Chapter 1 Conceptual Framework of Project Management

Discuss the difference between project, program, business plan, feasibility study Explain what a project is, provide list various attributes of projects, and discuss the triple constraint of project management Describe project management and key elements of the project management framework
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What are differences?

Business plan, feasibility or feasibility studies can be confused with the project. Business Plan - a statement of the organization at a time, in a competitive environment - seeks possible investment. Feasibility studies - justify the need / opportunity of financing an investment or to pursue it. Types: economic, technical, environmental, etc. Both could be part of the project
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What are differences?

Project

- an idea to improve the state of things. Project management - resource management for planning and performing a set of activities to deadlines. Program - the relationship between whole and part, program is entire and the project is part. Program - a group of related projects managed by a particular rule => greater benefits than if it were managed them separately.

 Better

control of financial, physical, and human resources Improved customer relations Shorter development times Lower costs Higher quality and increased reliability Higher profit margins Improved productivity Better internal coordination Higher worker morale
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project is a temporary effort undertaken to create a unique product, service, or result.* from current business operations. Operations is work done to keep up the business. end when their objectives have been reached or the project has been terminated.

Different

Projects

*Project Management Institute, Inc., A Guide to the Project Management Body of Knowledge (PMBOK Guide, Third Edition) (2004), p. 5.
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Types of projects

Internal project organizations:

Proposals from employees for leader Often, does not require to fill an application form Proposals from organizations for sponsors (organization, governmental institutions, international funds etc.) In most cases, require to fill an application form Personal ideas or opportunities May or may not require to fill an application form

Projects with funding from outside organizations:

Personal Projects:

A project: Has a unique purpose. Is temporary. Is developed using progressive elaboration or in an iterative fashion. Requires resources, often from various areas. Should have a primary customer or sponsor. The project sponsor usually provides the direction and funding for the project. Involves uncertainty. A good project manager is crucial to a projects success.
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Every project is constrained in different ways by its: Scope: What work will be done as part of the project? What unique product, service, or result does the sponsor expect from the project? Time: How long should it take to complete the project? What is the projects schedule? Cost: What should it cost to complete the project? What is the projects budget? It is the project managers duty to balance these three often competing goals.

It may be good enough to hit the target, or range, of triple constraint goals, but not the bulls-eye. Its important to determine which aspects of the triple constraint are the most important. Also, is talking about the quadruple constraint includes quality as well as scope, time, and cost.

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Project quadruple constraints

Cost

Performance (scope) Client/sponsor satisfaction (quality) Time Performance Performance expected

Target

Cost Oprea, D., Managementul proiectelor. Teorie si cazuri practice (2001) Time Budget Limit End time
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Project management is the application of knowledge, skills, tools, and techniques to project activities to meet project requirements.*

*Project Management Institute, Inc., A Guide to the Project Management Body of Knowledge (PMBOK Guide, Third Edition) (2004), p. 8.
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Project Management Framework

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Four core knowledge areas lead to specific project objectives. Project scope management involves defining and managing all the work required to complete the project successfully. Project time management includes estimating how long it will take to complete the work, developing an acceptable project schedule, and ensuring timely completion of the project. Project cost management consists of preparing and managing the budget for the project. Project quality management ensures that the project will satisfy the stated or implied needs for which it was undertaken.

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Four facilitating knowledge areas are the means through which the project objectives are achieved. Project human resource management is concerned with making effective use of the people involved with the project. Project communications management involves generating, collecting, disseminating, and storing project information. Project risk management includes identifying, analyzing, and responding to risks related to the project. Project procurement management involves acquiring or procuring goods and services for a project from outside the performing organization. One knowledge area (project integration management) affects and is affected by all of the other knowledge areas. All knowledge areas are important!
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Project management tools and techniques assist project managers and their teams in various aspects of project management. Note that a tool or technique is more than just a software package. Specific tools and techniques include: Project charters, scope statements, and WBS (scope) Gantt charts, network diagrams, critical path analyses (time) Net present value, cost estimates, and earned value management (cost)

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Stakeholders are the people involved in or affected by project activities. Stakeholders include:

The project sponsor The project manager The project team Support staff Customers Suppliers Opponents to the project
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There are different ways to define project success:

The project met scope, time, and cost goals. The project satisfied the customer/ sponsor. The project produced the desired results.

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Project portfolio management is an emerging business strategy in which organizations group and manage projects and programs as a portfolio of investments that contribute to the entire enterprises success.

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Project Management vs. Project Portfolio Management

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Main stages and activities of the project life cycle

Project

Initiation Planning Implementation Evaluation and Exploitation

Project

Project

Project

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Main stages and activities of the project life cycle

Project

Initiation

Identify the problem to be solved or opportunity to be exploit Problem/opportunity analysis Identifying possible solutions Select the best solutions Defining project aim/goal Description of objectives

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Main stages and activities of the project life cycle

Project

Planning

Establish the milestones to be achieved Defining the activities undertaken Identification of time, resources and costs necessary Set up the activities dependencies Working assumptions and feasibility studies Roles and responsibilities of each team member Indicators for monitoring and control Defining the strategy for final evaluation

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Main stages and activities of the project life cycle

Project

Implementation

Monitoring and control Management of project risk Sub-contracting Closing project

Project

Evaluation and Exploitation

Making final evaluation Project operation

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Confusions and clarifications

Terms

used
Project initiation = thinking, writing, design

Development or Design project

Project implementation = To carry out

Confusions and clarifications

Terms

used
Assessment (project approval)

Assessment or Monitoring or Evaluation

Monitoring - control or implementation evaluation

Final evaluation

Confusions and clarifications (cont.)

Terms

used
Writing team

Team approval

Team Implementation team

Monitoring team

Final evaluation team

Project outline

Brief project description:

The goal, objectives, target group, direct and indirect beneficiaries Milestones, The main activities/tasks, Resources required, An overall estimate of the total budget

There are no detailed references on:

Duration of execution for each tasks, Time work, Resources estimation for each activity

The project plan

After accepting the project outline, will continue with detailing: the necessity of project needs of target groups and direct beneficiaries motivation to define the scope and framing of objectives, adding details of proposed activities and schedule design establish dependencies between activities, resource allocation by activity finalizing the budget etc. in order of final approval Proposed dates are targets to be achieved: The initial data became basic data or planned data The project outline is now the project plan