Online PMP Training Material for PMP Exam on Project management framework and PM Fundamentals

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Understand Project Management

Framework

Chapter 2


Chapter 2Objectives

Fundamentals of Project Management Framework

Project & Project ManagementOperationProgram & Program ManagementPortfolio & Portfolio ManagementPMO & its connect across organization

Need for ProjectsRole of a Project ManagerQualities of a Project ManagerProduct Life Cycle & Project Life CycleEnterprise Environmental FactorsStakeholder & Relation to ProjectManagement by Objectives (MBO)Project Manager’s Radar WheelOrganizational Structure, Its Influence on ProjectsOrganizational Process AssetsProject Triple Constraints

This chapter entails one to understand the fundamentals of Project Management framework.

One will understand the need for projects – why they exist. Role of a Project Manager & qualities one need to exhibit in Project Manager’s role inside a Product Life Cycle & Project Life Cycle.

Factors such as Enterprise Environmental Factors, Stakeholders, MBO, Organizational Structure, Organizational Process assets, Project Triple Constraints which influence the overall Project existence and the way it works towards Project end outcome.


Quick Poll:Which of these terms have you heard earlier in life?

Time Opportunity / Scope Price / Cost Quality Communication Buy & Sell / Procurement Work Force / Labor / Resources / Human Resources Danger / Risk Customers / Clients / Stakeholders Putting it all together / Integration

3 M I N



What is a Project and Project management?

Project is a temporary endeavor with a beginning and end, undertaken to create a unique product, service or result. Example: Setup a Manufacturing line to produce goods.Project management is a science and art to apply the knowledge, skills, tools & techniques to activities to meet project requirements.

What is an Operation?Operation is an ongoing activity, to produce a similar “attribute & characteristic” products or a repetitive service. Example: Manufacturing line of a product.

What is a Program and Program management?

Program is a collection of projects managed /coordinated to acheive strategic objectives of program and gain benefits & control which would not be possible with management of them individually. Program management refers to the centralized coordinated effort to manage the program to meet the strategic objective.

What is a Portfolio and Portfolio management?

Portfolio refers to collection of programs and projects grouped to meet a common strategic objective.

Portfolio management is the management of portfolios to deliver the strategic objectives in line & prioritized with the Organization’s objectives.


DifferencesProjects

Unique ProductsOne time endeavourStart Date & End Date

OperationsSimilar ProductsOn-going endeavourNo defined timeframe

SimilaritiesPerformed by people & resourcesConstrained by limited availability of resourcesPlanned, executed, and controlled



What is a PMO?Project Management Office is a central management body to coordinate for all the projects defined under its umbrella. Role and authority of a PMO in each organization may vary considerably.

How are Projects, Program, Portfolio &

PMO connected?Across the large organizations, you will find often these interconnections of the entire functioning of the management as depicted here in the organizational chart.


Need for Projects Role of a Project Manager

Qualities of a Project ManagerWhy do we need Projects?

Projects are a means to acheive the discrete benefits, contribute to the benefits of program, to the objectives of portfolio, and to the strategic plan of organization.

What is the role of a Project Manager?

Project Manager is a person assigned and authorized by management to undertake a definitive, time bound, unique result oriented project with the organizational support to acheive its objectives. Project Manager’s prime role is to integrate project aspects and then to communicate across different stakeholders while execution of proactive steps to ensure the next steps are followed as planned originally.

What qualities should one have in that role?

Project Manager should be Knowledgeable, Performance Oriented and have Personal traits. Knowledge about the project management, application of right set of tools and techniques. Knowledgeable across the board of the end to end of the project management subject. Wider the knowledge, more chances of Project manager to apply them.Performance Oriented to apply the various tools & techniques to deliver or accomplish the results.Personal traits like how you behave, your attitude, leadership and general management abilities all applied to get the best outcome of the project.


Product Life Cycle & Project Life CycleDifferent phases of the project organized in a manner to have better control of project itself is usually referred to as Project life cycle. Normally each project tends to have an unique lifecycle inline to the organization’s nature of business & approach to business.

Idea Ramp up Growth Prolonged Maturity

Death /Decline

PP PP PP P P P P P P

Project

PRODUCT LIFE CYCLE

Initiating

Planning

Executing

Closure

Monitoring & Controlling

PROJECT LIFE CYCLE

Product life cycle is the arrangement of different phases of product delivery itself and may contain multiple projects to contribute to the delivery.Prolonged Maturity is desired as this would be the peak of the monetization period on the product.

Project life cycle across various natures of business can be called in different terms, however, all projects will predominantly follow the basic 5 stages as shown. Terms such as, Software Development Life Cycle, Financial Management Life Cycle, ICT Life Cycle, Investment Life Cycle and so on.


Enterprise Environmental FactorsStakeholder & Relation to ProjectManagement by Objectives (MBO)

What are Enterprise Environmental factors and how do they relate to a project?

Enterprise environmental factors are influences which alter the course of a project or its existence. For example, in pharmaceutical industry, the Regulatory clauses by the Regulator. The new clauses published by regulator will cause the project to change its course or direction towards its end objectives.

Who are Stakeholders and their relation to Project?

Stakeholders as the definition itself suggests, Stake + Holders. Anyone who has stake in the project would be a stakeholder. They can be internal or external to the organization. Because of the nature of holding stake in the project, stakeholders exert enormous influence over the course of the project direction. And success of any project depends on effective stakeholder management, PMI has introduced a separate chapter in the 5th edition of PMBOK to address the concept of Stakeholder Management.

What is MBO (Management by Objectives)?SMART Objectives with Corrective Actions which are defined & Supported extensively by Management.

SMART is defined as:Specific – Should be Specific as possible.Measureable – Should be Quantifiable.Attainable – Should be challenging yet achievable.Realistic – Should be practical and doable.Timely – Should be Time Bound.

Why does organization adopt the MBO philosophy?

Stakeholders as the definition itself suggests, Organizations with clearly defined, transparent objectives installed across the organizations tend to perform better. Increases dramatically the organization end focus to work upon and builds cohesiveness across the organization to achieve the desired outcome. This means a profitable and flourishing business.


Project Manager’s Radar Wheel

Scope

Schedule

Cost

Quality

HR

Communication

Risk

Procurement

Integration

Stakeholder

0

10

20

PM time expected in a Project Sample - PM time realistically spent

Project Manager role demands a lot and it is truely a multi-dimensional role as depcited in the PM’s Radar Wheel.

One has to be aware, PM has to manage his time effectively and spend it wisely without which the project is going to be in a struggling mode.

For illustrations purpose: A sample project has been outlined

where the project manager is supposed to meet 10 points on every front of the project dimension.

Although when you chart out the realistic project manager pull and push, it would never be a 10 point perfect scale.

Radar wheel depicts the realistic points where the project manager would have spent based on the needs of the project.

Project Manager’s time is critical for success of project!PM spends ~90% (majority) of time in communication.


Organizational Structure, Its Influence on ProjectsOrganizational Process Assets

How does an Organizational Structure influence on Projects and Project Management?

Organizational structure creates the environment on how the project team will function, communicate and ofcourse escalate or appraise a project situation.And this is a very important factor which can alter the course of the project and how project management is perceived or viewed in the organization. Let us understand this visually through the chart.In all cases of discussion, even for exam, unless explicitly mentioned, always go with

the assumption of Matrix organization.What are the organization’s process assets which influence Projects?

The list of such process assets could be enormous.

Here are some of the most frequenlty used assets.

Policies & ControlsStandards & GuidelinesTools & TemplatesChecklists & Criteria's


Projectized Organization

Org2: Dedicated Project Manager has complete Team working for Project Manager direct reporting lines

Org1 Client

Project Manager

Design Manager

Design Team Design Team

Development Manager

Development Team

Development Team

Quality Manager

Quality Team


Functional Organization

Org2: Functional Managers act like Project Manager. No Project Manager.

Org1 Client

Design Manager


Development Manager

Development Team

Development Team

Quality Manager

Quality Team


Balanced Matrix Organization

Org2: Project Manager & Functional Managers with equal Power

Org1 Client

Project Manager

Design Manager


Development Manager

Development Team

Development Team

Quality Manager

Quality Team


Weak Balanced Matrix Organization

Org2: Project Manager with Weak Power. Acts as Project Coordinator.

Org1 Client

Design Manager


Development Manager

Development Team

Development Team

Quality Manager

Quality Team

Project Coordinator from PMO


Strong Balanced Matrix Organization

Org2: Project Manager acts as Authority on Functional Managers. Has strong power.

Org1 Client

Project Manager

Design Manager


Development Manager

Development Team

Development Team

Quality Manager

Quality Team

Development Manager acts as Project Manager


Project Triple ConstraintsTime, Scope, Cost are marked on the corners of the triangle (project) representing intended constraints on Project are referred as triple constraint.

Any pull on one constraint in its own direction changes the dimensions of other two corners of triangle and alters project.

Quality is inherent to the project and goes accordingly with pull and push of triple constraints.

Triple Constraint also known as Iron Triangle.

Time

ScopeCost

Quality

Risk


Chapter 2 - Debrief


THIS BRINGS TO CHAPTER 2 COMPLETION.

From what we have understood so far is:

Fundamentals of Project Management Framework Project & Project Management Operation Program & Program Management Portfolio & Portfolio Management PMO & its connect across organization

Need for Projects Role of a Project Manager Qualities of a Project Manager Product Life Cycle & Project Life Cycle Enterprise Environmental Factors Stakeholder & Relation to Project Management by Objectives (MBO) Project Manager’s Radar Wheel Organizational Structure, Its Influence on Projects Organizational Process Assets Project Triple Constraints

Chapter 2


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Acknowledgements & Disclaimer

PMI, PMBOK, PMP, CAPM, PgMP, PMI-ACP, PMI-RMP, PMI-SP are registered marks of Project Management Institute, Inc.All registered trademarks, symbols, names are marks of their respective owners and acknowledged.

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Online PMP Training Material for PMP Exam on Project management framework and PM Fundamentals