Lecture - 1 Introduction To Project Management

Project Management
11-Sep-14 1
Facilitator: Amed Salman Imtiaz, IPED, SUST
Project/Management
A project is a unique endeavor to produce a set of
deliverables within clearly specified time, cost, and quality
constraints.
"A project is a temporary endeavor undertaken to provide a
unique product or service.
Management: In all business and organizational activities is
the act of getting people together to accomplish desired goals
and objectives using available resources efficiently and
effectively. Management comprises planning, organizing,
staffing, leading or directing, and controlling an organization
(a group of one or more people or entities) or effort for the
purpose of accomplishing a goal.

11-Sep-14 2 Facilitator: Amed Salman Imtiaz, IPED, SUST
Projects
Are unique in nature. They do not involve repetitive processes. Every
project undertaken is different from the last, whereas operational
activities often involve undertaking repetitive (identical) processes
Have a defined timescale. Projects have a clearly specified start and end
date within which the deliverables must be produced to meet a specified
customer requirement
Have an approved budget. Projects are allocated a level of financial
expenditure within which the deliverables must be produced to meet a
specified customer requirement
Have limited resources. At the start of a project an agreed amount of
labor, equipment and materials is allocated to the project
Involve an element of risk. Projects entail a level of uncertainty and
therefore carry business risk
Achieve beneficial change. The purpose of a project, typically, is to
improve an organization through the implementation of business change.

Projects vs. Operations
In some organizations, everything is a project. In other organizations,
projects are rare exercises in change. There's a fine line between projects
and operations, and often these separate entities overlap in function.
Consider the following points shared by projects and operations:
Both involve employees
Both typically have limited resources: people, money, or both
Both are hopefully designed, executed, and managed by someone in
charge
Projects and operations differ primarily in that operations are ongoing and
repetitive, while projects are temporary and unique.
The objectives of projects and operations are fundamentally different. The
purpose of a project is to attain its objective and then terminate.
Conversely, the objective of an ongoing operation is to sustain the
business. Projects are different because the project concludes when its
specific objectives have been attained, while operations adopt a new set
of objectives and the work continues.

Projects vs. Operations
Projects are undertaken at all levels of the organization and they can
involve a single person or many thousands. Their duration ranges from a
few weeks to several years. Projects can involve one or many
organizational units, such as joint ventures and partnerships.
Examples of projects include, but are not limited to:
o Developing a new product or service
o Effecting a change in structure, staffing, or style of an organization
o Designing a new transportation vehicle
o Developing or acquiring a new or modified information system
o Constructing a building or facility
o Building a water system for a community
o Running a campaign for political office
o Implementing a new business procedure or process
o Responding to a contract solicitation.

Range of projects

Projects and Strategic Planning
Projects and Strategic Planning
Projects are a means of organizing activities that cannot be addressed within
the organizations normal operational limits. Projects are, therefore, often
utilized as a means of achieving an organizations strategic plan, whether the
project team is employed by the organization or is a contracted service
provider. Projects are typically authorized as a result of one or more of the
following strategic considerations:
A market demand (e.g., an oil company authorizes a project to build a new
refinery in response to chronic gasoline shortages)
An organizational need (e.g., a training company authorizes a project to
create a new course in order to increase its revenues)
A customer request (e.g., an electric utility authorizes a project to build a new
substation to serve a new industrial park)
A technological advance (e.g., a software firm authorizes a new project to
develop a new generation of video games after the introduction of new game-
playing equipment by electronics firms)
A legal requirement (e.g., a paint manufacturer authorizes a project to
establish guidelines for the handling of a new toxic material).

Project Management (PM)
Project Management is the skills, tools and management processes
required to undertake a project successfully.
Project Management comprises:
A set of skills. Specialist knowledge, skills and experience are required
to reduce the level of risk within a project and thereby enhance its
likelihood of success
A suite of tools. Various types of tools are used by project managers to
improve their chances of success. Examples include document
templates, registers, planning software, modeling software, audit
checklists and review forms
A series of processes. Various management techniques and
processes are required to monitor and control time, cost, quality and
scope on projects. Examples include time management, cost
management, quality management, change management, risk
management and issue management.

Steps in Managing a Project
The actual steps in managing a project are straightforward. The below
writing illustrates the steps.
1. Define the problem. Identify the problem to be solved by the project.
It helps to visualize the desired end result. What will be different?
What will you see, hear, taste, touch, or smell? (Use sensory evidence
if things cant be quantified.) What client need is being satisfied by the
project?
2. Develop solution options. How many different ways might you go
about solving the problem? Brainstorm solution alternatives (you can
do this alone or as a group). Of the available alternatives, which do you
think will best solve the problem? Is it more or less costly than other
suitable choices? Will it result in a complete or only a partial fix?
3. Plan the project. Planning is answering questionswhat must be done,
by whom, for how much, how, when, and so on. Naturally, answering
these questions often requires a crystal ball.

Steps in Managing a Project
4. Execute the plan. Once the plan is drafted, it must be implemented.
Interestingly, people sometimes go to great effort to put together a plan, then
fail to follow it. If a plan is not followed, there is not much point in planning, is
there?
5. Monitor and control progress. Plans are developed so that you can achieve
your end result successfully. Unless progress is monitored, you cannot be sure
you will succeed. It would be like using a roadmap to reach a destination but
ignoring the highway signs. Of course, if a deviation from the plan is
discovered, you must ask what must be done to get back on track, orif that
seems impossiblehow the plan should be modified to reflect new realities.
6. Close the project. Once the destination has been reached, the project is
finished, but there is a final step that should be taken. Some people call it an
audit, others a postmortem. Whatever you call it, the point is to learn
something from what you just did. Note the way the questions are phrased:
What was done well? What should be improved? What else did we learn? We
can always improve on what we have done. However, asking What did we do
wrong? is likely to make people a bit defensive, so the focus should be on
improvement, not on placing blame.

Benefits of Project Management
Better coordination among functional areas
Ensure that tasks are completed even when there is
personnel turnover
Minimize the need for continuous reporting
Identification of realistic time limits
Early identification of problems
Improved estimating capability
Easier to monitor success
PM Triple Constraints
Time

Cost

Scope
Manage these or they will
manage you!
The PM Triple constraints are the keys to quality and
success! These three are interdependent and create
quite a balancing act for Project Managers.
The time constraint is the amount of time available to
complete a project. All projects have deadlines or end
dates. This may be the most difficult constraint to
manage.
The cost constraint is the budgeted amount available
for the project. That cost also translates to resources
people, equipment, and materials.
The scope constraint is what must be done to produce
the project's end result the system you need
meeting your requirements!

These three constraints are often competing constraints:
increased scope typically means increased time and
increased cost,
a tight time constraint could mean increased costs and
reduced scope,
a tight budget could mean increased time and reduced
scope, or managing the project over a longer period of time
to take advantage of various funding opportunities without
a loss of continuity!
The discipline of project management is about providing
the tools and techniques that enable the project team (not
just the project manager) to organize their work to meet
these constraints.

Defining the Project Life Cycle

Project managers or the organization can divide projects
into phases to provide better management control with
appropriate links to the ongoing operations of the
performing organization.

Collectively, these phases are known as the project life
cycle. The project life cycle defines the phases that connect
the beginning of a project to its end.
Defining the Project Life Cycle
Project life cycles generally define:
What technical work to do in each phase (for example, in which
phase should the architects work be performed?)
When the deliverables are to be generated in each phase and how
each deliverable is reviewed, verified, and validated
Who is involved in each phase (for example, concurrent engineering
requires that the implementers be involved with requirements and
design)
How to control and approve each phase.

Project Life Cycle Characteristics
Most project life cycles share a number of common characteristics:
Phases are generally sequential and are usually defined by some form of technical
information transfer or technical component handoff.
Cost and staffing levels are low at the start, peak during the intermediate phases,
and drop rapidly as the project draws to a conclusion. Figure below illustrates this
pattern.
Figure : Typical Project Cost and Staffing Level Across the Project Life Cycle
Project Life Cycle Characteristics
The level of uncertainty is highest and, hence, risk of failing to achieve the
objectives is greatest at the start of the project. The certainty of completion
generally gets progressively better as the project continues.
The ability of the stakeholders to influence the final characteristics of the projects
product and the final cost of the project is highest at the start, and gets
progressively lower as the project continues. Figure below illustrates this. A major
contributor to this phenomenon is that the cost of changes and correcting errors
generally increases as the project continues.
Figure : Stakeholders Influence Over Time
Project Life Cycle
Most, if not all, projects go through a life cycle which varies with the size and
complexity of the project. On medium to large projects the life cycle will
generally follow the below pattern:
1 Concept: Basic ideas, business case, statement of requirements, scope;
2 Feasibility: Tests for technical, commercial and financial viability, technical
studies, investment appraisal, etc.;
3 Evaluation : Application for funds, stating risks, options, TCQ criteria;
4 Authorization: Approvals, permits, conditions, project strategy;
5 Implementation: Development design, procurement, fabrication, installation,
commissioning;
6 Completion: Performance tests, handover to client, post project appraisal;
7 Operation: Revenue earning period, production, maintenance;
8 Termination: Close-down, decommissioning, disposal.

Project Life Cycle
Project management life cycle
Project Team
A Project Team is an organized group of people who are
involved in performing shared/individual tasks of the project
as well as achieving shared/individual goals and objectives for
the purpose of accomplishing the project and producing its
results. The team consists of the full-time and part-time
human resources supposed to collaboratively work on
producing the deliverables and moving the project towards
successful completion.
Project Team
A group of people turns into a team when every person of the
group is capable of meeting the following conditions:
Understanding the work to be done within the endeavor
Planning for completing the assigned activities
Performing tasks within the budget, timeline, and quality
expectations
Reporting on issues, changes, risks, and quality concerns to
the leader
Communicating status of tasks
Being a person who can jointly work with others
So when you look for candidates to your project group, first
make sure a candidate is ready to meet all the conditions;
otherwise switch to another candidate. If you understand this,
you get more chances to find the best candidates.
Project Team
There are usually a number of people who are either directly involved in a
project or who have a stake in its outcome. These people are called stakeholders.
The key stakeholders in most projects are:
Project leaderThe project leader, also known as the project manager, is the
head of the project.
Project team memberProject team members produce the outputs, called
deliverables, for the project. They also participate in the project management
process.
SponsorThe sponsor is the management person who acts as a liaison
between the management team and the project leader.
Project customerThis is the person or group that will accept the final
deliverable(s) that the project produces. The final deliverable is the final output
and it is delivered to the project customer, whose needs and requirements are
what drive the project.
Resource managersResource managers, also known as functional managers,
usually provide the resources, particularly the people who are involved in the
project.

SPONSOR ROLE

The role of the sponsor is to
Initiate the project by selecting a project leader.
Make sure that the projects objectives are in line with the strategic direction/goals
of the organization.
Provide overall direction to the project.
Make sure the team has the resources required to complete the project
successfully.
Obtain commitment from the resource managers to support the project.
Review and approve the project plan.
Review status reports.
Review progress on the project with the project leader.
Help to remove obstacles that cant be overcome by the team or the project leader.
Mentor or coach the project leader.
Review and approve the final report.

The sponsor is someone from management who has been designated to oversee the
project, to help ensure that it satisfies both the needs of the customer and the needs
of the organization. The sponsor is sometimes called the project champion.
PROJECT CUSTOMER ROLE

A project exists to satisfy a customer. The project customer
is the recipient of the main output of the project, called the final
deliverable. In order to make sure the final deliverables
satisfies the customer, the customer must convey to the
project team what the needs and requirements for the
deliverable will be.

A customer can be internal or external to the organization.
Most projects are done for internal customers (customers
inside the organization), although the final deliverable
produced by the project might eventually be distributed to or
purchased by an external customer.

PROJECT CUSTOMER ROLE

Whether the customer is internal or external, there are certain similarities in
the role they must play within the project:

Provide the project team with a clear picture of their needs and
requirements
Review and approve the charter
Participate on the project team where appropriate
Inform the project leader of any changes in the environment that would
affect the project deliverables
Approve changes to the project when needed to make the project a
success
Review project status reports
Provide feedback to the project leader on a regular basis
Evaluate the final deliverables as well as the project process
There are some additional roles that internal customers typically
perform:
Review and approve the entire project plan (External customers usually
review only the scope section of the plan)
Review the final status report


RESOURCE OR FUNCTIONAL MANAGER ROLE

The resource or functional manager is usually the overseer of the resources
(primarily people) that will be needed to run and complete the project.

The people who work on the project report to the resource manager and they are
then assigned to the project on either a full or, more often, a part time basis.

It is a challenge of the project leader to gain the cooperation and commitment of
these people who do not report to him or her. That challenge is met most easily by
using a participative project management approach.

The role of the resource manager is to
Provide people to be project team members.
Review and approve the project plan for their areas.
Provide direction, as required, to the team member who represents the resource
department.
Make sure the people working on the project from the department have the
appropriate level of skill and expertise to do the work.
Make sure team members are provided with the time to complete the project, as
defined in the approved project plan.
Remove obstacles for the project team.
Role of the Project Manager
The project leader is also referred to as the project manager. However, in a participative
approach, the main role for the project manager is leadership, so we refer to him or her as
a project leader. The role of the project leader is to
Provide direction to the project team.
Lead the project team through the project management process (creating and executing
the project plan).
Obtain approvals for the project plan.
Issue status reports on the progress of the project versus the plan.
Respond to requests for changes to the plan.
Facilitate the team process, which is the interpersonal process by which team members
develop as a team.
Remove obstacles for the team so they can complete the project.
Act as the key interface with the project sponsor.
Act as the key interface with the project customer.
Call and run team meetings.
Issue the final project report.
The essential role of the project leader is to lead the project team through the project
management and team processes so that they complete the project successfully. The
project leader is accountable for the overall success of the project.

Facilitator: Amed Salman Imtiaz, IPED, SUST 29
Suggested Skills for Project Managers
Project managers need a wide variety of skills. They should:
Be comfortable with change.
Understand the organizations they work in and with.
Lead teams to accomplish project goals.
Project managers need both hard and soft skills.
Hard skills include product knowledge and knowing how to use various
project management tools and techniques.
Soft skills include being able to work with various types of people.

11-Sep-14
Facilitator: Amed Salman Imtiaz, IPED, SUST
30
Suggested Skills for Project Managers
Communication skills: Listens, persuades.
Organizational skills: Plans, sets goals, analyzes.
Team-building skills: Shows empathy, motivates, promotes
esprit de corps.
Leadership skills: Sets examples, provides vision (big picture),
delegates, positive, energetic.
Coping skills: Flexible, creative, patient, persistent.
Technology skills: Experience, project knowledge.

11-Sep-14
Role of the Project Team Members
Every project team member has a fiduciary duty to make a proactive and positive
contribution to the project. All team members are owners of the project and are
personally accountable for taking charge of their respective areas.
The primary responsibility of the project team member is to carry out the tasks or
duty provided to him by his/her project manager or leader successfully. Other
duties include the following:
Provide technical expertise.
Provide ideas that can help the team create quality deliverables, on time and within budget.
Ensure that his or her part of the project work gets completed on time.
Communicate issues back to the project team.
Participate in the project planning process.
Interface with the suppliers for his or her area.
Keep the boss informed on project issues, as required.
Keep the commitment he or she makes to the project.
Help to keep the project on track.
Provide updates to his or her resource manager on the status of the project.
Help to keep the team process and content on track.

Vital Factors that Lead to Project Success
For a project to be successful, it is essential to understand the project requirements right
from the beginning and go for project planning which provides the right direction to
project managers and their teams. Read more about the factors that contribute to project
success here.

Project Success Factors
A successful project is one which is delivered on time and managed within the budget
with happy and satisfied clients. A good project manager, an efficient team with support
from senior management, a well conceived plan with proper implementation, and
involved stakeholders are some of the factors leading to project success. The best plan is
to know right from the start what the client wants and then plan, and execute the plan
successfully

Overall Comprehensive Plan
A plan will give an overview of what all need to be achieved, with details of what will be
required for achieving it and checks for what has been achieved. The plan should assess
what can be achieved; give an estimate of funds needed, personnel needed, equipment
needed and the materials needed for completion of project with milestones set for
checking achievements.

Good Manager & Team
A capable manager leading a competent team is a vital factor for project success. The
Project Manager has sole responsibility and authority for project and contract direction
and control. The Project Manager is responsible for each contract's end item (i.e., knowing
what needs doing, by whom, when, and the required amount of resources by cost
element and/or cost code).

Well-Defined Objectives
It is essential to define the clients needs, what goals are set up, what the responsibilities
of the various members of the team are, and what the short-term and long-term
objectives and outcomes are. Are all materials available? Are sufficient funds available?
Are there any project related out-sourced services needed? All of these things should be
planned.
It is very important to hold meetings between all levels and to set up plans for frequent
reviewing to keep the project on course, following the strategy set by organization and to
meet the milestones.

Senior-Level Management Support
Constant support and encouragement from senior management executives will greatly
increase the efficiency of the project manager and his team. Timely guidance and advice
may cut any unnecessary loss of time or resources. A hostile environment will hamper the
smooth functioning of the whole team.
Sufficient Funds
This is very crucial for the success of the project. What has been conceived in the plan can
happen only with the timely availability of the funds allocated for each of the project
phases. Shortage of funds will cause undue delay of the project. While the funding may be
done in stages, it is essential to know that the funds will not suddenly run out. Also it is
crucial to have some contingency funds in case of need.
Involved Stakeholders/Sponsors
It is better to keep stakeholders informed of what is happening and what will be the
results achieved. Interested stakeholders are an added motivation for the team to put in
more effort and make the project a great success.

Project team organization
Proper project team organization is one of the key constraints to
project success. If the project has no productive and well-organized
team, theres an increased probability that this project will be failed
at the very beginning because initially the team is unable to do the
project in the right manner.

Without right organization of teamwork, people who form the team
will fail with performing a number of specific roles and carrying out
a variety of group/individual responsibilities.
Organization of the project team is the responsibility of the project
manager who is committed to building a productive team of
professionals in order to guarantee that the project deliverables will
be produced on schedule, under budget and as per specification,
and thereby the customer will accept those deliverables.
The Organizational Chart
A Project Team Organizational Chart is a detailed and document-
based graphical representation of the team to outline specific roles,
duties and responsibilities of the team members and other
stakeholders participating in the project, and to formally constitute
how exactly they are expected to collaborate with each other
throughout the course of the project implementation process.
The team leader usually uses the organizational chart to thoroughly
keep track of the processes associated with team management, and
to record particular relationships between group members during
the course of the implementation life-cycle.
Team members use the chart to explore what roles and
responsibilities they have been assigned to, who will share those
roles, and who will manage and lead their efforts.
Understanding Organizational Structures
Just as projects are unique, so are the organizations in which
theyre carried out. Organizations have their own styles and
cultures that influence how project work is carried out. One of the
keys to determining the type of organization is measuring how
much authority senior management is willing to delegate to project
managers.

While uniqueness abounds in business cultures, all organizations
are structured in one of three ways: functional, projectized, or
matrix.
Functional Organizations
One common type of organization is the functional organization. This is probably
the oldest style of organization and is therefore known as the traditional
approach to organizing businesses.
Functional organizations are centered on specialties and grouped by function,
hence the term functional organization.
The work in these departments is specialized and requires people who have the
skill sets and experiences in these specialized functions to perform specific duties
for the department. Figure below shows a typical organizational chart for a
functional organization.

Managing Projects in a Functional Organization
Projects are typically undertaken in a divided approach in a functional organization. For
example, the marketing department will work on their portion of the project and then
hand it off to the manufacturing department to complete their part, and so on. The
work the marketing department does is considered a marketing project, while the
work the manufacturing department does is considered a manufacturing project.
Some projects require project team members from different departments to work
together at the same time on various aspects of the project. Project team members in
this structure will more than likely remain loyal to their functional manager.
This type of organization consists of specialist or functional departments each with
their own departmental manager responsible to one or more directors. Such an
organization is ideal for routine operations where there is little variation of the end
product.
Functional organizations are usually found where items are mass produced, whether
they are motor cars or sausages. Each department is expert at its function and the
interrelationship between them is well established. In this sense a functional
organization is not a project-type organization at all and is only included because when
small, individual, one-off projects have to be carried out, they may be given to a
particular department to manage. For projects of any reasonable size or complexity, it
will be necessary to set up one of the other two types of organizations.

Advantages of a functional organization include:
Clear chain of command Employees have one supervisor and clearly understand the lines
of authority.
Cohesive team Team members know one another because they work in the same
department. Since their skills and talents are known, task assignment is easier.
Separation of functions This setup allows team members to fine-tune specific skills and
eventually become experts.
Disadvantages of a functional organization include:
Project managers are typically functional managers also This arrangement tends to pull a
manager in several directions and can cause projects to suffer from lack of attention.
Layers of bureaucracy This structure slows down the project progress because of the time
it takes to get approval or make decisions.
Competition for resources When multiple priorities and projects are undertaken, the
department can become stretched thin under the load, which can adversely affect all the
work of the department.
Other Disadvantages includes
One of the greatest disadvantages for the project manager is that they have little to no
formal authority.
Project team members are loyal to the functional manager.


Projectized Organizations

From a project managers point of view this is the ideal type of project
organization, since with such a set up he has complete control over every aspect
of the project.
The project team will usually be located in one area which can be a room for a
small project or a complete building for a very large one.
Lines of communication are short and the interaction of the disciplines reduces
the risk of errors and misunderstandings.
Not only are the planning and technical functions part of the team but also the
project cost control and project accounting staff.
Projectized organizations are structured just the opposite of functional
organizations. The project manager in this type of organization report directly to
a vice president of project managers or perhaps to the CEO.
Projectized organizations focus on the project itself, not the work of the
functional department. Project managers have the most authority in this type of
structure, and other functions, such as accounting or human resources, may
report to the project manager.



Advantages of a projectized organization include:
Project manager has ultimate authority Team members have one boss and clearly
understand the lines of authority. Teams are typically collocated.
Project manager is the primary decision maker This makes communication, problem
resolution, and priority setting clear-cut. The buck stops here.
Focus of the organization is project work Resources are focused on the projects and the
work of the project. Loyalties are formed to the project.

Disadvantages of a projectized organization include:
Reassignment of team members When the work of the project is complete, team
members need to find new assignments. There may not be another project available to
the team members right away.
Idle time Team members with highly specialized skills may be required only at certain
times or for specific activities on the project. What they do with their time otherwise is a
tough issue to resolve in this type of organization.
Competition Project managers compete against each other for the best resources
available within the organization when forming their teams and acquiring materials. This
could have a negative affect on the external customer who is unfortunate enough to have
the project manager who drew all the short straws for their project.


Matrix organizations came about to minimize the differences between, and take
advantage of, the strengths and weaknesses of functional and projectized
organizations.
The idea at play here is that the best of both organizational structures can be
realized by combining them into one. The project objectives are fulfilled and
good project management techniques are utilized while still maintaining a
hierarchical structure in the organization.
Employees in a matrix organization report to one functional manager and to at
least one project manager. Its possible that employees could report to multiple
project managers if they are working on multiple projects at one time.
Functional managers pick up the administrative portion of the duties and assign
employees to projects. They also monitor the work of their employees on the
various projects.
Project managers are responsible for executing the project and giving out work
assignments based on project activities. Project managers and functional
managers share the responsibility of performance reviews for the employee.

Matrix Organizations



The advantages of a matrix organization are:
Resources are employed efficiently, since staff can switch to different projects if held up
on any one of them;
The expertise built up by the department is utilized and the latest state-of the-art
techniques are immediately incorporated;
Special facilities do not have to be provided and disrupting staff movements are avoided;
The career prospects of team members are left intact;
The organization can respond quickly to changes of scope;
The project manager does not have to concern himself with staff problems.

The disadvantages are:
There may be a conflict of priorities between different projects;
There may be split loyalties between the project manager and the departmental manager
due to the dual reporting requirements;
Communications between team members can be affected if the locations of the
departments are far apart;
Executive management may have to spend more time to ensure a fair balance of power
between the project manager and the department manager.



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