Chapter 1 - Project Management Framework

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Project ManagementFramework

Author Pankaj Sharma

Project Management Program

Based onPMBOKGuide IV Edition

PMI, PMP, CAPM, PgMP, PMI-RMP, PMI-SP and PMBOK areregistered marks of Project Management Institute, Inc.


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After the completion of this chapter, the learner will

be able to:

Explain the PMBOK GuideProject Management Concepts

Explain why Projects Are Undertaken

Describe the Phases of the Project Life Cycle

Describe the five Project Management Process Groups

Name the Nine Knowledge Management Areas

Map the Process Groups and the Nine Knowledge Areas

Learning Objectives


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Project versus Operations

Project Management

Project managers skill set

Project life cycle

Project stakeholders

Different types of organizations

Project, Program and Portfolio management

Project management processes

Project management knowledge areas

Intersection of processes and knowledge areas

Project Management Framework: Topics


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Definition as per PMBOK Guide

A project is a temporary endeavor undertaken to

create a unique product or service.

Definition of Project


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A temporary endeavor means that every project has adefinite beginning and end.

Unique means that the product or service or result isdifferent from other product or service or result.

Progressively elaborated - proceeding in steps

Project Definition


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Building a new office

Designing a new product or service

Creating an advertisement campaign

Creating a new process with a business unit Moving from one building to another

Designing a space vehicle

Examples of Project


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Differentiating between

Projects & Operations

Exercise 1: Projects vs Operation


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PROJECTS OPERATIONS

Temporary Ongoing

Unique Repetitive

Closes after attaining the

objectives

Objective is to sustain

business

Prototyping the new car

model

Assembly line production

Project vs Operation



Why Projects Fail ?

Lack of clearly defined purpose

Inexperienced project Managers

Poor estimation of duration and cost

Cultural and ethical misalignment

Poor requirements and scope management Lack of coordination of resources and activities

Poor communication

Inadequate planning of scope, schedule, resources, cost,

risk and quality Lack of progress and quality control



Project Management is the application of knowledge,

skills, tools and techniques to project activities to meet the

project requirements

Accomplished through the application and integration of

PM processes Initiating, Planning, Executing, Monitoring

and Controlling and Closing

Establishing clear project objectives and requirements

Balancing the competing demands of scope, time, cost

and quality

Manage uncertain events

What is Project Management?



Project Management Benefits



Project Constraints

Source: A Guide to the Project Management Body of Knowledge, Fourth Edition (PMBOK Guide) 2008 Project

Management Institute, Inc. All Rights Reserved.

Risk

Scope

Budget

Resources

Quality

Schedule



Projects are divided into phases

The project will have at least a beginning, intermediate andending phase

Number of phases depends on complexity and size of theproject

Reviews are conducted at the end of each phase to measure

performance Phase end reviews allows to decide if the project should

continue

The collection of phases is called project life cycle

The project life cycle defines the beginning and end of aproject

Fast tracking is running the project phases concurrently

Examples of phases:- Analysis, Design, Development, Testing

Typical Project Life Cycle



The completion of one or more deliverables marks the projectphase

Deliverables are reviewed and formally accepted by customer atphase end

Phase end reviews are also called phase exits, stage gates orkill points

Rolling wave planning summarizes the future phases at highlevel

Characteristics of Project Phase



Individuals and organizations involved in the project

Those who will be directly or indirectly impacted

Stakeholders should be identified throughout the project

They may have a positive or negative influence on the outcome

Stakeholder influence goes down as the project progresses

Project Stakeholders



Key stakeholders include:-

Project Manager

Customer / User

Performing organization Project team members

Project management team

Sponsor

Influencers

PMO

Project Stakeholders



Project Manager Skills

Communication Skills

Organizational and Planning skills

Budgeting Skills

Conflict Management Skills

Negotiation and Influencing Skills

Leadership Skills

Team Building and Motivating skills



Programs Collection of related projects

Controls are implemented and managed in a coordinated way Collective benefits are realized

Each project has a project manager

Projects share resources and depends on the outcomes of other projects

Portfolios

Collection of programs and projects Projects meet a specific business goal or objective

Includes weighing the value of each project against the portfolios strategic objective

Ensures efficient use of resources

Project Management Office [PMO]

Centralized units to oversee project and programs within the organization

Establishes and maintains the standards of project management methodologies

Support managers in planning, estimating, risk management and provide trainings

Project, Program & Portfolio Management



Functional OrganizationWeak Matrix

Organisation

Balanced Matrix

Organisation

Strong Matrix

Organisation

Projectized

Organisation

PMs Title Expediter/Cordinator Expediter/

Coordinator

Project Manager Project Manager Project Manager

Decision Making

Power

Functional manager Functional manager

plays a major role,

but PM will make

decisions

PM and the

Functional Manager

will have equal power

Project Manager Project Manager

Resources From within a Dept. Project members are

from different

departments

Project members are

from different

departments

Project members are

from different

departments

Project based only

Resource Allocation As needed Only 25% will be

assigned to the

projects

About 50% will be

assigned to the

projects

About 80% will be

assigned to the

projects

About 100% will be

assigned to the

projects

Resources Reports to Functional manager Functional manager Two manager (FM

and PM)

Project Manager Project Manager

PM Reports to Functional manager Functional manager Functional managerand his/her senior

manager

Company Seniormanager

Company seniormanager/ higher

authority

After Project

Completion

Team go back to their

Dept. (home)


Dept. (home)


Dept. (home)


Dept. (home)

No homemove to

different project or

get laid off

Organization Influence

Source: A Guide to the Project Management Body of Knowledge, Fourth Edition

(PMBOK Guide) 2008 Project Management Institute, Inc. All Rights Reserved.



Org. Type Advantages Disadvantages

Matrix Highly visible project objectives Not cost effective because of extra administrative

personnel

Better Project Manager control over

resources

More than ONE boss for project teams

Better coordination More complex to monitor and control

Team members maintain a home Higher potential for conflict and duplication of effort

and functional managers have different priorities

Functional Team members report to one supervisor

and clearly defined career paths

No career path in Project Management

Easier management specialists People place more emphasis on their functional

specialty to the determent of the project

Projectized Efficient project organization No Home when project is completed

More effective communication than

functional

Duplication of facilities and job functions

Loyalty to the project Lack of professionalism in disciplines and less efficient

use of resources

Organization Types Advantages & Disadvantages



Differentiating between Organization Types

Functional Vs Projectized

Exercise 2: Organization Types



Differentiating between Organization Types

Functional Vs Projectized Vs Matrix

Exercise 3: Organization Types


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Commitment Approach

Measure

Create

Accept

Project Management Process Groups

PlanningProcesses

ControllingProcesses

ExecutingProcesses

ClosingProcesses

InitiatingProcesses


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Initiating process group authorizes the project

Planning process group plans the course of action to achieveobjectives

Executing process group uses the resources to carry out project

tasks

Monitoring process group measures progress to identify variances

Closing process group formalizes product acceptance and closure



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Concept ofPLAN-DO-CHECK-ACT cycle

Determine what processes within the process groups are applicable

The Process Groups are not Project Phases

The result of one process becomes input to another



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Closing

Initiating

Planning

Executing

Monitoring

andControlling

Project Charter

Project ManagementPlan

DeliverablesRequested ChangesCorrective/ PreventiveActionDefect Repair

Change Requests, CorrectiveAction, Preventive Action,

Defect RepairForecastApproved DeliverablePerformance Reports

EnterpriseEnvironmental

Factors

OrganizationalProcess Assets

Sponsor/ProjectInitiator

OrganizationalProcess Assets(updates)



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Level

Of

Activity

Initiating

Processes

PlanningProcesses

ExecutingProcesses

Closing

Processes

ControllingProcesses

PhaseFinish

PhaseStart

Time

Project Management Process Groups Interaction

Source: A Guide to the Project Management Body of Knowledge, Fourth

Edition (PMBOK Guide) 2008 Project Management Institute, Inc. All

Rights Reserved.


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PM Process Mapping

Processes

Initiation Planning Execution Monitoring & Control Close OutKnowledgeAreas

Integration

Management Develop ProjectCharter

Develop Project ManagementPlan

Direct and ManageProject Execution

Monitor and Control

Project WorkPerform IntegratedChange Control

Close Project orPhase

ScopeManagement Collect Requirements

Scope DefinitionCreate WBS

Scope VerificationScope Control

TimeManagement

Activity DefinitionActivity SequencingActivity Resource EstimatingActivity Duration Estimating

Schedule Development

Schedule Control

CostManagement

Estimate CostsEstimate Budgets

Cost Control

QualityManagement

Quality PlanningPerform QualityAssurance

Perform Quality Control

HumanResource

ManagementHuman Resource Planning

Acquire Project TeamDevelop Project TeamManage Project Team

Manage Project Team

CommunicationManagement

Identify Stakeholders Communications Planning

InformationDistribution

Manage StakeholdersExpectation

Report Performance

RiskManagement

Risk Management PlanningRisk IdentificationQualitative Risk AnalysisQuantitative Risk AnalysisRisk Response Planning

Monitor & Control Risk

ProcurementManagement Plan Procurement Conduct Procurement

AdministerProcurements

CloseProcurement

Source: A Guide to the Project Management Body of Knowledge, Fourth Edition

(PMBOK Guide) 2008 Project Management Institute, Inc. All Rights Reserved.


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Conduct cost-benefit analysis

Determine and define the business needs and the project

scope

Know the project boundaries and constraints

Identify high level risks

Understand the required project organization structure

Estimate budget and resource requirements

Assign a project manager

Obtain the project charter approval Formally authorize to start a new project or phase

Initiating Process Group

l i


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Determine how you will plan and develop the project management plan

Develop the project requirements in detail and agree the final scope

Determine the required project activities and their sequencing

Develop schedule using estimated resources and costs

Agree what quality standards will be met by the project and how

Define how project staffing will be done

Establish the communication requirements and how it will be fulfilled

Identify what can go wrong and the plans to deal with them

Document what products or services will be acquired from outside theproject

Gain formal approval and buy-in from everybody involved in the project

Planning Process Group

i G


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Execute activities in the project plan

Procure required project resources Complete work packages

Document lessons learnt

Implement approved changes, corrective and preventive

actions Ensure processes are followed

Hold team building activities and boost morale and efficiency

Manage resource allocation and utilization

Hold progress review meetings and distribute progress reports Keep everyone focused on the project goals

Executing Process Group

M i i & C l P G


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Measure project performance using the documented technique

in the plan

Identify variances and recommend corrective actions to get back

on track

Approve changes, defect repair, corrective and preventive

actions

Resolve conflicts and issues

Manages changes to scope, time and cost

Perform impact analysis to approve or reject changes

Obtain formal acceptance of deliverables from the customer

Monitor the status of risks and identify new risks have emerged

Measure team member performance

Monitoring & Control Process Group

Cl i P G


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Confirm all project requirements are met

Obtain formal acceptance of product from the customer

Hand over the completed deliverables to the operations

team

Compile lessons learnt Measure customer satisfaction

Archive project data and information for future reference

Release resources

Closing Process Group

P j t I t ti M t


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Processes that integrates the different elements of project

management Coordinates the project work is done correctly and in the right

order

Ensures changes are properly controlled and managed

Comprises of the following processes:- Develop Project Charter

Develop Project Management Plan

Direct and Manage Project Execution

Monitor and Control Project Work

Perform Integrated Change Control

Close Project or Phase

Project Integration Management

P j t S M t


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Ensures project includes all of the work and only the work

required

Identifies, defines and controls the project work

Verifies that the deliverables meet the specified criteria

Comprises of the following five processes:-

Collect Requirements

Define Scope

Create WBS

Verify ScopeControl Scope

Project Scope Management

P j t Ti M t


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Processes concerning with the timely completion of the

project Determines the time and the order in which project work

will be done

Controlling to ensure everything gets done on time

Comprises of the following six processes:-Define Activities

Sequence Activities

Estimate Activity Resources

Estimate Activity Durations

Develop Schedule

Control Schedule

Project Time Management

P j t C t M t


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Processes to ensure the project stays within the

budget

Determines the project budget

Controls the changes to the project budget

Comprises of the following three processes:-

Estimate Costs

Determine Budget

Control Costs

Project Cost Management

P j t Q lit M g t


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Processes that ensures the project will satisfy the agreed

quality standards

Identifies the relevant standards and how they will be met

Assurance activities to ensure the agreed processes are

followed

Monitoring project results to determine compliance

Comprises the following three processes:-

Plan Quality

Perform Quality Assurance

Perform Quality Control

Project Quality Management

Project H man Reso rce Management


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Processes that organize and manage the project team

Identifies the required roles on the project

Obtains the human resources needed to complete the

work

Enhance competencies and performance

Comprises of the following four processes:-

Develop Human Resource Plan

Acquire Project Team

Develop Project TeamManage Project Team

Project Human Resource Management

Project Communication Management


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Processes to ensure timely distribution of project information

Determines the information needs of the project stakeholders

Makes the information available in timely manner

Collecting and distributing project performance information

Comprises of the following processes:-

Identify Stakeholders

Plan Communications

Distribute Information

Manage Stakeholder Expectations

Report Performance

Project Communication Management

Project Risk Management


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Processes to deal with the unexpected when it does

happen Identifying events that might affect the project

Developing plan and actions to deal with those event

Comprises of the following six processes:-

Plan Risk Management

Identify Risks

Perform Qualitative Risk Analysis

Perform Quantitative Risk Analysis

Plan Risk Responses

Monitor and Control Risks

Project Risk Management

Project Procurement Management


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Processes to purchase or acquire the products andservices

Selecting who will supply the required products and

services

Planning and administering the contracts

Comprises of the following processes:-

Plan Procurements

Conduct Procurements

Administer ProcurementsClose Procurements

Project Procurement Management

Professional Responsibility


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Covers legal, ethical and professional behavior of

a PMP

A PMP must follow the Project Management

Institute Code of Ethics and Professional Conduct

The responsibilities includes:-

Doing the right things

Making good choices

Keep learning and getting betterRespecting others culture

Professional Responsibility

Exercise 4: Process Group


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Map all the process groups and their correspondingprocesses, also mention the corresponding knowledge

areas

Exercise 4: Process Group

Project Management Framework


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Assessment Examination

Project Management Framework



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QUERIES

&

CLARIFICATIONS




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Next Session

Project Integration Management


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Chapter 1 - Project Management Framework