What Is a Project?

 A project is “a temporary endeavor /effort undertaken to create a unique product, service, or

result.”

 Temporary- has a defined beginning and end

 Unique- this product or service is different in some distinguishing way from all
similar products or services.

 Project Attributes

A project:

 Has an established objective.

 Has a defined life span with a beginning and an end.

 Requires across-the-organizational participation.

 Involves doing something never been done before.

 Has specific time, cost, and performance requirements.

 Is developed using progressive elaboration/steps.

 Requires resources, often from various areas.

 Should have a primary customer or sponsor.

 The project sponsor usually provides the direction and funding for the project.

 Involves uncertainty.

Project Management

 Project management is “the application of knowledge, skills, tools and techniques to project
activities to meet project requirements.”

 Project management is the discipline of organizing and managing resources (e.g. people) in
such a way that the project is completed within defined scope, quality, time and cost
constraints.
Project Manager

 Project Managers A project manager is the person responsible for leading a project from its
inception to execution. This includes planning, execution and managing the people, resources
and scope of the project. He works with project sponsors, project teams, and other people
involved in projects to meet project goals. The project manager also works closely and in
collaboration with other roles, such as a business analyst, quality assurance manager, and
subject matter experts.

The Triple Constraint

 Time goals: How long should it take to complete?

 Cost goals: What should it cost?

 Scope goals: What work will be done?

Project Management Office(PMO):

 A Project Management Office (PMO) is a group or department within a business, agency

or enterprise that defines and maintains standards for project management within the
organization.

 The Project Management Institute (PMI) Program Management Office Community of Practice
(CoP), describes “the PMO as a strategic driver for organizational excellence, which seeks to
enhance the practices of execution management, organizational governance, and strategic
change leadership.”

Major Role of PMO

 Supportive. Supportive PMOs provide a consultative role to projects by supplying templates,

best practices, training, access to information and lessons learned from other projects. This
type of PMO serves as a project repository. The degree of control provided by the PMO is low.

 Controlling. Controlling PMOs provide support and require compliance through various
means. Compliance may involve adopting project management frameworks or methodologies,
using specific templates, forms and tools, or conformance to governance. The degree of
control provided by the PMO is moderate.

 Directive. Directive PMOs take control of the projects by directly managing the projects. The
degree of control provided by the PMO is high.

Primary Function of PMO

 Managing shared resources across all projects administered by the PMO;

 Identifying and developing project management methodology, best practices, and standards;
 Coaching, mentoring, training, and oversight;
  Monitoring compliance with project management standards, policies, procedures, and
templates by means of project audits;
 Developing and managing project policies, procedures, templates, and other shared
documentation (organizational process assets); and
 Coordinating communication across projects.
Feasibility Study of a Project
 As the name implies, a feasibility study is used to determine the viability of an idea. The
objective of such a study is to ensure a project is Technically , Economically and legally (TEL)
feasible & justifiable It tells us whether a project is worth the investment. Feasibility studies are
useful to businesses in many ways.

Project Management Process Groups OR Project Life Cycle

1. Initiation

Hire the Project team and setup PM office. The initiating stage should include a plan that
encompasses the following areas:
• analyzing the business needs/requirements in measurable goals
• reviewing of the current operations.
• Financial analysis of the costs and benefits including a budget(ROI)
• Stakeholders analysis, including users, and support personnel for the project
• The Project Charter describes the Project Vision, Objectives, Scope, Deliverables,
Stakeholders, Roles, Responsibilities and Implementation Plans. Creating a detailed Project
Charter is a critical part of any project.
• Project Charter is a document that formally authorizes the project and allows the project
manager to spend money in order to achieve project goals.

2. Planning or design

The main purpose is to plan time, cost and resources adequately to estimate the work needed
and to effectively manage risk during project execution. Project Planning generally consists of :
• determining how to plan (e.g. by level of detail );
• developing the scope statement;
• selecting the planning team;
• identifying deliverables and creating the work breakdown structure;
• identifying the activities needed to complete those deliverables and networking the activities
in their logical sequence;
• estimating the resource requirements for the activities;
• estimating time and cost for activities;
• developing the schedule;
• developing the budget;
• risk planning;
• gaining formal approval to begin work.
3. Production or execution

The execution/implementation phase ensures that the project management plan's deliverables
are executed accordingly. This phase involves proper allocation, co-ordination and management
of human resources and any other resources such as material and budgets. The output of this
phase is the project deliverables.

4. Monitoring and controlling

Monitoring and controlling includes:

• Measuring the ongoing project activities ('where we are');
• Monitoring the project variables (cost, effort, scope, etc.) against the project management plan
(approved document used to guide both project execution and project control) and the project
performance baseline(A baseline is used to perform analysis to find current performance
against to the expected level for a specific activity in established time-phase) (where we should
be);
• Identify corrective actions to address issues and risks properly (How can we get on track again);

5. Closing

Closing includes the formal acceptance of the project and the ending thereof. Administrative
activities include the archiving of the files and documenting lessons learned.
Contract closure: Project close: Post Implementation Review

Stakeholders

 According to the project management institute (PMI), the term stakeholder refers to, ‘an
individual, group, or organization, who may affect, be affected by, or perceive itself to be
affected by a decision, activity, or outcome of a project.
 Stakeholders are the people involved in or affected by project activities.
 Stakeholders include:
 Project sponsor
 Project manager
 Project team
 Support staff
 Customers
 Users
 Suppliers
 Opponents to the project
 Stakeholders & Governance
Governance refers to the set of policies, regulations, functions, processes, procedures and
responsibilities that define establishment, management and control of projects, programs and
portfolios. Project governance is the management framework within which project decisions
are made.
1. The board: organization's strategy and portfolio direction

:
2. The project manager clarifies decision making framework, clarifies business priorities and
strategy, communicates business issues, provides resources,

3. Project stakeholders: engages stakeholders, governs stakeholder communications, directs

client relationship, directs governance of users, directs governance of suppliers and arbitrate
between stakeholders.

Pillars of Project Governance

 Structure: Project Board or Project Steering Committee

 People:

 Information:

Projects Vs Operations

 Projects require project management, while operations require business process management
or operations management. Projects and Operations will interact with each other at key
points in a product’s life cycle.

 Operations are ongoing, but projects are temporary.

 Both projects and operations are carried out by people, both require planning, both require
management, and both are constrained by a fixed amount of budget, resources, and
timelines.

 Projects have a fixed budget; on the other hand Operations have to earn profit in order to run
the business.

 Projects are executed to start a new business objective and terminated when it is achieved,
while Operational work does not produce anything new and it is ongoing.

 Projects create a unique product, service, or result; Operations produce the same product, aim
to earn profit, and keep the system running.
Project Team

 Project management staff

 Project staff
 Supporting experts
 User or Customer Representatives
 Sellers
 Business partner members
 Business partners

Organizational Structure:

Functional Project Organization

Project Centric Project Organization.

Balanced Matrix Project Organization: Strong Matrix Project Organization, Weak Matrix
Project Organization

Project Integration Management:

 A project charter is a document that formally recognizes the existence of a project and provides
direction on the project’s objectives and management.
Project Charters Contents:
 The project’s title and date of authorization
 The project manager’s name and contact information
 A summary schedule, including the planned start and finish dates
 A summary of the project’s budget or reference to budgetary documents
 A brief description of the project objectives, including the business need or other justification
for authorizing the project
 A roles and responsibilities matrix
 A sign-off section for signatures of key project stakeholders
 A comments section in which stakeholders can provide important comments related to the
project
Project Charter Primary Components:
1. Project Overview Section: scope, background, purpose, stakeholder, background,
Identification
2. Project Approach Section: Deliverables, roles, resources, process cyle, life cycle of
project,schedule and control plan
 3. Project Approval Section: Project charter, name and stakeholder signature that they are
satisfied.

10 project management knowledge areas

1. Project Integration Management

2. Project Scope Management

3. Project Schedule Management

4. Project Cost Management

5. Project Quality Management

6. Project Resource Management

7. Project Communications Management

8. Project Risk Management

9. Project Procurement Management

10. Project Stakeholder Management

Project Integration Management?

 Project integration management involves coordinating all the other project management
knowledge areas throughout a project’s life cycle.
1. Develop the project charter
2. Develop the project management plan: charter, objective, budget, management plan,
control plan, risk assesment, schedule
3. Direct and manage project execution
4. Manage Project Knowledge
5. Monitor and control the project work: Change management
 6. Perform integrated change control:
7. Close the project

Process Mapping
 Process mapping is a step in workflow management that seeks to create transparent
processes that can be easily assessed and adjusted to increase efficiency.
Project Scope Management:
 Project scope is the part of project planning that involves determining and documenting a list
of specific project goals, deliverables, tasks and deadlines.
 Project scope statements should include
 A description of the project
 Overall objectives and justification
 Detailed description of all project deliverables
 The characteristics and requirements of products and services
 Requirement, major deliverable, criteria for deliverables, known constraint, assumptions.
 Project scope management includes the processes involved in defining and controlling what is
or is not included in a project.

1. Plan Scope Management: Deciding how the scope will be defined, verified, and controlled.
Plan scope is designed to help you plan, work on, and deliver client projects
2.Collect Requirements: Collect Requirement is the process determines, documents and
manages stakeholder needs and requirements in order to meet the project objectives.
3. Scope definition: Reviewing the project charter and preliminary scope statement and
adding more information as requirements are developed and change requests are approved.
4. Creating the WBS: Subdividing the major project deliverables into smaller, more
manageable components.
5. Scope verification: Formalizing acceptance of the project scope. This is done using
reviews or audits and user trials. WBS, Project plan and scope plan matches
6. Scope control: Controlling changes to project scope.

 A WBS is a deliverable-oriented grouping of the work involved in a project that defines the
total scope of the project.
 Project Schedule management is the act or process of planning and exercising conscious
control over the amount of Schedule spent on specific activities, especially to increase
effectiveness, efficiency

 Time management is the art of allocating time to various tasks according to their priorities. It
also includes managing ones own personal time so that important tasks are not missed
out. Project scheduling means determining a timeline for initiating and ending a project and all
of its sub tasks.

Project Schedule Management Processes:

1. Plan Schedule Management: process of establishing the policies, procedures, and

documentation for planning, developing, managing, executing, and controlling the
project schedule.

2.Activity definition: Identifying the specific activities that the project team members and
stakeholders must perform to produce the project deliverables.

3.Activity sequencing: Identifying and documenting the relationships between project

activities.

4.Activity resource estimating: Estimating how many resources a project team should use to
perform project activities.

5.Activity duration estimating: Estimating the number of work periods that are needed to
complete individual activities.

6.Schedule development: Analyzing activity sequences, activity resource estimates, and

activity duration estimates to create the project schedule.

7.Schedule control: Controlling and managing changes to the project schedule.

 CPM is a network diagramming technique used to predict total project duration.

 The critical path is the longest path through the network diagram and has the least amount of
slack or float.

 Slack or float is the amount of Schedule an activity can be delayed without delaying a
succeeding activity or the project finish date.
 Predecessor: A task whose finish date determines the start date of its successor task.

 Successor: A task whose start date is driven by its predecessor task's finish date.

 Lead and lag are both used in the development of the project Schedule.

 Early Start – The earliest Schedule that an activity can start according to the logical constraints.
Duration – The estimated Schedule to undertake the activity.

 Early Finish – The earliest Schedule that an activity can finish according to logical constraints.
Late Start – The latest Schedule that an activity can start according to logical constraints and
without affecting the overall project duration.

 Float – The Schedule by which an activity may be delayed without affecting the overall project
duration.
Late Finish – The latest Schedule that an activity can finish according to logical constraints and
without affecting the overall project duration.
 Using the Critical Path to Shorten a Project Schedule:

 Three main techniques for shortening schedules:

 Shortening the duration of critical activities or tasks by adding more resources or

changing their scope.

 Crashing activities by obtaining the greatest amount of schedule compression for the
least incremental cost.

 Fast tracking activities by doing them in parallel or overlapping them.

 Tools and techniques for schedule control include:

 Progress reports.
 A schedule change control system.
 Project management software, including schedule comparison charts, such as the
tracking Gantt chart.
 Variance analysis, such as analyzing float or slack.
 Performance management, such as earned value .
  Cost is a resource sacrificed or foregone to achieve a specific objective, or something given up in
exchange. Costs are usually measured in monetary units, such as rupees.
 Project Cost Management (PCM) is a method that uses technology to measure cost and
productivity through the full life cycle of enterprise level projects. Beginning with estimating, a
vital tool in PCM, actual historical data is used to accurately plan all aspects of the project. PCM
includes the processes involved in planning, estimating, budgeting, and controlling costs so that
project can be completed within the approved budget”.

Project Cost Management Processes

1. Cost estimating: Developing an approximation or estimate of the costs of the resources

needed to complete a project.

2. Determine budget: Allocating the overall cost estimate to individual work items to establish a
baseline for measuring performance. (including TCS)

3. Cost control: Controlling changes to the project budget.

A cost management plan is a document that describes how the organization will manage cost
variances on the project.

The Cost Management Plan has the following purposes:

• To present the costs and effort estimates of the project;

• To identify factors that will tend to increase the costs or effort; and

• To describe procedures that will be used to deal with increases to the cost and effort.

 Earned Value Management (EVM) helps project managers to measure project performance. It
is a systematic project management process used to find variances in projects based on the
comparison of worked performed and work planned. EVM is used on the cost and schedule
control and can be very useful in project forecasting.
 The planned value (PV), formerly called the budgeted cost of work scheduled (BCWS), also
called the budget, is that portion of the approved total cost estimate planned to be spent on
an activity during a given period.

 Actual cost (AC), formerly called actual cost of work performed (ACWP), is the total of direct
and indirect costs incurred in accomplishing work on an activity during a given period.

 The earned value (EV), formerly called the budgeted cost of work performed (BCWP), is an
estimate of the value of the physical work actually completed. Earned Value shows how much
of the budget and time should have been spent, with regard to the amount of work done so
far.

 Project Budget, Schedule, Tasks

 Rs.40,000 (Budget)

 4 months (Schedule)

 20 Tasks (evenly divided over 4 months)

 Rs.2,000 per task

 5 tasks per month

 Therefore , you plan to pay Rs.10,000/month. This is called the Earned Value or
budgeted cost of work scheduled (BCWS).