PROJECT

MANAGEMENT
INTRODUCTIO
N
The word ‘project’ came from the Latin
word projectum from the Latin verb
proicese (to throw something
forwards) which in turn comes from
‘pro’ which denote something that
proceeds the action of the next part of
the word.
PROJEC
T

A project is a combination of
interrelated activities with well defined
objectives to be completed in a specific
time period.
Project is something special which
is different from routine and regular
activities
DEFINITION
S
 According to Harrison, “ Project is a non
routine, non repetitive, one-off
undertaking, with well defined time,
financial and technical performance
goal;”
 According to Project Management
Institute (PMI), “Project can be defined
as a temporary endeavor undertaken to
accomplish a unique objective at goal.”
EXAMPLES OF
PROJECT
Construction of a house.
Writing a book.
Building a dam.
Introducing a new product in the market.
Construction of a new bridge over a
river.
A Politician contesting an
election. Organizing a seminar.
 DIFFERENCE BETWEEN
PROJECT AND REGULAR
OPERATIONS
Project Regular Operation
> One Time > Repetitive
> Use of wide variety > Limited Skills
of skills
> Use of special > Equipments are
purpose equipment in continuous use
for
short duration > Revenues are there
> No revenue during
CHARACTERISTICS OF
PROJECT
Well defined objectives
Uniqueness (Non-routine
activity) Complexity (Demands
team work) Life cycle
Risk and uncertainty
Change (In response
to
environment) Non
Recurring Duration of
activities uncertain
CHARACTERISTI
CS
OF PROJECT

Optimality
Multidisciplinary & Interdependencies Forecasting
Definite time limit Team work
Conflict for resources
A separate disposable team
Performance measurement
TAXONOMY OF
PROJECTS
 Based on the type of activity
Based on the location of the project
Based on the completion time
Based on ownership
 Based on size
 Based on need
TYPES OF
PROJECTS
Construction projects
Research projects
Reengineering projects
Procurement projects
Business implementation projects
Miscellaneous types
PROJECT FAMILY
TREE
Plan

Programme

Project

Work

Package Task

Activity
 MANAGEMENT
Knowledge, skills, tools and techniques

PROJECTACTIVITIES
Conception, design, Implementation, Commissioning
Project Management

Project Management
SUCCESSFUL PROJECT
Within planned time, resource, scope and quality
CATEGORIES OF
PROJECT
Project

National International

Non-Industrial Industrial

Non Conventional High Conventional Low

/R&D Technology Technology Technology

Mega Major Medium Mini

Grass root Expansion Modification

Normal Crash Disaster

INTRODUCTION TO PROJECT MANAGEMENT
Is a system of procedures, practices,
technologies and know how that enables
the planning, organising, staffing, directing
and controlling of project activities to
successfully manage a project.
It may be described as planning ,organizing,
staffing ,directing and controlling some part
of the organization for relatively short period
of time to achieve the project objectives
with in laid down constraints
DEFINITIO
N
It is defined as “The application of
knowledge, skills, tools and techniques to
project activities in order to meet project
requirement.”
“ Project Management is the art of directing
and coordinating human and material
resources throughout life of a project by
using modern management techniques to
achieve pre-determined objectives of scope ,
cost , time, quality to the equal satisfaction of
those involved.”
-Project mgt inst of USA
WHY PROJECT
MANAGEMENT

Interdependency and complexity

Sharing of Resources
Size of Project
Importance of the Project
Changes in the market
3 Ws OF
PROJECT
MAWNhaAt :GSEcMienEtiNficTapplic
ation of modern techniques and tools.
Whom : In planning, financing,
implementing, monitoring, controlling
and coordinating unique activities of
project
Why : To produce desirable outputs in
accordance with predetermined
objectives within constrains of time and
cost.
THE SCOPE
TRIANGLE

Project scope
and
quality

Resources
PROJECT
PARAMETERS
Defining project
scope Defining
quality Managing
time Managing cost
Managing resources
IMPORTANCE OF
PROJECT
MIAncNreAasGinEgMsizEeNan
Td complexity of projects
Increasing importance of financial
controls
Urgency of early completion
Growing amount of statutory
regulations
Increased sophistication of
technology
Shortening of product life cycle
Global competition
Cost control
Explosion of knowledge
Focus on customers
BENEFITS OF
PROJECT
MANAGEMEN
T Clear description of work to be
performed Responsibilities and
assessment of tasks Time limit for task
completion
Measurement of accomplishment
against plans is possible
Problems are exposed in advance
allowing corrective action
Objective that cannot be met are
identified early
ELEMENTS OF A SUCCESSFUL

PRHOasJEbeCeTn finished on time.

 Is within its cost budget.
 Performs to technical/performance standards which satisfies the end user.
Project Management
CHAPTER 2
PROJECT MANAGEMENT CYCLE
Some more terms…….

 Project life cycle

 Phases of a project
 Phase exits or stage gates
 Stakeholders
Project Life Cycle
 Project management is about acquiring or achieving the project goal

 Most projects need to be broken down into a logical sequence of

‘phases’, known as the project life cycle.
Phases of a Project
 Organisations normally break a project down into several
project phases for better management control
 Collectively, the project phases are known as the project
life cycle
 Each project phase is marked by the completion of one or How do you
more deliverables. eat an
elephant?
Stage Gates
 Each phase ends with a review of the deliverables and
performance in order to detect and correct errors and to decide if
the project should continue into the next phase.
 The phase end reviews are often called phase exits or stage
gates.
4 Phases of a Project

 project initiation
 project planning
 project execution and control
 project closure

Collectively these four phases represent the

‘project life cycle.’
4 Phases of a Project

Project Project Project Project

Initiation Planning execution closing
and control
Scope WBS Network Hand over
identification OBS diagrams Commission
Team set up Scheduling Reporting
Project
definition

Project life cycle

 Project Initiation
• Project Initiation the phase in the
is Project
Life Cycle and first essentially
starting upinvolves
the project. You initiate a project
by defining its purpose and scope, the
justification for initiating it and the solution to
be implemented. You will also need to recruit
a suitably skilled project team, set up a Project
Office and perform an end of Phase Review.
Understand
your needs
and do
stakeholder
analysis Establish the
Set the TORs
office

Feasibility Appoint the Perform

study team review phase
 Project Planning
• After defining the project and appointing the
project team, you're ready to enter the
detailed Project Planning phase. This involves
creating a suite of planning documents to help
guide the team throughout the project
delivery.
 Create a Create Create quality
project plan resource plan plan

Create Create an
Create risk
communication acceptance
plan
plan plan

Create Perform a
Contract the
procuremen review phase
suppliers
t plan
 Project Execution
• With a clear definition of the project and a suite of detailed project plans,
you are now ready to enter the Execution phase of the project.
• This is the phase in which the deliverables are physically made and
presented to the customer for acceptance.
• While each deliverable is being made, a suite of management processes
are undertaken to monitor and control the deliverables being output by
the project.
• These processes include managing time, cost, quality, change, risks, issues,
suppliers, customers and communication.
• Once all the deliverables have been produced and the customer has
accepted the final solution, the project is ready for closure
 Produce
Deliverables
Perform
Phase Review
Monitor and
control

Do time Do risk
management management

Do cost Do issue
management management
Do quality Do
management procuremen
t
Do change Do
management acceptance
Do
communication
Project Closure

 Project closure involves releasing the final deliverables to the customer, handing
over project documentation to the business, terminating supplier contracts,
releasing project resources and communicating project closure to all stakeholders.
 The last remaining step is to undertake a Post-Implementation Review to identify
the level of project success and take note any lessons learned for future projects
 Top Reasons for Project Failure
• 84% - When serving on a project team, employees aren’t relieved of some
of their routine responsibilities

• 80% - Employees don’t receive training in project management

methodologies before serving on a project team.

• 69% - Project teams aren’t given enough resources to

accomplish their
goals.

• 62% - Project teams throughout the organization fail to follow a standard

methodology for defining, planning and implementing projects.

• 55% - The right people aren’t selected to lead or serve on project teams.

• 46% - Project teams aren’t given clear, attainable goals.

Allocation of time and money…….
10% Initiation 20% Initiation

Planning Planning
25% 30%

60% Implementation 40% Implementation

5% 10% Closing
Closing

Typical Successful projects

Sydney Opera House
 Good or bad project?
Sydney Opera House
 Planned - 1959 to 1963 (4 years)
- $7 million
 Actual - 1959 to 1973 (14 years)
- $100 million
Project Life Cycle (PLC) as a Tool

 PLC is a management tool to make it easier to manage the project sequence

 The choice of phases vary from industry to industry and the PLC will vary to
suit the needs of the participants
 Different project managers choose different PLC’s, depending on the nature of
the task i.e. Engineering, software development etc.
Project Life Cycle (PLC) Uses

 To maintain an overview of the project

 To help identify tasks
 Break the project into manageable parts
 Integrate activities (bite sized chunks)
 To help with the timing of decisions (go/no go)
 To guide the level of contingency needed
Common characteristics of PLCs

 Cost and staff levels low in early phases of the project

 Probability of failure, risk and uncertainty are highest in the early
phases
 Ability of stakeholders to influence the outcome of the project are
highest at the beginning of the project
 Although many projects have similar phase names, with similar
work requirements, few are identical
 Sub-projects within a project also have distinct project life cycles
 Project Stakeholders

 Project stakeholders are individuals and/ or

organisations who are actively involved in
the project and whose interests are directly
affected by the outcome of the project

Key Stakeholders
 the project advocate or champion (promotes the idea)
 the project sponsor (for funding)
 the project manager (for the execution)
 customer or client (the user)
 the performing organisation (the team)
 Other categories of stakeholders can be identified such as internal and
external clients, team members & families, suppliers, contractors,
Government etc.
The Project Management Dilemma

Managing stakeholders expectations can be difficult because of the sometimes

widely different objectives of the various groups of stakeholders
Your understanding of the project needs to match stakeholders’
understanding. Work to make sure it is what you end up with!
Stakeholders Identification
 Let’s take you completing this course as a project (some people might
argue that it isn’t a project – but it is – it has a start and an end date, a
clear goal and some phases to it

 Who are all the stakeholders?

Stakeholder Cycle

Identify
Stakeholders

Implement
Stakeholder Gather
Management Information
Strategy on Stakeholders

Project
Management
Predict Team Identify
Stakeholder Stakeholders'
Behavior Mission

Identify Determine
Stakeholder Stakeholder
Strategy Strengths and
Weaknesses
For the next session – homework
 Think about a project you have undertaken – with your studies, at home, at
work or anywhere else

 Identify the phases of the project - did you follow each of the 4 phases?

 Identify the stakeholders for that project

TRIPLE CONSTRAINT
 What is Triple
constraints?
 All projects are carried out under certain constraints – traditionally, they are cost, time and
scope.

 These three factors are represented as a triangle

 Each constraint forms the vertices, with quality as the central theme:
 Projects must be delivered within cost
 Projects must be delivered on time
 Projects must meet the agreed scope – no more, no less
 Projects must also meet customer quality requirements
"On Time, On Spec, On Budget"

Quality
 Time/Schedule

 Time management is the management of the time spent, and progress made, on project
tasks and activities.

 Excellent time management in project management requires the planning, scheduling,

monitoring and controlling of all project activities.

 Time is a terrible resource to waste. This is the most valuable resource in a project.

 Every delivery that you are supposed to make is time-bound. Therefore, without
proper
time management, a project can head towards a disaster.
Scheduling
process
Defining Activities

Sequencing Activities

Resource Estimating for Activities

Duration and Effort Estimation

Development of the Schedule

 Cost

 The project cost is a cost required to procure all the needed products, services and
resources to deliver the project successfully.

 Cost to develop a project depends on several variables including : labor rates, material
rates, risk management, plant, equipment, and profit
 Types of cost

Fixed Cost
Any Cost which is fixed throughout the project life cycle and would not change by
quantity, time or any other project factors called for a fixed cost.

Variable Cost
On the contrary to fixed cost, the Variable cost is a cost which varies or changes in
proportion to product or service that the project produces.

Direct Cost
Costs which are directly visible and accountable to produce the project output are
called direct costs.
Indirect Cost
Costs which do not directly contribute or specific to the output of the project are called indirect
costs. It may be either variable or fixed.

Sunk Cost
Sunk Costs are costs which are already spent, but failed to incur any business value and cannot
be recovered and permanently lost.
 Scope

 scope is the set of boundaries that define the extent of a project.

 The scope describes what is to be delivered to the customer as a result of the project
initiative.

 scope allows the project manager and project team to understand what falls inside or
outside the boundaries of the project

 Activities that fall within the boundaries of the scope statement are considered “in
scope” and are accounted for in the schedule and budget
key processes for
scope
 Define the Product Requirements

 Define the Process Requirements

 Involve the correct stakeholders

 Identify the limitations

 Change Management
How requirement can go
wrong
Trade-offs
What is a Project Charter?
 Document that formally recognises the project. Includes:
 references to other relevant documents
 problem/ business needs statement
 description of the project to be undertaken
 project objectives
 constraints and assumptions
Project Charter Example?
Sample Project Charter
The Project Manager

“Project Managers are special people

who will ensure project success”

1
Project Manager
■ Responsible for implementing and completing the
project
■ Prepare preliminary budget and schedule
■ Select people to serve the project team Know
■ the client
■ Ensure that proper facilities are available
■ Ensure that supplies are available when
needed
■ Take care of routine details
Comparison between Functional and
Project Manager’s Role and
Responsibilities
 Functional Manager Project Manager
In charge of 1 functional Oversee many functional
dept.(eg;marketing,finance) areas
Specialist in the area they Generalist-wide b.ground of
manage experience and knowledge
Analytically oriented More skills at synthesis
Know some details of each Rarely has in depth
operation knowledge of all areas
Responsible for 4W 1H of Use systems
each job/task approach
Direct,technical supervisor Facilitator

Know the technology to Facilitate cooperation

advise and solve problems

4
 Vice President

Manufacturing

Welding Machining Assembly Painting

Example of Functional Structure

 Project
Manager

Finance Engineering Contracts Manufacturing Planning Purchasin

g

Example of Project Manager responsibilities

Task of Synthesis
■ What needs to be done?
■ When must it be done?

■ How are resources required to do the

job to be obtained?
Project Mgr Responsibilities
■ Parent organization
■ Project & client

■ Members of project team

Responsibilities to Parent
Company
■ Proper conservation of resources
■ Timely and accurate project communication
■ Competent management of the project
■ Keep management informed – project’s
status, cost, timing and prospects
■ Running over budget or delay
■ Protect firm from risk Damage
■ control
Responsibilities to the Project
■ Preserve integrity of the project
■ Resolve conflicting demands made by

many parties – engineering, marketing,

manufacturing, administration, purchasing
Responsibilities to Project
Team Members
■ Finite nature of the project
■ Specialized nature of the team

■ Concern with future of project people

■ Transition back to functional units

PM Career Path
■ Participation in small and then larger
project
■ Give command over small and large

project
■ Project engineer, manufacturing

manager, deputy project manager,

project manager
Special Demands on the
Project Manager
■ Acquiring Adequate Resources
■ Acquiring and Motivating Personnel
■ Dealing With Obstacles

■ Making Project Goal Trade-offs

■ Failure and the Risk and Fear of Failure

■ Breadth of Communication

■ Negotiation
 Acquiring Adequate Resources

■ Human resource, material, machine,

subcontractors, consultants, space,
utilities
■ Resource trade-offs

■ Human resource – skills, pay

■ Subcontracting – cost, delay, control

■ Under and overestimate of resources

■ Resource acquisition
 Acquiring and Motivating
Personnel
■ “Borrowed” from functional department
■ Top producers and high skill Challenge
■ and variety in project Influence over
■ salary and promotions Effective team
■ members:
✓ High quality technical skills
✓ Political sensitivity
✓ Strong problem orientation
✓ Strong goal orientation High
✓ self esteem
Dealing With Obstacles
■ Better planning, fewer crises
■ Project inception – resources

■ Budget and schedule

■ Change in technical plans, schedule

■ Uncertainty surrounding what happens at

the end of the project

■ Open communication with all parties
 Making Project Goal Trade- offs

■ Trade-offs – cost, time, performance

■ Technical and managerial functions

■ Project formation – no difference in

importance
■ Build-up stage – schedule

■ Final stage – performance

■ Smoothness of running project team

for technical progress

 Failure and the Risk and Fear of
Failure
■ Failure in routine project – come in late
or over budget
■ Failure in new project – technical

problem
■ Waves of pessimism and optimism
 Breadth of Communication
■ Top management, functional department, clients, suppliers, authorities, subcontractors
 Engineering change management Use of cyber communication tools PM fully
understand project’s intent PM has managed projects that failed Have support of top
management

 Build and maintain solid information network PM must be flexible

Negotiation
■ Highly skill negotiator
Selecting the Project Manager
■ Strong technical background
■ Hard-nosed manager Mature
■ individual
■ Someone who is currently
■ available
Someone on good terms with senior
■ executives
A person who can keep the project teams
■ happy
■ One who has worked is several departments A
person who can walk on the waters
Credibility
■ Technical credibility –perceived as
possessing sufficient technical knowledge
■ Reasonable understanding of base
technologies
■ Administrative credibility – responsibilities to
client and senior management
■ Trade-offs decisions Mature
■ judgments, courage
Sensitivity
■ Political sensitivity
■ Sense inter-personal conflict

■ Persuade people to cooperate

■ Sense any failure

 Leadership and Management style

“Interpersonal influence, exercised in situations

and directed through communication
process, toward the attainment of specified
goal or goals”
■ Capitalize on people’s strengths, cover their

weaknesses, know when to take over

■ When to punish/reward

■ When to communicate
PROJECTS
Nature of
Projects
• A project is a
temporary endeavor
undertaken to create a
unique product,
service, or result
Source:- PMBOK

9
3
 Project outcomes
vary
Success Failure

Source:- Ian Mackley Projects – Key Issues in Success/Failure © September 2009 Source :- Getty 5
DominionPost Peter M Salmon & Manning Charles & Associates Ltd Images / Stu
Forster
Success is
rare?

9
5
Or is
it?
Sauer et al Standish

Budget overshot 13% 43%

Schedule overshot 20% 82%

Scope under delivery 7% 48%

Overall success 67% 33%

9
6
 Some key defining
factors
Successful Unsuccessful
• Strong, visible executive support • Uncertain leadership
• Dedicated teams • Resource scarcity/competition
• Alignment with vision • Unclear goals, vision or strategy
• Change impacts clear and known • Opaque change impact
• Accountability/Responsibility • No Accountability/Responsibility
• Change seen as an on-going process • Change is episodic and event based
• Metrics and incentives used to drive • Metrics and incentives non-aligned
desired behaviours with desired behaviours
• Undersell, over-deliver • Lots of “happy talk"
• Everyone gets a win is the • Clear winners and losers
approach

Projects – Key Issues in Success/Failure © September 2009 8

Peter M Salmon & Manning Charles & Associates Ltd
 ISO 38500
Governance Model

Source:ISO38500
Standard Projects – Key Issues in Success/Failure © September 2009 9
Peter M Salmon & Manning Charles & Associates Ltd
Principles
1. Responsibility
2. Strategy
3. Acquisition
4. Performance
5. Conformance
6. Human Behavior
Principles - defined
• Principle 1: Responsibility
– Individuals and groups within the organization understand and
accept their responsibilities in respect of both supply of, and
demand for IT. Those with responsibility for actions also have the
authority to perform those actions.
• Principle 2: Strategy
– The organization‟s business strategy takes into account the current
and future capabilities of IT; the strategic plans for IT satisfy the
current and ongoing needs of the organization‟s business strategy.
• Principle 3: Acquisition
– IT acquisitions are made for valid reasons, on the basis of
appropriate and ongoing analysis, with clear and transparent
decision making. There is appropriate balance between benefits,
opportunities, costs, and risks, in both the short term and the long
term.
Principles defined
• Principle 4: Performance
– IT is fit for purpose in supporting the organization, providing the
services, levels of service and service quality required to meet
current and future business requirements.
• Principle 5: Conformance
– IT complies with all mandatory legislation and regulations. Policies
and practices are clearly defined, implemented and enforced.
• Principle 6: Human Behaviour
– IT policies, practices and decisions demonstrate respect for Human
Behaviour, including the current and evolving needs of all the
„people in the process‟.
Six Principles mapped to key
project factors
Positive Negative
Strong, visible executive support 1 Uncertain leadership 1

Dedicated teams 1,6 Resource scarcity/competition 1,6

Alignment with vision 2,4 Unclear goals, vision or strategy 2,4

Change impacts clear and known 3 Opaque change impact 3

Accountability/Responsibility 1,3 No Accountability/Responsibility 1,3

Change seen as an on- 4 Change is episodic and event based 4

going process
Metrics and incentives used to 6 Metrics and incentives non-aligned 6
drive desired behaviours with desired behaviours
Undersell, over-deliver 4 Lots of “happy talk” 4

Everyone gets a win is the approach 6 Clear winners and losers 6

 Impact of governance

Source:Sauer, Gemino and Reich

Projects – Key Issues in Success/Failure © September 2009
Peter M Salmon & Manning Charles & Associates Ltd
 Impact of governance

Source:Sauer, Gemino and Reich

Projects – Key Issues in Success/Failure © September 2009
Peter M Salmon & Manning Charles & Associates Ltd
Project Initiation + Planning - Common Issues

Issue Principle

Unclear or unconvincing business case 1,2,3

Insufficient attention to stakeholders and their needs 1,3
Failure to manage expectations 1,2,6
Insufficient or non-existent approval process 1,3,5
Poor definition of project scope and objectives 1,4,6
People not dedicated to project; 1,4
Trying to balance too many different priorities, 1,
Project team members lack experience and the required skills 4,6
Insufficient time or money given to project 1,3

Projects – Key Issues in Success/Failure © September 2009

Peter M Salmon & Manning Charles & Associates Ltd
Project Initiation + Planning - Common Issues

Issue Principle

Inadequate project status reporting/visibility 1,2,3

Lack of senior management/executive support 1
Project sponsors not 100% committed to the objectives 1,6
Team lacks authority or decision making ability 1,6
Insufficient and/or over-optimistic planning, poor estimating 1,4,6
Long or unrealistic timescales; forcing project end dates ; 1,2,3,
Lack of thoroughness and diligence in the project startup phases 1, 3,4

Projects – Key Issues in Success/Failure © September 2009

Peter M Salmon & Manning Charles & Associates Ltd
OK, but what do we do?
• Implement a framework which
– Evaluates needs on an ongoing basis
– Ensures IT meets business objectives
– Monitors outcomes and adherence to policy, law etc
• Intent being to:-
– Reduce risk
– Ensure the informed use and deployment of IT
– Provide the information to enable objective evaluation of
IT within the entity
Key elements
• Leadership
– Entity
– Sponsor
– Project
• Common values, e.g.
– Integrity
– Openness
– Communication
• Resourcing
– People
– Training
– Time
Desired outcome

Source: Ian Mackley/

Dominion Post