Project Management

Instructor: Syed M. Zubair Azam

Lecture 1

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What is a Project?

• Project Defined–“A project is a temporary endeavor undertaken to

create a unique product or service or result” (PMI, 2013)

• Major Characteristics of a Project–Has an established objective/Deliverable.–Its Unique or desired output is not generated before–Has a defined life span with a beginning and an end.–Planned, controlled and Requires across-the-

organizational participation.–Has specific time, cost, and performance requirements.

Triple Constraints

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Projects are evaluated according to accomplishment, cost and time spent. These triple constraints pose a high degree of accountability than you typically find in most jobs.

These three also highlight one of the primary functions of project management, which is the trade-off between time, cost and performance while ultimately satisfying the customer/client.

Project Success – An Example

Burj Khalifa• Tallest Man-made Structure in the World.• Started on 6th, January 2004 and completed on 30th,

December 2009.• Took 1,325 Days to construct and Opened on 4th,

January 2010.• Total cost incurred was USD $ 1.5 billion = AED

5509725000.00.

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Project Success – Burj-Khalifa

Records• Tallest existing structure: 829.8 m (2,722 ft)• Tallest structure ever built: 829.8 m (2,722 ft)• Tallest freestanding structure: 829.8 m (2,722 ft)• Tallest skyscraper (to top of spire): 829.8 m (2,722 ft)• Tallest skyscraper to top of antenna: 829.8 m (2,722 ft)• Building with most floors: 163 (previously World Trade

Center – 110)• Building with world's highest occupied floor: 584.5 m

(1,918 ft)• World's highest elevator installation (situated inside a rod at

the very top of the building)• World's longest travel distance elevators: 504m (1,654 ft)

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Project Success – Burj-Al-Khalifa

Records• Highest vertical concrete pumping (for a building): 606 m

(1,988 ft).• World's tallest structure that includes residential space.• World's highest observation deck: 148th floor at 555 m

(1,821 ft)• World's highest outdoor observation deck: 124th floor at 452 m

(1,483 ft)• World's highest installation of an aluminium and glass façade:

512 m (1,680 ft)• World's highest nightclub: 144th floor• World's highest restaurant (At.mosphere): 122nd floor at 442 m

(1,450 ft)• World's second highest swimming pool: 76th floor

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Projects - Examples

• GiTex Shoppers.• RetailME Awards 2015.• Making of ‘300: Rise of an Empire’, ‘Avatar’,

‘KungFu Panda’ and every movie.• Launch of iPhone 6s.• Muhammad Bin Rashid City.• Madinat Jumeirah expansion.• Almost everything else.

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“All of Mankind’s greatest accomplishments – from building the great pyramids to discovering a cure for polio to putting a man on moon – began as a project”.

Portfolio, Program and Projects

• Portfolio–A collection of Projects and Programs that are

grouped together for pursuing objectives focused on business strategy.

• Program Defined–A series of coordinated, related, multiple projects that

continue over an extended time and are intended to achieve a goal.

–Examples:• Project: completion of a required course

in project management.• Program: completion of all courses required

for a business major.

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Relationship between Portfolio Management, Program Management and Project Management

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Project Life Cycle

1–11Adopted From Gray, Larson, & Desai. (2014). Project Management: the managerial process (6e), McGraw-Hill Publishers.

Business Value

• 80 percent of global executives believed having project management as a core competency helped them remain competitive during the recession.

• Nearly 60 percent of senior executives said building a strong project management discipline is a top-three priority for their companies as they look to the future.

• “Good project management discipline stopped us from spending money on projects that fail,” (Kasabian, GM Intel)

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The Challenge of Project Management

• The Project Manager–Manages temporary, non-repetitive activities and

frequently acts independently of the formal organization.

• Marshals resources for the project.• Is linked directly to the customer interface.• Provides direction, coordination, and integration

to the project team.• Is responsible for performance and success of the

project.

–Must induce the right people at the right time to address the right issues and make the right decisions.

Initiating

Planning

Executing

Monitoring &

Controlling

Closing

•A process group is a logical grouping of activities, inputs, tools, techniques, and outputs required for any type of project.

Project Management Process Groups

Define a new project or new phase,

identify stakeholders, and obtain

authorization

“Authorize the Work”

Develop an integrated project

management plan to attain project

objectives

“Plan the Work”

Complete the work and satisfy project

objectives

“Work the Plan”

Track and review project progress and

performance; manage variance and

change

“Control the Plan”

Finalize all activities and formally close

the project or phase

“End the Work”

• Project Charter• Stakeholder

Register

• Project Mgt. Plans & Related Documents- Scope- Requirements- Schedule- Cost- Quality- Human Resources- Communication- Risk- Procurement- Change- Stakeholders

• Project Deliverables• Work Performance

Data• Team Performance

Assessments• Project

Communications (e.g. status reports)

• Selected Suppliers & Agreements

• Change Requests• Issue Log

• Change Logs• Approved Change

Requests• Work Performance

Information• Schedule Forecasts• Cost Forecasts• Updates to Project

Plan• Quality Control

Measurements• Verified Deliverable• Accepted

Deliverables

• Final Product, Service, or Result (i.e. purpose of project)

• Closed Procurement (e.g. formal signature of acceptance)

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Knowledge Areas

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A project manager is responsible for applying and managing the following ten knowledge areas:

Identify, define, combine, unify and coordinate activities within the Project Management Process GroupsIntegration

Ensure the project includes all work required to complete the project successfullyScope

Manage the timely completion of the projectTime Manage the planning, estimating, budgeting, financing, funding, monitoring, and controlling of cost to enable the project to be completed within the approved budget

Cost

Determine quality policies , objectives, and responsibilities so that the project will satisfy the needs for which it was undertaken Quality

Organize, manage, and lead the project team, including the identification of roles, responsibilities, required skills, and reporting relationships

Human Resources

Ensure timely and appropriate planning, collection, creation, distribution, storage, retrieval, management, control, monitoring and disposition of project information

Communication

Identify and assess risks, plan responses, and control risk to increase the likelihood and impact of positive events and decrease the likelihood and impact of negative events on the project

Risk

Purchase or acquire and control products, services, or results needed from outside the project teamProcurement

Identify people, groups, or organizations that could impact or be impacted by the project; analyze expectations, and develop strategies to engage stakeholders in decisions and activities

Stakeholders

Knowledge Areas and Process Groups

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Activity within each knowledge area is applied based on the appropriate process group.

Process Groups

Knowledge Areas

(Below)Initiating Planning Executing

Monitoring & Controlling Closing

Integration Applicable Applicable Applicable Applicable Applicable

Scope Applicable Applicable

Time Applicable Applicable

Cost Applicable Applicable

Quality Applicable Applicable Applicable

Human Resources Applicable Applicable

Communication Applicable Applicable Applicable

Risk Applicable Applicable

Procurement Applicable Applicable Applicable Applicable

Stakeholders Applicable Applicable Applicable Applicable

Each shaded intersection has defined activities, inputs, tools & techniques, and outputs

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Current Drivers of Project Management

• Factors leading to the increased use of project management:–Compression of the product life cycle–Knowledge explosion–Triple bottom line (planet, people, profit)–Corporate downsizing–Increased customer focus–Small projects represent big problems

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Project Governance: An Integrative Approach

• Integration (or centralization) of project management provides senior management with:–An overview of all project management activities–A big picture of how organizational resources are used–A risk assessment of their portfolio of projects–A rough metric of the firm’s improvement in managing

projects relative to others in the industry–Linkages of senior management with actual project

execution management

Alignment of Projects with Organizational Strategy

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Alignment of Projects with Organizational Strategy

• Problems resulting from the uncoordinated project management systems include:–Projects that do not support the organization’s overall

strategic plan and goals.

–Independent managerial decisions that create internal imbalances, conflicts and confusion resulting in dissatisfied customers.

–Failure to prioritize projects results in the waste of resources on non-value-added activities/projects.

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Major Functions of Portfolio Management: The “Science” and “Art” of Project Management

• Oversee project selection.

• Monitor aggregate resource levels and skills.

• Encourage use of best practices.

• Balance projects in the portfolio in order to represent a risk level appropriate to the organization.

• Improve communication among all stakeholders.

• Create a total organization perspective that goes beyond silo thinking.

• Improve overall management of projects over time.

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What’s been covered in this Lecture?

1. Projects: An Introduction1. Definitions and Characteristics of Projects

2. Creations/Outcomes of Projects (Examples)

3. Project Life Cycle

2. Business Value of Project Management

3. Portfolio, Program and Project Management – their Relationship with each other

4. Project Management1. 5 Process Groups with 47 individual processes

2. 10 Knowledge Areas

5. Project Manager – Role, responsibilities and needed Skills

6. Drivers of Project Management

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Key Terms

Portfolio

Program

Project

Project life cycle

Project Manager

Project Management Professional (PMP)