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PMIsA Guide to the ProjectManagement Body of Knowledge

(PMBOK Guide) 3rdEdition

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UNIT 1

INTRODUCTION

UNIT 1

INTRODUCTION

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1 - INTRODUCTION1 - INTRODUCTION

1.1 Purpose ofthe PMBOK Guide

1.2 Whatis a Project?

1.3 Whatis Project Management?

1.4 The PMBOK Guide Structure 1.5 Areas ofExpertise

1.6 Project ManagementContext

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1.1 Purpose ofthe PMBOK Guide1.1 Purpose ofthe PMBOK Guide

Toidentify that subsetofthe Project Management BodyofKnowledge thatis generally recognized as goodpractice. Identify means to provide ageneraloverviewas opposedto

an exhaustive description. Generally recognized means thatthe knowledge and practices

describedare applicable to most projects mostofthe time, andthatthere is widespread consensus abouttheir value andusefulness.

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1.1 Purpose ofthe PMBOK Guide1.1 Purpose ofthe PMBOK Guide

Good practice means thatthere is generalagreementthatthe correctapplicationofthese skills, tools, andtechniques can enhance the chances ofsuccess over awide range ofdifferent projects.

Good practice does not meanthatthe knowledgedescribed shouldalways be applied uniformlyonallprojects; the project managementteam is responsible fordeterminingwhatis appropriate for anygiven project.

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FromA Guide to the Project ManagementBody

1.2.1-Project Characteristics1.2.1-Project Characteristics

Temporary Opportunityor marketwindow

Team seldom outlives the project

Unique products, services and results A productor artifactthatis produced, is quantifiable, and can be either an

enditem initselfor a componentitem

A capabilityto perform a service, suchas business functions supportingproductionor distribution

A result, suchas outcomes or documents.

Progressive elaboration Developingin steps, and

Continuing byincrements.

Other Attributes Unique purpose

Require resources, oftenfrom various areas

Shouldhave a primary sponsor and/or customer

Involve uncertainty

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FromA Guide to the Project Management

Body

of Knowledge (PMBOK Guide) 3rd

Edition

1.2.2-Project and Operations1.2.2-Project and Operations

SharedCharacteristics

Performed by people

Constrained bylimited resources

Planned, executed, and controlled.

Projects TemporaryandUnique

Attainobjective andthenterminate

concludes whenits specific objectives have beenattained

Operations

Ongoingand repetitive Sustainthe business

Adoptanew setofobjectives andthe work continues.

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Body

of Knowledge (PMBOK

Guide) 3rd

Edition

Projects are oftenimplementedas ameans ofachievinganorganizations

strategic plan.

Strategic Considerations

A marketdemand

Anorganizationalneed

A customer request

A technologicaladvance

A legal requirement

1.2.3-Project and Strategic Planning1.2.3-Project and Strategic Planning

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Application of knowledge, skills, tools,

and techniques to project activities to

meet the project requirements.

Accomplished through the use of

processes such as Initiating, planning,

executing, controlling, and closing.


Body

of Knowledge (PMBOK Guide) 3rd

Edition

1.3 - What is Project Management?1.3 - What is Project Management?

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Identifying requirements

Establishing clear and achievable objectives

Balancing the competing demands for quality,scope, time and cost

Adapting the specifications, plans, and approach

to the different concerns

expectations of the various stakeholders.

Managing a Project includes:Managing a Project includes:

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Disciplined project managementprovides: Focal point for effective communications,

coordination and control

A plan to assess progress

Emphasis on time and cost performance

Project management provides theframework for methods, processes,

monitoring and change control.

Why Project Management?Why Project Management?

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Laws ofProject ManagementLaws ofProject Management

Projects progress quickly until they are 90% complete.Then they remain at 90% complete forever.

When things are going well, something will go wrong.When things just cant get worse, they will. When

things appear to be going better, you have overlookedsomething.

If project content is allowed to change freely, the rateof change will exceed the rate of progress.

Project teams detest progress reporting because it

manifests their lack of progress.

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How it should go

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How it often goes

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The Triple ConstraintThe Triple Constraint

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Business

Objective

RiskRisk

The Project

Customer

Expectation

Schedule Requirements CostSchedule Requirements Cost

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1.4 - PMBOK Guide Structure

Section I The Project Management Framework Chapter 1- Introduction

Chapter 2 - Project Life Cycle and Organizations

Section II The

Standardfor Project ManagementofaProject

Chapter 3 - Project Management Processes

Section III The Project Management Knowledge Areas Chapter 4-12 - Project Management Knowledge Areas

Professional Responsibility

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Project Management FrameworkProject Management Framework

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This figure is a conceptual view of theserelationships. The overlaps shown are not proportional.

ApplicationArea Knowledge

and Practice

GeneralManagementKnowledge

and Practice

The ProjectManagement

Body of Knowledge

Generally Accepted

Project ManagementKnowledge and Practice

Key PM Concepts from PMBOKKey PM Concepts from PMBOK


Body

of Knowledge (PMBOK Guide) 2000

Edition

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The Project Management Body of Knowledge

Application area knowledge, standards, and

regulations Understanding the project environment

General management knowledge and skills

Interpersonal skills.

1.5 - Area of Expertise Needed by the

Project Team

1.5 - Area of Expertise Needed by the

Project Team

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Area of Expertise Needed by the Project TeamArea of Expertise Needed by the Project Team

FromA Guide to the Project Management Body of Knowledge (PMBOK Guide) 3rd Edition

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A Guide to PMBOK

Project life cycle definition (Chapter 2)

Five Project Management Process Groups (Chapter 3)

Nine Knowledge Areas (Chapters 4-12).

1.5.1-Project Management Body of

Knowledge

1.5.1-Project Management Body of

Knowledge

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Functionaldepartments and supportingdisciplines, such aslegal, production and inventory management, marketing,logistics, and personnel

Technical elements, such as software development or

engineering, and sometimes a specific kind of engineering,such as water and sanitation engineering or constructionengineering

Management specializations, such as governmentcontracting, community development, and new productdevelopment

Industrygroups, such as automotive, chemical, agriculture,and financial services.

1.5.2- Application Area Knowledge,

Standards, and Regulations

1.5.2- Application Area Knowledge,

Standards, and Regulations

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A standard is a document established by consensus andapproved by a recognized body that provides, for commonand repeated use, rules, guidelines or characteristics foractivities or their results, aimed at the achievement of theoptimum degree of order in a given context. Some examples

of standards are computer disk sizes and the thermal stabilityspecifications of hydraulic fluids.

A regulation is a government-imposed requirement, whichspecifies product, process or service characteristics, includingthe applicable administrative provisions, with which

compliance is mandatory. Building codes are an example ofregulations.

Standard and RegulationStandard and Regulation

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Standards often begin as guidelines that describe apreferred approach and later, with widespreadadoption, become generally accepted as if they were

regulations Different organizational levels can mandate

compliance, such as when a government agency, themanagement of the performing organization, or theproject management team establishes specific

policies and procedures.

Overlap in concept of

Standard and Regulation

Overlap in concept of

Standard and Regulation

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Culturaland social environment. Anunderstanding of aspects of the economic, demographic, educational,

ethical, ethnic, religious, and other characteristics of the people whom theproject affects or who may have an interest in the project (stakeholders).

Examine the organizational culture and determine whether projectmanagement is recognized as a valid role with accountability and authority for

managing the project. Internationaland political environment.

Applicable international, national, regional, and local laws and customs, as wellas the political climate that could affect the project.

Other international factors - time-zone differences, national and regionalholidays, travel requirements for face-to-face meetings, and the logistics ofteleconferencing.

Physical environment. local ecology and physical geography that could affect the project or be

affected by the project.

1.5.3- Understanding the Project

Environment

1.5.3- Understanding the Project

Environment

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General management encompasses planning, organizing, staffing,executing, and controllingthe operations ofanongoing enterprise.

Itincludes supportingdisciplines suchas: Financial management and accounting

Purchasing and procurement

Sales and marketing

Contracts and commercial law

Manufacturing and distribution

Logistics and supply chain

Strategic planning, tactical planning, and operational planning

Organizational structures, organizational behavior, personnel administration,compensation, benefits, and career paths

Health and safety practices

Information technology.

1.5.4- General Management Knowledge

and Skills

1.5.4- General Management Knowledge

and Skills

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Effective communication. The exchange of information

Influencingthe organization. The ability to get things done

Leadership. Developing a vision and strategy, and motivatingpeople to achieve that vision and strategy

Motivation. Energizing people to achieve high levels ofperformance and to overcome barriers to change

Negotiationand conflict management. Conferring with othersto come to terms with them or to reach an agreement

Problem solving. The combination of problem definition,

alternatives identification and analysis, and decision-making.

1.5.5- Interpersonal Skills1.5.5- Interpersonal Skills

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Project management exists in a broader context that includes program management,

portfolio management and

project management office.

Frequently, there is a hierarchy of strategic plan,

portfolio,

program,

project and

subproject,

in which a program consisting of several associated projects willcontribute to the achievement of a strategic plan.

1.6 Project Management Context1.6 Project Management Context

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A program is a group of related projects managed in acoordinated way to obtain benefits and control not availablefrom managing them individually.

Programs may include elements of related work outside of the

scope of the discrete projects in the program. Programs also involve a series of repetitive or cyclical

undertakings.

In contrast with project management, program managementis the centralized, coordinated management of a group of

projects to achieve the program's strategic objectives andbenefits.

1.6.1 Programs and Program

Management

1.6.1 Programs and Program

Management

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A portfolio is a collection of projects or programs andother work that are grouped together to facilitateeffective management of that work to meet strategicbusiness objectives.

The projects or programs in the portfolio may notnecessarily be interdependent or directly related.

Funding and support can be assigned on the basis ofrisk/reward categories, specific lines of business, or

general types of projects, such as infrastructure andinternal process improvement.

1.6.2 Portfolios and Portfolio

Management

1.6.2 Portfolios and Portfolio

Management

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To maximize the value of the portfolio by carefulexamination of candidate projects and programs forinclusion in the portfolio and the timely exclusion ofprojects not meeting the portfolios strategicobjectives.

To balance the portfolio among incremental andradical investments and for efficient use of resources.

Senior managers or senior managementteams typicallytake onthe responsibilityofportfolio managementfor anorganization.

Goals of Portfolio ManagementGoals of Portfolio Management

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Projects are frequently divided into more manageable components orsubprojects

Individual subprojects can be referred to as projects and managed as such.

Subprojects are often contracted to an external enterprise or to anotherfunctional unit in the performing organization. Examples include: Subprojects based on the project process, such as a single phase in the project

life cycle

Subprojects according to human resource skill requirements, such as plumbersor electricians needed on a construction project

Subprojects involving specialized technology, such as the automated testing ofcomputer programs on a software development project.

On very large projects, the subprojects can consist of a series of evensmaller subprojects.

1.6.3 Sub-Projects1.6.3 Sub-Projects

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A project management office (PMO) is an organizational unit to centralizeand coordinate the management of projects under its domain.

A PMO can also be referred to as a program management office, projectoffice, or program office.

A PMO oversees the management of projects, programs, or a combination

of both. The projects supported or administered by the PMO may not be related

other than by being managed together.

Some PMOs, however, do coordinate and manage related projects.

In many organizations, those projects are indeed grouped or are related insome manner based on the way the PMO will coordinate and manage

those projects. The PMO focuses on the coordinated planning, prioritization and execution

of projects and subprojects that are tied to the parent organizations orclients overall business objectives.

1.6.4 Project Management Office1.6.4 Project Management Office

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PMOs can operate on a continuum, from providing projectmanagement support functions in the form of training,software, standardized policies, and procedures, to actualdirect management and responsibility for achieving theproject objectives.

A specific PMO can receive delegated authority to act as anintegral stakeholder and a key decision-maker during theinitiation stage of each project, can have the authority tomake recommendations, or can terminate projects to keep thebusiness objectives consistent.

In addition, the PMO can be involved in the selection,

management, and redeployment, if necessary, of sharedproject personnel and, where possible, dedicated projectpersonnel.

1.6.4 Project Management Office1.6.4 Project Management Office

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Shared and coordinated resources across all projects administered by the PMO

Identification and development of project management methodology, best practices,and standards

Clearinghouse and management for project policies, procedures, templates, andother shared documentation

Centralized configuration management for all projects administered by the PMO

Centralized repository and management for both shared and unique risks for allprojects

Central office for operation and management of project tools, such as enterprise-wide project management software

Central coordination of communication management across projects

A mentoring platform for project managers

Central monitoring of all PMO project timelines and budgets, usually at the enterprise

level Coordination of overall project quality standards between the project manager and

any internal or external quality personnel or standards organization.

Key Features of a PMOKey Features of a PMO

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Project managers and PMOs pursue different objectives and are driven by differentrequirements. All of these efforts, however, are aligned with the strategic needs ofthe organization.

A project manager is responsible for delivering specific project objectives within theconstraints of the project, while a PMO is an organizational structure with specificmandates that can include an enterprisewide perspective.

The project manager focuses on the specified project objectives, while the PMO

manages major program scope changes and can view them as potential opportunitiesto better achieve business objectives. The project manager controls the assigned project resources to best meet project

objectives, while the PMO optimizes the use of shared organizational resourcesacross all projects.

The project manager manages the scope, schedule, cost, and quality of the productsof the work packages, while the PMO manages overall risk, overall opportunity, andthe interdependencies among projects.

The project manager reports on project progress and other project specificinformation, while the PMO provides consolidated reporting and an enterprise viewof projects under its purview.

Differences between a Project Manager

and a PMO

Differences between a Project Manager

and a PMO

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PMI Standards1. PMBOK Guide 2000 Edition

2. PMI Practice Standard for WorkBreakdown Structures

3. PM Competency DevelopmentFramework

4. Government Extension of the

PMBOK Guide5. Construction Extension to thePMBOK Guide

6. Organizational ProjectManagement Maturity Model(OPM3)

7. U.S. DoD Extension of thePMBOK Guide

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PMI Standards

8. Practice Standard for EarnedValue Management

9. Combined Standards Glossary

10. Translating Corporate Strategyinto Project Strategy RealizingCorporate Strategy throughProject Management

11. ExposureDraft PortfolioManagement

12. ExposureDraft ProgramManagement

13. PMI Member Ethical Standards

14. PMP Code of Conduct

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PMI Certifications

Project Management Professional

(PMP)

Certificate in Associate ProjectManagement (CAPM)

pm unit 01

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