Project Management - Text Book - English - Ver

3 Stages project ™
Creation
3Stages・ TM
Japan Project Solutions Inc.
Custom.v3.0
Purpose
• To understand the fundamentals of project management.

• To learn and apply the techniques of project management.
• To improve your business skills in order to create value.
2
King Chu
Background
University of Hawaii, BBA in Finance and MBA
Certified Project Management Professional (PMP)
20+ year in finance and information technology
Project management roles with global companies in the areas of
e-commerce, software and infrastructure, business process outsourcing,
and other I.T. related-services
Currently
PMO Project Manager; Project Manager
Project management consultant
Adjunct professor at Hokkaido University
Lecturer, global and domestic firms on project management, and other
related-topics
3
What is a Project?
A project is undertaken to create a unique:
product service result
A project is temporary, with a definite beginning and ending.
4
What is a Project?
Every project must have some output or deliverable.
Deliverables are the products, services, and results that a project
produces.
Projects can have single or multiple deliverables.
PM Speak
deliverable: is any unique and verifiable product, result, or

capability to perform a service that must be produced to complete
a process, phase, or project (PMBOK® Guide)
5
Examples of Projects
6
What is a Project?
Do not confuse a project with operation:
project operation
Operation is an organization’s ongoing, and repetitive activities
7
Project vs. Operation
Why do we need to know the difference between

project and operation?
Goals are different Resources are different
Different roles,
Different skills,
Different approaches
8
In a summary, a project is...

• unique, temporary with a definite beginning and ending
• completed when the project goals are achieved or it is determined
the project is no longer possible
• successful if it meets or exceeds the expectation of your stakeholders
PM Speak
stakeholder: an individual, group, or organization, who may affect,
be affected by, or perceive itself to be affected by a decision, activity,
or outcome of a project
9
What is Project Management?
project management is the application of knowledge, skills, tools, and

techniques to project activities to meet the project requirements.
(PMBOK® Guide 6th Edition)
10
Who is the project manager?

project manager is the person responsible for managing the project processes
and applying the tools and techniques to carry out project activities
Managing a project typically includes:

• Identifying requirements (scope)
• Addressing the various needs, concerns, and expectations of the

stakeholders as the project is planned and carried out
• Balancing the competing project constraints including, but not limited to:
Scope, Quality, Schedule, Budget, Resources, Risk
11
Who is the project manager?

project manager is the person responsible for managing the project processes
and applying the tools and techniques to carry out project activities
planning, executing and closing projects
managing teams
managing stakeholder expectations
12
Importance of Project Management
Standish Group 2016 Chaos Report

MODERN RESOLUTION FOR ALL PROJECTS
2011 2012 2013 2014 2015
SUCCESSFUL 29% 27% 31% 28% 29%
CHALLENGED 49% 56% 50% 55% 52%

FAILED 22% 17% 19% 17% 19%
successful: completed on-time and on-budget, with all features and functions as initially specified.
challenged: completed, but over-budget, over the time estimate, and offers fewer features and
functions than originally specified.
failed: cancelled at some point during the development cycle.
13
Gaps in Project Management
http://www.projectcartoon.com/cartoon/1111
14
Reasons for Project Failure
• Poor leadership
• Poor resource management
• Communication breakdown at various or all levels
• Poorly Defined Requirements (Poor Scope Definition)
• Poorly Defined or Unrealistic Timelines
• Inaccurate and Unrealistic Estimating
• Monitoring and Control
15
Project Success and Constraints
“Triple Constraint”
or
“Iron Triangle”
“keeping the balance”

PM Speak
scope: information required to start a project, and the features the product would
have that would meet its stakeholders requirements
product scope is the features and functions that characterize a product, service, or
result
project scope is the work that needs to be accomplished to deliver a product,
service, or result with the specified features and functions.
16
cost  cost 

scope  time  scope time
cost 
scope  time 
17
PM Speak
scope creep: adding features and functionality (project scope) without
addressing the effects on time, costs, and resources, or without customer
approval. (PMBOK® Guide, 6th edition)
18
Dealing with Change
Scope Creep
Technical Scope Creep: change that the customer request and you
cannot say “No”
Business Scope Creep: change that happens due to external forces

that may be beyond your control; such as a change in market
condition or technology that make a requirement obsolete
It is not scope creep if there is change in

scope along with resources and schedule
19
Dealing with Change

Gold Plating
Adding extra features to a product or service that was not in the original
scope statement; usually done by either project team or project
manager at no additional cost to the client
Why?
- to impress the client or management
- team member add something extra to impress manager
- distract or cover up a defect
Risks
- it may take longer than you thought
- changes may affect functionality of current scope
- client may not like it; increase client expectation on future projects
20
Dealing with Change

Avoiding Scope Creep
- Document the requirement
- Have a change control (suggest, review, approve/reject) process
- Verify scope with stakeholders
- Have a defined schedule
- Communicate with your team
21
Dealing with Change
Techniques to Prioritize Your Requirements
- Ranking: assign a numerical priority

- MoSCoW:
MUST have (mandatory, critical to current delivery time)
SHOULD have (important, but in current delivery time)
COULD have (desirable, but not necessary)
WON’T have, WOULD LIKE to have (Can be postponed and suggested
for future execution)
- Five Whys: Ask “why” five time or less to determine the importance
- Bubble Sort: compare two requirement and if one is more important
than swap positions; iterative process
22
Dealing with Change
It is important to
Learn to say…
23
Updated View on Project Success
+ +
Varies by Industry Stakeholders
24
Project Life Cycle

• starting the project,
• organizing and preparing,
• carrying out the project work, and
• closing the project
PMBOK® Guide, 6th edition
25
Project Life Cycle
Single-Phase
Project
Multi-Phase
Project

26
Project Life Cycle
Overlapping Phases Project

27
Project Life Cycle
PM Speak
phase is a series of project activities that ends with a significant
result or milestone
milestone is an important point in your project; there is usually, but not
always a deliverable
28
Milestones and Deliverables source: Euram, Ltd.
- are checkpoints throughout the project - are tangible and measureable

- when one or multiple activities are - there are more deliverables
completed then milestones
29
The PMBOK® Guide

Released on
9/6/2017
PMBOK®Guide, 5th Edition (2013) PMBOK®Guide, 6th Edition (2017)
• globally recognized standard for managing projects

• processes, knowledge areas, guidelines, and terminology
• good practices used to improve project success
• applicable to most projects irrespective of industry and type
30
How is the PMBOK® Guide organized?
49 Project
Management Processes
10 Knowledge Areas 5 Process Groups
New for the 6th Addition

Introduction to Agile
Implementation and Considerations
31
5 Process Groups
The process group are the chronological phases that

occur through a project
32
5 Process Groups
Initiating processes are performed to define a new project or a new phase of an

existing project by obtaining authorization to start the project or phase
Planning processes is formulating and revising project goals and objectives and
creating the Project Management Plan
Executing processes involves putting the project management plan into action
Monitoring and Controlling processes is where project performance
measurements are taken and analyzed to determine whether the project is
proceeding according to plan
Closing processes are to formally close the project or phase
33
5 Process Groups
This can apply to the entire project or

each individual phase
34
10 Knowledge Areas
The knowledge areas are the core technical subject

matter of project management.
Different knowledge areas are applied in the

processes in the process group.
35
10 Knowledge Areas
1. Project Integration Management

2. Project Scope Management
3. Project Time Schedule Management
4. Project Cost Management
5. Project Quality Management
6. Project Human Resource Management
7. Project Communications Management
8. Project Risk Management
9. Project Procurement Management
10. Project Stakeholder Management
36
49 Project Management Processes

37

38
• The processes occur throughout the project
• They interact and overlap each other
• 24 of 49 processes are in the planning group

39
Relationship Between the Processes
The PMBOK® Guide describes the processes in terms of:
• Inputs (documents, plans, designs, etc.)

• Tools and Techniques (mechanisms applied to inputs)
• Outputs (documents, products, etc.)
“ITTO”

40
Example of ITTO in a Process

41
Example of Process Relationship

42
Understanding IITO: Making a Cake
Source: https://www.project-management-prepcast.com/pmp-itto
43
Why Study the PMBOK?
• Formalizes, organizes, and augments your PM

knowledge and methodologies
• One of the most comprehensive guide to project

management processes
• Learn to speak the same language as other project

managers throughout the world
44
Collection of knowledge and skills used frequently
TM
Creation
STAGE3 STAGE2 STAGE1
Current Process Future
Maneuvering
In order Future point
Action
Planning of view
&
Planning Setting Goal
Revision
Current -------------- Point of view ---------------- Future
45
Goal
oriented
Future STAGE1 ⚫ Project Vision Sheet
Future
Setting Goal
Future ⚫ Project Charter
⚫ Project Stakeholders
⚫ WBS
In order STAGE2
⚫ Gantt + RACI Chart
Point of Planning Process
View ⚫ Cost Management Chart
⚫ Risk Management Chart
◼ Kick off
Maneuvering
⚫ Progress management
Action STAGE3
⚫ Gap analysis
&
Current Current ⚫ Change meeting
Revision
◼ End declaration
46
What is the Project Charter?
The project charter is a document 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, 6th edition)
Other names for the project charter include:

✓ project definition (document)
✓ project statement
47
What is the Project Charter?
✓ # of pages?
✓ who is responsible?
✓ who writes it?
✓ who signs off?
48
What is in the Project Charter? (PMBOK® Guide, 6 th Edition)
✓ Project purpose or justification,

✓ Measurable project objectives and related success criteria,
✓ High level requirements,
✓ Assumptions and constraints,
✓ High-level project description and boundaries,
✓ High-level risks,
✓ Summary milestone schedule,
✓ Summary budget,
✓ Stakeholder list,
✓ Project approval requirements (i.e. what constitutes
project success, who decides the project is successful, and
who signs off on the project),
✓ Assigned project manager, responsibility, and authority
level, and
✓ Name and authority of the sponsor or other person(s)
authorizing the project charter
49
What is in the Project Charter?
at minimum…
✓ Background
✓ Goals
✓ Scope
✓ Key Stakeholders
✓ Project Milestones
✓ Project Budget
✓ Constraints, Assumptions, Risks
and Dependencies
50
Goal
oriented
Future STAGE1
Future ⚫ Project Vision Sheet
Setting Goal
⚫ WBS
In order STAGE2
◼ Kick off
Maneuvering
Action STAGE3
⚫ Gap analysis
&
Revision
◼ End declaration
51
Project Stakeholders
stakeholder: an individual, group, or organization, who may affect, be
affected by, or perceive itself to be affected by a decision, activity, or
outcome of a project
Project stakeholders are both internal and external to the organization
A stakeholder…
- has an interest in the outcome of your
project; this interest is usually some gain
or loss as the result of the project
- can influence your project positively or
negatively
52
Identifying and Analyzing Stakeholders

Stakeholder participation and support is crucial for project success.
Therefore, we need to know who they are, their needs, their level of
interest/influence, their expectations, and come with plan to
manage them.
53
Identifying and Analyzing Stakeholders

54
Stakeholder Register
Project management document which contains the information

about the project's stakeholders. It identifies the people, groups,
and organizations that have any kind of interest or involvement
in your project (PMBOK® Guide)

55
Stakeholder Register
Sample:
source: www.brighthubpm.com 56
Goal
oriented
Future STAGE1
Setting Goal
⚫ WBS
In order STAGE2
◼ Kick off
Maneuvering
Action STAGE3
⚫ Gap analysis
&
Revision
◼ End declaration
57
Create Work Breakdown Structure (WBS)

Once you have your project scope
Create WBS: is the process of subdividing project deliverables and
project work into smaller, more manageable components. The key
benefit of this process is that it provides a structured vision of what has
to be delivered.
58
Create WBS (Work Breakdown Structure)

Define project deliverables and project work in
smaller, more manageable components using WBS.
WP WP WP
WP WP
Key Points :
⚫ In the context of the WBS, “work” refers to work products or
deliverables that are the result of the effort and NOT to the effort
itself.
⚫ The 100% Rule (WBS includes 100% of the work defined by the project
scope and captures all deliverables)
⚫ Work Package: The lowest level of WBS components
⚫ Progressively elaborated
⚫ The WBS must include project management deliverables.
59
Create Work Breakdown Structure (WBS)

PRJ for Reforming
systems of order and
What you should achieve?
LEVEL1 delivery management
Project Name
What is necessary in order to achieve?

Order Delivery What “deliverables” are necessary
LEVEL2 management management ・・・・・・・・・
system system concretely?
Products
What is necessary in order to create

LEVEL3 “products”?
Design Software UAT Design Software UAT
Elemental ・・・・・・・・・
document document document document document What “elemental products” are
（性能試験）
products
necessary concretely?
What “activity” is necessary concretely

LEVEL4 in order to create “elemental products”?
・・・・・・・・・
Activity
Make it in detail step by step, and change the future point of

view to the present point of view.
60
Create WBS
Decomposition is the technique to divide and subdivide the project scope
and project deliverables into smaller, more manageable parts. At the
lowest level of the WBS is the work package (WP). This is the level where
cost and duration can be estimated and managed.
Let’s break down “plastic drink

bottle” to work packages
PMBOK® Guide, 6th edition 61

Create WBS
How large should your WP (work package ) be?
WP WP WP
• There is a general 8/80 rule. Each task should
WP WP
be between 8 to 80 hours.
• Each task shouldn’t last longer than one
reporting cycle.
• Breaking it down is to help you estimate the
resources required
62
WBS Example: Making a Cake

WBS tell you the time it takes to
make the cake is 150 minutes
by Mary and John!
Deliverables
（Tangible 1 Ingredient 2 Base 3 Decoration
product)
• Identify
activities
1.1 Make shopping list 2.1 Mix 3.1 Icing
• Estimate
duration
10 minutes: Mary 20 minutes: Mary
10 minutes: Mary
• Allocate
human
2.2 Bake 3.2 Decorate
resources to 1.2 Go to shopping 40 minutes oven 10 minutes: John
create
deliverables 60 minutes John
63
Gantt and RACI Chart

Rotate WBS 90 degrees counterclockwise, and it becomes
a base for the Gantt +RACI chart
as of YYYY/MM/DD
RAM AUG
Future ROSE Project 2013/9/7(土) PM PTM
PTM PTM PTM PTM 終了日残日数進捗
1W 2W 3W
総務情ｼｽ開発ﾏｰｹ
1000 店舗 - - - - - %
2000 受注・配送システム - - - - - %
3000 従業員 - - - - - %
4000 新商品 - - - - - %
5000 マーケティング実行計画書 - - - - - %
MILESTONES
6000 新商品 - - - - - %
9000 プルジェクトマネジメント - - - - - %
- PRJ Closure - - - - -
- Final Acceptance / Approval for Launch - - - - -
- Launch Day - Go-live - - - - - -
RAM AUG
LV2 LV3 タスク
LV2 タスク開始日終了日残日数進捗
No, No. No. 鈴木佐藤山田田中伊藤石井 1W 2W 3W
1010 1 物件締結済み契約書 A R C C I I 9/25 10/20 43日 0%

1020 2 店舗デザイン計画書 A R C C I I 10/21 12/7 91日 0%
1000 店舗 1030 3 内装 A C R C I I 12/10 1/7 122日 0%
1040 4 外装 A C R C I I 12/10 1/7 122日 0%
1050 5 電気・水道・ガス設備および契約 A C R C I I 10/21 11/21 75日 0%
2010 6 通信インフラ A C R C I I 11/21 12/21 105日 %
受注・配送 2020 7 受注管理システム A C C R I I 10/1 1/31 146日 %
2000
システム 2030 8 配送システム A C C R I I 10/1 1/31 146日 %
2040 9 受注・配送システム仕様書/マニュアル類 A R C C I I 2/1 2/14 160日 %
64
Gantt Chart
• What the various activities are

• When each activity begins and ends
• How long each activity is scheduled to last
• Where activities overlap with other activities, and by how much
• The start and end date of the whole project
65
Gantt Chart
Detailed Schedule with Logical Relationships

66
Human Resource Management

Knowledge area that includes processes that organize,
manage and lead the project team
Making sure that the right people

are working on the project
67
RACI Chart
Project Management Tool
RACI is a responsibility assignment matrix. RACI is an acronym
for the four key responsibilities
Responsible: The person who is assigned and does the work
Accountable: The person who makes the final decision and has
ultimate ownership (Yes/No/Veto)
Consulted: The person who is consulted before and/or after
decision for feedback and input
Informed: The person who is informed that a decision or action
has been taken
68
RACI Chart
What is the purpose of the RACI?

✓ Identifies the roles and responsibilities of those involved in
activities and decision-making in a project
✓ To avoid confusion of roles during a project
✓ Everyone knows what is expected of them
69
Sample RACI Chart
Each task should have a person “Responsible” and “Accountable”

There should be only one person who is “Accountable” for each task
https://thedigitalprojectmanager.com/raci-chart-made-simple/
70
Sample RACI Chart Template
https://thedigitalprojectmanager.com/raci-chart-made-simple/
71
RACI Chart
Variations of RACI
There are variations to RACI:
RASCI: Just like RACI, the “S” is for supportive. Supportive

supports the one Responsible for task completion
CARS: instead of the RACI

Communicate: both consulting and informing
Approve : the one who makes the decisions
Responsible – same as RACI, the person doing the work
Support – the people helping the Responsible person with the work
72
RACI Chart
Some RACI considerations
✓ Do NOT use when your team is very small
✓ Be clear about who is Accountable and Responsible
✓ A person with too many “R’s” might be assigned too much work
✓ A task with too many “R’s”, “is that many people necessary?
✓ Tasks with too many “C’s” tend to slow things down
73
Goal
oriented
Future STAGE1
Setting Goal
⚫ WBS
In order STAGE2
◼ Kick off
Maneuvering
Action STAGE3
⚫ Gap analysis
&
Revision
◼ End declaration
74
Risk Identification and Analysis

Risk Assessment
What is risk?
The PMI defines risk as “An uncertain event or condition that has
a positive or negative effect on a project’s objectives.” Basically,
risk is an unexpected event that affects your project. It can affect
people, processes, technology, resources, anything.
Risk can be negative & positive
75
Five Elements of Risk

1. Risk event: What might happen to affect your project?
2. Risk timeframe: When is it likely to happen?
3. Probability: What are the chances of it happening?
4. Impact: What’s the expected outcome?
5. Factors: What events might forewarn or trigger the risk
event?
76

Identification and Assessment Process
✓ Identify
✓ Categorize
✓ Qualitative Analysis
✓ Quantitative Analysis
✓ Risk Response
77

Identify Risks that might affects the project
✓ Conduct SWOT analysis; root cause analysis
✓ Refer to lessons learned; other related-project documents
✓ Consult with experts
✓ Brainstorming, interviews, surveys, research, etc.
78

After Risks are Identified, Categorize the Risk
✓ internal
✓ external
✓ financial
✓ technology
…and so on
The Risks’ Area of Impact
✓ cost
✓ schedule
✓ quality
79

Qualitative vs Quantitative
Qualitative Risk Assessment is “the process of prioritizing
individual project risks for further analysis or action by
assessing their probability of occurrence and impact as
well as other characteristics.” PMBOK® 6th Edition
Quantitative Risk Assessment is “The process of
numerically analyzing the combined effect of identified
individual project risks and other sources of uncertainty on
overall project objectives.” PMBOK® 6th Edition
80

How to perform qualitative analysis.
✓ Discuss with stakeholders and get their input on possible risk events.
✓ Write down risk you’ve found on sticky notes and put them on a matrix table.
Move the sticky notes around rethinking about high or low risk in a area where lots of them
are because usually there are too many notes in high risk area.
High
High
Frequency are
Middle
Low
are
Low Middle are
Low Middle High

Impact
81
How to develop qualitative analysis.

✓ Discuss with stakeholders and get their input on possible risk events.
✓ Write down risk you’ve found onto sticky notes and put them on a matrix table.
Move the sticky notes, rethinking about high or low risk in a area where lots of them are
because usually there are too many tags in high risk area.
Low=1pt
High 3pt 6pt 9pt
Frequency
Middle=2pt
Middle 2pt 4pt 6pt
High=3pt
Low 1pt 2pt 3pt
Low Middle High

Impact
82
Risk Response Negative Risk

Avoid
Transfer
Mitigate
Accept
• Avoid: change plans so the problem does not occur. (risk of rain,
switch to indoor)
• Transfer: outsource a portion of risk to a 3rd party; such as insurance
or production overseas
• Mitigate: reduce the risk impact or likelihood (or both); (larger budget,
add staffing, training, etc.)
• Accept: You do nothing; good for small risks
83
Risk Response Positive Risk

Exploit
Enhance
Share
Accept
• Exploit: ensuring everything is in place to increase the probability of
the occurrence of the risk to 100%; opposite of avoid
• Enhance: identifying the cause of a positive risk and do more to
influence it for a greater likelihood of the opportunity occurring;
opposite of mitigate
• Share: sometimes exploiting a positive risk is not possible without
collaboration from other
• Accept: do nothing
84

Risk Response
Negative Risk Positive Risk
Avoid Exploit
Transfer Enhance
Mitigate Share
Accept Accept
secondary risk: risk created by the response to another risk. In
other words, the secondary risk is a consequence of dealing with
the original risk.
residual risk: remaining level of risk following the development and
implementation of the risk response
85

Risk Register
The risk register or risk log records identified risks, their severity,
and the actions steps to be taken.
Sample Risk Registers
86
Goal
oriented
Future STAGE1
Setting Goal
⚫ WBS
In order STAGE2
◼ Kick off
Maneuvering
Action STAGE3
⚫ Gap analysis
&
Revision
◼ End declaration
87
Creation
3Stages・ TM
Japan Project Solutions Inc.
Custom.v3.0

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3 Stages project ™

Japan Project Solutions Inc.

• To understand the fundamentals of project management.

product service result

A project is temporary, with a definite beginning and ending.

Projects can have single or multiple deliverables.

deliverable: is any unique and verifiable product, result, or

Operation is an organization’s ongoing, and repetitive activities

Project vs. Operation

Why do we need to know the difference between

Goals are different Resources are different

In a summary, a project is...

What is Project Management?

project management is the application of knowledge, skills, tools, and

Who is the project manager?

Managing a project typically includes:

• Addressing the various needs, concerns, and expectations of the

Who is the project manager?

planning, executing and closing projects

managing stakeholder expectations

Importance of Project Management

Standish Group 2016 Chaos Report

2011 2012 2013 2014 2015

SUCCESSFUL 29% 27% 31% 28% 29%

CHALLENGED 49% 56% 50% 55% 52%

Gaps in Project Management

Reasons for Project Failure

Project Success and Constraints

“keeping the balance”

Project Success and Constraints

“keeping the balance”

Project Success and Constraints

“keeping the balance”

Dealing with Change

Business Scope Creep: change that happens due to external forces

It is not scope creep if there is change in

Dealing with Change

Dealing with Change

Dealing with Change

Techniques to Prioritize Your Requirements

- Ranking: assign a numerical priority

Dealing with Change

Updated View on Project Success

Varies by Industry Stakeholders

Project Life Cycle

PMBOK® Guide, 6th edition

Project Life Cycle

PMBOK® Guide, 6th edition

Project Life Cycle

Overlapping Phases Project

PMBOK® Guide, 6th edition

Project Life Cycle

Milestones and Deliverables source: Euram, Ltd.

- are checkpoints throughout the project - are tangible and measureable

The PMBOK® Guide

PMBOK®Guide, 5th Edition (2013) PMBOK®Guide, 6th Edition (2017)

• globally recognized standard for managing projects

How is the PMBOK® Guide organized?

10 Knowledge Areas 5 Process Groups

New for the 6th Addition

The process group are the chronological phases that

Initiating processes are performed to define a new project or a new phase of an

This can apply to the entire project or

1010 1 物件締結済み契約書 A R C C I I 9/25 10/20 43日 0%