Basic Principles in Project Management

Program Structure
Module Lecture/Topic
Module - 1 Basic Principles in Project Management
Module - 2 Project Appraisal and Selection
Module - 3 Project Management process groups and Scope
management
Module - 4 Project schedule Management
Module - 5 Project Cost Management
Module - 6 Project Quality Management
Module - 7 Project Resource Management
Module - 8 Risk Analysis and Management
Module - 9 Approaches for Software system development
Module - 10 Software crisis – the big picture
Module - 11 Software reuse and business process re-engineering
Chamath Gunasekara (PMP,MSc, BIT- UCSC)

Course Facts
• Grading scheme – 100% Assignments.

• Assignment part one (3000 words )
• Assignment part Two (3000 words )
• Total lecturing – 40 hours.

Contact me
Chamath.chanaka@outlook.com
+94713398297
+94773336996
Skype : chamathchanaka
Reading Materials
• Required Reading
– Laudon, K. & Laudon, P. 2013. Management Information Systems. 13th Edition. Pearson.
– PMBOK version 5(2013) or 6(2017).
• Recommended Reading/Learning Materials

– Beynon-Davies, P., 2009. Business Information Systems. Palgrave Macmillan.
– Mantel, S.J., Meredith, J.R., Shafer, S. & Sutton, M. 2011. Project Management in Practice. 4th Edition. Wiley &
Sons.
• Journals
– International Journal of Project Management
– European Journal of Information Systems
• E-Book Reading
– Essentials of management information systems by Laudon, Kenneth C; Laudon, Jane Price
– https://www.dawsonera.com/readonline/9780273765462
– Developing Information Systems Author: [edited By] James Cadle.
– https://www.dawsonera.com/readonline/9781780172460

Module 1
Basic Principles
in Project
Management
Lesson Focus Areas..
1. What is a project?
2. Why projects are started?
3. What is an operation?
4. Operations vs projects.
5. What is a program?
6. What is a portfolio ?
7. What meant by project management?
8. What is portfolio management?
9. What are Project management processes and
knowledge areas?
10.What is Common project management
iteration?
Lesson Focus Areas..
11. What are project constraints?
12. Who is the project manager and what is he/she
doing in the project ?
13. Project lifecycle and common characteristics of it.
14. Who are Project stakeholders?
15. Types of organizations.
 Projectized
 Matrix
 Functional
16. Revision questions.

Project: Biometric authentication Facility for Saudi
Arabia Investment Bank’s client applications.
Authorized company : DirectFN

Project manager : Sampath
Effort : 60 Man Days
Budget at completion : $600,000
Project description:
1. Each client application (mobile and TAB) should facilitate with the facial
recognition or fingerprint scanner and devices which do not have the above
capabilities use the excising general username and password authentication.
2. For the web application, single signoff facility should be enable.
3. Proper project documentations and user guides are required by the client.
4. …………… etc

After 3 Months of Duration,
Sampath’s project

How Sampath will Eliminate these
issues in his further projects?
By Successful
Project Management
What is a project?
Definition : ‘A project is a temporary

endeavor(try/attempt) undertaken to create a unique
product, service, or results’.
 Duration of the project is finite.

 Projects are not on-going efforts.
 ‘Temporary’ has no relevance to duration.
 Most projects are undertaken to create a
lasting outcome.

Why are projects started ?
Projects are typically authorized as a result of one or more

of the following strategic considerations :
 A market demand
 An organizational need
 A customer request
 A technological advancement
 A legal requirement

Operations Vs. Projects
 Operational work is ongoing and repetitive to support
the business and systems of the organization.
 And project work ends when project closed.
 When a project is finished the product is handed off to
operations.
 Operations are the ongoing execution of activities and
they follow an organization’s procedures to produce
the same result or a repetitive service.

Which of these scenarios are operations, and
which are projects ?

Example of Project /
Operations :
A plumber may be doing a support work to fix a leak. Each day he fixes
leaks in 20 locations. Each leak may require a different solution (some
may need a new washer, or a new pipe, or some putty), but it is still
support work.
But let’s say during a leak fix, he realizes that the whole tubing is weak,
damaged at many locations, and is going to explode at any time. Thus, he
informs the home owner that a “Redesign the bathroom” project should
be undertaken if you want a permanent fix, and the plumber can then give
the details of the work required (scope), and a quotation (budget), and
estimated time to fix the whole thing (schedule).
If the home owner (Sponsor) agrees to the time/cost/scope, a “remodel the
bathroom” project is born. If not, then the “fix the leak” support ticket is
completed and closed with the required documentation updates
(payments, sign-off).
Chamath Gunasekara (MSC, BIT- UCSA)
Programs and Subprojects
 A group of related projects.

When we manage a group of similar projects together we call it
a “Program”.
 By grouping projects related program, an organization
can coordinate the management of projects.
 When projects are divided in to small more
manageable components they are called “Subprojects”

Program
Project 1 Project N Other related work

Organization Vision and Mission
Vision - A vision statement is a statement of an

organization’s primary aspirations of what it hopes to
achieve or to become.
Example:-
Disney: ”To make people happy”.
Srilankan Airlines: “To be the most preferred airline in
Asia”.
Dialog Axiata plc: “To be the undisputed leader in the
provision of multi-sensory connectivity resulting always, in
the empowerment and enrichment of Sri Lankan lives and
enterprises”.
Organization Vision and Mission
cont.
Mission - The mission statement describes what the organization
needs to do now to achieve the vision.
Example :
Srilankan Airlines – “ We are in the air transportation business. We
provide our customers with a reliable and pleasant travel experience.
We provide our business partners with a variety of innovative,
professional and mutually profitable services. We meet Shareholder
expectations of profitably marketing Sri Lanka and contributing
towards the well-being of Society. We are a competent, proactive
and diligent team. Our contribution is recognized and rewarded”

Portfolio
 A portfolio includes a group of programs,

individual projects and other related operational
work.
 That are prioritized and implemented to achieve
strategic business goal (vision).

Protfolio
Other related
Project Program Project
work
Project Project

What is ‘Portfolio Management?’
 A “ Portfolio” is a collection of projects or programs and other
work that are grouped together to facilitate effective
management of that work to meet strategic business
objectives.
 One goal of Portfolio Management is to maximize the value of
the portfolio by careful examination of candidate projects and
programs for inclusion in the portfolio and the timely
exclusion of projects not meeting the portfolio’s strategic
objectives.
 To decide which projects to continue and which projects to
hold back or terminate.
 Another goal is balancing the investments and efficient use of
resources. Chamath Gunasekara (PMP,MSc, BIT- UCSC)
What is ‘Project Management?’
 The application of knowledge, skills, tools and

techniques to project activities, to meet project
requirements and objectives.
 Project management is accomplished through the
application and integration of the project
management processes of initiating, planning,
executing, monitoring and controlling, and closing.
Chamath Gunasekara (PMP,MSc, BIT- UCSC, PSM)

Project Management Process (stages of
the project)
I – Initiating (Start)
P – Planning (Plan)
I E – Execution(Do)
M & C- Monitoring &
P Controlling(Check & Act)
C
C – Close (End)
M& E
C

Initiating (Start)
 Project officially approved
 Some high-level planning to do at this stage
 Verify as project manager if you can meet scope, time, cost

and constrains.
Documents: (project charter, Stakeholder registry)

Planning (Plan)
 Detail planning
 Create a plan to plan , execute , monitor & control and close the
project
Documents: (PM plan, Scope MP, Schedule MP, Cost MP, quality MP,
HR/Resource MP, Communication MP, Risk MP, Procurement MP,
Stakeholder MP etc.)

Execution (Do)
 Team complete the work according to the processes

and procedures detailed in project management plan.
Outputs (Work performance Data, Deliverables)

Monitor & Control (Check & Act)
 The work is in progress now

 The work results (work performance data) is
monitoring to make sure the project is tracking to :
Baselines in project management plan.
Outputs(work performance reports)

Close(End)
 The work is done.

 Project is closed.

Common Project Management Iteration

PMI Standard – PMBOK 6th Edition
 05 Process Groups
 10 Knowledge Areas
 49 Process

Project constraints
Time Cost
Resources
Scope
Risk Quality
Customer
satisfaction
Project Manager’s Role
 Initiates the project, plans it, and implements it,

monitors and report the progress until all the
deliverables are made according to the agreed plans.
 Responsible for managing stakeholders, and
meeting/exceeding stakeholder expectation.
 Responsible for the communication(75%-90%) of
project issues, and to keep an open and honest
communication with all the parties involved.

Project Manager’s Role Cont./-
Project management work generally involves:

 Identifying requirements
 Establishing clear and achievable objectives
 Balancing the competing demands for scope,
time, and cost (Triple constraints ) and quality.
Chamath Gunasekara (PMP,MSC, BIT- UCSA)

Areas of expertise required by Project
Management Team
 The Project Management Body of Knowledge.
 Application area knowledge, standards, and regulations.
 Understanding the project environment.
 General management knowledge and skills : planning,
organizing, staffing, executing, and controlling the operations of
an ongoing enterprise.
 Interpersonal skills: Effective communication, influencing the
organization, leadership, motivation, negotiation and conflict
management, and problem solving.

Characteristics of Project Life Cycle
 It defines the phases that connect the beginning of a project
to its end.
 It generally defines:
 What technical work to do in each phase.
 When the deliverables are to be generated in each
phase and how each deliverable is reviewed, verified,
and validated
 Who is involved in each phase
 How to control and approve each phase
 Deliverables from one phase are usually reviewed for
completeness and accuracy and approved before work starts
on the next phase.
Common Characteristics of Project Life Cycle
 Cost and staffing levels are low at the start, higher
towards the end, and drop rapidly as the project
comes to the conclusion.
 Risk and uncertainty are the highest at the start.
 Stakeholder influence is higher at the start, then
gradually drops as the project progress
 Completion of a deliverable/s characterizes a project
phase. Deliverable is a measurable, verifiable work
products (a specification, feasibility study report).
 Phase end reviews are called phase-exits, phase
gates, or kill points.
Project Life Cycle
Factors that increase with project duration, then decrease shar
when project nears completion:
 Cost of project
 Staffing Levels
Start of project Project Duration End of project

Project Life Cycle
Factors increasing with project duration:
 Probability of successfully completing project

 Cost of changes
 Cost of Error Correction

Project Life Cycle
Factors decreasing with project duration:
 Uncertainty/Risks about the project
 Ability of stakeholders to influence final characteristics of
project’s product
 Ability of stakeholders to influence final cost of project’s product

Project Stakeholders
 Project stakeholders are individuals and organizations that are actively
involved in the project, or whose interests may be affected as a results
of project execution or completion.
 Key stakeholders in a project involves:
 Project Manager
 Customers/users
 Performing organizations
 Project Team members
 Sponsor
 PMO
 Other influencers
For a successful project you need to identify and manage these
stakeholders and their requirements.

Organization Types
Functional (Silo)
 Common form of organization
 Grouped by areas of functionality ( E.g.. Accounting , Financial etc.)
 Department head has the control over project.
 Project generally occur within a single department. If information or
project work is required from another department a request made from
one department head through the other.
 Completes projects work in addition to normal department work.
 Communication stays within the project.

Organization Types
Projectized ( No home)
 Entire company is organized by projects.
 Project manager has the control of the project.
 Team members only complete project work and when project is over ,
they don’t have a department to go back.
 When the project is over, they need to be assigned to another project or
get a job with different employer.
 Communication primarily occurs within the project.

Organization Types
Matrix ( Two bosses)
 This form is an attempt to maximize strengths of both functional and
projectized.
 Team members report to two bosses, the project manager & functional
manger.
 Team members do project work in addition to departmental work.
 Communication goes from team members to both bosses.
 In strong matrix power rest with project manager
 In weak matrix power rest with functional manager.
 In a balanced matrix power rest with both.

Organizational Influence on Projects
Functional Weak Balanced Strong Matrix Projectised

Matrix Matrix
PM Authority Little or None Limited Low to Moderate to High to almost

Moderate High total
Resource Little or None Limited Low to Moderate to High to almost
availability Moderate High total
Who control Functional Functiona Mixed Project Manager Project Manager

the Project Manager l Manager
Budget
Project Part-time Part-time Full-time Full-time Full-time
Manager’s role
Project Part-time Part-time Part-time Full-time Full-time

Management
administrative
staff

Home work
Elaborate the advantages and the disadvantages of the functional

projectized and matrix organizational structures.
(use online and printed resources)
Eg: functional organization
Advantages Disadvantages

Questions?

Question - 1
Understanding the culture, policies, and procedures of the
organization in which being performed is MOST challenging in:
A. Global organizations
B. Manufacturing organizations
C. Small organizations
D. Agile organizations

Question - 2
In a projectized organization, the project team:
A. Reports to many bosses

B. Has no loyalty to the project.
C. Reports to the functional manager.
D. Will not always have a "home"

Question - 3
A project manager is trying to complete a software

development project, but cannot get enough attention for
the project. Resources are focused on completing
process-related work, and the project manager has little
authority to assign resources. What form of organization
must the project manager be working in?
A. Functional
B. Matrix
C. Expediter
D. Coordinator

Question - 4
You head the engineering department in your company. Lately you
have observed that certain deliveries are missing the schedule. On
closer study you observe this to be occurring with a specific team
member. You decide to discuss it out with the team member. Initially
the team member is reluctant to discuss but finally opens up and
indicates that the cause of the delays is often different instructions
coming in from you as well as the project manager. She indicates that
at such times she is confused related to whose instructions to follow -
thereby causing delays - what kind of an Organizational structure is
this most likely to be ?
A. Functional
B. Projectize
C. Weak Matrix
D. Balanced Matrix
Question - 5
A project team member is talking to another team

member and complaining that many people are
asking him to do things. If he works in a
functional organization, who has the power to
give direction to the team member?
A. The project manager.

B. The functional manager.
C. The team.
D. The PMO.

Question - 6
Who has the MOST power in a projectized organization?
A. The project manager

B. The functional manager
C. The team
D. They all share power

Question - 7
All of the following are characteristics of a project EXCEPT:
A. It is temporary.
B. It has a definite beginning and end.
C. It has interrelated activates.
D. It repeats itself every month.

Question - 8
The concept of (the) _________ states that

changes related to one requirement—scope, time,
or cost—will at least influence one other element.
• Three-point estimation
• Triple constraint
• Three wise men
• Three needs theory

Question - 9
Which of the following BEST describes the major constraints on a

project?
A. Scope, number of resources, and cost.

B. Scope, cost, and time
C. Scope, time, cost, quality, risk, resources, and customer
satisfaction.
D. Time, cost, and number of changes.

Question - 10
Operational work is different from project work in that operational

work is:
A. Unique.
B. Temporary.
C. Ongoing and repetitive.
D. A part of every project activity.

Question - 11
What is a program?
A. An initiative set up by management

B. A means to gain benefits and control of related projects.
C. A group of unrelated projects managed in a coordinated way
D. A government regulation

Question - 12
Which of the following is NOT a characteristic of a project?

A. Temporary
B. unplanned
C. Specific result
D. Progressively elaborated

Question - 13
During project planning in a matrix organization, the project manager

determines that
additional human resources are needed. From whom would he
request these resources?
A) Project manager
B) Functional manager
C) Team
D) Project sponsor

Question - 14
Which of the following is a project?

1. Running a donut shop
2. Building another library in your area, which might take a long
time
3. Keeping a network up and running in a university department
4. Running a warehouse

Question - 15
Which of the following are the process groups?

1. Starting, planning, executing, monitoring and
controlling, and closing
2. Initiating, organizing and preparing, executing,
monitoring and controlling, and closing
3. Initiating, planning, implementing, monitoring and
4. Initiating, planning, executing, monitoring and

Thank you !
Chamath Gunasekara (PMP, MSc, BIT- UCSC)

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Program Structure

Chamath Gunasekara (PMP,MSc, BIT- UCSC)

• Grading scheme – 100% Assignments.

Chamath Gunasekara (PMP,MSc, BIT- UCSC)

• Recommended Reading/Learning Materials

Chamath Gunasekara (PMP,MSc, BIT- UCSC)

16. Revision questions.

Chamath Gunasekara (PMP,MSc, BIT- UCSC)

Authorized company : DirectFN

Chamath Gunasekara (PMP,MSc, BIT- UCSC)

Chamath Gunasekara (PMP,MSc, BIT- UCSC)

Definition : ‘A project is a temporary

 Duration of the project is finite.

Chamath Gunasekara (PMP,MSc, BIT- UCSC)

Projects are typically authorized as a result of one or more

Chamath Gunasekara (PMP,MSc, BIT- UCSC)

Chamath Gunasekara (PMP,MSc, BIT- UCSC)

Chamath Gunasekara (PMP,MSc, BIT- UCSC)

 A group of related projects.

Chamath Gunasekara (PMP,MSc, BIT- UCSC)

Project 1 Project N Other related work

Chamath Gunasekara (PMP,MSc, BIT- UCSC)

Vision - A vision statement is a statement of an

Chamath Gunasekara (PMP,MSc, BIT- UCSC)

 A portfolio includes a group of programs,

Chamath Gunasekara (PMP,MSc, BIT- UCSC)

Chamath Gunasekara (PMP,MSc, BIT- UCSC)

 The application of knowledge, skills, tools and

Chamath Gunasekara (PMP,MSc, BIT- UCSC, PSM)

Chamath Gunasekara (PMP,MSc, BIT- UCSC)

 Project officially approved

 Some high-level planning to do at this stage

 Verify as project manager if you can meet scope, time, cost

Chamath Gunasekara (PMP,MSc, BIT- UCSC)

Chamath Gunasekara (PMP,MSc, BIT- UCSC)

 Team complete the work according to the processes

Chamath Gunasekara (PMP,MSc, BIT- UCSC)

 The work is in progress now

Chamath Gunasekara (PMP,MSc, BIT- UCSC)

 The work is done.

Chamath Gunasekara (PMP,MSc, BIT- UCSC)

Chamath Gunasekara (PMP,MSc, BIT- UCSC)

Chamath Gunasekara (PMP,MSc, BIT- UCSC)

 Initiates the project, plans it, and implements it,

Chamath Gunasekara (PMP,MSc, BIT- UCSC)

Project management work generally involves:

Chamath Gunasekara (PMP,MSC, BIT- UCSA)

Chamath Gunasekara (PMP,MSc, BIT- UCSC)

Start of project Project Duration End of project

 Probability of successfully completing project

Start of project Project Duration End of project

Start of project Project Duration End of project

Chamath Gunasekara (PMP,MSc, BIT- UCSC)

Chamath Gunasekara (PMP,MSc, BIT- UCSC)

Chamath Gunasekara (PMP,MSc, BIT- UCSC)

Chamath Gunasekara (PMP,MSc, BIT- UCSC)

Functional Weak Balanced Strong Matrix Projectised

PM Authority Little or None Limited Low to Moderate to High to almost

Who control Functional Functiona Mixed Project Manager Project Manager

Project Part-time Part-time Part-time Full-time Full-time

Chamath Gunasekara (PMP,MSc, BIT- UCSC)

Elaborate the advantages and the disadvantages of the functional

Chamath Gunasekara (PMP,MSc, BIT- UCSC)

Chamath Gunasekara (PMP,MSc, BIT- UCSC)