Project Management fundamentals

• Project definition: A unique work activity with a specific deliverable aimed at meeting a specific purpose
• Projects are one-off endeavors that differ from routine operational work
• They are complex and multidisciplinary

Purpose of a Project

• Assigning responsibility and authority to achieve organizational goals, outside of routine tasks

Project Examples

• Construction of new complexes
• Software creation
• Event planning
• Marketing campaigns
• Fundraising
• Aircraft design and building projects

Project Management vs. General Management

• Project management adapts to change, is critical, and is determined
• General management is routine, manages by exception, and modifies

Iron Triangle

• Interrelation between quality, cost, and time in project management
• Trade-offs arise when prioritizing different aspects
• Cheap and fast yields suffering quality
• Cheap and good causes more time
• Fast and good increases price

Project Management Goals

• Stay within budget
• Complete on time
• Deliver satisfactory results
• Minimize risks

Product Owner vs. Project Managers

• Product Owners use an Agile / Hybrid work environment
• Project Managers use a traditional work environment
• Product Owners are focused on the customer's voice, while Project Managers are focused on Business Stakeholders'
• Product Owners are responsible for Product Vision & Backlog Management
• Project Managers are responsible for Monitoring Schedule, Budget, and Scope
• Product Owners have the key goal Maximizing Business Value
• Project Managers have the key goal Logistical and Task Management
• Product Owners Define priorities, not direct management
• Project Managers are Responsible for the Project Team

Functional Organization

• Advantages: Employees develop expertise in a specific function and specialize
• Disadvantages: Poor communication between departments, and have a slow response to cross-functional project needs

Project organization

• Advantages: Clear project focus, efficient communication within the project team
• Disadvantages: Lack of continuity for team members after project completion

Matrix Organization

• Advantages: Improved communication between functions and projects with flexibility in adapting to changing project needs
• Disadvantages: Dual reporting can lead to conflicts with complexity in managing both functional and project responsibilities

How to Build a Team

• Define the vision, use a common tool-set, and create a road-map
• Engage in team-building activities to enhance collaboration
• Focus on creating solutions, team building, crisis management, and mentoring

How to Manage a Team

• Build a Healthy Team to Encourage More Collaboration which improves Communication
• Key Strategies: Ease up on micromanagement, and make communication and collaboration smooth and efficient

Project Activity

• Project Initiation: Defines vision, goals, objectives, timeline, and risks
• Project Planning: Outlines budget, resources, scope, and timeline
• Project Execution: Tracks progress, ensures communication, and uses systems for execution
• Project Monitoring & Control: Tracks performance against goals, ensures quality, and budget adherence
• Project Closure: Reviews successes, failure, and delivers final outcomes

Project Charter Components

• Details such as the project's purpose, objectives, resources, overview, and scheduling

Goal vs. Objective

• Goals establish the desired outcome/vision and often are broad.
• Objectives outline tangible steps to achieve goals, with a narrow scope

Requirement Types

• External: Requirements from outside the organization to which the project must adhere.
• Functional: Requirements relating to the performance of the project result.
• Operational: Requirements concerning the use of the project result.
• Design: Requirements pertaining to the realization of the project result.

Risk Management

• Risk refers to external circumstances beyond the project team’s control that can negatively impact the project
• Risk management plan defines potential risks:
• Administrative: Changes in processes, procedures, roles, and responsibilities.
• Cost: Budget limitations, inflation, manufacturing, and maintenance costs.
• Human: Errors, poor performance, communication issues, and conflicts.
• Labor: Availability, quality, skills, and role definition challenges.
• Logistical: Delays in material or work delivery.
• Marketability: User expectations, pricing, demographics, and economic factors.
• Organizational: Management changes, coordination issues, and office politics.
• Outside Factors: Competitor actions, regulations, and market shifts.
• Scope: Work definition, design errors, and user-driven scope changes.
• Technology: Success probability, scalability, and manufacturability.
• Time: Project duration, market timing, and approval delays.

Risk Analysis

• Qualitative Risk Analysis: Identifies and evaluates risks based on their severity.
• Quantitative Risk Analysis: Develops measurable assessments of risk probability using estimations

Work Breakdown Structure

• A hierarchical breakdown, PROJECT → Deliverables → Tasks

Horned Beast Diagram

• Framework for understanding a product's purpose and impact

Octopus Diagram Summary

• A model for defining the relationships between a product and its environment which includes FP and FC
• FP (Principal Functions): Core service functions
• FC (Constraint Functions): External factors affecting the product

Bottom-Up Budgeting

• Estimates are made at the task level and aggregated to form the total project budget

Top-Down Budgeting

• Overall budget is set at a high level and then distributed across departments and tasks

Comparison & Use Cases

• Bottom-Up is ideal for complex projects requiring precise cost estimates
• Top-Down works best for fast-moving, strategic projects where high-level financial control is essential
• Combination balances accuracy and efficiency.

Cost Estimation

• Involves calculating charges and resource costs, including direct costs and indirect costs

Predecessors and Successors in Project Scheduling

• Finish-to-Start (FS): Task B starts only after Task A finishes.
• Finish-to-Finish (FF): Task B can finish only after Task A finishes.
• Start-to-Start (SS): Task B starts only after Task A starts.
• Start-to-Finish (SF): Task B finishes only after Task A starts.

Lag and Lead

• Lag: delay between completion of prior task and the start of a successor task
• Lead: An overlap where a successor task starts before the prior task is fully completed