CHAPTER 12

PROJECT
MANAGEMENT
CHAPTER 12

PROJECT
MANAGEMENT
Project Management
- consists of the process of defining, performing, and monitoring specific
work, bounded by a timeline, a defined scope, and goals. It is often
performed by a team and given a budget to work with.

Project
- a temporary endeavor undertaken to create a unique product, service,
or result. (PMI)
Two Characteristics that define a PROJECT
UNIQUE — Projects are unique because they produce unique outcomes,
ranging from highways, buildings, weapons, and computer
systems, machines, new products, and the like.
TEMPORARY — Projects have a life cycle that affects their dynamics,
structure, and operations, so project management is heavily influenced
by this life cycle. Projects have a start that can be a discrete date or they
could begin to emerge as business leaders identify a need, begin
discussing its characteristics, hold meetings, and ask someone to put together a
proposal. Projects also have an end date when agreed upon deliverables
should be handed over.
IVE PHASES OF PROJECT
1 INITIATION
PLANNING
EXECUTING
CLOSING
MONITORING AND CONTROLLING
INITIATION — This is the first stage of the project. One of the key tasks
performed during this phase is defining the overall project goal. Defining
the goals(s) may seem simple and obvious, but it is not as easy as it
sounds.
 A PM MUST BE A:
LEADER.
The PM should motivate, establish the direction for the
team, show initiative, and produce change. This individual must also
be innovative, serve as a role model for everyone, and influence
others through words, actions, and directives while inspiring everyone
to put in their best performance.
INITIATOR.
The PM should realize that their role goes far beyond
administrative duties, and relies heavily on the application of effective
management and human resource skills. This individual must be a self-
starter that turns ideas and plans into action.

ROLE MODEL.
The PM must walk the talk. Not only that, but also act
appropriately even beyond the words spoken. With expressions such
as “actions speak louder than words” and “what you do speaks so
loudly that I cannot hear what you say,” it is evident that PMs set the
tone among team members.
NEGOTIATOR.
Effective PMs must be able to navigate the diverse agendas of the
stakeholders and find agreement among them. This requires patience, effective
communication skills, but also the ability to discern their needs, wants, and
motivations.

LISTENER.
Too many leaders believe that “might is right” and that the effective
leader is the one that can force others to do as told.
COACH.
The administrative responsibilities of the PM are many. From managing the
budget, to authorizing and managing the staff’s time off, meeting deadlines, managing
the scope, and similar matters, some managers have no time left for coaching others.

WORKING MEMBER.
There is often enough work to go around when a project is underway, and it is
important for the PM to get involved and help out. By being part of the group and
working alongside the staff, the PM will demonstrate the concept of camaraderie and
team spirit, but also that the success and failure of the endeavor depends on the
results of the work done collectively.
FACILITATOR.
PMs are often required to speak publicly and make presentations to
various stakeholders. Whether it is to communicate the project’s goals, describe
the product features, or give others status updates, the PM should be an effective
communicator in the presence of small and larger groups.

EMPLOYER.
Since this team will be tasked with turning the project concept into
reality, the composition is essential for success since their skill, experience, and
motivation will drive the work that needs to be performed.
IVE PHASES OF PROJECT
INITIATION
2 PLANNING
EXECUTING
CLOSING
MONITORING AND CONTROLLING
PLANNING — The second phase of project management involves the
actions necessary to think and organize the activities necessary to achieve the
goals of the project. During this phase, a plan is created that defines more clearly
the precise tasks required to produce the project’s products and services,
establishes estimates of resource needs and related costs, and the amount of time
required to perform the necessary work
 The Critical Path Method and the
Program Evaluation and Review Technique
(PERT)
- While planning projects, the manager must identify the activities necessary to
achieve the project goals, and the sequence of these activities as well because
there are often dependencies between them, so some activities cannot be
performed unless preceding ones have been completed.

- Both tools show the critical path for a project, but while the Critical Path Method
(CPM) shows one time estimate for each task
 **Task Information**

1. **Laying Foundation (Task A):**

-Duration: 5 days
2. **Constructing Walls (Task B):**
-Duration: 8 days
3. **Finishing Interior (Task C):**
- Duration: 6 days
 **Task Dependencies:**

-Task A must be completed before Task B can start.

-Task B must be completed before Task C can start.
 **CPM (Critical Path Method):**

Determine the critical path, which is the longest path

through the tasks:
-**Path A B C:**
-Total Duration = 5 days (A) + 8 days (B) + 6 days (C)= 19 days
Both tools show the critical path for a project, but while the Critical Path Method
(CPM) shows one time estimate for each task

Program Evaluation and Review Technique (PERT) considers optimistic, most likely,
and pessimistic timeframes. This way, PERT includes an element of probability to
the time estimate calculated for the project.
Both techniques use a network of arrows and nodes to show the project’s activities.
The arrows show the task dependencies, while the nodes show where the tasks
interconnect. The arrows show the relationship and sequence of the activities,
while the nodes typically have information in them, such as the activity number, the
name of the task, and the amount of time needed to complete it.

Metrics such as the earliest start, the earliest finish, the latest start, and latest finish
for each activity provide clarity to what and when activities must be performed.
With the time estimates, the CPM shows the project’s critical path and where there
is slack time. The sequence of tasks on a project that will take longer than any other
set of tasks to get the project completed and have zero slack constitute the critical
path.
 This is an essential concept to minimize delays and work with a sense of
urgency and clear direction.
It is fairly common for the duration of an activity to have a range of values
due to multiple estimates, so managers may want to establish:
◾ An(0) optimistic estimate. Assuming that everything works according to the plan
and gets completed without unexpected circumstances.
◾ A (P)pessimistic estimate. This is based on the assumption that things go wrong
and the activity takes a long time to be completed.
◾ A(M) most likely scenario. Based on a reasonable assumption that the activity is
performed according to normal circumstances and the completion time lies
between the optimistic and the pessimistic estimates.
For example, if the amount of time required to perform data analytics has
estimates of 2 (optimistic), 4 (most likely), and 8 (pessimistic) days, we can calculate
the time to address the customer’s needs using the following formula:
te = (to + 4tm + tp)/6
where
to = optimistic time estimate
tm = most likely time estimate
tp = pessimistic time estimate

By substituting the values, the expected duration for the auditor to perform the
data analytics in our example is: T = (2 + 4(4) + 8)/6 = 4.3 days.
Internal auditors should review the preparation, use, and monitoring of the WBS,
Gantt Chart, and CPM/PERT during project management reviews.

Another critical aspect of project planning that when neglected causes many
problems and often results in cost overruns is the failure to link tasks and activities
in the schedule with the related costs and resource needs.
IVE PHASES OF PROJECT
INITIATION
PLANNING
3 EXECUTING
CLOSING
MONITORING AND CONTROLLING
EXECUTING — This phase is when the actual doing takes place. The major
objective is to keep the project on track after it has been launched and
do what the plan calls for.
The concept and plan are acted on and some of the most important activities
during this phase include:

◾ Leading and managing the team

◾ Meeting with the team members
◾ Communicating with stakeholders

Communication is key and one of the key reasons projects fail. Effective
communications must occur with all stakeholders, including project sponsors,
vendors, users, and financial units. Making sure that supplies are received on time
is essential, but quality issues must be communicated and corrected immediately as
well.
Another element of effective project management is obtaining necessary resources
when needed. Delays or inadequate substitution can be very damaging to the
successful completion of the project and often occur when conditions are
unexpected and there is a rush to address them.
IVE PHASES OF PROJECT
INITIATION
PLANNING
EXECUTING
4 CLOSING
MONITORING AND CONTROLLING
CLOSING — During this phase, the final products, services, and other
outcomes are delivered to the client. Ties to other organizations, such as the
host and suppliers, are ended and the project team is disbanded.
IVE PHASES OF PROJECT
INITIATION
PLANNING
EXECUTING
CLOSING
5 MONITORING AND CONTROLLING
 MONITORING AND CONTROLLING

Team leaders, and especially the PM, need to control what is being done, how it is
done, and by whom. The pace of project work, its costs, performance quality, and
meeting the expectations of relevant stakeholders are also key concerns and key
areas for project management oversight during the execution of the project. What
is required, but not getting done, should also be determined because they will
become the unmet deliverables and scope limitations that will haunt the project
later.
 Internal auditors should try to get a seat at the table earlier in the cycle,
get information, and provide advice to management during the initiation and
planning phases when internal and external negotiations are taking place to make
sure that, among other things:

◾ A project management methodology is in place

◾ Feasibility studies are competent and comprehensive
◾ The right stakeholders are summoned to provide input into the process
◾ The right stakeholders are approving decisions
◾ Projects are aligned with strategic and other priorities and there is a sound
business case on file
◾ Business requirements are identified and agreed upon
◾ A risk assessment is performed
◾ A comprehensive contract or similar binding agreement is in place
 Keys to Success and Reasons IT Projects Fail

1.) Working backwards from a drop-dead completion date

2.) Inexperienced technical lead
3.) Buying off-the-shelf package and over-customizing it
4.) Poor data modelling
5.) Not using a specific methodology
6.) Using an inappropriate software tool
7.) Poor data migration
8.) Poor or insufficient testing
 Keys to Success and Reasons IT Projects Fail

9.) Scope creep

10.) Lack of user involvement
11.) Poorly defined, unclear, or no requirements
12.) Long-time schedules
13.) Stakeholder conflicts
14.) Poor cost and schedule estimation
15.) Communication breakdowns
16.) Poor failure warning signals
 Keys to Success and Reasons IT Projects Fail

17.) Lack of top management commitment

18.) Unrealistic expectations
19.) Inadequate training
20.) Failure to implement a PMO
21.) Employee turnover
Project Selection
- “Why was that particular project selected?”
Reasons why a particular project is selected:
• Strategic Plan
• Vision/Mission
• Market Analysis
• Prioritizing Projects
• Effort-Impact Analysis
Project Selection
• Strategic Plan – Projects outlined in the organization’s
strategic plan that the organization will undertake as it
pursues its medium- and long-term goals.

• Vision/Mission – Projects that could be a critical

component of the organization’s vision and mission.
Project Selection
• Market Analysis – An analysis of market conditions that
could indicate what projects should an organization
embark on in order to meet market demands.

• Prioritizing Projects – The decision could be made after

the organization performs a detailed analysis of the
pros and cons of each project it has deemed of
interest.
Project Metrics
- A performance metric measures the activities and
performance of an organization, program, or process.

Project performance metrics may include safety, time,

cost, resources, scope, quality, and activities.
Project Software

- aid project managers and teams in organizing

and documenting their work.
 Features and Characteristics to consider in
selecting project software:

• Collaborative
• Issue tracking
• Scheduling
• Resource Management
• Document Management
• Platform
 Thanks!
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