Project Management Overview PDF

Project Management Chapter 2: Project Management Overview Define a Project ​ Unique product or service (Completely new product or service) ​ Measured as "will be complete when a particular objective is achieved" ​ Projects are temporary in nature ​ Time-limited (definite start and...

Project Management Chapter 2: Project Management Overview Define a Project ​ Unique product or service (Completely new product or service) ​ Measured as "will be complete when a particular objective is achieved" ​ Projects are temporary in nature ​ Time-limited (definite start and end dates) ​ Project ends when the objectives are achieved or abandoned Operation ​ ongoing and repetitive ​ Involve work that is continuous without an ending date and with the same processes repeated to produce the same results. Project Success ​ Traditionally: on time, within budget, and delivers the promised scope ​ More effective measure: satisfied customer Project Management Project management is applying knowledge, skills, tools, and techniques to meet project requirements. It involves the 5 Process Groups: ​ Initiating – Defining the project and getting approval. ​ Planning – Setting goals, budgets, schedules, and risks. ​ Executing – Doing the work and managing the team. ​ Monitoring & Controlling – Tracking progress and making adjustments. ​ Closing – Completing and evaluating the project. Project Constraints ​ Cost - is the budget and resources ​ Scope - What needs to be done ​ Quality - Meeting standards and expectation  ​ Risk - Uncertainties that could impact success ​ Resources - Availability of people, equipment and materials ​ Time - Project deadline Triple Constraint ​ All constraints grouped into three: o​ Cost o​ Scope o​ Time Project Stakeholders (Who is Involved?) Stakeholders are individuals or groups affected by the project. Key stakeholders include: ​ Project Sponsor – Provides funding and overall support. ​ Project Manager – Leads the project, ensures goals are met. ​ Project Team Members – Perform tasks and contribute expertise. ​ Customers/Clients – Use the final product or service. ​ Suppliers/Vendors – Provide materials or services needed. ​ End Users – People who will directly use the product/service. Project Stakeholders Any individual, group, or organization who may affect, be affected by or perceive itself to be affected by a decision, activity, or outcome of the project. ​ Functional Managers – Responsible for managing the work related to the functional areas of the business. ​ Sponsor – Provides resources and support for the project, is accountable for the project success, and serves as an escalation point for important issues. ​ Project Team – Group of persons that carries out the project work. Project Success Criteria A project is considered successful if it: ✅ Achieves its goals and objectives. ✅ Stays within budget and meets the deadline. ✅ Delivers the expected quality and value. ✅ Satisfies stakeholders. Why Project Management is Important ​ Improves efficiency by setting clear goals and deadlines. ​ Reduces risks through planning and monitoring. ​ Ensures better resource management (money, time, people). ​ Increases chances of project success by keeping everything organized. Project Management Expertise ​ Application knowledge ​ Understanding the Project Environment ​ Management knowledge and skills (Interpersonal Skills) 1.​ Communication 2.​ Influence 3.​ Leadership 4.​ Motivation 5.​ Negotiation 6.​ Problem solving Project Management Standards ​ Standards Organizations o​ PMI (Project Management Institute) o​ IPMA (International Project Management Association) ​ Certifications: CAPM, PMP, and others Chapter 3: The Project Life Cycle The Project Life Cycle outlines the stages a project undergoes from start to finish, ensuring systematic progress toward objectives. It consists of four primary phases: Initiation, Planning, Implementation, and Closure. A.​ Initiation Phase 1. Initiation Phase In this initial phase, the project's purpose or need is identified, often addressing a business problem or opportunity. Key activities include: ​ Developing a Business Case: Documenting the need and proposing solution options. ​ Conducting a Feasibility Study: Assessing whether the proposed solutions are practical and beneficial. ​ Appointing a Project Manager: Assigning a leader to oversee the project. ​ Identifying Stakeholders: Recognizing all parties affected by the project. This phase concludes with a decision to proceed to detailed planning. B.​ Planning Phase Here, the project is planned in detail to achieve its objectives. Key activities include:  ​ Defining Scope: Outlining all work required. ​ Setting Objectives: Establishing clear, measurable goals. ​ Developing a Project Plan: Creating schedules, budgets, and resource allocations. ​ Risk Management Planning: Identifying potential risks and mitigation strategies. This phase ensures a comprehensive roadmap is in place. C.​ Implementation (Execution) Phase Also known as the execution phase, this is where plans are put into action. Key activities include: ​ Executing Project Plan: Performing tasks as scheduled. ​ Resource Management: Allocating and managing resources effectively. ​ Quality Assurance: Ensuring deliverables meet required standards. ​ Stakeholder Communication: Keeping all parties informed of progress. Regular monitoring and adjustments are essential to stay on track. D.​ Closing Phase In this final phase, the project is formally completed. Key activities include: ​ Delivering Final Products: Handing over completed deliverables to the client. ​ Releasing Project Resources: Freeing up personnel and materials. ​ Conducting Post-Project Review: Evaluating successes and areas for improvement. ​ Documenting Lessons Learned: Recording insights for future projects. This phase ensures a smooth transition and valuable feedback for future endeavors. Chapter 4: Framework for Project Management Project Management as a Profession ​ Body of knowledge ​ Standards ​ Professional organizations ​ Issue: Can an expert PM move from one industry to another? Project Management Standards (two major organizations with worldwide impact on the practice of project management:) ​ PMI (Project Management Institute) and IPMA (International Project Management Association) certifications ​ PMP (Project Management Professional)and CAPM certifications PMBOK (Project Management Body of Knowledge) Knowledge Areas ​ Managing Integration - Ensures all project activities align by developing the project charter, scope statement, and plan to direct, manage, monitor, and control changes effectively. ​ Managing Scope - Establishes clear project boundaries through a work breakdown structure (WBS), ensuring tasks are well-defined, verified, and controlled. ​ Managing Time/Schedule - Keeps projects on track by defining tasks, sequencing activities, estimating resources and durations, and maintaining schedule control. ​ Managing Costs - Optimizes resource allocation by planning, estimating, budgeting, and controlling costs to ensure value creation. ​ Managing Quality - Ensures deliverables meet performance standards through quality planning, assurance, and control. ​ Managing Human Resources - Focuses on recruiting, developing, and managing the project team to maximize efficiency and productivity. ​ Managing Communication - Facilitates clear and structured communication across project participants, managers, and stakeholders through planning, distribution, reporting, and engagement.  ​ Managing Risks - Identifies, analyzes, and mitigates potential risks, ensuring proactive planning and response to uncertainties. ​ Managing Procurement - Oversees vendor selection, contract administration, and closure to ensure smooth procurement processes. ​ Managing Stakeholders - Identifies key stakeholders, assesses their influence, and maintains strong relationships to align expectations with project goals. Introduction to the Project Management Knowledge Areas Project Start-Up and Integration - The start-up of a project is similar to the start-up of a new organization. The project leader develops the project infrastructure used to design and execute the project. The project management team must develop alignment among the major stakeholders—those who have a share or interest—on the project during the early phases or definition phases of the project. Project Scope ​ Defines the project's objectives ​ Agreement between sponsor and team ​ Changes in scope require a defined approval process Project Schedule and Time Management ​ WBS defines work packages ​ Schedule created based on dependencies and estimated durations ​ Software tools may assist in managing schedules Project Costs ​ Develop a budget ​ Estimate methods ​ Plan cash flow  ​ Track expenditures Project Quality ​ Define quality standards ​ Methods to achieve and measure standards Project Team: Human Resources and Communications -​ Two Types of Team Members: 1.​ Functional Managers - focus on the technology of the project 2.​ Process Managers - who have expertise in estimating, cost tracking, planning, and scheduling ​ Identify and manage project team ​ Develop and motivate team Communication ​ Communication plan defining audience, method, frequency, and responsible team members ​ Completing a complex project successfully requires teamwork, and teamwork requires good communication among team members Two Categories of Communication - Synchronous and Asynchronous Risk Management ​ Identify, analyze, and manage risks Procurement ​ Contracts and procurement strategies Stakeholder Management ​ Identify and engage stakeholders ​ Maintain a stakeholder register PMI Process Groups ​ Initiating ​ Planning  ​ Executing ​ Monitoring & Controlling ​ Closing Scrum Development ​ Agile methodology ​ Iterative approach using sprints (2-4 weeks) ​ Key roles: Product Owner, Scrum Master, Development Team The Project Management Office (PMO) ​ Align projects with organizational objectives ​ Set project standards ​ Provide resources, training, and mentorship Typical objectives of a PMO are: ​ Help ensure that projects are aligned with organizational objectives ​ Provide templates and procedures for use by project managers ​ Provide training and mentorship ​ Provide facilitation ​ Stay abreast of the latest trends in project management ​ Serve as a repository for project reports and lessons learned Chapter 5: Project Stakeholder Management Stakeholder Definition ​ People, groups, or organizations impacted by the project ​ individuals who either care about or have a vested interest in your project. Key stakeholders can make or break the success of a project. Even if all the deliverables are met and the objectives are satisfied, if your key stakeholders aren’t happy, nobody’s happy. Stakeholder Management The Project Team 1. Top Management Includes: ​ President, Vice Presidents, Directors, Division Managers, Corporate Operating Committee​  ✔ Support from top management helps in recruiting the best staff and acquiring necessary resources​ ✔ High visibility can enhance the project manager’s professional standing​ ✘ Failure is highly visible and costly, especially for large projects ​ How to Deal with Top Management:​ Develop in-depth plans with major milestones for approval​ Ask about their information reporting needs and frequency​ Create a scheduled status reporting methodology​ Keep them informed about project risks and potential impacts 2. The Project Team ​ Includes people dedicated full-time or borrowed part-time ​ Project managers must provide leadership, direction, and support ​ ✘ Borrowed team members have other priorities​ ✘ Juggling multiple projects may cause missed deadlines​ ✘ Personality conflicts can arise​ ✘ Missed deadlines might be discovered too late Effective Management Strategies: ​ Involve team members in project planning ​ Meet privately and informally (e.g., lunch or coffee) ​ Be available for concerns anytime ​ Encourage teamwork and cooperation ​ Conduct project performance reviews 3. Your Manager ​ The boss decides the project assignment and available resources How to Work Effectively with Your Manager: ​ Understand how your performance will be measure. ​ Ask for clarification when directions are unclear ​ Develop an acceptable reporting schedule ​ Communicate frequently 4. Peers ​ Colleagues at the same organizational level, may or may not be part of the project Challenges:​ ✘ Limited control over peers​ ✘ Political maneuvering or sabotage​ ✘ Personality or technical conflicts​ ✘ Envy of peers who wanted to lead the project​ ✘ Conflicting instructions from different managers How to Gain Peer Support: ​ Secure top management’s support to empower you as the project manager ​ Confront dysfunctional behaviors directly ​ Ask for full peer support and schedule frequent review meetings ​ Set clear goals and performance standards 5. Resource Managers ​ Control resources that project managers need Why a Good Relationship is Important:​ ✔ Ensures access to the best staff and equipment​ ✘ Poor relationships may result in resource limitations 6. Internal Customers ​ individuals within the organization who are customers for projects that meet the needs of internal demands. Common Challenges:​ ✘ lack of clarity about precisely what the customer wants​ ✘ Lack of documentation​ ✘ Insufficient knowledge of customer operations​ ✘ Unrealistic deadlines, budgets, or specifications​ ✘ Hesitancy to sign off or accept decisions​ ✘ Scope changes Best Practices: ​ Learn the client organization’s culture and terms ​ Clarify requirements and specifications in writing ​ Establish a change procedure ​ Make the project manager the focal communication point 7. External Customers ​ customers when projects could be marketed to outside customers. 8. Government ​ In regulated industries (pharmaceutical, banking, military), project managers deal with various government levels (municipal, provincial, federal, international) 9. Contractors, Subcontractors, and Suppliers ​ External experts or vendors providing services/materials Challenges:​ ✘ Work quality issues​ ✘ Cost overruns​ ✘ Schedule delays Key Considerations: ​ Effective conflict management and negotiation skills ​ Careful monitoring of supplier and contractor performance ​ Proactive risk management to avoid disruptions Politics of Projects -​ Project managers have direct control over very few things; therefore their ability to influence others – to be a good politician – may be very important. Steps a good project politician should follow:  ​ Assess the Environment - Identify all the relevant stakeholders. ​ Identify Goals ​ Define the Problem - The question “What is the real situation?” should be raised over and over.\ Culture Stakeholders -​ When project stakeholders do not share a common culture, project management must adapt its organizations and work processes to cope with cultural differences. 3 major aspects of cultural difference that can affect a project: 1.​ Communication - the most visible manifestation of culture. 2.​ Negotiation - the greatest barrier to communication. 3.​ Decision Making - Managing Stakeholders -​ involves identifying, analyzing, and engaging all individuals or groups with a vested interest in the project. As the number of stakeholders increases, so does project complexity, with varying levels of business or emotional investment influencing execution. Disagreements among stakeholders further impact decision-making and project direction. Effective stakeholder management ensures alignment of interests, mitigates conflicts, and maintains project momentum by balancing diverse expectations and influences. Relationship Building Tips ​ Include those impacted by the project and those who can impact the project. ​ Begin building strong relationships early. 1.​ Analyze Stakeholders -​ Conduct a stakeholder analysis to assess key participants. -​ Understand their problems, needs, interests, and motivations. -​ Define roles, levels of participation, and potential conflicts of interest. 2.​ Assess Influence -​ Measure each stakeholder’s influence on the project. -​ Consider “What’s in it for them?” to gauge their level of support. -​ Balance support vs. influence to prioritize stakeholder engagement. 3.​ Understand Expectations  -​ Clarify stakeholders’ specific expectations to avoid misalignment. -​ Ask for clarification when necessary. 4.​ Define “Success” -​ Different stakeholders may have different definitions of success. -​ Gather their definitions early and incorporate them into project objectives. 5.​ Keep Stakeholders Involved -​ Engage stakeholders beyond just reporting updates. -​ Schedule meetings, coffee, or lunch to build rapport. -​ Respect their time constraints and capacity to participate. 6.​ Keep Stakeholders Informed -​ Send weekly status updates (not too often, not too rare). -​ Hold regular project meetings—don’t let too much time pass. -​ Answer questions and emails promptly. -​ Regular communication builds trust and helps deliver bad news smoothly. Tools to Help Stakeholder Management Chapter 7: Project Initiation Purpose of Initiation Phase ​ Define business problem or opportunity ​ Create a business case ​ Form project team Business Case ​ Problem or opportunity definition ​ Alignment with organizational objectives ​ Analysis of benefits, costs, and risks Financial Considerations ​ Net Present Value (NPV) ​ Rate of Return (ROI) ​ Payback Analysis A weighted decision matrix, therefore, allows decision makers to structure and solve their problems by: ​ Specifying and prioritizing their needs with a list a criteria; then ​ Evaluating, rating, and comparing the different solutions; and ​ Selecting the best matching solution. A weighted decision matrix is a decision tool used by decision-makers. A decision matrix is an array presenting on one axis a list of alternatives, also called options or solutions, that are evaluated regarding, on the other axis, a list of criteria, which are weighted depending on their respective importance in the final decision to be taken. Financial Considerations NPV - Net present value ROI Return on investment (ROI) is a performance measure used to evaluate the efficiency of an investment or to compare the efficiency of a number of different investments. It is one way of considering profits in relation to capital invested. Project Charter ​ Provides approval to proceed to planning ​ Typical contents: o​ Identification section o​ Project purpose o​ Measurable objectives o​ High-level requirements o​ Constraints, assumptions, risks o​ Budget o​ Stakeholder list o​ Approvals