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Contents
1. 2. 3. 4. 5. 6. 7. An Introduction to Project Management ............................................................................................. 5 ............................. Project Phases & Project Life Cycle Cycle................................................................................................ ....................................... 5 2.1. 3.1. Project Life Cycle Stages Stages................................................................................................ ............................................ 5 Roles & Responsibilities of a Project Manager ................................................................ ......................................... 6 Project Stakeholders................................ ............................................................................................................................. 6 ............................. Key General Management Skills ................................................................................................ ........................................... 7 Project Processes................................ ................................................................................................................................ 7 .................................. Process Groups ................................ ................................................................................................................................ 8 ..................................... Defining Project Scope Management ................................................................................................ 8 ................................... 7.1. 7.2. 8. 8.1. 8.2. 8.3. 8.4. 8.5. 8.6. 9. 9.1. 9.2. 9.3. Scope Statement................................ ................................................................................................ ....................................................... 8 Creating the Work Breakdown Structure ................................................................ g ................................................. 9 Cost Estimating Inputs ................................................................................................ ............................................10 Estimating Activity Durations Durations................................................................................................ 10 .................................. Analyzing Cost Estimating Results Results........................................................................................... ...........................10 Cost Budgeting ................................ ................................................................................................ ........................................................10 Developing the project Budget ............................................................................................... 10 ............................... Earned Value Management ................................................................................................ 11 .................................... Precedence Diagram Method ................................................................................................ 11 ................................. Arrow Diagramming Method Method................................................................................................ 11 .................................. Conditional Diagramming Method ................................................................ .........................................................11
10. Creating the Project Schedule ................................................................................................ ............................................11 10.1. Applying Mathematical Analysis ............................................................................................. 12 ............................. 10.2. Examining the Project schedule schedule.............................................................................................. 12 .............................. 11. Project Integration Management ................................................................................................ .......................................12 12. Project Quality Management................................ ................................................................................................ ..............................................12 12.1. Implementing Quality Control ................................................................................................ 13 ................................ 12.2. Charting Quality Control ................................................................................................ .........................................13
12.3. Evaluating Quality Costs Costs................................................................................................ ..........................................13 12.4. Implementing Quality Assurance Assurance............................................................................................ ............................13 13. Project Human Resource Management Management.............................................................................................. 13 .............................. 14. Project Communications Management Management.............................................................................................. 14 .............................. 15. Project Risk Management................................ ................................................................................................ ................................................... 14 15.1. Analyzing Identified Risks Risks................................................................................................ ........................................14 15.2. Risk Management Methods Methods................................................................................................ 15 .................................... 15.3. Responding to Identified Risks Risks................................................................................................ 15 ................................ 15.4. Iterative Risk Management Management................................................................................................ 15 ..................................... 16. Why Projects Fails?................................ ............................................................................................................................. 15 .............................
The primary purpose of this document is to provide a basic reference to anyone who is interested in understanding project management.
Project Management is the supervision and control of the work that is required to complete the project vision. Project management includes work processes that initiate, plan, execute, and close work. Work processes require tradeoffs among the scope, quality, cost, and schedule of the project. The project team carries out the work needed to complete the project, while the project manager schedules, monitors, and controls the various project le tasks. Project Management is comprised of the following nine knowledge areas:
Project Management Knowledge Areas Project Integration Management Project Scope Management Project Time Management Project Cost Management Project Risk Management Project Quality Management Project Procurement Management Project Human Resource Management Project Communications Management Focuses on project plan development and execution. Deals with the planning, creation, protection and fulfillment of the project scope. Covers activities, their characteristics, and how they fit into the project schedule. Concerned with the planning, estimating, budgeting, and control of costs. Focuses on risk planning, analysis, monitoring, and control. Centers on quality planning, assurance and control. Involves planning, solicitation, contract administration, and contract closeout. Focuses on organizational planning, staff acquisition, and team development. Details on how communication can be improved.
2.1.
Initiating: When a project is proposed, planned at a high level, and key participants, commit to it in broad terms. Planning: Starts after the initial commitment, includes detailed planning, and ends when all stakeholders accept the entire detailed plan. Executing: Includes authorizing, executing, monitoring, and controlling work until the customer accepts the project deliverables. Closing: All activities after customer acceptance to ensure project is completed, lessons are learned, resources are recognized, and contributions are rewarded.
3. Project Stakeholders
Stakeholders are those folks and organizations who are actively involved in the project, or will be affected by its outcome in other words, people, groups, businesses, customers, and communities that have a vested interest in have the project. Key Project Stakeholders Project Manager Person who is accountable for managing the project. Project Customer Person or group that will use the project deliverable. Performing Organization Entity that employs the people responsible for completing the project work. Project Team Collection of individuals that will work together to ensure success of the project. Project Sponsor Has the power to authorize and sanction the project work and is ultimately responsible fo project success. for
3.1.
The project manager has primary responsibility for the quality of a projects deliverables and its successful completion. To succeed, the project manager must work closely with the project owner to ensure that adequate resources are applied. The project manager also has responsibility for planning and ensuring that the project is successfully completed on time and within budget. Responsibilities: Implement project policies and procedures Acquire resources through negotiation with project owners and resource managers.
Ensure adequate technical proficiency to meet project requirements and arrange for training. Establish and maintain quality in project. Identify and procure tools to be used o the project. on Monitor project progress against schedule and budget plans and raise concerns as appropriate. Ensure resources are focused on correct activities. Engage with management to ensure project awareness and prompt issue resolution.
Balanced Matrix
Weak Matrix
Composite
Ideal for organizations with recurring projects, such as manufacturing. Everyone on the project knows who is in charge: the functional manager.
5. Project Processes
Processes are a series of actions with a common, parent goal, to create a result. Processes are not the individual activities, but the control of individual activities to com complete a project phase. There are two types of processes: Product Oriented Processes: These processes are the activities that complete a projects phase and life cycle. In other words, product oriented processes within a project complete phases, which in turn complete the project. turn The processes within a project are unique to each project. Project Management Processes: These processes are the activities that are universal to all projects. These activities comprise the bulk of the project management body of kn owledge and these processes are common to all knowledge projects from construction to technology.
The two process types are interrelated and interdependent. Thus, a project manager must be familiar with the product oriented processes in order to apply the project management processes. To use a real world example, a management project manager should be familiar with both how a house is constructed and the various phases involved in that construction in order to effectively apply the project management processes.
6. Process Groups
The process groups are a collection of activities that contribute to the control and implementation of the project management life cycle. The output of one process group will act as input for another process group. The following are five project management process groups: Initiating: The project is authorized. Planning: Project objectives are determined, as well as how to reach those objectives with the given constraints. Executing: The project is executed utilizing acquired resources. Controlling: Project performance is monitored and measured to ensure the project plan is being implemented to design specifications and requirements. Closing: The project and its various phases are brought to a formal end.
7.1.
Scope Statement
The scope statement is a document that describes the work, and only the required work, necessary to meet the project objectives. The scope statement establishes a common vision among the project stakeholders to establish the point and purpose of the project work. It is used as a baseline against which all future project decisions are t made to determine if proposed changes or work results are aligned with expectations. The scope statement, may, with adequate reason, be updated to reflect changes in the project work. It includes or project references the following: Project Justification: Identifies the business needs of the project. It answers why the project has been authorized. Projects Product: The scope statement reiterates the details of the project product. Project Deliverables: The high-level deliverables of the project should be identified. These deliverables, when level predefined metrics are met, signal that project scope has been completed. When appropriate, it should also list what deliverables are excluded from the project deliverables. For ex: a project to create a new food product may rom state that it is not including the packaging of the food product as part of the project. Items and features not listed as part of the project deliverables should be assumed to be excluded. Project Objectives: Project objectives are specific conditions that determine the success of a project. Conditions are typically cost, schedule, and quality metrics. Vague metrics, such as customer satisfaction, increase the risk for the project, as the metric customer satisfaction is subjective and not quantified. ect,
The following table depicts the Inputs, Outputs and Tools and Techniques of Scope Definition Inputs Tools and Techniques Outputs Scope Statement Work Breakdown Structure template Work Breakdown Structure Constraints Decomposition Scope statement updates Assumptions Other planning outputs Historical information
7.2.
The Work Breakdown Structure (WBS) is an organized collection of the project deliverable to be created by project work. A WBS breaks down into a deliverable deliverable-oriented collection of manageable pieces. The project manager cannot complete the activity alone. The input and guidance of the project team is required as they are the The individuals close to the work and will be completing the actual activities within the project phases. The smallest element in the WBS is called the Work Package. WBS also identifies the relationship between work packages. Fig 3: A sample WBS for a technology project
OS Rollout Training Development Courseware WBT Handouts Classes Testing Planning Scenario Simulations Rollout IT Dept Sales AA's Education HR Accounting Documentation Courseware Operations Versioning Issues Knowledge Management
Pilots Lab
Some essential elements about the WBS: Serves as the project scope baseline. One of the most important project management tools. Serves as the foundation for planning, estimating, and project control. Visualizes the entire project. Work not included in the WBS is not part of the project. Builds team consensus and buy to the project. buy-in Serves as a control mechanism to keep the project on track. s Allows for accurate cost and time estimates. Serves as deterrent to scope change. WBS is an input to five core processes:
WBS Activity Definition Risk Management
8.1.
Using the Work Breakdown Structure: Its an input to five major planning processes: cost estimating, resource s planning, risk management planning, and activity definition. Relying on Resource Requirements: The output of resource planning serves as a key input for estimating cost. The cost project will have some requirement for resources the skills of the labor, the ability of materials, or the function of l equipment must all be accounted for. Calculating Resource Rates: The estimator should know how much each resource costs. There are four categories of cost: Direct Costs: Attributed directly to the project work and cannot be shared among projects. Variable Costs: Costs that vary depending on the conditions applied in the project. Fixed Costs: Costs that remains constant throughout the project. Indirect Costs: Costs that are representative of more than one project.
8.2.
Estimates of the duration of the activities, which predict the length of the project, are needed for decisions on financing the project.
8.3.
The output of cost estimating is the actual cost estimates of the resources required to the complete the project work. The cost of the project is expressed in monetary terms so that the management can compare projects based on costs. The estimate can be presented n detail against the WBS components or summarized in terms of a grand total, by phases of the project, or by major deliverables. Each resource in the project must be accounted for and assigned to a cost category. Categories inclu the following: include Labor Costs, Material Costs, Travel Costs, Supplies, Hardware Costs, Software Costs etc.
8.4.
Cost Budgeting
Cost Budgeting is the process of assigning a cost to an individual work package. The aim is to assign costs to the work in the project so that the work may be measured for performance. Inputs to Cost Budgeting Cost Estimates Predicted costs for the project work Work Breakdown Structure Deliverable of the project as its what the project is buying Project Schedule Its needed to determine when the amount in the budget will be spent. Risk Management Plan It provides the probability of identified risks and their associated costs.
8.5.
The tools and techniques used to create the project cost estimates are also used to create the project budget. Analogous Budgeting: Form of expert judgment that uses a top down approach to predict costs. Generally, its less top-down accurate than other methods. Parametric Budgeting: Uses a parametric model to extrapolate what costs will be for a project (ex: cost/hr and cost/unit). Also includes variables and points based on conditions. Bottom-up Budgeting: Most reliable approach, though it takes the longest to create. Starts at zero and requires each work package to be accounted for for. Computerized Tools: Software programs that are used in estimating can be used to help predict the project budget with some accuracy.
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8.6.
It is the process of measuring performance of project work against a plan to identify variances. Planned Value (PV): It is the work scheduled and the authorized budget to accomplish that work. For ex: if a project has a budget of $10,000 and month six represents 50% of the project work, the PV for that month is $5,000. PV is also known as Budget Cost of Work Schedule (BCWS). Earned Vale (EV): It is the physical work completed till date and the authorized budget for that work. For Ex: If a project has a budget of $10,000 and the work completed till date represents 25% of the entire project work, its EV is $2,500. EV is also known as Budgeted Cost of Work Performed (BCWP). Actual Cost (AC): It is the actual amount of monies the project has incurred till date. For ex: if a project has a budget of $10,000 and $5,000 has been spent on the project till date, then the AC would be $5,000. AC is also al known as Actual Cost of Work Performed (ACWP).
9.1.
The PDM is the most common method of arranging the project work visually. It puts the activities in boxes called nodes, and connects the boxes with arrows. The arrows represent the relationship and dependencies of work des, packages.
A Start C D B End
Relationships between activities in a PDM constitute one of four different types: Finish-to-Start (FS): It means task A must be completed before Task B. Start-to-Start (SS): It means Task A must start before Task B can start. Finish-to Finish (FF): It means Task A must complete before Task B does. Start-to-Finish (SF): It requires that Task A to start so that Task B may finish.
9.2.
ADM approach uses arrows to represent the activities. The arrows are connected on nodes. ADM only uses finish finishto-start relationships. ADM is an example of Activity start Activity-on-Arrow (AOA) networks.
9.3.
CDMs are more complex and structure than ADM or PDM. CDM includes system dynamics and graphical evaluation and review technique (GERT). These models allow for loops and conditional branching. GERT also allo allows for probabilistic clarification of work package estimates.
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Total Quality Management: The organization strives for constant improvement for products and business practices. Kaizen: The organization applies small changes to products and processes to improve consistency, reduce costs, processes and provide overall quality improvement. Marginal Analysis: The cost of quality is not greater than the increased sales because of the level of quality implemented. Ideally, the revenue generated because of the quality improvements far exceeds the cost of the quality.
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The project manager should not forget to involve other stakeholders: customers, management, indiv individual contributors, project sponsor, and any other stakeholder unique to the project. Organizational planning calls on the project manager to identify the roles and responsibilities of the project and the reporting relationship within the organization. Reporting relationships can be internal (management) or external (customer/community). The orting relationships and the procedure to communicate with these projects interfaces must be documented. Project performance improvements must be noted in an honest appraisal of the project team members effort and contributions to the project. Special care to involve the project team must be given when the team is scattered geographically.
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Risks can also be analyzed using a cardinal ranking system of numerical values that are assigned to each risk based on its impact and pr probability. An overall project risk ranking can be used to compare the current projects with other projects in the organization. The risks can be moved into quantitative analysis for further study. Risks are assigned numeric values.
Efficient Project management with effective management skills can make even the most difficult and complex comp projects also successful and result in utmost customer satisfaction.
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