Basic Project Management Qc Session1

Basic Project ManagementIntroduction and Overview of

Project Management

3/30/2010Course: CP785/MW22 --Session1 1

Prepared by:

Anthony Bowen, CTC, MPA,MPM,PME,CIPM

The U.S. spends $2.3 trillion on projects every

year, an amount equal to one‐quarter of the

nation's gross domestic product.

The world as a whole spends nearly $10 trillion of

its $40.7 trillion gross product on projects of all

kinds.

More than sixteen million people regard project

management as their profession.¹ Source PMI

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Project Management Statistics

The average compensation for project management practitioners for U.S. practitioners is $101,505 - PMI Project Management Salary Survey-Fourth Edition

In fact, there is a growing shortage of project talent as organizations have begun to recognize that project managers can improve business performance in any industry. According to a study published in October 2008 by the Anderson Economic Group, an average of 1.2 million project management positions will need to be filled each year through 2016. (Source PMI)

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Project Management Job Market

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Why Project Management ?

Project Management is an in-demand skill set and one of the fastest growing professional disciplines in North America. Project Management breaks down the chaos of an overwhelming workload into manageable elements - scope, time, cost, quality, human resources, communication, risk, procurement, and integration of projects.

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Project Management Certification

PMI provides certification as a Project Management Professional (PMP)

A PMP has documented sufficient project experience (3 years), agreed to follow a code of ethics, and passed the PMP exam◦ (200 questions in 4 hours)

More on certification found in Appendix C

Copyright © 2010 Pearson

Education, Inc. Publishing as

Prentice Hall

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Other PM organizations

Although PMI is the largest professional project management society it is not alone. There are several others that are growing as well such as:

• the International Project Management Association (IPMA) and

• the Association of Project Management’s (APM) PRojects IN Controlled Environments (PRINCE2) methodology

• The American Academy of Project Management (AAPM) *AAPM -MPM Master Project Manager ™ Designation is the only Project Management Credential and certification that requires accredited college degree education.



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Project Management Institute - www.pmi.org◦ CAPM – Certified Associate in Project Management High School Diploma & 23 Hours of PM Education

(everyone qualifies)

◦ PMP – Project Management Professional

Education: High School Diploma & 5 years Project Management Experience + 35 hours Project Management Education Certificate

OR

Bachelor’s Degree / global equivalent & 3 Years Project management Experience + 35 hours Project Management Education (QC)

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Project Management Institute (PMI) Certification

http://www.pmi.org/

http://www.pmi.org/

CAPM Candidates are responsible forindividual project tasks in their area of expertise (e.g., finance,marketing, legal, customer care,market research, fulfillment,processing). The responsibility doesnot need to be industry specific, butmust be relevant across manyfunctional areas and industries.

PMP - Candidates are responsible for all aspects of individual projects for the life of the project.

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What do CAPM /PMP candidates do?

Certifications with American Academy of Project Management (AAPM) ◦ www.aapm.info (MPM,CIPM,PME)◦ MPM - Master Project Manager - The MPM ™ is the world's premier

graduate masters certification for project managers. This credential is for college educated professionals who manage teams, departments, and employees. This designation is a project management certification designed for senior project managers and project directors. This is the Graduate Gold Standard of Project Management.

PME - Project Management E-Business - International Charter Certification involves many specialized skills including: management, leadership, international law, marketing/SEO, ecommerce and IT concepts.

CIPM - Certified International Project Manager - The Original International Charter Designation is designed for project managers and project leaders. This is the International Project Managers Credential and requires multi-national knowledge, training and skill sets

(source) http://www.certifiedprojectmanager.org

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American Academy of Project Management (AAPM)

http://www.aapm.info/

http://www.certifiedprojectmanager.org/

http://www.certifiedprojectmanager.org/

If you have 3 years of Project Management Experience and PM Training, you may apply for MPM™ Master Project Manager, CIPM ™ Certified International Project Manager ™ or PME ™ Project Manager E-Business ™ Board Certification. If you have a masters degree or qualified Project Management training or experience, you can apply for an exam executive waiver

A 4 year Degree and 3 years PM Experience

A Masters Degree and 1 year PM Experience◦ & Graduate from an AAPM Approved Certificate Program

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Requirements for AAPM

Oct. 2009 - AApM Alliance - City University of New York Queens College - This week, the AAPM © USA Board has formerly established new East and West Coast Chapters in New York and California. At the Queens College and City College New York City, the University of California in Silicon Valley, and the Thomas Jefferson School of Law Graduate Program in San Diego. Moreover, the West Indies and Singapore Societies are also licensed. With new representative offices in India, China, Cairo, New York, Silicon Valley and Latin America, AAPM is the first to provide graduate e-Business and Project Management Certification Standards in the world with over 10 years of Global Presence online.

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Queens Program Approved by AAPM

http://www.qc.cuny.edu/Pages/default.aspx

http://www.reuters.com/article/idUS217942+22-Jan-2009+BW20090122

Queens College is an approved provider program for Project Management Certification by PMI.https://www.pmi.org/CCRS/ProviderDetails.aspx

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Queens College a PMI approved program for Project Management

https://www.pmi.org/CCRS/ProviderDetails.aspx

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Project Management Knowledge Continues to Grow and Mature

The PMBOK Guide – 2000 Edition is an ANSI standard

Released end of `04 - PMBOK 3rd Edition

Just released A Guide to the PMBOK 4th

edition

PMI’s certification department earned ISO 9000 certification

Hundreds of new books, articles, and presentations related to project management have been written in recent years



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Growth in PMPs Certifications, 1993 – 2008

Copyright © 2010 Pearson Education,

Inc. Publishing as Prentice Hall

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The PMBOK

The PMI Project Management Body of Knowledge framework used for the text is structured around:

• five process groups which are made up of

• component processes consisting of tools, techniques, and outcomes organized within

• nine knowledge areas



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A PROJECT is a complex series of non-routine tasks directed to meet a specific one-time goal. The PROJECT MANAGER works to balance project scope, the time available to carry out the project, and the budget available for the project.

A Temporary Endeavor Undertaken to Deliver aunique Product or Service. Such as:◦ Booking Engine◦ Website◦ Database System◦ Write a Book◦ Build a bridge

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What is a Project ?

© 2008 Prentice Hall

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Major Project Management Achievements

Great pyramids of Egypt

Pacific Railroad

Hoover Dam

Manhattan Project

Space program



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Additional Definitions

A project is a unique venture with a beginning and an end, conducted by people to meet established goals within parameters of cost, schedule and quality.Buchanan & Boddy 92

Projects are goal-oriented, involve the coordinated undertaking of interrelated activities, are of finite duration, and are all, to a degree unique. Frame 95

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What Is a Project? Key characteristics Key Characteristics:

◦ Temporary◦ Unique◦ Progressive Elaboration◦ Single unique purpose



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Projects Are Progressively Elaborated

Refers to the idea that execution of the project occurs in steps (phases) or small increments, adding features and definition until the final objective is achieved

Concept applies to the scope, time, and cost of the project



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What Is a Project, continued

Secondary Characteristics:◦ Each project must have a primary sponsor or

champion◦ Projects usually cut across organizational lines

requiring resources from several different sources◦ They must do something, deliver something of

value



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•Unique Purpose

•Temporary

•Require Resources From Various Areas

•Has a Primary Sponsor and/or Customer

•Involves Uncertainty

Never been done before

Must contain a well-defined purpose

Because each project is unique, creates uncertainty and risk

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Attributes of a Project



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Introduction

Examples of projects◦ Split the atom

◦ Chunnel between England and France

◦ Introduce Windows Vista

◦ Disneyland’s Expedition Everest

―Projects, rather than repetitive tasks, are now the basis for most value-added in business‖

-Tom Peters



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Elements of Projects

Complex, one-time processes

Limited by budget, schedule, and resources

Developed to resolve a clear goal or set of

goals

Customer-focused



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General Project Characteristics(1/2)

Ad-hoc endeavors with a clear life cycle

Building blocks in the design and execution of organizational strategies

Responsible for the newest and most improved products, services, and organizational processes

Provide a philosophy and strategy for the management of change



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General Project Characteristics (2/2)

Entail crossing functional and organization boundaries

Traditional management functions of planning, organizing, motivating, directing, and controlling apply

Principal outcomes are the satisfaction of customerrequirements within technical, cost, and scheduleconstraints

Terminated upon successful completion

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Features of Project & Process

Novel: has not been done before, not in exactly the same way.

May be managed across divisions or directorates.

Some key risks involved are not well understood.

Value to the organization is by delivering the project on time and on budget.

•PROJECT Projects, in their purest form, create entirely new processes. Creating a new process necessarily involves doing new things.

Repeated continually: has been done before, will be done again.

Managed by a single division or department.

Most risks involved are well understood.

Value to the organization is created by continuous improvement of the process.

•PROCESS Procedures that get repeated frequently are usually refined through experience to the point where they are unlikely to fail catastrophically.



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Process & Project Management (Table 1.1)

Process

1. Repeat process or product

2. Several objectives

3. Ongoing

4. People are homogeneous

5. Systems in place to integrate

efforts

6. Performance, cost, & time known

7. Part of the line organization

8. Bastions of established practice

9. Supports status quo

Project

1. New process or product

2. One objective

3. One shot – limited life

4. More heterogeneous

5. Systems must be created to

integrate efforts

6. Performance, cost & time less

certain

7. Outside of line organization

8. Violates established practice

9. Upsets status quo



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Project Success Rates

Software & hardware projects fail at a 65% rate

Over half of all IT projects become runaways

Up to 75% of all software projects are cancelled

Only 2.5% of global businesses achieve 100% project success

Average success of business-critical application development projects is 35%.



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Why are Projects Important?

1. Shortened product life cycles

2. Narrow product launch windows

3. Increasingly complex and technical products

4. Emergence of global markets

5. Economic period marked by low inflation

One of the main reasons why projects fail is that they were not identified as being projects and so were not managed as projects. Understanding what projects are and knowing their features and how they differ from processes can help to reduce the amount of waste and risk in your organization.

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Why Project fail?


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Top Five Causes of Project Failure(OASIG Study)

1. Lack of attention to human and organizational factors

2. Poor project management

3. Poor articulation of user requirements

4. Inadequate attention to business needs and goals

5. Failure to involve users appropriately


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2004 Study by Wallace & Keil

1. Lack of executive support

2. Lack of user involvement

3. Inexperienced project manager

4. Inexperienced team members

5. Unclear business objectives

6. Unreliable estimates

7. Lack of effective project management methodology

8. New software infrastructure

9. Unstable organizational environment

10. Unreliable outside suppliers

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What is Project Management ?

Project management is "The application of knowledge, skills, tools, and techniques to project activities in order to meet project requirements"²

Project Management involves a series of activities - and a logical path to success.

Source - ²PMI


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What is Project Management?

The application of knowledge, skills, tools, and techniques to project activities in order to meet project requirements.

Involves five process groups:

The Application Of: ◦ Knowledge

◦ Skills

◦ Methodology

◦ Tools

◦ Techniques

◦ Templates

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Project Management Essentials


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PMBOK Knowledge Areas


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Project Management Methodology

Initiate – potential projects are identified and evaluated in terms of importance to the organization

Plan – scope, time, cost and risk management planning takes place

Execute – project plan is followed

Control – project performance is measured against the project plan

Close – final paper work completed and sign off by all stakeholders


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The Approach to Learning Project Management

Process Focus

Team Focus

Technology Focus

PM Software

Group Support Technologies

Knowledge Management and Organizational Memory Systems

Global Focus

PM Professional Focus

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Importance of Project Management

Due to the size, complexity, and number of information technology (IT) projects, organizations face ever-increasing challenges

Global U.S. government spending topped $150 billion in 2007

Forrester Research estimates that global IT spending—purchases of computers, software, and services by companies and governments—will drop by 3 percent in 2009, to $1.66 trillion



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Importance of Project Management

Forrester Research estimates that about 20 percent of current IT budgets are going into project development

Gartner ―In a worst case scenario, our research indicates an IT spending increase of 2.3 percent in 2009, down from our earlier projection of 5.8 percent. Developed economies, especially the United States and western Europe, will be the worst affected, but emerging regions will not be immune. Europe will experience negative growth in 2009; the United States and Japan will be flat.‖



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IT Projects Are Different Traditionally high turnover rates of IT workers Level of uniqueness and complexity of each

project due to the rapid changes in technology

Software is hard to visualize by the developer let alone the customer

Difficulty in getting accurate customer requirements

Rate of change in requirements

Difficulty in testing all the possible states of software

Constant training needed to keep team members current with the technology



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IT Projects Are Different



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Engineering/

Construction

Information

TechnologyCategory

Requirement Changes

Source of Changes

Requirements

Uniqueness

Resources

Implementation

Testing

Slow, incremental

Known, predictable

Explicit plan

Higher commonality

Stable

Structured, controlled

Defined, measurable

Rapid, unplanned

Many times not known

Often ambiguous

Low commonality

High turnover rates

Often chaotic

Difficult test all options

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Advantages of Using Formal Project Management Practices

Improvement in customer satisfaction

Better cost performance, higher return on investment

Better schedule performance, better allocation of time commitments and better utilization of resources, higher productivity

Increased quality reducing re-work

Increase in delivering required features

Will make everyone happier (stakeholders, team members, management…)



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History of Project Management

Modern project management began with the Manhattan Project, which the U.S. military led to develop the atomic bomb

In 1917 Henry Gantt developed the Gantt chart as a tool for scheduling work in job shops

In 1958, the Navy developed PERT charts

In the 1970s, the military began using project management software, as did the construction industry

By the 1990s, virtually every industry was using some form of project management



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Project Management is the discipline of organizing and managing resources (i.e. human, financial & material) in such a way that a project is completed within defined scope, quality, time and cost constraints.◦ The first challenge of project management is to

make sure that a project is delivered within defined constraints.

◦ The second, more ambitious, challenge is the optimized allocation and integration of inputs needed to meet pre-defined objectives.

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Project Management Simplified

Include: •Project Charter •Scope Statement •The Work Plan •Gantt Charts •Network Diagrams •Critical Path Analysis •Cost Estimates •Earned Value Management

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PM Tools and Techniques


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Various Project Management Tools/Techniques Gantt Chart

◦ Tool that can be used to plan and track project activities

Critical Path Method (CPM)◦ A method used for determining the sequence of task activities

that directly affect the completion of a project

Program Evaluation and Review Technique (PERT)◦ A technique that uses optimistic, pessimistic, and realistic time to

calculate the expected time for a particular task

Microsoft Project◦ Most widely used project management software◦ http://office.microsoft.com/en-us/project/default.aspx

Application Service Provider (ASP) software◦ Web hosted project management software

Industry-Specific software◦ Software which addresses a specific industry or environment

http://office.microsoft.com/en-us/project/default.aspx



Include: ◦ Core Knowledge Areas

◦ Core Processes

◦ Facilitating Processes

◦ Life Cycle Processes

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Project Management Foundation

The project manager is focused on making their project succeed; delivering the project is all, and if the project does not deliver the project then they have failed.

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Project Manager

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Project Manager Skills

Soft skills:◦ Leadership◦ Team building◦ Negotiation◦ Conflict management◦ Organization for self

and others◦ Communication both

oral and written to both technical and non-technical audiences

◦ Change management◦ Active listening



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Technical Skills: Project Management

software Level of

understanding of the technology being used in the project (software, hardware, network, etc.)

Basic knowledge of the business

Cost estimating and budgeting

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Six Basic Functions of Successful PM’s

1. manage project scope – make sure the team works on what is needed for the project and nothing else

2. manage human resources – the team must work together, this doesn’t just happen it takes a directed effort

3. manage communications – this occurs at many levels, teammates, customers, managers, vendors, and others

4. manage schedule – must keep people on schedule delivering work on time

5. manage quality – need to make sure that all work performed meets with customer expected levels of quality

6. manage costs – must keep an eye on the budget to make sure all the work can be done and not exceed the allocated budget



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A Project Manager Manages Projects by:

Setting clear and achievable objectives

Identifying requirements

Adapting the project to the various concerns of the stakeholders

Balancing the demands of the triple constraint



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Every Project is Constrained in Different Ways◦ Scope Goals:

What is the Project Trying to Accomplish?

◦ Time Goals:

How Long Should it Take to Complete?

◦ Cost Goals:

What Should it Cost?

It is the Project Manager's Duty to Balance These Three Often Competing Goals

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The Triple Constraint

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Project Budget, Schedule, & Scope

Goals & Objectives

The work required to

complete them.

• The Timing of Sequence of Tasks

•Task

•Task Dependencies

•Duration

•Constraints

• Budget

•People

•Equipment

•Material

Scope Mgmt.

Schedule

Budget

Cost /

Resources

Triple

Constraint

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The Triple Constraint (figure 1-4)



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Triple Constraint

Every project is constrained by a list of customer-requested requirements (scope), the amount of time available to produce the system in support of the requirements (time), and the limit of money available (cost)

Every project is constrained differently, according to the goals of the system owner (sponsor) and the project team



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Triple Constraint Trade-offs

Reducing time allowed will increase cost (especially if overtime is required) and may reduce the scope (functions and features) of the system

Reducing costs (cutting the budget) will increase time (delay schedule) and may reduce the scope (functions and features) of the system

Increasing scope (adding features) will certainly increase time and/or cost

Reducing scope may reduce time and cost (and it may also negatively affect quality)



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Stakeholders Are the People Involved in or Affected By Project Activities

Stakeholders Include◦ The Project Sponsor and Project Team

◦ Support Staff

◦ Customers

◦ Users

◦ Suppliers

◦ Opponents to the Project

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Project Stakeholders

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Interacting Process Groups

Figure 3-3 demonstrates how process groups exist within each phase of an iterative project

The initiating process group is the process that begins the project as well as each phase. Each phase consists of all five process groups interacting over time

Each phase as well as the entire project ends with the closing process. As each phase ends, the closing process reviews what was accomplished in the previous phase and what needs to be done or redone in the next phase



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Project Life Cycle



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Project Life Cycles

Man Hours

Conceptualization Planning Execution Termination

Fig 1.3 Project Life Cycle Stages



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Project Life Cycles

Conceptualization - the development of the initial goal and technical specifications.

Planning – all detailed specifications, schedules, schematics, and plans are developed

Execution – the actual ―work‖ of the project is performed

Termination – project is transferred to the customer, resources reassigned, project is closed out.

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Process Groups Initiating processes – authorizing the

beginning or ending of a project or phase Planning processes – ensuring that the

objectives of the project are achieved in the most appropriate way

Executing processes – coordinating all resources (people and material) during the implementation of the project plan

Controlling processes – monitoring of project variances from what was planned to actual progress

Closing processes – formal acceptance of the project or a phase and updating of the project information base with lessons learned



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Process Groups and Knowledge Areas

Figure 3-1

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Process Groups Overlap in Time



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Process Groups Interacting in a Phase



Figure 3-3

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Process Groups

Process groups supply a roadmap to follow, and the knowledge areas describe the methods (for example, car, plane, bus) of how to get to our destination, which is project success



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Project Life Cycles and Their Effects

ConceptualizationPlanning Execution Termination

Uncertainty

Client Interest

Project Stake

Creativity

Resources

Fig 1.4



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Six Criteria for IT Project Success

System quality

Information quality

Use

User satisfaction

Individual Impact

Organizational impact

Initiation - Define the Project ◦ The Initiating stage of project management includes

examining the strategic fit for a proposed project. Before beginning a new project, an organization must determine that the project fits in with its strategic goals. Understanding the organization’s goals can help executives identify certain proposed projects focusing on mission-critical activities as high-priority, and other projects peripheral to organization goals as lower priority. During the Initiating stage, an executive sponsor should be identified. A high-level evaluation of the project’s business case should be developed, along with project limitations and technical and financial requirements. A project manager should be identified and a placeholder project plan set up in Microsoft Office Project 2003, Microsoft Project 2002, or Microsoft Project 2000. Source: MS Project Quick Reference Guide

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PLC Initiation Phase

Link a Project to An Underlying Business Need

Analyze and Understand the Stakeholders

Build the Business Case

Identify Constraints

Document Assumptions

Develop a Preliminary Scope Statement

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Project Initiation

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Project Initiation



Planning – Create the Plan & Assign Resources

◦ The Planning stage devises a workable scheme to accomplish the project’s intended goals and outcomes. In the Planning stage, you identify the project’s milestones, deliverables, and tasks. This plan can be your work breakdown structure (WBS). You develop and refine the schedule, and identify the resources needed to implement the project. Source: MS Project Quick Reference Guide

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PLC – Planning Phase

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Project Planning



The Activities:

•Develop a Work Breakdown Structure (WBS)

•Estimate Resource Requirements◦ Personnel

◦ Time Line

◦ Budget

•Determine the Milestones

•Develop the Work‐plan

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Project Planning

Identify Risk◦ Assess

◦ Quantify

◦ Manage

Mitigation Strategies

Contingency Planning

Formal Change Control Processes

Managing Organizational Change

Communications

Expectations

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Structured Project Management

Execution - Update and keep track

Controlling – Communicate & Report◦ The Executing/Controlling stage coordinates people

and other resources to carry out the plan as defined in the project plan. The deliverables in this stage focus on managing change, entering schedule updates, tracking progress, and communicating project information. Each team member performs defined tasks within the project scope, ensuring their contribution to the project’s success. Source: MS Project Quick Reference Guide

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PLC – Execution Phase

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Project Execution



The Interrelationships◦ Planning

◦ Execution

◦ Control

The Constraints◦ Scope

◦ Schedule

◦ Cost

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Project Execution

Monitoring and Control◦ The Work

◦ The Time

◦ The Budget

◦ The Deliverables

◦ The Communications

◦ The Quality

◦ The Completion

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Project Control

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Project Monitoring & Control



Closing – close out the project◦ The Closing stage includes final details for

completing a project. Resolve any final project details, and obtain customer acceptance of final deliverables. Conduct a Lessons Learned session, recording information about areas for improvement and best practices. Make any final updates to the project plan. Finally, archive the project plan according to your organization’s project data archival guidelines. Source: MS Project Quick Reference Guide

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PLC – Closing Phase

Identify Stakeholder Requirements◦ Deliverables

◦ On‐going Communications

Define Roles and Responsibilities

Manage Expectations

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Managing Expectations

Gain Acceptance for Deliverables

Implement the Transition Plan

Assess the Lessons Learned

Archive Information

Close out the Team

Conclude the Project

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Project Closure

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Project Closeout



Projects are the means to bring about change faster than it would happen otherwise; projects accelerate change to beyond the rate at which the organization naturally evolves and changes.

Projects have a definite start and end point. (This contrasts with processes, which continue in a cycle.) Once a project reaches its objective, it finishes.

Projects have high risk. This is an outcome of accelerated change. Projects are about doing something new. Consequently, projects have to

develop new approaches and means of doing things. Projects come in all sizes and every variety of difficulty. Some can be

planned, managed and executed all by the same person working part time. Others require tens of thousands of people working on many sites doing many different things.

All of them share some common features and will benefit from some parts of the body of knowledge that has built up around project management in general, but which parts of the body of knowledge should be applied will vary according to the specifics of the project.

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Project Management Recap!

Better Control of Resources

Improved Customer Relations

Shorter Development Times

Lower Costs

Higher Quality and Increased Reliability

Higher Profit Margins

Improved Productivity

Better Internal Coordination

Higher Worker Morale

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Advantages of Project Management

The nine knowledge areas of project management are:

Project Integration Management.

Project Scope Management.

Project Time Management.

Project Cost Management.

Project Quality Management.

Project Human Resource Management.

Project Communication Management.

Project Risk Management.

Project Procurement Management.

Source : PMI Handbook

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Next Session: Introduction

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Knowledge Areas

The knowledge areas represent the body of knowledge that a project manager must have in order to consistently deliver successful projects that meet a customer’s expectations in terms of scope, time, cost, and quality of the project deliverables



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PMBOK Knowledge Areas

Integration Management

Scope Management

Time Management

Cost Management

Quality Management

Human Resources Management

Communications Management

Risk Management

Procurement Management



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Core Knowledge Areas: Objectives ◦ Scope

◦ Time

◦ Cost

◦ Quality

Facilitating Knowledge Areas: Achievement ◦ Human Resources

◦ Communication

◦ Risk

◦ Procurement

◦ Project Integration Management

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PM Core Knowledge Areas

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The PM Process Machine



Documents

Basic Project Management Qc Session1