Chapter-1

Why we need Projects

Why we need Projects
Management vs Leadership
What is a Project?

?
What is a Project?
 A project is a sequence of unique, complex and connected
activities having one goal or purpose that must be
completed by a specific time, wthin budget and according to
specification.
 A project is a complex, nonroutine, one-time effort limited by
time, budget, resources, and performance specifications
designed to meet customer needs.
 Projects are ad hoc, resource-consuming activities used to
implement organizational strategies, achieve enterprise goals
and objectives, and contribute to the realization of the
enterprise‘s mission.
A project is a temporary
endeavor undertaken to create
a unique product, service or
result.
A Project can Create
 A product that can be either a component of another
item or an end item in itself.
 A capability to perform a service(e.g., a business
function that supports production or distribution).
 A result such as an outcome or a document (e.g., a
research project that develops knowledge that can be
used to determine whether a trend is present or a
new process will benefit society).
Main features of a Project -
Revision
 It is a temporary endeavor undertaken.
• To create a unique product, service or result
• Temporary, therefore, has a start and an end
• End is reached when
– Objectives have been achieved
– When objectives will not or cannot be met
– Need for the project does no longer exist
• What can be the duration of a project?
• What about the outcome of a project?
Examples of Projects
• Implementing change in the structure, staffing or style
of an organization
• Developing or acquiring a new modified information
system
• Constructing a building or infrastructure (Motorway)
• Implementing a new business process or procedure (Cut
down cost / material / HR)
• Give examples of Projects in Pakistan / World
Pre-project Activities
 What and who starts a project?
 What happens after that?
Pre-project Activities
 What after the idea and project originator?
 What happens after that?
Pre-project Activities
 What after CBA?
 What happens after that?
Pre-project Activities
 Alternates
 What happens after that?
Pre-project Activities
 Prepare a proposal for decision making?
 What is the importance of this proposal?
 What happens after that?
Pre-project Activities
 Prepare Budget & Schedule?
 What happens after that?
Pre-project Activities
 Identify Project Teams
 What happens after that?
The Project Boundaries
What is Project Management?
• It is the application of:
– Knowledge
– Skills
– Tools
– Techniques
– To do project activities to meet project requirements
– It is accomplished through appropriate application and
integration of 47 logically grouped project management
processes comprising the 5 process groups and 10 Knowledge
Areas.
– What are those FIVE Process Groups?
– What are those 10 Knowledge Areas in
Projects?
 Mapping the Processes
Process Group
Initiating Planning Executing Controlling Closing
P.G. P.G. P.G. P.G. P.G.
Knowledge Area
Project Develop Develop Project Direct & Monitor & Control Close
Integration Project Management Plan Manage Project Work Project
Management Charter Project Perform Integrated or
Execution Change Control Phase
Project Scope Collect Requirements Verify Scope
Management Define Scope Control Scope
Create WBS
Project Time Define Activities Control Schedule
Management Sequence Activities
Estimate Activity
Resources
Estimate Activity
Duration
Develop Schedule
Project Cost Estimate Costs Control Costs
Management Determine Budgets

21
 Mapping the Processes (cont.)
Process Closi
Initiating Planning Executing Controlling
PM Group ng
P.G. P.G. P.G. P.G.
Knowledge Area P.G.
Project Quality Plan Quality Perform Quality Quality Control
Management Management Assurance
Project Human Develop Human Acquire Project Team
Resource Resource Develop Project Team
Management Management Manage Project Team
Project Plan Manage Communication Control
Communications Communications Communications
Management Planning
Project Risk Plan Risk Control Risks
Management Management
Identify Risk
Perform
Qualitative Risk
Analysis
Perform
Quantitative Risk
Analysis
Plan Risk
Responses

22
 Mapping the Processes (cont.)
Process
Initiating Planning Executing Controlling Closing
PM Group
P.G. P.G. P.G. P.G. P.G.
Knowledge Area
Project Plan Conduct Administer Close
Procurement Procurement Procurements Procurements Procurements
Management Management
Project Identify Plan Manage Control
Stakeholder Stakeholders Stakeholder Stakeholder Stakeholder
Management Management Engagement Engagement

23
Process Group Interaction in a Project or
Phase
Example
Relationship Between
 Project Management

 Program Management

 Portfolio Management
What is 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.
Examples of Portfolio Management
• An infrastructure firm that has the strategic objective
of maximizing the return on its investments may have
a portfolio of:
• Projects in oil & gas
• Projects in power
• Projects in water
• Projects in roads
• Projects in rail
• Projects in airports
Program Management
Program Management is defined as 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 the
scope of the discrete projects in the program
A program will always have projects.
Program Management
It focuses on the project interdependencies and help to
determine the optimal approach for managing them.
• Resolve resource constraints & conflicts
• Aligning organizational direction
• Resolve issues and change management within a shared
governance structure
Example of a
Program Management
A new communication satellite system:
• Designing of a satellite and ground system
• Construction of a satellite and ground station
• Integration of the system
• Launching of the satellite
Project Management Office (PMO)

It is an organized body or entity assigned coordinated

management of projects under its domain
It is the key decision maker during the beginning of each
project
It is also responsible for the selection, management and
deployment of shared or dedicated project resources
Functions of (PMO)
• Managing shared resources
• Identifying & developing project management
methodology, best practices and standards
• Coaching, monitoring, training and oversight
• Monitoring compliance project audits
• Developing & managing project policies, procedures,
templates and other standard documentation?
• Coordinating communication across projects
Project Manager
• Focuses on a specific project objective
• Controls resources to best meet project objectives
• Manages the constraints (scope, schedule, cost, risk,
human resources and quality etc.) of individual project
Main Functions of a Project Manager
• Define scope of project
• Identify stakeholders & Leadership (decision makers:
Client, Parent organization, Project Team, Public)
• Evaluate project requirements
• Develop detailed task list (work breakdown
structures)
• Develop initial project management flow chart
• Estimate time requirements
• Identify cost estimation and budget
• Identify required resources and evaluate risks
Main Functions of a Project Manager
• Prepare contingency plan
• Identify interdependencies
• Identify and track critical milestones
• Secure needed resources, manpower
• Participate in project phase review
• Manage the change control process
• Report project status
Project Management Vs
Operation Management

 How they are different?

 When do they interact?
Project VS Operations
PROJECTS OPERATIONS
Projects require Project Management Operations require Business Process
Management or Operations Management
Temporary Undertakings Permanent Endeavors
Temporary Assignments Ongoing nature of Operations
Produce Unique Outputs Produce Repetitive Outputs
Temporary Resourcing Permanent Resource Assignments
Execute according to Project Management Plan Execute as per standards (SOPs)
developed for project life cycle Institutionalized in product life cycle.
Obtain objectives and then terminate Sustain the business
Concludes when its specific objectives have been Adopt a new set of adjectives and the work
attained continues
Project Vs Production Interaction
 Projects can intersect with operations at various points
during the product life cycle:
 At each closeout phase
 When developing a new product, upgrading a product,
or expanding outputs
 Improvement of operations or the product development
process
Organizational Process Assets
 Processes and procedures
 Corporate knowledge base
 Lessons learned
 Historical information
 Completed schedules, risk data, and earned value data
Enterprise Environmental Factors
Enterprise environmental factors refer to conditions, not under
the control of the project team, that influence, constrain, or
direct the project
 Organizational culture, structure & governance
 Geographic distribution of resources & facilities
 Government or industry standards
 Infrastructure: Existing facilities and capital equipment
 Existing human resource
 Marketplace conditions
 Stakeholder risk tolerance
 Potential climate
 Political climate
 Established communication channels
 Commercial databases: cost, risk study / info
 Project management information systems
Oxygen Break
 Project Charter
 Input: (Pre Project Activities)
 PSoW
 Business Need (Market Demand, technical advance, legal or Govt.)
 Product Scope Description (Product / Service / Result)

 Strategic Plan (Goal, Vision, Mission)

 Business Case (Justification)

 Cost Benefit Analyst (feasibility)
 Contract (If external customer)
 Tools & Techniques
 Expert Judgment
 Output:
 Project Charter and its content
 Project Purpose

 High level requirements (Major Deliverables)

 High level risks

 Summary milestones

 Summary budget
 What is Scope?
 Project scope –The work that must be done in order to deliver a product
with the specified features and functions.

 Project Scope Management includes the processes required to ensure that

the project includes all the work required, and only the work required, to
complete the project successfully, with all the requirements and
characteristics agreed upon.

 Project Scope Management is primarily concerned with defining and

controlling what is and is not included in the project.
Plan Scope Management

?
COLLECT REQUIREMENTS
How requirements can be collected?
COLLECT REQUIREMENTS
 How do you collect requirements?
 INTERVIEWS (Directly with stakeholders)
 FOCUS GROUPS (prequalified Stakeholders & Subject matter experts)
 FACILITATED WORKSHOPS (Focused cross functional stakeholders)
 JAD Joint application design, QFD Quality function development
 GROUP CREATIVITY TECHNIQUES (Brainstorming, Nominal Group
Technique, Delphi Technique etc.)
 GROUP DECISION MAKING TECHNIQUES (Unanimity, Majority,
Plurality, Dictatorship)
 QUESTIONNAIRE AND SURVEYS (wide number of respondents)
 OBSERVATION (viewing individual in their environment)
 PROTOTYPES (early feedback by providing a working model)
 Collect Requirements
 From the requirement that you gathered, you make these three documents
to proceed further.
1. Requirement Documentation
 Business need or opportunity to be seized

 Project objectives for traceability

 Functional requirements

 Non-functional requirements (level of services, performance, safety)

 Quality requirements

 Acceptance criteria

 Business rules

 Impact of other organizational area, sales, technology group

 Support and training requirements

 Requirements assumptions and constraints

 Collect Requirements
2. Requirement Traceability Matrix
 A table that links requirements to their origin and traces them
throughout the project life cycle.
 It helps to ensure that each requirement adds business value by
linking it to the business and project objectives.
 It provides a mean to track requirements throughout the project life
cycle.
 Help to ensure that requirements approved in the requirement
documents are delivered at the end of the project.
 It provides a structure for managing changes to the product scope.

Attributes are associated with each requirement and recorded in the

requirement traceability matrix; such as: a unique identifier, textural
description of each requirement, rationale of inclusion, owner,
source, priority, version, current status and date completed.
Requirement Traceability Matrix
ID Associate Requiremen Business Project WBS Product Product Test
ID t Description Need Objective Deliverable Design Development Cases
Opportuniti
es Goals,
Objectives
 Define Scope
 After collecting requirements, you do a PRODUCT ANALYSIS ( Product
breakdown, requirement analysis, system engineering, value
engineering and value analysis) and you also do an ALTERNATIVE
IDENTIFICATION (different approaches to execute and perform the
work of the project) and you produce a scope statement.
 Scope statement is very important for a project manager due to the
following reasons:
 It includes Major Deliverables & their acceptance criteria

 It also includes the deliverables excluded from the project

 I shows major assumptions and risk factors in the project

 It is then signed by the project manager, sponsor, major stakeholders

and some vendors that may have major part to play in the project.
 It is a total commitment from the Project manager and the sponsor.
 Project Charter Vs Project Scope Statement
a comparison
Project Charter Project Scope Statement
•Purpose or Justification •Project Scope Description
•Measureable Project Objectives (progressively elaborated)
and Success Criteria •Acceptance Criteria
•High-level requirements •Project Deliverables
•High-level project description •Project Exclusions
•High-level Risk •Project Constraints
•Summary Milestone Schedule •Project Assumptions
•Summary Budget
•Stakeholder List
•Project Approval requirements
(success factor, who decides an
who signs)
•Assigned Project Manager
•Name and authority of the
sponsor
 CREATE WBS
 Since in define scope, we prepare scope statement therefore we can
now break the project into work packages, also known as deliverables.
 The technique we use in breaking project into work packages is called
Decomposition. This decomposition techniques provides us an output
of :

WBS : It is a deliverable-oriented hierarchical decomposition of the

work to be executed by the project team
WBS DICTIONARY (Code, description of work, responsible organization,
list of schedule milestones, associated schedule activities, resources
required, cost estimates, quality requirements, acceptance criteria)
SCOPE BASELINE: A component of project management plan (Project
Scope Statement, WBS, WBS Dictionary)
PROJECT DOCUMENT UPDATE
Scope Statement is then passed on to the Project Time Management
and Project Quality Management to plan for Time and Quality.
 Validate SCOPE
 INPUT
 PROJECT MANAGEMENT PLAN
 REQUIREMENTS DOCUMENTATION
 REQUIREMENTS TRACEABILITY MATRIX
 Verified DELIVERABLES
 TOOLS AND TECHNIQUES
 INSPECTION (Includes activities such as measuring, examining and verifying
to determine whether work & deliverables meet requirement and product
requirement criteria. Also called: review, product reviews, audits &
walkthroughs)
 OUTPUTS
 ACCEPTED DELIVERABLES
 The ones that meet the acceptance criteria are formally signed off and
approved.
 CHANGE REQUESTS (the once not meet acceptance run through project
integrated change control process)
 PROJECT DOCUMENT UPDATES
 CONTROL SCOPE
 INPUT;
 PROJECT MANAGEMENT PLAN
 Scope base line is compared to actual
 Scope management plan describes how to manage and control scope
 Change management plan
 Configuration management plan (those items that require formal change control)
 Requirement measurement plan
 WORK PERFORMANCE INFORMATION
 Information about project process
 REQUIREMENTS DOCUMENTATION
 REQUIEMENT TRACEABILITY MATRIX
 ORGANIZATIONAL PROCESS ASSETS
 Existing formal & informal scope control related policies, procedures and guidelines
 Reporting and monitoring methods to be used

**Control Scope is the process of monitoring the status of the project and product scope and
managing changes to the scope baseline.

Controlling the project scope ensures all requested changes and recommended corrective or
preventive actions are processes through the Perform Integrated Change Control process.
Uncontrolled changes are often referred as Project Scope Creep.
 Control Scope
 TOOLS AND TECHNIQUES
 VARIANCE ANALYSIS: assess the magnitude of variation from original
scope baseline.
 OUTPUTS
 WORK PERFORMANCE MEASUREMENTS (Planned vs Original)
 ORGANIZATIONAL PROCESS ASSETS UPDATES
 (causes of variance, corrective measures, lesson learned)
 CHANGE REQUESTS to the scope baseline or other components of
project management plan
 PROJECT MANAGEMENT PLAN UPDATES
 Scope baseline cost baseline and schedule baselines update,
 PROJECT DOCUMENT UPDATES
 Requirements documentation
 Requirement traceability matrix
Dehydration Avoiding Break
Thanks for your patients

Questions?