Project Management

INTRODUCTION
 Introduction
2

1. Benefits of Formal Project 6. Relationship Between Project

Management Management, Operations
2. What is a Project? Management, and
3. What is Project Management? Organizational Strategy
4. Relationships Among Portfolio, 7. Role of the Project Manager
Program Management, Project 8. Project Management Body of
Management, and Knowledge
Organizational Project
Management

*Source: PMBOK Guide 5th Edition (Page 1) 2

 Benefits of Formal Project Management
3
 Application of the global standards
of best practices
 Better control of financial,
physical, and human resources
 Shorter development times
 Higher quality and increased
reliability
 Lower costs
 Higher profit margins
 Improved productivity
 Better internal coordination
 Higher worker morale
 Improved customer relations
3
 What is a project?
4
 Project is a temporary endeavor
undertaken to create a unique
product, service, or result.
 Temporary means that every
project has a definite beginning
and a definite end.
 Unique means that the product or
service is different in some
distinguishing way from all
similar products and services.
*Source: PMBOK Guide 5th Edition (Page 3)
 Projects are unique –
characteristics are progressively
elaborated
 Progressively: proceeding in steps
 Elaborated: worked with care and
detail
 Scope of project should remain
constant even as characteristics
are “progressively elaborated”
4
 Example of Projects
5
 Developing a new product,
service, or result;
 Effecting a change in the
structure, processes, staffing, or
style of an organization;
 Developing or acquiring a new or
modified information system
(hardware or software);
*Source: PMBOK Guide 5th Edition (Page 4)
 Conducting a research effort
whose outcome will be aptly
recorded;
 Constructing a building, industrial
plant, or infrastructure; or
 Implementing, improving, or
enhancing existing business
processes and procedures.
5
 What is Project Management?
6

 Project Management is the  Five Process Groups

application of knowledge, skills, • Initiating
tools and techniques to project • Planning
activities to meet project • Executing
requirements. • Monitoring and Controlling
• Closing.

*Source: PMBOK Guide 5th Edition (Page 5) 6

 Project Constraints
7

 Scope
 Quality Scope

 Schedule Time Cost

 Budget
 Resources
Risk Resource

 Risks
Quality

Project Constraints

*Source: PMBOK Guide 5th Edition (Page 6) 7

 Project Success
8

 There are several ways to define  What Helps Projects Succeed?

project success  Executive support

 The project met scope, time, and cost  User involvement

goals  Experienced project manager

 The project satisfied the customer /  Clear business objectives
sponsor  Minimized scope
 The results of the project met its main  Standard software infrastructure
objective, such as making or saving a  Firm basic requirements
certain amount of money, providing a
 Formal methodology
good return on investment
 Reliable estimates
 Or, simply making the sponsors
 Other criteria, such as small
happy
milestones, proper planning,
competent staff, and ownership
Source: Introduction to Project Management, 2 nd Edition, Kathy Schwalbe 8
 Relationship among Project Management, Program Management, and
Portfolio Management
9

 Portfolio Management Highest

Level
Portfolio

Lower
 Program Management Level
Portfolios

Higher Higher
Level Level
 Project Management Programs Programs

Lower Lower
Level Level
Programs Programs

Projects Projects Projects Projects Projects

Portfolio, Program and Project Interactions

*Source: PMBOK Guide 5th Edition (Page 5) 9

 Portfolio Management
10
 Portfolio Management refers to a
collection of projects or programs
and other works that are grouped
together to facilitate effective
management of that work to meet
strategic business objectives.
*Source: PMBOK Guide 5th Edition (Page 6)
 For example, an infrastructure firm
that has the strategic objective of
“maximizing the return on its
investments” may put together a
portfolio that includes a mix of
projects in oil and gas, power, water,
roads, rail, and airports.
 Another example, a Real Estate
conglomerate which has construction
of commercial buildings, residential
building, theme parks, roads and
highways under separate program,
under on its business portfolio.
10
 Program Management
11

 A program is defined as a group of  An example of a program is a new

related projects, subprograms, communications satellite system with
and program activities managed projects for design of the satellite and
the ground stations, the construction
in a coordinated way to obtain
of each, the integration of the system,
benefits not available from and the launch of the satellite
managing them individually.
 A project may or may not be part
of a program but a program will
always have projects..

*Source: PMBOK Guide 5th Edition (Page 6) 11

 Project and Strategic Planning
12
 Market demand
 An oil company authorizes a project
to build a new refinery in response to
chronic gasoline shortages
 A food and beverage company wants
to launch a new fruit drink
 Strategic opportunity/business need
 A training company authorizes a
project to create a new course in order
to increase its revenues
 A group of company wants to
implement centralized program
management office
*Source: PMBOK Guide 5th Edition (Page 10)
 Social need
 A nongovernmental organization in a
developing country authorizing a
project to provide potable water
systems, latrines, and sanitation
education to communities suffering
from high rates of infectious diseases
 Environmental consideration
 A public company authorizing a
project to create a new service for
electric car sharing to reduce
pollution);
12
 Project and Strategic Planning
13
 Customer request
 An electric utility authorizes a project
to build a new substation to serve a
new industrial park
 A land lord wants a real estate
developer to build a residential
building
 Legal requirement
 A chemical manufacturer authorizes a
project to establish guidelines for the
handling of a new toxic material.
*Source: PMBOK Guide 5th Edition (Page 10)
 Technological advance
 A software firm authorizes a new
project to develop a new project to
develop a faster, cheaper, and smaller
laptop after advances in computer
memory and electronics technology
 An university wants to develop a
software to manage academic
programs
13
 Project Management Office
14

 A project management office (PMO) is  The responsibilities of a PMO can

a management structure that range from providing project
standardizes the project-related management support functions to
governance processes and facilitates actually being responsible for the
the sharing of resources, direct management of one or more
methodologies, tools, and techniques. projects.
 Type of PMO
 Supportive
 Controlling
 Directive

*Source: PMBOK Guide 5th Edition (Page 10) 14

 Type of PMO
15

 Supportive. Supportive PMOs provide a consultative role to projects by

supplying templates, best practices, training, access to information and lessons
learned from other projects. This type of PMO serves as a project repository. The
degree of control provided by the PMO is low.
 Controlling. Controlling PMOs provide support and require compliance
through various means. Compliance may involve adopting project management
frameworks or methodologies, using specific
templates, forms and tools, or conformance to governance. The degree of control
provided by the PMO is moderate.
 Directive. Directive PMOs take control of the projects by directly managing the
projects. The degree of control provided by the PMO is high.

*Source: PMBOK Guide 5th Edition (Page 11) 15

 Primary Functions of PMO
16

 Managing shared resources across all  Developing and managing project

projects administered by the PMO; policies, procedures, templates, and
 Identifying and developing project other shared documentation
management methodology, best (organizational process assets); and
practices, and standards;  Coordinating communication across
 Coaching, mentoring, training, and projects.
oversight;
 Monitoring compliance with project
management standards, policies,
procedures, and templates by means
of project audits;

*Source: PMBOK Guide 5th Edition (Page 11) 16

 Operations and Project Management
17

 Project Management  Operations Management

 Has a start and end date  Repetitive work
 Unique and separate work  Existing Systems

 One time resource configuration  Reliance on standard procedure

 Focus on change  Focus on maintaining
 Should have a primary sponsor  Efficiency and effectiveness

Source: Introduction to Project Management, 2 nd Edition, Kathy Schwalbe 17

 Role of the Project Manager
18

 The project manager is the person  Interpersonal Skills of a Project

assigned by the performing Manager
organization to lead the team that is  Leadership
responsible for achieving the project  Team building
objectives.  Motivation
 Responsibilities and Competencies of  Communication
the Project Manager  Influencing
 Knowledge  Decision making
 Performance  Political and cultural awareness
 Personal  Negotiation
 Trust building
 Conflict management
 Coaching

*Source: PMBOK Guide 5th Edition (Page 17) 18

 Project Management Body of Knowledge
19

 The PMBOK® Guide contains the  Other related standards

standard for managing most projects  Standard for Program Management [3]

most of the time across many types of addresses the management of programs,
industries.  The Standard for Portfolio Management

 The standard, included describes the addresses the management of portfolios,

 Organizational Project Management
project management processes used to
Maturity Model (OPM3®) examines an
manage a project toward a more
enterprise’s project management
successful outcome. process capabilities.
 This standard is limited to individual
projects and the project management
processes that are generally
recognized as good practice

*Source: PMBOK Guide 5th Edition (Page 18) 19