Introduction To Project Management PDF

CHAPTER1 INTRODUCTION TO PROJECT MANAGEMENT LEARNINGOBJECTIVES  Explain projects and project management  Understanding how projects fit into programs and portfolio management,  Discuss the role of the project manager, and...

CHAPTER1 INTRODUCTION TO PROJECT MANAGEMENT LEARNINGOBJECTIVES  Explain projects and project management  Understanding how projects fit into programs and portfolio management,  Discuss the role of the project manager, and 2  Describe the important background information on this growing profession. TABLE OF CONTENTS 1.1 What Is a Project? 1.2 What Is Project Management? 1.3 Program and Project Portfolio Management 1.4 The Role of the Project Manager 1.5 The Project Management Profession 3 1.1 WHAT IS A PROJECT? A project is “a temporary endeavor undertaken to create a unique product, service, or result.”  Operations,on the other hand, is work done in organizations to sustain the business.  Projects are different from operations in that they end when their objectives have been reached or the project has been terminated. 4 1.1A PROJECT ATTRIBUTES  Projectscome in all shapes and sizes. The following attributes help define a project further: 􀀁 A project has a unique purpose. Every project should have a well-defined objective. For example, to create a collaborative report with ideas from people throughout the company. Projects result in a unique product, service, or result. 5 1.1A PROJECT ATTRIBUTES 􀀁 A project is temporary. A project has a definite beginning and end. In the IT collaboration project, Anne might form a team of people to work immediately on the project, and then expect a report and an executive presentation of the results in one month. 6 1.1A PROJECT ATTRIBUTES 􀀁 A project is developed using progressive elaboration. For example, suppose that a few people submitted ideas for the IT collaboration project, but they did not clearly address how the ideas would support the business strategy of improving operations. The project team might decide to prepare a questionnaire for people to fill in as they submit their ideas to improve the quality of 7 the inputs. 1.1A PROJECT ATTRIBUTES 􀀁 A project requires resources, often from various areas. Resources include people, hardware, software, and other assets. For the IT collaboration project, people from IT, marketing, sales, distribution, and other areas of the company would need to work together to develop ideas. 8 1.1A PROJECT ATTRIBUTES 􀀁 A project should have a primary customer or sponsor. The project sponsor usually provides the direction and funding for the project. Executive support is crucial to project success. For example, the sponsor of a project to improve online product sales would be the vice president of sales. 9 1.1A PROJECT ATTRIBUTES 􀀁 A project involves uncertainty. Because every project is unique, it is sometimes difficult to define its objectives clearly, estimate how long it will take to complete, or determine how much it will cost. External factors also cause uncertainty, such as a project team member needing unplanned time off. 10 1.1B PROJECT CONSTRAINTS  Everyproject is constrained in different ways, often by its scope, time, and cost goals.  These limitations are sometimes referred to in project management as the triple constraint. 11 1.1B PROJECT CONSTRAINTS  To create a successful project, a project manager must consider : 􀀁 Scope: What work will be done as part of the project ? What unique product, service, or result does the customer or sponsor expect from the project? 12 1.1B PROJECT CONSTRAINTS 􀀁 Time: How long should it take to complete the project? What is the project’s schedule? How will the team track actual schedule performance? Who can approve changes to the schedule? 13 1.1B PROJECT CONSTRAINTS 􀀁 Time: How long should it take to complete the project? What is the project’s schedule? How will the team track actual schedule performance? Who can approve changes to the schedule? 􀀁 Cost: What should it cost to complete the project ? What is the project’s budget ? Who can authorize changes to the budget? 14 1.1B PROJECT CONSTRAINTS 15 1.1B PROJECT CONSTRAINTS 􀀁 Managing the triple constraint involves making trade-offs between scope, time, and cost goals for a project. 16 1.1B PROJECT CONSTRAINTS 􀀁 Other elements can also play significant roles:  Quality is often a key factor in projects, as is customer or sponsor satisfaction. 17 1.1B PROJECT CONSTRAINTS 􀀁 Other elements can also play significant roles:  Quality is often a key factor in projects, as is customer or sponsor satisfaction.  Resources are the main concern. For example, the entertainment industry often needs particular actors for movies or television shows. 18 1.1B PROJECT CONSTRAINTS 􀀁 Other elements can also play significant roles:  Quality is often a key factor in projects, as is customer or sponsor satisfaction.  Resources are the main concern. For example, the entertainment industry often needs particular actors for movies or television shows.  Risk can also affect major project decisions. A company might wait to start a project until the risks are at an acceptable level. 19 1.2 WHAT IS PROJECT MANAGEMENT?  Project management is “the application of knowledge, skills, tools, and techniques to project activities to meet project requirements”. 20 1.2 WHAT IS PROJECT MANAGEMENT? Illustration of the project management framework. 21 1.2A PROJECT STAKEHOLDERS  Stakeholders are the people involved in or affected by project activities, and include the :  project sponsor, would be the potential new homeowners who would be paying for the house. 22 1.2A PROJECT STAKEHOLDERS  Stakeholders are the people involved in or affected by project activities, and include the :  project sponsor, would be the potential new homeowners who would be paying for the house.  project team, would include several construction,workers, electricians, and carpenter. They would need to know if the required materials and equipment will be at the construction site. 23 1.2A PROJECT STAKEHOLDERS  support staff, might include the contractor’s administrative assistant that would support the project by coordinating meetings between the buyers, the contractor, suppliers, and other parties. 24 1.2A PROJECT STAKEHOLDERS  support staff, might include the contractor’s administrative assistant that would support the project by coordinating meetings between the buyers, the contractor, suppliers, and other parties.  suppliers, would expect exact details on the items (wood, windows, flooring, appliances, and other materials) they need to provide, and where and when to deliver those items. 25 1.2A PROJECT STAKEHOLDERS  support staff, might include the contractor’s administrative assistant that would support the project by coordinating meetings between the buyers, the contractor, suppliers, and other parties.  suppliers, would expect exact details on the items (wood, windows, flooring, appliances, and other materials) they need to provide, and where and when to deliver those items.  opponents, a neighbor might oppose the project because the workers make so much noise 26 that she cannot concentrate on her work at home. 1.2B PROJECT MANAGEMENT KNOWLEDGE AREAS  Project management knowledge areas describe the key competencies that project managers must develop. 27 1.2B PROJECT MANAGEMENT KNOWLEDGE AREAS 1. Project scope management involves defining and managing all the work required to complete the project successfully. 28 1.2B PROJECT MANAGEMENT KNOWLEDGE AREAS 2. Project time management includes estimating how long it will take to complete the work, developing an acceptable project schedule, and ensuring timely completion of the project. 29 1.2B PROJECT MANAGEMENT KNOWLEDGE AREAS 3. Project cost management consists of preparing and managing the budget for the project. 30 1.2B PROJECT MANAGEMENT KNOWLEDGE AREAS 4. Project quality management ensures that the project will satisfy the stated or implied needs for which it was undertaken. 31 1.2B PROJECT MANAGEMENT KNOWLEDGE AREAS 5. Project human resource management is concerned with making effective use of the people involved with the project. 32 1.2B PROJECT MANAGEMENT KNOWLEDGE AREAS 6. Project communications management involves generating, collecting, disseminating, and storing project information. 33 1.2B PROJECT MANAGEMENT KNOWLEDGE AREAS 7. Project risk management includes identifying, analyzing, and responding to risks related to the project. 34 1.2B PROJECT MANAGEMENT KNOWLEDGE AREAS 8. Project procurement management involves acquiring or procuring goods and services for a project from outside the performing organization. 35 1.2B PROJECT MANAGEMENT KNOWLEDGE AREAS 9. Project stakeholder management includes identifying and analyzing stakeholder needs while managing and controlling their engagement throughout the life of the project. 36 1.2B PROJECT MANAGEMENT KNOWLEDGE AREAS 10. Project integration management is an overarching function that affects and is affected by all of the other knowledge areas. 37 1.2C PROJECT SUCCESS How do you define the success or failure of a project? 38 1.2C PROJECT SUCCESS How do you define the success or failure of a project? Illustrating with an example of upgrading 500 desktop computers within three months for $300,000: 39  1.2C PROJECT SUCCESS 1. The project met scope, time, and cost goals. If all 500 computers were upgraded and met other scope requirements, the work was completed in three months or less, and the cost was $300,000 or less, you could consider the project successful. 40  1.2C PROJECT SUCCESS 2. The project satisfied the customer /sponsor. If the customers were not happy with important aspects of the project, it would be deemed a failure. Conversely, a project might not meet initial scope, time, and cost goals, but the customer could still be very satisfied. The project team spent more money than planned, but they were very polite and helped the users 41 solve several work-related problems.  1.2C PROJECT SUCCESS 3. The results of the project met its main objective, such as making or saving a certain amount of money, providing a good return on investment, or simply making the sponsors happy. 42 1.3 PROGRAM AND PROJECT PORTFOLIO MANAGEMENT  Two important concepts that help projects meet enterprise goals are:  the use of programs and  project portfolio management. 43 1.3A PROGRAMS A program is “a group of related projects, subprograms, and program activities managed in a coordinated way to obtain benefits and control not available from managing them individually”. 44  1.3B PROJECT PORTFOLIO MANAGEMENT  The differences between project management and project portfolio management. 45  1.3B PROJECT PORTFOLIO MANAGEMENT  PacificEdge Software’s product manager, Eric Burke, defines project portfolio management as “the continuous process of selecting and managing the optimum set of project initiatives that deliver maximum business value.” 46 1.4 THE ROLE OF THE PROJECT MANAGER  The project managers must:  work closely with the other stakeholders on a project, especially the sponsor and project team.  They are also familiar with the 10 project management knowledge areas and the various tools and techniques related to project management 47  1.4A PROJECT MANAGER JOB DESCRIPTION The job description for a project manager can vary by industry and by organization. Sites like indeed.com or Monster.com listed hundreds of thousands of job openings for project management, examples: 48 1.4B SUGGESTED SKILLS FOR PROJECT MANAGERS A 2013 survey by CIO.com listed seven skills project managers need in order to be effective and successful in leading projects: 1. Be highly organized. 2. Take charge and know how to lead. 3. Be an effective communicator. 4. Know how and when to negotiate. 5. Be detail-oriented. 6. Recognize and solve problems quickly. 49 7. Possess the necessary technical skills. 1.5 THE PROJECT MANAGEMENT PROFESSION  Tounderstand this line of work, it is helpful to briefly:  learn about the Project Management Institute (PMI) and some of its services (such as certification),  and examine the growth in project management software. 50  1.5A THE PROJECT MANAGEMENT INSTITUTE  The Project Management Institute (PMI), an international professional society for project managers founded in 1969, has continued to attract and retain members, reporting more than 449,000 members worldwide by late 2014. 51  1.5A THE PROJECT MANAGEMENT INSTITUTE  Note that there are other project management professional societies, such as:  the International Project Management Association (IPMA) and  the Association for Project Management (APM). 52  1.5B PROJECT MANAGEMENT CERTIFICATION  Professional certification is an important factor in recognizing and ensuring quality in a profession. 53  1.5B PROJECT MANAGEMENT CERTIFICATION  PMI provides certification as a Project Management Professional (PMP) — someone who has documented sufficient project experience and education, agreed to follow the PMI code of professional conduct, and demonstrated knowledge of project management by passing a comprehensive examination. 54  1.5B PROJECT MANAGEMENT CERTIFICATION  Some companies require that all project managers be PMP certified.  Any person with PMP certification can list, describe, and use the 10 project management knowledge areas. 55 1.5B PROJECT MANAGEMENT CERTIFICATION Growth in PMP Certification, 1993–2014 56  1.5C PROJECT MANAGEMENT SOFTWARE  The software tools can be divided into three general categories based on functionality and price: 􀀁 Low-end tools:  provide basic project management features,  generally cost less than $200 per user  are often recommended for small projects and single users  allow users to create Gantt charts. 57  1.5C PROJECT MANAGEMENT SOFTWARE  A Gantt chart is a standard format for displaying project schedule information by listing project activities and their corresponding start and finish dates in calendar form (created with Project 2013 software). 58 1.5C PROJECT MANAGEMENT SOFTWARE 􀀁 Midrange tools:  handle larger projects, multiple users, and multiple projects,  can produce Gantt charts and network diagrams (lay out the tasks in the order in which they need to be completed).  Prices range from about $200 to $1,000 per user. 59 1.5C PROJECT MANAGEMENT SOFTWARE 􀀁 High-end tools: referred to as enterprise project management software.  They provide robust capabilities to handle very large projects,  they have enterprise and portfolio management functions,  These products are generally licensed on a per-user basis, and  are accessible via the Internet. 60 SUMMARY  A project is a temporary endeavor undertaken to create a unique product, service, or result.  Projects are unique, temporary and developed incrementally; They require resources, have a sponsor, and involve uncertainty.  The triple constraint of project management refers to managing the scope, time and cost dimensions of a project. 61 SUMMARY  Project management is the application of knowledge, skills, tools and techniques to project activities to meet project requirements.  A framework for project management includes the project stakeholders, project management knowledge areas, and project management tools and techniques.  A program is a group of retaled projects, subprograms, and program activities managed in a 62 coordinated way to obtain benefits. SUMMARY  Project portfolio management involves organizing and managing projects and programs that contribute to the entire enterprise’s success.  Project managers play a key role in helping projects succeed. They must possess many skills in project management and their application area, such as IT. 63