Project Management
Unit - 1
What is Project?
A project is a group of “unique”, “interrelated activities” that are
planned and executed in a certain sequence to create a unique product
or service, within a specific time frame, budget and the client’s
specifications.
Project management is the application of the knowledge, skills, tools
and techniques to project activities in order to meet or exceed
stakeholder needs and expectations.
A project is a temporary and one time endeavor undertaken to create a
unique product or service.
This property of being a temporary and one time undertaking contrasts
with processes, or operations, which are permanent or semipermanent ongoing functional work to create the same product or
service over-and-over again.
Definitions
• “A controlled process of initiating, planning, executing, and closing down a
project”.
• “The application of modern management techniques and systems to the
execution of a project from start to finish, to achieve predetermined
objectives of scope, quality, time and cost, to the equal satisfaction of
those involved.”
“Project management is the discipline of defining and achieving targets
while optimizing the use of resources (time, money, people, space, etc).
Thus, it could be classified into several models: time, cost, scope, and
intangibles.”
Characteristics of Projects

A project is temporary.

A project has a unique purpose.

A project requires resources.

A project should have a sponsor.

A project involves uncertainty

A project uses progressive elaboration.
THE LIFE CYCLE
What Is a Life Cycle
A life cycle refers to the phases that a product or service undergoes:
research and development, release, growth, expansion, maturity,
saturation, decline, and retirement. The life cycle covers the lifespan of
a corporate product or service destined for the marketplace, or of an
organizational asset or process destined for use internally by the
corporation
Project Life Cycle
• When the product life cycle refers to an organizational asset or process, it
covers a period from development, through testing and handover to
operational usage.
• Such assets or processes, through their usage, provide operational
capabilities for the corporation. Over time these assets or processes will
evolve and generate modifications and/or improvements until they
become either obsolete or too costly to operate, leading to their
retirement and/or replacement.
Cycle Time
• The ownership(Fund) period concerns the acquisition of the product, service, asset or
process. The period ends when release is made to operations to exploit. Funding will
either be an operational expenditure (OPEX) or a capital expenditure (CAPEX).
• The operations period exploits the product, service, asset, or process. The period ends
with retirement or obsolescence. The operations period is benefit-driven. These
benefits—usage of assets and processes or generated revenues from products and
services—are offset against the cumulative ownership costs and ongoing operational
costs.
PROJECT GOVERNANCE
• Project governance refers to the design and implementation of formal principles, structures, processes, and
communications that need to exist for a successful project program or portfolio of projects.
• Project governance is the framework within which decisions are made on projects
Project Governance:
• Establishes the relationships between all internal and external groups involved in the project
• Describes the flow of project information to all stakeholders
• Ensures the appropriate review of issues encountered within each project
• Ensures that required approvals and direction for the project is obtained at each appropriate stage of the project
Concerns for Project Governance by Management
• The business case—by stating the business benefits to achieve and the objectives of the project, specifying
the in-scope and out- of scope elements
• Identified stakeholders—with an interest in the business case and the project
• The business-level requirements—as agreed by all stakeholders
• A stakeholder communication plan
• Agreement on the project deliverables—and a mechanism to assess the compliance of the completed
project to its original objectives
• An appointed project manager
• Clear project roles and responsibilities assignment—providing a basis for decision-making
• A published project development plan—updated throughout the project phases
• A clear set of processes—to manage risks, issues, scope changes, and quality
• A project review and progress-reporting process—including quality and documentation assessments
• A central repository for the project including a glossary of project terms
BUSINESS DRIVERS AND BUSINESS NEEDS
• A business driver is the root cause or the rationale for developing a new
project. It explains why the project is needed and what expected solution
the project will deliver upon its successful completion. It also provides any
necessary background information about the business problems to be
solved or addressed.
1. Establishing the Business Needs and Initial Scope
 The project must provide sufficient information about the viability of the
project’s business case and the feasibility of its proposed solution.
 Projects must be assessed, evaluated, ranked, and prioritized using a
consistently applied methodology.
 The process must consider the project’s fit with the organizational mission
and strategic plan.
6 Constraints of Projects
The Project Manager
• A boat without a skipper will navigate; however, it may never successfully
reach its destination.
• An organization without management will operate, however, it may never
successfully achieve its objectives.
• A project manager is the individual accountable for accomplishing the
project objectives.
• The overarching responsibility of project managers is the planning,
execution, and closing of the project.
The most significant characteristics of effective project managers are
1.
Convey the corporate goals clearly
2.
Articulate the project directives visibly
3.
Be inspirational
4.
Be decisive
5.
Lead by example
6.
Be a good communicator
7.
Be a good motivator
8.
Be technically competent
9.
Align team members
10. Support team members
11. Encourage innovation and creativity
12. Challenge top management decisions when necessary
Project Organisation
• A project organization structure is a temporary structure designed to manage the
project to its successful conclusion. The structure aims to facilitate the definition,
coordination, and implementation of project activities. A project organization will
be dynamic in size and extent, and will evolve throughout the development life
cycle.
• The structure defines the relationships among members of the project
management and the relationships with the external environment.
Basic Layout of Project Organization
Functional Organization
Functional Project Organization
Project Based Organization
Difference