Course : MGMT8003-Project and Change Management

Effective Period: September 2016

Project Management
Knowledge Areas (1 and 2)

Session 02
 Project Management Knowledge
Areas (1 of 2)

 Project Integration Management

 Project Scope Management
 Project Management Framework
Project
Portfolio
Nine Knowledge Areas Core To ols and
Techniques Project 1
Functions Project 2
Project 3
Scope Time Cost Quality
Project 4
Management Management Management Management

Project
Project Integration Management
Success
Stakeholder s’
needs and
expectations Procurement
HR Communication Risk
Management Management Management Management

Facilitating Functions
 What is Project Integration Management?
Project Integration Management involves coordinating all of the
project management knowledge areas throughout a project’s
life cycle.
The seven main processes:
1. Develop project charter
2. Develop preliminary project scope statement
3. Develop project management plan
4. Direct and manage project execution
5. Monitoring and control the project work
6. Perform integrated change control
7. Close the project

Source: PMBOK Guide Third Edition

Planning Process for Selecting IT Projects
IT Planning Stages Results produced

Tie IT strategy to mission and

vision of organization
IT
Strategic Identify key business areas
Planning
Business Area Document key business processes
Analysis that could benefit from IT
Define potential projects.
Project Planning Define project scope, benefits,
and constraints
Select IT projects
Resource Allocation
Assign resources
 Methods for Selecting Projects
 Focusing on broad organizational needs

 Categorizing IT projects

 Performing Net Present Value or other financial

analysis

 Using a weighted scoring model

 Implementing a balanced scorecard

Bina Nusantara
 Using a Weighted Scoring Model
A weighted scoring model is
a tool that provides a systematic process for selecting projects
based on many criteria.

Possible criteria for IT projects

 Support key business objectives
 Has strong internal sponsor
 Has strong customer support
 Uses realistic level of technology
 Can be implemented in one year or less
 Provides positive NPV
 Has low risk in meeting scope, time, and cost goals
 Sample Weighted Scoring Model
Criteria Weight Project A Project B Project C Project D
Support key business objectives 25% 90 90 50 20
Has strong internal sponsor 15% 70 90 50 20
Has strong customer support 15% 50 90 50 20
Uses realistic level of technology 10% 25 90 50 70
Can be implemented in one year or less 5% 20 20 50 90
Provides positive NPV 20% 50 70 50 50
Has low risk in meeting scope, time, and cost goals 10% 20 50 50 90
Weighted Project Scores 100% 56 78,5 50 41,5
Weighted Project Scores

Project D

Project C

Project B

Project A

0 20 40 60 80 100
 Project Charters (1 of 2)
A Project Charter is
a document that formally recognizes the existence of a project and
provides direction on the project’s objectives and management.
Inputs in developing a project charter include:
 A contract: should not to replace project charter
 A statement of work: a document that describes the products or
services to be created by the project team; includes business need,
requirements summary, strategic plan and alignment of the project
with strategic goals
 Enterprise environmental factors: includes organization structure,
culture, infrastructure, HR policy, market conditions, industry risk,
and PM information systems
 Organizational process assets information: how organization
manages its business processes, shares knowledge and promotes
learning
 Project Charters (2 of 2)
Format of project charters vary, but should include at least the following information:
 Project’s title and date of authorization
 Project manager’s name and contact information
 Summary schedule, including planned start and finish dates and summary
milestone schedule if available
 Summary of the project’s budget or reference to budgetary documents
 Brief description of the project objectives, business needs or other justification
for authorizing the project.
 Summary of the planned approach for managing the project, describing the
stakeholder needs and expectations, important assumptions and constraints and
communications management plan, as available
 A roles and responsibilities matrix
 A sign-off section for signatures of key project stakeholders
 A comments section in which stakeholders can provide important comments
related to the project
Sample Project Charters (1 of 2)
Sample Project Charters (2 of 2)
 Project Management Plan
A project management plan is
a document used to coordinate all project planning documents and help guide a
project’s execution and control
Major Section
Section Topics
Headings
Purpose, scope and objectives; assumptions and constraints; project
Overview deliverables, schedule and budget summary; evolution of the plan

Project Organization External interface, internal structure; roles and responsibilities

Start-up plans: estimation, staffing, project staff training plan
Managerial Process Work plan: activities, schedule, resource and budget allocation
Plan Control plan: risk management plan, close out plan

Technical Process Process model; methods, tools and techniques; infrastructure plan;
Plan product acceptance plan
Configuration management plan; verification and validation plan;
Supporting Process documentation plan, quality assurance plan; reviews and audits:
problem resolution plan; process improvement plan; subcontractor
Plan
management plan
 Integrated Change Control

Integrated Change Control involves identifying, evaluating and

managing changes throughout the project life cycle.

Three main objectives:

1. Influencing the factors that creates change to ensure
that changes are beneficial
2. Determining that a change has occurred
3. Managing actual change as they occur

A baseline is The approved project management plan plus approved

changes.
 Change Control on
Information Technology Projects
• Former view: the project team should strive to do exactly what
was planned on time and within budget
• Problem: stakeholders rarely agreed up-front on the project
scope, and time and cost estimates were inaccurate
• Modern view: project management is a process of constant
communication and negotiation
• Solution: changes are often beneficial, and the project team
should plan for them
 Change Control System

• A formal, documented process that describes when and how

official project documents and work may be changed
• Describes who is authorized to make changes and how to
make them
 Change Control Board (CCB)
• A formal group of people responsible for approving or
rejecting changes on a project
• CCBs provide guidelines for preparing change requests,
evaluate change requests, and manage the implementation of
approved changes
• Includes stakeholders from the entire organization
 Closing Project

To close a project, you must finalize all activities and

transfer the completed or cancelled work to the
appropriate people.
 Closing Project
The main outputs of closing projects are:
 Administrative closure procedures: such as approval for all project
deliverables
 Contract closure procedures: describe the methodology for making
sure the contract has been completed, including delivery of goods
and services an payment for them
 Final product, services or results: making sure the project sponsors
receive delivery of the final product, services or result they expected
when they authorized the project
 Organizational process asset updates: they are list of project
documentation, project closure documents, historical information
produced by the project; final project report, includes a transition
plan to operation; lessons learned report
 Project Management Knowledge
Areas (1 of 2)

 Project Integration Management

 Project Scope Management
 Project Management Framework
Project
Portfolio
Nine Knowledge Areas Core To ols and
Techniques Project 1
Functions Project 2
Project 3
Scope Time Cost Quality
Project 4
Management Management Management Management

Project
Project Integration Management
Success
Stakeholder s’
needs and
expectations Procurement
HR Communication Risk
Management Management Management Management

Facilitating Functions
 Work Breakdown Structure
Work Breakdown Structure (WBS) is
a deliverable oriented grouping of the work involved in a project
that defines the total scope of project involves.

 Reduces complex projects to a series of tasks that can be

planned.
 WBS represents the project in the form of a hierarchy of goal,
objectives and activities.
 Identifies activities to be done from beginning to
completion of the project.
 Foundation for the definition, planning, organising and
controlling of the project.
 Work Breakdown Structure (WBS)
 In order to create a WBS, you should:
 Note the project goal in a simple form.
 List the most important milestones toward reaching this goal.
 Determine the necessary tasks for each milestone.
 Clearly define tasks (reduce confusion and overlap between
tasks).
 Composition of a Project (WBS)

Overall goal

Objective Objective
Objective

Activities Activities
Activities
 Sample of a simple Work Breakdown Structure
CAKE – Mum’s Cake

CAKE 1 CAKE 2 CAKE 3

Prepare Pan Prepare Mixed Batter Bake Cake
CAKE 2.1 Tina – 6 min
Tina – 30 min
Tony – 20 min Measure dry
CAKE 1.1 ingredients Cake 3.1
Pre heat oven Put pan in oven
CAKE 2.2 Tina – 1 min
Tony – 1 min Mix dry ingredients Tony – 1 min
CAKE 1.2 CAKE 2.3 Tony – 5 min Cake 3.2
Grease pan Measure wet Check with
ingredients toothpick
Tina – 1 min
CAKE 2.4 Tony – 4 min Tina – 30 min
CAKE 1.3
Pour mixture Mix wet ingredients Cake 3.1
into pan Remove and cool
CAKE 2.5 Tina – 4 min
Mix all ingredients
 Bar Charts/Gantt Chart
Most projects, however complex, start by being depicted on a bar
chart.
The principles are very simple:
 Prepare list of project activities.
 Estimate the time and resources needed.
 Represent each activity by a bar.
 Plot activities on a chart with horizontal time scale showing
start and end.

Slide 26
 Bar Charts/Gantt Chart – Sample
Project: ____________________
Project Manager: ____________________
Date: _____________
March April May
ID Task Name Duration 2/27 3/5 3/12 3/19 3/26 4/2 4/9 4/16 4/23 4/30 5/7
1 Develop the Program 0 days 3/1
2 Theme 1 wk
3 Obtain Material 4 wks
4 Speakers 3 wks
5
6 Conference Site 0 days 3/1
7 Set date 1 day
8 Select site 1 day
9 Confirm Arrangements 1 day
10
11 Marketing 0 days 3/1
12 Obtain lists 2 wks
13 Design brochure 2 wks
14 Mail brochure 4 days
15 Register participants 8 days
 CPM: Critical Path Method
 Graphic network based
scheduling technique.
– Arrow Diagrams.
– Precedence Diagrams.
 Use activities created by the
WBS process.
 Analysis of timing and
 PERT chart for a project with five sequencing logic.
milestones (10 through 50) and six – Aids in identifying complex
activities (A through F). interrelationship of activities.
 The project has two critical paths:  Allows for easy revision of
activities B and C, or A, D, and F - giving schedule and simulation and
a minimum project time of 7 months evaluation of the impact of
changes.
with fast tracking.
 Also used as a control tool
 Activity E is sub-critical, and has a float during execution of the project.
of 2 months.
 Steps in Producing a Network
 List the activities.
 Produce a logical network of activities.
 Assess the duration of each activity.
 Produce a schedule - determine the start and
finish times and the float available for each
activity.
 Determine the time required to complete a
project and the longest path on the network.
– The longest path is the Critical Path.
 Assess the resources required.
Thank You