Project Management Fundamentals

1
AWI 106 Att. 8 Rev. 2 06 Jul. 2009 25 Jan. 10/ Rev.00
 Introduction
„ Project management plays a pivotal role in
the growth of a firm.
„ For any Project, Manager’s skill is the key to
success
„ Project deadlines are usually more pressing
than normal working situations.
„ Timely achievement of the targets set by the
clients and customers is the success.
„ Multiple Project Management approaches are
essential

Project Management Fundamentals (Rev.0 – Feb. 2010) Page 2

 Learning Objectives
This Training Session helps the
participants to understand:

„ Importance of Project Management

„ What is a project
„ Project Management Fundamentals
„ Life Cycle of a Project – Different Phases of a
project
„ Your role as a project Manager and the skills
required

Project Management Fundamentals (Rev.0 – Feb. 2010) Page 3

 Why project management is so
important?
Some Prime advantage of matured Project
Management system
„ Excellent Productivity – Quality is increased

„ Adequate Communication – Project

Manager is the Bridge
„ Reducing Risks – Identifies potential risks
and removes
„ Helps achieving strategic Objectives and
goals – Makes profit and makes the vision
become true

Project Management Fundamentals (Rev.0 – Feb. 2010) Page 4

 What is a Project ?

„ All projects are work

„ Not all work is a project
„ Projects require special skills
„ Engineering projects have design and
construction phases

Project Management Fundamentals (Rev.0 – Feb. 2010) Page 5

 Project Management Fundamentals
Definitions:

„ Project Management is the discipline of

planning, organizing and managing
resources to bring about the successful
completion of specific project goals and
objectives.

„ A temporary endeavour undertaken to create

unique product or service (The Project
Management Institute – PMBoK Guide 2004)

Project Management Fundamentals (Rev.0 – Feb. 2010) Page 6

 Project Management Fundamentals

Co
m

st
Ti
Profit

Performance
Performance means: Producing products and
services in right quantity, with required quality to
satisfy the clients and customers without even the
least compromise in Health and Safety of the
employees, Environmental requirements. All these
must happen at low cost and right at the first time.
Making this happen is Project Management.
Project Management Fundamentals (Rev.0 – Feb. 2010) Page 7
 Project Management Fundamentals

Projects can be placed into 4 process groups:

„ Initiating
„ Planning
„ Executing and Monitoring & Controlling
„ Closing / Terminating

Life cycle of a project has these phases.

Project Management Fundamentals (Rev.0 – Feb. 2010) Page 8

 Project Management Fundamentals
Characteristics of a Project:

„ Finite
„ Designed to achieve a specific goal or
objective
„ Bound by well-defined boundaries – Scope
„ Controlled by well-defined plans
„ Underpinned by sound communications
„ Driven by human, time cost and physical
resources – therefore requires a
management
„ Unique
Project Management Fundamentals (Rev.0 – Feb. 2010) Page 9
 Project Management Fundamentals
A project team has to operate in 9 knowledge
areas:

„ Integration Management
„ Scope management
„ Time management
„ Cost management
„ Quality management
„ HR Management
„ Communication management
„ Risk Management
„ Procurement Management
Project Management Fundamentals (Rev.0 – Feb. 2010) Page 10
 Project Management Fundamentals
1. Integration Management:

„ Develop Project Charter

„ Develop Scope Statement
„ Develop Plans
„ Provide Directions
„ Control and Monitor Project Change

Project Management Fundamentals (Rev.0 – Feb. 2010) Page 11

 Project Management Fundamentals

2. Scope Management:

„ Planning
„ Creating Work Break-Down Structure
„ Verification and Control

Project Management Fundamentals (Rev.0 – Feb. 2010) Page 12

 Project Management Fundamentals
3. Time Management:

„ Sequencing of work
„ Deciding duration of work
„ Resource Estimation
„ Developing Schedule
„ Monitoring and Controlling of Schedule.

There is a separate soft skill course on

Time Management. You may choose to
attend.

Project Management Fundamentals (Rev.0 – Feb. 2010) Page 13

 Project Management Fundamentals
4. Cost Management:

„ Resource Planning
„ Cost Estimating
„ Budgeting
„ Monitoring and Controlling Budget, Time,
Resource

Project Management Fundamentals (Rev.0 – Feb. 2010) Page 14

 Project Management Fundamentals
5. Quality Management:

„ Quality Planning
„ Quality Assurance
„ Quality Control
„ ISO 9001 requirements

QA/QC department conducts this training

for all employees

Project Management Fundamentals (Rev.0 – Feb. 2010) Page 15

 Project Management Fundamentals
6. Human Resource Management:

„ HR Planning
„ Hiring
„ Developing people
„ Leading and Managing Teams

L&D Unit conducts soft skill training on

Team Work and Managing Teams and
Leading and Managing People. You may
choose to attend

Project Management Fundamentals (Rev.0 – Feb. 2010) Page 16

 Project Management Fundamentals
7. Communications Management:

„ Communications Planning
„ Information Distribution
„ Performance Reporting
„ Managing Stake holders

L&D Unit conducts Soft Skill Training on

“Communication Skills” you may choose
to attend

Project Management Fundamentals (Rev.0 – Feb. 2010) Page 17

 Project Management Fundamentals
8. Risk Management:

„ Defining Risk
„ Identifying
„ Risk Analyzing – Qualitative & Quantitative
„ Risk Planning
„ Risk Response – Action
„ Risk Monitoring and Control

Project Management Fundamentals (Rev.0 – Feb. 2010) Page 18

 Project Management Fundamentals
9. Procurement Management:

„ Acquisition and Contracting Plan

„ Contract Administration
„ Contract Closure

Project Managers and their team will use

right inputs and tools and techniques to
provide required deliverables for each
process mentioned above.

Can you name some resources that are

required by Project Management?
Project Management Fundamentals (Rev.0 – Feb. 2010) Page 19
 Life Cycle of a Project
Life Cycle has 4 Phases - A Phase of a
project is major set of activities that must be
performed within the project management
process
Proje
ct Execution, Monitoring
Planning Phase and Controlling Phase
Activ
ity Initiation Phase Termination Phase

Time

Project Management Fundamentals (Rev.0 – Feb. 2010) Page 20

 Life Cycle: Initiation
„ Also called as Concept or Create phase
„ Shapes the project and provides direction
to the team
„ This is Phase 1

Basic Tasks performed at this phase are

ƒ Establishing a need
ƒ Determining feasibility
ƒ Searching for alternatives
ƒ Preparing proposals
ƒ Developing basic budgets and
schedules
ƒ Naming the starting project team
Project Management Fundamentals (Rev.0 – Feb. 2010) Page 21
 Initiation Continued……
Once the team has been formed, they must:
„ Study, discuss, and analyze
„ Write the project definition
„ Set an end-results objective
„ List imperatives and desirables
„ Generate alternative strategies
„ Evaluate alternatives
„ Choose a course of action

The output for this stage is the Project

Charter or Statement of Work.
Project Management Fundamentals (Rev.0 – Feb. 2010) Page 22
 Life Cycle: Planning
This is Phase 2.

„ Most critical but most often not well done

„ Poor planning affects cost, time, performance
„ All personnel involved in the projects,
including the clients must be on the same
page
„ If you are not planning, you are planning to
fail

Project Management Fundamentals (Rev.0 – Feb. 2010) Page 23

 Planning continued….
Basic Tasks performed at this stage are:
„ Setting goals and Objectives
„ Listing tasks to be done
„ Developing schedules in a sequence and a
budget
„ Getting your plans approved by
stakeholders
„ Conducting studies and analyses
„ Designing systems
„ Building and testing prototypes
„ Analyzing results
„ Obtaining approval for production
Project Management Fundamentals (Rev.0 – Feb. 2010) Page 24
 Planning continued….
Planning includes following steps:
„ Establish Project Objective
„ Choose basic strategy
„ Break down the project in steps and sub units
– Work Break Down Structure
„ Determine time frame for each sub unit
„ Decide the sequence of activities and sub
units
„ Prepare aggregate schedule
„ Determine the cost

Project Management Fundamentals (Rev.0 – Feb. 2010) Page 25

 Planning continued….
Planning steps continued….
„ Decide Staff organization – Positions,
duties, responsibilities
„ Determine training requirements
„ Develop Policies and Procedures
„ Create computer simulations if needed
The output for the planning phase is a project plan
document, a complete plan for how the project will
be executed. The sponsor and other key
shareholders should all approve this document.

L&D runs courses on “Planning” and

“Setting Goals” ; you may choose to attend
Project Management Fundamentals (Rev.0 – Feb. 2010) Page 26

them
 Project Planning Tools
Our every day planning tools at work – Clock,
Calendar, Planner……
Some tools:
Using Flash Card is an effective
Technique.
„ Creating Action Planning Work sheet

„ Mile stone charts

„ Program Evaluation Review

Technique - PERT
„ Gantt Charts

„ Network Diagram

„ Critical Path Diagram – Critical Path

Management CPM
Project Management Fundamentals (Rev.0 – Feb. 2010) Page 27
 Project Planning Tools
„ You may use Work Break Down structure
in combination of PERT, Gantt Chart, CPM
diagram
„ Keep Updating your Schedule. Use only
current ones. Segregate the obsolete
schedules from the current ones. Avoid
Confusions
You will learn more about PERT, Gantt Chart
and CPM diagram in the next session of
Project Management
Let us have a look at the sample Planning
work sheet
Project Management Fundamentals (Rev.0 – Feb. 2010) Page 28
 Budgeting
„ Invariably all projects run on tight budgets
„ Controlling budget with no idea about how money is

being spent is not possible.

„ Realistic costing is important

„ You need to do perfect estimates (Don’t

“Guesstimate”
„ Bottom-up Budget

„ Top-down budget

„ Tie the costs/Time as performance goals

„ Budgeting skills improve through experience – Your

Budget will be always squeezed. You must negotiate

to get what you want.
Let us have a look at sample Cost Control Plan Work
Sheet – Page 15
Project Management Fundamentals (Rev.0 – Feb. 2010) Page 29
 Contingency Planning
Contingency Planning is based on three beliefs:

„ Something is always waiting to go wrong

„ What will go wrong will be what you least
expect
„ It will hit harder than you thought possible

Be a pessimist for a while when you plan for

contingencies

Project Management Fundamentals (Rev.0 – Feb. 2010) Page 30

 Life Cycle : Execution
„ We are in Phase 3
„ After the project plan and Budgets are
approved is the Execution phase.
„ You create deliverable at this phase
„ You need to Control and Monitor through out
this Phase
„ Progress reports need to be sent to all those
who require them – Stake holders

Project Management Fundamentals (Rev.0 – Feb. 2010) Page 31

 Execution Continued……
Important Tasks Include:

„ Finding time
„ Obtaining Money
„ Recruiting People
„ Procurement : Equipment and Materials
„ Leading the project team
„ Communicating with all stake holders

Project Management Fundamentals (Rev.0 – Feb. 2010) Page 32

 Execution Continued……..
Controlling and Monitoring means:

„ Sticking to Standards
„ Assessing Performance
„ Inspection/ Auditing
„ Interim Project Reviews
„ Testing

You will learn more about controlling and

Monitoring in “Planning” Training Sessions

Project Management Fundamentals (Rev.0 – Feb. 2010) Page 33

 Execution Continued……
The results of Controlling and Monitoring may
require:
„ Renegotiating with Clients

„ Narrow/Increase the project scope

„ Deploy more resources

„ Seek for more budgets (For heaven sake

don’t get in to this trouble!!!!)
„ Offer Incentives

„ Conform to Compliance requirements

At the end of this stage final deliverable is

handed over
Project Management Fundamentals (Rev.0 – Feb. 2010) Page 34
 Life Cycle : Close out
„ This is Phase 4, the final phase. Also called
Termination
„ Customer decides whether he/she is satisfied
„ Sponsor assesses the success in terms of
goals met and cost incurred
„ The team discusses the lessons learnt
„ A final report is issued to stake holders
„ This is the time to celebrate the success

Project Management Fundamentals (Rev.0 – Feb. 2010) Page 35

 Close out continued…….
Some of the tasks done at the project close
out stage

„ Project completion is assessed through

checklist
„ Testing of project output to see that if it
works
„ Writing operations manual
„ Completing final drawings
„ Delivering final project output to client
„ Training client's personnel to operate project
output
„ Reassign project personnel
Project Management Fundamentals (Rev.0 – Feb. 2010) Page 36
 Close out continued…….
„ Disposing of surplus equipment, materials,
and supplies
„ Releasing facilities
„ Summarizing major problems encountered
and their solution
„ Documenting technological advances made
„ Summarizing recommendations for future
research and development
„ Summarizing lessons learned in dealing with
interfaces

Project Management Fundamentals (Rev.0 – Feb. 2010) Page 37

 Tips to make projects a great success

„ Have Clear goals

„ Planning
„ Time – Schedules done
„ Resources allocated
„ Committed Team
„ Trusted leader
„ Knowledge Skills Experience

Project Management Fundamentals (Rev.0 – Feb. 2010) Page 38

 Your Role as a Project Manager
„ Need to have a clear idea what to accomplish
„ Understand what should be the goal
„ Decide the time frame
„ Decide the staff requirements – number of
staffs, skills, experience etc
„ Hold meetings
„ Give assignments based on your staffs ability
„ Be flexible
„ Be a good leader.
You will learn about Leadership qualities in
“Leading and Managing People” sessions
Project Management Fundamentals (Rev.0 – Feb. 2010) Page 39
 Skills of a Project Manager
Skills required
Problem Solving Achievement Management Influence
Diagnostic thinking Concern for Time management Team building
achievement

Systematic Results orientation Cost Management Developing others

Conceptual Initiative HR management Client/user

orientation

Monitoring Business orientation Risk management Self-control

Information Quality management
gathering

Project Management Fundamentals (Rev.0 – Feb. 2010) Page 40

 Setting Goals
„ Project Manager should be able to
clearly describe the outcomes,
deliverables, and benefits to
stakeholders and end users.
„ Setting Goals is a primary Job for
Project Manager

Project Management Fundamentals (Rev.0 – Feb. 2010) Page 41

 Setting Goals Continued…..
„ SMART Goals for a project:
„ Specific

„ Measurable

„ Agreed Upon / Achievable

„ Realistic

„ Time bound

„ Goals must be associated with clear

responsibilities.
You will learn more about Setting Goals in
“Setting Goals” Training Session

Project Management Fundamentals (Rev.0 – Feb. 2010) Page 42

 SWOT Analysis
Project Manager must be able to do SWOT
(Strength, Weakness, Opportunity and
Threat) analysis.
„ SWOT with in the organization
„ SWOT external to the organization.
„ Make sure you do SWOT for Corporate goals,
Departmental goals, Long term goals , Short
term goals and Individual goals.
„ Project Manager must crate a clear goal
statements to avoid misinterpretation
„ Goal statements are motivating and positive
reminders to your team.
You will learn more about SWOT in “Setting
Goals” Training session
Project Management Fundamentals (Rev.0 – Feb. 2010) Page 43
 Risk Analysis
Project Risks:

Success of Project Manager depends on his

ability to be prepared for the risks and have
plans to meet them.

Three types of Risks:

„ The known risks – identified through

experience
„ Predictable risks – not some thing concrete
„ Unforeseen risks – Cannot predict
Project Management Fundamentals (Rev.0 – Feb. 2010) Page 44
 Risk Analysis Continued…
Risk has two characteristics:

ƒ Uncertainty: May or may not happen

ƒ Loss: An event has unwanted consequences
The most common risks to be considered
include:
„ Funding: It may get cut or dry up.
„ Time: Other projects may land on your desk
at the same time.
„ Staff: The person or persons you were relying
on get sick, quit, or get assigned to another
project.
Project Management Fundamentals (Rev.0 – Feb. 2010) Page 45
 Risk Analysis Continued…..
„ Customer Relations: You have customers
from other departments, or external
customers, whose needs conflict with this
project.
„ Project size or complexity: The project gets
more complex than originally intended.
„ External factors (such as weather)
Take a look at the Risk Inventory assessment
check list – Page 22
Project Manager must be able to assess how
likely is the risk to happen and how seriously
will it be if it happens
Project Management Fundamentals (Rev.0 – Feb. 2010) Page 46
 Risk Analysis Continued…..
Project managers must plan for risk. They
must :
„ Identify potential problems and confront them
before they occur. It is easier and cheaper
before they are problems or before a crisis
exists.
„ Focus on the project’s goals and look for
things that may affect quality throughout the
lifecycle.
„ Identify potential problems early in the
planning cycle.
„ Involve personnel at all levels of the project.
Focus their attention on a shared project
Project Management Fundamentals (Rev.0 – Feb. 2010) Page 47
 Risk Analysis Continued…..

Possible sources of risks include:

„ Funding /Budget

„ Time /Schedule

„ Customer Relations

„ Project Size or Complexity

Project Management Fundamentals (Rev.0 – Feb. 2010) Page 48

 Risk Analysis Continued…..
Possible sources of risks include:

„ People/Staff
„ Are they available

„ Are they committed

„ Are they skilled

„ Do they know what is required of them

Project Management Fundamentals (Rev.0 – Feb. 2010) Page 49

 Risk Analysis Continued…..
Possible sources of risks include:
„ Technological

„ Is the technology proven

„ Is it reliable

„ Is it available

„ Is it understood

Project Management Fundamentals (Rev.0 – Feb. 2010) Page 50

 Risk Analysis Continued…..
Possible sources of risks include:
„ Political

„ Is the need for the project agreed

„ Does the sponsor control the stakeholder

group
„ Are negative stakeholders influential

„ Is communication with stakeholders good

Project Management Fundamentals (Rev.0 – Feb. 2010) Page 51

 Risk Analysis Continued…..
Possible sources of risks include:

„ Financial: Am I in control of project funds?

„ Contractual/Legal: Am I, or is my company,
contractually or legally liable for the failure of
the project?
„ Environmental
„ How can the weather affect my project?

„ What geological factors might put my

project’s success at risk?

„ Facilities / Equipment

Project Management Fundamentals (Rev.0 – Feb. 2010) Page 52

 Overcoming Constraints
Through doing SWOT analysis and Project
risk analysis a project manager must prepare
his team to overcome the constraints that
arise from :

ƒ The Budget
ƒ The schedule
ƒ The people
ƒ Facilities and equipment
ƒ External Influences

Project Management Fundamentals (Rev.0 – Feb. 2010) Page 53

 Developing Project Charter
Developing Project Charter another important
work of a Project Manager.

„ Also called as Statement of Work

„ Contains the following:
„ Purpose statement ( Purpose of doing
project)
„ Scope statement (What will be done and what
will not be done)
„ Project Deliverables (The out come, reports
etc)
„ Goals and Objectives ( Criteria for success,
effect of the completion of the project on our
business etc)
Project Management Fundamentals (Rev.0 – Feb. 2010) Page 54
 Report Writing
Writing Reports is an important skills
expected from a Project Manager

Good Report is:

„ Easy to understand
„ Clearly written
„ Not longer than required
„ Complete with necessary information
„ Correct

Project Management Fundamentals (Rev.0 – Feb. 2010) Page 55

 Report Writing Continued……
Basic Steps of writing reports

„ Collect Information
„ Plan to present in logical sequence

„ Write

„ Revise

L&D Conducts training sessions on

“Business Writing”. You may choose to
attend this course to learn more about report
writing.

Project Management Fundamentals (Rev.0 – Feb. 2010) Page 56

 Setting up Teams and Team Work

„ Essential requirement of a successful Project

„ Each individual must understand the area of
responsibility
„ Misunderstanding of responsibilities will
create confusion involving egos, neglecting
assignments etc.

Project Management Fundamentals (Rev.0 – Feb. 2010) Page 57

 Building Winning Teams
„ Motivating the Team members and leading
the project to success is great job
„ You will learn more in “Team work and
Managing Team” sessions
Tips to build winning teams
„ Define roles.

„ Make a list of all the skills needed to complete

each task on your project.
„ Do a skills inventory of the people you have,
to see where you stand.
„ Be prepared to negotiate for the team
members you need.
Project Management Fundamentals (Rev.0 – Feb. 2010) Page 58
 Building Winning Teams
„ Do the best you can with the people you have, but
make sure resulting problems are documented as
they occur.
„ If your team doesn’t have all the skills they need,
build training into the project.
„ If your team isn’t qualified for some tasks and training
would take too long, consider hiring a contract
position for that particular skill/task.
„ Diverse people are always creative

Project Management Fundamentals (Rev.0 – Feb. 2010) Page 59

 Communication
For Project Managers this skill is very much
required.
He should create a clear communication plan
„ Who to communicate to ?

„ When to communicate ?

„ What is to be communicated ?

„ How often to be communicated ?

„ Safety communications are too frequently

required ?

You will learn more in “Communication”

Training Session
Project Management Fundamentals (Rev.0 – Feb. 2010) Page 60
 Assess you Project Management Skills

Using the assessment check list, please

complete the self assessment

Project Management Fundamentals (Rev.0 – Feb. 2010) Page 61

 Final Words
„ Each project is unique
„ Nature of the project varies
„ Clients requirements vary
„ Client Management is learnt through
experience
„ Clients are those who keep us in business
„ Clarity in scope communication is the main
key
„ Use Project Planning tools and Control
methods that suits you
„ Assess and develop the skill you need
„ We are in business to make money/profit
Project Management Fundamentals (Rev.0 – Feb. 2010) Page 62