Project Management Concepts

 What is project?
o A Project is a temporary endeavour undertaken to create a unique product,
service or result.

o Unique Product. That can be either a component of another item, an

enhancement or correction of an item, or a brand new item itself.

o Unique Service or a capability to perform a service. Example. A business

function that supports production or distribution.

o A unique result. Such as an outcome or document. Example, a research project

that develops knowledge that can be used to determine whether a trend exists
or a new process will benefit society.

o A unique combination of one or more product, services or result. Example,

software application, its associated documentation.

 Characteristics of a project
o A project has definable goal or purpose or well defined end items, deliverables
or results, usually defined in terms of schedule, costs and performance
requirements.

o Every project is unique. It requires something than was done previously.

o Projects are temporary activities. They are ad hoc organizations of personnel,

material and facilities organized to accomplish a goal within a scheduled time.
One the goal is achieved….

o Projects cut across the organization and functional lines.

o Given that the project is unique, it involves unfamiliarity and risks.

o Organization doing a project has something at stake.

o A project passes thro distinct phases and it has a life cycle.

 Examples
o Developing a pharmaceutical compound for market

o Expanding a tour guide service

o Merging two organizations

o Improving business process within an organization

 o Acquiring and installing a new computer hardware system for use in an
organization.

o Exploring for oil in a region

o Modifying a computer program used in an organization

 Temporary Endeavour
A project has a definite beginning and end. Temporary does not mean a short
duration. End of project means one or more of following:

o The project objectives are achieved

o The objectives will not be or can not be achieved
o Funding is exhausted or no longer available for allocation to the project.
o The need for project no longer exists (customer does not want, change in
strategy, etc.)
o The human or physical resources no longer available.
o The project is terminated for legal cause or convenience.
o Constructing a building
o Conducting research to develop a new manufacturing process.

 Project drives changes

From a business perspective, a project is aimed at moving an organization from one
state to another in order to achieve specific objectives.

 Project enable Business value creation-

Business value – net quantifiable benefit derived from business endeavour
The benefit may be tangible, intangible or both.
Business value is considered the return, in the form of elements such as time, money,
goods etc.

o Tangible elements.
Monetary assets
Stockholder equity
Utility
Fixtures
Tools
Market share

o Intangible Elements
Goodwill
Brand Recognition
Public Benefits
 Trademarks
Strategic Alignments
Reputation

 Project Initiation Context

Organizational Leaders initiate projects in response to factors acting upon their
organization. Categories Meet regulatory, legal and social requirements Satisfy
stakeholder requests and need Implement or change business or technological
strategies
Create, improve or fix products, processes or services

 Project management
Project Management is application of knowledge, skills, tools and techniques to
project activities to meet the project requirements. Project management is
accomplished through appropriate application and integration of the project
management processes identified for the project. Project Management enables
organizations to execute projects effectively. Effective project management helps
individuals, groups and organizations to:
o Meet business objectives
o Satisfy stakeholder expectations
o Be more predictable
o Increase chances of success
o Deliver right product at right time
o Resolve problems and issues
o Respond to risks in timely manner
o Optimize use of organizational resources
o Identify, recover and terminate failing projects
 o Manage constraints
o Balance the influence of constraints on project
o Manage change in a better way

 Where Project Management is Appropriate

o Unfamiliarity
o Magnitude of the effort
o Changing Environment
o Interrelatedness
o Reputation of Organization

 Project Management
Poorly managed projects or absence of project management may result in
o Missed deadlines
o Cost overruns
o Poor Quality
o Rework
o Uncontrolled expansion of the project
o Loss of reputation to the organization
o Unsatisfied stakeholders
o Failure in achieving the objectives for which the project was undertaken
Effective and efficient Project Management should enable:
o Tie project results to business goals
o Compete more effectively in their markets
o Sustain the organization
o Respond to the impact of business environment changes on projects by
appropriately adjusting project management plans

 Project, Program, Portfolio and Operations Management

 Evaluation of Project Management
o Project Expeditors
o Project Coordinators
o Matrix Managers
o Pure Project Managers

 Project, Program, Portfolio and Operations Management

o 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 controls not available by managing program components
individually.

o A program refers to projects and other programs within a program.

o Project Management focuses on interdependencies within a project to

determine optimal approach for managing project.

o Program Management focuses on interdependencies between the projects

and between projects and program level to determine optimal approach for
managing them.

 Project Management
Actions related to these program and project related interdependencies:
o Aligning with the organizational or strategic direction that effect the program
and project goals and objectives.
o Allocating the program scope into program components
 o Managing interdependencies among the components of the program to best
serve the program.
o Manging program risks, that may impact multiple projects in the program.
o Resolving constraints and conflicts that affect multiple projects within
program
o Managing change requests within a shared governance framework
o Allocating budget across multiple projects within the program
o Assuring benefits realization from the program and component projects.
A Portfolio is defined as projects, programs, subsidiary portfolios and operations
managed as 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 :
o Guide organizational investment decision
o Select the optimal mix of programs and projects to meet strategic objectives
o Provide decision making transparency
o Prioritize team and physical resource allocation
o Increase the likelihood of realizing ROI.
o Centralize the risk management for all programs and projects.
 Operations Management
Operations Management is outside the scope of formal Project Management.
Operations Management is concerned with the ongoing production of goods and
services. It ensures that business operations continue efficiently by using the optimal
resources needed to meet customer demands. Concerned with managing processes
that transform inputs into outputs. Changes in business or organizational operations
may be the focus of a project. Project can intersect with operations at various points of
a product life cycle such as:

o When developing a new product, upgrading a product or expanding outputs.

o While improving operations or the product development process
o At the end of product life cycle

 Project, Program, Portfolio and Operations Management

 Project Lifecycle
A project life cycle is the series of phases that a project passes thro from its start to its
completion. It provides basic framework for managing the project. Applies regardless
of the specific project work involved.

 Project life cycle, project Phase, Phase Gate, Project Management Process,
Project Management Process Group, Project Management Knowledge Area