Project Management

Concept and Philosophy

Lesson Learning Outcomes
 Lesson Learning Outcomes
• At the conclusion of this lesson, the student should be able to:
• Understand the underlying philosophy of project
management
• Define a project and its attributes
• Identify key constraints within which a project must be
managed
• Understand how a project is “born”
• Visualize the life of a project
• Describe the steps involved in the project management
process
• Appreciate the benefits of project management
Definition of a Project
 Two Important Questions

Managing a project is called Project Management.

Q1: What is a project?

Q2: Why did project management become a
separate branch of study, away from the general
management?
 Definition of Project
A project is a Group of unique, inter-related activities that are
planned and executed in a certain sequence to create a unique
product or service, within a specific time frame, budget and
the clients specifications.

According to Project Management Institute’s a Project is

defined as “A temporary endeavor undertaken to create a
unique product or service”

The British standard defines a project as

“ A unique set of coordinated activities, with definite starting
and finishing points, undertaken by an individual or
organization to meet specific objectives within defined
schedule, cost and performance parameters”.
 What is a project?

A project is a unique venture with a beginning and an end,

conducted by people to meet established goals within
parameters of costs, schedule and quality.

Buchanan & Boddy (1992)

A project is a set of people and other resources temporarily

assembled to reach a specified objective, normaly with a fixed
budget and with a fixed time period. Projects are generally
associated with products or procedures that are being done for
the first time or with known procedures that are being altered.

Graham (1995)
 What is a Project?

“Unique process consisting of a set of coordinated and

controlled activities with start and finish dates, undertaken to
achieve an objective conforming to specific requirements,
including constraints of time, cost, quality and resources”

• A Project is a planned set of activities

• A Project has a scope
• A Project has time, cost, quality and resource constraints
 What is a Project?

• A project is a temporary endeavor undertaken to produce a unique

product or service

Temporary Characteristics of Unique

Projects

• Temporary – Definitive beginning and end

• Unique – New undertaking, unfamiliar ground
 Project Parameters

Some common constraints that influence a project are:

1. Scope
2. Quality
3. Cost
4. Time
5. Resources
 Relationship between Project
Parameters

• The scope and quality of a project are influenced by a

variety of constraints such as:
1. Time
2.Cost
3.Availability of Resources
Some Of The Project Initiatives Include:
• Redesigning or relocating a production facility (Manufacturing Project)
• Implementing a management information system (MIS Project)
• Developing a new alloy required for a space vehicle. (Spacecraft
Project)
• Constructing national highways (Infrastructure Project)
• Organizing the Olympics (Sports project)
• Constructing a dam for better irrigation facilities. (Infrastructure Project)
• Launching of new product (Advertising and Marketing Project)
• Implementing a new computer system (IT project or upgrade)
• Designing and Implementing a new organizational structure (HR Project)
• Designing and Constructing a house (Construction Project)
 Examples of Projects
• Planning a wedding
• Designing and implementing a computer system
• Hosting a holiday party
• Designing and producing a brochure
• Executing an environmental clean-up of a
contaminated site
• Holding a high school reunion
• Performing a series of surgeries on an accident
victim
7
 Exercise 1 – ARE THESE PROJECTS?
Building a deck YES NO
Implementing a new system YES NO
Mowing the lawn YES NO
Planning a wedding YES NO
Planning a fundraiser YES NO
Planning a student graduation YES NO
 What is NOT a project?
1. Emergency response to operations problems
• Callouts
• Repairs and troubleshooting

2. Routine operations support

• Maintenance of equipment
• Minor modifications and tuning of equipment
 Characteristics of a Project

# a project is a unique undertaking: each one will differ

from every other in some respect.(hence an atmosphere
of risk and uncertatinty)
# projects have specific objectives (or goals) to achieve
# Projects require resources
# projects have budgets
# projects have schedules
# projects require the effort of people
# measures of quality will apply
# projects require temporary organization
# projects are not permanent in nature
Definition of Project
Management
 What is Project Management?

• Managing a project is called Project Management.

• According to Project Management Institute (PMI )
• “PM is the application of knowledge, skills, tools and techniques
to project activities in order to meet or exceed stakeholder needs
and expectations”.

• PM includes
• defining project goals,
• specifying how the goals will be accomplished,
• what resources are needed,
• relating budgets and time for completion.
 Project Management Objectives
• Coordinate the various interrelated processes of the project.
• Ensure project includes all the work required, and only the work
required, to complete the project successfully.
• Ensure that the project is completed on time and within
budget.
• Ensure that the project will satisfy the needs for which it was
undertaken.
• Ensure the most effective use of the people involved with the
project.
• Promote effective communication between the projects team
members and key stakeholders.
• Ensure that project risks are identified, analyzed, and
responded.
 Triple Contraint
Time • Increased Scope =
increased time +
increased cost

• Tight Time = increased

costs + reduced scope
Quality

• Tight Budget =
Cost Scope increased time +
reduced scope.
 Key Areas of Project
Management
• Scope Management
• Issue Management
• Cost Management
• Quality Management
• Communications Management
• Risk Management
• Change Control Management
 Scope Management
• Project Scope Management is the process to ensure that
the project is inclusive of all the work required, and only
the work required, for successful completion.

• Primarily it is the definition and control of what IS and

IS NOT included in the project.
 Issue Management

• Issues are restraints to accomplishing the deliverables of

the project.
• Typically identified throughout the project and logged
and tracked through resolution.

Issue… already impacting the cost, time or quality

 Cost Management
• This process is required to ensure the project is
completed within the approved budget and includes:

1. Resources Budget
(people
equipment 1. Budget estimates
materials) 2. Baseline estimates
2. Quantities
3. Project Actuals
 Quality Management
• Quality Management is the process that insure
the project will meet the needs
• Quality Planning, Quality “conformance to requirements” -
Assurance, and Quality Control Crosby
• Clearly Defined Quality
Performance Standards “fitness for use” - Juran
• How those Quality and
Performance Standards are
measured and satisfied “the totality of characteristics of an
• How Testing and Quality entity that bear on its ability to
Assurance Processes will ensure satisfy stated and implied need’ -
standards are satisfied ISO 8402:1994
• Continuous ongoing quality control
 Communications Management
• This process is necessary to ensure timely and appropriate
generation, collection, dissemination, and storage of project
information using :
• Communications planning
• Information Distribution
• Performance Reporting
• Define the schedule for the Project Meetings
 Risk Management
• Risk identification and mitigation strategy
• Risk update and tracking

Risk… POTENTIAL negative impact to project

Tree – location, accessibility,

ownership Weather
 Change Control Management

• Define how changes to the project scope

will be executed

Scope Change Technical Specification Changes

Schedule changes

All changes require collaboration and buy in via the project sponsor’s signature
prior to implementation of the changes
Project Manager
 Exercise 2

• Write down three attributes of a good

Project Manager
 Project Manager Role

• A Good Project Manager

• Takes ownership of the whole project
• Is proactive not reactive
• Adequately plans the project
• Is Authoritative (NOT Authoritarian)
• Is Decisive
• Is a Good Communicator
• Manages by data and facts not uniformed optimism
• Leads by example
• Has sound Judgement
• Is a Motivator
• Is Diplomatic
Project Life Cycle
Project Life Cycle

Project Life Cycle defines:

THE BEGINNING AND THE END
Of a project.

PLC Defines:

1. What TECHNICAL WORK should be done in

each project phase;

2. WHO should be involved in each phase.

 SAMPLE GENERIC LIFE CYCLE

C
O
S
T

&
INTERMEDIATE
S PHASE
T
A FINAL
F PHASE
INITIAL
F
PHASE
I
N
G

L
E
V
E
L

TIME
 Project Life Cycle
Definition Planning Execution Delivery
Level of effort

1. Goals 1. Schedules 1. Status reports 1. Train customer

2. Specifications 2. Budgets 2. Changes 2. Transfer documents
3. Tasks 3. Resources 3. Quality 3. Release resources
4. Responsibilities 4. Risks 4. Forecasts 4. Reassign staff
5. Teams 5. Staffing 5. Lessons learned

Irwin/McGraw-Hill ©The McGraw-Hill Companies, 2000

 Life Cycle of a Construction Project

There are 6 Basic Phases that contribute to developing a project

from an idea to reality:-

1. Concept & Feasibility Studies

2. Engineering & Design
3. Procurement
4. Construction
5. Start-up & Implementation
6. Operation & Utilization
 The Project Life Cycle

• Projects are “born” when a need is identified by

the customer.

• Project life cycles vary in length, from a few

weeks to several years.

• Not all projects formally go through all four

phases of the project life cycle.

10
 Phases of the Project Life Cycle 1

• The first phase involves the identification of a need,

problem or opportunity.

• The need and requirements are usually written by

the customer into a document called a request for
proposal (RFP). 11
 Phases of the Project Life Cycle 2

• The second phase is the development of a proposed

solution to the need or problem.
• This phase results in the submission of a proposal.
• The customer and the winning contractor
negotiate and sign a contract (agreement). 12
 Phases of the Project Life Cycle 3

• The third phase is performing/execution of the project.

• Different types of resources are utilized
• Results in the accomplishment of the project objective
13
Phases of the Project Life Cycle 4

• The final phase is terminating/delivery of the project.

• Perform close-out activities
• Evaluate performance
• Invite customer feedback 14
Project Management Tools
 Project Management Tools
• PERT Chart- designed to analyze
and represent the tasks involved in
completing a given project

 Gantt Chart - popular type of

bar chart that illustrates a
project schedule
Gantt Chart
 Project Management
Functions

Project Project Project

Definition Planning Control
LINKS AMONG PROCESS GROUPS IN A PHASE

INITIATING
PROCESSES PLANNING
PROCESSES

EXECUTING
CONTROLLING PROCESSES
PROCESSES

CLOSING
PROCESSES

ARROWS REPRESENT FLOW OF DOCUMENTS

AND DOCUMENTABLE ITEMS
 The Technological and Sociocultural
Dimensions of the Project Management Process

Sociocultural
Leadership
Problem solving
Teamwork
Negotiation
Technical Politics
Scope Customer expectations
WBS
Schedules
Resource allocation
Baseline budgets
Status reports

Irwin/McGraw-Hill ©The McGraw-Hill Companies, 2000

 Objectives of Project Management

1. To ensure that the project is correctly designed

to meet its objectives

2. To ensure that the project is completed on

schedule, within resources and budget

3. To provide a mechanism for monitoring the

project
 To ensure that the project is correctly
designed to meet its objectives

• ensure that the project objectives and outcomes

are fully agreed by all involved

• ensure that the objectives are achievable

• ensure that the objectives satisfy customer needs

 To ensure that the project is completed on
schedule, within resources and budget

• ensures that the resources and budget are agreed

and are consistent with the needs of the project

• ensures that the life of the project is clearly defined

 To provide a mechanism for monitoring
the project

• ensures project does not depart from agreed path

• provides mechanism for examining project

progress (quarterly progress reports, agreed regular
communication….+ ?????)

• provides mechanism for correcting or stopping

failing projects (project restructuring)
 Project Management Trade-Offs
Performance

Quality

Cost Time

Irwin/McGraw-Hill ©The McGraw-Hill Companies, 2000

 Project Priority Matrix
Time Performance Cost

Constrain

Enhance

Accept

Case Meaning Effect to project

(Can the other parameters …)
Constrain Parameter is fixed, no meet the goals (time ,cost &quality)
compromise
Enhance Parameter is optimized adding value to project
Accept Parameter is tolerable, be permissible to increase (i.e. the schedule to slip,
within limits reduce the scope and performance of the project or to
Irwin/McGraw-Hill ©The McGraw-Hill Companies, 2000
go over budget?
Establishing Project Priorities
Project objectives center around satisfying Time, Performance & Cost.

These project factors can be at conflict? How?

Project Priority Matrix can help a Project Manager in making tradeoffs.

Time Performance Cost

Constrain
Enhance
Accept

Constrain: This factor must be meet, no compromise

Enhance: Optimize but can vary
Accept: Not meeting target is OK, within limits 61
Project Stakeholders

Who are the Stakeholders

of a project?
Project Stakeholders

Project Stakeholders are

INDIVIDUALS & ORGANIZATIONS
Who are actively involved in the project,

OR

Those whose interests may be

POSITIVELY OR NEGATIVELY AFFECTED
As a result of the project execution or successful completion.
 Stakeholder

“A person or group of people who have a vested

interest in the success of an organization and the
environment in which the organization operates”
 Exercise 3

Write down three typical project stakeholders

 KEY STAKEHOLDERS
• Project Manager
• Internal & External Customers
• The Performing Organization
• The Management
• The Project Sponsor
• Owners & Funders
• All the suppliers & Sub-contractors
• Team Members & their families
• Government Agencies & Media Outlets
• Individual Citizens affected by the project
• Neighbours/Community/Shareholders
 Stakeholder Engagement process

• Identify Stakeholders
• Assess needs
• Define actions
• Establish communication channels
• Gather feedback
• Monitor and review
 In Project,
What do you actually Manage?
 Managing Projects

In general, MANAGING PROJECT means:

PLANNING, ORGANIZING, & TRACKING

a project’s task
&
IDENTIFYING & SCHEDULING RESOURCES
to accomplish those tasks.
 In Project, What do you actually Manage?

• Managing Projects is a matter of keeping:

SCOPE, SCHEDULE & RESOURCES in balance.

1. SCOPE Is the range of tasks required to accomplish project goals.

2. A SCHEDULE indicates the time & schedule, as well as the total

project duration.

3. RESOURCES are the people, & equipments that perform or

facilitate project tasks.
 WHY DO PROJECTS FAIL?
1. Unclear objectives
2. Lack of senior management support
3. Lack of effective project integration
4. Inadequate funding
5. Change in project priorities
6. Original assumptions invalid
7. Ineffective team
8. Lack of effective communication processes
9. Poor project management discipline
10.No risk management
11.Inability to manage change
 Factors Affecting Project Success

1. Coordination and relations

2. Adequacy of structure and control
3. Project uniqueness, importance, and public exposure
4. Success criteria salience and consensus
5. Competitive and budgetary pressure
6. Initial over-optimism, conceptual difficulty
7. Internal capabilities buildup
Source: NASA study, “Determination of Project Success,” 1974, by David C. Murphy, Bruce N. Baker, and Dalmar Fisher
HOW IS PROJECT SUCCESS DEFINED?

1. On Time

2. Within Budget

3. Quality Conformance
Overview of Project
Management
 Growth of Project Management

• Phase I: Before 1950s

• PM was only informal
• Projects were handled on an informal basis by some people
chosen from various departments.
• No formal project management departments.
• Handling projects was also done by Line Managers
• Formal Lines of Communication were unnecessary
• Sophisticated organization structure was non-existent.
Phase II : Late Sixties
• PM gained widespread acceptance.
• Complexity of the tasks and the sizes of the organizations
increased.
• Formal Project Management Departments came into force
• Clear cut distinction between the role of Project Manager and
Line Manager were established
• All the departments started involving in the project activities
• Effective communication system were in place.
• Resistance from the people involved was very high on account of
Pay packets, Power in the organization and visibility to the top
management.
Phase III - Late Seventies
•Project Management started spreading further and further
and following benefits started to accrue from it.
• Unhindered flow of work horizontally and vertically
• Improvement in the orientation towards customer problems.
• Easier demarcation of responsibilities
• Better adaptation to a dynamic environment
• Ability to handle a multi-disciplinary activity within specified
constraints.
• Improvement in organizational design.
Project Management Institute(PMI)
• To meet the industrial requirements, to improve the skills and
standards and to make project manager more professional, an
international institution the Project Management Institute was
set up in 1969.
• PMI is a non-profitable professional organization dedicated to
promoting Project Management.
• It has more then 150000 members over 150 countries.
• Role of PMI
• To Set industry standards
• Conducts research and provides education
• Certification Program
• Conducts Seminars and International Workshops to discuss the
present context and improve the standards of project management.
 EVOLVEMENT OF PROJECT
MANAGEMENT IN MALAYSIA
• In 1981, the PMI Board of
Directors authorized the
development of what has
become A Guide to the Project
Management Body of Knowledge
(PMBOK Guide), containing the
standards and guidelines of
practice that are widely used
throughout the profession.
Benefits of Project Management

• Satisfied customers
• Additional business
• Expansion of career opportunities
• Satisfaction of being on a winning team
• Improved knowledge and skills
When projects are successful, everybody WINS
19
 Why Do We Need Project
Management?

• Exponential expansion of human knowledge

• Global demand for goods and services
• Global competition
• Above requires the use of teams versus individuals

* Project Management—A Managerial Approach, 1995, by Jack R. Meredith and Samuel J. Mantel Jr.
Shenhar(1996) has proposed the following project classification
dimensions.

Shenhar Classification :
Source : http://www.maxwideman.com/papers/improvingpm/fig2.gif