1

Project Management Concepts

© 2012 Cengage Learning. All Rights Reserved. This edition is intended for use outside of the U.S. only, with content that may be
different from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in
part.
Chapter Concepts

Definition of a project and its attributes

Key constraints within which a project must be
managed
Life cycle of a project
Definition of project management
Elements of the project management process
Implications of global project management
Project Management Institute
Benefits of project management
Learning Outcomes
Define what a project is Define and apply project
List and discuss the management
attributes of a project Discuss the steps of the
Explain what is meant by planning process
project objective Identify the three elements
Define what is meant by of the executing process
project deliverable Discuss some implications
Provide examples of of global project
projects management
Discuss project constraints Discuss the Project
Management Institute
Describe the phases of the
project life cycle List benefits of project
management techniques

© 2012 Cengage Learning. All Rights Reserved. This edition is intended for use outside of the U.S. only, with content that may be
different from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in
part.
Project Management Knowledge Areas from PMBOK® Guide

Project Integration Management

© 2012 Cengage Learning. All Rights Reserved. This edition is intended for use outside of the U.S. only, with content that may be
different from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in
part.
Project Attributes

Clear objective
Series of interdependent tasks
Various resources
Specific time frame
Unique, one-time endeavor
Sponsor or customer
Degree of uncertainty
CLEAR OBJECTIVE

A clear objective that establishes what is to be

accomplished.
 It is the tangible product that the project team must
produce and deliver.
PROJECT OBJECTIVE
 Defined as:
 In terms of end product or deliverable, schedule, and budget.
 It requires completing the project work scope and producing all
the deliverables by a certain time and within budget.
 For example: the objective of a project might be to introduce a
new portable food preparation appliance in 10 months and within
a budget of $2 million.
CLEAR OBJECTIVE

Include statement of the expected benefits or

outcomes that will be achieved from implementing
the project.
 For example: a project with the objective to develop a new
product may have an expected outcome to sell a certain
number of units of that new product within a year..
 Or project objective is to increase the market share by a
specific percent
Independent tasks

A number of non-repetitive tasks

Utilizes various resources

Such resources can include different people,

organizations, materials, and facilities
 For example: a project to perform a complex series of
surgical operations may involve doctors with special
expertise, nurses, surgical instruments, equipments and
special operating facilities.
Specific time frame

It has a start time and a date by which the objective

must be accomplished.
 For example summer school might have to be completed
between July 21 and September 12.
Unique or one time endeavor

Some projects, like designing and building a space

station, are unique because they have never been
attempted before.
Such as developing a new product, building a house,
or planning a wedding are unique because of the
customization they require
Sponsor or customer

The sponsor or customer is the entity that provides

the funds necessary to accomplish the project.
 It can be a person, an organization, or a partnership of
two or more people or organizations.
 For example: when a contractor builds an addition to a
house , the homeowner is the customer who is funding
and paying for the project.
Degree of uncertainty

Before a project is started, a plan is prepared based

on certain assumptions and estimates.
 It is important to document these assumptions because
they will influence the development of the project work
scope, schedule, and budget.
 For example: the project scope may be accomplished by the target
completion date, but the final cost may be much higher than
anticipated because of low initial estimates for the cost of certain
resources.
Balancing Project Constraints

© 2012 Cengage Learning. All Rights Reserved. This edition is intended for use outside of the U.S. only, with content that may be
different from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in
part.
Scope

A project t to install new high speed specialized

automation equipment in a factory might include :
 designing the equipment, building it, installing it, testing it
to make sure it meets acceptance criteria, training workers
to operate and maintain the equipment and providing all
the technical and operating documentation for the
equipment.
Quality

For example
 In a house building project, the customers expects the
workmanship to be of the highest quality and all materials
to meet specifications. Completing the work scope but
leaving windows that are difficult to open and close or a
landscape with a full of rocks will result in an unsatisfied
customer .
Schedule

It’s a timetable that specifies when each task or

activity should start and finish.
Budget

Is the amount the sponsor or customer has agreed to

pay for acceptable project deliverables.
 It might include the salaries of people who will work on
the project, materials and supplies, equipment, rental of
facilities, and the fees of subcontractors or consultants
who will perform some of the project tasks.
 For example: for a wedding project, the budget might
include estimated costs for flowers, cake, limousine rental,
videographer, reception facility, and so on.
Resources

Include people, materials, equipment, facilities, and

so on.
Risk

Could be a risk that will affect to accomplish the

project objective.
 For example designing an new information system using
the newest technology may pose a risk that the new
technology may not work as expected.
Customer Satisfaction

The responsibility of the project manager is to make

sure the customer is satisfied.
 By maintaining regular communication with the customer
or sponsor, the project manager demonstrates genuine
concern about the customer’s expectations, it also
prevents unpleasant surprises later.
Project Manager Actions

Prevent, anticipate, overcome

Have good planning and communication
Be responsible
The Project Life Cycle

© 2012 Cengage Learning. All Rights Reserved. This edition is intended for use outside of the U.S. only, with content that may be
different from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in
part.
Initiating Phase

First phase
Identify need, problem, or
opportunity
Determine if select project
Develop project charter
 Rationale
 Project objective
 Expected benefits
 General requirements and
conditions
Decide if RFP needed
© 2012 Cengage Learning. All Rights Reserved. This edition is intended for use outside of the U.S. only, with content that may be
different from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in
part.
Planning Phase
Second Phase
Show how project scope will be
accomplished
Plan the work and work the plan
Develop baseline plan
 What needs to be done -- scope,
deliverable
 How it will get done -- activities,
sequence
 Who will do it -- resources,
responsibilities
 How long it will take -- durations,
schedule
 How much it will cost -- budget
 What the risks are

Have actual resources plan the work

© 2012 Cengage Learning. All Rights Reserved. This edition is intended for use outside of the U.S. only, with content that may be
different from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in
part.
Performing Phase
Third phase
Accomplish project objectives
 Project manager leads
 Project team completes the
project
Increase pace as more resources
are added
Monitor and control progress
Take corrective action as needed
Manage and control changes with
sponsor approval
Achieve customer satisfaction
with acceptance of deliverable
© 2012 Cengage Learning. All Rights Reserved. This edition is intended for use outside of the U.S. only, with content that may be
different from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in
part.
Closing Phase

Final phase
Collect and make final
payments
Recognize and evaluate staff
Conduct post project
evaluation
Document lessons learned
Archive project documents
Record lessons learned

© 2012 Cengage Learning. All Rights Reserved. This edition is intended for use outside of the U.S. only, with content that may be
different from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in
part.
Project Planning Process
Establish project objective
Define scope
Create WBS
Assign responsibility
Define specific activities
Sequence activities
Estimate activity resources
Estimate activity durations
Develop project schedule
Estimate activity costs
Determine budget
© 2012 Cengage Learning. All Rights Reserved. This edition is intended for use outside of the U.S. only, with content that may be
different from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in
part.
Create WBS and Assign Responsibility

© 2012 Cengage Learning. All Rights Reserved. This edition is intended for use outside of the U.S. only, with content that may be
different from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in
part.
Sequence Activities

© 2012 Cengage Learning. All Rights Reserved. This edition is intended for use outside of the U.S. only, with content that may be
different from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in
part.
Develop the Project Schedule

© 2012 Cengage Learning. All Rights Reserved. This edition is intended for use outside of the U.S. only, with content that may be
different from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in
part.
Determine Budget

© 2012 Cengage Learning. All Rights Reserved. This edition is intended for use outside of the U.S. only, with content that may be
different from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in
part.
Execute the Project Plan

Perform the work

Monitor and control
progress
Control changes

© 2012 Cengage Learning. All Rights Reserved. This edition is intended for use outside of the U.S. only, with content that may be
different from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in
part.
Global Project Management

Globalization Helpful Competencies

Adds a dimension of Foreign language skills
complexity Knowledge of
 Cultures
Changes project dynamics  Geography
Requires awareness of factors  World history and
 Cultural differences contemporary events
 International economics
 Currency
Awareness of
 Codes and regulations  Customs and etiquette
 Business organization  Geopolitical environment
 Political relations Technology adoption and
 Workforce availability
translation software

© 2012 Cengage Learning. All Rights Reserved. This edition is intended for use outside of the U.S. only, with content that may be
different from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in
part.
Project Management Associations

Project Management Institute Global Associations

Worldwide not-for-profit Links available at
association of practitioners
 350,000 members in >170 www.cengagebrain.com
countries
 250 chapters in >70 countries
Online communities for
collaboration
PMBOK® Guide
PMI Code of Ethics and
Professional Conduct
Certifications
www.pmi.org

© 2012 Cengage Learning. All Rights Reserved. This edition is intended for use outside of the U.S. only, with content that may be
different from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in
part.
Critical Success Factors
Planning and communication are critical to successful project management. They prevent problems from
occurring or minimize their impact on the achievement of the project objective when they do occur.
Taking the time to develop a well thought-out plan before the start of the project is critical to the
successful accomplishment of any project.
A project must have a clear objective of what is to be accomplished and defined in terms of end product
or deliverable, schedule, and budget; and is agreed upon by the customer.
Involve the sponsor or customer as a partner in the successful outcome of the project through active
participation during the project.
Achieving customer satisfaction requires ongoing communication with the customer to keep the
customer informed and to determine whether expectations have changed.
The key to effective project control is measuring actual progress and comparing it to planned progress on
a timely and regular basis and taking any needed corrective action immediately.
After the conclusion of a project, the project performance should be evaluated to learn what could be
improved if a similar project were to be undertaken in the future. Feedback should be obtained from the
sponsor or customer and the project team.
Learning and understanding the culture and customs of other project participants will demonstrate
respect, help build trust, and aid in developing an effective project team; and it is critical for successful
global project management.
Summary
A project is an endeavor to accomplish a specific objective through a unique set of interrelated
tasks and the effective utilization of resources.
The successful accomplishment of the project objective could be constrained by many factors,
including scope, quality, schedule, budget, resources, risks, and customer satisfaction.
The project life cycle has four phases: initiating, planning, performing, and closing the project.
Project management is planning, organizing, coordinating, leading, and controlling resources to
accomplish the project objective. The project management process involves two major functions:
first establishing a plan and then executing that plan to accomplish the project objective.
Globalization changes the dynamics of a project and adds a layer of complexity that can adversely
affect the project outcome if the project participants are not aware of what they can encounter
regarding cultural differences and multinational economic transactions.
The Project Management Institute is a premier worldwide not-for-profit association for
practitioners in the project management profession.
The ultimate benefit of implementing project management techniques is having a satisfied
customer—whether you are the customer of your own project or a business (contractor) being paid
by a customer to perform a project.