Training program on

Computer based Project Management

Using MS Project 2010

Day 1

What is a Project?
A project is a temporary endeavor undertaken to create a unique product,
service, or result.
Temporary means that every project has a definite beginning and a definite
end. However, temporary does not generally apply to the product, service or
result created by the project. Most projects are undertaken to create a lasting
outcome.
A project creates unique deliverables, which are products, services, or results.
Projects are exists as a result of:
A market demand
An organizational need
A customer request
A technological advance
A legal requirement

The characteristics of a project are:

It is temporary.
It is unique.
It has specific objectives.
Performed by people.
Constrained by limited resources.
Planned executed and controlled.
It involves risk and uncertainty.
Progressively elaborated.

Progressive elaboration is a characteristic of projects that accompanies the

concepts of temporary and unique. Progressive elaboration means
developing in steps, and continuing by increments.

A project may finish:

by reaching the project objectives.
by discovering that the objectives cannot be reached.
by terminating the project arbitrary.

What is Project Management?

Project management is the application of knowledge, skills, tools and
techniques to project activities to meet project requirements.
Project management must look ahead at the needs and risks,
communicate the plans and priorities, anticipate problems, assess
progress and trends, get quality and value for money, and change
the plans if necessary to achieve the objectives.
The project manager is the person responsible for accomplishing the
project objectives.
The project management team has a professional responsibility to its
stakeholders including customers, the performing organization, and
the public.

Questions

Project Management Body of Knowledge (PMBOK)

The Project Management Body of Knowledge is the sum of knowledge

within the profession of project management. As with other professions
such as law, medicine, and accounting, the body of knowledge rests with
the practitioners and academics who apply and advance it. The complete
Project Management Body of Knowledge includes proven traditional
practices that are widely applied, as well as innovative practices that are
emerging in the profession, including published and unpublished
material. As a result, the Project Management Body of Knowledge is
constantly evolving.

The Project Management Knowledge Areas

The Project Management Knowledge Areas, organizes the 44 project
management processes from the Project Management Process
Groups into nine Knowledge Areas, as described below.
1. Project Integration Management
2. Project Scope Management
3. Project Time Management
4. Project Cost Management
5. Project Quality Management
6. Project Human Resource Management
7. Project Communications Management
8. Project Risk Management
9. Project Procurement Management

Project Integration Management, describes the processes and activities

that integrate the various elements of project management, which are
identified, defined, combined, unified and coordinated within the Project
Management Process Groups.
1 Develop Project Charter
2 Develop Project management Plan
3

Direct

and

manage

Project

execution
4 monitor and Control Project work
5 Perform Integrated Change Control
6 Close Project or Phase

Project Scope Management, describes the processes involved in

ascertaining that the project includes all the work required, and only the
work required, to complete the project successfully. It consists of the
Scope Planning, Scope Definition, Create WBS, Scope Verification,
and Scope Control project management processes.
1 Collect Requirements
2 Define Scope
3 Create WBS
4 Verify Scope
5 Control Scope

Project Time Management, describes the processes concerning the

timely completion of the project. It consists of the Activity Definition,
Activity Sequencing, Activity Resource Estimating, Activity Duration
Estimating, Schedule Development, and Schedule Control project
management processes.
1 Define Activities
2 Sequence Activities
3 Estimate Activity
Resources
4 Estimate Activity
Durations
5 Develop Schedule
6 Control Schedule

Project Cost Management, describes the processes involved in

planning, estimating, budgeting, and controlling costs so that the project
is completed within the approved budget. It consists of the Cost
Estimating, Cost Budgeting, and Cost Control project management
processes.
1 Estimate Costs
2 Determine
Budget
3 Control Costs

Project Quality Management, describes the processes involved in

assuring that the project will satisfy the objectives for which it was
undertaken. It consists of the Quality Planning, Perform Quality
Assurance, and Perform Quality Control project management
processes.
1 Plan Quality
2 Perform Quality
Assurance
3 Perform Quality
Control

Project Human Resource Management, describes the processes

that organize and manage the project team. It consists of the Human
Resource Planning, Acquire Project Team, Develop Project Team, and
Manage Project Team project management processes.
1 Develop Human Resource
Plan
2 Acquire Project Team
3 Develop Project Team
4 Manage Project Team

Project Communications Management, describes the processes

concerning the timely and appropriate generation, collection,
dissemination, storage and ultimate disposition of project information.
It consists of the Communications Planning, Information Distribution,
Performance Reporting, and Manage Stakeholders project
management processes.
1 Identify Stakeholders
2 Plan Communications
3 Distribute Information
4 Manage Stakeholder
Expectations
5 Report Performance

Project Risk Management, describes the processes concerned with

conducting risk management on a project. It consists of the Risk
Management Planning, Risk Identification, Qualitative Risk Analysis,
Quantitative Risk Analysis, Risk Response Planning, and Risk
Monitoring and Control project management processes.
1 Plan Risk Management
2 Identify Risks
3 Perform Qualitative Risk Analysis
4 Perform Quantitative Risk Analysis
5 Plan Risk Responses
6 Monitor and Control Risks

Project Procurement Management, describes the processes that

purchase or acquire products, services or results, as well as contract
management processes. It consists of the Plan Purchases and
Acquisitions, Plan Contracting, Request Seller Responses, Select
Sellers, Contract Administration, and Contract Closure project
management processes.
1 Plan Procurements
2 Conduct Procurements
3 Administer Procurements
4 Close Procurements

Questions

Areas of Expertise
Effective project management requires that the project management
team understand and use knowledge and skills from at least five
areas of expertise:
The Project Management Body of Knowledge
Application area knowledge, standards, and regulations
Understanding the project environment
General management knowledge and skills
Interpersonal skills.

Project Management Body of Knowledge

The Project Management Body of Knowledge describes knowledge
unique to the project management field and that overlaps other
management disciplines. The PMBOK Guide is, therefore, a subset
of the larger Project Management Body of Knowledge.

Application Area Knowledge, Standards and Regulations

Application areas are categories of projects that have common
elements significant in such projects, but are not needed or present
in all projects. Application areas are usually defined in terms of:
Functional departments and supporting disciplines, such as legal,
production and inventory management, marketing, logistics, and
personnel
Technical elements, such as software development or engineering,
and sometimes a specific kind of engineering, such as water and
sanitation engineering or construction engineering
Management specializations, such as government contracting,
community development, and new product development
Industry groups, such as automotive, chemical, agriculture, and
financial services.

Understanding the Project Environment

Virtually all projects are planned and implemented in a social,
economic, and environmental context, and have intended and
unintended positive and/or negative impacts. The project team should
consider the project in its cultural, social, international, political, and
physical environmental contexts.
Cultural and social environment.
International and political environment.
Physical environment.

Cultural and social environment.

The team needs to understand how the project affects people and
how people affect the project. This may require an understanding
of aspects of the economic, demographic, educational, ethical,
ethnic, religious, and other characteristics of the people whom the
project affects or who may have an interest in the project. The
project manager should also examine the organizational culture
and determine whether project management is recognized as a
valid role with accountability and authority for managing the
project.

International and political environment.

Some team members may need to be familiar with applicable
international, national, regional, and local laws and customs, as well
as the political climate that could affect the project. Other
international factors to consider are time-zone differences, national
and regional holidays, travel requirements for face-to-face meetings,
and the logistics of teleconferencing.

Physical environment.
If the project will affect its physical surroundings, some team
members should be knowledgeable about the local ecology
and physical geography that could affect the project or be
affected by the project.

General Management Knowledge and Skills

General management encompasses planning, organizing, staffing,
executing, and controlling the operations of an ongoing enterprise. It
includes supporting disciplines such as:
Financial management and accounting
Purchasing and procurement
Sales and marketing
Contracts and commercial law
Manufacturing and distribution
Logistics and supply chain
Strategic planning, tactical planning, and operational planning
Organizational structures, organizational behavior, personnel
administration, compensation, benefits, and career paths
Health and safety practices
Information technology.

Interpersonal Skills
The management of interpersonal relationships includes:
Effective communication. The exchange of information
Influencing the organization. The ability to 'get things done'
Leadership. Developing a vision and strategy, and motivating people
to achieve that vision and strategy
Motivation. Energizing people to achieve high levels of performance
and to overcome barriers to change
Negotiation and conflict management. Conferring with others to
come to terms with them or to reach an agreement
Problem solving. The combination of problem definition, alternatives
identification and analysis, and decision-making.

Questions

The Project Life Cycle

The project life cycle defines the phases that connect the beginning of a
project to its end.
Project life cycles:
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.

The Project Life Cycle

Project Life Cycle

The project life cycle define the followings within a typical Project
Phases:
What technical work to do in each
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
How to control and approve each phase.

Common characteristics of Project Phases:

Beginning, middle and ending
Occur sequentially
Experience technical transfer
Vary by industry, organization and project

Product Life Cycle

Questions

Principles of project management

The project manager must balance and control
the constraints of 5 things:
Scope
Schedule
Resources
Quality
Risk

 Approach (applies to any management)

Understand the goals and objectives
o quantify them where possible
Understand the constraints
o if there is uncertainty, use probability estimates
Plan to meet the objectives within the constraints
Monitor and control the plan
Preserve a calm, productive, positive work environment

Project Management System

The project management system is the set of tools, techniques,
methodologies, resources, and procedures used to manage a
project. It can be formal or informal and aids a project manager in
effectively guiding a project to completion. The system is a set of
processes and the related control functions that are consolidated
and combined into a functioning, unified whole.

Project Management Plan

By understanding of Project management system elements
required for a particular project, Project Management Plan is
prepared by integrating the tools, techniques, methodologies,
resources, and procedures used to manage a project.
This document is included with the followings:
Scope Management Plan
Schedule Management Plan
Cost Management Plan
Quality Management Plan
Process Improvement Plan
Staffing Management Plan
Communication Management Plan
Risk Management Plan
Procurement Management Plan

Project Management Processes

Project management is accomplished through processes, using
project management knowledge, skills, tools, and techniques that
receive inputs and generate outputs.
The project management processes are discrete elements with welldefined interfaces. However, in practice they overlap and interact. An
underlying concept for the interaction among the project
management processes is the plan-do-check-act cycle.

Plan-Do-Check-Action cycle

A process is a way of doing something. There are five processes that are
used to manage projects.

Initiating - What is the challenge or problem?

Planning - How should we go about it?
Executing Doing the job
Monitoring and Controlling - Are we on track?
Closing - Finish the job, assess how we did, and capture lessons learned.

Procedures
An ordered set of tasks for performing some action.
Some of the procedures in a project management system:

Procedures for project definition

Procedures for estimating and cost control
Procedures for scheduling
Procedures for human resource management
Procedures for procurement management
Procedures for materials management
Procedures for documents management
Procedures for integrating the proposed PMIS with other
information systems

Project Stakeholders
Project stakeholders are individuals and organizations that are
actively involved in the project, or whose interests may be affected as
a result of project execution or project completion.

Key stakeholders on every project include:

Project manager. The person responsible for managing the project.
Customer/user. The person or organization that will use the projects product.
There may be multiple layers of customers. For example, the customers for a new
pharmaceutical product can include the doctors who prescribe it, the patients who
take it and the insurers who pay for it. In some application areas, customer and user
are synonymous, while in others, customer refers to the entity acquiring the projects
product and users are those who will directly utilize the projects product.
Performing organization. The enterprise whose employees are most directly
involved in doing the work of the project.
Project team members. The group that is performing the work of the project.
Project management team. The members of the project team who are directly
involved in project management activities.
Sponsor. The person or group that provides the financial resources, in cash or in
kind, for the project.
Influencers. People or groups that are not directly related to the acquisition or use
of the projects product, but due to an individuals position in the customer
organization or performing organization, can influence, positively or negatively, the
course of the project.
PMO. If it exists in the performing organization, the PMO can be a stakeholder if it
has direct or indirect responsibility for the outcome of the project.

Questions

Why Projects?
Projects are exists as a result of:
A market demand
An organizational need
A customer request
A technological advance
A legal requirement

Business Plan
The document which sets out the main advantages and parameters
of the project is called the Business Case.
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.

Why is the project required?

What are we trying to achieve?
What are the deliverables?
What is the anticipated cost?
How long will it take to complete?
What quality standards must be achieved?
What are the performance criteria?
What are Key Performance Indicators (KPI)?
What are the main risks?
What are success criteria?
Who are the main stakeholders?

Develop preliminary Project Scope Statement

The preliminary project scope statement is the definition of the project
what needs to be accomplished. A preliminary project scope
statement includes:
Project and product objectives
Product or service requirements and characteristics
Product acceptance criteria
Project boundaries
Project requirements and deliverables
Project constraints
Project assumptions
Initial project organization
Initial defined risks
Schedule milestones
Initial WBS
Order of magnitude cost estimate
Project configuration management requirements
Approval requirements

Project Execution Strategy

The Project Execution strategy is a term used to describe the
collection of definitive management strategies required for proper
planning, execution, control and closing of a project effort.
Strategy refers to a plan of action designed to achieve a particular
goal.
An integrated and tailored Project Execution strategy document
comprised on the necessary subsidiary management /strategies plans.

Feasibility Studies
A feasibility study is a preliminary study undertaken to determine and
document a project's viability. The results of this study shall be used to
ascertain the likelihood of the project's success. It is an analysis of
possible alternative solutions to a problem and a recommendation on the
best alternative. After a feasibility study, management makes a go/no go
decision.
The feasibility study is a management-oriented activity.
A feasibility study should examine four main areas:
Technical requirements
Economical and Financial overview
Organizational requirements
Environmental and cultural factors
Legal issues

What is Feasibility Study ?

A feasibility study is a preliminary study undertaken to determine and
document a project's viability. The results of this study shall be used to
ascertain the likelihood of the project's success. It is an analysis of
possible alternative solutions to a problem and a recommendation on the
best alternative.

Main Objectives of Feasibility Study

Identify true problem. In defining the problem you

must determine the subject, scope and objectives of
the study.
Identify feasible approach to solve it

Subject: The problem that you hope to solve.

Scope: Range. Here you decide what will be included and
excluded from the study.
Objective : Clear statement of what you want to accomplish.
You should specify:
Who is responsible for achieving the goal.
How it will be achieved.
What conditions may prevent success
Who will monitor the successful achievement of this
objective

A feasibility study should examine four main areas:

Technical requirements
Financial overview
Organizational requirements
Environmental and cultural factors
Legal issues

Major Components
1. Needs Analysis
2. Technical feasibility study
3. Environmental feasibility study
4. Economical feasibility
5. Financial feasibility
6. Operational feasibility
7. Schedule Feasibility study
8. Cultural Feasibility study
9. Legal Feasibility study
10. Marketing Feasibility study

Needs Analysis
A needs analysis should be the first undertaking of a feasibility study as it
clearly defines the project outline and the clients' requirements. Once these
questions have been answered the person/s undertaking the feasibility
study will have outlined the project needs definition.
The following questions need to be asked to define the project needs definition:
What is the end deliverable?
What purpose will it serve?
What are the environmental effects?
What are the rules and regulations?
What standards will we be measured against?
What are the quality requirements?
What are the minimal quality requirements allowed?
What sustainability can we expect?
What carry over work can we expect?
What are the penalty clauses?
How much do we need to outsource?
How much do we need to in source?

Economic Feasibility
Innovation is often regarded as the engine which can introduce
construction economies and advance labor productivity. This is
obviously true for certain types of innovations in industrial
production technologies, design capabilities, and construction
equipment and methods. However, there are also limitations due
to the economic infeasibility of such innovations, particularly in
the segments of construction industry which are more
fragmented and permit ease of entry, as in the construction of
residential housing.

Technical feasibility study

This involves questions such as whether the technology needed for the
system exists, how difficult it will be to build, and whether the firm has
enough experience using that technology. The assessment is based on
an outline design of system requirements in terms of Input, Output, Fields,
Programs, and Procedures. This can be an introduction to the technical
system.

Environmental feasibility study

In this stage, the project's alternatives are evaluated for their impact
on the environment.

Financial feasibility
Establishing the cost-effectiveness of the proposed system i.e. if
the benefits do not outweigh the costs then it is not worth going
ahead.
Start-up costs
Operating costs
Income and profit
Financial planning

Operational feasibility
Do the current work practices and procedures support a new
system. Also social factors i.e. how the organisational changes will
affect the working lives of those affected by the system.

Schedule feasibility
Looks at how long the system will take to develop, or whether it
can be completed in a given time period using some methods
like payback period.

Cultural Feasibility study

In this stage, the project's alternatives are evaluated for their impact
on the local and general culture. This may also include the SOCIAL
ECONOMIC EFFECT also.

Legal Feasibility study

All projects must face legal scrutiny. However, any project may face
legal issues after completion too.

Marketing Feasibility study

This will include analysis of single and multi-dimensional market
forces that could affect the commercial operation.

Project viability
Return on investment (ROI)
The simplest way to ascertain whether the investment in a project is
viable is to calculate the return on investment (ROI).
Internal Rate of Return (IRR)
Higher the discount rate (usually the cost of borrowing) of a project,
the lower the Net Present Value (NPV). There must therefore come
a point at which the discount rate is such that the NPV becomes
zero. At this point the project ceases to be viable and the discount
rate at this point is the Internal Rate of Return (IRR). In other words
it is the discount rate at which the NPV is 0.

Cost/benefit analysis
Once the cost of the project has been determined, an analysis has
to be carried out which compares these costs with the perceived
benefits. The first cost/ benefit analysis should be carried out as part
of the business case investment appraisal, but in practice such an
analysis should really be undertaken at the end of every phase of
the life cycle to ensure that the project is still viable. The phase
interfaces give management the opportunity to proceed with, or
alternatively, abort the project if there is an unacceptable escalation
in costs or a diminution of the benefits due to changes in market
conditions such as a reduction in demand caused by political,
economic, climatic, demographic or a host of other reasons.

Types of Benefits
Benefits may be classified into one of the following categories:
Monetary -- when Rs.-values can be calculated
Tangible (Quantified) -- when benefits can be quantified, but Rs.values can't be calculated
Intangible -- when neither of the above applies
How to identify benefits?
By organizational level (operational, lower/middle/higher management)
by department (production, purchasing, sales,...)
by Ministry level
by National level

Types of Costs
Project-related costs
Development and purchasing costs: who builds the system
(internally or contracted out)?
Installation and conversion costs: installing the system, training
of personnel, file conversion,....
Operational costs (on-going)
Maintenance: hardware (maintenance, materials, fees and
contracts...), facilities
Personnel: operation, maintenance

The role of the project team

There are many groups of people involved in both the project
and project management lifecycles.
The Project Team is the group responsible for planning and
executing the project. It consists of a Project Manager and a
variable number of Project Team members, who are brought in
to deliver their tasks according to the project schedule.

The Role of the Project Manager

Primary responsibility of the project manager is to ensure that all
work is completed on time, within budget and scope, and at the
correct performance level.
That is, project managers primary role is to manage the project,
not do the work!
This is not a technical job. It is about getting people to perform
work that must be done to meet the objectives of the project. So
the first skills that a project manager needs are people skills.
Many project managers who have strong technical backgrounds
find it difficult to deal with people effectively. They are thingsoriented, not people-oriented.

Leadership and Management

The project managers job is mostly about dealing with people,
it is absolutely essential that you exercise leadership as well as
management skills.
The definition of leadership that seems to me to best express
the meaning of the word is that Leadership is the art of getting
others to want to do something that you believe should be done

Authority
The universal complaint from project managers is that they have
a lot of responsibility but no authority. It is true, and it is not likely
to change. It is the nature of the job. However, you cant
delegate responsibility without giving a person the authority
commensurate with the responsibility you want him to take, so
while the project managers authority might be limited, it cannot
be zero.
A word to project managers, however. I learned early in my
career as an engineer that you have as much authority as you are
willing to take. I know that sounds strange. We see authority as
something granted to us by the organization, but it turns out that
those individuals who take authority for granted usually get it
officially.

Questions

Organizational Influences on Project Management

The organizational culture, style, and structure influence how projects are
performed. An organizations degree of project management maturity and its
project management systems can also influence the project. When a project
involves external entities as part of a joint venture or partnering, the project will
be influenced by more than one enterprise. The following sections describe
organizational characteristics and structures within an enterprise that are likely
to influence the project.

Most organizations have developed unique cultures that manifest in

numerous ways:
Shared visions, values, norms, beliefs, and expectations,
Policies, methods, and procedures,
View of authority relationships, and
Work ethic and work hours.

Organizational Structure
Functional
Matrix
Projectized

Organizational Influences on Projects

Questions

Project Boundaries

Project Processes
1. Project Initiation Processes
2. Project Planning Processes
3. Project Executing Processes
4. Project Monitoring and Controlling Processes
5. Project Closing Processes

Project Initiation Processes

1.
2.

Develop Project Charter

Identify Stakeholders

Project Planning Processes

1. Develop Project Management Plan
2. Collect Requirements
3. Define Scope
4. Create WBS
5. Define Activities
6. Sequence Activities
7. Estimate Activity Resources
8. Estimate Activity Durations
9. Develop Schedule
10. Estimate Costs
11. Determine Budget
12. Plan Quality
13. Develop Human Resource Plan
14. Plan Communications
15. Plan Risk Management
16. Identify Risks
17. Perform Qualitative Risk Analysis
18. Perform Quantitative Risk Analysis
19. Plan Risk Responses
20. Plan Procurements

Project Executing Processes

1.
2.
3.
4.
5.
6.
7.
8.

Direct and Manage Project Execution

Perform Quality Assurance
Acquire Project Team
Develop Project Team
Manage Project Team
Distribute Information
Manage Stakeholder Expectations
Conduct Procurements

Project Monitoring and Controlling Processes

1. Monitor and Control Project Work
2. Perform Integrated Change Control
3. Verify Scope
4. Control Scope
5. Control Schedule
6. Control Costs
7. Perform Quality Control
8. Report Performance
9. Monitor and Control Risks
10. Administer Procurements

Project Closing Processes

1. Close Project or Phase
2. Close Procurements

Questions

Thank You