MBB3173
Project Management
Introduction
Topic To Be Covered
• Defining of Project Management
• History of Project Management
• Project Management Functions
• Project Planning and Scheduling
• Project Management Application
• Benefits and Limitations of Network Planning
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Making a Satellite
Factory operations
What is common between these activities?
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Pre 19th Century
The Great Wall of China (221 B.C. 206 B.C.)
The Great Pyramid of Giza (2,550 B.C.)
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The 16th Century and Modern Age
of Engineering
This marked the beginning of
modern engineering with the
formation of professional
societies, printing of treatise on
engineering subjects in quantity,
engine specialization within the
profession, and engineers
began to take advantage of the
brilliant scientific discoveries of
the time.
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The 18th and 19th Century and
the Industrial Revolutions
The end of the 18th and 19th
century witnessed colossal
changes in the Western
World with industrial
revolutions and with this the
birth of management
principles in the business
to become the backbone of
project management
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The First Industrial Revolution and Steam
The changes brought about by the first industrial revolution and its
repercussions required new thinking and solutions at a more macro level.
For example, this new industrialized world with mass production required a
system to supply large quantities of raw materials, resources, man power,
equipment and organization.
It needed more sophisticated systems of transportation, storage,
manufacturing, assembly and distribution. Further a rapidly expanding
workforce of thousands needed to be taken care of in terms of housing,
health, welfare, and education. All this brought in new institutions,
establishments, and organizations. It also brought a more to business and
management based on scientific research and principles.
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The Second Industrial Revolution
Electricity and Combustion Engines
The very late part of the 19th century
saw the second industrial revolution
emerge with a host of new emerging
technologies. The second, dominated
by electricity and chemicals, lasted
1890-1930, and brought telephones,
electrical devices, the internal
combustion engine, and
transportation by land (automobiles),
sea (ocean going liners), and air.
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Establishment of Project Management Institute (PMI)
In 1969, the Project Management Institute (PMI) was formed in the United
States of America to serve the interest of the project management industry.
The premise of PMI is that the tools and techniques of project management
are common even among the widespread application of projects from the
software industry to the construction industry.
In 1981, the PMI Board of Directors authorized the development of what has
become A Guide to the Project Management Body of Knowledge (PMBOK
Guide), containing the standards and guidelines of practice that are widely
used throughout the profession.
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Project Management as a Profession
• Project Management Institute
• More than 64,000 members
• Project Management Body of Knowledge (PMBOK)
• Project-oriented organization
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Understanding of Project Management
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Projects versus Operations
• Organizations perform work - either
• Operations, or
• Projects
• Shared characteristics of projects and operations
• Performed by people
• Constrained by limited resources
• Planned, executed and controlled
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Operations and projects differ:
• Operations are ongoing and repetitive (Factory operations)
• Projects are temporary and unique (Making of satellite)
• “A project is a temporary endeavor undertaken to create a
unique product or service.”
• temporary - definite beginning and end
• unique - different in some distinguishing characteristic
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Examples of projects
• Developing a new product or service
• Effecting a change in structure, staffing, or style of an
organization
• Designing a new transportation vehicle
• Constructing a building or facility
• Running a campaign for political office
• Implementing a new business procedure or process
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Project Characteristics
• Have a specific objective (which may be unique or one-ofa-kind) to be completed within certain specifications
• Have defined start and end dates
• Have funding limits (if applicable)
• Consume human and nonhuman resources (i.e., money,
people, equipment)
• Be multifunctional (cut across several functional lines)
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What is Project Management?
• Project management is the application of knowledge,
skills, tools, and techniques to project activities in
order to meet or exceed stakeholder needs and
expectations from a project.
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The project management challenge
Meeting or exceeding stakeholder needs and
expectations invariably involves balancing competing
demands among:
• Scope, time, cost, and quality
• Stakeholders with differing needs and expectations
• Identified needs and unidentified expectations “client relations challenge”
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Identify Stakeholders
• Critical to identify early
• Analyze their interests, importance, influence
• Classify stakeholders and prioritize relationships
building accordingly
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Identify Project Stakeholders
Project Manager
Project
Sponsor
Department
Managers
Board of
Directors
Customers
Contractors,
Suppliers
Executive
Managers
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Project Team
Project
Management
Office
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Sample of Power/Interest Grid
Stakeholder
High
Manage
Closely
Monitor
(Minimal effort)
Keep
informed
Power
Keep
Satisfied
Low
Low
Interest
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High
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Communication Matrix-Stakeholder
Stakeholder
Business
Specific
Meetings
Project
Working
Committee
(PWC)
Meetings
Project
Sponsor
Project
Steering
Committee
(PSC)
Meetings
Project Status
Reports (PSR)
News Bulletin
Personal
Updates
Yes
Yes
Yes
Yes
Yes
Yes
Project
Manager
Yes
Yes
Yes
Yes
IT Manager
Yes
Yes
Yes
Yes
Yes
Yes
Finance
Manager
Business
Manager/
Consultant
Yes
Yes
Yes
Staff &
Customers
Yes
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Communication Mode
Mode
Working
Committee
Meetings
Steering
Committee
Meetings
Announcement/
Reminders
Minutes/ Email
Minutes/ Email
Distribution
Meeting Modes
Status Reports
Personal Updates
Verbal
Hard copies/
Email
On-site
News Bulletin
Hard copies/
email
Verbal
On-site
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The core of project management
published by PMI in 1987
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Project Management Knowledge Areas
(PMBOK)
• Scope Management
• Cost Management
• Communications
Management
• Human Resources
Management
• Time Management
• Quality Management
• Risk Management
• Procurement
Management
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Relationship to other disciplines - similarities
• General management encompasses
•
•
•
•
Planning
Organizing
Leading
Controlling
• PM management functions overlap
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Function overlap
• Planning the work, schedule and budget
• Organizing and staffing a team to implement the work
• Controlling the project through tracking and monitoring progress
against the plan
• Leading people and resources so the plan is implemented and
adjusted as smoothly as possible
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Relationship to other disciplines - differences
• Much of the knowledge needed to manage projects is unique or
nearly unique to project management, e.g.
• Critical path analysis, and
• Work breakdown structures
• Primary differences between general management and PM found in
the use of specialized tools and techniques.
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Why do you need project management
techniques?
• “The reason for organizing an assignment as a project is to
FOCUS the responsibility, authority, and scheduling of the
project in order to meet defined goals.”
• schedule
• cost
• performance (quality)
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Other major reasons to use PM techniques
• Clear work descriptions minimize surprises and conflicts
• Responsibilities and assignments for specific tasks are easily
identified
• Reduces need for continuous reporting
• Progress can be measured against a plan
• Time limits for task completion are more easily specified
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The two types of project management
activities
• Project planning and definition activities
• Project implementation and control activities
• More simply
• Deciding, and
• Doing
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Planning and definition activities
• Definition of project goals and objectives
• Definition of work requirements
• Definition of quantity of work
• Definition of quality of work
• Definition of required resources
• Definition of organization structure
• Planning of task sequencing and schedule
• Planning of the budget
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Implementation and control activities
• Initiating work
• Monitoring and tracking progress
• Comparing schedules and budgets to plans
• Analyzing impact of changes and progress
• Coordinating activities and people
• Making adjustments to the plan as required
• Completing the project
• Assessing project results
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Success factors in project management
• Appropriately skilled project manager
• Clear authority for the PM to act
• Commitment to the PM methodology
• A skilled PM team agreed to the project goals
• A complete project plan that is understood by all
participants
• Objectives that contribute to the larger goals of the
organization
• Workable tracking and monitoring methods
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Bottom line
• What project management will do is provide a system for
planning, documenting, organizing, and communicating.
• It provides a basis for better decisions
• Ultimately, it is the people who will make things happen and
make things work, not the methodology!
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Project Management
• Project Planning
• Definition of work requirements
• Definition of quantity and quality of work
• Definition of resources needed
• Project monitoring
– Tracking progress
– Comparing actual outcome to predicted outcome
– Analyzing impact
– Making adjustments
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The Pure Project Organization
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The Pure Project Organization
• Advantages
• Effective and efficient for large projects
• Resources available as needed
• Broad range of specialists
• short lines of communication
• Drawbacks
• Expensive for small projects
• Specialists may have limited technological depth
• May require high levels of duplication for certain
specialties
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Functional Project Organization
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Functional Project Organization
• Advantages
• technological depth
• Drawbacks
• lines of communication outside functional
department slow
• technological breadth
• project rarely given high priority
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Matrix Project Organization
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Matrix Project Organization
• Advantages
• flexibility in way it can interface with parent organization
• strong focus on the project itself
• contact with functional groups minimizes projectities
• ability to manage fundamental trade-offs across several
projects
• Drawbacks
• violation of the unity of command principle
• complexity of managing full set of projects
• conflict
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Mixed Project Organization
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Communicator
Communication Paths Between a Project’s Parties-At-Interest
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Benefits
• Identification of functional responsibilities to ensure
that all activities are accounted for, regardless of
personnel turnover.
• Minimizing the need for continuous improvement
• Identification of time limits for scheduling
• Identification of a methodology for trade-off analysis
• Measurement of accomplishment against plans
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Benefits (continued)
• Early identification of problems so that corrective action
may follow
• Improved estimating capability for future planning
• Knowing when objectives cannot be met or will be
exceeded
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Obstacles
• Project complexity
• Customer’s special requirements and scope changes
• Organizational restructuring
• Project risks
• Changes in technology
• Forward planning and pricing
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Classical Management
• Planning
• Organizing
• Staffing
• Controlling
• Directing
Which of the above is Usually NOT performed by the
project manager?
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Resources
• Money
• Manpower
• Equipment
• Facilities
• Materials
• Information/technology
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Successful Culture
• A good daily working relationship between the project manager
and those line managers who directly assign resources to
projects
• The ability of functional employees to report vertically to their
line manager at the same time they report horizontally to one or
more project managers
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Interface Management
• Managing human interrelationships within the
project team
• Managing human interrelationships between the
project team and the functional organization
• Managing human interrelationships between the
project team and senior management
• Managing human interrelationships between the
project team and the customer’s organization,
whether an internal or external organization
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Integration Management
Integration
Management
Resources

Inputs
Capital
 Materials
 Equipment
 Facilities
 Information
 Personnel
Integrated
Processes
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Products
Services
Profits
Outputs
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The Functional Role
• The functional manager has the responsibility to define
how the task will be done and where the task will be done
(i.e., the technical criteria)
• The functional manager has the responsibility to provide
sufficient resources to accomplish the objective within the
project’s constraints (i.e., who will get the job done).
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Functional Obstacles
• Unlimited work requests (especially during competitive
bidding)
• Predetermined deadlines
• All requests having a high priority
• Limited number of resources
• Limited availability of resources
• Unscheduled changes in the project plan
• Unpredicted lack of progress
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Functional Obstacles (continued)
• Unpredicted lack of progress
• Unplanned absence of resources
• Unplanned breakdown of resources
• Unplanned loss of resources
• Unplanned turnover of personnel
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Results of Good Planning
• Assurance that functional units will understand their
total responsibilities toward achieving project
needs.
• Assurance that problems resulting from scheduling
and allocation of critical resources are known
beforehand.
• Early identification of problems that may jeopardize
successful project completion so that effective
corrective action and replanning can occur to
prevent or resolve problems.
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