PROJECT MANAGEMENT FUNDAMENTALS

Contents
Definition of a Project: ........................................................................................................................................... 2
Characteristics of the Project: ................................................................................................................................ 3
Factors Influencing a Project ................................................................................................................................. 5
Importance of Project Management ....................................................................................................................... 6
Relationship of Portfolio, Program, Project and Operations Management ............................................................. 7
Portfolio Management ........................................................................................................................................... 8
Program Management ........................................................................................................................................... 9
Operations Management ..................................................................................................................................... 10
Operations and Project Management .................................................................................................................. 10
Organizational Project Environment .................................................................................................................... 11
Project Development Lifecycles ........................................................................................................................... 12
Project Management Process Groups ................................................................................................................. 13
Project Management Process Groups & Knowledge Areas Mapping .................................................................. 14
 PROJECT MANAGEMENT FUNDAMENTALS

Definition of a Project:
 PROJECT MANAGEMENT FUNDAMENTALS

Characteristics of the Project:

PROJECT MANAGEMENT FUNDAMENTALS
 PROJECT MANAGEMENT FUNDAMENTALS

Factors Influencing a Project

 PROJECT MANAGEMENT FUNDAMENTALS

Importance of Project Management

 PROJECT MANAGEMENT FUNDAMENTALS

Relationship of Portfolio, Program, Project and Operations Management

• A project is a temporary endeavor undertaken by a company or organization (such as the creation of a

new product, service, or result).
• A program is a group of projects that are similar or related to one another and that are often managed as
a group instead of independently.
• A portfolio is a group of programs and/or projects within the same organization, which may be related or
unrelated to one another.

Put another way, projects fit within larger programs, which themselves fit within portfolios.

Though related, tasks associated with project, program, and portfolio management are very different.
 PROJECT MANAGEMENT FUNDAMENTALS

Portfolio Management
A portfolio is a collection of projects and programs that are managed as a group to achieve strategic objectives.
An organization may have one portfolio, which would then consist of all projects, programs, and operational work
within the company. It may also establish several portfolios for different purposes, depending on its size and goals.

A portfolio is defined as projects, programs, subsidiary portfolios, and operations managed as a group to achieve
strategic objectives.

Portfolio management is defined as the centralized management of one or more portfolios to achieve strategic
objectives. The programs or projects of the portfolio may not necessarily be interdependent or directly related.

The aim of portfolio management is to:

• Guide organizational investment decisions.
• Select the optimal mix of programs and projects to meet strategic objectives.
• Provide decision-making transparency.
• Prioritize team and physical resource allocation.
• Increase the likelihood of realizing the desired return on investment.
• Centralize the management of the aggregate risk profile of all components.

Portfolio management also confirms that the portfolio is consistent with and aligned with organizational strategies.

Maximizing the value of the portfolio requires careful examination of the components that comprise the portfolio.
Components are prioritized so that those contributing the most to the organization's strategic objectives have the
required financial, team, and physical resources.

For example, an infrastructure organization that has the strategic objective of maximizing the return on its
investments may put together a portfolio that includes a mix of projects in oil and gas, power, water, roads, rail,
and airports. From this mix, the organization may choose to manage related projects as one portfolio. All of the
power 45 projects may be grouped together as a power portfolio. Similarly, all of the water projects may be grouped
together as a water portfolio. However, when the organization has projects in designing and constructing a power
plant and then operates the power plant to generate energy, those related projects can be grouped in one program.
Thus, the power program and similar water program become integral components of the portfolio of the
infrastructure organization.
 PROJECT MANAGEMENT FUNDAMENTALS

Program Management
Program management is defined as the application of knowledge, skills, and principles to a program to achieve
the program objectives and to obtain benefits and control not available by managing program components
individually. A program component refers to projects and other programs within a program.

Project management focuses on interdependencies within a project to determine the optimal approach for
managing the project. Program management focuses on the interdependencies between projects and between
projects and the program level to determine the optimal approach for managing them.

Actions related to these program and project-level interdependencies may include:

• Aligning with the organizational or strategic direction that affects program and project goals and
objectives.
• Allocating the program scope into program components.
• Managing interdependencies among the components of the program to best serve the program.
• Managing program risks that may impact multiple projects in the program.
• Resolving constraints and conflicts that affect multiple projects within the program.
• Resolving issues between component projects and the program level.
• Managing change requests within a shared governance framework.
• Allocating budgets across multiple projects within the program.
• Assuring benefits realization from the program and component projects.

An example of a program is a new communications satellite system with projects for the design and construction
of the satellite and the ground stations, the launch of the satellite, and the integration of the system.
 PROJECT MANAGEMENT FUNDAMENTALS

Operations Management
Operations management is an area that is outside the scope of formal project management as described in this
guide. Operations management is concerned with the ongoing production of goods and/or services.

It ensures that business operations continue efficiently by using the optimal resources needed to meet customer
demands. It is concerned with managing processes that transform inputs (e.g., materials, components, energy,
and labor) into outputs (e.g., products, goods, and/or services).

Operations are the ongoing executions of activities that produce the same output or repetitive service. Operations
do not produce new things, but they are necessary sustain a system. Operations are used to run regular business
models, achieve the goals, and support the business.

Operations and Project Management

Changes in business or organizational operations may be the focus of a project — especially when there are
substantial changes to business operations as a result of a new product or service delivery.

Ongoing operations are outside of the scope of a project; however, there are intersecting points where the two
areas cross. Projects can intersect with operations at various points during the product life cycle, such as;
• When developing a new product
• upgrading a product, or expanding outputs
• While improving operations or the product development process
• At the end of the product life cycle
• At each closeout phase.

At each point, deliverables and knowledge are transferred between the project and operations for implementation
of the delivered work. This implementation occurs through a transfer of project resources or knowledge to
operations or through a transfer of operational resources to the project.
 PROJECT MANAGEMENT FUNDAMENTALS

Organizational Project Environment

Portfolios, programs, and projects are aligned with or driven by organizational strategies and differ in the way each
contributes to the achievement of strategic goals:

• Portfolio management aligns portfolios with organizational strategies by selecting the right programs or
projects, prioritizing the work, and providing the needed resources.

• Program management harmonizes its program components and controls interdependencies in order to
realize specified benefits.

• Project management enables the achievement of organizational goals and objectives.

Within portfolios or programs, projects are a means of achieving organizational goals and objectives. This is often
accomplished in the context of a strategic plan that is the primary factor guiding investments in projects. Alignment
with the organization's strategic business goals can be achieved through the systematic management of portfolios,
programs, and projects through the application of organizational project management.
 PROJECT MANAGEMENT FUNDAMENTALS

Project Development Lifecycles

 PROJECT MANAGEMENT FUNDAMENTALS

Project Management Process Groups

 PROJECT MANAGEMENT FUNDAMENTALS

Project Management Process Groups & Knowledge Areas Mapping

Process Groups
Knowledge Groups
Initiating Planning Executing Monitoring & Controlling Closing
1.5 Monitor and
1.3 Direct and Manage
Control Project Work 1.7 Close
1.2 Develop Project Project Work
1 Integration Management 1.1 Develop Project Charter
Management Plan 1.4 Manage Project
1.6 Perform Project or
Integrated Change Phase
Knowledge
Control
2.1 Plan Scope Management
2.2 Collect Requirements 2.5 Validate Scope
2 Scope Management 2.3 Define Scope 2.6 Control Scope
2.4 Create WBS
3.1 Plan Schedule Management
3.2 Define Activities
3 Schedule Management 3.3 Sequence Activities 3.6 Control Schedule
3.4 Estimate Activity Durations
3.5 Develop Schedule
4.1 Plan Cost Management
4 Cost Management 4.2 Estimate Costs 4.4 Control Costs
4.3 Determine Budget
5 Quality Management 5.1 Plan Quality Management 5.2 Manage Quality 5.3 Control Quality
6.1 Accquire Resources
6.1 Plan Resource Management
6 Resource Management 6.2 Estimate Resource Activity
6.2 Develop Team 6.4 Control Resources
6.3 Manage Team

7 Communication Management 7.1 Plan Communication Management 7.2 Manage Communications 7.3 Monitor Communications

8.1 Plan Risk Management

8.2 Identify Risks
8.3 Perform Qualitative Risk
8.6 Implement Risk
8 Risk Management Analysis
Responses
8.7 Monitor Risks
8.4 Perform Quantitative Risk
Analysis
8.5 Plan Risk Responses
9 Procurement Management 9.1 Plan Procurement Management 9.2 Conduct Procurements 9.3 Control Procurements
10.3 Manage Stakeholders 10.4 Monitor Stakeholders
10 Stakeholder Management 10.1 Identify Stakeholders 10.1 Plan Stakeholders Management
Engagement Engagement