PPM Lecture 1 – Project, Operational Work, Strategic Planning

CE 408T
Engr. Faisal-ur-Rehman
Presentation Outline
• Definition of Project and Project Management
• Project vs Operational Work vs Strategic
• Area of Expertise and its Description
• Project Management Context
– Program, Portfolio, Subproject and PMO
• Project Life Cycle
• Project Stakeholder
• Organization System
• Definition of Project
• Definition of Project Management
Project vs Operational Work
• They share many of the following
– Performed by people
– Constrained by limited resources
– Planned, executed, and controlled.
• Projects and operations differ primarily in that
operations are ongoing and repetitive, while
projects are temporary and unique.
Project vs Operational Work
• The objectives of projects and operations are fundamentally
different. The purpose of a project is to attain its objective and then
• Conversely, the objective of an ongoing operation is to sustain the
business. Projects are different because the project concludes when
its specific objectives have been attained, while operations adopt a
new set of objectives and the work continues.
• Projects are undertaken at all levels of the organization and they
can involve a single person or many thousands. Their duration
ranges from a few weeks to several years.
• Projects can involve one or many organizational units, such as joint
ventures and partnerships.
Project vs Operational Work
• Examples of projects include, but are not limited to:
– Developing a new product or service
– Effecting a change in structure, staffing, or style of an
– Designing a new transportation vehicle
– Developing or acquiring a new or modified information
– Constructing a building or facility
– Building a water system for a community
– Running a campaign for political office
– Implementing a new business procedure or process
– Responding to a contract solicitation.
Projects and Strategic Planning
• Projects are a means of organizing activities
that cannot be addressed within the
organization’s normal operational limits.
Projects are, therefore, often utilized as a
means of achieving an organization’s strategic
plan, whether the project team is employed
by the organization or is a contracted service
Area of Expertise Needed
The Project Environment
• There are social, economic, and
environmental context for a Project
• They have intended and unintended positive
and/or negative impacts. The project team
should consider the project in its cultural,
social, international, political, and physical
environmental contexts.
The Project Environment
Cultural and social environment. The team needs to understand how the project
affects people and how people affect the project.
– This may require an understanding of aspects of the economic, demographic, educational,
ethical, ethnic, religious, and other characteristics of the people whom the project affects or
who may have an interest in the project.
International and political environment. Some team members may need to be
familiar with applicable international, national, regional, and local laws and
customs, as well as the political climate that could affect the project.
– Other international factors to consider are time-zone differences, national and regional
holidays, travel requirements for face-to-face meetings, and the logistics of teleconferencing.
Physical environment. If the project will affect its physical surroundings, some
team members should be knowledgeable about the local ecology and physical
geography that could affect the project or be affected by the project.
General Management Knowledge and
General management encompasses planning, organizing, staffing, executing, and
controlling the operations of an ongoing enterprise. It includes supporting
disciplines such as:
Financial management and accounting
Purchasing and procurement
Sales and marketing
Contracts and commercial law
Manufacturing and distribution
Logistics and supply chain
Strategic planning, tactical planning, and operational planning
Organizational structures, organizational behavior, personnel administration,
compensation, benefits, and career paths
Health and safety practices
Information technology.
Interpersonal Skills
The management of interpersonal relationships includes:
• Effective communication. The exchange of information
• Influencing the organization. The ability to “get things done”
• Leadership. Developing a vision and strategy, and motivating
people to achieve that vision and strategy
• Motivation. Energizing people to achieve high levels of
performance and to overcome barriers to change
• Negotiation and conflict management. Conferring with others to
come to terms with them or to reach an agreement
• Problem solving. The combination of problem definition,
alternatives identification and analysis, and decision-making.
Project Management Context
• Programs and Program Management
– A program is a group of related projects managed
in a coordinated way to obtain benefits and
control not available from managing them
individually .
– Programs may include elements of related work
outside of the scope of the discrete projects in the
program. For example: ????
Project Management Context
• Portfolios and Portfolio Management
– A portfolio is a collection of projects or programs and
other work that are grouped together to facilitate
effective management of that work to meet strategic
business objectives.
– The projects or programs in the portfolio may not
necessarily be interdependent or directly related.
– Funding and support can be assigned on the basis of
risk/reward categories, specific lines of business, or
general types of projects, such as infrastructure and
internal process improvement.
Project Management Context
• Subprojects
– Projects are frequently divided into more
manageable components or subprojects, although
the individual subprojects can be referred to as
projects and managed as such.
– Subprojects are often contracted to an external
enterprise or to another functional unit in the
performing organization.
Project Management Context
• Project Management Office
– A project management office (PMO) is an
organizational unit to centralize and coordinate
the management of projects under its domain.
– Features???
Project Life Cycle
• Project life cycles generally define:
• What technical work to do in each phase (for example,
in which phase should the architect’s work be
• When the deliverables are to be generated in each
phase and how each deliverable is reviewed, verified,
and validated
• Who is involved in each phase (for example,
concurrent engineering requires that the implementers
be involved with requirements and design)
• How to control and approve each phase.
Project Life Cycle
• Project life cycle descriptions can be very general or
very detailed. Highly detailed descriptions of life cycles
can include forms, charts, and checklists to provide
structure and control. Most project life cycles share a
number of common characteristics:
– Phases are generally sequential and are usually defined by
some form of technical information transfer or technical
component handoff.
– Cost and staffing levels are low at the start, peak during
the intermediate phases, and drop rapidly as the project
draws to a conclusion. Figure 2-1 illustrates this pattern.
Project Life Cycle
Project Life Cycle
Project Life Cycle
Relationship Between the Product and
the Project Life Cycles
Project Stakeholders
Project Stakeholders
• Project manager. The person responsible for managing the
• Customer/user. The person or organization that will use the
project’s product. There may be multiple layers of customers. For
example, the customers for a new pharmaceutical product can
include the doctors who prescribe it, the patients who take it and
the insurers who pay for it. In some application areas, customer and
user are synonymous, while in others, customer refers to the entity
acquiring the project’s product and users are those who will directly
utilize the project’s product.
• Performing organization. The enterprise whose employees are
most directly nvolved in doing the work of the project.
• Project team members. The group that is performing the work of
the project.
Project Stakeholders
• Project management team. The members of the project
team who are directly involved in project management
• Sponsor. The person or group that provides the financial
resources, in cash or in kind, for the project.
• Influencers. People or groups that are not directly related
to the acquisition or use of the project’s product, but due
to an individual’s position in the customer organization or
performing organization, can influence, positively or
negatively, the course of the project.
• PMO. If it exists in the performing organization, the PMO
can be a stakeholder if it has direct or indirect responsibility
for the outcome of theproject.
Project Stakeholders
• In addition to these key stakeholders, there are many different names and
categories of project stakeholders, including internal and external, owners
and investors, sellers and contractors, team members and their families,
government agencies and media outlets, individual citizens, temporary or
permanent lobbying organizations, and society-at-large.
• The naming or grouping of stakeholders is primarily an aid to identifying
which individuals and organizations view themselves as stakeholders.
• Stakeholder roles and responsibilities can overlap, such as when an
engineering firm provides financing for a plant that it is designing.
• Project managers must manage stakeholder expectations, which can be
difficult because stakeholders often have very different or conflicting
Organization System
• Organizations that derive their revenue
primarily from performing projects for others
under contract. e.g???
• Organizations that have adopted management
by projects. These organizations tend to have
management systems in place to facilitate
project management.
Organizational Structure and its