Project

Management
Concepts
Dr. Ziaul Haq Adnan

Projects

• What is Projects
• Unique, one-time operations designed to accomplish a specific set of objectives
in a limited time frame.
• What is project management?
• A team-based approach for managing projects.
• How is it different from general operations management?
1. Limited time frame.
2. Narrow focus, specific objectives.
3. Less bureaucratic.
• Why is it used?
1. Special needs that don’t lend themselves to functional management.
2. Pressures for new or improved products or services, cost reduction.
Key metrics
and success
factors
 Project Manager’s Responsibility

Project
Management
Triangle
Key
decisions

A
Sample
Project
Charter
 A
Sample
Project
Charter

Stakeholders Management

Stakeholders’
Identify stakeholders Analyze stakeholders
Engagement
• Usually through expert • Update stakeholder • Obtain and conform
judgment of PM register stakeholder commitment
• Create stakeholder • Power-Interest Grid • Communicate with
register • Commitment stakeholders
• Create stakeholder issue Assessment Matrix • Proactively address
log stakeholder concerns
• Resolve issues in a timely
fashion
Power-
Interest
Grid

Figure: A sample Power-Interest Grid for stress test process improvement project
[Source: Project management by Meredith & Mantel, John Wiley & Sons]

Commitment Assessment Matrix

Figure: An illustrative Commitment Assessment Matrix for stress test process improvement project
[Source: Project Management by Meredith & Mantel, John Wiley & Sons]
 Behavioral Issues
Challenges
Decentralized decision making,
Stress of achieving project milestones on
time and within budget
Uncertainties & surprises
Team evaluation may ignore the
individual’s contribution.
Project Champions
Solutions
Interpersonal skills, coping skills
Conflict resolution
Careful selection of team members when
possible;
leadership; motivation; maintaining an
environment of integrity, trust, and
professionalism; and being supportive of
team efforts.
• A person who promotes and supports a project
Probability of Completing a project

• Expected time & variances of the critical and near critical paths should be
analyzed.
• The probability that a given path (preferably critical path) will be completed
in a specified length of time can be determined using the following formula:
• =
• The probability value can be calculated from Normal Distribution Z table.
• The more positive the z value, the better.
• A negative value of z indicates that the specified time is earlier than the
expected path duration.

Joint Probability of Completing a project

 Simulation: Dependent Cases

• Costs can exceed budget for a

number of reasons
Budget Control • initial estimates might have been
overly optimistic.
• unforeseen events such as
weather or supplier issues,
• work or parts are substandard
and had to be remedied, etc.

• The project manager will have to

decide if that amount is acceptable,
or whether corrective action should
be initiated.

• The project cost status would be

updated, usually on a daily or weekly
basis, to keep the project manager
informed.
 Project Risk Management

Risks are inherent in projects

• Delays, increased costs, and an inability to meet technical specifications.
• Unforeseen events may occur that would terminate a project
Good Risk Management
• Careful planning can reduce risks but can’t eliminate it.
• Identify as many potential risks as possible,
• Analyze and assessing those risks,
• Work to minimize the probability of their occurrence,
• Establish contingency plans (and funds) for dealing with any that do occur.
• Much of this takes place before the start of a project, although it is not unusual for this process to
be repeated during the project as experience grows and new information becomes available.

Risk
Management
• The probability of
occurrence of risk events is
highest near the beginning
of a project and lowest
near the end.

• However, the cost

associated with risk events
tends to be lowest near
the beginning of a project
and highest near the end. Figure: Risk event probability and cost

Source: Adapted from Clifford Gray and Erik W. Larson, Project Management: The Managerial Process, 4th ed., p. 198.
Copyright © 2008 McGraw-Hill Companies, Inc.
 Step 1. Identify the risks

Each risk must be evaluated

Determine its probability of occurrence and the

potential consequences
Both quantitative and qualitative approaches
Step 2: Risk have merit.
evaluation Contributors: Managers, workers, and experts

Experience with previous projects can be useful.

Applicable tools: Scenario analysis, simulation,

PERT etc.
Risk Matrix

Depends on the nature and scope of a project.

“Redundant” (backup) systems

• can be used to reduce the risk of failure.
• For example, an emergency generator could supply power in the event
of an electrical failure.

Step 3: Risk Frequent monitoring of critical project dimensions

• Catching and eliminating problems in their early stages,

reduction • Prevent causing extensive damage

Risks can be transferred

• by outsourcing a particular component of a project.

Risksharing
• This involve partnering, which can spread risks among partners;
• This approach may also reduce risk by enlarging the sphere of sources of
ideas for reducing risks.
 PMI Certifications
• A globally recognized, examination based professional
certification program for project managers
• Certification types:
• PMP®: Project Management Professional
• CAPM®: Certified Associate in Project Management
• PMI-PBA®: Professional in Business Analysis
• PgMP®: Program Management Professional
• PMI-RMP®: Risk Management Professional
• PMI-SP®: PMI Scheduling Professional
• PMI Project Management Ready™

Misconduct examples:

• Temptation to understate costs or to

• Temptation to withhold information in order to get a project
Ethical issues approved
• Pressure to alter or make misleading statements
• Falsifying records,
• Compromising workers’ safety
• Approving substandard work.

PMI Code of Ethics & Professional Conduct

(https://www.pmi.org/codeofethics)
• honesty,
• responsibility,
• respect and
• fairness