Project Management Chapter 1 PDF

Chapter 1 - Introduction to Project, Program, and Portfolio Management What is a Project - Unique purpose Temporary Drives Change & enables value creation Requires resources Should have a primary customer Involves uncertainty Advantages of Using Formal Project Management: - Lower costs Improved P...

Chapter 1 - Introduction to Project, Program, and Portfolio Management What is a Project - Unique purpose Temporary Drives Change & enables value creation Requires resources Should have a primary customer Involves uncertainty Advantages of Using Formal Project Management: - Lower costs Improved Productivity Higher profit margins Positive impact on meeting strategic goals Better control of financial, Physical, and Human Resources What is a Project Management - Application of Knowledge, skills, tools and techniques to project activities to meet project requirements - Project managers strive to meet the triple constraint (project scope, time And cost goals) & facilitate the entire process to meet needs and expectations of project stakeholders Two main approaches in Project Management Methodology: - Topic (Knowledge Areas) Time (Process Areas) Project Management Knowledge - Scope: involves working with all appropriate stakeholders to define, gain, written agreements For, and manage all the work required to complete the project successfully. Time: How long it takes, create a schedule, ensure timely completion of the project Cost: Budget Quality: Ensures project will satisfy the needs Resource management: Concerned with making effective use of people & physical resource needed for the project Communication: involves collecting, disseminating, storing project information Risk: Identifying analyzing, and responding to risks related to the project. Procurement: Involves acquiring or procuring goods and services for a project from outside the organization. Stakeholder focuses on identifying project stakeholders, understanding their needs and expectation, engaging them throughout the project. Project Management Tools and Techniques - Assist managers and their teams in many aspects Scope, Time, Cost Project Success Define: - Met scope, time, costs goals Project satisfies customers Met its objective Reason why tech. project succeed: - Funding, Expertise, Engagement from all stakeholders The PMBOK (Project Management Body of Knowledge) - Framework - Widely recognized guidebook for project management. Provides best practices and guidelines for managing projects effectively. It covers different areas like starting a project, planning, executing, monitoring, and closing it. The PMBOK is used by project managers as a reference to help them manage their projects successfully. It's not a strict set of rules, but rather a helpful resource that can be adapted to different projects and industries Models, Methods, Artifacts - Model is a thinking strategy to explain a process, framework (Leadership models, change models) Method means achieving an outcome, results (Tools and techniques) Artifact can be a template, document (project charter, contract) Project Portfolio Management Project Portfolio Management (PPM) is a strategic approach to managing a collection of projects, programs, and other initiatives within an organization. Involves making decisions about which projects to pursue, allocating resources effectively, and aligning projects with the organization's goals and objectives. The main goal of project portfolio management is to maximize the value and benefits that an organization can achieve from its portfolio of projects. It helps organizations prioritize and select the right projects based on their potential return on investment, strategic fit, resource availability, and other criteria. PPM involves several key activities, including: Project Prioritization: Evaluating, ranking projects based on their benefits, risks, resource requirements. Resource Allocation: Optimizing the allocation of resources, such as budget, personnel, and equipment. Risk Management: Assessing and managing risks associated with the projects in the portfolio to minimize potential negative impacts. Performance Monitoring: Tracking and evaluating the progress, performance, and outcomes of projects in the portfolio to ensure they are on track and delivering the expected results. Portfolio Balancing: Maintaining a balanced mix of projects that align with the organization's objectives, taking into account factors like risk diversification, resource capacity, and market dynamics. By implementing project portfolio management practices, organizations can make informed decisions, optimize resource allocation, mitigate risks, and achieve better overall project success rates. Project and Program Management Compared to Project Portfolio Management Project & Program management address questions like: - Are we carrying out projects well? Are projects on time and budget? Do project stakeholders know what they should be doing? Portfolio management addresses questions like: - Are we working on right projects, areas? Do we have the right resources to be competitive? Predictive, Agile, and Hybrid Project Management Agile project management: called adaptive project management, is used to describe an approach where the project cannot be well-define upfront, incremental releases are desired, and changes are expected. Predictive project management: called also waterfall, traditional project management are terms to describe an approach where almost everything Is controlled, there is a single final product, service, results are delivered at the end of the project Hybrid project management: mix of agile and predictive Scrum - Scrum is an agile project management framework used for managing and delivering complex projects. It is based on iterative and incremental development principles and emphasizes collaboration, adaptability, and continuous improvement. Scrum is widely used in software development but can also be applied to other industries and projects. Important Project Managers Skills: - Application area (Domain, Industry, Market) Project environment (politics, culture, change management) General Business (financial management, strategic planning) Human relations (leadership, motivation, communication) Global Issues - Talent development for a project and program managers is a top concern Basic project management techniques are core competencies Organizations want to use more agile approaches to project management Benefits realization of projects is a key metric Ethics in Project Management - Project managers often face ethical dilemmas