notes on course introduction1 (project management)

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    Course Introduction

    What is a project?

    Key words: specific, time, unique A project is a temporary endeavor (an attempt to achieve or gain)

    undertaken to create a unique product, service or result Operation on the other hand, is the work done in the organizations to

    sustain business operations. Projects are different than operation in thatthey end when their objectives have been reached or the project has beenterminated.

    Project usually bring different sources and different fields all to achieveone purpose

    A project needs to have one primary sponsor Project involves a lot for uncertainties Project develops through time. Projects are a means of focusing effort on a problem

    o Goal driveno Responsive to the situationo Quick decision makingo Fast problem resolutiono Projects are flexible (Recruiting temporary staff, Easier to kill

    project)

    Project Attributes (characteristics)

    A project has a unique purpose: each should have a well-definedobjective

    A project is temporary: has a definite beginning and a definite end A project is developed using progressive elaboration: broad definition

    but becomes specific as time passes. Therefore, project should bedeveloped in increments. A project team should develop initial plans andthen update them with more details based on new information.

    A project requires resources, often from various areas: people,equipment, etc. Resources however are limited. They must be usedeffectively to meet project and other corporate goals.

    A project should have a primary customer or sponsor: to providedirection and funding

    A project involves uncertainty: due to its unique nature. It is sometimesdifficult to define the projects objectives clearly, estimate how long it willtake to complete, or determine how much it will cost. External factors alsocause uncertainty, such as supplier going out of business or a project teammember need an unplanned time off. This uncertainty is the one of themain reasons why project management is so challenging, especially onprojects involving new technologies.

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    A good project manager is crucial to a projects success. Project managerworks with the sponsors, project team, and other people involved in a projectto meet project goals.

    The Triple Constraints

    For projects to be successful, a project manager has to balance three often-competing goals: scope, time and cost

    Scope: What work will be done as part of the project? What uniqueproduct does the customer/sponsor expect? Scope: Includes the processrequired to ensure that the project include all the work required and onlythe work required to complete the project successfully.

    Time: How long should it take to complete the project? What is theproject schedule? Include the processes required to accomplish timelycompletion of project.

    Cost: What should it cost to complete the project? What is the projectbudget? . Include the process involved in planning, estimating, budgetingand controlling costs so that the project can be completed withinapproved budget.

    Quality: Include all the activities of the performing organization thatdeterminate quality policies.

    Client satisfaction: So that the project will satisfy the need for which itwas undertaken.

    A good project management means meeting all three goals (scope, time andcost)- and satisfying the projects sponsor! (Includes more than meeting thetriple constraints)

    What is Project Management?

    It is the application of applying knowledge, skills, tools and techniques to projectactivities to meet project requirements. Project managers must not only striveto meet specific scope, time, cost and quality goals of projects they must alsofacilitate the entire project to meet the needs and expectations of the peopleinvolved in or affected by project activities.

    Involves:Planning, motivating, implementing, organizing, monitoring/controlling

    Key elements of this framework include project stakeholders, projectmanagement knowledge areas, project management tools and techniques, andthe contribution of successful projects to enterprise

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    .

    When is formal Project Management necessary? Are the jobs complex? Are there dynamic environmental considerations? Are the constraints tight? Are there several activities to be integrated? Are there several functional boundaries to be crossed?

    Advantages of Project Management Easy adaptation to an ever-changing environment

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    Ability to handle a multi-disciplinary activity within a specific time period A multi-disciplinary decision making process Give you methodology to be flexible. Manage team effectively Organize your resources in a way to produce a batter result. Better orientation towards customer problems Easier identification of activity responsibilities Innovation in organizational design

    Project Stakeholders

    Stakeholders are the people involved in or directly affected by projectactivities and include the project sponsor, project team, support staff,customers, suppliers, users and even opponents of the project

    (authorities who have power enough to stop your project), Neighbor (ifyou are construct factory in rural area) and Government (constructedvilla in agricultural area instead of commercial area).

    Often have different needs and expectations Successful PMs develop good relationships with project stakeholders to

    understand and meet their needs and expectations

    Project Management Knowledge areas

    Project management knowledge areas describe the key competencies that theproject managers must develop.

    The four core knowledge areas of project management, which lead to specificproject objectives, are the following:

    1. Project scope managemen t involves defining and managing all the workrequired to complete the project successfully

    2. Project time managemen t includes estimating how long it will take tocomplete the work, developing an acceptable project schedule, andensuring timely completion of the project

    3. Project cost management consists of preparing and managing the budget

    for the project4. Project quality management ensures that the project will satisfy the

    stated or implied needs for which it was undertaken

    The four facilitating knowledge area of project management, which is theprocesses through which the project objectives are achieved, are the following:

    5. Project human resources management is concerned with makingeffective use of the people involved with the project.

    6. Project communication management involves generating, collecting,disseminating, and storing project information.

    7. Project risk management includes identifying, analyzing, andresponding to risks related to the project.

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    8. Project procurement management involves acquiring or procuringgoods for a project from outside the preforming organization.

    The 9 th knowledge area project integration management is an overarchingfunction that affects and is affected by all the other knowledge areas. Projectmanagers must have knowledge and skills in all the nine of these areas.

    Project Management Tools and Techniques

    They assist project managers and their teams in carrying out work in all nine-knowledge areas

    Knowledge area/Category

    Tools and Techniques

    Integration management Project selection methods, project management methodology, stakeholderanalysis, project charters, project management plans, project managementsoftware, change control boards, configuration management, projectreview meetings, work authorization systems

    Scope management Project scope statements, work breakdown structures, statements of work,scope management plan, requirements analysis, scope change control

    Time management Gantt charts, project network diagrams, critical path analysis, programevaluation review technique (PERT), critical chain scheduling, crashing,fast tracking, milestone reviews

    Cost management Net present value, return on investment, payback analysis, business cases,earned value management, project portfolio management, cost estimates,cost management plans, financial software

    Quality management Six Sigma, quality control charts, Pareto diagrams, fishbone or Ishikawadiagrams, quality audits, maturity models, statistical methods

    Human Resourcemanagement

    Motivation techniques, empathic listening, team contracts, responsibilityassignment matrices, resource histograms, resource leveling, teambuilding exercises

    Communicationsmanagement

    Communications management plan, conflict management, communicationsmedia selection, infrastructure, project Web sites

    ProcurementManagement

    Make-or-buy analysis, contracts, requests for proposals or quotes, sourceselection, negotiating, e-procurement

    Risk management Risk management plan, probability/ impact matrix, risk ranking, MonteCarlo simulation, top-ten risk item tracking

    Project managers must work with key stakeholders to define what constitutessuccess for a particular project and strive to complete their project successfullyby applying appropriate tools and techniques. In many organizations, projectmanagers also support an emerging business strategy of project portfolio

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    management , in which organization group and manage projects as a portfolio ofinvestments that contribute the entire enterprises success.

    Project Life Cycle

    1) Initiation: Include conception and selecting of project.

    A) Conception the phase in which project idea starts to develop, come upwith idea a concept of the project.

    B) Feasibility & selecting : (the state or degree of being easily orconveniently done) is a study ensures that projects are technically andlegally possible, and are economically concept is a good one and so yourproject to be selected.

    2) Planning process: Include designing and developing a workable scheme toensure that the project will meet organization objectives.

    Design and planning: The planning phase is where the project solution isfurther developed in as much detail as possible and you plan the steps necessaryto meet the projects objective. In this step, the team identifies all of the work to

    be done. The projects tasks and resource requirements are identified, along withthe strategy for producing them.

    3) Executing: Take a lot of time but will save your time when you are doing theproject. (Physically constructing the facilities)

    a) Development phase gives all aspects of the project, including what theproject will accomplish, who will do the work, how much time it will take,and what it will cost. The project plan is put into motion and performs the

    work of the project.

    ConceptionFeasibility &

    SelectionDesign &Planning Development

    CloseoutOperationsDe-commissioning

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    4) Monitoring and controlling process: Include regular measuring andmonitoring progresses to ensure that the project team meet the projectobjectives.

    5) Closing process: Include formalizing acceptance of project (reviewing the project)a) Closeout During the final closure, or completion phase, the emphasis is onreleasing the final deliverables to the customer, handing over projectdocumentation to the construction, Final Modification, final payment terminatingcontracts, releasing project resources and communicating the closure of theproject to all stakeholders. The last remaining step is to conduct lessons learnedstudies; to examine what went well and what didnt. Through this type ofanalysis the wisdom of experience is transferred back to the projectorganization, which will help future project teams. (Held up the project to theclient) b) Operation a specific time in which the user use the project (house) also itsmaintenance period and any modification.

    c) Decommissioning withdraw from service (Break it Down)

    Start with conception (came up with concept and idea does not need high effort)then it is increasing until it reaches the high effort in Development (when youphysically construct the project). Then it starts to decrease in Operation, andthen in de-commissioning break it down and start again.

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    Project Quality, Reviews and Audits

    Quality Control: involves monitoring specific project results to ensurethat they comply with the relevant quality standards while identifyingways to improve overall quality. (Examine product for the project)

    Quality Assurance : involves periodically evaluating overall projectperformance to ensure that the project will satisfy the relevant qualitystandards

    Total Quality Management : Aimed at continuous improvement of theorganization and personal growth of its individual members

    Project review: Examining the product from the project Project audit: A thorough examination of the management of a project

    (methodology & procedure, records, properties, budget & expenditure,and degree of completion)A project audit provides an opportunity to uncover the issues, concerns

    and challenges encountered in the execution of a project. It affords theproject manager, project sponsor and project team an interim view ofwhat has gone well and what needs to be improved with the project tosuccessfully complete it. If done at the close of a project, a project auditcan be used to develop success criteria for future projects by providing aforensic review. This review will provide an opportunity to learn whatelements of the project were successfully managed and which onespresented some challenges. This will help the organization identify whatit needs to do so that mistakes are not repeated on future projects.

    Project Review: What problems are there? When did they occur?How severe?

    Project Audit: mostly Why did the problems occur

    Project Managers: Challenges

    Relationship of the Project Team to the organization Temporary nature (for a specific period of time) Limitations on power and discretion (cannot fire any one, may one

    project have many companies to complete the project. he can fire theperson from the project but not from his position in the company

    Different backgrounds (different way of thinking and solving problems) Client satisfaction (get his concept submitted at the dead line)

    Project Managers:

    1. Understand: the context of project management2. Recognize: project team conflict as progress3. Understand: who the stakeholders are and what they want (who is more

    important?)4. Accept and use: the political nature of organizations (without spoiling the

    relationships)5. Lead: from the front (control and give directions to the workers)

    https://www.bia.ca/systems-audit.htmhttps://www.bia.ca/systems-audit.htmhttps://www.bia.ca/systems-audit.htmhttps://www.bia.ca/systems-audit.htm
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    6. Understand: what success means (success for client and ensure that theteam understand)

    7. Build and maintain: a cohesive team8. Enthusiasm and despair are both infectious9. One look forward is worth two looks back10. Remember what you are trying to do11. Use time: or it will use you (time management)12. Plan, Plan, Plan (good planer)

    Project Selection methods

    Many ways to select projects Non-numeric

    Sacred Cow - project is suggested by a senior and powerful official in

    the organization Operating Necessity - the project is required to keep the systemrunning

    Competitive Necessity - project is necessary to sustain a competitiveposition

    Product Line Extension - projects are judged on how they fit withcurrent product line, fill a gap, strengthen a weak link, or extend theline in a new desirable way. (New project or you will be left behind)

    Comparative Benefit Model - several projects are considered and theone with the most benefit to the firm is selected

    Numeric Numeric models seek to use numbers as inputs for thedecision process involved in selecting projects. These values can bederived either objectively or subjectively; that is, we may employobjective, external values (The bridges cons truction will require 800cubic yards of cement) or subjective, internal values (You will need tohire two code checkers to finish the software development within eightweeks). Neither of these two input alternatives is necessarily wrong: Anexperts opinion on an issue may be subjective but very accurate. Profitability:

    Payback period initial investment/ net cash inflows (The cash inflow caninclude interest or money made on investments, sales, or any other operating

    activity that can result in a monetary profit); shorter payback idealAverage rate of return (The rate of return on an investment that is calculatedby taking the total cash inflow over the life of the investment and dividing it bythe number of years in the life of the investment.)

    Numeric scoring methods Comparing project by compare thecharacteristics.

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    References

    Schwalbe, K. (2006). Information Technology Project Management (FourthEdition). Thomson Course Technology.

    Ms. Samira Al Esry

    Meredith and Mantel, Project Management: A Managerial Approach, 6th Edition

    Project Management, a systems approach to planning, scheduling andcontrolling, 9th edition, 2006, Harold Kerzner, Ph.D.

    Done by: Eng. Amani Al-Busaidi & Eng. Nora Al Thanawi