INTRODUCTION

TO PROJECT MANAGEMENT & THE PROJECT MANAGEMENT CONTEXT

LECTURE 1

INTRODUCTION
Fast changing business environment
less information when initiating projects.

Wait to gather information

may enable a competitor to win market position the project wasn't a failure because it never got started; but the business failed.

Starting the project early and understanding that information learned during the project may cause us to cancel it at some point is part of risk management.

INTRODUCTION
Those that never cancel a project, never take risks
Those that don't take risks won't survive.

This isn't failure; this is simply good management

PROJECT MANAGEMENT

THE STANDISH GROUP

Formed in 1985 Massachusetts, USA

The Standish Group believes that ----------is critical to success

----------is a natural consequence of innovation; and innovation is a key to progress We focus on ------------ to help you succeed

THE STANDISH GROUP

Formed in 1985 Massachusetts, USA

The Standish Group believes that failure is critical to success

Failure is a natural consequence of innovation; and innovation is a key to progress We focus on failure to help you succeed

ADB REPORT
Success rate of completed investment operations of Asian Development Bank declined to 67% from 69% in 2008 partly because of realignment and closure of slow-moving
projects in Pakistan.

Classified four projects of $373 million

Pakistan Decentralised Elementary Education Project in Sindh ($75m) Rural Finance Sector Development Programme ($250m) Supporting Public Resource Management Reforms in Balochistan ($3m) Reproductive Health ($45m) as unsuccessful.

THE CHAOS REPORT (1994)

Key Findings
16% projects succeeded

31% projects failed; cancelled before completion

53% projects challenged
cost 189% of original estimates

Only 42% of the originally proposed features and functions were incorporated

THE CHAOS REPORT (2009)

2009 2000

Projects successful Challenged Failed

32% 44% 24%

28% 49% 23%

Successful: the project is completed on time and on budget, with all the features and functions originally specified Challenged: the project is completed and operational, but over budget, late, and with fewer features and functions than initially specified Failed: the project is canceled before completion or never implemented

THE CHAOS REPORT (1994)

THE CHAOS REPORT (1994)

YOUR PROJECT CANNOT AFFORD TO FAIL

Succeed 34% Fail 15%

66% of all IT projects fail, come in over budget or run past the original deadline
Every year, $55 billion is wasted on failed IT projects in the U.S. Business Impacts:
Reduced profitability Inability to fund new projects Poor customer satisfaction

Over time or over budget 51%

THE CHAOS DEMOGRAPHICS

Provides a global view of project statistics but heavier concentration on United States and Europe.
US based European Rest of the world 58% respondents 24% respondents 18%

Categories of companies
51% of the companies; Fortune 100 type companies 32% midrange 17% small range category

Span a diverse number of industries and organizations

A RECIPE FOR SUCCESS

Projects fail not for lack of money or technology; but for lack of skilled & formal Xxxxxxxxxxxxxxxxxxx

Technology is neither the problem or the solution.. The problem and solution lay in Xxxxxxxxx and xxxxxxxx

A RECIPE FOR SUCCESS

Projects fail not for lack of money or technology; but for lack of skilled & formal project management

Technology is neither the problem or the solution.. The problem and solution lay in people and processes

EVOLUTION OF PM
Projects are becoming major tool for implementing and achieving strategic goals. The Proj Mgmt is the youngest branch of the management sciences. It is only about 60 years of age. It started with the construction of USN nuclear submarines. The onerous task of integrating ICBMs onboard Polaris Class submarines was the first formal attempt of project management.

EVOLUTION OF PM
Primarily there are two schools of thought as far as Proj Mgmt is concerned.
PMI of USA Prince2 of UK.

Large number of countries including Pakistan are very much familiar with the concepts, processes and procedures of PMI while some MNCs/FIRMs originating from UK/Australia still devour Prince-2. In the recent years, there has been increased demand on business graduates and engineers to have added qualification in Proj. Mgmt. Post graduate degrees/Diploma courses/PMI certification.

PMBOK A STANDARD
Formal document that describes established norms, methods, processes and practices

Provides guidelines to manage individual projects

Defines project management and related concepts Describes the project management life cycle and the related processes

Introduction to key concepts in project management field

PROJECTS IN STONE AGES

Construction of Alexandria Light House
Constructed in 3rd BC over a period of about twelve years and at an enormous cost including slave labor

PROJECTS IN STONE AGES

Ajanta Caves (India)
The first Buddhist cave monuments at Ajanta (Maharashtra) built during 1st and 2nd B.C.

PROJECTS IN STONE AGES

Pyramids
138 pyramids, most built as tombs for the Pharaohs

PROJECTS IN STONE AGES

Taj Mahal
Constructed between 1631-1653 (22 years) employing 22,000 laborers and 1,000 elephants.

PROJECTS IN STONE AGES

Shalimar Garden
Built in 16th Century by Shah Jehan the greatest patron of architecture.

Mosques and Forts ----- Great projects

BIRTH OF A PROJECT
The idea or ideas for the project is the result of birth pangs of a

NEED
of the people, organization, Department or Industry.

The idea (ideas) then goes through certain processes and procedures till such time a satisfactory answer (product or service or result) is achieved.

PROJECT
A project is usually a one-time activity with a well-defined set of desired end resultscomplex enough that the subtasks require careful coordination and control in terms of timing, precedence, cost and performance
Project Management: A Managerial Approach Jack R. Meredith and Samuel J. Mantel, Jr. (1995)

PROJECT
The assignment of resources to accomplish specific results (deliverables) with a welldefined schedule and budget.
Accenture (1999)

Something that is contemplated, devised, or planned; a plan; a scheme; an undertaking

The Macquarie Concise Dictionary Third Edition (1998)

PROJECT
A Project Is A Problem Scheduled For Solution. J M Juran
Problem - gap b/w where you are & where u want to be, with an obstacle that prevents easy movement to close the gap.

PROJECT
Unique processes, consisting of a set of coordinated & controlled activities with start &

finish dates, undertaken to achieve an objective

conforming to specific requirements, including

the constraints of time, cost and resources.

(ISO 10006 Standard).

PROJECT
A project is a temporary endeavor, undertaken in an organized manner to produce a unique product or service or result.

PROJECT CHARACTERISTICS
Temporary means that every project has a definite beginning and a definite end (Schedule) The end is reached when the Projects:
Objectives have been achieved, or It becomes clear that the project objectives will not be or cannot be achieved,

Or the need for the project no longer exists and the project is terminated

PROJECT CHARACTERISTICS
Endeavor

Activity or effort
Project activity is:
Specific Must be done within a time frame It has dependence / interdependence Must utilize specific resources Must be done by designated people Must produce desired results

However, a Normal activity can be done at any time by any one regardless of quantum of resources and results thereof

PROJECT CHARACTERISTICS
Organized Manner

Project activity is done through an organization created solely for the designated project The project has a team consisting of HR each of whom has certain skill, knowledge and other attributes

The Project organization is headed by Project Manager (PM) and not by Project Director (PD)

PROJECT CHARACTERISTICS
UNIQUE PRODUCTS & SERVICES

Projects can create:

A product or artifact that is produced, is quantifiable, and can be either an end item in itself or a component item A capability to perform a service, such as business functions supporting production or distribution
A result, such as outcomes or documents.
Uniqueness; never happened before & will never happen again under same conditions.

PROGRAMME

PROGRAMME
Group of related projects managed in a coordinated way to obtain benefits and control not available from managing them individually
May include elements of related work outside the scope of the discrete projects in the program
Project may or may not be the part of program; program always have projects Projects related through the common outcome or collective capability

New communication satellite system

Design of satellite and ground stations Construction of each and integration of the system Launch of the satellite

PORTFOLIO

PORTFOLIO
Collection of projects or programs grouped together to facilitate effective management of that work to meet strategic business objectives
Not necessarily interdependent or directly related Infrastructure firm
Strategic objectives of maximizing the return on the investment Mix of projects Oil and gas, Power, Water, Road, Rail, Airport All the power projects may be grouped together as Power programme All the water project as Water programme

Relation only that of shared client, seller, technology or resource; the effort managed as portfolio

OPERATIONS

OPERATIONS
Organizational function performing the ongoing execution of activities that produce the same product or provide a repetitive service Permanent endeavors that produce repetitive outputs with resources assigned to do basically the same set of tasks according to the standards institutionalized in product life cycle
Production Manufacturing Accounting

OPERATIONS & PROJECTS

Operations and projects share many characteristics:

Performed by people. Constrained by limited resources. Planned, executed, and controlled. Performed to achieve organizational objectives or strategic plans

Operations are ongoing and sustains the organization overtime and produce repetitive products, service or results may include activities such as:
Financial management and control Continuous manufacture Product distribution

Projects are temporary and unique, may include activities such as:
Developing a new product or service. Effecting a change in structure, staffing, or style of an organization. Developing or acquiring a new or modified information system.

PROJECT ATTRIBUTES
A Project
Has specific objectives Has a start and end date Has a budget Has an owner/sponsor Produces specific deliverables Can vary vastly in size,complexity and duration May be a phase within a larger project or a phase within a program

LIFE IS A PROJECT

TRIPPLE CONSTRAINT

TRIPPLE CONSTRAINT

TRIPPLE CONSTRAINTS
Project managers often talk of a Triple Constraint project scope, time and costin managing competing project requirements

Project quality is affected by balancing Constraintproject scope, time and cost

Triple

High quality projects deliver the required product, service or results within scope, on schedule, and within budget.

MANAGING CONSTRAINTS
Build the dashboard you use for controlling the project. Without this dashboard, you have no way of knowing where the project is currently headed, how far off course it is, or what action to take to get it back on course.

If you neglect this function, you and all project stakeholders are subject to unhappy surprises.
Scope (Performance)

Uncontrolled projects rarely reach their goal.

Time (Schedule) Client Agreement Cost (Budget)

Manage the Triple Constraint

MANAGING CONSTRAINTS
Time & Cost Limits
Project Inputs Project Output(s)

Scope Constraint

RELATIONSHIP OF PROJECT OBJECTIVES

Cost = f(P,S, T)
Where P is Performance , S is Scope & T -time As P & S increase, Cost generally increasesbut not linearly

Projects fail when:

Estimates are faulty Time, Talent & Resources - insufficient or incorrectly applied

PROJECT ENVIRONMENT

PROJECT ENVIRONMENT
Government

The Organization
Organization Goals

Suppliers

Top Management

The Boss

PROJECT MANAGER
PROJECT TEAM

COLLEAGUES

Managers Controlling Internal Resources

External Users

Internal Users

Sub Contractors

STAKEHOLDERS

MAJOR ROLES ON PROJECT

Functional Manager

Project Manager

project individuals withowner the Sponsor Manager The internal Organizational Functional Manager Managers Team Members staff who use their skills authority and responsibility for delivering the of the project. Responsible for establishing responsible for activities and resources in a Stakeholders Parties involved in or being to contribute to the projects deliverables. documented project requirements on time the projects priority within their specialized department or function. affected by the project Can report either directly or activities. indirectly to the and within budget. Organization. Has overall responsibility for project Manager. its success.

Sponsor

project Participants Team Members Stakeholders

PROJECT STAKEHOLDERS
An assembly-line worker whose future employment depends on the outcome of the new product design project is a stakeholder POSITIVE & NEGATIVE STAKE HOLDERS
S/H Identification a difficult Process Proj Pay the Price if not Identify S/H Properly

RELATIONSHIP BETWEEN STAKEHOLDERS & PROJECT

PROJECT STAKEHOLDERS
Customer/end users
who uses proj products, service or result Doctor prescribes, patient uses, insurer pay for it.

Sponsor- who finance (cash/Kind) Project Mgr Responsible for project Performing Organization- whose employees are involved Project Mgmt Team - Performing task of project Project team members -directly involved Influencer (not Directly Involve but due to post in Performing Org can PMO- exists in performing Org. Internal & External, Investor, seller or contractor, Govt Agencies, media people, society at Large. Project Manager: Must manage stake Holders expectations. Functional managers; HR, Finance, Accounting, Procurement Operations management; management role in the core business areas R&D, Design, manufacturing, Provisioning, testing, maintenance etc In addition: Sellers, CONTRACTOR, MEDIA Outlets, Govt Lobbyist, Team Member families, society

ENTERPRISE ENVIRONMENTAL FACTORS

Refer to both internal and external environmental factors that surround or influence a projects success May come from any or all of the enterprises involved in the project May enhance or constrain project management options May have a positive or negative influence on the outcome
Organizational culture, structure and processes; Government or industry standards (e.g regulatory agency regulations, codes of conduct, product standards, quality standards, and workmanship standards) Infrastructure (e.g existing facilities and capital equipment); Existing human resources (e.g skills, disciplines, and knowledge, such as design, development, law contracting and purchasing); Personnel administration (e.g staffing and retention guidelines, employee performance reviews and training records, overtime policy, and time tracking); Company work authorization systems; Marketplace conditions; Stakeholder risk tolerances; Political climate; Organizations established communications channels; Commercial databases (e.g standardized cost estimating data, industry risk study information, and risk databases); and Project management information systems (e.g an automated tool, such as a scheduling software tool, a configuration management system, an information collections and distribution system, or web interfaces to other online automated systems).

PROJECT MANAGEMENT OFFICE

Organizational body or entity assigned various responsibilities related to the centralized and coordinated management of those projects under its domain Providing Project Management Support functions to actually being responsible for the direct management of the project
Managing shared resources across all projects administered by the PMO; Identifying and developing project management methodology, best practices, and standards; Coaching, mentoring, training and oversight; Monitoring compliance with project management standards, policies, procedures, an templates via project audits; Developing and managing projects policies , procedures, templates and other shared documentations. Coordinating communication across projects

PROJECT MANAGER
Individual responsible for managing project within constraints of

Scope, Quality, Time & Cost

To deliver specified requirement & meet or exceed Customer Satisfaction.

PROJECT MANAGER
Person assigned by the performing organization to achieve the project objectives The role distinct from a functional manager or operations manager
Depending on the organizational structure, a project manager may report to a functional manager A project manager may be one of several project managers who report to a portfolio or program manager

ESSENTIALS - PROJECT MANAGER

Knowledge refers to what project manager knows about project management
Performance refers to what project manager is able to do or accomplish while applying project management knowledge Personal refers to how project manager behaves when performing project or related activity ; Personal effectiveness encompasses attitudes, core personality characteristics & leadership

Prior start of

PROJECT MANAGER Project On Project completion

PROJECT MANAGER

WHAT IS PROJECT MANAGEMENT ?????

PROJECT MANAGEMENT
Application of knowledge, skills, tools, & techniques to project activities in order to meet or exceed stakeholder needs & expectations from a project
(PMI)

PROJECT MANAGEMENT
An Organized venture for Managing Projects.

Involves scientific application of

Modern tools & techniques in Planning, Financing, Implementing, Monitoring, Controlling & coordinating unique activities or tasks to produce desirable outputs in consonance with pre-determined objectives, within the constraints of Time, Cost, Quality.

PROJECT MANAGEMENT OBJECTIVES

Coordinate interrelated processes of the proj. Ensure proj includes all the work required, to complete the project successfully. Ensure that Proj is completed on: Time & Within Budget. Ensure Proj will satisfy needs for which it was undertaken. Ensure most effective use of HR involved in Proj. Promote effective communication between projects team members & key stakeholders. Ensure -Proj risks identified, analyzed, responded.

Project Management

Is the acquired knowledge & skills applied using a formal Set of Tools & Techniques

to Initiate, Plan, Execute, Monitor, Control & Close Projects.

Project Management
Definition of Project Management:
Project Management is the act of directing and coordinating human and material resources throughout the life of a project to achieve predetermined objectives of
Scope Quality Effort Risk Time
Effort

Quality Time

Project

Scope

Risk

PROJECT MANAGEMENT
PM applied to any project regardless of size, budget or timeline. Some examples are: Developing a new product or service Running a political campaign Sending a Power project in Northern area Designing a compensation system Negotiating a collective agreement Setting up an e-commerce internet site

PROJECT MANAGEMENT
Work Products Roles
Who is responsible?

Guiding Principles

What to deliver?

Processes

Hints & Tips

Techniques

How to produce?
Initiating, Planning, Executing, Monitoring and Controlling and Closing

How to produce?

STAGES OF PROJECT MANAGEMENT

PROJECT
It is a one time activity. It has a Life Cycle
It has a beginning. It has an end.

It is interdependent. It achieves goals. It is unique in nature. It is conducted by a group of people. It uses resources. It is non- routine event.

PROJECT PHASES
Need Analysis
Feed back

Developing Ideas / Alternatives

Feasibility Study / Studies

Project Close & Audit
Selection Of idea

Project Monitoring, Evaluation & Control

Project Formulation

Project Implementation

Project Appraisal
Project Approval

PROJECT LIFECYCLE
Project Definition
Post Implementation Review

Project Closure

Project Definition

Project Planning

Monitoring & Control

Project Life cycle

Detailed Planning

Execution

Project Control

Project Execution

Project life cycle

A project life cycle is a collection of generally sequential and sometimes overlapping project phases whose name and number are determined by the management and control needs of the
organization or organizations involved in the project the nature of project itself its area of application.

Characteristics of the PLC

Cost and staffing levels are low at the start, peak as the work is carried out and drop rapidly as the project draws to a close. The dashed line illustrates this typical pattern.

Characteristics of the PLC

Stake holder influence, risk, and uncertainty; greatest at start. Ability to influence the final characteristics of the projects product, without significantly impacting cost, is highest at the start of the project and decreases as the project progresses toward completion.

Product vs Project LC
Product Life Cycle
Generally consist of sequential, non-overlaping product phases determined by the manufacturing and control need of the organization
Last phase is generally the product retirement

Project life cycle occur in one or more phases of a product life cycle
All projects have a purpose or objective; where it is a service or result, there may be a life cycle for the service or result, not a product life cycle

Product vs Project LC
When output of the project is related to the product
Existing product may benefit from project to add new functions and features Project may be created to develop a new model

Many facets of the product life cycle lend themselves to being run as projects
Performing feasibility study Conducting market research Running advertising campaign Installing a product Holding focus groups Conducting trial

Project life cycle would differ from the product life cycle

Product vs Project LC
One product may have many projects associated with it
Separate projects may be related to the development of new automobile Each project may be distinct, but still contributes to key deliverable necessary to bring the automobile to market

Product vs Project LC

Product vs Project LC

Project Phases
Project phases are divisions within a project where extra control is needed to effectively manage the completion of major deliverable. The phase structure allows the project to be segmented into logical subsets for ease of management, planning and control. The number of phases, the need for phases and the degree of control applies depend on the size, complexity and potential impact of the project

Project Phases
Project governance
It provides a comprehensive, consistent method of controlling the project and ensuring its success. The project governance approach WOULD be described in the project management plan.

The phase structure provides a formal basis for control. Each phase is formally initiated to specify what is allowed and expected for that phase .
A management review is often held to reach a decision to start the activities of a phase

Project Phases
Project governance
The beginning of a phase is also a time to revalidate earlier assumptions, review risks and define in more detail the processes necessary to complete the phase deliverable(s).
If a particular phase does not requirs purchasing any new materials or equipment, there would be no need to carry out the activities or processes associated with the procurement

A project phases generally concluded and formally closed with a review of the deliverables to determine completeness and acceptance.
A phase end review can achieve the combined gol of obtaining authorization to close the current phase and start the subsequent one.
Formal phase completion doesnot necessarily include authorizing the subsequent phase

Project Phases
Phases-to-phase relationships
A sequential relationship, where a phase can start once the previous phase is complete.
An overlapping relationship, where the phase starts prior to completion of the previous one. An iterative relationship, where only one phase is planned at an given time and the planning for the next is carried out as work progresses on the current phase and deliverables. This approach is useful in largely undefined, uncertain, or rapidly changing environments such as research, but it can reduce the ability to provide long term planning

Project Phases (Single phase project)

Project Phases (Three phase project)

Sequential Relationship
Reduces uncertainty but may eliminate options for reducing the schedule

Project Phases (Overlapping phases)

Overlapping Relationship
Schedule compression technique called fast tracking Increased risk

Project Phases (Iterative Relationship)

One phase planned at any given time
Planning of the next carried out as work processes on the current phase and deliverables Useful in largely undefined, uncertain or rapidly changing environments i.e research

Organizational Influences on PM
Organizational Cultures and Styles
The organizational culture is an enterprise environmental factor. Therefore, a project manager should understand the different organizational styles and cultures that may affect a project.
Typically known as Cultural norms
Includes knowledge regarding how to approach getting the work done, what means are considered acceptable for getting the work done and who is influential in facilitating the work getting done

Organizational Structure
Organizational structure is an enterprise environmental factor which can affect the availability of resources and influence how projects are conducted.

Organizational structures range from functional to projectized, with a variety of matrix structures between them.

Organizational Structure (Functional)

Each employee has one clear superior. Staff members are grouped by specialty, such as production, marketing, engineering, and accounting at the top level. Specialties may be further subdivided into functional organizations, such as mechanical and electrical engineering. Each department in a functional organization will do its project work independent of other department.

Organizational Structure (Projectized)

Team members are often co-located Most of the organizations resources are involved in project work Project managers have a great deal of independence and authority. Projectized organizations often have organizational units called departments, but these groups either report directly to the project manager or provide support services to the various projects.

Organizational Structure (Weak Matrix)

Blend of functional and projectized characteristics. Weak matrices maintain many of the characteristics of a functional organization, and the project manager role is more of a coordinator or expediter than that of a true project manager.

 Balanced matrix organization recognizes the need for a project manager, it does not provide the project manager with the full authority over the project and project funding.

Organizational Structure (Balanced Matrix)

 Strong matrices have many of the characteristics of the projectized organization, and can have full time project managers with considerable authority and full time project administrative staff.

Organizational Structure(strong matrix)

Organizational Structure (Composite)

Organizational Structure

Organizational Process Assets

Any or all process related assets, from any or all of the organizations involved in the project that can be used to influence the projects success. These process assets include formal and informal plans, policies, procedures and guidelines. The process also include the organization's knowledge bases such as lessons learned and historical information. Organizational process assets may include completed schedules, risk data, and earned value data.

Processes and Procedures

Processes and Procedures The Organizations processes and procedures for conducting work include but are not limited to:
Organizational standard processes such as standards, policies (e.g., safety and health policy, ethics policy, and projects managements policy), standard product and project life cycles, and quality policies and procedures (e.g, process audits, improvement targets, checklists, and standardized process definitions for use in the organization); Standardized guidelines, work instructions, proposal evaluation criteria, and performance measurement criteria; Templates (e.g, risk, work breakdown structure, project schedule network diagram, and contract templates); Guidelines and criteria for tailoring the organizations set of standard processes to satisfy the specific needs of the project; Organization communication requirements (e.g., specific communication technology available, allowed communication media, record retention policies, and security requirements).

Processes and Procedures

Project closure guidelines or requirements (e.g., final project audits, project evaluations, product validations, and acceptance criteria); Financial controls procedures (e.g time reporting , required expenditure and disbursement reviews, accounting codes, and standard contract provisions); Issue and defect management procedure defining issue and defect controls, issue and defect identification and resolution, and action item tracking; Change control procedures, including the steps by which official company standards, policies, plans, and procedure or any project documents will be modified , and how any changes will be approved and validated; Risk control procedures, including risk categories, probability definition and impact, and probability and impact matrix;and Procedure for prioritizing, approving, and issuing work authorizations.

Corporate Knowledge Base

The Organizational corporate knowledge base for storing and retrieving information includes but is not limited to:
Process measurement databases used to collect and make available measurement data on processes and products. Project files (e.g, scope, cost, schedule, and performance measurement baselines, project calendars, project schedule network diagrams, risk registers, planned response actions and defined risk impact) Historical information and lessons learned knowledge bases (e.g, project records and documents, all project closure information and documentation, information about both the results of previous projects selection decisions and previous project performance information, and information from the risk management effort) Issue and defect management databases containing issue and defect status, control information, issue and defect resolution, and action item results. Configuration management knowledge bases containing the versions and baselines of all official company standards, policies, procedures, and any project documents, and Financial databases containing information such as labor hours, incurred costs, budgets and any project cost overruns.

Why do Organization use Project Management?

To sum it up.. 1. Improve results Value

2. Decrease costs
3. Improve customer service 4. Time

THANK YOU