P ROJECT M ANAGEMENT, PMI A PPROACH (PMP) P ROJECT I NITIATION P HASE Sayed Ahmed BSc. Eng. in CSc. & Eng. (BUET, Bangladesh) MSc. in CSc. (University of Manitoba, Canada) Just E.T.C for Business, Education, Technology, and Entertainment Solutions Resources: Book: PMP in Depth by Paul Sanghera Book: The PMP Exam, How to Pass on Your First Try Project Management Courses in Undergraduate Study Work Experience

R EFERENCES & R ESOURCES Book: PMP in Depth by P. Sanghera Read on 2007 Book: The PMP Exam, How to Pass on Your First Try Read on 2007 A Project Management Course in Undergraduate Study Articles from the Internet Work Experience 2

L EARNING O BJECTIVES How Does a project start? How is a project/solution selected? Some Considerations Will a project succeed? Do we need to consider project stakeholders? How is a project formalized? Project Charter Project Scope Statement 3

O UR S ERVICES

H OW D OES A PROJECT START ? Business Requirements Opportunities Problem 5

H OW D OES A PROJECT START ? Business Requirements Example: The government requires airline companies to implement safety-management systems. A company needs to find out the success of their ecommerce web-site Opportunities To take advantage of an opportunity like technology breakthrough. Example many projects may be planned targeting iPhone or iPad Problem To reduce/eliminate a problem. Airport x faces 2/3 accidents every year, the airport authority may wish to perform a project to identify causes and develop solution 6

H OW IS A PROJECT /S OLUTION SELECTED ? A particular project may have different alternative solutions. A company may have multiple project plans and they need to select one of them. But How? Scoring Model Benefit contribution Economic models 7

H OW IS A PROJECT S OLUTION SELECTED ? Scoring Model Identify some matrix to find which project strategy is better or which project/solution will be more profitable Assign values for these parameters and select one that provides greater value Benefit contribution Use cost benefit analysis short term and long term cost benefit analysis 8

H OW IS A PROJECT S OLUTION SELECTED ? Economic models Benefit Cost Ratio Cash Flow Internal Return Rate Present Value and Net Present Value Opportunity Cost Discounted Cash Flow Return on Investment 9

S OME C ONSIDERATIONS Will a project succeed? There are many mathematical models to justify/predict the success of a project Do we need to consider project stakeholders? Yes. Because the project may benefit some people and may cause disadvantages to some people. Project managers need to manage and convince both of the groups How is a project formalized? A project charter is developed to present the business needs and the outcome. It is just a document that is reviewed before (or for) project authorization 10

P ROJECT C HARTER Input to Developing the project Charter Contract Statement of Work Enterprise environmental factors Organizational process assets 11

P ROJECT C HARTER Tools for Developing the project Charter Project Selection Methods Project Management Methodology Project management information systems Expert Judgment 12

P ROJECT C HARTER Output of Developing the project Charter Project Justification Project description Project requirements Assumptions High level schedule and milestones Budget Proposed project manager 13

P ROJECT S COPE S TATEMENT Preliminary Project Scope Statement After a project charter is authorized A Preliminary Project Scope Statement may need to be developed It may be discussed with the project stakeholders to facilitate project success Inputs to Developing Project Scope Statement Similar to the inputs to Developing the project Charter Tools and Techniques Project Management Methodology Project Management Information System 14

P ROJECT S COPE S TATEMENT Preliminary Project Scope Statement lists Objectives The product Requirements of the product Project boundaries Initial work breakdown structure Schedule Team Risks Cost estimate 15