Introduction To Project Management

Introduction to Project
Management
Chapter 1
Project Management
Chapter
Vignette
The Element of Discipline
• Deaths climbing Mt. Aconcagua are an extreme
example of consequences associated with a lack
of discipline
• Discipline to act on the earlier decision to curtain
summit attempts after the agreed-to-turn-around
time or in severe weather
• Avoid pressure to cast aside or shortcut project
management practices
• Practices, like planning, are the pillars of project
management discipline
© 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted
to a publicly accessible website, in whole or in part. 2
Chapter
Vignette
The Element of Discipline
• Managing projects at the CIA involved short
notice to acquire unspent funds
• Discipline required needed planning and quick
action
• The top 2 percent of project managers spend
twice as much time planning as the other 98
percent
• Identify those pillars that we will decide to
practice with the required levels of discipline
At the end of this chapter…
• Define a project using characteristics that are
common to most projects and describe
reasons why more organizations are using
project management.
• Describe major activities and deliverables, at
each project life cycle stage.
• List and define the nine knowledge areas and
five process groups of the project
management body of knowledge (PMBOK®).
At the end of this chapter…
• Delineate measures of project success and
failure and reasons for both.
• Identify project roles and distinguish key
responsibilities for each.
What is a project?
Project – “a temporary endeavor undertaken to
create a unique product, service, or result.” PMBOK®
Guide
• A project requires an organized set of work

efforts.
• Projects require a level of detail that is
progressively elaborated upon as more
information is discovered.
• Projects are subject to limitations of time and
resources such as money and people.
• Projects
© 2012 have
Cengage Learning. a Reserved.
All Rights defined beginning
May not be scanned, copiedand ending.
or duplicated, or posted
What is a project?
• A project has a unique combination of

stakeholders
stakeholders – “persons or organizations … that are

actively involved in the project, or whose interests may
be positively or negatively affected by execution or
completion of the project.” PMBOK® Guide
Project Management (PM)
• PM includes work processes that initiate, plan,
execute, and close work
• Work processes require tradeoffs among the
scope, quality, cost, and schedule of the project
• PM includes administrative tasks for planning,
documenting, and controlling work
• PM includes leadership tasks for visioning,
motivating, and promoting work associates.
• PM knowledge, skills, and methods apply for
most projects
Project management – “the application of knowledge,

skills, tools and techniques to project activities to meet
project
to a publicly requirements.”
accessible website, in whole or inPMBOK®
part. Guide 8
History of Project Management
• PM emerged as a formal discipline in the 1950s
• Techniques for planning and controlling
schedules and costs were developed for huge
aerospace and construction projects in the 1950s
and 1960s
• Early PM involved determining project schedules
based on order of project activities
• Manufacturing, research and development,
government, and construction projects used and
refined management techniques
History of Project Management
• Software companies offered software for planning and
controlling project costs and schedules in the 1980s and
1990s
• Risk management techniques for complex projects have
been applied to less complex projects
• Communication and leadership playa major role in
project success
• Rapid growth and change in information technology and
telecommunications fueled use of PM in the 1990s and
2000s
How Can Project Work Be Described?
• Projects are temporary and unique; operations
are more continuous.
• Project managers need “soft skills” and “hard
skills” to be effective.
• Project managers frequently have more
responsibility than authority.
• Projects go through predictable stages called a
life cycle.
Projects Versus Operations
• Projects are temporary
• Projects have both routine and unique
characteristics
• Operations consist of the ongoing work
needed to ensure that an organization
continues to function effectively
Soft Skills and Hard Skills
• Soft skills include communication and leadership
activities.
• Hard skills include risk analysis, quality control,
scheduling, and budgeting work
• A successful project manager needs both soft and
hard skills along with the judgment of when each
is more necessary.
• Training, experience, and mentoring are
instrumental in developing necessary skills.
Authority and Responsibility
• Projects are most effectively managed with
one person being assigned accountability
• Project managers negotiate with functional
managers
• A project manager needs to develop strong
communication and leadership skills to
persuade subordinates to focus on the project
when othermanager
Functional work beckons.
– “someone with management
authority over an organizational unit.…the manager of
any group that actually makes a product or performs a
service.”
to a publicly accessiblePMBOK®
website, in wholeGuide
or in part. 14
Project Life Cycle
• All projects go through predictable stages
called a project life cycle.
• Life cycle allows for control to assure that the
project is proceeding in a satisfactory manner
and that the results are likely to serve its
customer’s intended purpose
Project life cycle – “a collection of generally sequential
project phases whose name and number are determined
by the control needs of the organization or organizations
involved in the project.” PMBOK® Guide
Project Life Cycle Stages
• Selecting and initiating— a project is proposed, planned at a
high level, and key participants commit to it in broad terms
• Planning—starts after the initial commitment, includes detailed
planning, and ends when all stakeholders accept the entire
detailed plan.
• Executing—includes authorizing, executing, monitoring, and
controlling work until the customer accepts the project
deliverables.
• Closing and realizing—all activities after customer acceptance to
ensure project is completed, lessons are learned, resources are
reassigned, contributions are recognized, and benefits are
realized.
• Most companies insist that a project must
pass an approval of some kind to move from
one stage to the next
• The project life cycle is highly formalized and
very specific
• Projects are measured at selection, progress
reporting, and benefits realization points
Life Cycle for Quality Improvement Projects
Understanding Projects
• Project Management Institute
• Project Management Body of Knowledge (PMBOK)
• Selecting and Prioritizing Projects
• Project Goals and Constraints
• Defining Project Success and Failure
• Using MS Project
• Types of Projects
• Scalability of Project Tools
The Project Management Institute
• The largest professional organization

• Publishes and regularly updates A Guide to
the Project Management Body of Knowledge
(PMBOK® Guide)
• Established a professional certification -
Project Management Professional (PMP®)
• Established a second certification—Certified
Associate in Project Management (CAPM)
Project Management Body of Knowledge
(PMBOK®
• Consists of a project life cycle, five process

groups, and nine knowledge areas
Project management process group – “a logical
grouping of the project management inputs, tools and
techniques, and outputs.” PMBOK® Guide
PMBOK® Process Groups
Initiating—“defines and authorizes a project or a project
phase”
Planning—“defines and refines objectives and plans

actions to achieve objectives”
Executing—“directs and manages people and other

resources to accomplish project work”
Monitoring and controlling—“collects data and checks

progress to determine any needed corrective actions”
Closing—“formalized acceptance of project outcomes

and ending the project”
PMBOK® Knowledge Areas
Integration management—“processes and activities
needed to define, combine, unify, and coordinate the
various processes and project management activities”
Scope management—“processes required to ensure
that the project includes all the work required, and only
the work required, to complete the project successfully”
Time management—“processes required to manage
timely completion of the project”
Cost management—“processes involved in estimating,
budgeting, and controlling costs so that the project can
be completed within the approved budget”
Quality management—“processes and activities of the
performing organization that determine quality policies,
objectives, and responsibilities so that the project will
satisfy the needs for which it was undertaken”
PMBOK® Knowledge Areas
Human Resources management—“processes that
organize, manage, and lead the project team”
Communications management—“processes required
to ensure timely and appropriate generation, collection,
distribution, storage, retrieval, and ultimate disposition of
project information”
Risk management—“processes of conducting risk
management planning, response planning, and
monitoring and control … to increase the probability and
impact of positive events and decrease the probability
and impact of negative events in the project”
Procurement management—“processes necessary to
purchase or acquire products, services, or results from
outside the project team”
Selecting and Prioritizing Projects
• Identify potential projects
• All parts of the organization are involved
• Determine which projects align best with
major goals of the firm
• Ensure overall organizational priorities are
understood, communicated, and accepted
Selecting and Prioritizing Projects
What value does each potential

project bring to the organization? Are the demands of
performing each project
understood?
Are the resources
needed to perform the
project available?
Which projects will

Is there enthusiastic best help the
support both from the organization achieve
external customers its goals?
and from one or more
internal
to a publicly accessiblechampions?
website, in whole or in part. 27
Project Goals and Constraints
• Projects are undertaken to accomplish specific
goals
• Scope and quality measure performance and
should result in outputs that satisfy customers
• Consider scope and quality subject to
constraints of time and cost
Scope – “the sum of all products, services, and results
to be provided as a project.” PMBOK® Guide
Quality – “the degree to which a set of inherent

characteristics
to a publicly accessible website,fulfills requirements.”
in whole or in part. PMBOK® Guide 28
Project Goals and Constraints
• Obstacles or challenges may limit the ability to
perform
• Opportunities may allow projects to exceed
original expectations.
• Project Managers (PMs) decide which goals
and constraints take precedence
Project Customer Tradeoff Matrix
Defining Project Success and
Failure
• Project success is creating deliverables that
include all of the agreed upon features
• Outputs please the project’s customers.
• Customers use the outputs effectively as they
do their work (meet quality goals)
• The project should be completed on schedule
and on budget (meet time and cost
constraints).
Defining Project Success and
Failure
• Successful projects are completed without
heroics
• People who work on the project should learn
new skills and/or refine existing skills.
• Organizational learning should take place and be
captured for future projects.
• Reap business-level benefits such as
development of new products, increased market
share, increased profitability, decreased cost, etc.
Project Success
•Meeting Agreements
•Cost, schedule, and specifications met
•Customer’ Success
•Needs met, deliverables used, customer satisfied
•Performing Organization’s Success
•Market share, new products, new technology
•Project Team’s Success
•Loyalty, development, satisfaction
Why Projects Fail
• Not enough resources are available for project
completion.
• Not enough time has been given to the project.
• Project expectations are unclear.
• Changes in the scope are not understood or agreed
upon by all parties involved.
• Stakeholders disagree regarding expectations for
the project.
• Adequate project planning is not used.
Types of Projects
• Classifying by industry
• Classifying by size
• Classifying by timing of determination of
project scope
• Classifying by application
PMI Communities of Practice
Aerospace and Defense Manufacturing
Agile Marketing and Sales
• Projects in Automation Systems Oil, Gas, Petrochemical
Consulting Organizational
different Design-Procurement- Performance Management
industries often Construction Pharmaceutical
have unique Diversity Program Management
E-Business Office
requirements Financial Services Quality
• PMI specific Global Sustainability Retail
Government Risk Management
interest groups Healthcare Scheduling
Human Resource Service and Outsourcing
Information Systems Students of PM
Innovation and New Product Troubled Projects
Development Utility
International Development Women in PM
Learning, Education and
Development
36
Classifying by Size
Large projects often

require more detailed
planning and control
Classifying by Timing of Project Scope
Clarity
How early in the project

the project manager and
team are likely to be
able to determine what
the project scope will be
Classification by Application
• All projects require planning and control
• The art of project management deals with
when to use certain techniques, how much
detail to use, and how to tailor the techniques
to the needs of a specific project.
Scalability of Project Tools
• All projects require
– Determination of the wants and needs of the
customer(s)
– Understanding of the amount of work involved
– Determination of a budget and schedule
– Decisions about available workers and who will do which
tasks
– Management until the owner accepts the project results
• Projects are scaled up or down to meet the
complexity of the task
Project Roles
• Project Executive-Level Roles
• Project Management-Level Roles
• Project Associate-Level Roles
Project Executive-Level Roles
• The steering team
– The top leader (CEO) and his/her direct reports
– Select, prioritize, and resource projects in accordance
with the organization’s strategic planning
– Ensure that accurate progress is reported and
necessary adjustments are made.
• The chief projects officer
– Keeper, facilitator, and improver of the project
management system
– Responsible for project standards, methods, training,
documentation
Project Management Office (PMO) – “an organizational

body or entity assigned various responsibilities related to the
centralized and coordinated management of those projects
within its domain. The responsibilities of the PMO can range
from providing project management support functions to
actually being responsible for the direct management of a
project.” PMBOK® Guide
• The sponsor
– Takes an active role in chartering the project and
reviewing progress reports
– Takes a behind-the-scenes role in mentoring and
assisting the project manager throughout the project
life.
Sponsor – “the person or group that provides the financial

resources, in cash or in kind, for the project.” PMBOK®
Guide
Project Management-Level Roles
• Project manager
– Directly accountable for the project results, schedule,
and budget
– The main communicator
– Responsible for the planning and execution of the
project
– Works on the project from start to finish.
– The project manager often must get things done
through the power of influence since his or her formal
power
Project may be –limited.
manager “the person assigned by the performing
organization to achieve the project objectives.” PMBOK®
Guide
• Functional manager
– The department heads—the ongoing managers of
the organization
– Determine how the work of the project is to be
accomplished
– Supervise the work
– Negotiate with the project manager regarding
which workers are assigned to the project
• Facilitator
– Helps the project manager with the process of
running meetings and making decisions
– Frees the project manager to concentrate on the
content of the project
– The facilitator concentrates on the process.
– A facilitator helps the PM understand
organizational politics and provides suggestions on
how to handle situations.
• Senior customer representative
– Ensures that the needs and wants of constituents
in the customer’s organization are identified and
prioritized
– Ensures that project progress and decisions
continually support the customer’s desires.
Project Associate-Level Roles
• Core team member
– People assigned to a project from start to finish
– The core team does most of the planning and
makes most of the project level decisions.
Project management team – “members who are

directly involved in project management activities.”
PMBOK® Guide
Overview of the Book
• Project management is integrative, iterative,
and collaborative
• This book has three major parts
– Organizing and Initiating Projects
– Planning Projects
– Performing Projects
Part I - Organizing and Initiating Projects
• Project management basics (Chapter 1)

• Project selection and prioritization (Chapter 2)
• Organizational structure, organizational
culture, project life cycle, and project
management roles of the parent organization
(Chapter 3)
Project charter – “a document issued by the project initiator
•orChartering
sponsor thatprojects (Chapterthe
formally authorizes 4)existence of a
project, and provides the project manager with the authority
to apply organizational resources to project activities.”
PMBOK® Guide
Part II – Planning Projects
• Identify project stakeholders, their wants and
needs, and how to prioritize decisions among
them (Chapter 5)
• How to determine the project scope and
outline it in the work breakdown structure
(WBS)
Work (Chapter
breakdown 6)
structure (WBS) – “a deliverable-
oriented hierarchical decomposition of the work to be
executed by the project team to accomplish the project
objectives and create the required deliverables. It organizes
and defines the total scope of the project.” PMBOK® Guide
Part II – Planning Projects
• Scheduling projects (Chapter 7)
• Scheduling resources on projects (Chapter 8)
• Project budgeting (Chapter 9)
• Risk planning (Chapter 10)
• Project Quality (Chapter 11)
Project schedule – “the planned dates for performing
schedule activities and the planned dates for meeting
schedule milestones.” PMBOK® Guide
Budget – “the approved estimate for the project or

any work breakdown structure component or any
schedule
to a publicly accessibleactivity.”PMBOK®
website, in whole or in part. Guide 53
Part III – Performing Projects
• Project supply chain management (Chapter 12)
• Leading and managing project teams (Chapter 13)
• Monitoring and controlling project work (Chapter
14)
Monitor and control project work – “the process of
• Finishing projects and
tracking, reviewing, andregulating
realizingthe
benefits
progress(Chapter
to meet
the performance objectives defined in the project
15)
plan”PMBOK® Guide
Close project – “the process of finalizing all activities

across all of the project process groups to formally close
a project or phase.” PMBOK® Guide
Summary
• A project is an organized set of work efforts undertaken to
produce a unique output subject to limitations of time and
resources such as money and people
• Project management includes work processes that initiate,
plan, execute, control, and close project work.
• Tradeoffs must be made between the scope, quality, cost, and
schedule
• All projects, regardless of size, complexity, or application,
need to be planned and managed.
• PMI® is a large professional organization devoted to
promoting and standardizing project management
understanding and methods
Summary
• A Guide to the Project Management Body of Knowledge
(PMBOK® Guide), is composed of five process groups:
initiating, planning, executing, monitoring and controlling, and
closing along with nine knowledge areas: cost, time, scope,
quality, risk, communications, human resources,
procurement, and integration.
• Successful projects require an understanding of what project
success is and what drives it
• Successful projects require an understanding of project failure
and its major causes.
• Project management requires an understanding of the various
executive, managerial, and associate roles in project
management
Skyline Chili, Inc.
• Cincinnati-based restaurant franchise with menu
specializing in high-quality chili-related food
products
• Customers value unparalleled hospitality
• Skyline management wanted to ensure training
program aligns with business plan of unparalleled
hospitality
• Required outcome: high-performing, execution-
ready, hospitable employees
PM in Action Example
Skyline Chili, Inc.
• Brainstorming and prioritizing identified critical
training projects
• Top priority was to establish a centralized
training department with a point contact person
• Training department was not planned or
budgeted
• As a result of a business case and job analysis a
director of training was put in place
Skyline Chili, Inc.

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Introduction to Project

• A project requires an organized set of work

• A project has a unique combination of

stakeholders – “persons or organizations … that are

Project management – “the application of knowledge,

• The largest professional organization

• Consists of a project life cycle, five process

Planning—“defines and refines objectives and plans

Executing—“directs and manages people and other

Monitoring and controlling—“collects data and checks

Closing—“formalized acceptance of project outcomes

What value does each potential

Which projects will

Quality – “the degree to which a set of inherent

Large projects often

How early in the project

Project Management Office (PMO) – “an organizational

Sponsor – “the person or group that provides the financial

Project management team – “members who are

• Project management basics (Chapter 1)

Budget – “the approved estimate for the project or

Close project – “the process of finalizing all activities

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