Chapter -3: Project Management

• Course Objectives: To introduce students to the modern project

management principles, tools and techniques so that they will be
able to successfully plan, schedule and monitor projects in
technology and business.

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 Introduction to Project Management

What is a Project?

 Project :- “temporary endeavor undertaken to create a unique

product, service, or result *

 project is a sequence of unique, complex and connected

activities having one goal or purpose with unique scope of
work and that must be completed by a specific time, within
budget, and according to specification.

*PMI, A Guide to the Project Management Body of Knowledge (PMBOK® Guide) (2004), p. 5.
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 Cont’d…

• Required to be completed within

 Predetermined cost
 Scheduled time
 With the required performance level
 With minimum requirement of change in scope

• Specified Time
– Projects have a specified completion date self-imposed by
management or specified by a customer or government agency.
• Within Budget
– Projects also have resource limits,
• According to Specification
– The customer, or the recipient of the project’s deliverables, expects a
certain level of functionality and quality from the project.
 Properties
• Sequence of Activities:
– activities that must be completed in some specified
order, or sequence based on technical requirements.
• Unique
 The out come is unique: it differs in some way from similar
products or services
 Unique location
 Unique work elements
 Unique management process dependent on situations
• Complex
 The activities that make up the project are not simple,
repetitive acts
 Cont’d…
 Temporary Endeavor
 Every project has a definite beginning and a definite end.
 Projects are not ongoing efforts

• Has one goal

– Projects must have a single goal,

• Interconnected activities
 Connectedness implies that there is a logical or technical
relationship between tasks
 They are considered connected because the output from one
activity is the input to another pairs of activities.
 Projects Vs Operations

Projects Operations
• projects are temporary and
 Operations are ongoing and
unique.
repetitive nature,
 A project ends when its  The objective of an ongoing

objectives have been reached, operation is to sustain the

business.
or the project has been
 Use existing systems, properties,
terminated.
and capabilities
 Set of interrelated jobs

Eg: developing a payroll software vs running the

payroll every month 6
 Types of Projects

 Projects can be large or small and take a short or long

time to complete.
Example:
• Projects at personal Level {Preparing for exam)

• Projects in Local neighborhood ( School function, Fundraising campaign)

• Organizational Project ( Building Construction, Launching a new product)

• National Project (Great Renaissance Dam project, Addis Ababa City Rail Way
Project etc.)
• Global Projects (UN peace mission)

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 Project Management Defined
• Project management is the application of knowledge, skills, tools and

techniques to project activities, in order to meet project requirements and

meet or exceed stakeholder needs and expectations from a project

which tries to balance competing demands for project scope, time, cost,

quality and resources

• Is accomplished through the application and integration of the project

management processes of initiating, planning, executing, monitoring and

controlling, and closing.

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 Managing Projects
Management of a project is the interaction between

Predefined
technique of
accomplishment

tool

process

D
people D oer
fa i e t e s o f
C lure rmi the
o m / s u ne ac
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ve o le e

p e cc
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co n

t i t es s n
ut he

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t h an d ?

e
eo w
 l iv a t

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

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Project Management Aspects

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Project Management
 A method for organizing tasks.  The triple constraint of
 Tools to aid in task sequencing, Project management:
dependency analysis, resource  Scope goals: What work will be
done?
allocation, scheduling, etc.  Time goals: How long should it
take to complete?
 Why Project management?  Cost goals: What should it cost?
 Complex project needs coordination of:
 Multiple people
 Multiple resources

e
 Multiple tasks – some must precede

m
others

Ti

Co
e/
 Multiple decision points – approvals

st
l
du
 Phased expenditure of funds

he
 Matching of people/resources to tasks Resources

 It is the project manager’s duty to balance Sc Scope/Quality

these three often-competing goals.
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 Projects Life Cycle

 Projects will generally be sub-divided into several stages or

phases to provide better management control.

 Each project phase is marked by completion of one or more

deliverables.
 A deliverable is a tangible, verifiable work product (such as feasible
study, a detail design or working prototype).

 Collectively, these project phases are called the Project Life

Cycle.

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 Phases of projects

Plan Monitoring &

development Controlling

Project
Launching Closure
Scoping

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 Phases of a project

1. Scoping the project 2. Planning the project

• State the problem/opportunity • Identify project activity

• Establish the project goal. • Estimate activity duration.

• Define the project objectives. • Determine resource

• Identify the success criteria. requirements.

• List assumptions, risks, obstacles • Construct/ analyze the project

network.

• Prepare the project proposal.

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 Phases of a project

4. Monitoring the progress

3. Launching the plan

• Recruit and organize project team • Establish progress reporting system

• Establish team operating rules. • Install change control tools/process.

• Level project resources. • Define problem-escalation process.

• Schedule work packages. • Monitor project progress versus plan.

• Document work packages • Revise project plans.

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 Phases of a project

5. Close out the project

• Obtain client acceptance,

• Install project deliverables.

• Complete project documentation.

• Complete post-implementation audit

• Issue final project report.

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 Project Life Cycle
• Definition/initiation : identify the need costs benefits, and risks
• Planning: who, how long, what to do?
• Execution/control: doing and checking the project
• Termination/closing: ending the project
Level of Effort

Definition Planning Execution/Impl./Control Closeout

 Selection  Estimates  Status Reports  Training
 Charter  Schedules  Changes  Transfer
 Goals  Sequencing  Quality Documents
 Specs  Budgets  Forecasts  Release
 Tasks  Resources Resources
 Responsi  Risks  Lessons
bilities  Staffing Learned
 Create WBS
• Process of subdividing project deliverables and project
work into smaller, more manageable components.

Inputs Tools & Techniques Outputs

1. Project scope 1. Decomposition 1. WBS
statement 2. WBS dictionary
2. Requirements 3. Scope baseline
documentation 4. Project document
3. Organizational update
process assets

• WBS does not show dependencies

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 Cont’d…Create WBS

 WBS: Work breakdown structure

– The WBS breaks the project scope into smaller and more
manageable pieces called work packages
– Each level of WBS is a small or piece of the level above
– Work not in the WBS is not part of the project
 WBS dictionary provides more detailed components, e.g. description of work,
responsible organization, acceptance criteria
• Agreed Scope baseline includes project scope statement, WBS, WBS
dictionary

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Example of WBS (Functional Approach)

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 Example of WBS (Physical space approach)
 Project
 Main building
 1st floor
 Structures
 Plumbing
Electrical
 HVAC
2nd floor
Service building
 Structures
Plumbing
 Electrical
 HVAC
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WBS DESIGN [The 100% Rule]

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 Example of WBS (Procedure approach)
 Project
 Feasibility
 Design
 Basic
 Detail
 Bid documents
 Shop drawings
 Bid
 Construction
 Foundations subcontract
 Main building
 Piles
 Concrete foundations
 Service building
 Piles
Concrete foundations
 Steel erection
 Finishing
 Commissioning 23
 Organization Breakdown Structure (OBS)
 Decomposition of necessary resources to perform job.
 Project resources
 Project management team
 Project manager
 Construction superintendent
 Field superintendent
 Office manager
 Scheduler
 Accounter/controller
 Field engineer
 Construction force
 Worker
 Subcontractor
 Electrical
 Plumbing
 Insulation
 Roads 24
 Integrating WBS and OBS

 Each work package is associated with areas of the project

organization that will assume functional and budgetary
responsibility for it.
 The individuals to be held responsible for the work packages are
shown in a chart called the responsibility matrix.
 An advantage of the matrix is that project staff and stakeholders can
easily see who is responsible for what.

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• Project Planning and Scheduling

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