Project
Management
ENGI10025 - Module 2
What is a project

A Project is “a temporary endeavor undertaken to create a unique product
service, or result.”
•
Temporary
•
Unique purpose
•
Progressive elaboration
•
Requires Resources
•
Customer or sponsor
•
Uncertainty
2
Project Management – Knowledge Areas
1.
Scope management
2.
Time management
3.
Cost management
4.
Quality management
5.
Human Resource management
6.
Communication management
7.
Risk management
8.
Procurement management
9.
Stakeholder Management
10.
Project Integration Management
*47 Key Project Management Processes
related to these Knowledge Areas
3
Project Management – Knowledge Areas

Scope Management: involves working with all appropriate stakeholders to
define, and manage all the work required to complete the project successfully.

Time management: includes estimating how long it will take to complete the
work, and ensuring timely completion of the project.

Cost management: consists of preparing and managing the budget for the
project.

Quality management: ensures that the project will meet all requirements.

Human Resource management: organize and manage project team
4
Project Management – Knowledge Areas

Communication management: concerns appropriate generation, collection,
distribution, and storage of project information

Risk management:includes identifying, analyzing, and responding to risks
related to the project.

Procurement management: describes the process for purchasing product, or
service.

Stakeholder management: Managing needs and expectations of all the
stakeholders (customers, managers, etc…)

Project Integration: Integrating and coordinating all other knowledge areas
5
Project Scope
Specifically defines what will be done, what will not be done.
Project limitations:

Results



Time Frame

Dates by which certain results must be produced

Other project limitations have a bearing on time frame
Resources


The Products and Impact of the project
Everything needed to perform project: People, funds, equipment, raw materials, facilities,
information, etc …
Activity Performance

Strategies and methods of performing the different tasks
6
Project Time Management

Project time management involves the processes
required to ensure timely completion of a project.

Create Milestone list

Milestone is a significant event in
project and it takes several tasks
to complete a milestone. A
milestone is a marker and no cost
or resources associated with it.
7
Project Schedule

Activity sequencing

Activity resource estimating

Activity duration estimation

Usually presented in the Gantt Chart format.
8
Cost Management

The processes required to ensure that a project team completes a
project within an approved budget.

Cost Estimation involves: labour, material, equipment, services,
facilities, risk,…

Cost estimation tools:
•
Top-down estimates: use the actual cost of a previous, similar project as
the basis for estimating the cost of the current project.
•
Bottom- up estimates: involve estimating individual activities and
summing them to get a project total.
9
Direct and Indirect Cost


Direct Costs
•
Expenditures for resources used solely to perform project tasks
•
Include: Salaries, materials, supplies, and equipment, travel, and subcontracting
Indirect Costs
Expenditures incurred to support project activities include:
•
Overhead Costs: for activities which are difficult to subdivide and allocate
directly, e.g. employee benefits, office space rent, and supplies
•
General and Administrative Costs: expenditure that keep the organization
operational, e.g. accounting and legal services
10
Project cost example
11
Risk Management
Risk is an uncertainty that can have a negative or positive effect on meeting
project objectives.

Identifying risks: determining project risks and documenting their
characteristics

Risk Analysis

Qualitative: characterizing and analyzing risks and prioritizing their effects on
project objectives

Quantitative: measuring the probability and consequences of risks

Response planning: taking steps to enhance opportunities and reduce threats
to meeting project objectives

Monitoring and Control: monitoring known risks, identifying new risks,
reducing risks, and evaluating the effectiveness of risk reduction
12
Procurement management

The process to purchase or acquire the products or services needed
from outside the project.

Make or buy analysis

Supplier evaluation matrix
Criteria
Weight
Supplier 1
Supplier 2
Supplier 3
Cost
30%
90
70
80
Horse power
20%
80
100
85
Fuel efficiency
20%
90
60
70
Average maintenance
10%
90
70
70
Insurance
15%
80
70
100
Resale price
5%
70
50
90
Total
100%
85.5
70
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81.5
Project Management as a Career
Being a Project Manager:
Senior career path
People-person job - extrovert
Desk job, some travel
Project Management Institute – Global Institution
PMP – Project Management Professional designation
- 36 Hours of Classroom Training
- 4500 Hours of Direct Project Management Experience
- PMI 200 MC Questions, requires 200+ hours of study
- Requires periodic professional development / education to maintain
14
$80,000 - $250,000+ Salary