Project Management

Ground Rules
 Be on time.
 Take notes and study, study, study!
 No cell phones, or email during the session.
 One person speaks at a time; i.e. (No side discussions).
 Do not interrupt speaker. If you need to, ask the trainer with raising your hand or you may do
so when asked.
 Respect and value that everyone is different and will think differently about things. We are
happy that everyone is different and thinks differently.
 Listen to each other.
 Use plain and simple English. Do not talk for too long, and talk slowly.
 Be polite; don’t be rude to each other. If you disagree about something concentrate on the
thing you are talking about not the person involved.
 Participate, participate and participate
 Mutual respect should be a guiding principle, along with open sharing of information. For
example: No one will withhold pertinent information. All ideas will be treated openly and
with respect. No derogatory or negative phrases will be used.

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  Background?

 Tell us about your self, concerns at

workplace! Why are you here?? and
Expectation from this course?

 Ice Breaker (PM) – Pre Test

Course Objectives
1. To familiarize participants with the basics of Management by Projects
approach or Project Management.

2. To familiarize participants with standard best practices of PMI.

3. To learn how to use tools for organizing, defining, deriving, communicating

and accurately summarizing project information for meaningful conclusion.

4. To accustom participants with the importance of PMBOK frame work.

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 Agenda
1. Understanding Project, Project Management and the Project
Management Life Cycle

2. Initiating and Chartering the Project

3. Exercises

Before everything? Do you Know?

Statistics:

85-90% projects fail i.e. (8.5-

(8.5-9 in
every 10 you start)

Why?
Ref: Gartner

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 Why?
Few causes of project failure
 Failure to establish upper-management commitment to the project
 Lack of organization’s commitment to the project development
methodology
 Taking shortcuts through or around the methodology
 Premature commitment to a fixed budget and schedule
 Poor estimating techniques
 The mythical man-month
 Inadequate people management skills (Conflict MGT)
 Insufficient resources
 Failure to “manage to the plan”
 Over optimism – I know what I am doing - I am the expert - I have
experience (What you may not realize is “you may have 5 years
of experience of doing things the wrong way”) way”)

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 Factors of
Success.
Your Thought?

Measures of Project Success

The resulting project is acceptable to the
customer.

The product or service was delivered “on time.”

The product or service was delivered “within budget.”
The product or service was delivered “within scope”.
The process had a “minimal impact” on
ongoing business operations.

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Understanding Project, Project
Management and the Project
Management Life Cycle

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What is Project? Meet an objective
You must understand the definition of a project. i.e.
 Temporary endeavor with a definite beginning and an end
 Creates a unique product, service or result
 Is progressively elaborated-distinguishing characteristics of each unique
project will be progressively detailed as the project is better understood.
 A successful project is one that meets the expectations of your stakeholders.

Operational work (Process), Sustain

Operational work is ongoing work, like manufacturing, rather than a project.

Ref: PMBOK

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Project management brings together a set of Knowledge, skills, tools and
techniques—performed by people— to describe, organize, and monitor the
work of project activities.

PMI breaks project management into Professional and Social

Responsibility, Knowledge areas and Process groups.

Project Managers are the people responsible for managing the project
processes and applying the tools and techniques used to carry out the
project activities.

Ref: PMBOK

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What we mostly forget!!! Environment
Cultural and social environment. The team needs to understand
how the project affects people and how people affect 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.

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.

Knowledge
Areas , Process
Groups
Assignment

PMI-PMBOK
FRAMEWORK

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 PMI’s Ten Project Management
Knowledge Areas
1. Integration Management
2. Scope Management
3. Time Management
4. Cost Management
5. Quality Management
6. Human Resource Management
7. Communications Management
8. Risk Management
9. Procurement Management
10. Project Stakeholders Management

Programs: Why ?
They are groups of related projects that are managed using the same
techniques in a coordinated fashion.
When projects are managed collectively as programs, they capitalize on
benefits that wouldn’t be achievable if the projects were managed
separately.
The hierarchy

1. Strategic Plan. Economic Development of Iraq.

2. Portfolio (Domain) Group of related or nonrelated programs.
Industry, Health, Education, Environment, Social Sector,
Infrastructure.
3. Program Group of related projects ERP.
4. Project (Individual stair). FinMS, HRMS, AcMS, ProMS, SCMS.
5. Sub Project (Part of a stair). Attendance, Pays, Evaluation,
Purchase, .
Ref: PMBOK

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 PMO

PMO and PMO Forms

 Supportive:
Provide policies, methodology, templates, lessons learned
for managing project within an organization. (Low level
control)
 Controlling:
Provide guidance, manage projects in an organization, train
others, assist with specific tools, ensure compliance.
(Moderate level controls)
 Directive:
Responsible for results, and directives :All projects or
projects of certain size, type and or influence (High Level
Control)

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Identify the Form

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Organization
1. Functional
2. Weak Matrix
3. Balanced Matrix
4. Strong Matrix
5. Projectized

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 In a projectized organization?
1. Team reports to many bosses
2. Team reports to project manager only
3. Team reports to functional manager

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 All of the following are characteristics of
a project except?
1. Temporary
2. Definite beginning and definite ending
3. Interrelated activities
4. Repeats itself every month

 A project manager is trying to complete a software

development project, but cannot get enough
attention. Resources are focused on completing
process-related work, and the project manager has
little authority to assign resources. What form of
organization must the PM be working in?

1. Functional
2. Matrix
3. Expediter
4. Coordinator

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 What is a program?
An initiative set up by management
A means to gain benefits and control of
related projects
A group of unrelated projects managed in
coordinated way
A government regulation

Initiating a Project
1.PC
Project Initiation Document (PID)
Foundation!!!
Most Important

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The Project Charter
 The project charter is the project’s “license to do
business.”
 It should come from someone outside the project
itself with funding-access, resource-assignment, and
decision-making authority sufficient to support the
project.
This person is usually referred to as the project
sponsor.

Who is Sponsor?

President, Vice President, Director, Deputy Director, Principal,

Owner , Ministers, Country Head/Manager , Senior Executives etc

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Why Have a Project Charter?
Primary purpose:
 To get approval to proceed with the project and

obtain sufficient approval for resources to move to

the next phase of the project.
 Communicate to stakeholders and other interested

parties the mission and the project’s objectives.

 Communicate to the project team what they are

expected to accomplish.

Other Terms

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Project Charter Components*

1. Project Description
2. Business Need
3. Business Case
4. Stake holders, requirements
5. Resources Pre-assigned
6. PM Authorization
7. Summary Milestones
8. Summary Budget
9. Assumptions, Constraints
10. High level risks
11. Signature Page Granting Authority to
Proceed

Project Description

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Business need

The business need for the project here relates to the

needs of the organization itself.

The need might be based on training, governmental

standards, technological advances, market
demands, social need or a legal requirement.

Business need Cont…..

 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).

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 Project Stakeholders: Partial List of Candidates for
Stakeholder Roles

 Project benefactor and upper management

Project sponsor
Project Office/project advisory boards
Executive Management
 Project requestor
 Project manager and team
If a team member has a line manager, he or she is a key stakeholder as well. (He or she
holds the strings for your team member.)
 Internal Consultants
Legal
Audit
Telecommunications
IT infrastructure
Quality assurance
Human Resources Department
 External entities affected by the project
Customers
Vendors
Governmental agencies

Stakeholder Register

Rita Mulcahy

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Sample register

Requirements List

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Sample requirements list

Why would they be so important?

$
$

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Why would they be so important?"
Identify ALL of them: When they are uncovered later, they will make changes and
could cause delays. Changes made later in the project are much more costly and
harder to integrate than those made earlier.
Determine ALL of their requirements: To realize why this is important, think about
the effects of starting a project without all the requirements. Those effects would
likely include changes, delay and possible failure.
Determine their expectations: These are things the stakeholders expect to happen
to them, their department and the company as a whole. They tend to be much more
ambiguous than stated requirements. Such as“ I expect that this project will not
interrupt my department's work“
Communicate with them. Stakeholders' communications requirements must be
determined early. They are included in project presentations and receive project
information including progress reports, updates and changes to the project
management plan.
Manage their influence in relation to the requirements to ensure a successful project.

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Your Turn: Identifying Project Stakeholders
Potential Stakeholders
Stakeholders Inside the Team

Stakeholders Within the Walls the Organization

Stakeholders Outside the Organization

Questions!!!!
A form of project organization where
power is evenly shared between the
functional manager and the project
manager is called:
 A tight matrix
 A weak matrix
 A balance matrix
 A strong matrix

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Questions!!!
In a projectized organization the project
team:

 Reports to many bosses

 Has no loyalty to the project
 Reports to the functional manager
 Will not always have home.

Questions!!!
A project manager has very little project
experience but he/she has been assigned as
the project manager of a new project.
Because he will be working in a matrix
organization to complete project, he can
expect communications to be:
 Simple
 Open and accurate
 Complex
 Hard to automate

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Resources Pre-Assigned
 How many or which resources will be provided by
the organization.
Purchase: Mr. Shwan
Data Networks : Mr. Samir
Human Resource: Aveen
Etc

Project Objectives-SMART
S—Specific Objectives should be specific and written in clear, concise, and
understandable terms. (Environmental friendly plastic recycling plant).

M—Measurable Objectives should be measurable. (2 Million $, 2 Story

Building, 4 Parking lots, 5 staff houses, 1 guest house etc)

A—Accurate Objectives should be accurate and should describe precisely

what’s required. (Over 20 Acres of land etc).

R—Realistic and tangible Objectives that are impossible to accomplish are not
realistic and not attainable. Objectives must be centered in reality. For
example, it’s not likely you and I will be sending up rocket ships full of chocolate
candies to sell to tourists visiting the moon anytime soon.

T—Time bound Objectives should have a time frame with an end date
assigned to them. (Complete by December 2012)

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 Constraints
Constraints are factors that limit the team's options such as limits on
resources, budget, schedule and scope (e.g., management saying the project
must be completed with only five resources).

In my organization, and I’m sure the same is true in yours, we have far
more project requests than we have resources to work on them. In this
case, resources are a constraint.
You might work on projects where you have an almost unlimited
Budget but time is the limitation.

The Triple Constraint

Constraint Required Adjustment Alternatives (One or Combination of

Change Both)
Shorter Time Higher Cost Reduced Quality or Narrowed
Scope
Reduced Cost More Time Reduced Quality or Narrowed
Scope
Higher Quality or More Time Higher Cost
Increased Scope

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 Triple Constraint: Setting Priorities
Priority Matrix
Constraint 1 2 3 Measurement
Time
Cost
Quality/Scope
•Must
Must be set by customer and sponsor near startup.
•May
May change over time, but a change is a significant event!

Example of a Completed Priority Matrix for a Construction Project

Constraint 1 2 3 Measurement
Building must be completed by October
Time X 31 of this year to accommodate corporate
move.
Costs for the project must not exceed
Cost X $22.5 million.
Must provide workspace for 120 call
Quality/Scope X center staff.

Assumptions
Assumptions are things that are assumed to be true
Assumptions, for the purposes of project management, are things you
believe to be true. For example, if you’re working on a large construction
project, you might make assumptions about the availability of materials.

You might assume that concrete, lumber, drywall, and so on, are widely
available and reasonably priced. You might also assume that finding
contract labor is either easy or difficult, depending on the economic times
and the availability of labor in your locale.

Other assumptions could be factors such as vendor delivery times, product

availability, contractor availability, the accuracy of the project plan, the
assumption that key project members will perform adequately, contract
signing dates, project start dates, and project phase start dates.

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 Milestones

Milestones are typically points in the project where

something significant is achieved or completed.
Or

Milestones are events that signify the accomplishment or

completion of major deliverables during a project.

Use of Milestone charts.

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Some Simple Tools (continued)
Schedule Milestones

ID Milestone Scheduled Actual Variance

Completion Completion in Days

Cost Estimates

Cost estimates is the section where you list the cost

estimates for the project.
1. Rough Order of Magnitude: -25/+75
2. Budget Estimate: -10/+25
3. Definitive Budget :- :-5/+10

This should include overall costs for the project and

some level of confidence in that estimate.

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 Approval Requirements

Some Simple Tools (continued)

Cost-to-Date Milestones
ID Milestone Scheduled Actual Cost-to-
Cost to Cost Date
Date to Variance
Date

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 Risk Identification Worksheet
 Enter risk scenario (how an event could Risk Identification Worksheet
Scenario:
jeopardize project outcome).

 Rate probability, impact, and degree of Probability Impact Control Index

control using rating scale of:
1 = Low Financial Impact:

2 = Medium Risk Index = Probability * Impact

Control
Action to be Taken: Ignore Eliminate Manage
3 = High
Strategy:
 Compute risk index using formula:
Detail:

 If possible, enter financial impact.

Contingencies Reserve: (EMV=P*I)
 Determine actions to take: Manager of This Risk:

Ignore (do nothing)

Time:
Eliminate (sidestep)
Actions Taken
Manage Action: Date:

 For managed risks, indicate mitigations

and contingencies and assign risk
manager.
 Log actions taken as they occur.

Giving Risks Priorities

Maintain inventory of all risks identified—
identified—updating probabilities, impacts, and controls if changes occur.

Risk Priority Worksheet

Risk ID Risk Scenario Probability Impact Control Index
1 Key stakeholders unavailable during project definition phase 2 3 2 3
2 Vendors late in delivering required software for security system 2 2 1 4
3 Loss of key team member in middle of project 1 3 2 1.5
4 Power failure due to seasonal storms 1 3 1 3
5 Final regulations controlling administration of new system late 2 3 1 6
6 Scope changes require additional tasks and resources 2 3 2 3

Risk Prioritization Matrix

Risk ID Risk Scenario Probability Impact Control Index
5 Final regulations controlling administration of new system late 2 3 1 6
2 Vendors late in delivering required software for security system 2 2 1 4
1 Key stakeholders unavailable during project definition phase 2 3 2 3
4 Power failure due to seasonal storms 1 3 1 3
6 Scope changes require additional tasks and resources 2 3 2 3
3 Loss of key team member in middle of project* 1 3 2 1.5

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Your Turn: Project Risk Scenarios
Risk Identification Worksheet
Scenario:

Probability Impact Control Index

1. Individually identify and jot
down four possible risk Financial Impact:

scenarios that this project

might face. Action to be Taken: Ignore Eliminate Manage
Mitigations:

2. Share these within your group,

and create a Risk Priority
Worksheet of your pooled
Contingencies:
risks.
3. Score the risks.
4. For the top two, brainstorm at Manager of This Risk:

least one mitigation and one Actions Taken

contingency.
contingency. Action: Date:

5. Use the Risk Identification

Worksheet as a guide, but you
do not need to complete one
for this exercise.

High Level Risks

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 Project Charter Worksheet
Proje ct Mission
Writ e Projec t Miss ion Stat ement H ere:

Proje ct Scope
Brief s tat ement of project sc ope. (Supplement wit h Product Scope and Projec t Scope Di agrams as part of
appendix.)

Proje ct Obje ctive s

List at least three SMART Objec tiv es .

Proje ct Assumptions
List at least three Project As sumptions .

Proje ct Constraints
See Project Pri ori ty Matrix in Appendix. List any other cons traint s here.

Proje ct Phase s
Indi cat e t he phas es of the propos ed project .

Mile stone s
List major milest ones for project ident ifi ed so far (inc lude at least fiv e t hroughout the li fe of the project .

Proje ct Risks
Attach Ri sk Ident ific at ion Work sheets and Risk Priority Work sheet.

Stake holde rs
Attach Potenti al Stakehol ders Works heet.

Signature Page Granting Authority to Proce e d

Obt ain si gnatures of Project Sponsor and Project Manager.
Project Sponsor Signat ure:
Project Manager Signat ure:

Summary

Reference Books:
1. Rita Mulcahy 10th Edition
1. http://www.rmcproject.com

2. PMBOK 6th Edition

1. www.pmi.org

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