21/01/2014

 A Project is “a temporary endeavor
undertaken to create a unique product,
service, or result.” within a specific period*
 Operations is work done to sustain the
business.
 A project ends when its objectives have been
reached, or the project has been terminated.
 Projects can be large or small and take a
short or long time to complete.
*PMI, A Guide to the Project Management Body of Knowledge
(PMBOK®)
 A project:
 has a unique purpose.
 is temporary.
 has a team leader (project manager)
 has constraints (time, cost, scope & quality)
 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.

 Operations are ongoing execution of activities those
produce the same result, product, or provide
repetitive services. Operations are used to run
regular business models.
 Operations are different as opposed to the Projects,
which are known for its uniqueness.
 Operational works are performed to achieve
business goal and to sustain the business. They are
permanent in nature and their only constraint is to
make profit for the organization.
 Any manufacturing or production process can be an
example of Operations.

Projects Operations
Projects are unique and
temporary
Operations are recurring
activities and permanent with
repetitive output
Projects are executed to start
a new business objective and
terminated when it is achieved
Operational work are
performed to keep
organization functioning
Projects have definitive
beginning and ending
Operations are ongoing
Projects create a unique
product, service, or results
Operations produce the same
product
“The person who is fully responsible for
the project and will be held accountable
for its success or failure.”

 It’s the people (Project Manager and
Project Team), not the procedures and
techniques, that are critical to
accomplishing the project objective.
 Procedures and techniques are merely
tools to help the people do their jobs.

 Project Managers work with project sponsors, project
teams, and other people involved in projects to meet
the project goals.
 Program: “A group of related projects managed in a
coordinated way to obtain benefits and control not
available from managing them individually.” *
 Program Managers oversee programs and often act
as bosses for project managers.
*PMI, A Guide to the Project Management Body of Knowledge (PMBOK® Guide)
(2004), p. 16.
o Program- Programs have a larger scope (than
projects), usually a group of inter-related projects,
and provide more significant benefits. Operates over
the long-term, and are designed to use the
organization’s resources to impact a specific subject
area.
o Project- Has a beginning and end, defined
resources, and creates a unique product or service.
o Process- Part of the ongoing operations of the
organization; may be introduced or changed over
time, but once established, an organizational
process operates on a continuous basis without a
specified end.
 Project
Management is
“the application
of knowledge,
skills, tools and
techniques to
project activities
to meet project
requirements.” *

*PMI, A Guide to the Project Management Body of Knowledge (PMBOK® Guide)
(2004), p. 8.
 A method for organizing tasks
 A structured framework to help a group work
productively
 Tools to aid in task sequencing, dependency
analysis, resource allocation, scheduling, etc.
 Tools to track progress relative to plan
 A systematic approach to achieve the desired
objectives and results

• Complex project needs coordination of:
 Multiple people
 Multiple resources (labor, equipment, etc.)
 Multiple tasks – some must precede others
 Multiple decision points – approvals
 Phased expenditure of funds
 Matching of people/resources to tasks
 Better control of financial, physical, and human
resources.
 Improved customer relations.
 Shorter development times.
 Lower costs.
 Higher quality and increased reliability.
 Higher profit margins.
 Improved productivity.
 Better internal coordination.
 Higher worker morale (less stress).
 Customers
 Project Sponsor - the Guy with deep pockets
 Users
 Project team
 Support staff
 Suppliers
 Inspectors
 Opponents
 People involved in or affected by project activities
 Surroundings
 Every project is constrained in different ways by its:
 Scope goals: What work will be done?
 Time goals: How long should it take to complete?
 Cost goals: What should it cost?
 It is the Project Manager’s duty to balance these
three often-competing goals.
In project management there is a key concept called the triple
constraint or the project management triangle. The idea is that
while managing a project the PM must keep three constraints
in balance; the scope or work that is required to produce the
projects end results, the amount of time required to perform the
work, and the cost or budget for the project.
Successful
project
management
means meeting
all three goals
(scope, time, and
cost) – and
satisfying the
project’s
sponsor!

 Without this dashboard, you
have no way of knowing where
the project is currently
heading, how far off course it
is, or what action to take to get
it back on course.
 If you neglect this function,
you and all project
stakeholders are subject to
unhappy surprises.
Manage the Triple Constraint
Scope
(Performance)
Cost
(Budget)
Time
(Schedule)
Client
Agreement
 Builds the dashboard you use for controlling the project.

 Uncontrolled projects rarely reach their original goal.
 Complexity of problems facing the project manager
 Growth in number of project oriented organizations
 Project Management Institute (PMI) was established in the year
1969.
 Its Headquarter is in Newtown Square, Pennsylvania, United States
 By 1990 it had 7,500 members
 Within next 10 years, over 60,000 members
 By 2005, it had exploded to over 150,000 members
 And at present, it has over 400,000 members spread in more than 184
countries.
 Exponential growth is indicative of the rapid growth in the use of projects

 Also reflects the importance of PMI as a force in the development of
project management as a profession
 Over 500,000 people hold the PMP credentials/certifications.
 Weak business case
– is this just a whim or is there a real need for the project?
If so, prove it!
 Lack of senior management commitment
– these are the decision-makers and hold the purse strings. You
have to have their buy-in or else you set yourself up for failure.
 Inadequate project planning (budget, schedule, scope,
etc.)
– This will always present problems. You have to know what you
are doing, why you are doing it, who’s doing what, when it needs to
be done and how much it will cost.
 Absence of user involvement
 New or unfamiliar technology
 Lack of defined, clear, or concise requirements


1. Sound project management processes
2. Project tied to the organization’s business goals
3. Senior management commitment
4. Good change management
5. Detailed requirements
6. Realistic schedule
7. Good stakeholder relationships
8. Empowered project manager
9. Skilled and appropriate team members with defined
roles and responsibilities
10. Timely availability of funding

 31% of all new software
development projects are
cancelled before completion

 53% of projects cost increase
by up to 89% of original
estimates

 16.2% of software projects
completed on time and on
budget

 Average overrun is 222% of
original estimates

Source: Standish Group, 1995
A survey on overall
applications development
projects revealed:

– 46% of IT projects were
"challenged" (completed
over budget and past the
original deadline).

– 6% of projects succeeded.

– 28% of projects failed.


Source: Standish Group, 1998
 The Standish Group are not the only organization to
report similar findings. In August 2007, Dynamic
Markets surveyed 800 project managers from eight
different countries. They found that:
 62% of projects overrun on time.
 49% of projects overrun on budget.
 47% of projects suffer from higher than expected
maintenance costs.
 28% of organization have experienced projects that
do not fit requirements.
 25% of organizations have seen business users
reluctant to adopt new systems.

France, Germany, UK, United States, Japan, India, Singapore, Sweden
23
 Geo Spread – National & International
 Sector – Industrial & Non Industrial
 Technology – Non Conventional, High Tech,
Conventional Technology, Low Tech
 Size – Mega, Major, Medium, Mini
 New or Existing – Grass Root, Expansion,
Modification
 Research – Knowledge, market oriented

1. Scope Management
2. Cost Management
3. Time Management
4. Communication Management
5. Human Resource Management
6. Quality Management
7. Risk Management
8. Procurement Management
9. Integration Management

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