Chapter-1

What is a Project?
What is a Project?
A project is a:
sequence of unique,
complex and connected activities
having one goal or purpose
that must be completed
by a specific time
wthin budget and
according to specification.
PM Bok Says:
A project is a
temporary endeavor
undertaken to
create a unique
product, service or
result.
A Project can Create
A product that can be either a component
of another item or an end item in itself.
A capability to perform a service(e.g., a
business function that supports
production or distribution).
A result such as an outcome or a
document (e.g., a research project that
develops knowledge that can be used to
determine whether a trend is present or a
new process will benefit society).

Give examples:
Examples of Projects
• Developing a new product or service (Why)
• Effecting a change in the structure, staffing
or style of an organization
• Developing or acquiring a new modified
information system (DAR satellites etc)
• Constructing a building or infrastructure
(Motorway)
• Implementing a new business process or
procedure (Cut down cost / material / HR)
• Give examples of Projects in Pakistan / World
Thinking Process
What should be done
before launching a
project?
A „Typical“ Project Life-Cycle
Dollars of Manhours (level of Effort)

Phase 1: Conceptual Phase 2: Planning Phase 3: Execution Phase 4: Termination

• Identify Need • Identify Schedule • Procure Materials • Train functional

• Conduct Studies • Build/ test tooling personnel
• Establish
and • Develop support • Transfer
Feasibility
• Identify analyses requirements materials
• Design System • Procure System • Transfer
Alternatives
• Build/test • Verify responsibility
• Prepare Proposal
• Develop Basic prototypes Performance • Release resources
• Analyze results • Modify as • Reassign project
Budget and
• Obtain approval required team members
Schedule
• Identify Project for
David I. Cleland / Lewis R. Ireland, Project Management: Design and Strategic
production
Team
Implementation, 4th ed., p. 50.
8
The Project Boundaries
What is Project Management?
• It is the application of:
– Knowledge
– Skills
– Tools
– Techniques
– To do project activities to meet project requirements
– It is accomplished through appropriate application and
integration of 47 logically grouped project
management processes comprising the 5 process
groups.
– What are those FIVE Process
Groups?
– What are those 10 Knowledge
Areas in Projects?
 Mapping the Processes
Process Group
Initiating Planning Executing Controlling Closing
P.G. P.G. P.G. P.G. P.G.
Knowledge Area
4. Project 4.1 Develop 4.2 Develop Project 4.3 Direct & 4.5 Monitor & 4.7
Integration Project Management Plan Manage Control Project Close
Management Charter Project Work Project
Work 4.6 Perform or
4.4 Manage Integrated Change Phase
Project Control
Knowledge
5. Project Scope 5.1 Plan Scope 5.5 Validate Scope
Management Management 5.6 Control Scope
5.2 Collect
Requirements
5.3 Define Scope
5.4 Create WBS
6. Project 6.1 Plan Schedule 6.6 Control
Schedule Management Schedule
Management 6.2 Define Activities
6.3 Sequence Activities
6.4 Estimate Activity
Duration
6.5 Develop Schedule

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 Mapping the Processes (cont.)
Closi
Initiating Planning Executing Controlling
ng
P.G. P.G. P.G. P.G.
P.G.
7. Project Cost 7.1 Plan Cost 7.4 Control Costs
Management Management
7.2 Estimate Costs
7.3 Determine Budget
8. Project Quality 8.1 Plan Quality 8.2 Manage Quality 8.3 Control
Management Management Quality
9. Project Human 9.1 Plan Resource 9.2 Estimate Activity Resources 9.6 Control
Resource Management 9.3 Acquire Resources Resources
Management 9.4 Develop Team
9.5 Manage Team
10. Project 10.1 Plan 10.2 Manage Communications 10.3 Monitor
Communications Communications Communication
Management
Management
11. Project Risk 11.1 Plan Risk 11.6 Implement Risk 11.7 Monitor
Management Management Responses Risks
11.2 Identify Risk
11.3 Perform
Qualitative Risk
Analysis
11.4 Perform
Quantitative Risk
Analysis
11.5 Plan Risk
Responses
12
 Mapping the Processes (cont.)
Process
Initiating Planning Executing Controlling Closing
PM Group
P.G. P.G. P.G. P.G. P.G.
Knowledge Area
12. Project 12.1 Plan 12.2 Conduct 12.3 Control
Procurement Procurement Procurements Procurement
Management Management
13. Project 13.1 Identify 13.2 Plan 13.3 Manage 13.4 Monitor
Stakeholder Stakeholder Stakeholder Stakeholder Stakeholder
Management s Engagement Engagement Engagement

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Contribution from Waqas Qazi (MPM-2011A)
Why Projects?
To meet strategic business goals and
objectives:
Strategic opportunity
Business needs
Customer request
Technological advance
Legal requirements
Relationship Between
Project Management

Program Management

Portfolio Management
Program Management
Program Management is defined as a group of
related projects managed in a coordinated
way to obtain benefits and control not
available from managing them individually.
Programs may include elements of related
work outside the scope of the discrete
projects in the program
A program will always have projects.
Example of a
Program Management
A new communication satellite system:
Designing of a satellite and ground system
Construction of a satellite and ground station
Integration of the system
Launching of the satellite
What is Portfolio
Management?
A portfolio is a collection of projects or
programs and other work that are
grouped together to facilitate effective
management of that work to meet
strategic business objectives.
The projects or programs in the portfolio
may not necessarily be interdependent or
directly related.
Examples of Portfolio Management
An infrastructure firm that has the strategic
objective of maximizing the return on its
investments may have a portfolio of:
Projects in oil & gas
Projects in power
Projects in water
Projects in roads
Projects in rail
Projects in airports
Functions of (PMO)
1. Managing shared resources
2. Identifying & developing project
management methodology, best practices
and standards
3. Coaching, monitoring, training and
oversight
4. Monitoring compliance project audits
5. Developing & managing project policies,
procedures, templates and other standard
documentation?
6. Coordinating communication across
projects
Project Manager
Focuses on a specific project objective
Controls resources to best meet project
objectives
Manages the constraints (scope, schedule,
cost, risk, human resources and quality etc)
of individual project
Main Functions of a Project Manager
Identify stakeholders & Leadership
(decision makers: Client, Parent
organization, Project Team, Publics)
Define scope of project
Evaluate project requirements
Develop detailed task list (work
breakdown, structures)
Develop initial project management
flow chart
Estimate time requirements
Identify cost estimation and budget
Identify required resources and
evaluate risks
Main Functions of a Project Manager
 Prepare contingency plan
 Identify interdependencies
 Identify and track critical milestones
 Secure needed resources, manpower
 Participate in project phase review
 Manage the change control process
 Report project status
Project Management Vs
Operation Management
How they are different?
When do they interact?
Project VS Operations
PROJECTS OPERATIONS
Projects require Project Management Operations require Business
Process Management or Operations
Management
Temporary Undertakings Permanent Endeavors
Temporary Assignments Ongoing nature of Operations
Produce Unique Outputs Produce Repetitive Outputs
Temporary Resourcing Permanent Resource Assignments
Execute according to Project Management Plan Execute as per standards
(SOPs)
developed for project life cycle institutionalized in
product life cycle. Obtain objectives and then terminate Sustain
the business
Concludes when its specific objectives have been Adopt a new set of
adjectives and the
attained work continues
Project Vs Production Interaction
Projects can intersect with operations at
various points during the product life
cycle:
At each closeout phase
When developing a new product,
upgrading a product, or expanding
outputs
Improvement of operations or the
product development process
Enterprise Environmental Factors
Organizational culture, structure &
processes
Government or industry standards
Infrastructure: Existing facilities and capital
equipment
Existing human resource
Marketplace conditions
Stakeholder risk tolerance
Potential climate
Political climate
Established communication channels
Commercial databases: cost, risk study / info
Project management information systems (blog)
Organizational Process Assets
What is SWOT?