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Principles of Project Management

Hisham Rafik, MBA, PMPPresented By:


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Principles of Project Management 2 Knowledge 2008

Course Outline

1. Project Management Framework

2. Project Initiation

3. Project Planning - Scope Definition

4. Project Planning - Schedule Development5. Project Planning - Risk Management

6. Project Planning - Budgeting


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Section Two

Project Initiation


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Project Initiation The process of formally authorizing a new project

Project initiation is covered in the project integrationmanagement

Projects are authorized as a result of: Market demand A business need A Customer request A Technological advance A Legal requirement A Social need

Project Initiation output Project Charter Preliminary scope statement

Project Initiation


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Project Charter The project charter is the document that formally

authorizes a project It provides the project manager the authority to spend

money and commit corporate resources to the project.

Authorized by a sponsor not the PM:

The projects are usually chartered and authorized external

to the project organization by an enterprise, a governmentagency, a company, or an internal organization.

Broad enough so it does not change as the project

changes


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Project Charter contentsProject Charter addresses the following information:

Requirements that satisfy stakeholder needs, wants, and

expectation.

Project purpose and justification.

Business need, high level product description, or product

requirements that the project is undertaken to address.

Assigned project manager and authority level.

Summary milestone schedule what is expected to be done and

when


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Project Charter contents (contd)Project Charter addresses the following information:

Functional organizations and their participation.

Organizational, environmental & external assumptions and

constraints. Business case justifying the project, including return on

investment why are we doing the project

Summary budget.


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Project Integration Management The main role of the project manager is:

To perform integration To put all thepieces of the project together into onecohesive whole that gets the project done

faster, cheaper, and with fewer resourceswhile meeting the project objectives

Successfully meeting customer and other

stakeholders requirements, and managingtheir expectations


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What do Iwant?Sponsor or

customer asks ProjectStatement

of Work

Companyculture and

existingsystems

Processes,procedures,

and historicalinformation

Project manager

assists thesponsor with thecharter ifnecessary

Sponsorissues the

charter

Project managerdevelops thepreliminary

project scopestatement and the

projectmanagement plan

The Projectmanagement plan

is bought into,approved,

realistic, andformal (BARF)


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Project Integration Management

4.1 Develop Project Charter

Inputs1. Contract (when applicable)

2. Project statement of work

3. Enterprise environmental

factors

4. Organizational processassets

Tools & Techniques1. Project selection methods2. Project Management methodology

3. Project Management Information

System (PMIS)4. Expert judgment

Outputs1. Project charter


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Develop Project Charter - Inputs Contract

Is applicable if the project is being done for an externalcustomer

Project Statement of Work (SOW)

Is a narrative description of products or services to be

supplied by the project

Created by the customer in case of external projects (e.g.Request for Proposal) or the sponsor

SOW indicates: business needs, products scope description,

strategic plan


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Develop Project Charter - Inputs Enterprise Environmental Factors

Are the company culture and existing systems that the projectwill have to deal with or can make use of

Include:

Organizational culture and structure

Infrastructure (existing facilities and capital equipment)

Existing human resources

Personnel administration

Project management information systems (all the software

available in the company that can be used to help manage aproject)


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Develop Project Charter - Inputs Organizational Process Assets

Organizations processes and procedures for conducting work:

Organizations standards, policies, procedures, and quality policies and

procedures

Templates

Project closure guidelines

Corporate knowledge base for storing and retrieving information

Historical information of past projects (activities, benchmarks, risks,

reports, estimates, resources needed), and lessons learned

Financial database (labor hours, incurred costs, budgets, and any

project cost overruns)

D l P j


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Develop Project

Charter Tools and Techniques Project Selection Methods: used to determine

which project the organization will select: Benefit measurement methods (Comparative

approaches): Scoring models

Benefit/cost analysis

Economic models.

Feasibility studies

Mathematical models

Linear, dynamic, integer, or multi objective programmingalgorithms.

D l P j t


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Develop Project

Charter Tools and Techniques Project Management Methodology

Could be an elaboration of a project management standards Help project management team in effectively developing a project

charter

Project Management Information System (PMIS)

Expert Judgment

Available from many sources

Other units within the organization

Consultants

Stakeholders (including customers or sponsors)

Industry groups


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Develop Project Charter Outputs Project Charter

A project does not existwithout a project charter

Provide the high-level

requirements for the

project

Project Charter

Project Title Description (What is the Project?)

Project Manager Assigned and Authority Level (Who is given authority to lead theproject, and can he/she determine, manage and approve changes to budget, schedule, staffing,

etc.?)

Business Need (Why is the project being done?)

Project Justification (Business case On what finical or other basis can we justify doing this

project?)

Resources Pre-assigned (How many or what resources will be provided?)

Stakeholders (Who will affect, or be affected by, the project (influence the project), as

known

to date?)

Stakeholder Requirements As Known (Requirements related to both project and productscope?)

Product Description / Deliverable (What specific product deliverables are wanted and what

will be the end result of the project?)

Constraints and Assumptions (A constraint is any limiting factor and an assumption is

something taken to be true, but which any not be true?)


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Project Integration Management

4.2 Develop Preliminary Project Scope Statement

Inputs1. Project charter2. Project statement of work

3. Enterprise environmental

factors4. Organizational process

assets

Tools & Techniques1. Project Management methodology

2. Project Management Information

System (PMIS)3. Expert judgment

Outputs1. Preliminary Project Scope Statement

4 2 Develop Preliminary


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4.2 Develop Preliminary

Scope StatementThe Preliminary Project Scope Statement is developed from

information provided by the initiator or sponsor.

It is the first attempt to define the project scope, What needs

to be accomplished to meet the project objectives.

The effort to obtain all the information needed to plan the

project

Obtaining a clearer understanding of what needs to be done

Sponsor initial expectations about risks, budgets, schedules

Developed from information provided by the initiator or sponsor

4 2 Develop Preliminary


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4.2 Develop Preliminary

Scope Statement The purpose of the Preliminary Project Scope

Statement is to make sure the project managerand the sponsor have a similar understanding or ameeting of the minds about project scope beforeplanning begins

The Preliminary Project Scope Statement could beconsidered as the effort during the initiatingprocesses to obtain all the information needed toplan the project This includes interviewing the sponsor for the purposes of

obtaining a clearer understanding of what needs to be

done to accomplish the requirements.

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