Project Management

Principles
 Agenda
1) What is project?
2) What is project management?
3) Popular PM methodologies/ standards?
4) The project Life cycle
5) Nine knowledge areas, starting with the 4 core
6) Nine knowledge areas continued: the four facilitating areas and Integration
7) Five Management Process Groups
8) Main project constraints
9) Benefits of Project Management
1. What is project?
Project - A project is a temporary endeavor undertaken to create a unique product, service, or
result.*

*A Guide to the Project Management Body of Knowledge (PMBOK® Guide)

 Project or ongoing operation?
Project:
● One-off, are temporary, unique
● Have specific start and end dates
● Have limited resources
● Involve uncertainty
● Implement change
Ongoing operation:
● Ongoing
● Repeat familiar tasks
● Permanent resources per tasks
● Include day-to-day duties of a
workplace
2. What is project management?

“The art and science of managing a project from

inception to closure as evidenced by the successful
product delivery and transfers.‘’ PMIS (1997)
Considerations ranges
● Needs to be a clear allocation of resources, time ● Closing process need to be in the end of the
and budget to enable the project to be planned project: deliverables verified, handed over;
and executed; ● Monitoring and controlling;
● Project Management plan must be written that ● The project needs to be anticipated and
outlines what will be built in which sequence planned for changes that can be requested,
and time duration using what resources; considered and implemented in the most
● The key constraint need to be maintained: efficient ways.
scope, time, cost, risks, quality and resources;
● Good communication must be maintained
through the project to enable stakeholders to
have their requirements, concerns listened to
the end address;
Key successful factors for projects
● Process:
- Clear Project scope;
- Project management process;
- Planning well and then tracking and reporting
progress well;
● People:
- Experienced PM;
- Stockholders & management support;
- Involving end users at the concept and planning
stages;
● Attitude:
- Realistics expectations;
- Communicating well;
- Emotional Maturity.
3. What are project management methodologies?
Is a set of guiding principles and processes for managing
a project. Your choice of methodology defines how you
work and communicate.

Let’s take a look at following methodologies and

standards: PMBok by PMI, Prince2, Critical Chain Project
Management, ISO 21500
 PRINCE2
The PRINCE2 method is built on the following 7 principles: PRINCE2 phases:
1. Projects must have business justification. 1. Starting up a project
2. Teams should learn from every stage. 2. Directing a project
3. Roles and responsibilities are clearly defined. 3. Initiating a project
4. Work is planned in stages. 4. Controlling a stage
5. Project boards "manage by exception.“ 5. Managing product delivery
6. Teams keep a constant focus on quality. 6. Managing stage boundaries
7. The approach is tailored for each project. 7. Closing the project
 Critical Chain Project
Management
Critical chain project management (CPM) is a method of planning and
managing projects that emphasizes the resources (people,
equipment, physical space) required to execute project tasks. It was
developed by Eliyahu M. Goldratt.

Few Constraints:

● There is a certain amount of uncertainty in each task.

● Task durations are often overestimated by team members or
task owners.
● In most cases, the tasks should not take the time estimated,
which includes the safety margin, and should be completed
earlier.
● If the safety margin assumed is not needed, it is actually
wasted.
 ISO 21500 VS PMBoK by PMI
ISO 21500 – Guidance on project management, has been
unanimously approved by 33 countries in an international ballot of
participating national standards authorities.

PMBoK by PMI – the Project Management Body of Knowledge is

a set of standard terminology and guidelines for project management.
The body of knowledge evolves over time and is presented in A Guide
to the Project Management Body of Knowledge.
 4. The Project life cycle
This term is used to refer to the
progression of project through a
number of phases from its
inception to its close.

Project management ‘life

cycle’ is actually linear - you
don’t want your projects going
in circles.
 Phases of project management ‘life cycle’

● PMBoK says that project life cycle

has four main phases: Starting,
Operating & preparing, Carrying
out work and Closing.
● Prince uses pre-project, initiating,
delivery and final delivery stage.
● Different names but they all mean
similar things - Concept, Develop,
Execute and Finish (C-D-E-F).
Phases of project management ‘life cycle’
5. Nine knowledge areas: Core areas
There are nine knowledge areas in total:

Core areas correspond to main constraints: the scope, the time, cost and agreed quality
5. Nine knowledge areas: Scope management
● Collecting requirements - what stakeholders
need the project to deliver
● Defining the scope - clear description that
agreed to by key stakeholders
● Creating the Work Breakdown Structure (WBS) -
Hierarchical listing that breaks the main project
goal into work packages
● Verifying scope - making sure project sponsor
signs off a deliverables as completed
● Controlling scope - monitoring and managing
changes to keep the project ‘on scope’
5. Nine knowledge areas: Time management
● Defining activities - decomposition of created WBS
further into individual tasks
● Sequencing activities - defining sequence of
activities to be done according to their
relationships
● Estimating resources and durations - defining
materials, people, equipment and amount of time
needed to finish activity
● Defining and controlling schedule - defining
schedule and adjusting it according to changes
5. Nine knowledge areas: Cost management
● Estimating costs - iterative of ROM estimates
● Determining budget - adding of estimated cost of individual activities
● Control of the costs - monitoring and making changes where required
5. Nine knowledge areas: quality management
Three processes used for quality management
● Planning quality
● Performing quality assurance
● Performing quality control
6. Nine knowledge areas: Part 2: Human resource management

Four processes identified for managing

human resources
● Developing HR plan
● Acquiring project team
● Developing the team
● Managing Project team
6. Nine knowledge areas: Part 2: Communication management

There are five processes defined in this scope

according to PMBoK Edition 4
● Identifying Stakeholders
● Planning communications
● Distributing information
● Managing Stakeholders expectations
● Reporting performance
6. Nine knowledge areas: Part 2: Risk management
There are six processes defined for RM
● Planning risk management
● Identifying risks
● Performing qualitative assessments
● Planning responses
● Monitor and control risks
7. Five management process groups
Project management process includes:

● Initiating triggers the planning process group. After preparing the required documents and steps for
initiating the project the next process group begins
● Planning triggers the execution process group
● Execution is the phase where the most of the project work is delivered
● Monitoring and controlling in this phase, the project team checks
whether everything is going as planned
● Closing helps to close the project after all objectives are met

Life cycle can change from project to project but project management groups
are the same
7. Five management process groups
Planning: this group of processes is all to do with planning the project or
project phase, including defining the project’s exact scope (work to be done),
refining objectives and defining the course of action.

Initiating: these processes are used to define a new project or a new phase
of a project. They help you to get authorisation to proceed. If proper
authorisation has not been granted there will be no access for resources

Executing: are processes to do with getting the actual project work done as
defined in the project management plan in a way that meets the agreed
project specifications.
7. Five management process groups

Monitoring & controlling: track, review, and regulate the progress

and performance of the project; identify any areas in which changes
the plan are required; and initiate the corresponding changes ”.

Closing: consists of those processes performed to conclude all activities to

formally complete the project, phase, or contractual obligations. This process
group, when completed, verifies that the defined processes are completed.
8. Main project constraints
Constraint - something that limits the running of the project, whether by creating a bottleneck, a limitation or
a restriction. Something that controls what you do by keeping you within particular limits.

All projects are constrained by multiple factors that

also have an impact on each other. The balancing of
these constraints is an important part of managing a
project correctly.
8. Main project constraints
Time constraint: The time constraint refers to the project’s schedule for completion, including the deadlines
for each phase of the project

Scope constraint: The scope of a project defines its specific goals, deliverables, features and functions, in
addition to the tasks required to complete the project.

Cost constraint: The cost of the project, comprises all of the financial resources needed to complete the
project on time, in its predetermined scope.
9. Benefits of project management

To take on the challenge of implementing

modern project management practises in
organisation there need to be a
willingness to spend time and effort on
training, up-skilling and recruiting and
organisational acceptance.
Main benefits of PM module:
● Improved customer relations
● Shorter development times
● Lower costs
● Higher quality and dependability
● Better control of internal resources
● Higher worker morale
● Provides a competitive advantage in the
market place
9. Summary