What is a project?

A project ...
o has a unique purpose
o is temporary
o consumes resources
o should have a primary
sponsor
o involves uncertainty
o is defined work and
managed to greater level of
detail as the project evolves
(progressive elaboration)

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Product Service or a
• a component of another item or an
capability to
end item in itself perform a service
• e.g., a business function that
supports production.

Outcome of
a Project
Improvement in Result, i.e., an
existing product or outcome or document
service • e.g., a research project to develops
knowledge that can be used to
• e.g., a Six Sigma project to reduce determine whether a trend exists,
defects or a new process will benefit
society
o A project is a temporary endeavour undertaken
to create a unique product, service or result.
Project Management Institute (USA), "A guide to project management body of knowledge (PMBOK® Guide)", Fifth Edition (2013).

o A project is a unique set of coordinated activities

with a definite starting and finishing point,
undertaking by an individual or organization to
meet specific objectives within defined, scheduled
cost and performance parameters.
The British Standards Institute
A project is ended when ...
Success

Completed with time, scope and cost constraints

Result meets main objective

Satisfied customers or sponsors

Projects and operations
o Projects are temporary and unique, but
operations are
n organizational function performing
repetitive and ongoing activities that
produce identical or similar outputs
to sustain the business.
o Example:
n Design a new car. (Project)
n Production line in a car manufacturing
company. (Operation)
Examples of projects
Implement, improve, or
Develop a new product,
enhance existing business
service, or result. processes and procedures.

Effect a change in the structure, processes,

staffing, or style of an organization.
Develop or acquire a new or
modified information system.
Conduct a research effort whose
outcome will be properly recorded.
Construct a building, industrial
plant, or infrastructure.
Why are projects important?
o growth and survival
o respond to changes
o learn, adapt, improve
o develop new products / services
o create values
Suppose you receive a term paper
assignment ... !
First step: Develop a sense of the assignment. Defining
What is the professor looking for?
How many words the paper should be?
How many references required? ... !
Second step: Develop a plan Planning
How much time will be needed for the research?
How much time for writing the first draft?
How much time for completing the final draft?
Can I complete the assignment by the due date?
Set some tentative milestones. "‍‍
Executing
Third step: Execute the plan
Do online or library research. Create an outline. Write a draft. ... $
Last step: Submit assignment. File or discard Closing
reference materials. Return books to the library.
Wait for the grade. %
o Project Phase
n a collection of related project activities, usually
ended with the completion of a major deliverable.
n mainly completed sequentially but can overlap in
some project situations.

o Project Life Cycle

n a collection of sequential project phases.
n The name and number of phases are determined by
the control needs of the organization.
Project Life Cycle
o Names of phases, number of project phases and
and duration of each phases are determined by the
management depending on
n control needs
n nature of the project
n area of application.
o Phases are time bound with control point.
n The project charter and business documents are
reviewed.
o At each control point, the management reviews the
performance of the project to determine whether to
continue, change or terminate the project.
Example
o Construction
n Feasibility → Plan → Build → Close
o Traditional software development
n Requirement → Design → Development → Integration
→ Test → Deployment
o General
n Early
define problem → identify goals
→ determine resources → identify risk
n Intermediate
estimate time and cost → plan activities
→ implement → test
n Final (Close project)
Project Phases
o Early phase:
n Resource needs are usually lowest.
n Level of uncertainty is highest
n Stakeholders have the greatest opportunity to
influence the project.
o Intermediate phase:
n More resources are needed.
n Level of uncertainty decreases.
o Final phase:
n Focus on ensuring project requirements were met.
n Project completion approved by the sponsor.
Project Management Phases
Level of effort

Executing

Planning

Defining Closing

Beginning End
Time
Defining
o Analyze the business needs and recognize the benefits.
o Define requirements in measurable goals.
o Review of the current operations.
o Analyze the costs and benefits including a budget.
o Identify stakeholders including users, and support
personnel for the project.
o Prepare project charter which is a document for project
approval.
o Assign project manager.
Planning
o Define the project scope.
o Select the planning team.
o Identify deliverables and create work breakdown structure.
o Identify activities needed to complete those deliverables.
o Schedule activities and arrange the activities in their
logical sequence.
o Define requirement of the activities.
o Estimate resource requirements for the activities.
o Estimate time and cost for the activities.
o Develop the budget.
o Evaluate risks.
o Gain formal approval.
Executing
o Direct and manage project execution
o Conduct quality assurance of deliverables
o Acquire, develop and manage project team
o Distribute information
o Manage stakeholder expectations
o Conduct procurement
o Monitoring
n Track progress by measuring the ongoing activities.
n Test deliverables against the expected outcome
o Controlling
n Identify issues and risks
n Take corrective actions
Closing
o Delivery of the project
n Customer training and transferring documents.
o Redeployment project resources
n Release project equipment/materials to other projects
n Find new assignments for team members.
o Post-implementation reviews
n Assess performance
n Capture lessons learned.
What is Project Management?
o Project management is the planning, directing,
organizing, and controlling of resources to
accomplish the objective of a project and meet
the time and resources constraints of the
project.
Project Management
o Application of knowledge, skills, tools and
technique to project activities in order to meet
or exceed stakeholders' needs and expectation

Operations Management
o Overseeing, directing, and controlling business
operations to support day-to-day business and
to achieve strategic and tactical goals
Operations Management
o Operations management is concerned with the
ongoing production of goods and/or services.
o It ensures that business operations continue
efficiently by using the optimal resources
needed to meet customer demands.
o It is concerned with managing processes that
transform inputs into outputs.
A Successful Project Management
o Achieve the project goal
within time and cost constraints
at the desired performance level while
consuming the assigned resources effectively
and efficiently and
the outcome meets or exceeds the expectation
of the customers or the stakeholders.
The Triple Constraint
Successful project management means meeting all
three goals (scope, time, and cost) and satisfying
the project's sponsor.
Time goals:
How long should it take to complete?

Scope goals:
Sc
l
oa

What work will be done?

op
g

e
st

go
Co

Cost goals:
al

What should it cost?

Time goal
Sponsor acceptance
Main aspects of project management
o Project management typically includes the
following activities.
n Address the needs, concerns, and expectations of
the stakeholders in planning and executing the
project
n Set up, maintain, and carry out communications
among stakeholders that are active, effective, and
collaborative in nature
n Manage stakeholders towards meeting project
requirements and creating project deliverables.
n Balance the competing project constraints
Characteristics of Project Management
o One project manager (PM) leads the project team and
works independently of the normal line of command.
o The project team is cross-functional, goal-oriented and
temporary. The PM is responsible for integrating these
people together to achieve the objective of the project.
o The PM negotiates directly with functional managers or
contractors who might be responsible for the individual
work tasks and personnel within the project.
Characteristics of Project Management
o Project team members may need to report to both a PM and a
functional manager.
o Conflicts often arise between PM and functional managers.
n PM focuses on the delivery of result for a particular project
n Functional manager is responsible for the pool of workers and resources
in their areas.
o Decision-making, accountability, outcomes, and rewards are
shared between the project team, supporting functional units
and subcontracting units.
o A project is temporary, but the functional or subcontracting
units are permanent. When a project ends, the project team is
dismissed, and people return to their functional or
subcontracting units.
Project Manager
o Project manager (PM) is the person that leads the project
team and is responsible for achieving project objectives.
o The job of a PM is to identify the competing constraints and
then manage the project to balance them appropriately.
o PM is distinct from functional manager or operation manager.
n Functional managers focus on managing a business unit
n Operations managers are responsible for ensuring that business
operations are efficient
o PM may report to a functional manager.
o PM may be one of several PMs who report to a programme
or portfolio manager.
Key Roles of a PM

Team Leader Manager Decision

Maker

Problem Communicator Negotiator

Solver

Integrator Risk Monitor Salesman

Required competence of a PM
o Knowledge
n Refers to what the PM knows about project management.
o Performance
n Refers to what the PM is able to do or accomplish while
applying his/her project management knowledge.
o Personal
n Refers to how the PM behaves when performing the project
activities.
o Attitudes
o Core personality characteristics
o Leadership
Interpersonal Skills of a PM
o Since a PM accomplishes work through the project
team and other stakeholders, an effective PM requires
a balance of ethical, interpersonal, and conceptual
skills to analyse situations and interact appropriately.
o Some important interpersonal skills.
Leadership Political awareness
Team building Cultural awareness
Motivation Negotiation
Communication Trust building
Influencing Conflict management
Decision making Coaching
A communication Satellite Programme

Satellite
Design Satellite
Construction
System
Integration

Ground Stations Launch of

Design the System
Ground Stations
Construction

A collection of projects!
What are Programmes?
o A programme is
a group of related projects
managed in a coordinated way
to obtain benefits and control
not available from managing them individually.

o A project may or may not be part of a programme

but a programme will always have projects.
What are Programmes?
Programmes may include elements of related work outside the
scope of the discrete projects.

Programmes are a collection of projects that support a common

goal.

Projects within a programme are related through the common

outcome or collective capability.

If the relationship between projects is only that of a shared

client, seller, technology, or resource, the effort should be
managed as a portfolio of projects rather than as a programme.
Project and Programme Managers
o Project o Programme
managers managers
work with project oversee programmes
sponsors, project and provide leadership
teams, and other and direction for the
people involved in project managers
projects to meet heading the projects
project goals. within the programme.
Programme Management
o Programme management is the application of
knowledge, skills, tools, and techniques
to a programme in order
to meet the programme requirements and
to obtain benefits and control
not available by managing projects individually.
Project Interdependencies in programmes
o Programme management focuses on determining the
optimal approach for managing the interdependencies
of projects in the programme.
o Possible actions in a programme.
n Resolve resource constraints or conflicts
that affect multiple projects within the programme.
n Align strategic direction
that affects project and programme goals and objectives.
n Resolve issues within a shared management structure.
A portfolio of an clothing firm
o Strategic objective:
n Maximizing profitability.

Release new
brand of Six Sigma project
clothing to reduce inventory cost

Implementation Develop online

of new IT system store to expand
to improve efficiency market share
Portfolios
o A portfolio is a collection o The projects or
of projects, programmes, programmes of the
sub-portfolios and portfolio may not
operations managed as a necessarily be
group to facilitate interdependent or
effective management of directly related.
that work to achieve
strategic business
objectives.
Portfolio Management
o Centralise management of portfolios to
achieve strategic objectives.
o Clarify, prioritize, and select projects and
programmes to ensure resource allocation
in consistent and aligned with
organisational strategies.
Project Management Compared
to Project Portfolio Management

Tactical goals Strategic goals

o Project Management o Portfolio Management

n Are we carrying out n Are we working on the
project well? right projects?
n Are project on time and n Are we investing on the
on budget? right area?
n Do project stakeholders n Do we have the right
know what they should resources to be
be doing? competitive?
A Project Management Office (PMO)
is an organizational group responsible for
coordinating management of projects
under its domain.
Functions of a PMO
o Manage shared resources.
o Identify and develop methodology, best practices, and
standards.
o Coach, mentor, train, and oversee projects.
o Monitor compliance with standards, policies,
procedures, and templates by means of project audits.
o Develop and manage project policies, procedures,
templates, and other shared documentation.
o Coordinate communication across projects.
o Provide a structure to house PM
o Provide a formal career path for PM
o Provide project management consulting services.
3 Types of PMO
Supportive

• Provide support and a consultative role to projects.

• Serves as a project repository and supply templates, best practices,
training, access to information and lessons learned from other projects.
• Degree of control: LOW.

Controlling

• Take control and require compliance.

• Compliance may involve adopting project management
methodologies, using specific templates, forms and tools, or
conformance to governance.
• Degree of control: MODERATE.

Directive

• Directly manage the projects.

• Degree of control: HIGH.
Project Manager vs. PMO
Project Manager Project Management Office
Responsible for delivering specific Organizational structure that add
project objectives within organizational perspective
constraints of the project.
Focuses on the specified project Focuses on major programme scope
objectives

Controls the assigned project Optimizes the use of shared

resources to best meet the organizational resources across all
objective projects

Manages individual project Manages the methodologies,

constraints standards, overall risks or
opportunities, metrics, and
interdependencies among projects
at the enterprise level.

Reports on project progress and Consolidated reporting on the

project related activities projects under its domain