Professional Documents
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Unit 1 - Introduction To Project Management
Unit 1 - Introduction To Project Management
1. It is a professional practice that has reached wide acceptance in many industries from
government to technology.
2. Objectives
To help development organizations understand the need to quickly adapt to
new challenges and invest their limited resources in the best way possible in
order to achieve recurring successes; for which they can use a proven, but
flexible, project management methodology.
To help development organizations understand that in order to implement
projects successfully, project management must become part of the
organizational culture; because, the effective utilization of the project
management methodology depends upon the integration of key knowledge
areas with project management processes.
To provide a common framework and terminology across Development
Organizations, especially Non Governmental Organizations (NGO’s); as it is
through a common methodology, and a common language, that project
managers in development organizations can increase their knowledge in the
subject and build their competencies.
3. Project management for
For Project Managers, who have been assigned with the responsibility to
manage a project, within a certain time, budget, and scope, and for whom the
guidance provided should be useful for building the range of skills appropriate
for effective project management.
For Development Organizations, to whom the arguments presented should
demonstrate the benefits of a structured methodology in the process of
selecting the right projects, in addition to helping them do the projects right.
For Project Staff, in charge of implementing the project’s plans, as they need
clear guidelines to help them do their job in the most efficient manner.
4. Topics to be discussed
The Project Management Cycle
The Project Management Processes
Scope Project Management
Budget Project Management
Schedule Project Management
Quality Project Management
Project Management Structures
Role, Responsibilities and Skills of the Project Manager
5. Defining a Project
Definitions describe the nature of a project and how it differs from other type of work;
the descriptions used to define a project include the following:
A project is a temporary process, which has a clearly defined start and end
time, a set of tasks, and a budget, that is developed toaccomplish a well-
defined goal or objective
A project is a temporary effort of sequential activities designed to accomplish
a unique purpose
A project is a group of inter-related activities, constrained by time, cost, and
scope, designed to deliver a unique purpose
A project is a temporary endeavour undertaken to create a unique product or
service. Temporary means that the project has an end date. Unique means that
the project's result is different from the results of other functions of the
organization
An undertaking that encompasses a set of tasks or activities having a definable
starting point and well defined objectives. Usually each task has a planned
completion data (due date) and assigned resources
A clear set of activities with related inputs and outputs aimed to achieve
objectives and goals linked to anticipated (desired) effects and impacts in a
target population (sometimes called ‘beneficiaries’)
6. Some specific attributes that define a project and separate it from most ordinary
work:
A project has a beginning and an end.
A project has limited resources
A project follows a planned, organized method to meet its objectives with
specific goals of quality and performance.
Every project is unique
A project has a manager responsible for its outcomes
A start and finish (although they may be difficult to define - the start may
have crystallised over a period of time and the end may be a slow phase out).
A life-cycle (a beginning and an end, with a number of distinct phases in
between).
A budget with an associated cash-flow.
Activities that are essentially unique and non-repetitive.
Use of resources, which may be from different departments and need co-
ordinating.
Definition of a Project
“A temporary effort made up of a related set of activities undertaken to
create a unique product or service within specified requirements”.
Definition of a Management
Definition of a Project Management
“Management is the achievement of (organizational) objectives through
people and other resources. Management is a process of setting and
achieving goals through the execution of the four basic functions of
management: planning, organizing, directing, and controlling, by utilizing
human, financial, and material resources”.
2. Budget or the costs approved for the project including all required expenses needed in
order to deliver the project. In development projects managers have to balance
between not running out of money and not under spending, because many projects
receive funds or grants that have contract clauses with a ‘use it or lose it’ approach to
project funds. Poorly executed budget plans can result in a last minute rush to spend
the allocated funds.
3. Schedule is defined as the time required to complete the project. The project schedule
is often the most frequent project oversight in developing projects. This is reflected in
missed deadlines, incomplete activities, and late donor reports. Proper control of the
schedule requires the careful identification of tasks to be performed, an accurate
estimation of their durations, the sequence in which they are going to be done, and
how people and resources are allocated.
4. Quality is the fourth constraint and it is defined as delivering the project outcomes
according to the stated or implied needs and expectations of the project beneficiaries
and donor agency, in order to meet stakeholder satisfaction. It also means complying
with quality standards that are either mandated by the donor, local government (such
as laws and regulations), or by professional standards (such as health).
1. Companies performing projects will generally subdivide their projects into several
phases or stages to provide better management control.
3. Along with the project life-cycle some of the other special project management
techniques that form part of the project management integrative process are:
• Resource smoothing
The various challenges development projects face are compounded by the following factors
Poor project planning caused by the rush to obtain grants and funding from donor
agencies that limit the time a deeper analysis of the project risks
Inadequate project management skills in project staff
No clear identification of who is responsible and accountable for the
project outcomes to the donors and to the beneficiaries.
Lack of stakeholder involvement, as key project stakeholders are
not systematically involved in the planning and monitoring of a project, this leads to a
lack of ownership when the project is implemented.
Unrealistic plans, projects are planned on a linear process, this reasoning leaves little
or no opportunities to modify plans and adjust as the project makes progress.
No measure to evaluate success, failure to properly define the criteria by which
beneficiaries will know if the project was a success.
Poor, inconsistent project management discipline.
There is no consistent use of a proven methodology to help monitor the project
implementation
Duplication of efforts. Projects within a development organization develop their own
approach to solve a problem, and each approach has its own management process.
Ultimately, these separated efforts result in duplication and in increased costs to the
organization.
7. Project Cost Management: includes the process required to ensure that the project is
completed within the approved budget. It consists of resource planning, cost
estimating, cost budgeting, cash-flow and cost control.
8. Project Quality Management: includes the process required to ensure that the project
will satisfy the needs for which it was undertaken. It consists of determining the
required condition, quality planning, quality assurance and quality control.
9. Project Human Resource Management: includes the process required to make the
most effective use of the people involved with the project. It consists of organisation
planning, staff acquisition and team development.
10. Project Communications Management: includes the process required to ensure proper
collection and dissemination of project information. It consists of communication
planning, information distribution, project meetings, progress reporting and
administrative closure.
11. Project Risk Management: includes
a. the process concerned with identifying, analysing, and responding to project
risk.
b. It consists of risk identification, risk quantification and impact, response
development and risk control.
12. Project Procurement Management: includes
a. The process required to acquire goods and services from outside the
performing project team or organisation.
b. It consists of procurement planning, solicitation planning, solicitation, source
selection, contract administration and contract closeout.
13. The body of knowledge can be subdivided into four core elements which determine
the deliverable objectives of the project:
• Scope
• Time
• Cost
• Quality
14. The other knowledge areas provide the means of achieving the deliverable objectives,
namely:
• Integration
• Human resources
• Communication
• Risk
• Procurement and contract
1. It is appropriate to conclude this chapter with a few words on the role of the project
manager.
2. Experience has shown that the selection of the project manager is a key appointment
which can influence the success or failure of the project.
3. As the single point of responsibility, it is the project manager who integrates and co-
ordinates all the contributions, and guides them to successfully complete the project.
4. The role of the project manager should be outlined in the project charter (see Scope
Management chapter) along with the purpose of the project. The following lists some
desirable project manager attributes:
5. Ability to select and develop an operational team from a standing start
6. Leadership and management ability
7. Ability to anticipate problems, solve problems and make decisions
8. Ability to integrate the project stakeholders
9. Operational flexibility
10. Ability to plan, expedite and get things done
11. Ability to negotiate and persuade
12. Understand the environment within which the project is being managed
13. Ability to review monitor and apply control
14. Ability to administer the contract, the scope of work and scope changes
15. Ability to manage within an environment of constant change.
16. Ability to keep the client happy.
TRADITIONAL MANAGEMENT SYSTEM
HISTORY
1. Project management has been practiced since early civilization.
2. Until 1900 civil engineering projects were generally managed by creative architects and
engineers themselves, among those for example Vitruvius (1st century BC), Christopher
Wren (1632–1723) , Thomas Telford (1757–1834) and Isambard Kingdom Brunel (1806–
1859).
3. It was in the 1950s that organizations started to systematically apply project management
tools and techniques to complex engineering projects.
4. Henry Gantt (1861-1919), the father of planning and control techniques.
5. Two forefathers of project management are Henry Gantt, called the father of planning and
control techniques, who is famous for his use of the Gantt chart as a project management
tool;
6. Henri Fayol for his creation of the 5 management functions which form the foundation of
the body of knowledge associated with project and program management.
7. His work is the forerunner to modern project management tools including work
breakdown structure (WBS) and resource allocation.
8. The "Critical Path Method" (CPM) was developed as a joint venture between DuPont
Corporation and Remington Rand Corporation for managing plant maintenance projects.
9. The "Program Evaluation and Review Technique" or PERT, was developed by Booz
Allen Hamilton as part of the United States Navy's (in conjunction with the Lockheed
Corporation) Polaris missile submarine program;
APPROACHES
e. Project completion.
4. Applying the first three of the five focusing steps of TOC, the system constraint for all
projects is identified as are the resources.
5. To exploit the constraint, tasks on the critical chain are given priority over all other
activities. Finally, projects are planned and managed to ensure that the resources are
ready when the critical chain tasks must start, subordinating all other resources to the
critical chain.
6. Regardless of project type, the project plan should undergo Resource Leveling, and
the longest sequence of resource-constrained tasks should be identified as the critical
chain.
8. However, it is often enough to identify (or simply select) a single "drum" resource—a
resource that acts as a constraint across projects—and stagger projects based on the
availability of that single resource.
1. In critical studies of project management it has been noted that several PERT based
models are not well suited for the multi-project company environment of today.
2. Most of them are aimed at very large-scale, one-time, non-routine projects, and
currently all kinds of management are expressed in terms of projects.
3. Using complex models for "projects" (or rather "tasks") spanning a few weeks has
been proven to cause unnecessary costs and low maneuverability in several cases.
4. Instead, project management experts try to identify different "lightweight" models,
such as Agile Project Management methods including Extreme Programming for
software development and Scrum techniques.
1. Event chain methodology is another method that complements critical path method
and critical chain project management methodologies.
2. Event chain methodology is an uncertainty modeling and schedule network analysis
technique that is focused on identifying and managing events and event chains that
affect project schedules.
3. Event chain methodology helps to mitigate the negative impact of psychological
heuristics and biases, as well as to allow for easy modeling of uncertainties in the
project schedules.
4. Event chain methodology is based on the following principles.
Probabilistic moment of risk: An activity (task) in most real life processes is not
a continuous uniform process. Tasks are affected by external events, which can
occur at some point in the middle of the task.
Event chains: Events can cause other events, which will create event chains.
These event chains can significantly affect the course of the project. Quantitative
analysis is used to determine a cumulative effect of these event chains on the
project schedule.
Critical events or event chains: The single events or the event chains that have
the most potential to affect the projects are the “critical events” or “critical chains
of events.” They can be determined by the analysis.
Project tracking with events: Even if a project is partially completed and data
about the project duration, cost, and events occurred is available, it is still possible
to refine information about future potential events and helps to forecast future
project performance.
Event chain visualization: Events and event chains can be visualized using event
chain diagrams on a Gantt chart.
PROCESSES
Initiation
Planning or development
Production or execution
Monitoring and controlling
Closing
INITIATING
1. The initiating processes determine the nature and scope of the project.
2. If this stage is not performed well, it is unlikely that the project will be successful in
meeting the business’ needs.
3. The key project controls needed here are an understanding of the business
environment and making sure that all necessary controls are incorporated into the
project.
4. Any deficiencies should be reported and a recommendation should be made to fix
them.
5. The initiating stage should include a plan that encompasses the following areas:
1. After the initiation stage, the project is planned to an appropriate level of detail.
2. The main purpose is to plan time, cost and resources adequately to estimate the work
needed and to effectively manage risk during project execution.
3. As with the Initiation process group, a failure to adequately plan greatly reduces the
project's chances of successfully accomplishing its goals.
4. Project planning generally consists of
EXECUTING
1. Executing consists of the processes used to complete the work defined in the project plan
to accomplish the project's requirements.
2. Execution process involves coordinating people and resources, as well as integrating and
performing the activities of the project in accordance with the project management plan.
3. The deliverables are produced as outputs from the processes performed as defined in the
project management plan and other frameworks that might be applicable to the type of
project at hand.
Monitoring the project variables (cost, effort, scope, etc.) against the project
management plan and the project performance baseline (where we should be);
Identify corrective actions to address issues and risks properly (How can we
get on track again);
Influencing the factors that could circumvent integrated change control so only
approved changes are implemented
4. In multi-phase projects, the monitoring and control process also provides feedback
between project phases, in order to implement corrective or preventive actions to
bring the project into compliance with the project management plan.
5. Project Maintenance is an ongoing process, and it includes:
6. In this stage, auditors should pay attention to how effectively and quickly user
problems are resolved.
7. Over the course of any construction project, the work scope may change.
8. Change is a normal and expected part of the construction process.
9. Changes can be the result of necessary design modifications, differing site conditions,
material availability, contractor-requested changes, value engineering and impacts
from third parties, to name a few.
10. Beyond executing the change in the field, the change normally needs to be
documented to show what was actually constructed.
11. This is referred to as Change Management. Hence, the owner usually requires a final
record to show all changes or, more specifically, any change that modifies the
tangible portions of the finished work.
12. The record is made on the contract documents – usually, but not necessarily limited
to, the design drawings.
13. The end product of this effort is what the industry terms as-built drawings, or more
simply, “as built.” The requirement for providing them is a norm in construction
contracts.
14. When changes are introduced to the project, the viability of the project has to be re-
assessed.
15. It is important not to lose sight of the initial goals and targets of the projects. When
the changes accumulate, the forecasted result may not justify the original proposed
investment in the project.
CLOSING
1. Closing includes the formal acceptance of the project and the ending thereof.
2. Administrative activities include the archiving of the files and documenting lessons
learned.
3. This phase consists of:
Project close: Finalize all activities across all of the process groups to formally close
the project or a project phase
Contract closure: Complete and settle each contract (including the resolution of any
open items) and close each contract applicable to the project or project phase
creation of infrastructure for the supply of the right information and its update
establishment of a way to communicate disparities of project parameters
development of project information technology based on an intranet or the
determination of a project key performance index system (KPI)
divergence analyses and generation of proposals for potential project
regulations
the establishment of methods to accomplish an appropriate the project
structure, project workflow organization, project control and governance
creation of transparency among the project parameters
investment analysis
cost-benefit analyses
value benefit Analysis
expert surveys
simulation calculations
risk profile analyses
surcharge calculations
milestone trend analysis
cost trend analysis
target/actual-comparison
5. Project control is that element of a project that keeps it on-track, on-time and within
budget.
6. Project control begins early in the project with planning and ends late in the project
with post-implementation review, having a thorough involvement of each step in the
process.
7. Each project should be assessed for the appropriate level of control needed: too much
control is too time consuming, too little control is very risky.
8. If project control is not implemented correctly, the cost to the business should be
clarified in terms of errors, fixes, and additional audit fees.
9. Control systems are needed for cost, risk, quality, communication, time, change,
procurement, and human resources.
10. In addition, auditors should consider how important the projects are to the financial
statements, how reliant the stakeholders are on controls, and how many controls exist.
11. Auditors should review the development process and procedures for how they are
implemented.
12. The process of development and the quality of the final product may also be assessed
if needed or requested.
13. A business may want the auditing firm to be involved throughout the process to catch
problems earlier on so that they can be fixed more easily.
14. An auditor can serve as a controls consultant as part of the development team or as an
independent auditor as part of an audit.
15. Businesses sometimes use formal systems development processes.
16. These help assure that systems are developed successfully.
17. A formal process is more effective in creating strong controls, and auditors should
review this process to confirm that it is well designed and is followed in practice.
18. A good formal systems development plan outlines:
GANTT’S APPROACH
3. Terminal elements and summary elements comprise the work breakdown structure of
the project.
4. Some Gantt charts also show the dependency (i.e., precedence network) relationships
between activities.
5. Gantt charts can be used to show current schedule status using percent-complete
shadings and a vertical "TODAY" line as shown here.
1. Gantt charts have become a common technique for representing the phases and
activities of a project work breakdown structure (WBS), so they can be understood by
a wide audience all over the world.
2. A common error made by those who equate Gantt chart design with project design is
that they attempt to define the project work breakdown structure at the same time that
they define schedule activities.
3. Although a Gantt chart is useful and valuable for small projects that fit on a single
sheet or screen, they can become quite unwieldy for projects with more than about 30
activities.
4. Larger Gantt charts may not be suitable for most computer displays.
5. A related criticism is that Gantt charts communicate relatively little information per
unit area of display.
6. That is, projects are often considerably more complex than can be communicated
effectively with a Gantt chart.
7. Gantt charts only represent part of the triple constraints (cost, time and scope) of
projects, because they focus primarily on schedule management.
8. Moreover, Gantt charts do not represent the size of a project or the relative size of
work elements, therefore the magnitude of a behind-schedule condition is easily
miscommunicated.
9. If two projects are the same number of days behind schedule, the larger project has a
larger impact on resource utilization, yet the Gantt does not represent this difference.
10. Because the horizontal bars of a Gantt chart have a fixed height, they can
misrepresent the time-phased workload (resource requirements) of a project, which
may cause confusion especially in large projects. In the example shown in this article,
Activities E and G appear to be the same size, but in reality they may be orders of
different magnitude.
11. A related criticism is that all activities of a Gantt chart show planned workload as
constant.
12. In practice, many activities (especially summary elements) have front-loaded or back-
loaded work plans, so a Gantt chart with percent-complete shading may actually
miscommunication the true schedule performance status.
LOAD CHART
PROGRESS CHART
1. User Assignment: Several users can be assigned to a project, with specific access rights
in each project.
2. Task Groups and Types: A project can be divided in phases or modules, for easier
management. Task groups or types are useful to categorize tasks, in accordance with your
needs.
3. Task Statuses: Tasks within a project are likely to go through many statuses, from the
beginning until completion. Task statuses can be created in accordance with your needs,
using "Waiting", "In Progress" and "Completed" types.
4. Task Priorities: The level of urgency of each task might influence the project's
completion. Task priorities are useful to identify which tasks should be prioritized. A task
priority can be "Low", "Normal", "Urgent", etc.
5. Project Costs: A financial budget as well as the number of hours required can be defined
for each project.
6. Marked Projects: Marking a project lets you identify projects that require more attention
than others (e.g. urgent, critical or overdue projects).
BAR CHART
1. A bar chart is a graphical tool that can be used to present data in a way that is easy to
read, easy to understand, and provides the ability for easy comparison of all provided
data.
2. It can be used to provide the project team and all of those looking for project related
information data from the individual schedule activities and work breakdown
structure components.
3. In a typical bar chart (also referred to as a bar graph or a Gantt chart, named after H.L.
4. Gantt who published one of the first recorded bar charts in 1931), the left side of the
chart displays the work breakdown structure components or the individual schedule
activities, the dates in question are placed along the top of the chart, and the activity
durations are represented by date-placed horizontal bars.
5. These bars can be color coded if necessary, or they can be filled in with patterns to
allow for more cost-effective printing in grayscale.