PROJECT MANAGEMENT

TECHNIQUES

Prof. (Dr.) T. Muthukumar

M.Sc; M.C.A; M.B.A; M.Phil; Ph.D.

Professor – Business Analytics

XIME - Bangalore
Agenda

• Overview, Objectives and Activities

 What is a project?
Project – “a temporary endeavor undertaken to
create a unique product, service, or result.”
PMBOK® Guide
• A project requires an organized set of work
efforts.
• Projects require a level of detail that is
progressively elaborated upon as more
information is discovered.
• Projects are subject to limitations of time and
resources such as money and people.
• Projects have a defined beginning and ending.
 What is a project?

• A project has a unique combination of

stakeholders
stakeholders – “persons or organizations … that
are actively involved in the project, or whose
interests may be positively or negatively affected
by …the project.” PMBOK® Guide
 Project Management (PM)
• Project management includes work processes
that initiate, plan, execute, and close work
• Work processes require tradeoffs among the
scope, quality, cost, and schedule of the project
• PM includes administrative tasks for planning,
documenting, and controlling work
• PM includes leadership tasks for visioning,
motivating, and promoting work associates.
Project management – “the application of
knowledge, skills, tools and techniques to project
activities to meet project requirements.”
 History of Project Management
• PM emerged as a formal discipline in the
1950s
• Techniques for planning and controlling
schedules and costs were developed for huge
aerospace and construction projects in the
1950s and 1960s
• Early PM involved determining project
schedules based on project activities
• Manufacturing, research and development,
government, and construction projects refined
management techniques
 History of Project Management

• Software companies offered software for

planning and controlling project costs and
schedules in the 1980s and 1990s
• Risk management techniques for complex
projects have been applied to less complex
projects
• Communication and leadership have been
recognized as playing a major role in project
success
 What Makes Projects Different?
• Projects vs. operations
• Soft skills and hard skills
• Authority and responsibility
 Projects vs. Operations

• Projects are temporary

• Projects have both routine and unique
characteristics
• Operations consist of the ongoing work needed
to ensure that an organization continues to
function effectively
 Soft Skills and Hard Skills
• Soft skills include communication and
leadership activities.
• Hard skills include risk analysis, quality
control, scheduling, and budgeting work
• A successful project manager needs both soft
and hard skills along with the judgment of
when each is more necessary.
• Training, experience, and mentoring are
instrumental in developing necessary skills.
 Authority and Responsibility

• Projects are most effectively managed with

one person being assigned accountability
• Project managers negotiate with functional
managers
• A project manager needs to develop strong
communication and leadership skills in order
to persuade subordinates to focus on the
project when other work also beckons.
Functional manager – “someone with management
authority over an organizational unit.… The manager of
any group that actually makes a product or performs a
 Project Life Cycle
• All projects go through predictable stages
called a project life cycle.
• Life cycle allows for control to assure that the
project is proceeding in a satisfactory manner
and that the results are likely to serve its
customer’s intended purpose
Project life cycle – “a collection of generally sequential
project phases whose name and number are determined
by the control needs of the organization or organizations
involved in the project.” PMBOK® Guide
customer – “the person or organization that will use the
project’s product or service or result.” PMBOK® Guide
 Project Life Cycle Stages

• Initiating—when a project is proposed,

planned at a high level, and key participants
commit to it in broad terms
• Planning—starts after the initial commitment,
includes detailed planning, and ends when all
stakeholders accept the entire detailed plan
• Executing—includes authorizing, executing,
monitoring, and controlling work until the
customer accepts the project deliverables
• Closing—all activities after customer
acceptance to ensure project is completed,
lessons are learned, resources are reassigned,
and contributions are recognized.
 Project Life Cycle Stages
• Most companies insist that a project must pass
an approval of some kind to move from one
stage to the next
• The project life cycle is highly formalized and
very specific
Project Life Cycle Stages
Life Cycle for Quality Improvement Projects
 Project Goals and Constraints

• Projects are undertaken to accomplish specific

goals
• Scope and quality measure performance and
should result in outputs that satisfy customers
• Consider scope and quality subject to
constraints of time and cost
Scope – “the sum of all products, services, and results to
be provided by the project.” PMBOK® Guide

Quality – “the degree to which a set of inherent

characteristics fulfills requirements.” PMBOK® Guide
 Project Goals and Constraints

• Obstacles or challenges may limit the ability to

perform
• Opportunities may allow projects to exceed
original expectations.
• Project Managers (PMs) decide which goals
and constraints take precedence
Project Customer Tradeoff Matrix
 Understanding Projects

• Several frameworks that help a person

understand project management include:
– The professional association Project
Management Institute (PMI);
– The Project Management Body of
Knowledge (PMBOK®)
– How companies use project management as
a system
– What constitutes both project success and
failure
Understanding Projects
– The range of project types commonly
used in business today
– The hierarchical manner in which
portfolios, programs, projects and sub-
projects are organized.
 The Project Management Institute

• The largest professional organization

• Publishes and regularly updates A Guide to the
Project Management Body of Knowledge
(PMBOK® Guide)
• Established a professional certification -
Project Management Professional (PMP®)
• Established a second certification—Certified
Associate in Project Management (CAPM)
Project Management Body of Knowledge
(PMBOK®)
• Consists of a project life cycle, five process
groups, and nine knowledge areas
Project management process group – “a logical
grouping of the project management processes
described in the PMBOK® Guide.…
Collectively, these five process groups are
required for any project, have clear dependencies,
and must be performed in the same sequence on
each project, independent of the application area
or the specifics of the applied project life cycle.”
PMBOK® Guide
 PMBOK® Process Groups
Initiating—“defines and authorizes a project or a
project phase”
Planning—“defines and refines objectives and
plans actions to achieve objectives”
Executing—“directs and manages people and
other resources to accomplish project work”
Monitoring and controlling—“collects data and
checks progress to determine any needed
corrective actions”
Closing—“formalized acceptance of project
outcomes and ending the project”
 PMBOK® Knowledge Areas

Scope management—“determining all the work

and only the work necessary for project
completion;”
Time management—“defining, sequencing,
estimating duration, and resourcing work
activities as well as developing and controlling
the schedule;”
Cost management—“planning, estimating,
budgeting, and controlling costs;”
Quality management—“quality planning,
assurance, and control;”
 PMBOK® Knowledge Areas

Human Resources management—“acquiring,

developing, and managing the project team;”
Communications management—“generating,
collecting, disseminating, storing, and disposing
of timely and appropriate project information;”
Risk management—“risk identification,
analysis, response planning, and monitoring and
control;”
Procurement management—“purchasing or
acquiring product and services as well as contract
management;” and
 PMBOK® Knowledge Areas
Integration management—“unifying and
coordinating the other knowledge areas by
creating and using tools such as charters, project
plans, and change control.”
 Project Management System

• Identify potential projects

• Prioritize among the potential projects
– What value does each potential project bring
to the organization?
– Are the demands of performing each project
understood?
– Are the resources needed to perform the
project available?
Project Management System
– Is there enthusiastic support both from
the external customers and from one or
more internal champions?
– Which projects will best help the
organization achieve its goals?
 Successful Projects

• Project success is creating deliverables that

include all of the agreed upon features
• Outputs please the project’s customers.
• Customers use the outputs effectively as they
do their work (meet quality goals)
• The project should be completed on schedule
and on budget (meet time and cost constraints).
• Completed without heroics
Successful Projects
• People who work on the project should
learn new skills and/or refine
• existing skills.
• Organizational learning should take place
and be captured for future projects.
• Reap business-level benefits such as
development of new products, increased
market share, increased profitability,
decreased cost, etc.
 Why Projects Fail

• Not enough resources are available for project

completion.
• Not enough time has been given to the project.
• Project expectations are unclear.
• Changes in the scope are not understood or
agreed upon by all parties involved.
• Stakeholders disagree regarding expectations
for the project.
• Adequate project planning is not used.
 Types of Projects

• Classifying by industry
• Classifying by size
• Classifying by timing of determination of
project scope
• Classifying by application
 Classifying by Industry
• Projects in
different
industries
often have
unique
requirements
• PMI specific
interest
groups
Classifying by Size

• Large projects often require more

detailed planning and control
 Classifying by Timing of
Determination of Project Scope
• How early in the project the project manager
and team are likely to be able to determine
what the project scope will be
• All projects require planning and control
• The art of project management deals with
when to use certain techniques, how much
detail to use, and how to tailor the techniques
to the needs of a specific project.
 Scalability of Project Tools
• All projects require
– Determination of the wants and needs of the
customer(s)
– Understanding of the amount of work
involved
– Determination of a budget and schedule
– Decisions about available workers and who
will do which tasks
– Management until the owner accepts the
project results
 Portfolios
• Multiple projects may be underway at the
same time
• Each project in the portfolio should have a
direct impact on the organization.
Portfolio – “a logical grouping of the project
management processes described in the PMBOK®
Guide.… Collectively, these five process groups are
required for any project, have clear dependencies,
and must be performed in the same sequence on
each project, independent of the application area or
the specifics of the applied project life cycle.”
 Portfolios

• Portfolios should be balanced including:

– large and small projects
– high-risk high-reward and low-risk projects
– projects that can be completed quickly and
some that will take substantial time to finish.
 Programs
• Programs may last as long as the organization lasts
• Specific projects within a program are of limited
duration
• Project managers are concerned with the tradeoffs
of cost, schedule, scope, and quality on their
individual projects
• The program manager is concerned with making
tradeoffs entire program.
 Programs

Program – “a group of between projects for the

maximum benefit of the related projects managed in
a coordinated way to obtain benefits and control not
available from managing them individually.
Programs may include elements of work outside of
the scope of discrete projects in the program.”
PMBOK® Guide
 Programs

• Programs deal with a specific group of related

projects
• A portfolio deals with all of an organization’s
projects.
• A portfolio can include multiple programs as
well as multiple projects.
• Portfolios and programs are managed at a level
above the typical project manager
 Projects and Subprojects

• A large project may be composed of multiple

subprojects

Subproject – “a smaller portion of the overall

project created when a project is subdivided into
more manageable components or pieces.” PMBOK®
Guide
Portfolio, Program, Project, and
Subproject Relationships
 Project Roles

• Project Executive-Level Roles

• Project Management-Level Roles
• Project Associate-Level Roles
 Project Executive-Level Roles

• The steering team

– The top leader (CEO) and his/her direct
reports
– Select, prioritize, and resource projects in
accordance with the organization’s strategic
planning
– Ensure that accurate progress is reported and
necessary adjustments are made.
 Project Executive-Level Roles

• The steering team

– The top leader (CEO) and his/her direct
reports
– Select, prioritize, and resource projects in
accordance with the organization’s strategic
planning
– Ensure that accurate progress is reported and
necessary adjustments are made.
Project Executive-Level Roles
• The sponsor
– The sponsor is often a member of the
leadership team
– Has a strong interest in having the project
succeed
– Some financial control
– Clout in the organization
– The power of influence
Project Executive-Level Roles
– Takes an active role in chartering the project
and reviewing progress reports
– Takes a behind-the-scenes role in mentoring
and assisting the project manager
throughout the project life.
Sponsor – “the person or group that provides the
financial resources, in cash or in kind, for the
project.” PMBOK® Guide
Project Management-Level Roles

• Project manager
– Directly accountable for the project results,
schedule, and budget
– The main communicator
– Responsible for the planning and execution
of the project
– Works on the project from start to finish.
Project Management-Level Roles

• Project manager
– The project manager often must get things
done through the power of influence since
his or her formal power may be limited.

Project manager – “the person assigned by the

performing organization to achieve the project
objectives.” PMBOK® Guide
Project Management-Level Roles

• Functional manager
– The department heads—the ongoing
managers of the organization
– Determine how the work of the project is to
be accomplished
– Supervise that work
– Negotiate with the project manager
regarding which workers are assigned to the
project
 Project Management-Level Roles

• Facilitator
– Helps the project manager with the process
of running meetings and making decisions
– Frees the project manager to concentrate on
the content of the project
– The facilitator concentrates on the process.
– A facilitator helps the PM understand
organizational politics and provides
suggestions on how to handle situations.
 Project Management-Level Roles

• Senior customer representative

– Ensures that the needs and wants of the
various constituents in the customer’s
organization are identified and prioritized
– Ensures that project progress and decisions
continually support the customer’s desires.
 Project Associate-Level Roles
• Core team member
– People assigned to a project from start to
finish
– The core team does most of the planning
and makes most of the project level
decisions.
– A small core team is ideal since people will
then be less likely to fight for turf.
– Projects often require help from other
people during busy times.
 Project Associate-Level Roles
• Subject matter experts
– Temporary members that are brought on board
during busy times
– Used on an as-needed basis.
– Not present during the charter development and
signing
– May have neither dedication to nor detailed
knowledge of the project.
PROJECT MANAGEMENT TECHNIQUES

Project charter – “a document issued by the project

initiator or sponsor that formally authorizes the
existence of a project, and provides the project
manager with the authority to apply organizational
resources to project activities.” PMBOK® Guide
PROJECT MANAGEMENT TECHNIQUES

Work breakdown structure (WBS) – “a

deliverable-oriented hierarchical decomposition of
the work to be executed by the project team to
accomplish the project objectives and create the
required deliverables. It organizes and defines the
total scope of the project. Each descending layer
represents an increasingly detailed definition of the
project work.” PMBOK® Guide
PROJECT MANAGEMENT TECHNIQUES

Project schedule – “the planned dates for

performing schedule activities and the planned
dates for meeting schedule milestones.”
PMBOK® Guide

Budget – “the approved estimate for the project

or any work breakdown structure component or
any schedule activity.” PMBOK® Guide
PROJECT MANAGEMENT TECHNIQUES

Monitor and control project work – ““the

process of monitoring and controlling the
processes required to initiate, plan, execute, and
close a project to meet the performance
objectives.….” PMBOK® Guide
Close project – “the process of finalizing all
activities across all of the project process groups
to formally close a project or phase.” PMBOK®
Guide
 Summary
• A project is an organized set of work efforts
undertaken to produce a unique output subject to
limitations of time and resources such as money and
people.
• Project management includes work processes that
initiate, plan, execute, control, and close project
work.
• Tradeoffs must be made between the scope, quality,
cost, and schedule
• All projects, regardless of size, complexity, or
application, need to be planned and managed.
 Summary
• PMI® is a very large professional organization
devoted to promoting and standardizing project
management understanding and methods.
• A Guide to the Project Management Body of
Knowledge (PMBOK® Guide), is composed of five
process groups: initiating, planning, executing,
monitoring and controlling, and closing along with
nine knowledge areas: cost, time, scope, quality,
risk, communications, Human Resources,
procurement, and integration
 Summary
• Successful projects require an understanding of what
project success is and what drives it.

• Successful projects require an understanding of

project failure and its major causes.

• Project management requires an understanding of

the various executive, managerial, and associate
roles in project management
And now
discussion
PROJECT MANAGEMENT
TECHNIQUES
• Contact:
• Prof. (Dr.) T. Muthukumar
• tmkumar13@yahoo.co.in
• (0-9871969455)