project fundamental

7/24/2019 Project Fundamental

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MODULE 2PROJECT FUNDMENTALS


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Project Fundamentals

What is a PMBOK Guide?

PMBOK Gu id e (pronounced PIM-BOK) stands for A Guide to Project

Management Body of Knowledge. It is actually a book which presents a set

of standard terminology and guidelines for project management. This book is

published by the Project Management Institute (PMI), U.S.A. The PMPCertification Exam is based on the PMBOK Gu ide. (We shall look at this

again in later slides)

What is a Project?

*A project is A temporary endeavor to create a unique product,

service orresult.

The outcome of a project viz. product, service or result is

collectively termed as a Deliverable.


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Project Characteristics:

Temporary

A project is temporaryin nature.Which means it has a def ini te

startand an end date . Temporary

could mean a week, a month, a

year or few years or perhaps evena decade.



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Unique

A project creates a unique

deliverable which could be a

product, service or a result that is

tangibleormeasurable.

It could be a building construction,software tool or an engineering

drawing.



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Progressively Elaborated

As you keep working on the project, you

learn to know more about the project.The project begins with a conceptual or

high level, then as you gather more and

more information, the requirements are

refinedor becomespecific.



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Why projects are undertaken:

Few reasons why projects are undertaken by any organization:

Market Demand or Business Need: An opportunity to cater to the demands of the

market

Organization Need: An internal requirement for the organization to improve its

operations better infrastructure, reduction in costs, improve profits etc.

Customer Need: A customer requirements are catered by creating a new project

Technological Advance: A change in technology makes it a compulsion for the

organization to adapt to changes and stay ahead of the competition

Legal Requirement: Changes in Government Laws & Regulations

Social Need: Societal cause; project for the benefit of public usually by Govt.



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Project End Criteria:

A project ends when its objective (s) or goal(s) is/are achieved

The requirement for the project no longer exists and as a result it gets cancelled or

terminated

Examples of Project:

Rail Roads, Buildings, Bridges etc. (construction based projects)

Engineering drawing plan for a new sports car model or an automobile

(architectural/drawing projects)

Developing a software application (IT based projects)

Feasibility or viability or pilot study (Research based projects)



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Operations:

Ongoing

Operations are ongoing or repetitive in nature

Requires planning, people and other resources similar to a project with the only difference

that it is continuous. There is no end date

Purpose is to sustain the functioning of a business

Includes the organizational procedures

For example: Day to day activities like Financial or Accounting operations, Human Resourceoperations, Logistics & Transport operations



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What is Project Management?

*Project ManagementisTheapplication of knowledge, skills, tools and techniques to project

activities to meet the projectrequirements.

What are the Project Constraints?

Project constraints are the factors that affect a project outcome. Some of the project

constraints are Scope, Cost/Budget, Time/Schedule, Quality, Risk, Resources.



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Project Constraints (continued)

The project constraints are interlinked and any change in one constraint could affect the

remaining constraints.

For example: A cost change could affect the schedule, scope and there by the quality.

Quality

Scope



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What is a Project Management Office (PMO)?

A Project Management Office or Project Office could be a

separate department that supports project management by

Providing the policies, methodologies and templates formanaging projects within the organization.

Providing support and guidance to others in the organization

on how to manage projects, training others in project

management or project management software and assistingwith specific project management tools.

Providing project managers for different projects in some

cases.



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What is a Phase?A Project is logically divided into small portions called Phases. Each phase

has a duration and one or more deliverable associated with it. The phases are

project specific.

For example: An IT project could have Requirements, Analysis, Design,Development and Implementation phases.

Phases can be executed in sequence or simultaneously (overlap one another)

At the end of each phase, a decision is taken whether to continue to the next

phase or terminate the project. Its called Phase Exit or Phase Gate or

Kill Gate orPhase End Review.



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What are Regulations and Standards?

Regulation is an official document that provides guidelines and is issued by a Government .

Compliance to regulations are mandatory.

Standards on the other hand provides guidelines or best practices defined by a recognizedbody (private). Compliance to standards are not mandatory but may be helpful.

What is a system?

System could be a physical system like computer or formal procedure, process, forms or toolsto manage the tasks.



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Who are Project Stakeholders?

PMBOK Guide defines a Project Stakeholders as Person or organizations that are actively

involved in a project or whose interests may be positively or negatively affected as a result of

project execution or project completion .

Key stakeholders in a project includes:

Portfolio Manager

Program Manager

Project Manager

Project Team

Project Management Office (PMO)

Customer or End Userwho uses the product or service



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Project Stakeholders (continued)

Key stakeholders in a project include (continued):

Project Sponsorone who funds the project

Suppliers/Vendors or Business Partners who are in contractual agreement to provide

components or services necessary for the project.Functional or Line Manager who performs administrative or other functional activities like

human resources, finance, accounting, or procurement

Operational Managers managers who perform other core business operations such as

research & development, design, testing , repair etc.

Negative Stakeholder: A stakeholder who does not want the project to succeed and tries to

negatively influence the project



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Types of Organizations

The type of organization that undertakes a project will have an impact on the way the project

is managed and ultimately the success of the project. There are three types of organizations

namely Functional, Matrix and Projectized.

Matrix organizations are further classified as Weak Matrix, Balanced Matrix and Strong Matrix.

Projectized

Strong Matrix

Balanced MatrixWeak Matrix

Functional



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Functional Organization

This type of organization structure consists of various departments or business units based on

a specific function or area of expertise. A functional manager or head of department leads the

projects that are specific to the business unit.

For example: A functional organization may have finance department, accounting

department, manufacturing department, marketing & sales department, R & D department

etc.

Employees belonging to these department have their own area of expertise and they report

to their respective functional manager as well as the project manager. Functional manager

controls the resources and budget.

The project manager has no power or authority, project role is almost negligible , limited to

project status reporting and is also part-time.

The project manager is also called aProject Expeditor.



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Weak Matrix Organization

A weak matrix closely resembles a functional organization. The project team members may

come from different departments and report to the project manager and also their functional

manager. The project manager reports to a specific functional manager directly. Functional

manager controls the resources and budget.

The project manager in a weak matrix has the following attributes:

Very limited authority or power.

Role is part-time

May have some part-time administrative support staff to expedite the project

Is also known asProject Coordinator,orProject AdministratororTeam Lead



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Balanced Matrix Organization

In a balanced matrix the power and authority is shared equally between the project manager

and the functional manager. The employees report to both project manager and their

respective functional manager. The functional manager controls the resources. The budget

control is shared between project manager and functional manager.

The project manager in a balanced matrix has the following attributes:

Reasonable authority or power.

Role is full-time

May have some part-time administrative support staff to expedite the project



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Strong Matrix Organization

In a strong matrix the project manager has more power and authority than the functional

manager. The employees report to both project manager and their respective functional

manager. The project manager controls the resources in the project team.

The project manager in a strong matrix has the following attributes:

Reasonable to high level authority or power.

Role is full-time

Controls the budget.

May have full-time administrative support staff to expedite the project



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Projectized Organization

A projectized organization is organized around projects and each project is lead by a project

manager who is solely responsible for the project. The employees report to their project

manager only. Once the project is completed the resources are released for use in other

projects.

The project manager in a projectized organization has the following attributes:

High to complete level authority or power.

Role is full-time

Has full-time administrative support staff to expedite the project

Controls the budget as well as the resources


l f


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Role of a Project Manager

Functional Manager-focused on providingmanagement oversight for an administrative area

Operations Manager- responsible for a facet of acore business

Project Manager should possess

1.Understanding and applying the knowledge, tools

and techniques that are recognized as good

practice

2. Area specific skills

3. General management proficiencies


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Project Management Framework

Fundamentals

k d l


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Project Management Framework Fundamentals

Another look atPMBOK Guide

There are 5 process groups, 10 knowledge areas and 47 management processes as per

PMBOK Guide(5th edition).

What is a Process Group?

The process group is a logical division of the project management processes based on the kindof action taken in the project. These process groups could be repeated within each phase in

the project. There are 5 process groups as per PMBOK Guide(5th edition) and they are:

1. Initiating

2. Planning

3. Executing

4. Monitoring & Controlling

5. Closing


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Each Process Groups has its own

lifecycle

PMI Process Groups


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Presented as discrete elements with well defined

interfaces

In practice, they are overlap and interact in ways that

are not detailed in some ways

Guides for applying appropriate project management

knowledge and skills during the project

The application is iterative, and many process are

repeated during the project. It is seldom one-time event Linked by the OUTPUT they produce.

Output usually becomes INPUT to another process or is

a DELIVERABLES of the project

Differences - PMI Process Groups

Differences Process Groups &


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Each Process Groups has its own lifecycle

Differences Process Groups &Project Phases Lifecycle

Differences Project Phases


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Project Phases are divisions within a project where extra control is

needed to effectively manage the completion of a major deliverable.

Project phases are typically completed sequentially, but can overlap in

some project situations. The high level nature of project phases makes

them an element of project lifecycle.A project Phase is NOT a Project Management Process Group

Allows the project to be segmented into logical subsets for

ease of management, planning & control.

When the phase endswork is handover to other department requires Gate Reviews

Focus on different skill sets

The Primary deliverable of the phase requires an extra degree

of control to be successfully achieved.

DifferencesProject Phases

PMI Five Process Groups


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PMI Five Process GroupsNine Knowledge Areas

PMI Five Process Groups


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PMI Five Process GroupsNine Knowledge Areas

j k d l


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What are Knowledge Areas?The knowledge areas are logical division of the project management processes based on the

domain or functional areas. Each knowledge area has got at-least one management process.

There are 10 knowledge areas as per PMBOK Guide(5th edition) and they are:

1. Project Integration Management

2. Project Scope Management

3. Project Time Management

4. Project Cost Management

5. Project Quality Management

6. Project Human Resource Management

7. Project Communications Management

8. Project Risk Management

9. Project Procurement Management

10. Project Stakeholder Management

P j t M t F k F d t l


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What is a Project Management Process?

A process can be thought as a package of inputs, tools & techniques and outputs. Each

process can only belong one knowledge area and one process group. There are 47

management processes as perPMBOK Guide(5th edition).

The output(s) of one process may be input(s) for another process. Every process may be

performed more than once in a single project or in a single phase.

InputsTools

&Techniques

Output

Input(s)

Tools &Techniques

Output(s)

Process1

Input(s)

Tools &Techniques

Output(s)

Process2 Input(s)

Tools &Techniques

Output(s)

Process3



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Common Terms & Terminologies

*Enterprise Environmental Factors (EEFs)

Enterprise Environmental Factors refers to conditions not under the immediate control of the

team, that influence, constrain, or direct the project, program or portfolio.

Some of the EEFs are :Organizational culture, structure, and governance

Geographic distribution of facilities and resources

Infrastructure

Company Work Authorization Systems and Project Management Information Systems

Market Conditions

Existing Human Resources and Personnel Administration

Political Climate, Commercial Database



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Organizational Process Assets (OPA)

Organizational Process Assets includes the information, tools, templates and documents,

procedures, guidelines, historical project documents, enterprise database etc. that could be of

help in planning a project.

Some of the OPAs are :

Templates of common project documents

Previous project plans

Organizational policies, procedures and guidelines

Software tools

Enterprise database & Knowledge base

Lessons learned documents and so on



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Expert Judgment

Experts who are internal to the organization or external to an organization such as

independent consultants, consulting agencies & firms, subject matter experts (SME)

etc. who can provide their expertise or advice , help in resolving project related

matters.



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*Work Performance Data

Work Performance Data is The raw observations and measurements identified during

activities being performed to carry out the project work.

*Work Performance Information

Work Performance Information is The performance data collected from various controlling

processes, analyzed in context and integrated based on relationships across areas.

*Work Performance Reports

Work Performance Reports are Work Performance Information compiled into a format ofpresentation or report. E.g. Formal Recommendations, Decisions or Conclusions about a

project.

Industry Standards


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Phase 0

ORIGINATION

Phase 1

INITIATION

Phase 2

PLANNING

Phase 3

CONSULTANT

SELECTION

Phase 4

ANALYSIS &

DESIGN

Phase 5

TENDER &

AWARD

Phase 6

IMPLEMENT

ATION

Phase 7

CLOSEOUT

Construction

Project Lifecycle

Phase 1

CONCEPT

Phase 2

DESIGN

Phase 3

PROTOTYPE

Phase 4

MATERIALSPRODUCTIO

N

Phase 5

MANUFACTURING &

ASSEMBLY

Phase 6

WIRING &

WELDING

Phase 7

TESTING

Auto Industry Project

Lifecycle

Phase 1

CONCEPT

Phase 2

DISCOVERY

Phase 3

INITIATION

Phase 4

DESIGN

Phase 5

TESTING

Phase 6

IMPLEMENTAT

ION

Phase 7

POST

IMPLEMENTAT

ION

Banking Industry SDLC Project

Lifecycle

Phase 3

PLANNING

Phase 1

REQUIREMENTS

SPECIFICATION

Phase 2

SOFTWARE

DESIGN

Phase 3

IMPLEMENTATIO

N &

INTEGRATION

Phase 4

DEPLOYMENT

(INSTALLATION)

Phase 5

MAINTENANCE

IT Industry Software Development

Lifecycle

Phase 3

TESTING

(VALIDATION)

Industry Standards


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SO

HOW DO YOU START A

PROJECT THEN?


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What is the Right Process?


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What is the Right Process?

Consider for discussions (15 m inutes)

Starting a Project


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Identification ofproblem/opportunityrecognition of business need

High Level Business CaseEvaluation by ClientRationale

for the Project What are the business drivers?

Like to do /must do?

How does it fit in with businessgoals vision and mission etc

What are the financial and nonfinancial costs?

Most do not survive thisevaluation

Starting a Project

Then


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Examination of the proposal solution inmore detail and specifyingrequirements of client face to face,interview, meetings, etc.

Identifying the project scope andobjectives and deliverables,specifying the work as well asidentifying assumptions and constraints

Preparation of specification whichguides the work and team

Project Initiation Document orBusiness Case

Then.

Starting a Project Business Case


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The Project Business Case is a one-off, start-up

document used by senior management to assess

the justification of a proposed project

Basis for comparison of a number of projects

competing for limited funds/ assess the options for

a project that has already received funding

Confirms senior management support and/orresourcing for a recommended course of action

Starting a Project Business Case

Objective


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Objectives are concrete statements describing whatthe project is trying to achieve. Objectives should bewritten at a low level so that they can be evaluated atthe conclusion of a project to determine if they were

achieved. A well-worded objective will be SMART

Objective

SMART Objectives


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Do the Objectives describe concrete achievements and

outcomes that support the stated project goal? Statements:-

Specific - Does your Objective reference a discrete

achievement?

Measurable - Does your Objective have a measurable outcome

with an identified metric?

Attainable - Is it actually possible to obtain your specified

Objective?Realistic - Is the proposed Objective reasonably obtainable

within the constraints of available resources?

Time-bound - Is there a definitive date by which the Objective

will be reached?

SMART Objectives

Scoping the Project


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Defining the parameters not about deciding cost and time

Buying a car scope first 4 cylinder front wheel drivewith seating for 2 adults + 2 and less than 2 years old.Black convertible? Having defined the scope cost andtime can be calculated

Remove uncertainties - formal contract or agreement withprincipal stakeholder (External = client and Internal =sponsor)

Objectives and deliverables have to be considered whenscoping project to be successful the project must deliverthe product the project was formed to create (to spec) butmust also meet the project objectives

Scoping the Project

Scope Statement


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Forms the basis for

agreement between thecustomer and the supplier

Basis for all project

related decisions

Identifies the objectives andthe deliverables and forms

a basis for common

understanding

Section within the projectplan and should be

agreed

Exclusions as well as

inclusions

Scope Statement


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Products, services, processes or plans thatare created as a result of the project anytangible outcome that is produced by the projecte.g. documents, plans, computer systems,buildings, aircraft

Internal = produced as result of executing theproject mostly for project team (Project Plan,Specification)

External = customers and stakeholders

Always measurable

Project Specifications


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Prescribes the requirements with which the product orservice has to conform

What the client asks for What the client

wants

Project Specifications

Project Deliverables


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Establish the project environment and provide a basis for

planning and estimating the project

By defining assumptions the project team can establishtheir validity and develop contingency plans if the

assumptions prove to be true

Think about project environment, quality, time, cost

and risk, scope, resources and technology

Project Deliverables

Critical Success Factor (CSF)


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You can't manage what

you can't measure."

Key factors seen to be crucial to

projects success

Should be determined at the

beginning of the project

Listed in priority and reflect the

project objectives

C t ca Success acto (CS )


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Project success is a topic that is frequently

discussed and yet rarely agreed upon. The

concept of project success has remainedambiguous defined. It is a concept which can

mean so much to so many different people

because of varying perceptions and leads todisagreements about whether a project is

successful or not. (PMI)

Issues with Critical Success Factors

M i P j i T h!


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Requirements are incomplete Its very difficult for a person to take into account all of

the alternative flows and how different sets of

requirements relate to each other

Believe that you have, or ever can have a

comprehensive and finalized set of requirements is a

self-deception

Changes are inevitable

Project priorities will shift

Resources will be pulled off the projects

Risks will materialize

Estimates will turn out to be unrealistic

Managing Projects is Tough!


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Module 3

project fundamental

Documents