Introduction To Project Management

PMGT- 401:
Project Management
Fundamentals
01
Introduction to Project Management
01 Introduction to Project Management:
Learning Objectives
By the end of this module, you will be able to:
Understand the key terms and the basic structure of
project management. The tropics that will be covered
are:
Definition of a project and its attributes/characteristics and key
constraints within which a project must be managed
How a project is “born” and main ingredients for project success
Discuss the relationship between project, program, and portfolio
management and the contributions they each make to
enterprise success
Understand the role of the project manager, what skills they
need, and what the career field is like.
Describe the project management profession, the role of
professional organizations like the Project Management
Institute, the importance of certification and ethics
PMGT- 401: Project Management Fundamentals © 2009 Bob Xourafas, P.Eng, PMP, Proprietary
01 Introduction to Project Management Page 2
Reading Material
Text Book:
 Chapter 1: Introduction to Project Management
References:
 PMBOK:
– Section 1.2 What is a Project
– Section 1.5 Related Endeavors
What does this Symbol Mean?
This slide is
important.
The contents of
this slide will be
parts of
tests/exams
Project Management Statistics
Many organizations today have a new or renewed interest in project
management
The U.S. spends $2.3 trillion on projects every year, or one-quarter of
its gross domestic product, and the world as a whole spends nearly
$10 trillion of its $40.7 gross product on projects of all kinds
More than sixteen million people regard project management as their
profession. In 2005, the total compensation for the average senior
project manager was $99,183 per year in the United States, $94,646 in
Australia, and $106,374 in the United Kingdom
Worldwide IT spending totaled more than $1.8 trillion in 2005, a 6
percent increase from 2004, and spending is projected to grow 8
percent in 2006 and 4 percent in 2007
Famous business authors and consultants are stressing the
importance of project management. As Tom Peters writes in his book,
Reinventing Work: the Project 50, “To win today you must master the
art of the project!”
Benefits of Project Management
• The ultimate benefit of implementing project management

techniques is having a satisfied customer.
• Completing the full project scope in a quality manner, on
time, and within budget provides a great feeling of
satisfaction.
• It could lead to additional business.
• Successful projects can expand your career opportunities.
• You feel the satisfaction of being on a winning team.
• Through the project you expand your knowledge, enhance
your skills, and prepare for more complicated projects.
• When projects are successful, everybody wins!
The Project Management Profession
• The profession of project management is growing at a

very rapid pace
• It is helpful to understand the history of the field, the role
of professional societies like the Project Management
Institute, and the growth in project management software
PMI-Project Management Institute
PMI is an international organization focusing on the needs of
project management professionals worldwide. Its membership
consists of more than 200,000 professionals, representing 125
countries. PMI professionals come from virtually every major
industry.
http://www.pmi.org
PMI is the world’s leading publisher of project management books,
training tools, and learning products. Over 1,000 titles are currently
available from our online bookstore. PMI also publishes three
periodicals for the benefit of our members
PM Network® – a monthly professional magazine

Project Management Journal® – a quarterly professional journal.
PMI Today® – the monthly newsletter of PMI
Project Management Knowledge
Continues to Grow and Mature
• There are specific interest groups in many areas like
engineering, financial services, health care, IT, etc.
• Project management research and certification
programs continue to grow
• PMI hosted their first research conference in June
2000 in Paris, France, and the second one in Seattle
in July 2002
• The PMBOK® Guide is an ANSI standard
• PMI’s certification department earned ISO 9000
certification
• Hundreds of new books, articles, and presentations
related to project management have been written in
recent years
Project Management
Certification
PMI provides certification as a Project Management
Professional (PMP)
A PMP has documented sufficient project experience,
agreed to follow a code of ethics, and has passed the
PMP exam
The number of people earning PMP certification is
increasing quickly
PMI and other organizations are offering new certification
programs (see Appendix B of the text)
The PMI boasts a worldwide membership of more than
220,000, with members from 150 different countries.
Growth in PMP Certification,
1993-2006
Why Become PMP Certified?
Local PMI chapters meet regularly and allow project
managers to exchange information and learn about new
tools and techniques of project management or new ways
to use established techniques. I encourage you to join a
local chapter and get to know other professionals in your
field.
The following benefits are associated with becoming PMP
certified:
It demonstrates proof of professional achievement.
It increases your marketability.
It provides greater opportunity for advancement in your field.
It raises customer confidence in you and in your company’s
services.
Ethics in Project Management
Ethics, loosely defined, is a set of principles that guide

our decision making based on personal values of what is
“right” and “wrong”
Project managers often face ethical dilemmas
In order to earn PMP certification, applicants must agree
to PMI’s Code of Ethics and Professional Conduct
Several questions on the PMP exam are related to
professional responsibility, including ethics
PMBOK- Project Management
Body of Knowledge
What is PMBOK?
In short, PMBOK is guide that consists of a set of tools
recognized by the American National Standards Institute
(ANSI) to manage projects. PMBOK provides basic
references, terms, skills and techniques for project
management
What is PMBOK’s purpose?

The primary purpose of the Project Management Body of
Knowledge (PMBOK) material is to identify practices in
project management that are generally recognized as
good practices.
Can you name a few projects?-
Class Discussion
• Planning a wedding
• Designing and implementing a computer system
• Hosting a holiday party
• Designing and producing a brochure
• Executing an environmental clean-up of a
contaminated site
• Holding a high school reunion
• Performing a series of surgeries on an accident
victim
What are some of the project attributes?
What is a Project?
Class Discussion
What is a “project”?
identify projects you have been involved
what were the objective, the constraints, the schedule, the
resources were used?
can you identify any project managers in the real world?
discuss something you did during the past summer or winter
break, such as take a vacation, etc.
how those activities relate to project management.
What is a project?
A project is a temporary endeavor undertaken to

create unique product or service
• Attributes of projects:
• Temporary: Projects have a definite beginning and end, not
an on-going effort. Projects end when the project objectives
have been attained or when it becomes clear that the project
objectives will not or cannot be met, or the need for the project
no longer exists and the project is terminated.
• Unique: Projects involve doing something that has not been
done before and which is, therefore, unique. i.e., they are
different in some distinguishing way from all other projects.
Because they are temporary and unique, their characteristics
are progressively elaborated.
• Progressively Elaborated: Progressively means “proceeding
in steps; continuing steadily by increments”. Elaborated means
“worked out with care and detail; developed thoroughly”.
Other Project Characteristics
Well Define Objectives (expected result or product).
The objective of a project is usually defined in terms of scope, schedule,
and cost.
It is also expected that the scope will be accomplished in a quality
manner and to the customer’s satisfaction.
Series of interdependent tasks
A project is carried out through a series of interdependent tasks in a
certain sequence (logic) in order to achieve the project objective.
Requires resources, often from various areas.
Resources to carry out the tasks can be internal or external to an
organization and they can be provided from organizations the project
manager has very little influence/control.
Has customers/sponsors/stakeholders
Persons whose interests may be positively or negatively impacted by
the project
Involves uncertainty
Because each project is unique, it is sometimes difficult to define clearly
the project objectives, estimate, time, quality, etc.
Other Project Characteristics
• Projects are multidisciplinary

• They require input from people with different kinds of knowledge
and expertise.
• Projects are complex
• They are composed of many interconnected elements and
require inputs from groups outside the project.
• Projects are characterized by conflict
• Scope, schedule and estimate are conflicting with each other.
• The needs of various stakeholders conflict with each other.
• Some of the most intense and intractable conflicts are those
between members of the project team.
• Projects do not exist in isolation.
• They are often parts of other entities or programs.
The Triple Constraint of Project
Management
Scope The successful accomplishment of the
project objective is usually constrained
by three factors: scope, cost, and
schedule. A fourth factor is the customer
satisfaction
Scope is all the work that must be done
Customer to satisfy the customer that the
deliverables (the tangible product or
Satisfaction items to be provided) meet the
requirements or acceptance criteria
agreed upon at the onset of the project.
Cost Schedule
• Schedule specifies when each activity should start and finish. The
project objective usually states the time by which the project scope
must be completed in terms of a specific date agreed upon by the
customer and the project.
• Customer satisfaction is based on a set of criteria agreed upon with the
customer. To help the achievement of this objective, it is important to
develop the criteria before the start of the project execution, usually at
the planning stage of the project lifecycle.
Customer Satisfaction
• Today, customers expect projects not only will be

delivered:
• On time, on budget, on schedule and with the agreed quality
• BUT ALSO THEY EXPECT:
• The projects will be managed with sound project management
practices
• Projects will be delivered with minimum disruption to their
business.
• Projects will add value to their business by bringing innovative
ideas and solutions
Customer Satisfaction Criteria-
Example
Satisfaction Criteria Weight Score1
(1–5) (1–5)
1. How well do we demonstrate expertise and bring innovative ideas to your organization? This includes how well do we understand
your industry and provide you with industry expertise.
2. How well our technical knowledge meet your expectations?
3. How well did the quality of deliverables meet your expectations?
4. How well does the project meet your expectations regarding dates accepted and agreed to by both parties regarding key events and
deliverables?
5. How do you rate project’s performance on staying within the budget, as well as getting your agreement on revisions to the budget?
6. How do you rate the project’s ability to listen and communicate effectively?
7. How do you rate our responsiveness? Are request acknowledged, understood and acted upon appropriately?
8. How well does the project anticipate your needs and provide value-added suggestions?
9. How effectively does project explain their work and transfer knowledge to your staff?
10. How well does the project staff meet your standards of reliability, integrity, and appearance? Do they show a sincere interest in your
company while keeping your needs and objectives in mind at all times?
11. How do you rate the project’s ability to work effectively with your staff while demonstrating an understanding of your culture?
12. How well did the project execute their assignments with an appropriate level of managerial attention from you?
13. Does the project deliver effective and efficient results?
14. How well do the project deliverables comply with your predefined technical standards?
15. For IT projects, how closely did the count approved functionality meet the released functionality?
1
1 = very dissatisfied, 2 = dissatisfied, 3 = satisfied, 4 = very satisfied, 5 = WOW
Unforeseen Circumstances-
Class Discussion
• Once a project is started, unforeseen circumstances may impact the
project in various ways such as scope, cost, or schedule.
• Can you name a few unforeseen events? What should the manager
do in such cases?
• Prevent, anticipate, and/or overcome such circumstances in order to
complete the project scope on schedule, on budget, and to the
customer’s satisfaction.
• Good planning and communication are essential to prevent problems
from occurring and to minimize their impact.
• Ultimately, the responsibility of the project manager is to make sure
the customer is satisfied. This goes beyond just completing the project
scope within budget and on schedule. It requires ongoing
communication with the customer.
Before taking any action:
Analyze and understand the unforeseen event and determine its
impact on the project.
Use the agreed change control process to obtain approval prior to
implementing any changes.
How Projects are “Born”
• Projects are “born” when a need is identified by the

customer
• Sources of projects can be:

• Market Demand
• Business need
• Customer request
• Technological advance
• Legal requirement
• Social need
Ways the Work of Project
Management is Organized
• An organization typically exists to meet the present and future needs
of its customers.
• Organizations develop strategic plans and business directions/goals in
order to meet the future needs of their customers as well as stay
competitive in the market place.
• Every project undertaken by the organization should add value to the
organizations’ strategic plan/direction otherwise the organization’s
resources are poorly used and the project should be terminated.
• The process linking the various projects directly to the goals and
strategy of the organization is called Project Portfolio Management
Process (PPMP).
• Through the PPMP many project portfolios can exist within an
organization each linked to the strategic plan.
• Several projects within a specific portfolio can be grouped together to
form a program.
• There is often a hierarchy of strategic plan, program, project, and
subproject, in which a program consisting of several associated
projects will contribute to the achievement of a strategic plan.
Traditional Strategic Planning
Model
External Analysis Internal Analysis
Gathering
of Environmental Gathering Organizational
Information Opportunities of Strengths &
And Threats Information Weaknesses
Firm’s Evaluation Managerial

Social of Values of
Responsibility Information Management
Strategy
Evaluation
Strategy
Selection
Strategy
Implementation
Project Portfolio Management
Process (PPMP)
Identification of
Projects
Identify needs
& Sources of
Ideas
Preliminary Preliminary
Evaluation Evaluation
Feasibility Study PPMP Feasibility Study
Cost/Benefit Cost/Benefit
Analysis Analysis
Strategic
Selection of
Projects
Startegic Fit &
Prioritazation
Program Structure
The hierarchy structure consists of Strategic
Plan, Portfolio, Program, Project and Project
Subproject R
Several projects within a specific portfolio can Program

be grouped together to form a program Project B
Project
A program is a group of projects managed in a A
coordinated way, to obtain benefits not M E
available from managing them individually
Operations
Note: Many programs consist of projects as
well as of ongoing operations.
• Operations are ongoing and repetitive. They involve work that is continuous
without an ending date, and often repeat the same processes and produce the
same results. The purpose of operations is to keep the organization
functioning, while the purpose of a project is to meet its goals and to conclude.
Ongoing operations must not be included as part of the project.
Ongoing operations MUST NOT be included as part of the project.
Project vs. Program Managers
Project managers work with project sponsors, a project

team, and other people involved in a project to meet
project goals
Program managers oversee programs and often act as
bosses for project managers
Program Example
Building a new shopping mall
Many projects exist underneath this program, such as excavation,
construction, interior design, store placement, marketing, facilities
management, and so on.
Each of the projects has its own project manager, who reports to a
project manager with responsibility over several of the areas, who
in turn reports to the head project manager over the entire
program.
All the projects are related and are managed together so that
collective benefits are realized and controls are implemented and
managed in a coordinated fashion.
Sometimes programs involve aspects of ongoing operations as
well. After the shopping mall in our example is built, the
management of the facility becomes the ongoing operations part
of this program.
The management of this collection of projects is called program
management. Program management involves centrally managing
and coordinating groups of related projects to meet the objectives
of the program.
• As part of project portfolio management, organizations group and

manage projects and programs as a portfolio of investments that
contribute to the entire enterprise’s success
• Portfolio management encompasses managing the collections of
programs and projects in the portfolio.
• Portfolio managers help their organizations make wise investment
decisions by helping to select and analyze projects from a strategic
perspective
• This includes weighing the value of each project, or potential project,
against the portfolio’s strategic objectives. It also concerns monitoring
active projects for adherence to objectives, balancing the portfolio among
the other investments of the organization, and assuring the efficient use of
resources.
• Portfolio management is generally performed by a senior manager in
the organization.
Project Management vs.
Portfolio Example
• Let’s say our company is in the construction business.

Our organization has several business units:
• retail, single-family residential, and multifamily residential.
• All projects and programs associated with the retail
business unit belong to the retail portfolio.
• The program with the building of the new mall (see program
example) is one of the programs that belongs to the retail portfolio.
• Other programs and projects could be within this portfolio as well.
For example, implementing a waste management system for the
retail facilities.
• The objective of any program or project in the retail
portfolio is to meet the strategic objectives of the portfolio,
which in turn should meet the objectives of the
department and ultimately the corporation.
Figure 1-4:
Sample Project Portfolio Approach
What is Project Management?
Project management brings together a set of tools and

techniques -performed by people- to describe, organize,
and monitor the work of project activities to meet project
requirements
Project managers are the people responsible for
managing the project processes and applying the tools
and techniques used to carry out the project activities. All
projects are composed of processes, even if they employ
a haphazard approach.
It is the responsibility of the project manager to ensure that project
management techniques are applied and followed.
Project managers strive to meet the triple constraint by
balancing project scope, time, and cost goals
Project Management Framework
Project Stakeholders
Stakeholders are the people involved in or affected by
project activities
Stakeholders include:
The project sponsor
The project manager
The project team
Support staff
Customers
Users
Suppliers
Opponents to the project
Nine Project Management Knowledge
Areas
• Knowledge areas describe the key competencies that

project managers must develop
• Four core knowledge areas lead to specific project objectives
(scope, time, cost, and quality)
• Four facilitating knowledge areas are the means through which the
project objectives are achieved (human resources,
communication, risk, and procurement management
• One knowledge area (project integration management) affects and
is affected by all of the other knowledge areas
• All knowledge areas are important!
Best Practices
• A best practice is “an optimal way recognized by industry

to achieve a stated goal or objective”-PMI
• Robert Butrick suggests that organizations need to follow
basic principles of project management, including these
two mentioned earlier in this chapter
• Make sure your projects are driven by your strategy; be able to
demonstrate how each project you undertake fits your business
strategy, and screen out unwanted projects as soon as possible
• Engage your stakeholders; ignoring stakeholders often leads to
project failure
• Be sure to engage stakeholders at all stages of a project, and
encourage teamwork and commitment at all times
Project Management Tools and
Techniques
• Project management tools and techniques assist

project managers and their teams in various aspects of
project management
• Some specific ones include:
• Project charter, scope statement, and WBS (scope)
• Gantt charts, network diagrams, critical path analysis, and critical
chain scheduling (time)
• Cost estimates and earned value management (cost)
• See Table 1-1 for many more
Main tools used by Project
Management
Work Breakdown Structures (WBS)
• a deliverable-oriented grouping of project components
that organizes and defines the total scope of the project
work
Critical Path Analysis

• determines the earliest completion time of the project
Project Management Software
• There are hundreds of different products to assist in

performing project management
• Three main categories of tools
• Low-end tools: handle single or smaller projects well, cost under
$200 per user
• Midrange tools: handle multiple projects and users, cost $200-600
per user, Project 2007 most popular
• High-end tools: also called enterprise project management
software, often licensed on a per-user basis, like VPMi Enterprise
Online (www.vcsonline.com); see front cover for trial version
information
• See the Project Management Center Web site or Top Ten
Reviews for links to many companies that provide project
management software
Project Success
There are several ways to define project success

The project met scope, time, and cost goals
The project satisfied the customer/sponsor
The results of the project met its main objective, such as making
or saving a certain amount of money, providing a good return on
investment, or simply making the sponsors happy
Table 1-2: What Helps Projects Succeed?*
1. Executive support 7. Firm basic requirements

2. User involvement 8. Formal methodology
3. Experienced project 9. Reliable estimates
manager
10. Other criteria, such as small
4. Clear business objectives milestones, proper planning,
competent staff, and
5. Minimized scope ownership
6. Standard software
infrastructure
*The Standish Group, “Extreme CHAOS,” (2001).
Skills & Competencies
for Project Managers
Ten Most Important Skills and Competencies

1. People skills
2. Leadership
3. Listening
4. Integrity, ethical behavior, consistent
5. Strong at building trust
6. Verbal communication
7. Strong at building teams
8. Conflict resolution, conflict management
9. Critical thinking, problem solving
10. Understands, balances priorities
Core
Project Management Competencies
• Business/Organizational competencies
• Management Competencies
• Professional Project Management Competencies
Business / Organizational
Competencies
• Business Literacy
• Understand contemporary business fundamentals and
comprehend the business environment of the company,
• Align the project vision with the company’s business vision.
• Corporate Procedures and Tools
• Understand established policies, procedures and tools, and how
to apply them to the project.
• Institutional or Corporate Culture
• recognize and understand the corporate culture and its impact
on the project
• Organizational Structure
• Understand and work within the corporate organization and team
culture
Management Competencies
• These are the “soft-skills” or people-oriented competencies that are
required of any manager, but especially important for project managers
in dealing with all project stakeholders
• Communications
• Communicate effectively using clear writing and verbal skills
• Communicate tactfully and candidly, avoid jargon
• Make stakeholders aware of all relevant issues
• Be an excellent listener.
• Issue Management
• Identify, analyze, prioritize and develop mitigation plans for issues
threatening the project.
• Financial Acumen
• Comprehend how decisions affect the project’s bottom line
• Grasp general financial and accounting principles and practices that affect
operations
• Appreciate and recognize the links between operations and company’s
financial performance, which is essential to create value for all of the
organization’s stakeholders.
• Leadership
• Motivate project team members
• Set SMART objectives
• Maintain a positive outlook
• Take responsibility
• Make decisions
• Provide constructive feedback
• Learning and Knowledge Management
• Keep abreast of technological change
• Learn from and reflect on past experience
• Ensure effective training and development of self and team members
• Find the most expedient way to develop new skills and knowledge
required to undertake new projects
• Negotiations
• Undertake continual adjustments with stakeholders in a persuasive
manner
• Keep the project on course by taking a integrative win/win orientation in
negotiations
• Organization
• Arrange and organize assets so that needed tools, resources and data
are easily accessible
• Create, organize and maintain an effective team structure
• Problem Solving & Decision Making
• Analyze and correctly define a problem
• Evaluate potential alternatives to solve the problem
• Select the optimum solution,
• Implement, monitor and control the selected solution.
• Relationship Management
• Consult and provide advice
• Facilitate discussions and resolve conflicts
• Develop positive relationships with key project stakeholders
• Recognize and impartially deal with people from other cultures
• Establish trust, credibility and earn respect
• Be willing and contented to give more than one will receive
• Strategic Thinking
• Anticipate future impact of decisions by analyzing a big-picture view
• Strategically position the project within the business to align it to the
enterprise’s short and long term objectives
• Team Building
• Assemble the project team with the right mix of skills, then promote and
create teamwork
• Understand and know how to share information
• Coach and mentor members as required
• Delegate responsibility, promote support and positive interaction
• Time Management
• Effectively manage competing priorities
• Be resourceful
• Use time as a valuable resource
Technical Competencies
• These are competencies required for a project manager to be
accountable for and lead the project to a successful completion by
satisfying customer expectations, and the implementing
organization’s objectives
• Budget Planning
• Understand and know how to perform cost/benefit analyses
• Use sound rationale
• Ensure that all factors are included
• Maintain focus on budget
• Consults with client and management if estimated final costs are above
budget
• Customer Focus
• Develop familiarity with and a thorough understanding of client’s needs
• Be able to satisfy realistic expectations
• Interact and reach agreements with the client from the project’s outset
• Contract/procurement Management
• Understand and know how to use purchasing procedures and tools
• Draft contracts with clear and agreed upon term and conditions
• Administer contracts to achieve successful completion
Environmental, Health and Safety
Understand and know how to comply with regulations
Implement a positive attitude toward health and safety in the design and
execution of the project
Ensure safe and environmentally friendly deliverables
Hand-over management
Understand and know how to co-ordinate, implement, test and deliver a
project in order to produce an effective working system or product
Information Management
Ability to manage project documentation (technical and management)
and data or information requirements
• Issues/Change/Assumptions Management
• Devise and implement a change control process when needed
• Document and track issues
• Monitor assumptions and make decisions in a timely manner
• Understand and use problem-solving techniques
• Risk Management
• Understand how to identify, assess, document and manage internal and
external project risks
• Develop response plans, contingencies and mitigation measures
• Project Controls and Process Management
• Understand and know how to use standard project management tools
and techniques to schedule, plan, track and correct project performance
• Know how to make effective use of technical and management
methodologies
• Quality Management
• Plan and implement steps to obtain and assure quality results or
products for total customer satisfaction
• Be able to take corrective actions
• Effectively perform verification of project quality standards
• Resource Management
• Ability to identify and make optimal use of both human and non-human
resources
• Schedule Management
• Ability to organize the work in a logical way so that it is executed
effectively
• Ability to manage the schedule
• Scope Definition
• Ability to establish a clear scope and define the extend of the project
• Set up and understand verification and approval procedures.
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PMGT- 401:

• The ultimate benefit of implementing project management

• The profession of project management is growing at a

PM Network® – a monthly professional magazine

Ethics, loosely defined, is a set of principles that guide

What is PMBOK’s purpose?

What are some of the project attributes?

A project is a temporary endeavor undertaken to

• Projects are multidisciplinary

• Today, customers expect projects not only will be

• Projects are “born” when a need is identified by the

• Sources of projects can be:

Firm’s Evaluation Managerial

Several projects within a specific portfolio can Program

Ongoing operations MUST NOT be included as part of the project.

Project managers work with project sponsors, a project

• As part of project portfolio management, organizations group and

• Let’s say our company is in the construction business.

Project management brings together a set of tools and

• Knowledge areas describe the key competencies that

• A best practice is “an optimal way recognized by industry

• Project management tools and techniques assist

Critical Path Analysis

• There are hundreds of different products to assist in

There are several ways to define project success

1. Executive support 7. Firm basic requirements

*The Standish Group, “Extreme CHAOS,” (2001).

Ten Most Important Skills and Competencies

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