Part I

Project Management over view

Section 1. Project Section 2. Project Management

- Project Management Definition
 Concepts
- Benefits of project management
 Characteristics
- The steps in managing a project
 Objectives - Project Management’s processes
 Classification - Elements of Project Management
 parameter - Resource required for project
management
- Project Management
Environment
 Section 1. Project

Project Concepts
What is Project?
Or
What do we mean by Project?
How many of you have been
involved in project before?
Or serving as project manager?
Project Concepts
A Project is in a simple term is a collection of linked
activities, carried out in an organized manner, with a
clearly defined START POINT and END POINT
undertaken by individual or organization to achieve
some specific objectives/ results desired to satisfy the
needs of the organization within defined schedule,
cost and performance parameters.
Project Concepts -continued
A Project is an organizational unit dedicated to the
allotment of a goal for the successful completion of a
development product in time, within specified
budget, in conformance with the pre-determined
performance specifications.
A project is Unique process consisting of a set of
coordinated and controlled activities with start and finish
dates, undertaken to achieve an objective conforming to
specific requirements, including constraints of time, cost,
quality and resources”

It is a set of finite activities that are usually prepared

only once and have well designed objectives, using
a combination of human and non-human resources
within limits of time.
A project is a complex of activities where resources
are used in expectation of returns and which lends
itself to planning, financial and implementation as
unit.
 Project has also boundaries which allow them to be
distinguishable from each other. As well as time
sequence of investment, production and benefits, the
project normally has a specific geographic location
with identifiable targets and beneficiaries.
In General the term project has a wider meaning
since different scholars have defined in different
ways.
A project is a temporary endeavour undertaken to
create a unique product or service.
 Attributes of projects
 unique purpose
 temporary
 require resources, often from various areas
 should have a primary sponsor and/or customer
 involve uncertainty
 Link between projects and programs
It is necessary to distinguish between projects and
programs because there is sometimes a tendency to
use them interchangeably.
Student Reflection
What do you understand by the term project and
program?
A Project refers to an investment activity where
resources are used to create capital assets which produce
benefits overtime and has a beginning and an ending
with specific objectives.
What a Project Is Not
 Projects should not be confused with everyday work.
A project is not routine, repetitive work! Ordinary daily
work typically requires doing the same or similar work
over and over, while a project is done only once; a new
product or service exists when the project is completed.
Project changes things, whereas routine works/tasks
involves and promote what is already there.
A programme is an ongoing development effort or
plan. A program is therefore wider than project. It
may include one or several projects at various times
whose specific objectives are linked to the
achievement of a higher level common objective. For
instance a health programme may have water projects
as well as construction of health centers both aimed at
improving the health of a given community.
Projects which are not linked with others to form a
program are sometimes referred to as ‘a standalone
project’.
Shortly:
Programme: usually a long-term series of
interventions, sometimes with no defined end point
Project: a discrete activity aimed at specific objective
with a defined budget and limited timeframe.
A program is a group of related projects managed in a
coordinated way towards a particular program goal to
ensure that projects optimize resources and coordinate
the direction across the projects. A program does not
have a distinctive end in.
 Feature Projects Operations
Purpose Attain objectives and Sustain the
terminate organization
Time Temporary Ongoing
Unique product, service, or Non-unique product,
Outcome result service, or result
Key Differences

Dynamic, temporary teams Functional teams

formed to meet project needs generally aligned with
People
Generally not aligned with organizational
organizational structure structure

Varies by organizational Generally formal,

Authority structure direct line of authority
of
Manager
Generally minimal, if any,
direct line authority
Project Characteristics
Objectives:- A project has a set of objectives or a
mission. Once the objectives are achieved the project
is treated as completed or over.
Project is managed by a process of ‘Planning-
Organizing-Directing-Staffing-Monitoring
Controlling’.
Focus: Project has a fixed set of
objectives/mission/goal. Project ceases to exist once
the mission is achieved
 Lifespan: Each project is time bound/frame through
the schedules or finite life span. Projects can have a
number of starting points but one end.
Project Characteristics- continued
Unique: every project is unique and no two projects
are alike/ similar in their execution even if the plans are
duplicated and therefore a single time activity. Setting
up a cement plant and construction of a highway are
two different projects having unique features.
Unity in Diversity: This is a global concept for any
type of project since project is considered to be a
complex set of thousands of varieties. The varieties are
in terms of technology, equipment and materials,
machinery and people, work, culture and others.
Project Characteristics- continued
Customer specific nature: A project is always customer
specific. It is the customer who decides upon the product
to be produced or services to be offered and hence it is the
responsibility of any organization to go for
projects/services that are suited to customer needs.
Optimality: A project is always aimed at optimum
utilization of resources for the overall development of the
economy.
Complexity: A project is a complex set of activities
relating to diverse areas. A project requires a budget to
plan for cost and resource allocations.
Project Characteristics- continued
Flexibility: Change and project are synonymous.
Project is dynamic in nature and therefore
modifications/changes in original plans, programs and
budgets are a normal feature.
Team Spirit: This involves coming together of
different individuals from varied disciplines to bestow
their knowledge, experience and credence towards a
total performance.
Project Characteristics- continued
Risk and Uncertainty: Every project has risk and
uncertainty associated with it. The degree of risk and
uncertainty will depend on how a project has passed
through its various life-cycle phases. An ill-defined
project will have extremely high degree of risk and
uncertainty. Risk and uncertainty are not only part and
parcel of R & D projects only; there simply cannot be a
project without any risk and uncertainty in a real life
situation.
Project Characteristics- continued
Statement of Work (SOW): Project planning deals with
specified tasks, operations or activities, which must be
performed to achieve project goals. A project starts with
statement of work. It may be a written description of
objectives (rules/regulations/ constraints/restriction) to be
achieved with a brief statement of work to be done and a
proposed schedule specifying the start and completion dates
of the project.
 It could also contain certain performance measures in terms
of budget, completion steps (milestones) and written
reports to be supplied during the project completion.
Project Characteristics- continued
Implementation: Every project needs resources or
inputs where given inputs are to be converted to
output through the process of implementation. The
output in short run leads to outcomes while in the
long run should result in impact.
Project Characteristics- continued
Project Life Cycle: Project life cycle commences
when the idea chosen is found technically feasible,
economically viable, and politically suitable and
investment proposal is approved
Project Classification
The project can be classified in various ways
1. Based on Scope and Significance
National, International
Development, Maintenance, Foreign investment, Joint
venture
New, Expansion, Updating
Location (Rural, Urban)
Resources (Infrastructural, Production, Service)
2. Based on Size and Scale
Large Scale, Medium Scale, Small Scale
3. Based on Ownership and Control
Public Sector, Private Sector, Joint Sector
4. Based on Degree of Change
Inventive, Discovery, Innovation, Adaptation
5. Based on Technology Involved
Conventional, Non-Conventional/Research and
Development Projects/Developing a new Technology,
High Technology and Low Technology
6. Based on Speed
Normal, Crash, Disaster
7. Based on Beneficiary
Industrial, Ancillary, Consumers
8. Based on Purpose
New Projects, Mergers, Diversification,
Modernization, Replacement/Renewal, Up-gradation,
Maintenance, Balancing, Rehabilitation/Sick Unit
Reorganization, Construction Projects e.g.
Construction of house, building, bridges, roads,
tunnels, etc., Management Projects, Manufacturing
Projects
Classification of projects-Cont’d
Key points:
these categories are not necessarily mutually
exclusive: many projects will include aspects of two
or more categories.
Our purpose is to show that a project has many
facets and aspects.
Project parameter
During a project life management focuses attention on
three basic parameter. Quality, Cost and Time. A
successful project is the one that completed at the
specified level of quality on or before the deadline and
within the budget.
 Project
parameters
.

Quality Cost Time

Schedule
Specification Budget
Each of the parameters is specified during the
planning phase of the project. These specifications
then form the basis for control during the
implementation phase.
The purpose of managing project scope, budget and
schedule is to ensure the timely and cost effective
production of all the deliverables with the satisfaction
of customers.
Reasons for Project Failure
1. Poor project and program management discipline
2. Lack of executive-level or sponsor support
3. No linkage to the business strategy
4. Wrong team members, fragmented team or team
value
5. No measures for evaluating the success of the
project
6. No risk management
7. Inability to manage change
 Section 2
Concepts of Project
Management
Section 2. Project management
In this section we will see about:
Project Management Definition
Benefits of project management
The steps/processes in managing a project
Project management

Student Reflection
What do you understand by
project management?

How important is project

management?
Project Management Definition
We have seen what project is
A group of milestones or phases, activities or tasks
that support an effort to accomplish something
Management has been called “the art of
getting things done through people”. This is to
the fact that managers achieve organizational
goals by arranging for others to perform
whatever tasks may be necessary – not by
performing the tasks themselves.
Management has been viewed as a process of
planning, organizing, directing and controlling
the organizational members and of using all other
organizational resources to achieve organizational
goals.
 Process is a systematic way of doing things. We define
management, as a process because all employees,
regardless of their attitude or skills engage in certain
interrelated activities in order to achieve desired goals.
 Project management is the art of organising,
leading, reporting and completing a project
through people

The project management process means planning

the work and then working the plan, that is, process of
first establishing a plan and then implementing that
plan to accomplish the project objective.
Project Management is a dynamic process that
utilizes the appropriate resources of the organization
in a controlled and structured manner, to achieve
some clearly defined objectives identified as needs. It
is always conducted within a defined set of
constraints.
Project management is the planning, scheduling,
and controlling of project activities to meet project
objectives.
The major objectives that must be met include
performance, cost, and time goals, while at the same
time you control or maintain the scope of the project
at the correct level.
Project management is application of
knowledge, skills, tools and techniques to
project activities to achieve project
requirements.
Project Management is the utilization of
skills, tools and management process to
undertake a project successfully. A project
management methodology includes:
Project management- continued
A set of skills. Specified knowledge, skills and
experience help reduce a projects level of risk and
thereby increase its likelihood of success.
A suite of Tools. Project managers use various types
of tools to improve a project’s success rate.
A series of processes: A suite of management
processes are needed to monitor and control the
project such as time management, cost management,
quality management, change management, risk
management and issue management.
According to statement above, managing a project
requires the application of all management activities
that are essential to define the project, develop a plan,
organize and execute the plan, monitor and control
project works in order to complete the project
successfully and achieve its objectives.
 Benefits of project management
Project management was developed to save time and
money by properly planning a project and considering
all relevant factors which may affect its outcome
The benefits have been proven - it saves time and
money - and generates a more successful outcome
…. if guidelines are followed.
Successful PM involves the following:
on time, within budget, at the desired level of
functionality, and using the assigned resources
effectively
The Four Project Objectives are…
 Performance: The quality of the work being
done.
 Scope: The magnitude of the work to be
performed.
 Cost: The cost of project work, directly related to
the human and physical resources applied.
 Time: The schedule that must be met.
Why do companies use project
management?
To handle project effectively in organization
To define the project and agree with customers
To plan and assess resource needs of the project
To estimate the project cost
To plan and schedule activities in a project
 To allocate the right resource at the right time
To assess risk and failure points and make backup plan
To lead project team effectively and communicate well
How does project management benefit you?
You will have goal clarity and measurement
Your resources will be coordinated
Your risks will be identified and managed
You will increase the possibilities of time savings
You will increase the possibilities of cost savings
You will increase the possibilities of achieving the agreed
outcome
You will increase the possibilities to deliver projects
successfully
What project management helps you to achieve?
Plan tasks in project
Avoid dependencies problems
Reduce risks
Track progress accurately
Organize project process and timeline
Improve stakeholder - staff communication
Improve management of stakeholders’ expectations
Complete within budget and on time
Defining Project success Criteria
Project completed on time
Project completed within budget
Project completed according to quality standards and
performance measures
Project completed within defined scope
Project completed by achieving all deliverable.
Project completed to the satisfaction of all key stake
holders and beneficiaries.
Consequences of not using PMT
Delay
Cost
Waste of resources
Quality
Dissatisfaction
Reputation
The steps in managing a project
Project management process is “a set of interrelated
actions and activities that are performed to achieve a
pre-specified set of products, results or services.
Project management process involves carrying out
a number of management activities and actions to
produce the desired products for achieving project
objectives.
Concepts on project phase and life cycle
Project phase: “A collection of logically related
project activities usually culminating in the
completion of a major deliverable.”
Project life cycle: “Collectively the project phases
are known as the project life cycle.”
Is an outline of activities to be performed in every
phase of the project lifecycle in order to
understand clearly what must be done to complete
the project.
Projects, by definition, have a beginning and an end.
They also have defined phases between the project
kickoff and project closeout.
 A phase represents a grouping of similar activities
that has a very loosely defined beginning and end.
Phases are also typically sequential, where the prior
phase is essentially complete before the beginning of
the next phase. That is, initiating is done first, then
planning, then executing, and so on.
Phases do not have clear-cut end dates and some
activities in an early phase of the project will continue
into the later phases.
Broadly speaking, however, they tend to be employed
in the sequence listed as the project progresses. In the
event that a project goes off course, re-planning comes
into play, and if a project is found to be in serious
trouble, it may have to go all the way back to the
initiating process to be re-started.
 Project management is accomplished through the
application and integration of the project
management processes of Initiating, Planning,
Executing, Monitoring and Controlling and
Closing.
• A sequence of events which a project follows is
termed as project cycle.
Initiating processes- authorizing the project or
phase. This would usually include the project charter
and feasibility study.
Planning processes- defining and refining objectives
and selecting the best of the alternative course of
action to attain the objectives that the project was
undertaken to address.
Planning is
Planning is answering questions. What must be done, by
whom, for how much, how, when, and so on. Naturally,
answering these questions often requires a crystal ball.
- What must be done?
- Who will do it?
- How will it be done?
- How much will it cost?
- What do we need to do it?
Executing processes- integrates, instructs and
coordinating people and other resource to carry out
the plan and make it happen.
 Obvious. Once the plan is drafted, it must be
implemented. Interestingly, we sometimes find people
going to great effort to put together a plan, then failing
to follow it. If a plan is not followed, there is not much
point in planning, is there?
Monitor and Control Progress
Plans are developed so that you can achieve your end result
successfully. Unless progress is monitored, you cannot be sure you will
succeed. It would be like having a roadmap to a destination
Controlling processes –ensuring that the project objective are met by
project monitoring and measuring progress regularly to identify
variance from plan so that corrective action can be taken when
necessary
Of course, if a deviation from the plan is discovered, you must ask
what must be done to get back on track, or—if that seems impossible
—how should the plan be modified to reflect new realities?
- Are we on target?
- If not, what must be done
- Should the plan be changed?
Link among the phases/processes
.
Planning
Initiation
process
process

Controlli Executing
ng process
process

Closing
process
 Project Process Life Cycle
Overlap of Process Groups in a Phase
and efforts spent in the process group

Monitoring
Planning or Production
Initiation development or execution
and Closing
controlling
Nine knowledge areas in Project Management
Project management comprises of the following nine
knowledge areas:
1. Project integration management
2. Project scope management
3. Project time management
4. Project cost management
5. Project Quality management
6. Project Human Resource management
7. Project Communication management
8. Project Risk management
9. Project procurement management
1. Project Integration Management
• Effective integration of the processes required to
accomplish project objectives
• Processes includes processes to ensure that all the
elements of a project are properly coordinated.
1. project charter development
2. preliminary project scope statement development
3. project management plan development
4. project execution
5. monitoring and control of project work
2. Project Scope Management
• Defines and controls what is and is not included in the project
• Processes include
1. scope planning
2. scope definition
3. creation of a Work Breakdown Schedule
4. scope verification
5. scope control
The process that ensures the project includes all the work
required, and only the work required
Or the process related to finding what is included and what is
not included in the project.
3. Project Time Management
• Includes processes required for the timely completion
of a project
• Processes include
1. defining activities
2. sequencing activities
3. estimating resource activities
4. estimating duration of activities
5. developing the project schedule
6. controlling the project schedule
4. Project Cost Management
• Planning, estimating, budgeting and controlling costs
to ensure the project can be completed within the
approved budget
• Processes include
1. cost estimating
2. cost budgeting
3. cost control
5. Project Quality Management
• All activities that determine quality policies, objectives
and responsibilities for the project to satisfy the needs
for which it was undertaken
• Processes include
1. quality planning
2. performing quality assurance
3. performing quality control
6. Project Human Resource Management
• Processes that organize and manage the project team
• Processes include:
1. human resource planning
2. acquiring the project team
3. developing the project team
4. managing the project team
7. Project Communications Management
• Activities to ensure project information is timely and
appropriately generated, collected, distributed, stored,
retrieved and disposed of
• Processes include
1. communications planning
2. information distribution
3. performance reporting
4. managing stakeholders
8. Project Risk Management
• Processes to increase the probability and impact of
positive events and decrease the probability and impact
of negative events
• Updated throughout the project
• Processes include
1. risk management planning
2. risk identification
3. qualitative risk analysis
4. quantitative risk analysis
5. risk response planning
6. risk monitoring and control
9. Project Procurement
Management
• Processes to purchase/acquire the products, services
or results needed to perform the project work
• Includes contract management and change control
processes to administer contracts or purchase orders
• Processes include:
1. planning purchases and acquisitions
2. contract planning
3. requesting seller responses
4. selecting sellers
5. contract administration
6. contract closure
PM Knowledge Areas & Process Groups