Introduction to Project Management

Lesson 01—Introduction to Project Management

This course is based on PMBOK® Guide – Fifth Edition Copyright 2014, Simplilearn, All rights reserved.
PMP, PMI, PMBOK is a registered mark of PROJECT MANAGEMENT INSTITUTE®

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Objectives

After completing ● Define project, project management, program management, and portfolio
this lesson, you will management
be able to:
● Identify the roles of project management office

● Identify the project constraints

● Describe different organization structure

● Differentiate between a project life cycle and a product life cycle

● List the five project management process groups

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Project

The definition of Project is as follows:

A project is a temporary endeavor undertaken to create a unique product, service, or result.

Developing a new product, service, or result; constructing a building, industrial plant, or

infrastructure; and implementing, improving, or enhancing existing business processes and
procedures.

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Project Management

The definition of Project Management is as follows:

Project management is the application of knowledge, skills, and tools and techniques applied to
project activities to meet the project requirements.

Project management is performed by applying and integrating the 47 project management processes,
which are logically grouped into five process groups.

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Program Management

The definition of Program Management is as follows:

The application of knowledge, skills, tools, and techniques to a program to meet the
program requirements and to obtain benefits and control not available by managing projects
individually.

A program is defined as a group of related projects, subprograms, and program activities managed in
a coordinated way to obtain benefits not available from managing them individually.

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Portfolio Management

The definition of Portfolio Management is as follows:

Portfolio management is the centralized management of one or more portfolios to achieve

strategic objectives.

Portfolio management includes identifying, prioritizing, authorizing, managing, and controlling

projects, programs, and other related work to achieve strategic business objectives.

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Relationship between Portfolios, Programs, and Projects

The relationship between Portfolios, Programs, and Projects is shown below.

Portfolio
Represents a portion of an
organization’s overall
business strategy. Sub-
Programs Projects
portfolios

The components can

further be broken down Programs Projects
Sub-
Projects Other work
programs
into smaller components
for ease of management.

A portfolio may contain

programs, projects, and
also other work. Projects Other work Projects Other work

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Project Management Office

A Project Management Office (PMO) is a specific type of body, or department, within an organization.
The roles of PMO are as follows:

Primary Roles Other Roles

PMO usually has one or a combination of the PMO may also help in the following areas:
following three primary roles: ● Managing interdependencies between
● It provides the policies, methodologies, and projects.
tools and templates for managing projects ● Selecting, managing, and deploying shared
within the organization. or dedicated project resources.
● It provides support and training in the ● Terminating projects.
organization on how to manage projects. ● Organizing lessons-learnt sessions.
● It provides project managers for ongoing ● Maintaining the project management
projects in the organization. knowledge base for an organization.

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Managing the Triple Constraints

Project constraints can be summarized as follows:

Time
HR

Risk Stakeholder
Scope Cost

Integration
Time Cost

Procurement Communication

Quality Scope

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Organization Structure

The different organization structures, based on the level of authority vested in the project manager,
are as follows:

The term ‘tight matrix’ refers to a ‘co-located’ team, i.e., a team that has been placed in the same location
! enhance their performance.
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Functional Organization

Characteristics of a functional organization are as follows:

● Resources are grouped by functions or departments.

● Functions have a definite role and are headed by a

Executive Level
supervisor.
Function Function Function Function
● All the resources report directly into their functions. Head Head Head Head

● Project manager’s role is not explicitly defined. Project Project Project

Resource
Resource Resource Resource
Resources from within the function play the role of a
Project
project manager. Resource Resource Resource
Resource

● Functional organizations provide an opportunity for

specialization.
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Projectized Organization

Characteristics of a projectized organization are as follows:

● Resources are aligned to projects.

● Project managers have complete control over the project Executive Level
resources. Project Project Project Project
Manager Manager Manager Manager
● Project execution becomes easier because of the 1 2 3 4
dedicated resources. Project
Resource Resource Resource
Resource
● Role of the resources cease once the project is
Project
Resource Resource Resource
completed. Resource

● Scope for functional specialization is limited.

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Matrix Organization

Characteristics of a matrix organization are as follows:

● Resources report to functional managers and aligned to

project managers.
Executive Level
● In a weak matrix, the authority of the project manager is
Project
Function Head Function Head Function Head
the weakest, and strongest in a strong matrix. Management

● It provides for optimal utilization of resources and Project Project Project Project
Resource Resource Resource Manager

functional specialization.
Resource Resource Resource Resource
● Dual reporting structure increases the communication
cost.

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Project Lifecycle vs. Product Lifecycle

Project life cycle spans the initiation of a project until the closure, while product life cycle
encompasses the operational and maintenance phases.

● A typical product life cycle starts with the conception of the product and goes until its withdrawal
from the market or when it becomes obsolete.

● Product has a long life cycle; it can require or spawn many projects over its life.

● A project life cycle depends upon the control needs of the performing organization or the
organization’s preference defined in their project execution methodology.

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Project Management Process Map

47 processes in project management are grouped into 10 Knowledge Areas, and mapped to 5 Process
Groups.

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Project Management Process Groups

The five Project Management Process Groups are as follows:

Process Group Dashboard

Monitoring and
Initiating Process Planning Process Executing Closing Process
Controlling
Group Group Process Group Group
Process Group

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Initiating Process Group

Initiating Process Group defines a new project or phase. When the project charter is approved, the
project is officially authorized.
Inputs Actions taken
● Project statement of work ● Review the statement of work and business case
● Agreements ● Clarify the assumptions and constraints
● Business case ● Establish the feasibility of the project
● Enterprise environmental factors ● Identify the key stakeholders of the project and
● Organizational process assets their interest in the project
● Procurement documents ● Confirm the organization’s willingness and
capability to work on the project

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Planning Process Group

Planning Process Group establishes the total scope of effort, objectives, and course of action required
to attain those objectives.
Inputs Actions taken
● Project charter ● Refine requirements and convert it into a scope
● Requirements statement and the work breakdown structure
● Stakeholder register ● Get stakeholder approval and buy-in
● Organizational process assets ● Develop the baseline scope, cost, and schedule
● Enterprise environmental factors ● Select project team and determine their roles and
● Resource calendars responsibilities
● Work performance information ● Determine project’s quality standards and plan
● Framework for risk management, identification,
analysis, and response planning
● Determine what needs to be purchased
● Determine how to execute and control the project
● Document the project management plan
● Handle updates on the plan arising out of change
requests
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Executing Process Group

Executing Process Group completes the work defined in the project management plan to satisfy the
project specifications.
Inputs Actions taken
● Project management plan ● Manage stakeholder engagements
● Resource calendars ● Deliver the work packages as planned
● Project documents ● Implement quality assurance activities
● Enterprise environmental factors ● Produce project reports
● Seller proposals ● Remove project bottlenecks
● Approved change requests ● Organize team building activities
● Quality control measurements ● Organize training for the team members
● Work performance report ● Conduct project progress meetings
● Make-or-buy decisions ● Implement approved changes, corrective actions,
● Source selection criteria preventive actions, and defect repair
● Finalize procurement arrangements and contracts

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Monitoring and Controlling Process Group

Monitoring and Controlling Process Group tracks, reviews, and regulates the progress and
performance of the project; identifies and initiates the changes to the plan when required.
Inputs Actions taken
● Deliverables ● Measure project performance against the
● Work performance data baseline
● Change requests ● Determine variances and take appropriate action
● Organizational process assets ● Recommend changes, corrective, and preventive
● Project management plan and documents action
● Selected sellers ● Facilitate conflict resolution
● Identify root causes of problems
● Obtain formal acceptance for the deliverables
● Administer contracts with sellers
● Control changes
● Conduct status review meetings, etc.

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Closing Process Group

Closing Process Group finalizes the activities across all Project Management Process Groups to
formally complete the project, phase, or contractual obligations.
Inputs Actions taken
● Project plan and documents ● Confirm that all project requirements are met
● Accepted project deliverables ● Obtain formal signoff from customer
● Procurement documentation ● Make payment to all parties and update cost
● Organizational process assets records
● Enterprise environmental factors ● Complete contract closure
● Update lessons learned database
● Measure customer satisfaction
● Handover project deliverables to operations team
● Release resources from the project

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 Quiz

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 A project manager is working on a project to construct a new bridge. The resources
QUIZ report to the functional manager and are mainly occupied with operational work. The
1 project manager has no authority to properly assign resources. What type of
organizational structure is the project manager in?

a. Functional
b. Projectized
c. Strong Matrix
d. Weak Matrix

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 A project manager is working on a project to construct a new bridge. The resources
QUIZ report to the functional manager and are mainly occupied with operational work. The
1 project manager has no authority to properly assign resources. What type of
organizational structure is the project manager in?

a. Functional
b. Projectized
c. Strong Matrix
d. Weak Matrix

Answer: a.
Explanation: In a functional organization, team members are more concerned with their
daily functional activities than with the project activities.

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 QUIZ
Who does the project team report to in a projectized organization?
2

a. No one
b. Project manager
c. Functional manager
d. CEO

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 QUIZ
Who does the project team report to in a projectized organization?
2

a. No one
b. Project manager
c. Functional manager
d. CEO

Answer: b.
Explanation: In a projectized organization, project team reports to the project manager.

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 QUIZ
How is a project life cycle different from product life cycle?
3

a. A project life cycle has no methodology

b. A project life cycle depends on the control needs of the performing
organization
c. A project life cycle can contain many product life cycles
d. A project life cycle only includes specific project management activities

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 QUIZ
How is a project life cycle different from product life cycle?
3

a. A project life cycle has no methodology

b. A project life cycle depends on the control needs of the performing
organization
c. A project life cycle can contain many product life cycles
d. A project life cycle only includes specific project management activities

Answer: b.
Explanation: A project life cycle depends on the control needs of the performing
organization. Choice C is just the opposite, i.e., a product life cycle can include many projects
through its life cycle, not the other way around.

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Summary

Here is a quick ● Project management is the application of knowledge, skills, and tools and
recap of what was techniques applied to project activities to meet the project requirements.
covered in this ● PMO provides the policies, methodologies, and tools and templates for
lesson:
managing projects within the organization.
● Triple constraints are scope, cost, and time.
● Functional, projectized, and matrix are the three types of organization
structures, based on the level of authority given to the project manager.
● Project life cycle spans the initiation of a project until the closure while
product life cycle, also encompasses the operational and maintenance
phases.
● There are 47 processes in project management grouped into ten knowledge
areas, and mapped to five Process Groups.

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 Thank You

This course is based on PMBOK® Guide – Fifth Edition Copyright 2014, Simplilearn, All rights reserved.
PMP, PMI, PMBOK is a registered mark of PROJECT MANAGEMENT INSTITUTE®

30 Copyright 2014, Simplilearn, All rights reserved.