Week 1-3 PM Book

Project Management Overview

  • Definition of Project

    • Temporary endeavor aimed to create a unique product, service, or result.

    • Distinction from ongoing operations: Projects have a defined beginning and end, whereas operations are continuous.

    • Historical examples:

    • Prehistoric hunting parties, pyramid construction, Apollo project to the moon.

Project Attributes

  • Temporary Nature

    • Projects have specific start and end dates.

    • Schedules are created to ensure timely completion.

    • Duration can vary from minutes to years.

  • Uniqueness

    • Projects create products or services that haven't existed before. Example: Each new car model by Ford is a unique project; day-to-day assembly is not.

  • Project vs. Operations

    • Projects focus on specific goals; operations are routine and repetitive tasks.

Project Characteristics

  • Goals and Objectives

    • Achievement of goals determines project completion.

    • Projects can end if goals are unattainable or the product/service is no longer needed.

Discussion of a Project Scenario

  • The VP of marketing proposes a project to set up kiosks for insurance services in grocery stores. Key characteristics to determine if it’s a project:

    • Uniqueness: Yes, since kiosks for this purpose do not exist.

    • Timeframe: Clearly defined as beginning immediately and ending by year-end.

    • Completion Criteria: Kiosks must be installed and operational to signify project completion.

    • Stakeholders: Defined expectations must be documented and compared to the finished product.

The Process of Project Management

  • Moving from idea to execution requires proper planning, rather than jumping straight to execution, to meet customer expectations.

  • Project Management Failure Rates: Over $250 billion spent annually in the U.S. on 175,000 IT projects; significant waste due to poor management.

  • Project Management Definition: The application of knowledge, skills, tools, and techniques to meet project requirements.

Competing Project Constraints

  • Six core project constraints: Cost, Scope, Quality, Risk, Resources, Time.

    • Cost: The budget approved for the project. Importance of balancing funding and spending.

    • Scope: Details what the project is trying to achieve, including all work and processes.

    • Quality: Adherence to standards required for the project’s products.

    • Risk: Potential external events that could negatively impact the project.

    • Resources: Personnel and materials needed for project completion.

    • Time: The timeframe to complete the project and importance of careful scheduling.

Triple Constraint

  • Original triangle of Time, Cost, Scope. Changes in one constraint affect the others.

  • Example of Balance: Increasing scope can increase cost and time disproportionately.

Project Management Expertise

  • Required skill areas for effective project management include:

    • Application knowledge relevant to the industry.

    • Understanding the project environment (social, cultural, and physical).

    • General management knowledge and skills (finance, human resources, time management).

    • Interpersonal skills (communication, negotiation, problem-solving, leadership).

Project Life Cycle Phases

  • Phases of project life cycle: Initiation, Planning, Implementation, Closing.

    1. Initiation Phase: Setting objectives, identifying problems, creating the business case, justifying feasibility.

    2. Planning Phase: Detailed development of the solution, identifying tasks and resources, scope management, risk management, creating the project budget.

    3. Implementation Phase: Executing the plan and performing the work, monitoring progress against the project plan. Use of status reports and maintaining control of project direction.

    4. Closing Phase: Deliverables are released, termination of contracts, documentation is finalized, and lessons learned are reviewed.

Project Management Framework Overview

  • The development of standards and practices in project management through organizations like PMI and IPMA.

  • PMBOK as a foundational guide with ten knowledge areas:

    1. Managing Integration

    2. Managing Scope

    3. Managing Time/Schedule

    4. Managing Costs

    5. Managing Quality

    6. Managing Human Resources

    7. Managing Communication

    8. Managing Risk

    9. Managing Procurement

    10. Managing Stakeholders.

Project Initiation

  • Identifying business problems or opportunities, creating a business case, and getting sponsorship.

  • Importance of clarity and thoroughness in documenting objectives to avoid misunderstandings in the project scope.

Tools for Decision Making

  • Weighted Decision Matrix for evaluating multiple options based on defined criteria.

  • Financial Measures: Net present value (NPV), return on investment (ROI), and payback analysis as indicators of project feasibility and potential success.

Project Charter Overview

  • The project charter as a foundational document outlining scope, objectives, stakeholders, and project manager authority.

  • Elements include the project name, objectives, scope, major deliverables, assumptions, risks, and acceptance criteria.

Stakeholder Management

  • Stakeholder Identification: Essential to define who has an interest or influence on the project.

  • Relationship Management: Building strong connections with stakeholders and communicating effectively can determine project success or failure.