professionalism in disciplines
• Duplication of facilities and job functions
• Less efficient use of resources
• Extra administration is required
• More than one boss for project teams
• More complex to monitor and control
• Tougher problems with resource allocation
• Need extensive policies and procedures
 Organizational Process Assets
• Processes & Procedures
– Organizational standard processes such as standards, policies
– Standardized guidelines, work instruction, proposal evaluation criteria, and
performance measurement criteria
– Templates
– Financial control procedures
– Procedures for prioritizing, approving, and issuing work authorization
– Etc.
• Corporate Knowledge Base
– Process measurement databases
– Project files
– Historical information & lesson learned knowledge bases
– Issue and defect management databases
– Configuration management knowledge bases
– Financial databases
– Etc.
3 – PROJECT MANAGEMENT PROCESS
 Project Management Process
• Two categories of project process:
– Product-oriented process
 should be considered in project but not explained in PMBOK
– Project management process

Monitoring &
Controlling Processes
Planning
Processes

Enter phase/ Initiating Closing Exit phase/

Start project Processes Processes End project

Executing
Processes

Project
Boundaries
Process Interaction

I P
• Project management
E processes are
represented as discrete
elements with well-defined
M&C C interface

• In practice, they overlap

and interact
 Process Groups & Knowledge Areas Mapping
Process
Knowledge Area
Initiating Planning Executing Monitoring & Control Closing
Integration Develop Project Develop Project Management Plan Direct and Manage Project Monitor and Control Project Work Close Project
Charter Execution Perform Integrated Change Control

Scope Collect Requirements Verify Scope

Define Scope Control Scope
Create WBS
Time Define Activities Control Schedule
Sequence Activities
Estimate Activities Resources
Estimate Activities Duration
Develop Schedule
Cost Estimate Costs Control Costs
Determine Budget
Quality Plan Quality Perform Quality Assurance Perform Quality Control

Human Develop Human Resources Plan Acquire Project Team

Resource Develop Project Team
Manage Project Team
Communication Identify Plan Communications Distribute Information Report Performance
Stakeholders Manage Stakeholders Expectations

Risk Plan Risk Management Monitor and Control Risks

Identify Risk
Perform Qualitative Risk Analysis
Perform Quantitative Risk Analysis
Plan Risk Response
Procurement Plan Procurements Conduct Procurements Administer Procurements Close
Procurements