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Project Management-EBI 4E3

1 Topic
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Topic-1:
General Introduction

Management of Business for Telecommunications and Seventh Semester, 2020-

Informatics
2021
School of Economic and Business
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THE TOPIC KEYPOINTS

1. INTRODUCTION
2. BASIC PRINCIPLE OF PROJECT
3. PROJECT MANAGEMENT DEFINITION
4. PROJECT MANAGEMENT FRAMEWORK
5. PROJECT MANAGEMENT AND KNOWLEDGE
AREAS
6. INTERRELATION PM and OTHER COURSES
7. REVIEW AND SUMMARY

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1. Introduction

Learning
Objectives  Understand the growing need for better project management,
especially for information technology (IT) projects
 Explain what a project is, provide examples of IT projects, list various
attributes of projects, and describe the triple constraint of project
management
 Describe project management and discuss key elements of the project
management framework, including project stakeholders, the project
management knowledge areas, common tools and techniques, and
project success
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1. Introduction
Why do we need a project management professional?
o Worldwide
o IT spending was $3.8 trillion in 2014,
o a 3.2 percent increase from 2013 spending
o The Project Management Institute estimates demand for 15.7 million
project management jobs within range from 2010 to 2020,
o With about 6.2 million of those jobs in the United States.
• Organizations waste $109 million for every $1
billion spent on projects, according to PMI’s Pulse of
the Profession® report
o In 2013 (the most recent year of PMI’s salary survey), the average salary in
U.S. dollars for someone in the project management profession was
o $108,000 per year in the United States;
o $134,658 in Australia, (the highest-paid country); and
o $ 24,201 in Egypt (the lowest-paid country)

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1. Introduction
Why do we have a Motivation for Studying
Information Technology (IT) Project
Management?
o IT Projects have a terrible track record (bad and bad), as described in the What Went
Wrong?

o A 1995 Standish Group study (CHAOS) found that

o only 16.2% of IT projects were successful in meeting scope, time, and cost goals;
o over 31% of IT projects were canceled before completion

o A PricewaterhouseCoopers study found the important fact, that:

o overall half of all projects fail and
o only 2.5% of corporations consistently meet their targets for scope, time, and cost goals
for all types of project.
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2. Basic and Project Principle

The PMBOK
The PMBOK Project Management Body of Knowledge
o is an inclusive term
o that describes the sum of integrated and comprehensive knowledge
o within the profession of project management

PMBOK is applied and including Software

advanced by both: engineering
 practitioners and
 academics
PMBOK can be and is
being used for projects in
various fields of
professions
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2. Basic and Project Principle

1. What is a project?
2. What are process groups
Integrated Basic elements?
3. What are Project knowledges?
Concept

Project management

PMBOK KNOWLEDGE
PROJECT PROCESS GROUPS
AREA

PROCESS SCHEME
INPUTS-TOOLS AND TECHNIQUES-OUTPUT
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2. Basic and Project Principle

Project Management Context

Project
Management
Project Management Process

Project Management Knowledge Area

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Project Management Framework

Knowledge area Project
portfolio
Needs,
expectations
Scope Time Cost Quality Tools and
techniques

integration
Human Communicatio
resource n Risk Procurement Stakeholder strategies

• Performing organization
• Suppliers
• Vendors
• Customers

2. Basic and Project Principle
What is a project?
What is a different project
with operation?
When will finish?
Project size?
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What is a Project?
o A project is “a temporary endeavor undertaken to create
o a unique product,
o a unique service, or result” (PMBOK® Guide, Sixth Edition, 2013)
o Operations is work done to sustain the business
o Projects end when their objectives
o have been reached as planned or
o the project has been terminated (because one or some reasons)
o Projects can be
o large or small, simple or complex and
o take a short or long time to complete
What Is a Project?
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2. Basic and Project Principle

a. What is a project description?
•Temporary with specific start and end dates
•Just One time
•Unique
•Progress elaboration
•Create a unique product, unique service or unique result.

b. How is the project criteria?

•On time
Success Criteria •On budget
•Meeting the goals that have been agreed upon
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2. Basic and Project Principle

Some Examples of IT Projects

o Creating a smartphone application and sells it online

o Developing a driverless car
o A government group develops a system to track child immunizations
o A global bank acquires other financial institutions and needs to consolidate
systems and procedures

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2. Basic and Project Principle

Project Constraint
o Scope: What work will be done as part of the project?
oWhat unique product, service, or result does the customer or sponsor expect
from the project?
oHow will the scope be verified?

oTime: How long should it take to complete the project?

oWhat is the project’s schedule?
oHow will the team track actual schedule performance?
oWho can approve changes to the schedule?

oCost: What should it cost to complete the project?

oWhat is the project’s bud- get? How will costs be tracked?
oWho can authorize changes to the budget?

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SCOPE, TIME, COST, QUALITY

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2. Basic and Project Principle

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2. Basic and Project Principle

How Project Constraints are Interrelated

All of the six constraints influence each other in that any one getting affected
impacts one or more of the rest.
If necessary resources are not available:
 time to deliver will increase.
 This may also increase project cost, because alternate resources, may be more expensive than planned.

6 If QA team finds that the quality of a deliverable is not going good:

 more resources may be required.
Constraints  This increases the cost—for additional resources—and effort to fix the faulty deliverable.
 This will also increase the time to deliver.

If scope creep  happens on the project,…. (unwanted scope)

 it will result in increased time, cost, resources, and potentially reduced quality.
 And thus increased risk on delivery.
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3. Project Management Definition

PROJECT MANAGEMENT?

“the application of knowledge, skills, tools and techniques

to project activities to meet project requirements”

(PMBOK® Guide, Fifth Edition, 2015)

busines
s

• Project managers strive to meet the triple constraint (project scope, time, and cost goals) and
• Facilitate the entire process to meet the needs and expectations of project stakeholders
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3. Project Management Definition

Project Attributes

A project has attributes:

o has a unique purpose
o is temporary
o is developed using progressive elaboration (as within PMBOK)
o requires resources, often from various areas
o should have a primary customer or sponsor
o involves uncertainty

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

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3. Project Management Definition

In the triple constraint, each constraint affects

another when changed.

The constraints are :
o Cost/Budget
o Schedule/Time
o Performance.

As shown in my Quadruple Constraint Tier System,

Client Acceptance becomes the fourth constraint

Finally, cross of them will define the project success

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3. Project Management Definition

Why Do IT Projects success?

There are several ways to define project success:
o The project met scope, time, and cost goals
o The project satisfied the customer/sponsor
o 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

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3. Project Management Definition

Why Do IT Projects Fail?

Larger projects:
• have the lowest success rate and
• appear to be more risky than medium and smaller projects

o Technology update, business models and markets change so rapidly

o that a project takes more than a year can be obsolete before they are completed.

The Chaos study also provides some insight as to the factors that influence project success.

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4. Project Management Framework

Project
Tools and portfolio
techniques
Stakeholders’
needs and Enterprise
Integration Project success
expectations
Monitoring
controlling Project
success

Project Management Framework (PMBOK)

Knowledge areas describe the key competencies that project managers must develop
Project managers must have knowledge and skills in all 10 knowledge areas:
Integration Human Resources
Scope Communication
Time Risk
Cost Procurement
Quality Stakeholder 2

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4. Project Management Framework

Project Stakeholders

Stakeholders are the people involved in or affected by project activities

Stakeholders include
• the project sponsor
• the project manager and or project leader
• the project team
• support staff
• customers
• users
• suppliers
• opponents to the project

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4. Project Management Framework

PROCES SCHEME KNOWLEDGE AREAS

PROCESS GROUPS
(INITIATING, PLANNING,
EXECUTING, MOINTORING &
CONTROLLING, CLOSING)
(INPUTS , ( Integration, Scope, Time, Cost,
TOOLS & TECHNIQUES, Quality, Human Resource ,
OUTPUTS) Communication, Risk,
Procurement, Stakeholder
Management)

Project Management can be grouped into

5 10 49
Process Knowledge Processes with well defined “Inputs, Tools & Techniques ,
Groups Areas and Outputs”
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4. Project Management Framework

The Project Management Input-Tools Techniques-Output Process

PROJECT
PROBLEMS RESULTS GOALS
REQUIREMENTS
Products
Services

INPUT TOOLS, OUTPUT

TECHNIQUES
ITTO
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5. Project Management and Knowledge Areas

Knowledge areas describe the key competencies that

project managers must develop
Project managers must have knowledge and skills in all
10 knowledge areas

The Knowledge Areas are:

Core function: Supporting:
project integration, scope, time, cost, quality, human resource, communications, risk,
procurement, and stakeholder management)

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5. Project Management and Knowledge Areas

Project Management Knowledge Areas
1. Project scope management involves defining and managing all the work required to complete
the project successfully.
2. Project time management includes estimating how long it will take to complete the work,
developing an acceptable project schedule, and ensuring timely completion of the project.
3. Project cost management consists of preparing and managing the budget for the project.
4. Project quality management ensures that the project will satisfy the stated or implied needs for
which it was undertaken.
5. Project human resource management is concerned with making effective use of the people
involved with the project.

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5. Project Management and Knowledge Areas

Project Management Knowledge Areas
6. Project communications management involves generating, collecting, disseminating, and storing
project information.
7. Project risk management includes identifying, analyzing, and responding to risks related to the
project.
8. Project procurement management involves acquiring or procuring goods and services for a project
from outside the performing organization.
9. Project stakeholder management includes identifying and analyzing stake- holder needs while
managing and controlling their engagement throughout the life of the project.
10.Project integration management is an overarching function that affects and is affected by all of the
other knowledge areas.

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6. Project Management and Interrelation

Advantages of Using Formal

Project Management

• Better control of financial, • Lower costs • Improved

physical, and human • Higher quality and productivity
resources increased • Better internal
• Improved customer reliability coordination
relations • Higher and better • Higher worker morale
• Shorter development times profit margins

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6. Project Management and Interrelation

General management encompasses The PMBOK overlaps general

o planning, management in many areas
o organizing, o organizational behaviour,
o staffing, o financial forecasting, and
o executing, and o planning techniques to name just a few
o controlling the operations
of an ongoing enterprise.

PROJECT MANAGER
o PM Body of Knowledge
o Application Knowledge Area
o Standard and Regulation
o Project Environment Knowledge
o General Management Knowledge Skill
o Soft Skill and Human Relation Skill
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7. Review and Summary

A project is “a temporary endeavor undertaken to create

a unique product, service, or result” (PMBOK® Guide)

Project managers strive to meet the triple Successful project management

constraint (project scope, time, and cost goals) means meeting all three goals
and also facilitate the entire process to meet the (scope, time, and cost) and
needs and expectations of project stakeholders satisfying the project’s sponsor.

The project management team should understand and

use comprehensive expertise in the areas:
Project Management Body of Knowledge
Application area of knowledge, standards and regulations
Project environment knowledge
Human relation skills

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7. Review and Summary

What is a project?
• Temporary with specific start and end dates
• Just One time
• Unique
• Progress elaboration
• Create a unique product, service or result.

Success Criteria How is the project criteria?

• On time, related to schedule
• On budget, related to cost
• Meeting the goals that have been agreed upon

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7. Review and Summary

Project Failure Primary Reasons

o Improper Requirement Analysis o Lack of executive-level support

o Poor project and program o No linkage to the business
management discipline strategy

o Wrong team members o No risk management

o No measures for evaluating the o Inability to manage change
success of the project

o Lack of Control & visibility