PROJECT

MANAGEMENT
Project Life cycle, Context and
Processes

Management

The planning, organizing, staffing, directing and

controlling of a companys resources to meet the
companys objectives

Project Management

is the planning, organizing, directing, and controlling

of resources for a specific time period to meet a
specific set of one-time objectives

Project Management link with other

management areas

Project
Management
General
knowledge
about
management
and
management
skills

Project subject
field
(knowledge and
skills)

CONSTRAINTS
CONSTRAINTS
(finance,
(finance,time,
time,authority,
authority,rights,
rights,
society,
society,environment)
environment)

INPUT
INPUT
Specific
Specificneeds
needs

PROJECT
PROJECT

OUTPUT
OUTPUT
Satisfaction
Satisfactionof
of
needs
needs

RESOURCES
RESOURCES
(people,
(people,machines
machinesand
andmachinery,
machinery,
materials,
materials,technology)
technology)

Project Management system elements

Work inspection
Comparising
Correction
Checking
Supervision and control
Project definition
Strategy selection
Work planning
Planning
CADD
Modelling
Charts / Diagramms
Methods

Leading
Communication

History
Present: Costs,
progression, quality
Information
Values
Certainty
Attitude
Conduct
Ways
Culture

Motivation
Talking

Power
Responsibility
Subordination

Organizing

Team making
Decision making

People
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Benefits of Project Management

Identification of function responsibilities to ensure

that all activities are accounted for, regardless of
personnel turnover
Minimizing the need for continuous reporting
Identification of time limits for scheduling
Identification of a methodology for tradeoff
analysis

Benefits of Project Management

(Continued)

Measurement of accomplishment against plans

Early identification of problems
Improved estimating capabilities for future planning
Knowing when objectives cannot be met or will be
exceeded

10 Reasons Why Projects Fail

Scop
e
Cree
p

Poor P
lannin
g

Ineffe
ctive

Com
muni
catio
n

Ill-Sp
ecifie
d De
livera
ble

High
Turn
ov

er of
P

rojec
t

Team

Poor orship
s
Spon
g
itorin
n
o
M
t
Poor suremen
a
/ Me
l
ontro
C
e
hang
C
r
o
Po
kills
S
t
n
ie
uffic
s
n
I
te /
a
i
r
p
pro
t of lity
Inap
n
e
ignm ountabi
s
s
a
/acc
lear
Unc nsibility
o
re s p

Source: Gartner Group, July

1998 and Accenture analysis

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Project Management Functions

Scoping
Planning
Estimating
Scheduling
Organizing
Directing
Controlling
Closing
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Project Management Concerns

product quality?
risk assessment?
measurement?
cost estimation?
project scheduling?
customer communication?
staffing?
other resources?
project monitoring?

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Interaction of project elements

Problem (need)

Purpose

Tasks and
results

Works

Resources
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Project Management logic

Project results

Goals

Goal setting
Basic criterias
and constraints

Success criterias
Costs

Management
basic levers
Management
additional levers
Risk management

Time

Constraints
Quality

Resources
Contracts

Project goals

Technology

Organization

Interaction

Personnel

Risks analysis

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Management skills and project

Management
Hard Skills

Soft Skills
Work with people

Calendar planning

Budget drawing up
skills

Experts opinions

Technology,
methods,
rules

Risk analysis
methods

Skills,
intuition,
competence

Methodology and
templates

Relation management
(with customers,
stakeholders)

MS Project, Open
Plan, PlanView

Changing
management

Technology
using skils

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Project environment
Project Sponsor

Project manager

Project management team

Project team
Project Stakeholders

project
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Project Stakeholders
Stakeholders are the people involved in or
affected by project activities

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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
Other regulatory bodies
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Project Life Cycle

is a logical sequence of activities to accomplish
the projects goals or objectives.

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Project Life Cycle

Classical Project Phases

1. phase

Initiation

2. phase

3. phase

4. phase

Planning

Execution

Closure

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Project Life Cycle:

Time Distribution of Project Effort

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Project Life Cycle

Project
Initiation

Definition

P h a se
Initiation
De finition
Planning

Imple me ntation
Closure

Planning

Implementation

Closure

P u r po se
Introduce proje ct to attain approval and cre ate proje ct
charte r.
Docume nt proje ct scope , de live rable s, and me thods for
containing scope .
Cre ate plan docume nting the activitie s re quire d to
comple te the proje ct, along with se que nce of activitie s,
re source s assigne d to the activitie s, and re sulting
sche dule and budge ts.
Exe cute and manage the plan, using artifacts cre ate d in
the planning phase .
Formally re vie w the proje ct, including le ssons le arne d and
turnove r of proje ct docume ntation.
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Continuous Improvement

Lessons

Learned
Project

Initiation

Definition

Planning

Implementation

Closure

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Project life cycle

Initiation involves starting up the project,
by documenting a business case,
feasibility study, terms of reference,
appointing the team and setting up a
Project Office.
Planning involves setting out the
roadmap for the project by creating the
following plans: project plan, resource
plan, financial plan, quality plan,
acceptance plan and communications
plan.
Execution involves building the
deliverables and controlling the project
delivery, scope, costs, quality, risks and
issues.
Closure involves winding-down the
project by releasing staff, handing over
deliverables to the customer and
completing a post implementation
review.

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Project Initiation
is the first phase in the Project Life Cycle and essentially involves starting
up the project. You initiate a project by defining its purpose and scope,
the justification for initiating it and the solution to be implemented. You
will also need to recruit a suitably skilled project team, set up a Project
Office and perform an end of Phase Review. The Project Initiation
phase involves the following six key steps:

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Project Planning
After defining the project and appointing the project team,
you're ready to enter the detailed Project Planning
phase. This involves creating a suite of planning
documents to help guide the team throughout the
project delivery. The Planning Phase involves
completing the following 10 key steps:

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Project Execution
With a clear definition of the project and a
suite of detailed project plans, you are
now ready to enter the Execution phase
of the project.
This is the phase in which the
deliverables are physically built and
presented to the customer for
acceptance.
While each deliverable is being
constructed, a suite of management
processes are undertaken to monitor and
control the deliverables being output by
the project.
These processes include managing time,
cost, quality, change, risks, issues,
suppliers, customers and communication.
Once all the deliverables have been
produced and the customer has accepted
the final solution, the project is ready for
closure.
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Project Closure

Project Closure involves releasing the final deliverables to

the customer, handing over project documentation to
the business, terminating supplier contracts, releasing
project resources and communicating project closure to
all stakeholders. The last remaining step is to
undertake a Post Implementation Review to identify the
level of project success and note any lessons learned
for future projects.
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Project Life Cycle

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Project process

Input
Input

Ways
Ways and
and
means
means

Output
Output

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Project Management processes

Initiation

Planning

Monitoring and
controlling

Executing

Closing

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PMI Methodology
Project Management is accomplished through the use of the core
areas including: initiating, planning, executing, controlling, and
closing and represents over 44 processes. Each is interdependent to
the other and iterative in the project life cycle. The PM process
covers all phases within the life cycle of any project. A standard
project will typically have the following phases:
Initiate

Plan

Method/Approach Deliver
Schedule
Manage
Dependences
Resources
Cost
Project Charter

Sponsor
Requirements
Funding
SOW
Contract

Execute

Control

Close

Cost
Schedule
Resources

Cost
Schedule
Resources

It is important to note that many of the processes within project

management are iterative in nature. This is in part due to the
existence of and the necessity for progressive elaboration in a
project throughout the project life cycle

Initiation (I)

[Link]

The initiation processes determine the nature and scope of the

project. If this stage is not performed well, it is unlikely that
the project will be successful in meeting the business
needs. The key project controls needed here are an
understanding of the business environment and making
sure that all necessary controls are incorporated into the
project. Any deficiencies should be reported and a
recommendation should be made to fix them.
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Initiation (II)
The initiation stage should include a plan that
encompasses the following areas:
Analyzing the business needs/requirements in
measurable goals
Reviewing of the current operations
Financial analysis of the costs and benefits
including a budget
Stakeholder analysis, including users, and support
personnel for the project
Project charter including costs, tasks, deliverables,
and schedule

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Planning and design (I)

After the initiation stage, the project is planned to an
appropriate level of detail. The main purpose is to
plan time, cost and resources adequately to
estimate the work needed and to effectively
manage risk during project execution. As with the
Initiation process group, a failure to adequately
plan greatly reduces the project's chances of
successfully accomplishing its goals.

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Planning and design (II)

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Planning and design (III)

Project planning generally consists of:
determining how to plan (e.g. by level of detail or rolling wave);
developing the scope statement;
selecting the planning team;
identifying deliverables and creating the work breakdown structure;
identifying the activities needed to complete those deliverables and networking
the activities in their logical sequence;
estimating the resource requirements for the activities;
estimating time and cost for activities;
developing the schedule;
developing the budget;
risk planning;
gaining formal approval to begin work.
Additional processes, such as planning for communications and for scope
management, identifying roles and responsibilities, determining what to
purchase for the project and holding a kick-off meeting are also generally
advisable.

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Executing (I)
Executing consists of the processes used to
complete the work defined in the project
management plan to accomplish the project's
requirements. Execution process involves
coordinating people and resources, as well as
integrating and performing the activities of the
project in accordance with the project management
plan. The deliverables are produced as outputs
from the processes performed as defined in the
project management plan.
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Executing (II)

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Monitoring and controlling (I)

Monitoring and controlling consists of those
processes performed to observe project execution
so that potential problems can be identified in a
timely manner and corrective action can be taken,
when necessary, to control the execution of the
project. The key benefit is that project performance
is observed and measured regularly to identify
variances from the project management plan.

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Monitoring and controlling (II)

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Monitoring and controlling includes:

Measuring the ongoing project activities (where we
are);
Monitoring the project variables (cost, effort, scope,
etc.) against the project management plan and the
project performance baseline (where we should
be);
Identify corrective actions to address issues and
risks properly (How can we get on track again);
Influencing the factors that could circumvent
integrated change control so only approved
changes are implemented
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Monitoring and controlling cycle

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Closing

Closing includes the formal acceptance of the project and the ending
thereof. Administrative activities include the archiving of the files and
documenting lessons learned.
This phase consists of:
Project close: Finalize all activities across all of the process groups
to formally close the project or a project phase
Contract closure: Complete and settle each contract (including the
resolution of any open items) and close each contract applicable to
the project or project phase
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Dynamic of a Project
Organization
Budget Limits

Organization
Commitment

Quality Assurance

C
M onf
an igu
ag ra
em tio
en n
t

Budget Cycle

External Politics

Stakeho
lder
Manage
ment

Manage a Project

Initiate

Plan

Execute

Stages
Expectation
Setting

C
M om
an m
ag un
em i c a
e n ti on
t

Ris
k
Ma /Issue
nag
em
ent

Resource
Management

Control

Close

ge t
ed men
l
ow ge
Kn ana
M

Subc
o
Man ntractor
agem
ent

n ge
Cha gement
a
M an

Internal Politics

Obtaining the
Right Skill Sets

Capturing
Information

Solution
Functionality

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Knowledge areas and project management

processes
Integration
Management
Procurement
Management

Scope
Management
Initiation

Planning

Risk
Management

Time
Management
Monitoring
and
controlling

Communication
Management

Execution

Closing

HR Management

Cost
Management

Quality
Management
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Project Management Knowledge Areas

Scope
Management

Time
Management

Cost
Management

Quality
Management

HR
Management

Communications

Risk
Management

Procurement
Management

Management

Integration
Management

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Knowledge Areas and Key Terms

A project manager juggles 9 + balls (knowledge
areas KA) and many tools and techniques

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Scope Management
Initiate the project

Feasibility, market, customer or business need

Environmental analysis, business case
Project selection practices and management decision
practices
Project link to the firms strategy or corporate goals

52

Scope Management
Initiate the project

Identify the project manager

Develop a charter
Formally recognize the existence of the project
Include the business need and product description,
constraints and assumptions
Approval to proceed

Funding, authority, sponsor

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Charter links
[Link]
[Link]
erGuide [Link]
[Link]
[Link]

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Charter links
[Link]
[Link]
[Link]
[Link]

55

Scope Management
Plan and define the scope in detail

Conduct a cost/benefit analysis, consider alternatives,

get expert opinion and review historical databases,
brainstorm

What is in scope? What is out of scope? What are the

criteria for completing phases?

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Scope Management
Plan and define the scope in detail

Develop a work breakdown structure (WBS)

Create a scope statement with assumptions and

constraints
Project justification, product description, deliverables,
success criteria, scope management plan
Use for future project decisions

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Scope Management
Verify the scope

What is the process and criteria for accepting the scope

of work delivered?
Work results and documents
Inspection
Acceptance form

Control the scope

Performance reports, change requests, issues

management form, scope management plan, corrective
action, lessons learned

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Scope Tips
Be inclusive involve stakeholders

Work on securing and maintaining their commitment to

the project

Commitment: funding, approvals

Spend more time planning the projectthen follow

it (with updates of course)

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Scope Tips
Define project success and communicate it
Steering committee with authority and decision
making power

Supportive and decisive sponsor

60

Time Management
Purpose: Create a realistic schedule with the team
Identify the activities (tasks)

Activities are action steps (HOW) and different from

deliverables that are tangible results (WHAT)
Use the WBS and scope statement
Develop activity lists and revise the WBS

Sequence activities

Consider dependencies

61

Time Management
Estimate durations (time)

Top down, bottom up estimates, Monte Carlo

simulations
Estimating formulae (PERT estimates)
Expert opinion
Consider resource capabilities
Look at similar projects

Develop the schedule (Gantt chart)

Document assumptions and decisions

Use project management scheduling software e.g. MS
Project
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Estimating formulae

PERT Estimate (weighted average)

[Pessimistic + (4 x Likely) + Optimistic]/6

Pessimistic time to get to work = 30 min

Optimistic time to get to work = 10 min

Likely time to get to work = 15 minutes

PERT Estimate = 30 + (4x15) + 10/6

100/6=16.6 = 17 min
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MS Project HELP
Http://[Link]/welcome/pr
[Link]
Http://[Link]/directory/
Http://[Link]
Http://[Link]

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Planning & Scheduling Software

[Link]
uling_tools/
[Link]
[Link]
[Link]

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Time Management
Control the schedule

Performance reports, change requests, time

management plan, corrective action, lessons learned
E.g. baseline Gantt chart and then update

Frequency

Roles and responsibilities

Control techniques e.g. meetings, 1:1

66

Cost Management
Plan resources (people, equipment, materials)

Consider WBS, scope statement, organizational

policies, staff pool

Identify resource requirements

Cost centers at Your company?

Time is money

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Cost Management
Cost budgeting

Resource leveling
Cost baseline

Control costs

Performance reports, change requests, cost

management plan, corrective action, lessons learned
e.g. budgeted, actual, variance (with explanation)

68

Time and Cost Tips

Its OK to ask. Talk to subject matter experts
Avoid single point estimates, use validated range
estimates
Factor in the learning curve, resource productivity,
experience level etc.

69

Time and Cost Tips

Use the appropriate tools, techniques, rules of
thumb
Document assumptions for estimates
Negotiate

70

Quality Management
Plan for quality

Quality product and quality project management

practices
Quality standards
Conform to specifications (project produces what it said it
would)
Fitness for use (satisfy needs)
Prevention vs. inspection
Plan, do, check, act
Benchmark, checklists, flow charts, cause/effect diagrams

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Quality Management
Quality management plan

Organizational structure, processes, resources,

procedures, responsibilities to ensure quality plan is
implemented
Quality metrics
Checklists

Quality Assurance

Follow the quality management plan, audits,

improvements

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Quality Management
Quality control

Process and product results

Control charts, Pareto diagrams, trend analysis

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Quality Tips
Start with a clear view of quality in mind
What is quality?
Implications for ALL knowledge areas

74

Human Resources Management

Organizational plan

Organizational chart, roles and responsibilities

Linkages between project and functional areas, and
other business units.
Staffing needs
Unions, human resources department/practices,
constraints
RACI+
Staffing plan (training, orientation, job descriptions,
performance evaluations, redeployment), project
organizational chart

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RACI Chart

Task

Responsible Accountable Coordinate Inform

party
to
with

1
2

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Human Resources Management

Get staff

Assess experience, interests, personal characteristics,

availability
Negotiate
Beg and borrow but dont steal

Develop the team

Team building, reward and recognition program,

support practices

Dont control people

Managerial control is different from micromanaging

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Human Resources Management Tips

Listen to understand
Be responsive

Provide positive feedback

Act on problems in a timely manner

Deal with problems

They wont go away, but will get BIGGER

Provide constructive criticism

Document appropriately
Take time to have FUN
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Communications Management
Develop the project communication plan

Stakeholder analysis

Information to be shared (to who, what, how, when,

why)

Technology

Distribute information

Project databases, filing system, software / hardware

Report up, down and across the firm

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Communications Management
Report performance

Project plan, work results

Project performance reports
Variance reports, trend analysis, change requests

Report the Good, Bad & Ugly

Administrative closure

Knowledge management
Archives
Acceptance forms
Lessons learned

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Sample communication formats

Status reports

Posters

Team meetings

Coffee room chats

Project files

Milestone celebrations

PR initiatives
Newsletters
E-mail
Databases
Website
RACI

Kickoff meeting
Close out meeting
Lessons learned
sessions
Paraphrase & Validate
Drawings
Schedule update
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Communications Management Tips

If you think you have communicated enoughgo
back and do it again
Use different formats
Frequently use modes of communication that allow
you to see the whites of their eyes

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Risk Management
Identify risks

What could go wrong (harm, loss, opportunities and

threats)

Consider ALL knowledge areas

Internal and external risks
Sources of risk: product technology, people
(misunderstandings, skills), project management etc.

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Risk Management
Quantify risks

Risk interactions, risk tolerance

High, Medium, Low (HML) - qualitative

Expected Monetary Value (EMV) - quantitative

84

Risk Quantification Technique: High,

Medium, Low (HML)

Probability of occurrence and impact

High, Medium, Low grid
Focus on HHs and less on LLs
Keep it simple

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Risk Quantification Technique:

Expected Monetary Value (EMV)

EMV=risk event probability X risk event value

25% chance of rain X $1,000 impact of damage to
convertible car interior = EMV of $250
75% chance of rain X $1,000 impact of damage to
convertible car interior = EMV of $750

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Risk Management
Develop risk response plan

Opportunities and threats to respond to and

opportunities and threats to accept
Avoid eliminate cause
Mitigate reduce risk occurrence
Accept contingency plans, accept losses

Its OK to do any of these

Insurance, contingency plans, procurement, alternative

strategies, contracts

Risk management template

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Risk Management
Control risk responses

Workarounds (defined as when it hits the fan

unexpectedly and you need to deal with it then and
there)

Ongoing process of risk management

Corrective action
Update risk management plan

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Risk Management Tips

Start Risk Management at the beginning of the
project
Review risks throughout the project (e.g. weekly,
monthly)
Update and project schedules, budget, staffing etc.
as risk management plans are changed

89

Procurement Management
Plan procurement needs (goods and services
external to the firm that you need to deliver the
product)

Make or buy decisions

Contract type options (risk sharing)

Solicitation

Procurement management plan

Vendor selection process and criteria

Proposals, contracts, legal issues

90

Procurement Management
Select and manage sources (vendors, partners)

Negotiations

Manage contracts

Close contracts

Formal acceptance and closure

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Procurement Tips
Develop charters with vendors and partners

Rules of the game, conflict management guidelines,

escalation process

Take lead times into account

Do risk management on procurement (and all other
knowledge areas)

92

Integration Management
Pulling all the knowledge areas together
As you go through the various project phases,
consider the links between knowledge areas

Plan the plan

Execute the plan

Project deliverables and project management outputs

Control the plan

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