Project Formulation
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“According to Peter Drucker, the objective of any organization is to
positively change the lives of those with whom it has direct contact.
This encompasses employees, customers, suppliers and the community
in which it operates. Management is not a science, art, program or
gimmick; it is a practice based on a fundamental belief.” (Gorelick,
2003)
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What follows is a discussion on Project Management . This discussion
takes you through some standards and best practices that are generally
accepted. Generally , means most of the time and by most of the people
or organizations.
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Agenda
Session – 1
Session – 2
Definition of a project
Projects and Operations
Project Phases
Project Life Cycle
Project Initiation
Project Charter
Stakeholders
Project Management Elements
Process Groups
Knowledge Areas
Scope statement
Project Management Plan
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Definition of a Project
Project
A project can be defined as a temporary endeavor undertaken for
creating a unique product or service or a result. Temporary means
that every project has a definite beginning and a definite ending.
Unique means that the product or service or result is different in
some distinguishing way from all other products or services or
results
Examples of projects
Developing a software
Building a new house
Designing a new website
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Projects and Operations
Project Vs Operations
Projects
Purpose of a project is to
attain its objectives and close
Operations
Purpose of an operations is to
sustain business
Projects are temporary and
unique
Operations are ongoing and
repetitive and permanent
Developing a new product,
building a house, writing a
manual
Invoice processing, delivery
services
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Projects and Operations
Common Characteristics and Differences between
Projects and Operations
Common
Characteristics
Projects
Temporary
Unique
 Performed
by people
 Limited
Resources
 Planned,
Executed
and
Controlled
Operations
Ongoing
Repetitive
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Project Phases and Project Lifecycle
Projects are divided into project phases for better management
control and reducing the degree of uncertainty
All the project phases collectively are called as project life cycle
Analysis
Design
Coding
Testing
Closing
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Project Phases and Project Lifecycle
Phase to Phase relationships
Sequential - One phase completes and the next phase starts. Low
risk relationship.
Analysis
Design
Development
Testing
Overlapping or Fast tracking - The next phase starts before the
previous phase completes. This might be risky as rework may be
triggered.
Construction
Electrical
Plumbing
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Project Phases and Project Lifecycle
Cyclic Incremental Phases
Starting from the first phase work can be completed throughout
all the phases taking one component. Then second component of
work may be taken from the first phase and all related activities
throughout all the phases will be completed. This cycle continues.
Depending upon the situation any relationship may be used
individually or in combination with other relationships. For
example if the project risk is low and time constraint is there for
one phase, Fast tracking may be useful.
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Project Phases and Project Lifecycle
In the initial stages, Cost and staffing levels are low. They
increase with project duration, and then decrease sharply
when project nears completion
Cost and Staffing levels
Start of project
Project Duration
End of project
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Project Phases and Project Lifecycle
Probability of successfully completing project, Cost of
changes, Cost of Error Correction are low. They increase
with project duration
Probability of Project success
Start of project
Project Duration
End of project
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Project Phases and Project Lifecycle
Uncertainty/Risks about the project, the ability of
stakeholders to influence the final characteristics of
project’s product are high. They decrease with project
duration.
Project Risks and uncertainty
Start of project
Project Duration
End of project
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Project Initiation
A business Strategy or a goal to be achieved triggers a needs
analysis
A Portfolio steering committee, a Sponsor or a PMO is formed to
work on the feasibility of the project . A Statement of work
(SOW) is developed
Project selection methods are used to assess the value of
investment and the viability of the project. A Business case is
developed that contains
 The business need/driving factors for the project
 Cost benefit analysis
 Results of the project selection factors
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Project Drivers – Business need
Market demand - Design a fuel efficient automobile
Organizational need - Develop orientation training material for
new employees
Customer request - Integrate all systems in an IT organization
Technological advance - Develop dish antennas to replace cable
transmission
Legal requirement - Cleanup the toxic materials from a factory
Community needs - Flyovers, sub-ways, Parks, Public latrines
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Problem Analysis - Tools
Cause and effect Diagram
This is also called as “Ishikawa diagram” or “Fish bone
diagram”. This tool is used to identify the root causes
underlying a problem. It determines the various factors that
might be linked to potential problems or effects
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Problem Analysis - Tools
Attitude
No Training
Customer dissatisfied
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Problem Analysis – Logic Tree
Effects
Insufficient rice production in a village
ABC
Faulty irrigation system
No maintenance
Some irrigation
structures
destroyed
Unsuitable agricultural
practices
Farmer support
not available
Farmers have no
investment
capacity
Problem transformation to objectives
Objectives
Problems
Insufficient rice
production in a village
ABC
Faulty
irrigation
system
Unsuitable
agricultural
practices
Rice production in the
village ABC is sufficient
Irrigation
system is
repaired
Agricultural
practices
appropriate
Enterprise Environmental Factors
These are factors that are external to the project and influence
project success. Examples:
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Organizational structure (functional vs. matrix)
Technological changes
Geographic conditions (Real Team vs. Virtual team)
Personnel Administration (Full time Vs. Contract)
Changes in Government rules and regulations
Economical (Budget Constraints)
Market Conditions
Project Management Information System (PMIS)
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Organizational Process Assets
These are assets related to organizational processes that influence
project success. Examples:
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Formal and informal plans
Procedures, policies and guidelines
Organizational processes
Project process guidelines
Financial control procedures
Communication requirements
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Project Charter
It documents the business needs and current understanding of
the customer requirements.
Issued by the sponsor. Formally authorizes a project.
Project Manager is identified and given authority.
Project does not exists without a project charter.
It Contains Project Title, purpose, description, justification, goals
and objectives, summary level requirements, Milestones
Schedule, Budget and Risks.
Also contains Assumptions, Constraints, acceptance criteria
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Project Stakeholders
Identifying all people or organizations affecting / affected by
the project and documenting their interests, involvement
and impact on the project success
Project Stakeholders are
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Persons or organizations
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Actively involved in the project or
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Whose interests are affected either positively or negatively
by the execution or completion of the project
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Project Stakeholders
Individuals or a group of people or organizations who actively
participate in the project activities or whose interests are affected
either positively or negatively
FMs
Program
Manager
Customers
Sponsor
PMO
PM
Team
Project
Manager
Other Team
members
Operations
Management
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Project Stakeholders
Project Sponsor: A Person or a group that provides financial
resources for the project is called project sponsor or project
initiator. Also approves project charter. Approves major
changes to the project objectives
Project Manager: Person responsible for managing the
project. Project Manager is project integrator, manages the
team, manages the stakeholders, manages communications
and responsible for the overall quality of the project
Customer: The person or organization that uses the
project’s product
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Project Stakeholders
Functional Manager: Functional manager assigns personnel.
Receives and evaluates individual performance reports from
the project manager
Project team: The team members that perform the actual
work of the project
Project Management team: The team that provides PM
support functions and group that is involved in Project
Management Activities. It is subset of project team.
Performing organization: The enterprise whose employees
are most directly involved in performing the work of the
project
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Stakeholders - Analysis
This contains the processes of systematically gathering the interests
of the stakeholders, analyzing them and arriving at a management
strategy. This is conducted throughout the project life cycle. This
process basically includes three steps.
 Identifying all the stakeholders, their interests, their influence
and roles
 Assessing their impact and support
 Developing a management strategy
Helps in identifying the opportunities and relations to build upon to
make the project a success. Potential conflicts and Risks that may
evolve
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Stakeholder Analysis
Power/Influence of the
stakeholders
Power / Interest Grid
Keep them satisfied
Medium to high
Importance
Monitor them
Low Importance
Manage them closely
High Importance
Keep them informed
Low to Medium
Importance
Interest of the Stakeholders
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Project Stakeholders
Stakeholder Management Strategy
Stakeholder management strategy contains
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Key stakeholders
Their level of participation
Strategies for increasing the support
Strategies to decrease the resistance
Main goal is to maximize the stakeholder support and minimize their
resistance
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“As a manager the important thing is not what happens when you
are there, but what happens when you are not there”
- Ken Blanchard
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“All things are created twice; first mentally; then physically. The key
to creativity is to begin with the end in mind, with a vision and a blue
print of the desired result.”
— Stephen R Covey
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Break
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Management is efficiency in climbing the ladder of success; leadership
determines whether the ladder is leaning against the right wall.
- Stephen R Covey
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Project Management
Project Management
Project Management is the application of knowledge, skills, tools
and techniques to project activities to meet project requirements.
Balancing Competing Constraints
Quality
Schedule
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The Plan-Do-Check-Act Cycle
Plan
 What to do
 How to Accomplish it
Do
 Determine
changes
Act
 Analyze reason
or not getting
desired results
 Carry out the plan
 Standardize if
desired results
have come
Check
 Check if the planned results
have come
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Process Groups and Knowledge Areas
According to the Project Management Body of Knowledge PMBOK®
There are five process groups and Nine knowledge areas.
The process groups are,
P
A
D
C
PMBOK®
Initiating
Planning
Executing
Closing
Monitoring and Controlling
Is a registered trademark of Project Management Institute (PMI), USA 36
Process Groups and Knowledge Areas
The Knowledge Areas are,
1.
2.
3.
4.
5.
6.
7.
8.
9.
Project
Project
Project
Project
Project
Project
Project
Project
Project
PMBOK®
Integration Management
Scope Management
Time Management
Cost Management
Quality Management
Human Resources Management
Communications Management
Risk Management
Procurement Management
Is a registered trademark of Project Management Institute (PMI), USA
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Defining Scope of the Project
Ensure that the project includes all the work and only the work
required to complete the project. Managing project scope involves
defining and controlling “what is” and “what is not” included in the
project
Collecting Requirements - involves defining and documenting
stakeholders’ needs and expectations to meet the project
objectives
Defining Scope - is the process of developing a detailed description
of the project and the product
Creating a WBS - is the process of subdividing project deliverables
and project work into smaller, more manageable components
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Collect Requirements - Methods
 Interviews
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Focus groups
Facilitated workshops
Group creativity techniques
Group decision making techniques
Questionnaires and surveys
Observations
Prototypes
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Collect Requirements - Methods
Interviews – Formal or informal approach to discover
information from stakeholders by talking to them directly
Focus Groups – Technique of bringing stakeholders and SMEs
together to learn their needs and expectations by the help of a
moderator
Facilitated Workshops – Sessions that bring cross-functional
stakeholders together to define product requirements
 JAD (Joint Application Design) Sessions between users
and development team
 QFD (Quality Function Deployment) in manufacturing
industry
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Collect Requirements - Methods
GROUP CREATIVITY TECHNIQUES
 Brainstorming – Collection of multiple ideas
 Nominal group technique – Brainstorming plus voting
 Delphi technique – Expert’s opinion (Anonymous)
 Idea/mind mapping – Consolidation of individual ideas
 Affinity diagram – Categorization of ideas
GROUP DECISION MAKING TECHNIQUES
 Unanimity – Decision by consensus . All persons one
 Majority – More than 50% support
 Plurality - Decision of the largest block
 Dictatorship – Only one individual taking a decision
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Collect Requirements - Methods
QUESTIONNAIRES AND SURVEYS
Predefined sets of questions designed to gather information
A better tool when the requirements are to be collected
from a large audience
OBSERVATIONS
Viewing individuals in an environment performing his/her
job. Also called as “Job Shadowing”
PROTOTYPES
Building a working model of the expected product before
actually building it then improving upon the requirements
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Defining Scope
Process of developing a detailed description of the project and the
product
Project Scope Statement
Statement that describes project’s deliverables and the work
required to create those deliverables. Acts as a baseline for
managing change
Project Scope is progressively elaborated. It contains,
 Constraints and Assumptions
 Acceptance Criteria
 In-Scope and Out-of-Scope
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Work Breakdown Structure (WBS)
Process of subdividing project deliverables and project work into
smaller, more manageable components
Decomposition
The technique of breaking down the total work into more manageable
chunks is called decomposition.
Decomposition could have major deliverables, phases or sub-projects
as first level of WBS
100% rule: no extra work left when lower levels are rolled up to
higher levels to show the total work
Excessive decomposition may be ineffective
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Work Breakdown Structure (WBS)
 A WBS is a deliverable oriented grouping of project
components.
 It is created by the project team and serves as a team
development tool.
 Helps communication between the project team and
the stakeholders.
 It is not time based
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Work Breakdown Structure (WBS)
Training
Work Breakdown Structure
Session
Material
Course
Material
Workbook
Stationary
Staff
Facilities
Instructor
Venue
Admin staff
Lunch and
Snacks
Study Guide
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Project Management Plan
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A document containing the actions necessary to define,
prepare, integrate and coordinate all subsidiary management
plans and outputs of all the planning activities.
All subsidiary management plans (Ex. Scope management
plan, Quality management plan, Communications
management plan) and all baselines (Ex. Scope Baseline,
Schedule Baseline)
Defines how the project is executed, monitored and
controlled, and closed
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If you want to give a man credit, put it in writing. If you want to
give him hell, do it on the phone
- Charles Beacham
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THANK YOU
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