Concept of Project
Lecture 1
Project Lifecycle
Project Roadmap
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What is a Project?
• Characteristics
• • Projects versus Operational Work
• • Projects and Strategic Planning
*** PMBOK – A Guide to the Project
Management Body of Knowledge
What is a Project?
Characteristics
• A project is a unique endeavor to produce a set
of deliverables within clearly specified
constraints of time, cost and quality
• Projects are different from business operations,
in terms of uniqueness, timescale, budget,
resources, risk and change.
What is a Project?
Characteristics
• Uniqueness. Every project is different from the last, whereas
operational activities typically involve repetitive (if not identical)
processes.
• Timescale. A project has clearly specified start and end dates
within which deliverables are produced to meet the customer's
requirements.
• Budget. A project has a maximum limit to the expenditure within
which the deliverables must be produced, to meet the customer's
requirement.
• Resources. A project is allocated a specified amount of labor,
equipment and materials at the start.
• Risk. A project entails uncertainty and therefore carries business
risk.
• Change. The purpose of a project is typically to improve an
organization through the implementation of business change.
Project versus Operational (1)
• Usually share similar characteristics
– Performed by people
– Constrained by limited resources
– Planned, executed and controlled
• Unlike operational which is ongoing
and repetitive, projects are temporary
and unique
Project versus Operational (2)
• Unique endeavor
• Produce a set of deliverables
• Clearly specified constraints
– Scope
– Time
– Cost
– Quality
Project versus Operational (3)
• Are unique in nature
– No repetitive processes
– Different from last project
• Have defined timescales
– Clear start and end dates
– Meet specified customer requirement
• Have approved budget
– allocated level of financial expenditure
– Meet specified customer requirement
Project versus Operational (4)
• Have limited resources
– labor
– equipment
– Materials
• Involve an element of risk
– level of uncertainty
– carry business risk
• Achieve beneficial change
– Improve an organization
– Implementation of business change
Project versus Strategic Planning
• Usually organized to address areas beyond an
organization's operational limits
• Utilized as a means to achieve an organization's
strategic plans
• Usually authorized as a result or to meet the
following strategic considerations
– Market Demand
– Organizational Need
– Customer Request
– Technological Advance
– A Legal or Regulatory Requirement
Concept of Project
Management
Lecture 2
Why adopt a Project Management
Methodology?
Without using a methodology from the outset:
• Project Teams start building deliverables without defining
the project's scope and objective
• Project roles and responsibilities are unclear, and lines
of communications are undefine
• There are no quality targets set, so it's difficult to know
when deliverables are really finished
• The customer can never be certain of the project's
progress or when it is likely to be complete
• Project Managers must attempt to manage change, risks
and issues "on the fly".
Why adopt a Project Management
Methodology?
By using best practice project management methodology, you will:
• Reduce time spent completing project deliverables
• Decrease cost by saving time and effort to build deliverables
• Minimize change, risks and issues by defining your project properly
before you begin
• Assure quality of deliverables, increasing your likely of meeting the
customer's requirements
• Monitor and control the project more efficiently, especially during
the Execution phase
• Manage suppliers more effectively with comprehensive supplier
contracts
• Improve staff performance by clarifying roles, responsibilities and
delivery expectations Increase the likelihood of overall project
success.
What is Project Management?
• Required
– Skills
– Tools
– Processes
• Undertake a Project successfully
What is Project Management? (1)
(Formal Definitions)
• PMBOK®
"The PMBOK is the sum of knowledge within the
profession of project management that is standardized
by ISO.“
• PRINCE2
"The planning, monitoring and control of all aspects of
the project and the motivation of all those involved in it to
achieve the project objectives on time and to the
specified cost, quality and performance.“
• PROJECT
A temporary endeavour with a finite completion date
undertaken to create a unique product or service.
Projects bring form or function to ideas or needs.
What is Project Management? (2)
(Formal Definitions)
• DIN 69901
"Project management is the complete set of
tasks, techniques, tools applied during project
execution“
• ISO 10006:2003
"Planning, organizing, monitoring, controlling and
reporting of all aspects of a project and the
motivation of all those involved in it to achieve
the project objectives."
Aspects of Project Management
• Skills
• Tools
• Processes
Aspects of Project Management
Skills
• Specialist knowledge
• Skills
• Experience
Aspects of Project Management
Tools
• Various types of tools
– Specialized methodologies
– Computer hardware and software
– Monitoring and Measuring Equipment
– Documentation systems
• Examples
– Document templates
– Records register
– Planning software
– Audit checklist
– Review forms
Aspects of Project Management
Processes
• Management techniques and processes to monitor
and control
– Time
– Cost
– Quality
– Scope
• Examples
– Time management
– Cost management
– Change management
– Risk management
– Issue Management
Knowledge Areas in Project
Management (1)
• Project Integration Management
– Chartering
– Scoping
– Project Plan
– Execution
– Monitoring and Control
– Change Control
– Closure
• Project Scope Management
– Planning
– Scope Definition
– Work Breakdown Structure
– Scope Control
Knowledge Areas in Project
Management (2)
• Project Time Management
– Sequencing
– Resource and Duration Estimating
– Schedule Development and Control
• Project Cost Management
– Estimating
– Budgeting
– Control
• Project Quality Management
– Quality Planning
– Quality Assurance and Control
Knowledge Areas in Project
Management (3)
• Project Time Management
– Sequencing
– Resource and Duration Estimating
– Schedule Development and Control
• Project Cost Management
– Estimating
– Budgeting
– Control
• Project Quality Management
– Quality Planning
– Quality Assurance and Control
Knowledge Areas in Project
Management (4)
• Project Procurement Management
– Plan Purchase and Acquisition
– Supplier Selection
– Contract Administration and Closure
Project Management Triangle
• Time
• Cost
• Scope
Concept of the Triple Constraint
• All project need to be performed and delivered under
certain constraints
• These are scope, time and Cost
• Known as the "Project Management Triangle"
• These factors are interdependent and changes in one
affects the other factors
• These factors directly affect the "fourth constraint" which
is quality
• Sometimes, "Labor" replaces the "Scope“ constraint in
some Project Management models
Concept of the Triple Constraint
Time
The time-related processes aim to determine dependencies
and the duration of activities and to ensure timely
completion of the project.
The time-related processes are:
- Planning of activity dependencies
- Estimation of duration
- Schedule of development
- Schedule control
…addresses the issues of “overtime” and “delays”
Concept of the Triple Constraint
Cost
The cost-related processes aim to forecast and manage
the project costs. This should ensure that the project is
completed within budget constraints, and that cost
information can be provided to the originating
organization.
The cost-related processes are:
- Cost estimation
- Budgeting
- Cost control
…addresses the issues of “over costs” and
“deficits”
Concept of the Triple Constraint
Scope
• Overall definition of what is to be
accomplished
• Specific description of the end results
(e.g. quality)
• Sometimes, replaced or synonymous with
Specification.
…addresses the issues of “scope creep”
and “under scope”
Project Management Activities (1)
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Analysis and design of objectives and events
Planning the work according to the objectives
Assessing and controlling risk (or Risk Management)
Estimating resources
Allocation of resources
Organizing the work
Acquiring human and material resources
Assigning tasks
Directing activities
Controlling project execution
Tracking and reporting progress
Project Management Activities (2)
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Analyzing the results based on the facts achieved
Defining the products of the project
Forecasting future trends in the project
Quality Management
Issues management
Issue solving
Defect prevention
Identifying, managing & controlling changes
Project closure (and project debrief)
Communicating to stakeholders
Increasing / decreasing a company's workers
Overall Project Objectives (1)
Overview
– Project objectives define targets and
performance indicators for specific target
deliverables at the end of the project.
Overall Project Objectives (1)
SMA[A]RT[ER] Criteria
• Specific (or Significant, Stretching, Simple)
• Measurable (or Meaningful, Motivational,
• Manageable)
• Achievable (or Agreed, Attainable, Assignable,
• Appropriate, Actionable, Action-oriented)
• [Acceptable]
• Realistic (or Relevant, Results-oriented,
• Resourced, Rewarding)
• Time-bound (or Timely, Time-Specific, Trackable)
• [Ethical] (or Exciting, Evaluated)
• [Recorded] (or Rewarding, Reviewed)
Overall Project Objectives (2)
DUMB Criteria
• Doable
• Understandable
• Manageable
• Beneficial
Usual Outputs / Deliverables (1)
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Project Charter
Preliminary Scope Statement / Statement of work
Business case / Feasibility Study
Scope Statement / Terms of reference
Project management plan / Project Initiation
Document
Work Breakdown Structure
Change Control Plan
Risk Management Plan
Risk Breakdown Structure
Communications Plan
Governance Model
Risk Register
Issue Log
Usual Outputs / Deliverables (2)
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Action Item List
Resource Management Plan
Project Schedule
Project Status Report
Responsibility assignment matrix
Database of lessons learned
Stakeholder Analysis
Document Management
External Factors
• Risk
– Often defined as potential points of failure
– Usually associated with "negative" events
– Can also be categorized as "positive" events (e.g.
optimization risk, faster completion rates)
• Customers
– Either internal (e.g. persons/groups in the organization) or
external (e.g. customer, agencies or regulators)
– May dictate the time, cost and scope of the project
– Area of negotiation and balancing of resources versus client
requirements
External Factors
• Suppliers
– Either internal (e.g. persons/groups in
the organization) or external (e.g. approved
supplier, client supplied)
– Usually a very critical area for
monitoring
– Relationship with suppliers is usually
the "key”
Sample Approaches
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General Types / Classifications
Traditional / Standard Methodology
Ad-Hoc Methodology
Non-Traditional Methodology
Process-based Methodology
Industry-initiated Methodology
Sample Approaches
General Types / Classification
• Regardless of the name, specific aspects of
the methodology, features… all approached
can be classified under these types:
– Linear (e.g. Waterfall)
– Prototyping (small, quick and dirty)
– Incremental (e.g. SCRUM)
– Spiral (cyclical, iterative, build-up)
– Rapid Application Development (e.g.
Agile)
Sample Approaches
Traditional /Standard Methodology
• PMBOK Guide
• PRINCE2 (PRojects IN Controlled
Environments Ver. 2)
• Standard "Waterfall"-type methods
• System Development Life Cycle (SDLC)
Sample Approaches
Ad-Hoc Methodology
• Non-formal methodology
• "Sari-sari store" methodology
• Action-oriented Entrepreneurship
Sample Approaches
Non-Traditional Methodology
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Joint Application Development (JAD)
Agile Software Development
Rapid Application Development (RAD)
Dynamic Systems Development Method
(DSDM)
• Extreme Programming (XP)
• SCRUM
Sample Approaches
Process-based Methodolgy
• ISO 9001:2000 / ISO 10006:2003 CMMI
Ver.1.2
– CMMI for Developers (CMMI-DEV)
– CMMI for Acquisition (CMMI-ACQ)
– CMMI for Service (CMMI-SVC)
• ISO/IEC 15504 Series (9 parts)
– Software Process Improvement and
Capability Determination
Sample Approaches
Industry Methodology
• RUP (Rational Unified Process)
– Developed by Rational Software (a
part of IBM)
• OpenUP (Open Unified Process)
– Based on RUP, part of Eclipse
Process Framework
Components of Project
Management
• Project Management System
– Formal management system
– Core of any project organization
– With aspects for management, monitoring and
control of project processes
– Start and end of any project endeavour
• Project Stages
– Initiation
– Planning and Design
– Execution
– Closure
Sample PM Tools
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Financial Estimation Tools
Quality Control Tools
Scheduling Tools
Resourcing Tools
Software Tools
– Open Source
– Proprietary
Sample PM Tools
Financial Estimation Tools
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Job Cost Accounting
Predictive Analysis
Reference Class Forecasting
Value Engineering
Sample PM Tools
Quality Control Tools
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Ishikawa diagram
Pareto diagram
Check sheet
Control chart
Flowchart
Histogram
Scatter diagram
Sample PM Tools
Scheduling Tools
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PERT / CPM
GANTT
Event Chain chart
WBS
Sample PM Tools
Resourcing Tools
• RACI Diagrams / Matrix
• Participatory Impact Pathways Analysis
Sample PM Tools
Open Source Software Tools
• Open-source Desktop
– GanttProject
– OpenProject
– OpenWorkbench
• Open-source Web-based
– eGroupWare
– dotProject
– Project.net
Sample PM Tools
Proprietary Software Tools
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Commercial Desktop
– Artemis
– InLoox
– Planisware 5
– Primavera Project Planner
– RationalPlan
Commercial Web-based
– @task
– Clarity
– Daptiv
– Genius Inside
– OpenAir
– Planisware OPX2
– Teamwork
Standards and References
• PMBOK Guide, 3rd Edition
– A Guide to the Project Management Body of
Knowledge
• PRINCE2 (OGC-UK)
– PRojects IN Controlled Environments
• VEE-Model (German)
– Systems development model designed to simplify
the understanding of the complexity associated with
developing systems.
– In systems engineering it is used to define a
uniform procedure for product of project development.
Standards and References
• HERMES Ver.2003 (Swiss)
– Based on the VEE-model, and specific for ICT projects
• OPM3 (PMI)
– Organizational Project Management Maturity Model
• ISO 9001:2000 / ISO 10006:2003
– Quality Management Systems - Guidelines for quality
management in projects
• CMMI (CMU-SEI)
– Capability Maturity Model Integration
• TCM Ver.2006 (AACE)
– Total Cost Management
• Method 123 Project Management Methodology (MPMM)