Project Management Unit 1 PDF

Project Management Unit - 1  2 All of humankind’s most significant accomplishments – from building the great pyramids to discovering a cure for polio to putting a man on the moon – began as a project ...

Project Management Unit - 1  2 All of humankind’s most significant accomplishments – from building the great pyramids to discovering a cure for polio to putting a man on the moon – began as a project  3 Critical to sustainable economic growth Project management is the engine of constant innovation, the development of new products and services, and the enhancement of Why is Project productivity and work quality. It's the key to unlocking new jobs and gaining a competitive advantage. PM provides people with a robust set of tools that improves their Management ability to plan, implement, and manage activities to accomplish specific objectives. crucial? It is a results-oriented management style that drives collaborative relationships among diverse characters. Exciting opportunities await people skilled in project management  4 Why is PM crucial? Project management skills are not only critical to most careers, but also highly versatile, making them applicable across a wide spectrum of businesses and professions. Create new services, organise events, port expansions, Hospital restructuring, and upgrading information systems. The Project Management Institute (PMI) provides certification as a PMP (Project Management Professional) and CAPM (Certified Associate in Project Management) You may want to get the CAPM as a student  5 What is a Project?  6 Millions watch the World Cup Finals What do the Citywide WiFi system set to go live following headlines have Hospitals Respond to New Healthcare in common? Reforms Apple’s new iPhone Hits the Market j ec t s City receives Stimulus Funds to expand re p ro Al l a Light Rail Systems  7 A project is a temporary endeavour to create a unique product, service, or result. Significant Characteristics of a project are: Definition An established objective A defined lifespan with a beginning and an end Usually, the involvement of several departments and professionals Typically, doing something that has never been done before Specific time, cost, and performance requirements  8 It is not routine, repetitive work. A project is done only once What a project Taking class notes is routine, but writing a is not term paper is a project Responding to a supply chain request is routine, repetitive work, but developing a supply chain information system is not Routine manufacture of a Samsung Phone cannot be compared to designing a new Samsung Phone  9 Please fill out this form now https://tally.so/r/3qOaV2  10 A program is a group of related projects designed to accomplish a common goal over an extended period. Each project within a program has a project manager For example, a pharmaceutical organisation could have a Program versus program for curing cancer Project The cancer program includes and coordinates all cancer projects that continue over an extended time horizon Coordinating all cancer projects under the oversight of a cancer team provides benefits not available from managing them individually Program goals are closely related to broad strategic organisation goals The Project Lifecycle 11  12 They are in control, planning, scheduling, motivating, and ensuring the project's success They create a project team and organisation, providing a secure structure for the project's The Project execution Manager Instead of simply managing set processes, they must decide what and how things should be done. They must meet the challenges of each phase of the project lifecycle and even oversee the dissolution of their operation when the project is completed.  13 Agile Project Management  14 Rolling Wave Development - Agile  15 Compression of the product lifecycle Knowledge Explosion – Increased the Current Drivers complexity of projects; Increased the need to integrate divergent of Project technologies. Management Triple Bottom Line (People, Planet and Profit) Increased Customer Focus A Socio-Technical Approach 16  17 What is the primary goal of project management? a) To complete tasks randomly Question 1 b) To achieve project objectives within defined constraints c) To maximise profits at any cost d) To focus solely on technical aspects  Question 2 18 Which of the following is NOT a typical constraint in project management? a) Time (Schedule) b) Scope (Requirements) c) Cost (Budget) d) Creativity  Question 3 19 The project life cycle typically consists of which phases (in the correct order)? Initiation, Planning, Monitoring, Closure Planning, Execution, Initiation, Closure Initiation, Planning, Execution, Monitoring & Controlling, Closure Execution, Monitoring, Closure, Initiation  20 Which of the following statements best defines a project stakeholder? a) A person who provides funding for the project. b) Any individual, group, or organisation that can affect Question 4 or be affected by or perceive itself to be affected by a project's decision, activity, or outcome. c) The end-user or customer of the project's deliverables. d) A team member who is directly involved in completing project tasks.  Question # 5 21 Which of the following is a key characteristic of a project? a) It is a repetitive task b) It has a defined beginning and end c) It has unlimited resources d) It focuses on routine operations  22 Three Core Characteristics Knowledge Knowing a wide range of project management tools and techniques- and how and when to use them What you need Performance Your dedication and hard work, along with that of to be a good PM your team, are crucial for the successful delivery of a project. Personal Skills You must lead your team through the project lifecycle, so you must be skilled at managing people even if they don’t report directly. Make personal connections and help keep everybody on the right track.  23 Which of these characteristics was neglected? The following slides describe a failed project. You must spot the characteristic of a successful project manager that was neglected. Sometimes, more than one applies.  24 The project was delivered early but didn’t have all the features the customer requested. The VP had suggested a new requirements-gathering technique, but the PM shot it down because he’d never heard of it. Neglected characteristic: Knowledge Performance Personal Skills  25 The project was late because the team couldn’t meet the company’s standards for productivity. They were always coming to work late leaving early and taking long lunches. It seemed like the project manager didn’t think the project was important Neglected characteristic: Knowledge Performance Personal Skills  26 The project manager thought his job was to meet the deadline, so he demanded that the product be released on the date it was due, regardless of quality. The team wanted to create a high- quality product, and they fought with the PM throughout the project to try to get him to change his mind. In the end, the team washed their hands off the product after it was released and refused to support it. Neglected characteristic: Knowledge Performance Personal Skills  27 The project team had so many conflicts about the project that they couldn’t work together. They made decisions that undercut one another, and in the end, they couldn’t deliver anything at all. Neglected characteristic: Knowledge Performance Personal Skills  28 The project was late because the team cut corners, which led to sloppy work. They had to go back and fix all their mistakes. Neglected characteristic: Knowledge Performance Personal Skills  29 The project manager refused to learn to use the scheduling software and templates the company had bought for the team. Instead, he kept track of the schedule in his head and on his whiteboard. Near the end of the project, he realised that he’d forgotten about some important tasks and his ship date had slipped by two months. Neglected characteristic: Knowledge Performance Personal Skills  30 Understand your company’s big picture Your project is an essential part of your company's work, but you need to understand how it fits into the higher-level strategy your company is executing. That’s where programs and portfolios come in.  Portfolio 31 ¬ A portfolio is a group of projects or programs linked by a business goal. ¬ If an architecture firm were to remodel existing buildings and design new ones, it might split its efforts into separate New Construction and Remodeling portfolios since the goals for each are quite different.  Program 32 ¬ A program is a group of projects closely linked to the point that managing them together provides some benefit. ¬ From experience, the firm knows that creating huge skyscrapers is dramatically different from building residential homes, so residential home construction would be a separate program. ¬ Projects in a program are often dependent on one another, and Program management places a strong emphasis on these interdependencies, recognizing their critical role in successful project execution.  Project 33 ¬ A project is any work that produces a specific result and is temporary ¬ Projects always have a beginning and an end ¬ Building a house is a classic example of a project ¬ Projects can be part of programs or portfolios  34 Predictive Schedule, scope, and costs are defined up front Adaptive Project Lifecycle Repeatedly perform all project activities to deliver small pieces of the project that have value to its stakeholders. Those pieces are called increments The product of each iteration is an opportunity for feedback Each iteration provides a means of changing the scope of the work that will be done  35 Iterative Closer to predictive lifecycles than adaptive ones The team still tries to plan most of the work upfront but uses repeated loops within the project lifecycle to identify possible changes to scope, schedule, and cost baselines Project Lifecycle Those changes can be made throughout the project’s feedback loops Incremental Teams deliver small, usable pieces of work to their stakeholders for feedback through a series of iterations. Increments produced here cannot be considered final products but must be combined in a final iteration to be considered complete  36 What’s common to Portfolio, Program and Project management? Professions with proven processes Business Value All must use the processes, tools, and techniques that have worked for other Deal with Constraints managers to balance all constraints in their business environment  37 Project Charter – A brief ¬ A document that gives a: ¬ Project description ¬ Summary Schedule ¬ Business Case ¬ Known Constraints ¬ Authority to a project manager to start Portfolio or Program or 38 Project ¬ A company wanted to switch from a paper- based HR group to a software-based one. It spent some time looking into the best software packages for the job and decided to manage all the HR functions together since it needed the same people to help with all the work. ¬ It is a Program ¬ PES University wanted to build admissions websites for all its departments. Realising that all of the sites would be feeding into the same registration interface, it decided to manage them all together to save time. ¬ It is a Program  39 ¬ We can categorise everything a project manager does every day into three categories ¬ Gather product requirements ¬ Manage stakeholder requirements (Team, those who A day in the life of a pay for it, users, and everybody who might be affected by the Project Manager project along the way) – The sponsor is one of the most critical stakeholders. They provide financial and political support for the project. ¬ Deal with project constraints.  40 Project Constraints Let’s say some of your team members won’t be available for three weeks because they must attend a mandatory training session. Is that a constraint? Yes, it’s a resource constraint! Quality Constraint – Shouldn’t we always aim for high quality? Quality is more important for some projects than it is for others. We need to be realistic. Playground vs Heart Monitor for a medical device company – Is it the same or a different quality constraint?  41 Project Management Offices (PMO) ¬ They help you learn from all the work that’s been done in the past ¬ They will give you the templates and the guidance you need to make sure your project takes the right approach ¬ Three different kinds of PMO: ¬ Supportive – provide templates, standards ¬ Controlling—In addition to providing templates and prescribing frameworks, they also periodically review the work you’re doing on your project to ensure compliance, providing a sense of security and control. ¬ Directive – They give the PM to the team. The PM reports to the PMO. The reporting structure ensures that managers follow the frameworks and templates prescribed by the PMO. They have a lot of control over how things are done on projects.  42 A PMO is primarily established to: a) Replace the role of individual project managers. Question # 1 b) Centralize project documentation and reporting. c) Standardize project management practices and provide support. d) Act as a decision-making body for all project-related matters.  43 Which of the following is NOT a typical function of a PMO? a) Portfolio management Question # 2 b) Project methodology development c) Resource allocation across projects d) Direct execution of project tasks  44 Question # 3 A 'Directive' PMO is characterised by: a) Providing consulting services to project managers. b) Offering a supportive environment for project teams. c) Having direct control over projects and enforcing compliance. d) Focusing on high-level strategic planning and portfolio management.  45 A central challenge in establishing a PMO is often: a) Lack of technological tools to support PMO functions. Question # 4 b) Resistance from project managers who perceive a loss of autonomy. c) Difficulty in finding qualified PMO staff. d) Insufficient budget allocation for PMO activities.  46 Question # 5 Which of the following scenarios would best justify the establishment of a Project Management Office (PMO) within an organisation? a) A company with a history of completing projects on time and within budget. b) A small startup with limited resources and only a few ongoing projects. c) A large organisation with multiple complex projects requiring standardised processes. d) A non-profit organisation focusing on social impact rather than financial performance.  47 Organisation Environment Structure and Culture  48 Project management structures define how projects are organised and executed within an organisation Introduction to Project The choice of structure impacts communication, resource Management allocation, and decision-making Structures Functional Common structures Project-based include: Matrix Virtual  49 Projects are managed within existing functional departments Project team members report to functional managers Functional Advantages: Clear chain of command, efficient use of resources Structure Disadvantages: Lack of cross-functional coordination, potential for conflicting priorities Example: A marketing department uses only its staff and resources to run a campaign project.  50 Dedicated project teams work independently of functional departments Team members report directly to the project manager Project-based Advantages: Clear project focus, streamlined communication structure Disadvantages: Potential resource duplication, reintegration challenges post-project Example: A construction company forms a separate team for each building project, with dedicated staff and resources.  51 Combines elements of functional and project-based structures Team members report to both functional and project managers Types: Weak, Balanced, and Strong Matrix Matrix Structure Advantages: Efficient resource use, cross-functional collaboration Disadvantages: Potential conflicts between managers, complex reporting relationships Example: An IT company where software developers work on multiple projects while still belonging to their functional department.  52 Matrix structures blend functional and projectized organisational structures More about Two main types: Weak Matrix and Matrix Strong Matrix Structures Key difference: Level of authority given to project managers  53 The project manager has limited authority. Functional managers maintain Weak Matrix most of the control Structure The project manager acts more as a coordinator or expediter Example: IT department working on multiple projects  54 Strong Matrix Structure The project manager has significant authority More resources are allocated to projects The project manager has more control over the budget and personnel Example: Aerospace company developing a new aircraft  55 Project Manager Authority - Comparison Limited Coordinates Relies on Weak Matrix: decision-making across influence and power departments negotiation Substantial Can make Controls project Strong Matrix: decision-making staffing and resources power budget decisions  56 Reporting Relationships Weak Matrix: Team members report primarily to functional managers The project manager has an indirect influence Strong Matrix: Team members report to both project and functional managers The project manager has more direct authority  57 Pros and Cons Maintains Clear career Potential for Weak Matrix: functional paths for conflicting expertise specialists priorities Faster decision- Potential Better project Strong Matrix: making for resource conflicts focus and control projects between projects  58 Intermediate form between weak and strong matrix The project manager shares authority with functional managers Balanced Matrix Resources are shared more evenly between functional and project work Example: Software company developing multiple products  59 The project manager has moderate authority Functional managers retain significant influence Balanced Matrix Characteristics Team members report equally to both project and functional managers Resources are allocated more flexibly between projects and departments  60 Has more authority than in weak matrix, less than in strong matrix Collaborates closely with functional Project Manager managers on resource allocation in Balanced Matrix Shares decision-making power for project-related matters Requires strong negotiation and interpersonal skills  61 Project teams composed of members from different locations or organizations Relies heavily on technology for communication and collaboration Advantages: Access to diverse expertise, potential Virtual Structure cost savings Disadvantages: Communication challenges, potential for reduced team cohesion Example: A global research project with team members from universities in different countries collaborating remotely.  62 Factors to consider: Organisation size and culture Project size and complexity Choosing the Available resources right structure Need for innovation Industry norms Remember: The most effective structure may vary by project or evolve as the organisation grows.  63 The project manager has the most authority and power in a project- oriented organisation  64 In which organisational structure does the project manager have the least authority? a) Projectized Question b) Functional c) Matrix (Weak) d) Matrix (Strong)  65 Which project management structure best suits projects requiring high levels of cross-functional collaboration and expertise? a) Projectized b) Functional Question c) Matrix d) Hybrid  66 In a projectized organisation, which of the following is a potential DISADVANTAGE? a) Clear lines of authority for the project manager. Question b) Dedicated project team with focused objectives. c) Potential duplication of resources across projects. d) Efficient decision-making due to centralised authority.  67 A company is launching a new product and needs a structure that allows for both functional specialisation and project focus. Which structure would be MOST suitable? a) Balanced Matrix Question b) Weak Matrix c) Strong Matrix d) Projectized  68 An organisation is transitioning from a functional structure to a matrix structure. Which of the following challenges is MOST likely to arise during this transition? a) Difficulty in defining project scope and objectives. b) Resistance to change from employees accustomed to Question functional hierarchies. c) Lack of technical expertise in project management. d) Increased project costs due to the need for additional resources.  69 Identify the organization structure ¬ Imagine that you attend job interviews at multiple organisations. Can you figure out what kind of organisation each interviewer is representing? Let’s see!  70 Interviewer # 1 We’re looking for someone to work with our development manager to deliver our products on time. We have a good programming team; They need encouragement to meet their deadlines. You’ll be expected to keep good status meeting notes. If you run into any trouble with the team, kick it back to the development manager, and she’ll address the problem Functional Virtual Projectised PMO Matrix  71 Interviewer # 2 We need someone who can manage the whole effort from start to finish. You’ll need to work with the client to establish goals, choose the team, estimate time and cost, manage and track all of your decisions, and keep everybody in the loop on what’s going on. We expect the project to last six months. ¬ Projectised ¬ PMO ¬ Matrix ¬ Functional ¬ Virtual  72 Interviewer # 3 We have a project coming up that our customer service team needs. The project is a real technical challenge, so we’ve assembled a team of top-notch programmers to develop a good solution. We need a project manager to work with the programming manager. You would be responsible for the schedule, budget, and managing the deliverables, while the programming manager would have the personnel responsibilities. ¬ Projectised ¬ Functional ¬ Virtual ¬ Matrix  73 Interviewer # 4 Most of the work you’ll be doing is contract work. You’ll put together three different teams of software engineers, and you’ll need to ensure they build everything our customers need. And don’t forget you’ve got to stay within budget, and it’s got to be done on time! It’s a big job, and it’s your neck on the line if things go wrong. Can you handle that? Functional Virtual Matrix PMO Projectised  74 The project ran late, so the manager released it on time despite missing some features. Constraint affected: Managing The team wanted to add more testers to find defects, Project but the project manager overruled them Constraints - Constraint affected: Check A construction project manager assumed that the weather would be conducive to the plans to complete the job, but thunderstorms derailed the project Constraint affected:  75 Managing Project Constraints - Check The company didn’t have About halfway through the enough money to invest in the project, the PM realised the project, so it had to draft money was running out faster Constraint affected: people from other than expected. She reviewed departments to work part-time the schedule to find ways to to complete it. bring forward the deadline. The project manager didn’t take software licence fees into Constraint affected: account, which caused the Constraint affected: budget to balloon out of control  76 Organisation Process Assets An organisation is constantly learning from each project As teams learn new lessons, they are recorded in the organisation's process assets so they can be shared and help future teams avoid mistakes that have been made in the past If all project teams think about the best way to work and keep track of the practices that help them deliver products better and the ones that don’t, they can help future teams to keep improving the process new projects will use  77 Organisation Process Assets Don’t reinvent the wheel  78 Process – The way your organisation does its work Templates Policies – The rules your organisation follows when it works Vendor/Supplier lists on a project What are Procedures – The practical guides Change control guidance these assets? that describe the steps each team will follow when they do work Financial control guidance Estimation Methods  79 Organisational Process Assets ¬ Knowledge Repositories ¬ The records of past projects that the organisation has done ¬ Here, you’ll find all the lessons learned from past teams ¬ This is where the teams record their project metrics, past schedules, key takeaways, financial data, descriptions of configuration management, and other documentation that will be of use to others in the organisation  80 You can’t manage your project in a vacuum You can’t control everything that affects your projects These factors are: Enterprise People – The skills and organisational culture where you work Environmental Market – The way your company is performing in the market can affect the way you manage your project Factors Risk Tolerance –Some companies are highly tolerant of risk, and some are risk-averse Standards – Some companies depend on government standards to run their business, and when they change, it can have a significant impact (Banking, Healthcare) Databases—Where your company stores its data can make a big difference in the decisions you make regarding your project.  81 The process framework and the project manager’s role It all fits together  82 All projects, no matter how big or small, break down into process groups Process groups are like the steps you use when following a recipe Needs This is where you figure out what you need: a huge product. Initiating Process Group You initiate your project – researching and deciding what you Process Groups will build to fulfil the project’s needs. Planning Process Group You determine what ingredients you already have and which ones you still need. You’ll determine where to get those missing resources and consider their costs.  83 Process Groups Executing Executing Process Group This is where the bulk of the project work is done Monitoring Monitoring and Controlling Process Group and Controlling Keeping an eye on everything that’s happening and adjusting processes as needed Closing Closing Process Group  84 How are Initiating and Planning Process Groups different? Initiating is everything you do when you first start a project (or project phase) You start by writing down (at a very high level) what the project will produce, who’s in charge of it, and what tools are needed to do the work. Many projects never get approved and chartered (which is an important goal of Initiating!). The project manager isn’t involved in much of this in many companies. Planning means delving into all of that in more detail as you learn more about it and writing down specifically how you’re going to do the work. During the Planning processes, the project manager takes the reins, exercising control and leading the team towards the project's objectives.  85 Plan-driven approach 86  87 Entering Process Groups  88 Entering Process Groups  89 Entering and Exiting a Process Group  90 Think of each process as a little machine. It takes the inputs – information you use in your project – and turns them Anatomy of a into outputs: documents, deliverables, and decisions. Process The outputs help your project come in on time, within budget, and with high quality. Each single process has inputs, tools and techniques that are used to do the work and outputs  91 Knowledge Areas organise the processes. The process groups The knowledge areas help you organise help you organise by the processes by the the subject matter kind of work you do you’re dealing with  92 The ten knowledge areas ¬Integration ¬Stakeholder ¬Scope ¬Procurement ¬Cost ¬Communications ¬Project Resource ¬Quality ¬Risk ¬Schedule  93 Coordinating all the work so that it happens correctly. Making sure changes are approved before they happen. Match the Figuring out what work needs to be done on your project and ensuring your product is everything you said it would be. Knowledge Area Knowing how much you’re able to invest in the project and making to the sure you spend it right description Efficiency is key in project management. It's important to work as efficiently as possible and avoid adding defects to the product, as this can impact the project's timeline and quality. Getting the people to work on the team and helping them stay motivated, rewarding them for a job well done, and resolving conflicts that come up.  94 Figuring out how to protect your project from anything that could happen. Dealing with the unexpected when it does happen Match the Knowledge area Finding contractors to help you do the work. Setting the ground rules for to the their relationships with your company. description. Identifying the group of people who might impact your project or whom your project will affect, understanding what they need, and making sure your project delivers it.  95 Check your understanding – Vacation as a Project Please examine each of these underlined terms and determine whether it is an input, output, and/or tool. You log in and check your company’s vacation calendar to see how much vacation time you have for your trip—input, Tool, or Output. You create an itinerary on a travel website. You’ll use the itinerary when you board your flight—input, Tool, or Output. You also created some hotel reservation documents on the travel website. You’ll use those when you check in to your hotel—input, Tools, or Output. You use a travel website to book the plane, hotel, and sights you’ll see on your trip – Input, Tools, or Output  96 Check your understanding – Vacation as a project You verify your bank You’ll use a hotel feedback account balance to ensure website to review your you have enough money stay in the hotel once you to pay for everything – return home – Input, Tool, Input, Tool or Output or Output  97 Integration Management Getting the job done  98 PMs make projects run well. They plan for what’s going to happen in the project A big part of the job is watching closely to ensure Day-to-day the plan is followed and fixing problems when they occur. work of a PM Sometimes, the plan itself turns out to be inadequate! Project Managers look for those kinds of problems and fix them, too That day-to-day work is what the Integration Management processes are all about.  99 Develop Project Charter The document that authorises you to do your work Seven Processes The PM is not always involved in making it It is often handed to the PM by the sponsor in Integration Develop Project Management Plan Management It guides everything that happens in the project It spans all of the knowledge areas It tells you how to handle changes when problems come up  100 Direct and manage project work The work gets done here It’s the day-to-day work you help your team do and ensure gets done. Manage Project Knowledge Seven processes As a project manager, you play a key role in leveraging the existing knowledge of your team to address project challenges. Sometimes, your team will discover new information the organisation never had before You’re helping ensure those discoveries are understood throughout the organisation.  101 Seven processes Monitor and control Project work. Constantly monitor everything that goes on in the project Remember, the later you find a problem, the harder and more expensive it usually is to fix. Keep everyone satisfied by catching problems as early as possible Perform Integrated Change Control Once you’ve found problems on your project, you’ve got to work with your stakeholders and sponsors to figure out how to deal with those problems. You should also update your project management plan to reflect any extra steps needed to complete the project. Close Project or Phase  102 Start your project with the Initiating processes. There are only two processes in this group to get your project started The process ‘Develop Project Charter’ that produces the Project Charter tells everyone in the company why the project is needed and gives you the authority to make it happen The process ‘Identify stakeholders’ helps you figure out who is affected by the project and how to communicate with them Now you can start planning the scope, schedule, budget, risks and more  103 Integration Management and the Process Groups 1 2 3 4 5 Develop Project Develop Project Direct and Manage Monitor and Control Close Project Project Work, Manage Project Work, Perform Charter – Management Project Knowledge – Integrated Change or Phase - Initiating Plan – Planning Executing, Control – Executing, Monitoring and Monitoring and Closing Controlling Controlling  104 Inputs – Agreements, Business Documents, Enterprise Environmental Factors, Develop Project Organisation Process Assets Charter – The process Output – Project Charter  105 Make the case for your project If a project is too risky, won’t make enough money, isn’t strategic, or isn’t likely to succeed, then the management could choose to pass on it. Preparing business documents means thinking about the value of the project to the business. It is a description of the business need, the scope, and how the project fits into the strategic plan  106 Writing the project charter ¬ Expert Judgment ¬ The company might need to consult subject matter experts from different departments to determine whether a project will benefit it. ¬ It might rely on outside consultants or industry groups to tell how companies have solved the same problem. ¬ If the experts agree that the project’s business case and contract add up to a product that’s going to do good things for your company, they’ll usually give the green light to write the charter  107 Writing the Project Charter ¬ Data Gathering Techniques ¬ Meetings and Sessions that use hard data to reach an agreement on significant project decisions ¬ Get your stakeholders on the same page about what your project team will do. ¬ By setting up meetings with your stakeholders, you can collaboratively brainstorm project goals and work together to resolve conflicts around how your project will run.  108 Which of the following is NOT typically included in a project charter? a) Project scope statement. Question b) Business case or justification. c) Detailed work breakdown structure (WBS). d) Project objectives and success criteria.  109 A common pitfall in developing project charters is: a) Including too much detail. Question b) Clearly defining success criteria. c) Being too vague or generic in defining scope and objectives. d) Conducting a thorough stakeholder analysis.  110 Stakeholder analysis is important in creating a project charter because it helps to: a) Reduce project costs. b) Identify and manage potential project risks. Question c) Ensure all project tasks are completed on time. d) Understand stakeholder interests and concerns, leading to greater buy-in.  111 A project charter is considered a "living document" because it: a) Should be updated and revised as the project progresses to reflect changes. b) Needs to be reviewed by stakeholders Question daily. c) Is only relevant during the initial project planning phase. d) Should be completely rewritten if any changes occur in the project.  112 Business Case Versus Project Charter Which of the following statements accurately distinguishes a business case from a project charter in the context of project management? A. A business case typically outlines a project's scope, objectives, and stakeholders, while a project charter provides a financial justification for the project. B. A business case assesses and justifies a project's viability and benefits before approval, whereas a charter formally authorises a project and defines its initial scope, objectives, and stakeholders. C. A project charter includes detailed execution plans, while a business case only provides high- level estimates and justifications. D. A business case is primarily concerned with the project's day-to-day management, while a project charter focuses on strategic alignment with organizational goals.  113 Customer Versus Sponsor In project management, which of the following statements correctly distinguishes a customer from a sponsor? A. A customer is responsible for providing the financial resources for the project, while a sponsor is the end user of the project's deliverables. B. The sponsor is usually the end user or client who will benefit from the project's outcome, whereas the customer champions the project, secures funding, and supports it at the executive level. C. A sponsor actively participates in the project's day-to-day management, while a customer typically only approves the final deliverables. D. The customer identifies and communicates the requirements and expectations for the project, while the sponsor provides high-level guidance, support, and resources, ensuring the project's successful execution and the team's confidence.  114 A Closer Look at the Project Charter The charter is the most important output of the Develop Project Charter process. The only other output is the assumption log. You should keep track of the assumptions you’re making as you define the project. These assumptions will help the project team understand what was considered when the project was approved. The summary milestone schedule, a list of dates that your project needs to meet, plays a vital role in keeping your project on track. It serves as a roadmap, guiding the team towards meeting the project's objectives. Customers can, sometimes, be the project sponsors. The agreements and the benefits management plan are two additional inputs to Develop the Project Charter. The former is what you agreed to do, and the latter tells everyone exactly when and how the benefits of the project will be delivered  115 Plan your Project! The Develop Project Inputs Management Plan process Project Charter is where you organise all Organisational Process Assets the information about Outputs of planning your project into one processes place, so everyone knows Enterprise Environmental exactly what needs to Factors (Personnel happen when they do the Management guidelines and project work – no matter stakeholder risk tolerance) their roles.  116 Expert Judgment Meetings Four Tools Data Gathering Techniques Interpersonal and team skills  117 The project management plan is the only output of this process It is a collection of other plans called subsidiary plans, each dedicated to a knowledge area and the specific approach to planning related to that area It is about planning for problems and having the Output information you need to correct those problems when they occur The project management plan is the core of integration management. It’s your primary tool for running a project. Creating the plan is a group effort involving the PM and the stakeholders. Everyone on the team and all the stakeholders must agree that the plan is acceptable.  118 You simply follow the plan you’ve put together and handle any problems that come up Direct and Manage Project Work Process Inputs Approved Project Project Change Management EE Factors OPA Documents Requests Plan  119 Tools Expert Judgment Meetings Direct and Project Management information system Manage Project Outputs Work Process Change Requests Issue Log Work Performance Data Deliverables Updates to project documents, plan updates, and organisational process asset updates  120 Deliverables – Documents, Defect Reports, anything that is produced in your project Let’s discuss the Work Performance Data – Reports (How well is the project doing at meeting cost Outputs estimates?) You need to keep track of what your team completed and when Any time you must correct a mistake or make a repair in a deliverable, you’re fixing a defect  121 Figure out! ¬ Here’s a list of things produced by some typical projects. Some are deliverables, and others are work performance data produced by running reports. There’s also a list of changes, some affecting the project deliverables. ¬ Which is which?  122 The software project team builds software – Deliverable or Work Performance Data A builder hangs a door – D or WPD A wedding photographer sends the photo proofs to the client – D or WPD Which? The cable repair technicians take an average of four hours per job – D or WPD The construction crew worked 46 hours overtime in March – D or WPD The construction crew built the six houses required by the plan – D or WPD A software team finds bugs in the software – Defects in Deliverables or Change to the Project Management plan  123 Which? A bride asks the photographer to stop asking her mother for permission to make changes – Defects in Deliverables or Changes to the Project Management plan. A construction crew used the wrong kind of lumber in a house – Defect in Deliverable or Change to Project Management Plan A photographer’s prints are grainy – Defect in Deliverable or Change to Project Management Plan  124 Manage Project Knowledge process ¬ This process is all about using the information your company has already learned from doing past projects and creating new information when your team learns something your company hasn’t encountered before ¬ Inputs ¬ Deliverables ¬ Project Management Plan ¬ Project Documents ¬ Others ¬ Output ¬ Lessons Learned Register ¬ Project Management Plan updates  125 Knowledge is the lifeblood of any project. Knowledge Knowledge Management – creating opportunities for It’s not enough for the Explicit – written in team to have a shared them to share what they’ve documents, files, data Tacit – in people’s heads or learned with each other and understanding of the embedded in the company’s think of new solutions project culture together Information Management – Knowledge They must share it with creating libraries of management goes information that people the rest of the within and outside the project beyond “just” organisation can use if they run into information similar situations management  126 Perform Integrated Change Control When your team is executing the plan and working on the deliverables, you need to be on the lookout for potential problems. That’s what the Monitor and Control Project Work process is for When you find a problem, you can’t make a change. What if it’s too expensive, or will it take too long? You need to examine how it affects the project constraints—time, cost, scope, resources, risk, and quality—and decide if it’s worth making the change. Confidence in decision-making is key in the Perform Integrated Change Control process. This is where you assess the proposed changes, their potential impact on the project, and make informed decisions.  127 Monitor and Control Loop – Up Close You start with information about how the work is being performed Next, you figure out any changes that need to be made to the plans and repairs that need to be made to the deliverables Once the changes and repairs are approved, you send them back to the team to implement them. A change control board (CCB) is a group of people—usually including the sponsor—that approves or rejects changes. Any time a change goes through integrated change control, the CCB decides whether it should be made. When they approve the change, you send it to the team for implementation.  128 Make the change! If the Perform Integrated Change Control Process says it’s ok to go ahead, you make the change The essential thing to remember is that the change requests come from monitoring and Controlling Project Work but are made during Direct and Manage Project Work.  129 Change control is how you deal with changes to your Project Management Plan. A change control system is a set of procedures that lets you make those changes in an organised way. Change Control A change request is a document that you or the person making the change must create. Any change to your project must be documented so you can figure out what needs to be done. Once you have a change request that triggers your project’s change control procedures.  130 Finish the work, Close the project The most important output of the Close Project or phase process is the final product you deliver to the customer. The project manager ensures that all the work is done and the stakeholders have accepted each deliverable. Equally crucial in this process is the creation of lessons learned, which are then added to your company’s organizational process assets, contributing to continuous improvement. That way, you and other project managers can learn from the historical information in the future. 131  132 Clues: Across ¬ Across ¬ 4. Fixing problems that have already happened is called _________ action ¬ 7. A problem in a deliverable that shows that it does not do what you meant for it to do ¬ 9. The project management plan is a collection of _________ plans ¬ 10. When you watch what’s happening in your project and look for changes, corrective actions and preventive actions, you are in the _______ and Control Project work process ¬ 11. ________ information is an important organisation process asset that comes from documenting lessons learned  133 Clues: Down 1. When you ask someone who has experience to help yo figure 2. The ________process group 3. The things your project something out, you are using contains the processes that help produces the ________ judgment tool you start your project and technique 6. A record of all the decisions 8. The project _______ is a 5. Work culture and company you have made and their document that gives the policies are called enterprise consequences that you write project manager authority over ______factors when you close your project is the team called _______ learned  134 Project Selection Methods Overview  135 Why Project Selection is important Not all project proposals can be approved Limited resources (time, money, personnel) Need to align with organisational strategy Maximise return on investment  136 Common Project Selection Methods Scoring Models Assign weights to various criteria Rate projects based on these criteria Calculate the total score for each project Example criteria: strategic alignment, risk, resource availability Cost-Benefit Analysis Estimate the costs and benefits of each project Compare projected benefits to costs Often uses Net Present Value (NPV) or Return on Investment (ROI)  137 Payback Period Calculate how long it takes for a project to recoup its Common initial investment Project It is simpler than NPV, but it doesn't account for the time value of money Selection Strategic Alignment Methods Evaluate how well the project aligns with company goals and strategy May use a balanced scorecard approach  138 Common Project Selection Methods Opportunity Cost Analysis Consider what the company gives up by choosing one project over another It helps in comparing mutually exclusive projects Risk Assessment Evaluate potential risks and their impact on project success May use techniques like SWOT analysis or risk matrices Delphi Technique Gather input from a panel of experts Use multiple rounds of questionnaires to reach a consensus  139 Available resources (budget, personnel, technology) Market conditions and trends Regulatory requirements Factors Influencing Stakeholder interests Project Selection Company's risk tolerance Long-term strategic goals  140 1 2 3 4 5 Use a Involve key Regularly Consider both Maintain combination of stakeholders in review and short-term and transparency in quantitative and the decision- update selection long-term the selection qualitative making process criteria impacts process methods Best Practices in Project Selection  141 TechInnovate Corp, a mid-sized software company, is considering three project proposals: 1. Project A: Develop a new mobile app (Cost: $500,000, Estimated ROI: 15%, Alignment with company strategy: High) 2. Project B: Upgrade existing software platform (Cost: $750,000, Estimated ROI: 20%, Alignment with company strategy: Medium) 3. Project C: Enter a new market segment (Cost: $1,000,000, Estimated ROI: 25%, Alignment with company strategy: Low) The company has a budget of $800,000 for new projects this year. The CEO emphasises the importance of strategic alignment and wants to ensure sound financial returns. Which project selection method is most appropriate for TechInnovate Corp to use in this situation? A) Payback Period B) Scoring Model C) Strategic Alignment only D) ROI (Return on Investment) only  142 Explanation of the previous question A Scoring Model would be the most appropriate method in this scenario because: 1. It allows the company to consider multiple factors simultaneously (cost, ROI, and strategic alignment). 2. Each factor can be assigned a weight based on its importance (e.g., the CEO emphasises giving more weight to strategic alignment). 3. It provides a structured way to compare projects with different characteristics, showcasing flexibility. 4. It can incorporate quantitative (cost, ROI) and qualitative (strategic alignment) factors, striking a balance between them. The other options are less suitable because: Payback Period (A) doesn't consider strategic alignment or long-term benefits. Strategic Alignment only (C) ignores the financial aspects, which are also important. ROI only (D) must account for the strategic importance or the budget constraint. The End Unit-1