Lecture 1 - Project Management Framework

Project Management Framework
Lecture 1
This is the instructor’s notes and student has to read the textbook for complete material.
Project Management Framework Slide 1

Outline
1. What is Project?
2. What is Project Management?
3. Importance of Project Management
4. Project, Program, and Portfolio
5. Project Key Components
6. Project Management Data and Information
7. Tailoring the Processes
8. Project Management Business Document
9. Project Influences
10. Organizational Structure
11. The Role of the Project Manager
12. Constraints and Stakeholders
1. What is Project?
n A project is a temporary endeavor undertaken to

create a unique product, service, or result.
n Other characteristics of Projects:

n Projects drive change
n Projects enable business value creation
n Project has an initiation context:
n To meet regulatory, local, or social requirements
n To implement or change business or technological changes
n Create, improve or fix products, processes or services
n Satisfy stakeholders requests or needs

What is Project? (Cont.)
n Examples for projects initiation contexts

What is Project? (Cont.)
n The project end is reached when project objectives

has been achieved. Project can also be:
n Terminated: due to change in strategy or feasibility
n Stopped: when need for project no longer exists
2. What is Project Management?
n The application of knowledge, skills, tools and

technique to project activities to meet project
requirements

3. Importance of Project Management
n Effective project management helps individuals,
groups, and public and private organizations to:
n Meet business objectives
n Satisfy stakeholder expectations
n Be more predictable
n Increase chances of success
n Deliver the right products at the right time
n Resolve problems and issues
n Respond to risks in a timely manner

Importance of Project Management (Cont.)
n Poorly managed projects or the absence of project

management may result in:
n Missed deadlines
n Cost overruns
n Poor quality
n Rework
n Unsatisfied stakeholders
n Loss of reputation for the organization

4. Project, Program, and Portfolio
n Project was defined earlier
n What is Program?
n A group of related projects, subprograms, and program
activities managed in a coordinated way
n Program is useful to obtain benefit and control over the projects
under a program which is not obtainable from managing them
separately.

Project, Program, and Portfolio (Cont.)
n What is Portfolio?
n A collection of projects, programs, sub portfolios, and
operations managed as a group to achieve strategic
objective

n What is Operation?
n An on-going endeavors that produce repetitive outputs,
with resources assigned to perform same set of tasks
according to standards institutionalized in a product life
cycle

n Projects vs. Operations

Project Operation
Involve Employees x x
Typically have limited resources: people, money, or

x x
both
Designed, executed, and managed x x
Temporary:
• Developing/implementing new solutions, products, x
or services
• Moving, adding, changing, or deleting
Ongoing:
• Repetitive actions x
• Maintenance
• Core business functions

Project Key Brief Description
Component
Project Life The series of phases that a project passes through from its start to its completion
Cycle
Project A collection of logically related project activities that culminates in the completion
Phase of one or more deliverables
Phase A review at the end of a phase in which a decision is made to continue to the next
Gate phase, to continue with modification, or to end a program or a project
Project A systematic series of activities directed toward causing an end result where one
Management or more inputs will be acted upon to create one or more outputs
Processes
Project A logical grouping of project management inputs, tools and techniques, and
Management outputs. The project management process groups include initiating, planning,
Process Group executing, monitoring and controlling, and closing. Project management process
groups are not project phases.
Project An identified area of project management defined by its knowledge requirements
Management and described in terms of its component processes, practices, inputs, outputs,
Knowledge Area tools, and techniques

Project Life Cycle

Project Life Cycle (Cont.)


n Types of Project Life Cycles
n Predictive Life Cycle
n Iterative Life Cycle
n Incremental Life Cycle
n Adaptive Life Cycles
n A Hybrid Life Cycle

i. Predictive Life Cycle
n The project scope, time, and cost are determined in the
early phases of the life cycle
n Any changes to the scope are carefully managed
n May also be referred to as waterfall life cycles
n These project proceed through a series of sequential or
overlapping phases

ii. Iterative Life Cycle
n The project scope is generally determined early in the
project life cycle, but time and cost estimates are routinely
modified as the project team’s understanding of the product
increases.
n Iterations develop the product through a series of repeated
cycles, while increments successively add to the functionality
of the product.

iii. Incremental Life Cycle
n The deliverable is produced through a series of iterations
that successively add functionality within a predetermined
time frame.
n The deliverable contains the necessary and sufficient
capability to be considered complete only after the final
iteration.

iv. Adaptive Life Cycle
n The detailed scope is defined and approved before the start
of an iteration
n Adaptive life cycles are also referred to as Agile.

iv. A Hybrid Life Cycle
n A combination of a predictive and adaptive life cycle
n Those elements of the project that are well known or

have fixed requirements follow a predictive
development life cycle, and those elements that are still
evolving follow an adaptive development life cycle.

Which Project Life Cycle to Use?
n It is up to the project management team to determine

the best life cycle for each project
n The project life cycle needs to be flexible enough to

deal with variety of factors included in the project:
n Identifying the process or processes needed to be performed
in each phase
n Performing the processes identified in the appropriate phase
n Adjusting the various attributes of a phase (e.g., name,
duration, exist criteria, and entrance criteria)

Component
Cycle
Processes

Project Phase
n A project phase is a collection of logically related project activities

that culminates in the completion of one or more deliverables.
n The phases in a life cycle can be described by a variety of
attributes. Attributes may be measurable and unique to a specific
phase. Attributes may include but are not limited to:
n Name (e.g., Phase A, Phase B, Phase 1, Phase 2, Proposal Phase)
n Number (e.g., three phases in the project, five phases in the project)
n Duration (e.g., 1 week, 1 month, 1 quarter),
n Resource requirements (e.g., people, buildings, equipment)
n Entrance criteria for a project to move into that phase (e.g., specified
approvals documented)
n Exist criteria for a project to complete a phase (e.g., documented approvals,
completed documents, completed deliverables).

Project Phase (Cont.)
n Projects may be separated into distinct phases or subcomponents. These

phases or subcomponents are generally given names that indicate the
type of work done in that phase. Examples of phase names include but
are not limited to:
n Concept development n Test

n Feasibility study n Build
n Customer requirements n Transition
n Solution development n Commissioning
n Design n Milestone review
n Prototype n Lessons learned

n The project phases may be established based on various factors
including, but not limited to:
n Management needs
n Nature of the project
n Unique characteristics of the organization, industry, or technology
n Project elements including, but not limited to, technology,
engineering, business, process, or legal
n Decision points (e.g., funding, project go/no-go, and milestone
review)
n Using multiple phases may provide better insight to managing the

project. It also provides an opportunity to assess the project
performance and take necessary corrective or preventive actions
in subsequent phase. A key component used with project phases
is the phase review.
Phase to Phase Relationship
Sequential Overlapping
n Next phase starts only when n Phases starts before

previous phase is completed completion of previous phase
n Reduced uncertainty n Fast tracking
n Eliminate options to reduce n Additional resources
schedule n Increase Risk
n Result in Rework
Component
Cycle
Processes

Phase Gate
n A phase gate, is held at the end of a phase. The project’s
performance and progress are compared to project and
business documents including but not limited to:
n Project business case n Project management plan
n Project charter n Benefits management plan
n A decision (e.g., go/no-go decision) is made as a result of

this comparison to:
n Continue to the next phase n End the project
n Continue to the next phase n Remain in the phase
with modification n Repeat the phase or
elements of it
n Other terms might be used, such
as, phase review, stage gate, kill point, phase
entrance, phase exist.
Component
Cycle
Processes

Project Management Processes

Component
Cycle
Processes

Project Management Process Group
n Project management is accomplished through the
application and integration of five processes

Project Management Process Group

Component
Cycle
Processes

Project Management Knowledge Area

6. Project Management Data & Information

Project Management Data & Information (Cont.)

7. Tailoring the Processes
n Choosing what processes should be used on a project, and
what depth the processes should be used, because not every
process is needed on every project [every project is unique]
n The larger the project, the more processes are likely needed
n Usually, project managers apply a project management
methodology to their work
n A methodology is a system of practices, techniques,
procedures, and rules used by those who work in a discipline
n Therefore, the project management team needs to select the
appropriate processes, inputs, tools, techniques, outputs, and
life cycle phases needed to manage a project. This selection
activity is known as tailoring project management to the
project.
8. Project Management Business Document
n The project sponsor is generally accountable for the

development and maintenance of the project business case
document
n The project manager is responsible for providing
recommendations and oversight to keep the project business
case, project management plan, project charter, and project
benefits management plan success measures in alignment
with the goals and objectives of the organization
i. Project Business Case
n Characteristics of the Project Business Case:
n It lists the objectives and reasons for project initiation
n It helps measure the project success at the end of the project
against the project objectives
n It is used throughout the project life cycle
n It may be used before the project initiation and may result in a
go/no-go decision for the project
n A needs assessment:
n Often precedes the business case
n The needs assessment involves understanding the business
goals and objectives, issues, and opportunities
n The results of the needs assessment may be summarized in the
business case document
ii. Project Benefits Management Plan
n Characteristics of the Project Benefits Management Plan:
n How and when the benefits of the project will be delivered
n Describes the mechanism that should be in place to measure
those benefits
n The benefits management plan describes key elements of the
benefits and may include but is not limited to:
n Target benefits (financial value)
n Strategic alignment (e.g., how well the project benefits align to
the business strategies of the organization)
n Timeframe for realizing benefits (e.g., benefits by phase, short-
term, long-term, and ongoing)
n Benefits owner (e.g., the accountable person to monitor, record,
and report realized benefits)
n Risks (e.g., risks for the realization of benefits)
Project Management Business Document
(Cont.)

9. Project Influences
n Enterprise Environmental Factors (EEF) and

Organizational Process Assets (OPA) influence the
project management approach
n EEFs originate from outside the project and often

outside of the enterprise.
n EEF and OPA are out of the project manager control.

Enterprise Environmental Factors
n Internal EEFs:
n Organizational culture & structure
n Employees capability
n Resource availability
n Information technology software
n Geographic distribution of facilities and resources
n Infrastructure.
n External EEFs:
n Marketplace conditions
n Physical environmental elements
n Financial considerations
n Government or industry standards
n Commercial databases
n Social cultural influences and issues
n Legal restrictions
Organizational Process Assets
n The definition of assets is: “A useful or valuable thing or property owned by
a person or company, regarded as having value and available to meet debts,
commitments or legacies.”. Assets are something that we can own, keep and
use for our benefits; for example, we can have a car by which we can move
around, we can have house to live in, computers to work on, etc. These
things; i.e., car, house, computers, etc. are called Assets.
n In the same manner, organizations also have Assets, which they call
Organizational Process Assets, and are stored in some central repository so
that they could be used whenever required by anyone.
n OPAs are created for projects and by experience:

n Policies, procedures, and processes
n Standard Templates
n Corporate knowledge base, lesson learned, and historical information, etc.

10. Organizational Structure

Organizational Structure (Cont.)
1) Organic or Simple:
n Flexible; People working side-by-side of others
n Owner or operator manage the project budget
n Project manager authority is little or none
n Resource availability little or none
2) Functional Organization:
n The organization is grouped by areas of specialization within different
functional areas
n Project managers in a functional organization:
n Report to a functional manager
n Project manger authority is little or none
n Resource availability is little or none
n Project Coordinator/ Part Time Role
n Functional manager manage the project budget

3) Multi-divisional
n Replication of functions for each division
n Its characteristics same as functional organizations (previous slide)
4) Weak Matrix:
n Team members report to two bosses
n Power with the functional manager and the project manager works as
project coordinator or project expeditor
n Expeditor: cannot take decision. Staff assistant and communication
coordinator.
n Coordinator: similar to expeditor except has some power to take
decisions
5) Balanced Matrix
n Power is shared between project manager and functional manager
=
6) Strong Matrix:
n Power with project manager
7) Project-oriented:
n The entire company is organized by projects
n The project manager has control of projects
n Personnel are assigned and report to a project manager
n Members complete project work and when its over they don’t have job

8) Virtual Organization:
n Uutilizes a Network structure within the organization
n Points of contact represent the different department
n Project manager has low authority over the project team
n Communication can be a challenge
n Project manager shares authority over budget with functional manager
9) Hybrid:
n Mix of all organizational types
n Depends on the unique project needs and organization

10) Project Management Office (PMO)

n Support project managers; manage shared resources across the
PMO; offer coaching, mentoring, and training for PMs; conducting
projects audits; developing and managing processes and procedures;
facilitating communications across projects.
n PMO has three types:
n Supportive type: degree of control is low, and provides a consultative to
projects by supplying templates, best practices, training, access to
information, and lessons learned from other projects
n Controlling type: degree of control is moderate, and provides support and
require compliance with specific templates, forms, and tools, etc.

n Directive type: degree of control is high, and take control of the projects
by directly managing the projects. Project managers are assigned by and

report to the PMO

11. The Role of the Project Manager
n Project manager is the person assigned by performing organization to
lead team that is responsible for achieving project objective.
Therefore, project manager is the person responsible for
accomplishing the project objectives.

The Role of the Project Manager (Cont.)
n Project manager often has a lot of responsibility and lacks authority.
He often negotiates with management/ functional manager for
resources.
n Project managers must have technical project management skills,
strategic and business management skills/

12. Constraints and Stakeholders
n Traditionally, there are three constraints:

n Time, Cost, and Scope
n Currently, new constraints are introduced:

n Quality, Resources, and Risks
n Constraints means that project manager should

measure the impact on each constraint whenever a
change occurs

Constraints and Stakeholders (Cont.)
n A stakeholder is an individual, group, or organization that may affect, be

affected by, or perceive itself to be affected by a decision, activity, or
outcome of a project. Project stakeholders may be internal or external to
the project, they may be actively involved, passively involved, or
unaware of the project. Project stakeholders may have a positive or
negative impact on the project, or be positively or negatively impacted
by the project.
n Internal stakeholders examples:

n Sponsor, resource manager, project management office (PMO),
portfolio manager, program manager, project mangers of other

projects, team members.
n External stakeholders examples:

n Customers, end users, suppliers, regulatory bodies, competitors

Thank You
This is the instructor’s notes and student has to read the textbook for complete material.

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Project Management Framework

Project Management Framework Slide 1

n A project is a temporary endeavor undertaken to

n Other characteristics of Projects:

Project Management Framework Slide 3

Project Management Framework Slide 4

n The project end is reached when project objectives

n The application of knowledge, skills, tools and

Project Management Framework Slide 6

Project Management Framework Slide 7

n Poorly managed projects or the absence of project

Project Management Framework Slide 8

Project Management Framework Slide 9

Project Management Framework Slide 10

Project Management Framework Slide 11

n Projects vs. Operations

Typically have limited resources: people, money, or

Project Management Framework Slide 12

Project Management Framework Slide 13

Project Management Framework Slide 14

Project Management Framework Slide 15

Project Management Framework Slide 16

Project Management Framework Slide 17

Project Management Framework Slide 18

Project Management Framework Slide 19

Project Management Framework Slide 20

Project Management Framework Slide 21

n A combination of a predictive and adaptive life cycle

n Those elements of the project that are well known or

Project Management Framework Slide 22

n It is up to the project management team to determine

n The project life cycle needs to be flexible enough to

Project Management Framework Slide 23

Project Management Framework Slide 24

n A project phase is a collection of logically related project activities

Project Management Framework Slide 25

n Projects may be separated into distinct phases or subcomponents. These

n Concept development n Test

Project Management Framework Slide 26

n Using multiple phases may provide better insight to managing the

n Next phase starts only when n Phases starts before

Project Management Framework Slide 29

n A decision (e.g., go/no-go decision) is made as a result of

Project Management Framework Slide 31

Project Management Framework Slide 32

Project Management Framework Slide 33

Project Management Framework Slide 34

Project Management Framework Slide 35

Project Management Framework Slide 36

Project Management Framework Slide 37

Project Management Framework Slide 38

Project Management Framework Slide 39

n The project sponsor is generally accountable for the

Project Management Framework Slide 44

n Enterprise Environmental Factors (EEF) and

n EEFs originate from outside the project and often

n EEF and OPA are out of the project manager control.

Project Management Framework Slide 45

n OPAs are created for projects and by experience:

Project Management Framework Slide 47

Project Management Framework Slide 48

n Project manger authority is little or none

n Resource availability is little or none

n Project Coordinator/ Part Time Role