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Agenda• Project

• Operational Work

• Project Management

• Program

• Portfolio

• Project Management Office (PMO)

• Objectives

Agenda• Constraints

• Stakeholders

• Organizational Structure

• Life Cycle

• Lessons Learned

Definition of ProjectProject

• Temporary endeavor with a beginning and an end

• Creates a unique product, service or result

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Why are Projects Initiated?• Market Demand

• Strategic Opportunity/Business Need

• Social Need

• Environmental Consideration

• Customer Request

• Technological Advance

• Legal Requirement

Example of Project• Construction of Bosphorus Bridge.

• Beginning: 20 Feb 1970

• End: 1 June 1973

• Temporary

• Unique

Definition of Operational Work• Most of the work being done in organizations

• Ongoing

• Repetitive



Example of Operational Work• Yearly maintenance of Bosphorus Bridge

• Repetitive (yearly)

Initiating Planning ExecutingMonitoring

and Controlling

Closing

What is Project Management?• Project management is the application of

knowledge, skills, tools and techniques to projectactivities to meet the project requirements.

• Profession growing rapidly

• Follows systematic process

• Processes of project management:

What is Project Management?Knowledge Areas:

• Project Management Framework

• Project Management Processes

• Integration Management

• Scope Management

• Time Management

• Cost Management



What is Project Management?Knowledge Areas:

• Quality Management

• Human Resource Management

• Communications Management

• Risk Management

• Procurement Management

• Stakeholder Management

Definition of Program• Group of projects

• Management is coordinated because they are related



Example of Program• Manufacturing a new Airbus Airplane

Projects:

• Avionic Systems

• Communication Systems

• Entertainment System

• Security System

• ….

Definition of Portfolio• Group of programs to achieve a business

goal.

• Programs might not be related.

• It is important to serve for same businessgoal.



Example of Portfolio• Airbus will develop 3 new airplane versions in

6 years.

• Strategic goal: to be the world’s most passenger carrying airplane company.



Project, Program, Portfolio…

6 Year Airplane Manufacturing

Portfolio

Airbus 921 Program

Avionic Systems Project

…

Airbus 922 Program

Communication Systems Project

…

Airbus 923 Program

Entertainment System Project

…

Comparative Overview (Project, Program, Portfolio)

Project Management Office (PMO)Department centralizes the management of projects

PMO Structures:

1. Supportive: Supplies templates, best practices, training, lessons learned…etc. Acts as repository. (Low degree of control)

2. Controlling: Supports and requires complianceto tools, methods. (Moderate degree of control)

3. Directive: Directly manages the projects. (High degree of control)

Project Management Office (PMO)PMO May:

• Manage interdependencies between projects

• Help provide resources

• Terminate projects

• Monitor compliance with organizational processes

• Gather lessons learned

Project Management Office (PMO)PMO May:

• Provide templates

• Provide guidance

• Provide centralized communication about the projects

• Be part of change control board

• Be a stakeholder



Role of the Project Manager• Person assigned by the organization to lead

the team that is responsible for achievingproject objectives.

• Depending on the type of organizationProject Manager can report to

Functional Manager

Program Manager

Portfolio Manager



Role of the Project Manager• Link between strategy and team.

• Project Manager should have followingcompetencies:

Knowledge (about project management)

Performance (how he applies knowledge)

Personal (behavior)



Interpersonal Skills of a Project Manager• Leadership

• Team building

• Motivation

• Communication

• Influencing

• Decision Making

• Political & CulturalAwarenes

• Negotiation

• Trust building

• Conflict Management

• Coaching

Objectives• What needs to be achieved as a result of

project.

• For example: Constructing Bosphorus Bridge:

• Objectives:

6 lanes in total (3+3)

Must carry at least 2,500,000 kgs

Must resist at least 8.5 Richter Earth-Quake

Important Points - Objectives• Projects are considered complete when

objectives are met

• A reason for terminating a project before completion is that the project objectives cannot be met

• Meeting project objectives is under Project Manager’s responsibility.

Important Points - Objectives• Quality activities are for checking project

meets its objectives.

• There is a trade-off between requirements & objectives.



Management by Objectives (MBO)• A management philosophy

1. Establish clear & realistic objectives

2. Periodically evaluate if objectives are met

3. Implement corrective action



Constraints Cost

Scope

Quality

Customer Satisfaction

Risk

Resources

Time

Constraints• If there is a change on one constraint,

evaluate its effect on other constraints

• For example, if your schedule is shortened, there might be

Additional resources (cost increase)

Faster completion (risk increase, quality decrease)

Organizational Process Assets• Plans, processes, policies, procedures and

knowledge bases specific to and used by theperforming organization.

• Includes lessons learned and historical info.

• Input to most planning processes.

• Corporate knowlede base is for storing and retreiving information.

Enterprise Environmental Factors• Conditions, not under control of the project

team, that influence, constrain or direct theproject.

• Input to most planning processes.

• Examples: Organizational culture, structure, and governance

Government or Industry Standards

Political Climate

Marketplace Conditions

Stakeholders• People whose interests may be positively or

negatively impacted by the project.

• Includes all members of the project team.

• Identifying stakeholders, understanding their relative degree of influence on a project, and balancing their demands, needs and expectations are critical to success of the project.

Stakeholders

Stakeholders of Boshphorus Bridge Project• Everybody who worked in the project

• Government

• Sea transporters

• People residing closer to

the bridge

• ….

Project Governance• Provides the project manager and team with

structure, processes, decision-making models and tools for managing the project.

• Involves stakeholders, documented procedures, and standards, responsibilities and authorities.



Project Team• Project Manager and the group of individuals

who perform the project work.

• Project Manager is the leader of the team, and his authority is over the project members.



Organizational Structure• One of the main factors affecting projects in

an organization.

Three types of organizations:

• Functional

• Projectized

• Matrix

Functional• Most common form

• Grouped by areas of specialization

Marketing, Human Resources, IT, Sales… etc.

• Requests and information is transmitted through head of departments

• Team members do

(project work)+(departmental work)

Functional

Projectized• Entire company is organized by projects.

• Project Managers have control of projects.

• No departments for resources.

• When project is over, personnel is either assigned to a new project, or need to find a new job.



Projectized

Matrix (Projectized+Functional)• Attempt to get strengths of projectized and

functional organization.

• Team members report to project manager and functional manager.

Team Member

Project Manager

Functional Manager (Software Development Manager)

Matrix (Projectized+Functional)• Team members do

(project work)+(departmental work)

Strong Matrix Balanced Matrix Weak Matrix

Power of Project Manager Power of Functional Manager

POWER

Matrix (Projectized+Functional)• In weak matrix organization, Project

Managers are:

Project Expediter: acts as staff assistant and communications coordinator.

Cannot make any decision.

Project Coordinator: acts like Project Expediter, but has some power and can take some decisions.

Weak Matrix

Balanced Matrix

Strong Matrix

Advantages of Functional Organization

• Easier management of specialists

• Team members report to only one supervisor

• Similar resources are centralized

(e.g., software developers to IT department)

• Clearly defined career paths in areas of specialization

Developer Senior Developer Expert Developer Architect… etc.

Disadvantages of Functional Organization

• People place more emphasis on their functional specialty to the detriment of the project.

• No career path in project management

• The project manager has little or no authority.

Advantages of Projectized Organization

• Efficient project organization

• Loyalty to the project

• More effective communications than functional



Disadvantages of Projectized Organization• No “home” when project is finished

• Lack of professionalism in disciplines

• Duplication of facilities and job functions

• Less efficient use of resources

Advantages of Matrix Organization• Highly visible project objectives• Improved project manager control over

resources• More support from functional areas• Maximum utilization of scarce resources• Better coordination• Better horizontal and vertical dissemination of

information• Team member maintain a “home”

Disadvantages of Matrix Organization• Extra administration is required

• More then one boss for project teams

• More complex to monitor and control

• Tougher problems with resource allocation

• Need extensive policies and procedures

• Functional managers may have different priorities than project managers

• Higher potential for conflict

Comparative Overview of OrganizationalStructures

Life Cycle• Progression through a series of differing stages

of development

• Generic

Life Cycle

for all

projects

Life Cycle• Impact of Variable Based on Project Time

Product Life Cycle• Starts from conception of a new product to its

withdrawal

• A Product can require many projects over its life• Determine

customer’s need (conception)

• Analyze competition (maturity)

Project Life Cycle• Changes depending on the industry or

organization’s preferences.

Construction:

Feasibility Planning Design Production Turnover Startup

Project Life CycleInformation Technology (IT):

High Level Design

Detailed Design

Coding Testing Installation ConversionTurnover

to Operations



Project Management Process Groups• Project Management Process includes:

Initiating

Planning

Execution

Monitoring & Controlling

Closing

• Life cycle can change from project to project, but project management process groups are same.

Project Management Process

Project Life Cycle in a Small Project

Project Life Cycle in a Large Project

Lessons Learned• Includes

What was done right

What was done wrong

What would be done if the project could be re-done

• Should cover:

Technical aspects of the project

Project Management (WBS, risk planning, etc.)

Management (communications, leadership)



Role of Lessons Learned



Question #1A project manager is trying to complete a software development project, but cannot get enough attention for the project. Resources are focused on completing process-related work and the project manager has little authority to properly assign resources. What form of organization must the project manager be working in?

A-) Functional

B-) Matrix

C-) Expediter

D-) Coordinator

Question #2The project life cycle differs from the product life cycle in that the project life cycle:

A-) Does not incorporate a methodology

B-) Is different for each industry

C-) Can spawn many projects

D-) Describes project management activities

Question #3Your management has decided that all orders will be treated as “projects” and that project managers will be used to update orders daily, to resolve issues, and to ensure that the customer formally accepts the product within 30 days of completion. Revenue from the individual orders can vary from $100 to $150,000. The project manager will not be required to perform planning or provide documentation other than daily status. How would you define this situation?

A-) Because each individual order is a “temporary endeavor”, each order is a project.

B-) This is program management since there are multiple projects involved.

C-) This is a recurring process.

D-) Orders incurring revenue over $100,000 would be considered projects and would involve project management.

Question #4The previous project manager for your project managed it without much project organization. There is a lack of management control and no clearly defined project deliverables. Which of the following would be the BEST choice for getting your project better organized?

A-) Adopt a life cycle approach to the project

B-) Develop lessons learned for each phase

C-) Develop specific work plans for each work package

D-) Develop a description of the product of the project.

Question #5A company is making an effort to improve its project performance and create historical records of past projects. What is the BEST way to accomplish this?

A-) Create project management plans

B-) Create lessons learned

C-) Create network diagrams

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Question #6One of your team members informs you that he does not know which of the many projects he is working on is the most important. Who should determine the priorities among projects in a company?

A-) The project manager

B-) The project management team

C-) The project management office (PMO)

D-) The team

Question #7A market demand, a business need, and/or legal requirement are examples of:

A-) Reasons to hire a project manager

B-) Reasons projects are initiated

C-) Reasons people or businesses become stakeholders.

D-) Reasons to sponsor a project.



Question #8Consideration of ongoing operations and maintenance is crucially important to products of projects. Ongoing operations and maintenance should:

A-) Be included as activities to be performed during project closure

B-) Have a separate phase in the project life cycle, because a large portion of life cycle costs is devoted to maintenance and operations

C-) Not be viewed as part of a project. A project is temporary with a definite beginning and end.

D-) Be viewed as a separate project.

Question #9Lessons learned are BEST completed by:


B-) The team

C-) The sponsor

D-) The stakeholders



Question #10A manager and the head of engineering discuss a change to a major work package. After the meeting, the manager contacts you and tells you to complete the paperwork to make the change. This is an example of:

A-) Management attention to scope management.

B-) Management planning.

C-) A project expediter position.

D-) A change control system.

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