Project Management Fundamentals

• Project Management is a presentation given by Olivia Wilson

Introduction to Project Management

• A project can be defined as a concept, and a project can have multiple characteristics.
• Project Management has a concept, definition, and functions.
• Knowing who a project manager is and understanding their roles/responsibilities are important
• Various types of Projects exist: Industrial, Telecoms, Research, and more.
• Project selection methods are: Agile, Waterfall, Scrum, and Kanban Models.

Introduction to Projects

• A project is something of note, or special significance
• Projects are important for acheiving goals
• A distiction is drawn between projects and operations

Definition of project

• A temporary effort is undertaken to deliver a unique product, service, or result.
• Projects often involve defined objectives, deliverables, timelines, and resources.

Importance of projects in achieving goals

• Projects provide focused effort.
• Projects allow Innovation and creativity
• Projects need efficient use of resources
• Clear accountability is a must for projects
• Teams must Adapt to change
• It is important to have Measurable Success
• Strategic alignment important for projects
• Projects provide Improved Collaboration
• Projects require Risk Management
• Projects give Long-term Value Creation

Distinction Between Projects and Operations

• Project definition: A temporary endeavor to create a unique product, service, or result.
• Operations definition: Ongoing and repetitive activities to sustain the organization's functionality.
• Project duration: Temporary, with defined start and end date.
• Operations duration: Continuous, with no defined end.
• Project objective: Achieves a specific, unique goal or deliverable.
• Operations objective: Maintains and optimizes existing processes.
• Project output: Produces a unique deliverable (product, service, or result).
• Operations output: Produces repetitive outputs or services.
• Project change focus: Drives change, innovation, or improvement.
• Operations change focus: Focuses on maintaining stability and efficiency.
• Project scope: Dynamic and evolves throughout the project lifecycle.
• Operations scope: Fixed and defined by the ongoing nature of operations.
• Project risk level: Higher risk due to innovation and uncertainty.
• Operations risk level: Lower risk due to routine and established processes.
• Project resources: Temporary allocation of resources, often project-specific.
• Operations resources: Permanent allocation of resources for operational needs.
• Project example activities: Building a new office; developing a new product.
• Operations example activities: Manufacturing products; providing customer support.
• Project Management Approach: planning, executing, closing
• Operations management Approach: optimizing efficiency/consistency.

Characteristics of a Project

• Projects are Temporary
• Projects are Unique
• Projects are Goal-oriented
• Projects have Constraints
• Projects are Cross-functional

Concept and Definition of Project Management

• Project Management is a structured discipline that involves planning, organizing, and controlling resources, tasks, and timelines to achieve specific project goals.
• It encompasses applying different tools, techniques, and methodologies.
• Balancing scope, time, cost, quality, resources, and risks is key for project restraints.
• Project Management ensures a project's objectives are achieved efficiently and aligned with strategic goals.

Project Management Definition

• Project Management is defined as:"The application of knowledge, skills, tools, and techniques to project activities to meet the project requirements."
• Key aspects of project management is: Knowledge, Skills, Tools and Techniques, Project Activities, and Requirements

Key Features of Management

• Task management is the first step
• Time must be tracked
• Project Scheudling is necesary
• Communication between stake holders
• Reporting on project progress is key

Functions of Project Management

• Proeject Planning
• Cost Estimation and budgetting
• Resource Management
• Shedule Managment
• Risk Management

Why Project Management is important

• Allows for better project planning
• Brings in more prodcutivity
• Allows for maximum resource utilization
• Includes risk management
• Allows for Quality control
• Allows for Strategic Alignment
• Better communication between everyone involved
• Has Better decision making

Definition of a Project Manager

• Project Manager is an individual who is accountable for planning, executing, monitoring, controlling, and closing a project.
• Project manager ensures that the objectives are met while managing Stakeholder expectations

Key roles and responsibilities of a project manager

• Strategic Project Planning
• Manages Cross-Functional Teams
• Procurement Management
• Budgeting and Cost Management
• Manages Quality Control and Assurance
• Includes Risk Management
• Includes Stakeholder Management
• Communication Management
• Includes Resource and Time Managment
• Manages Change Management, Documentation, and Reporting

Phases in Project Lifecycle

• Project Initiation: Defines project vision, goals, and objectives; outlines clear milestones and project timeline; identifies potential risks and roadblocks.
• Project Planning: Outlines an estimated budget and plan for resource management; answers the "what", "how", and "when" of the project plan; and clarifies project scope,
• Project Execution: Monitors project status as actions are taken; engages stakeholders and team members in open communication; relies on predetermined systems to keep execution moving forward smoothly.
• Project Monitoring & Control: Tracks team performance against KPIs and goals; compares projected budget and scope outlines against project progress in the status quo; monitors quality of deliverables.
• Project Closure: Reflects on major wins and losses throughout the project lifecycle; delivers final deliverables and project outcomes; and provides an opportunity for team reflection and discussion.

Types of projects

• IT Projects
• Research & Development Projects
• Construction Projects
• Engineering Projects
• Marketing Projects

Project Selection Methods

• Cost-Benefit Analysis
• Payback Period
• Methods using Scaling
• Net Present Value (NPV)
• Constrained Optimization Methods
• Cash Flow (DCF) is discounted
• Opportunity Cost
• Internal Rate of Return

Cost-Benefit Analysis

• Cost-benefit analysis (CBA) is a data-driven method and compares the costs and benefits of a plan to determine its overall value and feasibility
• The goal is to calculate each option with the net cost or the benefit of each project
• The result of a Cost-Benefit Analysis) is often the Benefit-Cost Ratio (BCR). A project is cost-effective when the BCR is 1.0 or greater.
• Formula PV = FV / (1+r)n
• PV = Present Value
• FV = Future Value
• r = Discount Rate
• n = Number of periods
• If a CBA ratio is greater than 1.0 the project's expected benefits outweigh its costs, and the project is financially feasible

Payback Period

• Used in Capital Budgeting
• Payback is the Time required to recoup the funds expended in an investment/reach the break-even point
• A shorter payback period is generally better because it means the investment returns its value faster and can reduce risk

Scaling Methods

• Evaluation of Project Value
• Asssign a numeric value of to project based on specific creteria
• Goal: use model to rank/prioritze projects
• select based on important factors/ priorities
• Weigh each factor according to importance priorities
• Assign numerical value/criteria/weights to each factor
• calculate total score and choose the highest score for a project

Net Present Value NPV

• A metric used in project management
• Used to determine project profitability
• NPV is the difference in cash inflows and outflows over a period.
• To measure how much money is potentially gained or lost/ Used to decide if a project's anticipated financial gains will outweigh the current investment.
• A positive NPV means project can be profitable.
• A negative NPV means project may not be financially viable.
• If NPV = $20,000: Indicates the project is expected to generate a profit of $20,000 in today’s value.
• If NPV = -$5,000: The project is expected to result in a loss of $5,000 in today’s value.
• Formula = Cash-flow / (1 + i) ^ t - investment Today's value of the expected cash flows - Today's value of invested cash I is discount rate, t is number of time periods

Costrained Optimization Method

• Mathematical models of project selection/ larger projects/ complex/calculations that may not be clear
• Methods include linear, Non-linear, Interger,dynamic and ultiple objective programming.

Discounted Cash Flow

• A financial Analysis estimates investment value by disounting the cash flow back into the present value
• Budgeting technique used in industries like investment, real-estate and financial management.
• Used assess the value of projects by looking at the timeline and risk factors
• Discount Cashflow Formula : CF1 DCF = +.....+ CFn (1+r)1 (1+r)^2(1+r)
• CF= cash flow period r = interest rate n = cashflow for the final year

Opportunity Cost

• The value of the benefits that are not chosen
• Evaluates advantages/disadvantages of options
• Formula Return on best option- Return on chosen option

Internal rate on return

• Capital Budgeting calculation determine investment and ranking
• Discount rate wwhere net presence value would be at zero.
• Expected rate on return

Traditional Proeject Management Techniques Includes

• Waterfall
• sequential approach/ each phase must be completed prior
• Phases include initiation, planning, execution, controlling, and closing
• Advatages: Clear structure and easy to manage/ well defined
• Disdvantages: infelxible

Types of Project Management

• Traditional Project Management (Waterfall), Agile Project Management, Scrum, Lean Project Management, Kanban, Critical Path Method (CPM), Critical Chain Project Management (CCPM), Six Sigma, Hybrid Project Management & Adaptive Project Management (APM)

Agile Project Management

• A flexibl, iterative approach to manage a project
• Core Principles: Collaboration over contract negotiation, working, responding to change
• Best for evolving requirements and software development
• Advantage: Adaptable and encourages quick team changes
• Disdvantages: Requires close communication and not managed properly

Scrum

• A subset of Agile frameeork fixed into 2 to 4 week cycles
• Key Roles: Product Owner, Scrum Master, development team
• Best for software management, and projects that need feedback
• Increase productivity with work cycles and evoluatuins.
• Can not be suitable for all projects.

Lean Project Management

• Best for efficiency such as manufacturing material /logistics.
• Optimize the value by eliminating.

Kanban

• Visual workflow management method
• Best for tech issues and amrketing campaigns
• Core Principles: visualize, limit, focus on
• Advantage: project visibility
• Disadvantage: Less Structured/ hard track.

Critical path method - (CPM)

The task of longest indentify to manage task project can meet time schedule

• Tight Construction/enging project are best
• Key steps: identify critical path if there is a delay or not with effect scope

Six Sigma

• Methodology to define, measure, analyze, improve, control

Hybird management

• Flexible and adaptable to combine methods.

Types of Tools

• Study JIRA tool for Project Management
• Study branch-specific tools used for Project Management

Test your knowledge of project management principles. These questions cover key differences between projects and operations, benefits of project management, and the role of projects in achieving organizational goals. Questions cover accountability, financial analysis and more.