PROJECT MANAGEMENT
CONCEPTS
Lt Col L Shri Harsha,
PMP
OBJECTIVES
• Create awareness of the concepts of Project
Management and its importance
• Understand the various tools available to a
Project Manager to perform his duties
effectively
• Highlight the areas of the application of these
concepts during the execution of projects
Importance of Project Management
• Getting things done in the correct manner
• Planned and prioritized work distribution and
accomplishment
• Identification of key process bottlenecks and
suggested preventive actions
• Project management process improvement
• Improved risk management
• Standardized reports, templates, processes
and lexicon
What is a Project ?
When task(s),
 Has a defined objective
 Has a deadline
 Requires integration of
knowledge and experience
from various organizations
What is a Project ?
How Temporary?
 Has a definite beginning and end, not an on-going effort
 Ceases when objectives have been attained
 Team is disbanded upon project completion
Unique?
 The product or service is different in some way from other
product or services
 Product characteristics are progressively elaborated
Project Characteristics
 Goal (measurable/verifiable) Oriented
 Finite duration with a beginning and end
 Uniqueness to a great extent and related uncertainties
 Coordinated undertaking of interrelated activities
 Performing the activities involve resources
 Resources cost money
How are Projects different from Operations?
Projects
Operations
– Create own charter,
organization,
– and goals
Semi-permanent
charter, organization,
and goals
– Catalyst for change
Maintains status quo
– Unique product or
service
– Heterogeneous teams
– Start and end date
Standard product or
service
Homogeneous teams
Ongoing
Project Failure
 Poor communication
 Insufficient resource planning
 Unrealistic schedules & poor duration estimation
 Poor project requirements
 Lack of stakeholder buy-in & no accountability
 Undefined project success / closure criteria
 Unrealistic budgets
 No risk planning
 Lack of change control process
 Lack of executive support
 Resource attrition
 Lack of synchronization
Project Success
 Executive management support
 User involvement (optimum)
 Realistic expectations
 Clear statement of requirements
 Proper documentation
 Public exposure
 Competitive & Budgetary pressure
Project Life Cycle
PROJECT
PHASE 1
PHASE 2
PHASE 3…
PHASE ‘n’
•
Each phase is marked by one or more tangible verification
work product referred to as deliverable
•
The conclusion of a project phase is generally marked by a
review
•
The phase reviews are often called phase exits, stage gates,
or kill points
Typical Life Cycle of Project
Executing
Processes
Level
Of
Initiating
Processes
Planning
Processes
Closing
Processes
Activity
Controlling Processes
Phase
Start
Time
Phase
Finish
Characteristics of a Life Cycle
Opportunity to add Value
High
Low
Cost to make change
Life Cycle of Project (Time)
Triple Constraint Theorem
Balancing SCOPE, COST and
TIME within the frame work of
QUALITY*
* meeting customer requirements
Risk and customer satisfaction are also
factors that often gets included in the
perspective.
Harold Kerzner
Project Management
The application of knowledge, skills, tools, and techniques
to project activities in order to meet or exceed
stakeholder needs and expectations
Project Stakeholders
Individuals and organizations Involved in or affected by the
project outcome
Key Stakeholders : Generic
Key Stakeholders : X Firm
•
Project Manager
•
Project Manager
•
Customer/User
•
Customer / User
•
Performing Organization
•
Project Team Members
•
Project Team Members
•
Functional Departments
•
Project Management Team
•
Sales, BSG, Finance
•
Sponsors
•
Business Partners
•
Influencers
•
Subsidiaries & Sister Concerns
•
Vendors and Suppliers
Project Management Concept
 Program – Consists of a group of projects supporting
broad, general goals and managed in a coordinated way
 Project Portfolio Management
Collection of projects or programs and other work that are
grouped together to facilitate effective management of
that work to meet strategic business objectives
 Subprojects – Components of a project that are often
contracted out
 Project Management Office (PMO)
 A PMO sometimes also referred as Program Management
Office is an organization to centralize and coordinate the
management of projects under its domain
Project Management Office Support
 Shared and coordinated resources
 Identification and development of project management
methodology, best practices, and standards
 Clearinghouse and management for project policies,
procedures, templates, and other shared documentation
 Central office for operation and management of project
tools
 Central coordination of communication management
across projects
 Coordination of overall project quality standards
Project Management Philosophy
The “Golden Rule” of Project Management is three
words:
-Plan
-Organize
-Control
Project Initiation
Project Initiation
 Conduct Project Selection Methods
 Define Scope
 Document Project Risks, Assumptions, and
Constraints
 Identify and Perform Stakeholder Analysis
 Develop Project Charter
 Obtain Project Charter Approval
Project Charter – Project Managers
Responsibilities
•
Define goals, objective, milestones
•
Determine requirements
•
Determine ground rules and assumptions
•
Identify time, cost and performance constraints
•
Determine operating procedures, administrative policies
•
Identify reporting requirements
Goals vs. Objective
Goals are broad
Goals are general intentions
Goals are intangible
Goals are abstract
Goals can't be validated as is
Objectives are narrow
Objectives are precise
Objectives are tangible
Objectives are concrete
Objectives can be validated
Objectives are SMART
• Specific
• Measurable
• Assignable
• Realistic
• Time related
Managing Stakeholder Expectations
Stakeholder
Customer
Organization
Employee
Shareholder
Expectations
When can I get the product?
What are the features that exists (that I want eliminated now)?
What are the additional feature desired?
How much I would have to pay?
When can I get the product out?
What is the quantum of work involved?
How many people would this project need (skill level)?
What would be their utilization/availability on this project?
How much would the cost/ investment for resources be?
What is my role and the job/task specifications in this project?
What learning opportunity/new skill will I get from this project?
What is the company doing to minimize overheads & maximize profits?
What are the efforts and direction for new avenues of business this year?
How does this company compare with and stay ahead of competition?
Project Planning
Project Planning
• Develop Project Scope
• Define Project Phases
• Develop WBS
• Define Activity List & Sequence Activities
• Create Project Network Diagram
• Perform Critical Path Analysis
• Perform Cost Estimation
• Perform Resource Planning
Key Tasks
• Plan Project Team Organization
•
•
•
•
•
Create RAM
Identify Project Risks and develop Risk Reponses
Develop Project Management Plan
Baseline the Project Management Plan
Setting up Change Control Mechanism
Benefit of Planning
Do/Undo/Redo
Plan
Complete
Start
Plan
Start
Execute
Benefit of Planning
Complete
Project Scope
What is the WORK we are supposed to do to
deliver the final service / product to the
customer?
Product Scope
The features and functionalities that categorize
a product or service
4 Commandments for Good Project Scope
Written
Well defined
Clearly understood
Achievable
Create Work Breakdown Structure
1. Highest level: refers to the entire project
2. Second level: breaks the project into its major
sub- projects/phases
3. Third level:




Identify the deliverables for each subproject/phase
Identify the activities and tasks that are required to produce
each deliverables
Lowest level breakup called work packages can be
scheduled, cost estimated, monitored and controlled
Identifies track able units of work which are assigned to
individual members of the project team
WBS Example
Schedule Management
 Create the Activity List
 State the Activity Relationships
 State the Resource Requirements
 Estimate the Activity Duration
 Create Project Schedule
Prepare Network Diagram
Project schedule network diagrams are schematic displays
of the project’s schedule activities and the logical
relationships among them, also referred to as
dependencies.
Precedence Diagramming Method (PDM)
Also known as Activity on Nodes (AON)
Arrow Diagramming Method (ADM)
Also known as Activity on Arrow (AOA)
Cost Estimating
Developing an
approximation of the costs
of the resources needed to
complete project activities.
Cost Estimating
Analogous estimating
Bottom Up Estimating
Parametric Estimating
Customer Relations
 Develop Communication
 Ensure Timely Participation
 Include the Customer on the
Project Team
 Develop Trust and Confidence
Team Requirements
• Skills needed ?
• Individuals identified ?
• When are they needed ?
• Where are they ?
• Training needed ?
• Interpersonal compatibility ?
Risk Identification
Technical
Financial
Socio-Economic
Project management
Contractual
Risk Response Plan
 Avoid
 Mitigate
 Transfer
 Accept
 with contingency
 without contingency
 Share
 Enhance
 Exploit
Project Management Plan
 Project scope management plan
 Schedule management plan
 Staffing management plan
 Communication management plan
 Risk management plan
 Procurement management plan
 Milestone list
 Resource calendar
 Schedule baseline
 Cost baseline
 Risk register
Project Execution
Project Execution
Project Execution process requires
the project manager and the
project team to perform multiple
actions to execute the project
management plan to accomplish
the work defined in the project
scope statement.
Project Execution Major Activities
 Expend effort and spend funds to accomplish the project objectives
 Staff, train, and manage the project team members assigned to the
project
 Obtain quotations, bids, offers, or proposals as appropriate
 Select sellers by choosing from among potential sellers
 Obtain, manage, and use resources including materials, tools,
equipment, and facilities
 Implement the planned methods and standards
Project Execution Major Activities (Cont)
•
Create, control, verify, and validate project deliverables
• Manage sellers
•
Adapt approved changes into the project’s scope, plans, and
environment
•
Establish and manage project communication channels, both
external and internal to the project team
• Collect project data and report cost, schedule, technical and quality
progress, and status information to facilitate forecasting
• Collect and document lessons learned, and implement approved
process improvement activities
Project Controlling
Project Controlling
The Monitor and Control Project Work process is
performed to monitor project processes
associated with initiating, planning, executing,
and closing.
Project Controlling
• Data Collection & Status Reporting
• Project Monitoring & Tracking
• Earned Value Analysis
• Variance Analysis
Benefits of Tracking the Project
 Provides clear indication of progress
 Keeps everyone informed
 Encourages the addressing of
problems
 Provides credible completion
estimates
Basic Elements of Control System
 A project plan: Scope, schedule, estimates
 A monitoring system which measures performance against
plan
 A reporting system which identifies deviations from the plan
 A system which communicates deviations to the right people
 Corrective actions
 Forecasting the project outcome
Elements of Schedule Control
 Establish the baseline (estimate)
Measure variation from baseline
Take corrective action
Schedule Tracking
4 Key Questions to be asked
 Did the task start?
 If yes, on what date?
 What date will the task finish?
 If finished, on what date did it
finish?
Project Closure
Project Closure
The Close Project process involves
performing the project closure portion of
the project management plan
Project Closure – Major Activities
 Obtain Client Acceptance
 Shut down project operations
 Create Project Closure Document
 Learn from the project experience – Lessons
Learned
 Release resources
 Handover to the Support / Operations Team
Perform a Closeout Review
 A close out review should highlight both what
went right and what went wrong
 Both are essential for continuous
improvement
 Exploit the successes and identify the
elements which contributed to the success
 Avoid the problems in the future and identify
processes that need to be defined,
redefined and improved
 Key Learning's can be valuable for the next
project
Project Management - Getting Things
Done
 Less
overall project cost
 Timely project completion
 Effective use of resources
 Improved risk management
 Identification of key process bottlenecks
and suggested preventive actions
 Higher quality of the final product
 Standardized reports, templates,
processes and lexicon
Thank you