Introduction to Project
Management
Ground Rules
1. Mobiles in switch off or Silent modes
2. One person at a times speaks
3. I am not here to teach you but give
you industry perspective
2
World Interesting Projects
Constraints :
Effective:
Efficiency
4
Godzilla Bridge
The Brooklyn Bridge is a bridge in New York City and is
one of the oldest suspension bridges in the United States.
Completed in 1883, it connects the boroughs of Manhattan
and Brooklyn by spanning the East River. It has a main span
of 1,595.5 feet (486.3 m), and was the first steel-wire
suspension bridge constructed. The Brooklyn Bridge was
opened for use on May 24, 1883
The Brooklyn Bridge was initially designed by German immigrant John Augustus
Roebling
While conducting surveys for the bridge project, Roebling sustained a crush injury to
his foot when a ferry pinned it against a piling. After amputation of his crushed toes he
developed a tetanus infection which left him incapacitated and soon resulted in his
death.
his 32-year-old son Washington Roebling in charge of the project. Washington Roebling
also suffered a paralyzing injury as a result of decompression sickness shortly after the
beginning of construction on January 3, 1870
his wife Emily Warren Roebling who provided the critical written link between her
husband and the engineers on site. Under her husband's guidance, Emily studied higher
mathematics, the calculations of catenary curves, the strengths of materials, bridge
specifications, and the intricacies of cable construction. She spent the next 11 years
assisting Washington Roebling, helping to supervise the bridge's construction.
Apollo-13 3rd lunar
landing
11-Apr-70
Crew:
James A. Lovell, Jr.
John L. Swigert, Jr.
Fred W. Haise, Jr.
Mission Objective:
Apollo 13 was supposed to land in
the Fra Mauro area. An explosion
on board forced
Divided the 2 continent & connected 2 oceans Panama Canal
77.1-kilometre (48 mi) ship
canal in Panama
France began work on the canal
in 1881, but had to stop because
of engineering problems and
high mortality due to disease.
The United States took over the
project in 1904, and took a
decade to complete the canal,
which was officially opened on
August 15, 1914
Health risks posed to workers in the mosquito-infested Panamanian jungle,
principally malaria and yellow fever, cost thousands of lives. Public health
measures were ineffective because the role of the mosquito as a disease vector was
then unknown. Beyond the health and technical difficulties, financial
mismanagement and political corruption also contributed to the French failure.
Advantages of Using Formal
Project Management
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
9
Other important factors
Handling different Govt Agencies like pollution etc.
Handling your locality villagers etc.
Providing basic facilities like power, school etc. at
mega sites
Handling of Activists & disturbing elements
Unexpected economic recession / political instability
Decisions overrule by Govt of previous Govt
Nano at Singrur, Al Plant of Vedenta, Tata Banagalore
airport, Enron Dhabol project, Nuclear projects
10
Project Management
Statistics
The U.S. spends $2.3 trillion on projects every
year, an amount equal to one-quarter of the
nations gross domestic product.
The world as a whole spends nearly $10 trillion of
its $40.7 trillion gross product on projects of all
kinds.
More than sixteen million people regard project
management as their profession; on average, a
project manager earns more than $82,000 per
year.*
11
More Information
on Project Management
More than half a million new information
technology (IT) application development
projects were initiated during 2001, up from
300,000 in 2000.*
Famous business authors and consultants
are stressing the importance of project
management. As Tom Peters writes in his
book, Reinventing Work: the Project 50, To
win today you must master the art of the
project!
*The Standish Group, CHAOS 2001: A Recipe for Success
12
Motivation for Studying
Information Technology (IT)
Project Management
IT projects have a terrible track record
A 1995 Standish Group study (CHAOS) found that only
16.2% of IT projects were successful and over 31%
were canceled before completion, costing over $81 B in
the U.S. alone
The need for IT projects keeps increasing
In 2000, there were 300,000 new IT projects
In 2001, over 500,000 new IT projects were started
13
What Is a Project?
A project is a temporary endeavor undertaken to
accomplish a unique product or service
Attributes of projects
unique purpose
temporary
require resources, often from various areas
should have a primary sponsor and/or customer
involve uncertainty
14
The Triple Constraint
Every project is constrained in different ways by its
Scope goals: What is the project trying to accomplish?
Time goals: How long should it take to complete?
Cost goals: What should it cost?
It is the project managers duty to balance these three
often competing goals
15
The Triple Constraint of Project
Management
16
A bird Eye View
Project Management
Processes
Planning
Managerial
Technical
Quality
Management
Risk
Management
HR
Management
Configuration
Management
Scheduling
Context
Control
Project Management Tools
Communication & Reporting
Procurement
Management
Project Management
Complex and numerous activities
Unique - a one time set of events
Finite - a begin and end date
Limited resources and budget
Many people involved
Sequenced activities
End product or service must result
What is Project
Management?
Project management is the application of knowledge,
skills, tools, and techniques to project activities in order
to meet project requirements
19
Project Stakeholders
Stakeholders are the people involved in or affected
by project activities.
Stakeholders include:
Project sponsor
Project manager
Project team
Support staff
Customers
Users
Suppliers
Opponents to the project
20
Information Technology Project
Management, Fourth Edition
Project Management
Framework
21
Project Stakeholders
Stakeholders are the people involved in or affected
by project activities
Stakeholders include
the project sponsor and project team
support staff
customers
users
suppliers
opponents to the project
22
9 Project Management
Knowledge Areas
Knowledge areas describe the key competencies that
project managers must develop
4 core knowledge areas lead to specific project
objectives (scope, time, cost, and quality)
4 facilitating knowledge areas are the means through
which the project objectives are achieved (human
resources, communication, risk, and procurement
management)
1 knowledge area (project integration management)
affects and is affected by all of the other knowledge
areas
23
Factors in Project Success
Project Management Philosophy
Project Management Role and Responsibility
Project Management Principles and Practices
Project Management Philosophy
The Golden Rule of Project Management is
three words:
Plan
Organize
Control
Project Management Roles and
Responsibilities
Project Execution
Maintain Customer Relations
Create a Positive Environment
Project Execution Plan
Project Execution Strategy
Project Management
Quality
Safety
Risk Management
Design/Develop/Program
Implementation
Documentation
Training
Customer
Relations
Develop Communication
Ensure Timely
Participation
Include the Customer on
the Project Team
Develop Trust and
Confidence
Create a Positive
Environment
__________ Effectively
__________ Member of the Team
Utilize _______ _______ Activities
__________ Success
Maintain a safe working environment
Safet
y
Project Management Principles
and Practices
Define Project Objectives
Develop Project Execution Plan
Define Baselines for Control
Manage Risk
Close out Effectively
Define Project Objectives
Expected deliverables
Required resources (total installed cost)
Required timing (opening date)
Safety and Environmental
Total Quality
Define S.M.A.R.T. Project
Objectives
S pecific
M easurable
A ssignable
R ealistic
T ime related
Alignment Process
Team Requirements
Skills needed ?
Individuals identified ?
When are they needed ?
Where are they ?
Training needed ?
Interpersonal compatibility ?
The Four Cornerstones
of Project Management
Cost
Schedule
Scope
Quality
Cornerstones of
Project Management
Cost
Scope
Schedule
Quality
Scope
Poor scope definition is the major
contributing factor to cost
overruns in the engineering and
construction industry.
CAUTION
Initial Scoping Effort
Sets the baseline for cost and schedule
Must involve the right people
Must include implementation
Identifies items not included
Maximum influence on project cost
Breaks project into manageable pieces
The WBS
Drawings
Estimate
Facility
Services
WBS Element/
Work Package
Schedule
Cost
Reports
Contracts
Bill
of
Materials
Successful Work Breakdown
Status and completion is easily measured
Definite beginning and end
It is familiar with prior experience
Manageable work assignments
One continuous stream of work from start to finish
Steps for constructing a WBS
Divide the project into major objectives
Partition objectives into activities
Divide activities with missing characteristics
into subactivities
Repeat #3 until all subactivities have desired
characteristics
Lowest subactivities are the basis of work
packages
Creeping scope
The effect of creeping scope is
a major cause of cost overruns
To manage creeping scope
Keep scope documents current
Freeze design after the estimate has been
approved
Allow only those changes that are justified by
benefit
Use an effective change management procedure
The Four Commandments
of Good Project Scope
Written
Well defined
Clearly understood
Achievable
Cornerstones of
Project Management
Cost
Scope
Schedule
Quality
Aspects of Cost
Estimate
Basis for Control
Cost Control
Application of
control procedures
to follow
financial
progress
Estimate Requirements
Define project cost
integrate scope, schedule, and
Define estimate basis
Identify potential risks
Identify contingency/escalation
Identify items not included
resources
Elements of Cost
Control
Establish the baseline (estimate)
Measure variation from baseline
Take corrective action
Cost Control System
Detailed project scope/work package
Control estimate
Chart of accounts
Cost status report
Forecasting process
Change management procedure
Cash flow forecast
Project Control
Project
Day 1
-------------To do list:
Kick off meeting
Project schedule
Integration of Cost and Time
Basic Elements of the
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
Key Control Philosophies
Define the baseline for control
1._______ 2. ________
_______ 4. ________
Divide project into manageable pieces
Remember: Ability to influence cost is
maximum early in the project
3.
Key Control Philosophies
(cont)
Define and manage risk/opportunity
Integrate scope and estimated cost into schedule
Make informed decisions
Anticipate deviations/changes
Adopt the end product approach
Plan ahead from phase to phase
Basic Project Control Steps
Define the project scope
Develop a project plan consistent with:
project scope
estimates (cost constraints)
schedule (constraints
resources available
Report progress and compare with budget and
forecast
Control by taking corrective action
Contingency - Plan for
Change
Cornerstones of
Project Management
Cost
Schedule
Scope
Quality
Schedule
Planning -
Identification of the
sequence of events
necessary to complete
the project
Scheduling Determination of timing and
assembly of project
activities to give overall
completion time
Front End
Schedule
A way to get the project started right
Design
Program
Install / Test
System Turnover
Basis for Project Schedule
Project objectives
Project scope
Project milestones
Project estimate (budget)
Resource availability
The Critical Path
Identifies project priorities
Shows activity relationships
Enables schedule analysis
Reflects project strategy
Promotes teamwork
Basic Network Diagramming
Expanded Network
Diagramming
The Bar Chart
The Gantt Chart
Five Phases of Project Management
Project Management Process
Initiate
& Align
Project
Description
Team Mission/
Assignment
Major Milestones
Boundaries
Team
Identification
Roles &
Responsibilities
Measures of
Success
Operating
Guidelines
Plan
the Work
Work Breakdown
Structure (WBS) /
Master Deliverables
List (MDL)
Task Planning &
Scheduling
Budget
Risk Planning
Communication
Plan
Change
Management Plan
Quality (QA/QC)
Plan
Transition &
Closure Plan
Endorse
the Plan
Project Team Commitment
Management Endorsement
Work
the Plan
Transition
& Closure
Managing Scope,
Schedule & Budget
Manage Risks
Manage Change
Communicate
Progress
Issues
Lessons
Learned
Implement
Transition Plan
Review Lessons
Learned
Reward &
Recognize
Archive
Continuous Communication
Factors in Project Success
Project Management Philosophy
Project Management Role and Responsibility
Project Management Principles and Practices
Cornerstones of
Project Management
Cost
Schedule
Scope
Quality
Total Project Quality Management
Quality Assurance
Quality
Control
Total Project
Quality
Management
Continuous Improvement
Design
Basis
Project Quality Improvement
Develop a quality management plan early in
the project
Include representatives from all affected
organizational units on the project team
Initiate the project effectively through kick-off
and alignment meetings
Review performance and measure success
Project Quality Improvement
(cont)
Define scope and review periodically
Limit scope changes
formal change procedure
require justification
Complete more engineering up-front before
defining cost and scheduling
Obtain constructability, operability and
maintainability input to design
Cost of Quality
Risk Management
Manage Risk
What is risk?
Sources of risk
Kinds of risk
Risk Management Process
Identify risks
Define consequences
Develop a mitigation plan
Document
Sources of Risk
Technical
Financial
Socio-Economic
Contractual
Risk Management Process
Identify Risk
Analyze Risk
Respond to Risk
Document Risk
Sources of Help to Identify
Risk
Site investigations
Contract documents
Schedule
Team brainstorming
Body of experience
Risk Control Methods
Avoid
Reduce
Share
Insure
Accept
with contingency
without contingency
Contain
Risk Containment
Clearly define insurance responsibilities in
contracts
Use qualified personnel
Document and communicate project
strategy
Define roles and responsibilities
Prepare contingency plans for critical
activities
Use up-front team building
Risk Containment (cont)
Use qualifies contractors
and
vendors
Preconstruction work briefings
(especially safety)
Rehearse critical activities or use
mock-ups
Use strong project control systems
Manage contingency
How Project Management
Relates to Other Disciplines
Much of the knowledge needed to manage
projects is unique to the discipline of project
management
Project mangers must also have knowledge and
experience in
general management
the application area of the project
83
History of Project
Management
Some people argue that building the Egyptian
pyramids was a project, as was building the Great
Wall of China
Most people consider the Manhattan Project to be
the first project to use modern project
management
This three-year, $2 billion (in 1946 dollars) project
had a separate project manager and a technical
manager
84
Sample Gantt Chart
85
The WBS (work break down structure ) is on the left, and
each tasks start and finish date are shown on the right using
a calendar timescale. Early Gantt
Charts, first used in 1917, were drawn by hand.
Sample Network Diagram
Each box is a project task from the WBS. Arrows show dependencies between tasks. The
bolded tasks are on the critical path. If any tasks on the critical path take longer than planned,
the whole project will slip unless something is done. Network diagrams were first used in
1958 on the Navy Polaris project, before project management software was available.
86
Sample Enterprise Project
Management Tool
In recent years, organizations have been taking advantage of software to
help manage their projects throughout the enterprise.
87
The Project Management
Profession
The job of IT Project Manager is in the list of the top
ten most in demand IT skills
Professional societies like the Project Management
Institute (PMI) have grown tremendously
Project management research and certification
programs continue to grow
88
Top Ten Most in Demand IT
Skills
Rank
IT Skill/Job
Average Annual Salary
1
SQL Database Analyst
$80,664
2
Oracle Database Analyst
$87,144
3
C/C++ Programmer
$95,829
4
Visual Basic Programmer
$76,903
5
E-commerce/Java Developer
$89,163
6
Windows NT/2000 Expert
$80,639
7
Windows/Java Developert
$93,785
8
Security Architect
$86,881
9
Project Manager
$95,719
10
Network Engineer
$82,906
Paul Ziv, The Top 10 IT Skills in Demand, Global Knowledge Webcast
([Link]) (11/20/2002).
89
IS370 Project Management
Ethics in Project
Management
Ethics is an important part of all
professions
Project managers often face ethical
dilemmas
90
You Can Apply Project
Management to Many Areas
Project management applies to work as well as
personal projects
Project management applies to many different
disciplines (IT, construction, finance, sports, event
planning, etc.)
Project management skills can help in everyday
life
91
Project Close-out
Project Closeout - Major
Phases
Obtain client acceptance
Document the project
Conduct the post implementation audit
Issue the final report
Successful Project Management
Plan the
Work
Work the
Plan
Successful Project Completion
Celebration at every mile stone
Thanks
