Project Management
Introduction
Rev. 0
April 2018
““If you only do
what you can do,
you will never
be more than
who you are.”
- Master Shifu
Objective
Our objective is to introduce the Project Management processes and knowledge areas in accordance
with the Project Management Institute Body of Knowledge 6th Edition
Project Management Introduction
Project Management Professional (PMP)
Project Management Professional (PMP) is an internationally recognized professional designation offered by
the Project Management Institute (PMI). As of March 2018, there are 833,025 active PMP certified individuals
and 286 chartered chapters across 210 countries and territories worldwide.
Project Management Introduction
Project Management Professional (PMP)
Globally recognized and demanded, the PMP certification demonstrates to employers, clients and
colleagues that a project manager possesses project management knowledge, experience and skills
to bring projects to successful completion.
As the demand for skilled project managers is at a critically
urgent level, practitioners who hold the PMP certification are
well positioned to provide the professional skills necessary to
lead project teams and achieve successful project results.
The PMP recognizes the competence of an individual to perform
in the role of a project manager, specifically experience in leading
and directing projects. Year after year, the PMP certification has
garnered global recognition and commanded a higher salary for
certified individuals over non-certified individuals.
Project Management Introduction
PMP Prerequisites

Secondary degree (high school diploma, associate’s degree or the global equivalent)

7,500 hours leading and directing projects

35 hours of project management education
OR

Four-year degree

4,500 hours leading and directing projects

35 hours of project management education
Project Management Introduction
PMP Exam

200 Questions

4 hours

72 seconds per question

Price US$ 555 for non-members (or US$ 405 for members; membership annual cost is US$ 129)
Domain
Percentage of Items on Test
1. Initiation
13%
2. Planning
24%
3. Executing
31%
4. Monitoring and Controlling
25%
5. Closing
7%
Project Management Introduction
PMBOK 6th Edition
www.pmi.com
www.pmi.org
www.ipma.ch
www.apm.org.uk
Project Management Introduction
PMBOK 6th Edition
Project Management Introduction
Project Management
Introduction
Project Management Introduction
Definitions
What is a Project?

Temporary endeavor
Every project has a definite beginning and a definite end.
Does not mean short duration

Undertaken to create a unique product, service or result
A product or artifact that is produced, is quantifiable,
and can be either an end item in itself or a component item
result, such as outcomes or documents
Project Management Introduction
Definitions
Projects drive change. Projects drive change in
organizations. From a business perspective, a
project is aimed at moving an organization from
one state to another state in order to achieve a
specific objective . Before the project begins, the
organization is commonly referred to as being in
the current state. The desired result of the change
driven by the project is described as the future
state
Project Management Introduction
Definitions
Projects enable business value creation. PMI defines business value as the net quantifiable benefit
derived from a business endeavor. The benefit may be tangible, intangible, or both. In business analysis,
business value is considered the return, in the form of elements such as time, money, goods, or intangibles
in return for something exchanged
Examples of tangible elements include:
 Monetary assets,
 Stockholder equity,
 Utility,
 Fixtures,
 Tools, and
 Market share.
Project Management Introduction
Examples of intangible elements include:
 Goodwill,
 Brand recognition,
 Public benefit,
 Trademarks,
 Strategic alignment, and
 Reputation.
Definitions
Project
Initiation
Context.
Organizational leaders initiate
projects in response to factors
acting upon their organizations.
There are four fundamental
categories for these factors, which
illustrate the context of a project
Project Management Introduction
Definitions
What is a Program?
A group of projects…

Managed in a coordinated way…

To obtain benefits not available from managing them individually
What is Portfolio?
A collection of projects, programs, and operations managed as a group to achieve strategic
objectives
What is Operation?
An organizational function performing the ongoing execution of activities that produce the
same product or provide the same repetitive service
Project Management Introduction
Definitions
Project Management Introduction
Definitions
What is Project Management?
Application of knowledge, skills, tools, and techniques to
project activities to meet project requirements
Project management is the practice of initiating, planning, executing, controlling, and closing the
work of a team to achieve specific goals and meet specific success criteria at the specified time
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Project management is about influencing tomorrow. Today
has already happened and yesterday is gone. (’PROACTIVE’)
Decisions affecting tomorrow can only be made on
information available today.
Project management is about managing a set of relationships
over time and about understanding people.
Project Management Introduction
Definitions
What is Resource?
Skilled human resources
equipment,
services,
supplies,
commodities,
material,
budgets, or
funds. “PMI”
What Is a Deliverable?
•
A tangible, verifiable product, result or capability to perform a service that must be produced
to complete a process, phase, or project.
•
A deliverable often marks the end of a phase of the project
•
Phase end = Phase exit, stage gates, or kill points
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Definitions
Triple Constraints
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Definitions
Who is A Project Manager?
A project manager is the person responsible for accomplishing the stated project objectives.
A Project Manager is the person responsible for
leading a project from its inception to planning,
execution, managing the people and resources and
scope of the project – its cost, time and quality that is
also referred to as the “triple constraint for projects.”
He/she must have the discipline needed for creating
clear and attainable objectives and seeing them
through to successful completion. The Project
Manager has full responsibility and authority to
complete the assigned project.
Project Management Introduction
Definitions
Project manager for a large project can be compared to
the roles of a conductor for a large orchestra:

Membership and roles

Responsibility for team.

Knowledge and skills
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Definitions
The Project Manager’s Sphere Of Influence
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Definitions
Project Manager Authorities
Don’t accept responsibility
without authority
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Definitions
Project Manager Competences
Technical project management. The knowledge, skills, and
behaviors related to specific domains of project, program,
and portfolio management. The technical aspects of
performing one’s role.
Leadership. The knowledge, skills, and behaviors needed to
guide, motivate, and direct a team, to help an organization
achieve its business goals.
Strategic and business management. The knowledge of
and expertise in the industry and organization that enhanced
performance and better delivers business outcomes.
Project Management Introduction
Definitions
Interpersonal
and
Communication
skills
Planning and
Organization
Project
Manager
Project
Management
Knowledge
Project Management Introduction
Understanding
Project
Environment
Technical
Knowledge
Definitions
Objective
Our objective should be SMART
Project Management Introduction
Definitions
DISNEY – TO MAKE PEOPLE HAPPY
IKEA – TO CREATE A BETTER EVERY DAY LIFE FOR THE
MANY PEOPLE
HONDA – IN 1970: WE WILL DESTROY YAMAHA
FORD – TO BECOME THE WORLD’S LEADING CONSUMER
COMPANY FOR AUTOMOTIVE PRODUCTS AND SERVICES
WAL-MART – BECOME A $125 BILLION COMPANY BY THE
YEAR 2000
MICROSOFT – A COMPUTER ON EVERY DESK AND IN EVERY
HOME; ALL RUNNING MICROSOFT SOFTWARE
Project Management Introduction
Project Management Processes
Project Management Process Groups

Initiating Process
Defines and authorizes the project or a project phase.

Planning Process
Defines and refines objectives, and plans the course of
action required to attain the objectives and scope that
the project was undertaken to address.

Executing Process
Integrates people and other resources to carry out the project management plan for the project.

Monitoring and Controlling Process
Regularly measures and monitors progress to identify variances from the project management
plan so that corrective action can be taken when necessary to meet project objectives.

Closing Process
Formalizes acceptance of the product, services or result and brings the project or a project phase
to an orderly end
Project Management Introduction
Project Management Processes
Level of
Process
Interaction
Executing
Processes
Planning
Processes
Monitoring & Controlling
Processes
Initiating
Processes
Project/Phase
Start
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Time
Closing
Processes
Project/Phase
Finish
Project Management Knowledge Areas
Monitoring &
Controlling Processes
Planning
Processes
Enter Phase/
Project
Closing
Processes
Initiating
Processes
Executing
Processes
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Exit Phase/
Project
Project Management Knowledge Areas
Plan-Do-Check-Act Cycle (PDCA)
An underlying concept for the interaction among the project management processes
Project Management Introduction
Project Management Knowledge Areas
Project
Stakeholder
Management
Project
Integration
Management
Project
Procurement
Management
Project Scope
Management
Project
Schedule
Management
Project
Management
Knowledge
Areas
Project Risk
Management
Project
Communication
Management
Project Management Introduction
Project Cost
Management
Project Quality
Management
Project
Resource
Management
Project Management Processes and Knowledge Areas
Project Integration Management. Includes the processes and activities to identify, define, combine,
unify, and coordinate the various processes and project management activities within the Project
Management Process Groups.
Project Scope Management. Includes the processes required to ensure the project includes all the work
required, and only the work required, to complete the project successfully.
Project Schedule Management. Includes the processes required to manage the timely completion of
the project.
Project Cost Management. Includes the processes involved in planning, estimating, budgeting,
financing, funding, managing, and controlling costs so the project can be completed within the approved
budget.
Project Quality Management. Includes the processes for incorporating the organization’s quality policy
regarding planning, managing, and controlling project and product quality requirements, in order to
meet stakeholders’ expectations.
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Project Management Processes and Knowledge Areas
Project Resource Management. Includes the processes to identify, acquire, and manage the resources
needed for the successful completion of the project.
Project Communications Management. Includes the processes required to ensure timely and
appropriate planning, collection, creation, distribution, storage, retrieval, management, control,
monitoring, and ultimate disposition of project information.
Project Risk Management. Includes the processes of conducting risk management planning,
identification, analysis, response planning, response implementation, and monitoring risk on a project.
Project Procurement Management. Includes the processes necessary to purchase or acquire products,
services, or results needed from outside the project team.
Project Stakeholder Management. Includes the processes required to identify the people, groups, or
organizations that could impact or be impacted by the project, to analyze stakeholder expectations and
their impact on the project, and to develop appropriate management strategies for effectively engaging
stakeholders in project decisions and execution.
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Project Management Processes and Knowledge Areas
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Project Management Processes and Knowledge Areas
PROJECT MANAGEMENT DATA AND INFORMATION
Work performance data. The raw observations and measurements identified during activities performed
to carry out the project work. Examples include reported percent of work physically completed, quality and
technical performance measures, start and finish dates of schedule activities, number of change requests,
number of defects, actual costs, actual durations, etc. Project data are usually recorded in a Project
Management Information System (PMIS) and in project documents.
Work performance information. The performance data collected from various controlling processes,
analysed in context and integrated based on relationships across areas. Examples of performance
information are statu of deliverables, implementation status for change requests, and forecast estimates to
complete.
Work performance reports. The physical or electronic representation of work performance information
compiled in project documents, which is intended to generate decisions or raise issues, actions, or
awareness. Examples include status reports, memos, justifications, information notes, electronic
dashboards, recommendations, and updates.
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Project Management Processes and Knowledge Areas
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Project Management Processes and Knowledge Areas
TAILORING
Usually, project managers apply a project management
methodology to their work. A methodology is a system of
practices, techniques, procedures, and rules used by those who
work in a discipline. This definition makes it clear that this
guide itself is not a methodology.
Project management methodologies may be:
 Developed by experts within the organization,
 Purchased from vendors,
 Obtained from professional associations, or
 Acquired from government agencies
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Project Management Processes and Knowledge Areas
Project Management Business Documents
The project manager needs to ensure that the project management approach captures the intent of
business documents. These two documents are interdependent and iteratively developed and
maintained throughout the life cycle of the project.
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Project Management Processes and Knowledge Areas
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Project Management Processes and Knowledge Areas
Project Success Measures
One of the most common challenges in project management is determining whether or not a
project is successful.

What does success look like for this project?

How will success be measured?

What factors may impact success?
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Project Management Processes and Knowledge Areas
Project Influences
Enterprise Environmental Factors
EEFs originate from the environment outside of
the project and often outside of the enterprise.
EEFs may have an impact at the organizational,
portfolio, program, or project level
Organizational Process Assets
OPAs are internal to the organization. These
may arise from the organization itself, a
portfolio, a program, another project, or a
combination of these
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Project Management Processes and Knowledge Areas
Organizational Structure Types
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Project Management Processes and Knowledge Areas
Organizational Structure Types
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Project Management Processes and Knowledge Areas
Functional Organization
Chief
Executive
Functional
Manager
Functional
Manager
Functional
Manager
Staff
Staff
Staff
Staff
Staff
Staff
Staff
Staff
Staff
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Project Management Processes and Knowledge Areas
Projectized Organization
Chief
Executive
Project
Manager
Project
Manager
Project
Manager
Staff
Staff
Staff
Staff
Staff
Staff
Staff
Staff
Staff
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Project Management Processes and Knowledge Areas
Weak Matrix Organization
Chief
Executive
Functional
Manager
Functional
Manager
Functional
Manager
Staff
Staff
Staff
Staff
Staff
Staff
Staff
Staff
Staff
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Project Management Processes and Knowledge Areas
Balanced Matrix Organization
Chief
Executive
Functional
Manager
Functional
Manager
Functional
Manager
Staff
Staff
Staff
Staff
Staff
Staff
Manager
Staff
Staff
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Project Management Processes and Knowledge Areas
Strong Matrix Organization
Chief
Executive
Functional
Manager
Functional
Manager
Functional
Manager
Manager of Project
Managers
Staff
Staff
Staff
Project Manager
Staff
Staff
Staff
Project Manager
Staff
Staff
Staff
Project Manager
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Project Management Processes and Knowledge Areas
Hybrid Organization
Functional
Manager
Chief
Executive
Functional
Manager
Functional
Manager
Manager of Project
Managers
Staff
Staff
Staff
Project Manager
Staff
Staff
Staff
Project Manager
Staff
Staff
Staff
Project Manager
Project B
Coordination
Project Management Introduction
Project A
Coordination
Project Management Processes and Knowledge Areas
Project Management Office
A project management office (PMO) is an organizational structure that standardizes the project-related
governance processes and facilitates the sharing of resources, methodologies, tools, and techniques. The
responsibilities of a PMO can range from providing project management support functions to the direct
management of one or more projects.
Supportive. Supportive PMOs provide a consultative role to projects by supplying templates, best practices,
training, access to information, and lessons learned from other projects. This type of PMO serves as a
project repository. The degree of control provided by the PMO is low.
Controlling. Controlling PMOs provide support and require compliance through various means. The degree
of control provided by the PMO is moderate. Compliance may involve:
- Adoption of project management frameworks or methodologies;
- Use of specific templates, forms, and tools; and
- Conformance to governance frameworks.
Directive. Directive PMOs take control of the projects by directly managing the projects. Project managers
are assigned by and report to the PMO. The degree of control provided by the PMO is high.
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Project Management Processes and Knowledge Areas
Comparison of Leadership and Management
The words leadership and management are often used interchangeably. However, they are not synonymous.
The word management is
more closely associated with
directing another person to
get from one point to
another using a known set of
expected
behaviors.
In
contrast, leadership involves
working with others through
discussion or debate in
order to guide them from
one point to another.
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Project Management Processes and Knowledge Areas
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Project Management Processes and Knowledge Areas
Leadership Styles
Laissez-faire (e.g., allowing the team to make their own decisions and establish their own goals, also referred
to as taking a hands-off style);
Transactional (e.g., focus on goals, feedback, and accomplishment to determine rewards; management
by exception);
Servant leader (e.g., demonstrates commitment to serve and put other people first; focuses on other people’s
growth, learning, development, autonomy, and well-being; concentrates on relationships, community and
collaboration; leadership is secondary and emerges after service);
Transformational (e.g., empowering followers through idealized attributes and behaviors, inspirational
motivation,
encouragement for innovation and creativity, and individual consideration);
Charismatic (e.g., able to inspire; is high-energy, enthusiastic, self-confident; holds strong convictions); and
Interactional (e.g., a combination of transactional, transformational, and charismatic).
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Project Management Processes and Knowledge Areas
Code of Ethics and Professional Conduct
PMI publishes the Code of Ethics and Professional Conduct [5] to instill confidence in the project
management profession and to help an individual in making wise decisions, particularly when faced with
difficult situations where the individual may be asked to compromise his or her integrity or values
The values that the global project management community defined as most important were
responsibility, respect, fairness, and honesty
Project Management Introduction
Project Management Processes and Knowledge Areas
Project
Stakeholder
Management
Project
Integration
Management
Project Scope
Management
Project
Schedule
Management
Project
Procurement
Management
Project
Management
Knowledge
Areas
Project Risk
Management
Project
Communication
Management
Project Management Introduction
Project Cost
Management
Project Quality
Management
Project
Resource
Management
Project Management Processes and Knowledge Areas
Integration management is an element of project management
that coordinates all aspects of a project. Project integration,
when properly performed, ensures that all processes in a project
run smoothly. Integration management will produce a series of
deliverables. These deliverables include the project charter,
project plan, and preliminary project scope statement. Below is
a summary of what project integration management involves.
Project Management Introduction
Project Management Processes and Knowledge Areas
Project Charter
 Planning document which states the
project commitment
 Internal document identifying the
project manager’s authority and
responsibility
 Identifies the scope of the project
 Identifies functional support
responsibilities
 Identifies the project’s priority
Project Management Introduction
Project Management Processes and Knowledge Areas
Project Selection
Two categories:
1.
Benefit measurement methods (Comparative approach)
• Murder board (a panel of people who try to shoot down a new project idea)
• Peer review
• Scoring models
• Economic models (described next)
2.
Constrained optimization methods (Mathematical approach)
• Linear programming
• Integer programming
• Dynamic programming
• Multi-objective programming
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Project Management Processes and Knowledge Areas
Project Selection – Economic Models
•
Present value (PV): The value today of future cash flows
PV 
FV
1 r n
FP = future value
r = interest rate
n = number of time period
•
Net present value (NPV): Project with positive & greater NPV value is better
•
Internal rate of return (IRR): Project with greater IRR value is better
•
Payback period:
• The number of time periods it takes to recover your investment in the project before you start
accumulating profit.
•
Benefit-cost ratio:
• compares the benefits to the costs of different options
• relates to costing projects and to determining what work should be done
• Project with greater benefit-cost ratio value is better
Project Management Introduction
Project Management Processes and Knowledge Areas
Method
Project A
Project B
Selection
Scoring Model
30
34
B
Payback Period
8 Years
9 Years
Benefit Cost Ratio
4
4.5
Net Present Value
AED 20 M
AED 18 M
9%
7%
IRR
Project Management Introduction
A
B
A
A
Project Management Processes and Knowledge Areas
Project Management Plan
The project management plan defines how the project is executed, monitored and controlled, and
closed. The project management plan content will vary depending upon the application area and
complexity of the project.

Requirements Management Plan

Scope management plan

Schedule management plan

Cost management plan

Quality management plan

Process improvement plan

Human Resource management plan

Communication management plan

Risk management plan

Procurement management plan

Stakeholder management plan

Project baselines (include but not limited to scope, schedule and cost baselines)
Project Management Introduction
Project Management Processes and Knowledge Areas
Why Plan?
 To eliminate or reduce uncertainty
 To guide project execution
 To document project planning assumptions, constraints,
and decisions
 To gain a better understanding of the objectives
 To provide a basis for monitoring and controlling work
 To facilitate communication
Project Management Introduction
Project Management Processes and Knowledge Areas
Project
Stakeholder
Management
Project
Integration
Management
Project
Procurement
Management
Project Scope
Management
Project
Schedule
Management
Project
Management
Knowledge
Areas
Project Risk
Management
Project
Communication
Management
Project Management Introduction
Project Cost
Management
Project Quality
Management
Project
Resource
Management
Project Management Processes and Knowledge Areas
Project Scope
"The work that needs to be accomplished
to deliver a product, service, or result
with the specified features and functions
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Project Management Processes and Knowledge Areas
Problems in Defining Objectives
 Objectives not agreeable to all parties
 Objectives too rigid to adapt to changing priorities
 Insufficient time available
 Objectives not adequately quantified
 Objectives not documented thoroughly
 Customers and project personnel do not coordinate efforts
 High personnel turnover
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Project Management Processes and Knowledge Areas
Scope Statement

Provides a documented basis for making project decisions

includes:

-
Project justification
-
Project product
-
Project deliverables
-
Project objectives
Prepare a scope management plan
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Project Management Processes and Knowledge Areas
Work Breakdown Structure WBS
A Deliverable-oriented hierarchical decomposition of the work to be executed by the project team to
accomplish the project objectives and create the required deliverables. It organizes and defines the total
scope of the project. “PMI”

Total program can be described as a
summation of its parts

Planning can be performed

Costs and budgets can be established

Time, cost, and performance can be tracked

Scheduling, tracking, and controlling can be
established

Responsibility for each work package can be
assigned

Risks and issues can be identified
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Project Management Processes and Knowledge Areas
Project Level
New Car Design
Brakes
Engine
Structure
Interior
Sub project Level
Chemical
Mechanical
Electrical
Project Management Introduction
Task Level
Project Management Introduction
Project Management Processes and Knowledge Areas
Project
Stakeholder
Management
Project
Integration
Management
Project
Procurement
Management
Project Scope
Management
Project
Schedule
Management
Project
Management
Knowledge
Areas
Project Risk
Management
Project
Communication
Management
Project Management Introduction
Project Cost
Management
Project Quality
Management
Project
Resource
Management
Project Management Processes and Knowledge Areas
Schedule management is the act or process of planning
and exercising conscious control over the amount of time
spent on specific activities, especially to increase
efficiency or productivity. Time management may be
aided by a range of skills, tools, and techniques used to
manage time when accomplishing specific tasks, projects
and goals complying with a due date.
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Project Management Processes and Knowledge Areas
Project Network Diagram

A schematic display of project activities

Shows the logical relationships
(dependencies) among activities

Drawn from left to right to reflect
project chronology

Often incorrectly referred to as a PERT
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Project Management Processes and Knowledge Areas
WBS 1.0
1.1
1.1.1
1.2
1.1.2
Start
1.2.1
1.1.1
1.2.1
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1.3
1.2.2
1.1.2
1.3.1
1.3.1
Finish
1.2.2
1.3.2
1.3.2
Project Management Processes and Knowledge Areas
ES= Early Start
Critical Path
 Longest path through the network.
ES
Task
EF
EF= Early Finish
 Used to determine the overall duration of the
project.
LS
Dur.
LF
LS= Late Start
 Float or slack less than or equal to 0.
LF= Late Finish
 Shortest time to complete the project.
0
A
5
5
3
5
8
8
0
Start
0
0
C
7
9
0
0
0
2
7
9
9
0
D
9
0
9
9
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B
15
E
20
23
23
23
14
23
23
9
F
21
11
12
23
G
10
33
33
Project Management Processes and Knowledge Areas
Lag Time:
Lead Time:
Modifying a logical relationship to direct a delay in the
successor task
Modifying a logical relationship to direct an
acceleration of the successor task
A
+3
B
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A
- 2.5
B
Project Management Processes and Knowledge Areas
Milestones are:

Activities or tasks of zero duration

Used to show significant project events

Used to show achievement in terms of the task, money, or time.
A milestone chart identifies the scheduled start or completion of major
deliverables and key external interfaces
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Project Management Processes and Knowledge Areas
Gantt Chart
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Project Management Processes and Knowledge Areas
Program Evaluation Review Technique PERT
Task X:
Gantt Chart duration is 7.0 months.
te = a + 4m + b
6
Used to calculate the expected time between events
σ te = b – a
Optimistic time:
5.0 months.
Pessimistic time:
12.0 months.
Most Likely: 7.0 months.
6
Used to calculate the probability of completing the project on
time
te = expected time
a = most optimistic time
b = most pessimistic time
m = most likely time
σ te = standard deviation of the expected time te
Project Management Introduction
Task X:
te = a + 4m + b
6
te = 5 + 4X7 + 12
6
PERT duration is 7.5 months.
Project Management Processes and Knowledge Areas
Not Important
Important
Eisenhower Method
Important / Urgent
Important / Non-Urgent
Do
Plan
Urgent Customer
Quality Issues
Deadline Driven Projects
Not Important / Urgent
Not Important / Non-Urgent
Delegate
Eliminate
Some Phone Calls
Some Emails
Distractions
Urgent
Project Management Introduction
New Opportunity
Strategic Thinking
Improving Systems
Time Waster
Trivia
Non-Urgent
Project Management Processes and Knowledge Areas
Project
Stakeholder
Management
Project
Integration
Management
Project
Procurement
Management
Project Scope
Management
Project
Schedule
Management
Project
Management
Knowledge
Areas
Project Risk
Management
Project
Communication
Management
Project Management Introduction
Project Cost
Management
Project Quality
Management
Project
Resource
Management
Project Management Processes and Knowledge Areas
Cost Management
Project Cost Management includes the
processes involved in estimating,
budgeting, and controlling costs so
that the project can be completed
within the approved budget. “PMI”

Estimate Cost

Determine Budget

Control Costs
Project Management Introduction
Project Management Processes and Knowledge Areas
Type of Estimates
WBS Level
Estimate
Accuracy
When to Use
1
Rough order of
magnitude
+75%, - 25%
Project selection; basic information
available
2, 3
Budget
-10%, +25%
Objective is identifies; resources and
overhead information available
4, 5, 6; All
Definitive
+10%, - 5%
Detailed information available
Project Management Introduction
Project Management Processes and Knowledge Areas
Types of Cost

Direct Cost
Any cost that is identified specifically with a particular final cost objective.

Indirect Cost
Any cost not directly identified with a single, final cost objective (more than one project)

Fixed Cost
Periodic charge that does not vary with business volume
the business volume
Variable Cost - Cost that fluctuates based on

Opportunity Cost
When there is a decision to be made between two opportunities, the opportunity cost is the value /
money forgone for the not doing the project

Lifecycle Costing
Takes into account cost of development of a project and also the cost of supporting during the lifecycle

Sunk Cost
Cost already incurred which cannot be recovered regardless of future events
Project Management Introduction
Project Management Processes and Knowledge Areas
Delphi Technique

Obtain estimates from more than one expert

Developed at The Rand Corporation in 1948
When used: throughout the project life cycle,
when there is a need for expert opinions
Expert provided with specifications and
estimating form
Expert completes the form anonymously
Summary and rationale prepared &
provided to expert
Good for discussion and reaching consensus
No
Consensus
Yes
Project Management Introduction
Project Management Processes and Knowledge Areas
Earned Value Management
Project Management Introduction
Project Management Processes and Knowledge Areas
Project
Stakeholder
Management
Project
Integration
Management
Project
Procurement
Management
Project Scope
Management
Project
Schedule
Management
Project
Management
Knowledge
Areas
Project Risk
Management
Project
Communication
Management
Project Management Introduction
Project Cost
Management
Project Quality
Management
Project
Resource
Management
Project Management Processes and Knowledge Areas
Project Management Introduction
Project Management Processes and Knowledge Areas

Leadership
Project Management Introduction

Negotiation
Project Management Processes and Knowledge Areas

Motivation
Project Management Introduction
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Team Building
Project Management Processes and Knowledge Areas
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Empowerment
Project Management Introduction
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Relationship Management
Project Management Processes and Knowledge Areas
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Communication
Project Management Introduction

Decision Making
Project Management Processes and Knowledge Areas
Virtual Teams
•
Geographical separation of one or more team members
•
Different working hours
•
Temporary reporting structures
•
Multi-corporation or organizational teams
•
Project team is assigned from various parts of the world
•
Project team is not co-located
•
A variation of the matrix structure
Project Management Introduction
Project Management Introduction
Project Management Processes and Knowledge Areas
Maslow's hierarchy of needs
Project Management Introduction
7 Habits of Highly Effective People.
1.
Be Proactive.
2.
Begin with the End in Mind.
3.
Put First Things First.
4.
Think Win/Win.
5.
Seek First to Understand, Then to be Understood.
6.
Synergize.
7.
Sharpen The Saw.
Project Management Introduction
Some people want it to happen, some
wish it would happen, others make it
happen. “Michael Jordan”
Leaders are dealers in hope. “Napoleon”
If I have seen further, it is by
standing on the shoulders of
giants. “Isaac Newton”
Project Management Processes and Knowledge Areas
Project
Stakeholder
Management
Project
Integration
Management
Project
Procurement
Management
Project Scope
Management
Project
Schedule
Management
Project
Management
Knowledge
Areas
Project Risk
Management
Project
Communication
Management
Project Management Introduction
Project Cost
Management
Project Quality
Management
Project
Resource
Management
Project Management Processes and Knowledge Areas
The term Quality management has a specific meaning within many business sectors. This specific
definition, which does not aim to assure 'good quality' by the more general definition (but rather to
ensure that an organisation or product is consistent),
Can be considered to have four main components:

Quality Planning,

Quality Control,

Quality Assurance, and

Quality Improvement
Quality management is focused not only on product/service quality, but also the means to achieve it.
Quality management therefore uses quality assurance and control of processes as well as products to
achieve more consistent quality
Project Management Introduction
Project Management Processes and Knowledge Areas
Project Management Introduction
Project Management Processes and Knowledge Areas
Project Management Introduction
Project Management Processes and Knowledge Areas
Quality
Say
What
You
Do
Project Management Introduction
Do
What
You
Say
Prove
It
Improve
It
Project Management Processes and Knowledge Areas
Project
Stakeholder
Management
Project
Integration
Management
Project
Procurement
Management
Project Scope
Management
Project
Schedule
Management
Project
Management
Knowledge
Areas
Project Risk
Management
Project
Communication
Management
Project Management Introduction
Project Cost
Management
Project Quality
Management
Project
Resource
Management
Project Management Processes and Knowledge Areas
Communications management is the systematic planning,
implementing, monitoring, and revision of all the channels
of communication within an organization, and between
organizations.
Project Management Introduction
Project Management Processes and Knowledge Areas
Project Management Introduction
Project Management Processes and Knowledge Areas
Conflict Resolution Methods
•
Confrontation- problem to be solved by examining
alternatives; requires give-and-take and open dialogue
•
Compromise – some degree of satisfaction to all parties.
•
Smoothing – emphasizing areas of agreement rather
than areas of differences.
•
Forcing – use power to direct solution
•
Avoiding – retreat from actual or potential conflict
•
Collaborating – Incorporating multiple viewpoint and
insights from differing perspectives; lead to consensus
and commitment
Project Management Introduction
Project Management Processes and Knowledge Areas
Assertiveness
Conflict Resolution Methods
Forcing
Collaborating
Confrontation
Compromise
Avoiding
Cooperativeness
Project Management Introduction
Smoothing
Project Management Processes and Knowledge Areas
Blind men and an elephant.
Project Management Introduction
Project Management Processes and Knowledge Areas
Project
Stakeholder
Management
Project
Integration
Management
Project
Procurement
Management
Project Scope
Management
Project
Schedule
Management
Project
Management
Knowledge
Areas
Project Risk
Management
Project
Communication
Management
Project Management Introduction
Project Cost
Management
Project Quality
Management
Project
Resource
Management
Project Management Processes and Knowledge Areas
Risk Management
A risk is not a problem … a problem is a risk
whose time has come.
An uncertain event or condition that, if it
occurs, has a positive or negative effect on a
project’s objectives. “PMI”
Why to “Risk”?
Nothing Ventured, Nothing Gained
Project Management Introduction
Project Management Processes and Knowledge Areas
An uncertain event or condition that, if it occurs, has a
positive or negative effect on a project's objectives
 O P P RT U N I TY
Project Management Introduction
 T H R EAT
Project Management Processes and Knowledge Areas
Project Management Introduction
Project Management Processes and Knowledge Areas
Project Management Introduction
Project Management Processes and Knowledge Areas
Risks and the Project Life Cycle
Probability of Significant Risk
Risks
Amount at
Stake
Concept
Project Management Introduction
Development
Execution
Finish
Project Management Processes and Knowledge Areas
Risk Response Strategies
Strategies for Negative Risks
- Avoid.
- Transfer.
- Mitigate.
- Accept.


Strategies for Positive Risks
- Exploit.
- Share.
- Enhance.
- Accept.
Project Management Introduction
Project Management Processes and Knowledge Areas
Option 1
Airline AAA
Ticket Cost AED 2,000
Arrive on time probability is 90%
If Delayed you will lose a deal worth AED 5,000
Cost of Option 1
= 2,000 + 10% X 5,000 = AED 2,500
Option 2
Airline XYZ
Ticket Cost AED 1,000
Arrive on time probability is 50%
If Delayed you will lose a deal worth AED 5,000
Project Management Introduction
Cost of Option 2
= 1,000 + 50% X 5,000 = AED 3,500
Project Management Processes and Knowledge Areas
Project
Stakeholder
Management
Project
Integration
Management
Project
Procurement
Management
Project Scope
Management
Project
Schedule
Management
Project
Management
Knowledge
Areas
Project Risk
Management
Project
Communication
Management
Project Management Introduction
Project Cost
Management
Project Quality
Management
Project
Resource
Management
Project Management Processes and Knowledge Areas
Project Management Introduction
Project Management Processes and Knowledge Areas
Why Outsource?

To reduce both fixed and recurrent costs

To allow the client organization to focus on its core business

To access skills and technologies

To provide flexibility

To increase accountability
Project Management Introduction
Project Management Processes and Knowledge Areas
Why Outsource?








Assume you can lease an item you need for a project for $150/day. To purchase the item, the investment
cost is $1,000, and the daily cost would be another $50/day.
How long will it take for the lease cost to be the same as the purchase cost?
If you need the item for 12 days, should you lease it or purchase it?
Set up an equation so the “make” is equal to the “buy”
In this example, use the following equation. Let d be the number of days to use the item.
$150d = $1,000 + $50d
Solve for d as follows:
– Subtract $50d from the right side of the equation to get
$100d = $1,000
– Divide both sides of the equation by $100
d = 10 days
The lease cost is the same as the purchase cost at 10 days
If you need the item for 12 days, it would be more economical to purchase it
Project Management Introduction
Project Management Processes and Knowledge Areas
Project Management Introduction
Project Management Processes and Knowledge Areas
Negotiations Techniques

Deadline: imposing a deadline to reach an agreement

Stalling: one party may claim that an agreement cannot be finalized because of his limited authority

Fair and Responsible: a negotiator may claim that the price for a product is equitable because that’s
what another company is paying.

Delay: are useful when tempers are beginning to flare, to divert from a subject, etc. (Ex: arrival of
refreshments, request for recess etc.)

Withdrawal: one party may attack an issue, then retreat

Arbitration: a third party may be brought in when agreement cannot be reached. (out of court
settlement)

Fait Accompli: a party may claim that what is being asked for has already been accomplished and
cannot be changed
Project Management Introduction
Project Management Processes and Knowledge Areas
Project
Stakeholder
Management
Project
Integration
Management
Project
Procurement
Management
Project Scope
Management
Project
Schedule
Management
Project
Management
Knowledge
Areas
Project Risk
Management
Project
Communication
Management
Project Management Introduction
Project Cost
Management
Project Quality
Management
Project
Resource
Management
Project Management Processes and Knowledge Areas
A stakeholder is someone whose interest may be positively or negatively impacted by the project.
•
Project sponsor
•
Project manager
•
Project team members
•
Customers
•
Suppliers and subcontractors
•
End users
Project Management Introduction
Project Management Processes and Knowledge Areas
Key Definitions
•
Authority
Power granted to individuals so they can make final decisions for others to follow
•
Roles
Who does what
•
Responsibility
Who decides what
•
Accountability
Being totally answerable for the satisfactory completion of a specific assignment
Project Management Introduction
Project Management Processes and Knowledge Areas
Sponsor Responsibilities
•
Champion the project
•
Support the project manager
•
Review and approve project plans and budget
•
Solicit management buy-in
•
Resolve cross-functional or policy issues
•
Review and ensure adherence to schedule commitments
•
Provide guidance as required
•
Ensure successful completion of the project
Project Management Introduction
Project Management Processes and Knowledge Areas
Project Manager Responsibilities
•
Planning and scheduling
•
Maintaining the technical/business interface
•
Performance analysis
•
Contract administration
•
Progress reporting
•
Estimating
•
Customer relationship management
•
Procedure writing and administration
•
Trend analysis
•
Communications
•
Logistics management
•
Negotiation
•
Monitoring and control
•
sales
•
Organization and personnel planning
Project Management Introduction
Project Management Processes and Knowledge Areas
Stakeholders Influence
Stakeholders are individuals or organizations that are actively involved in the project, or whose interests
may be affected as a result of project execution or project completion
High
Influence of stakeholders
Cost of changes
Low
Start
Project Management Introduction
Project Time
Finish
Project Management Processes and Knowledge Areas
Stakeholders Influence
Project Management Introduction
Project Management Processes and Knowledge Areas
Why Change Occurs

Users change their mind

Everything is constantly evolving

Additional information is received

Technology changes
Project Management Introduction
Project Management Processes and Knowledge Areas
Managing Change

Identify the change with a Change Request

Assess the change

Receive approval/disapproval

Communication the decision

If approved, implement the change
Project Management Introduction
Project Management Processes and Knowledge Areas
Project Management Introduction
Way Forward
 Training
•
PMI Areas of Knowledge
 Project Management Institute
•
Certified Associate in Project Management (CAPM)
•
Project Management Professional (PMP)
•
Program Management Professional (PgMP)
•
Portfolio Management Professional (PfMP)
•
PMI Agile Certified Practitioner (PMI-ACP)
•
PMI Risk Management Professional (PMI-RMP)
•
PMI Scheduling Professional (PMI-SP)
•
PMI Professional in Business Analysis (PMI-PBA)
 Implement and Practice.
Project Management Introduction
notion.in.ocean@gmail.com
Whatsapp +971 50 4558004
Project Management Introduction
References

Project Management Body of Knowledge – 6th Edition

http://www.pmi.org

http://www.slideshare.net

https://www.Wikipedia.com

Greg Brue, Six Sigma for Managers. McGraw-Hill, 2002.

Peter Drucker, The Essential Drucker. HarperCollins, 2008.

Stephen R. Covey, The 7 Habits of Highly Effective People. Simon & Schuster, 2004.

Tigran Hasic, Principles of Project Management. KTH, 2005

Sun Tzu, The Art of War. 500 B.C.

Wikipedia, various articles
Project Management Introduction
….. Thank You
Project Management
Introduction