The Project Management Institute Introduction / Chapter 1

A project is a one-time job with specific goals, a clear-cut starting and ending date, and – in most cases – a budget. PMBOK:A project is a temporary endeavor undertaken to create a unique product, service, or result. What is a Project?

A project has a set of objectives, a start and end, and a budget. The project objectives help delineate the start and finish of a project.

Program or Program Management Describes a group of projects related to a common initiative and managed in a cohesive fashion.

A project is a problem scheduled for solution. – Dr. Joseph M. Juran Whether an organization launches a project to solve a problem or fulfill an unmet need, it commits its time, money, and human resources to the project to achieve specific goals. One of the most important tasks early in the life of a project is determining what the project objectives are and making sure that everyone involved agrees on them.

The scope of a project is the extent of the work to be done.

The purpose of project management is to achieve the project objectives on time and within budget. Project management is an ongoing task of balancing the project scope with time, cost, and level of performance and quality.

Project Management is divided into five types of processes (Process Groups). Initiating Planning Executing Monitoring and Controlling Closing

Processes overlap and interact throughout a project or phase. Processes are described in terms of: Inputs (documents, plans, designs, etc.) Tools and Techniques (mechanisms applied to inputs) Outputs (documents, products, etc.)

Project Management is about communicating with people. Project managers have to lead, sometimes coax, and occasionally cajole a team of workers to successfully complete a project.

Project Management Provides a systematic approach – a process model – to guide project management activities. The process model corresponds with the typical lifecycle, from concept to completion of a typical project.

 Many tasks do not fit neatly into business-as- usual.  Need to assign responsibility and authority for achievement of organizational goals. Copyright 2007 John Wiley & Sons, Inc.1-12

 Unique  Specific Deliverable  Specific Due Date Copyright 2007 John Wiley & Sons, Inc.1-13

 Multidisciplinary  Complex  Conflict  Part of Programs Copyright 2007 John Wiley & Sons, Inc.1-14

“ A project is a unique temporary endeavor, with a set beginning and end ” PMI defines project management as “ the application of knowledge, skills, tools and techniques to a broad range of activities in order to meet the requirements of a particular project “ Project Management Institute, 2007 Copyright 2007 John Wiley & Sons, Inc.1-15

 Conflict Resolution  Creativity and Flexibility  Ability to Adjust to Change  Good Planning  Negotiation  win-win versus win-lose Copyright 2007 John Wiley & Sons, Inc.1-16

 The Sacred Cow- Special pet project advocated by President or Supervising Manager of Firm.  The Operating/Competitive Necessity  Comparative Benefits Copyright 2007 John Wiley & Sons, Inc.1-17

Copyright 2007 John Wiley & Sons, Inc.1-18

 Financial Assessment Methods  payback period  discounted cash flow  Scoring Methods  unweighted 0-1 factor method  weighted factor scoring method Copyright 2007 John Wiley & Sons, Inc.1-19

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Copyright 2007 John Wiley & Sons, Inc.1-21 where I 0 = the initial investment F t = the net cash flow in period t k = the required rate of return or hurdle rate

Copyright 2007 John Wiley & Sons, Inc.1-22 where S i = the total score of the i th project s ij = the score of the i th project on the j th criterion w j = the weight or importance of the j th criterion

 Time required to complete a project  Availability of key resources  Cost of resources  Timing of solutions to technological problems  Actions taken by competitors  Uncertainty cannot be eliminated, but if managed properly, it can be minimized. Copyright 2007 John Wiley & Sons, Inc.1-23

 Estimate probabilities or distributions associated with key parameters  Develop analytic or simulation model  Analyze distribution of outcomes generated by model Copyright 2007 John Wiley & Sons, Inc.1-24  Monte Carlo Analysis  Assumption Cells  Distribution Gallery  Forecast Cells

 Establish a Project Council  Identify Project Categories and Criteria  Collect Project Data  Assess Resource Availability  Reduce the Project and Criteria Set  Prioritize the Projects within Categories  Select the Projects to be Funded and Held in Reserve  Implement the Process Copyright 2007 John Wiley & Sons, Inc.1-25

Chapter 4—Project Integration Management 4.1 Develop Project Charter 4.2 Develop Project Management Plan 4.3.Direct and Manage Project Execution 4.4 Monitor and Control Project Work 4.5 Integrated Change Control 4.6 Close Project Chapter 5—Project Scope Management 5.1 Plan Scope Management 5.2 Collect Requirements 5.3 Define Scope 5.4 Create WBS 5.5 Verification Scope 5.6 Control Scope Chapter 6—Project Time Management 6.1 Plan Schedule Management 6.2 Define Activities 6.3 Sequence Activities 6.4 Estimating Activity Resources 6.5 Estimate Activity Durations 6.6 Develop Schedule 6.7 Control Schedule Chapter 7—Project Cost Management 7.1 Plan Cost Management 7.2 Estimate Costs 7.3 Determine Budget 7.4 Cost Control Chapter 8—Project Quality Management 8.1 Plan Quality Management 8.2 Perform Quality Assurance 8.3 Control Quality Section II—The Project Management Knowledge Areas, Chapter 9—Project Human Resource Management 9.1 Plan Human Resource Management 9.2 Acquire Project Team 9.3 Develop Project Team 9.4 Manage Project Team Chapter 10—Project Communications Management 10.1 Plan Communications Management 10.2 Manage Communications 10.3 Control Communications Chapter 11—Project Risk Management 11.1 Risk Management Planning 11.2 Identify Risks 11.3 Perform Qualitative Risk Analysis 11.4 Perform Quantitative Risk Analysis 11.5 Plan Risk Responses 11.6 Control Risks Chapter 12—Project Procurement Management 12.1 Plan Procurement Management 12.2 Conduct Procurements 12.3 Control Procurements 12.4 Close Procurements Chapter 13—Project Stakeholder Management 13.1 Identify Stakeholders 13.2 Plan Stakeholder Management 13.3 Manage Stakeholder Engagement 13.4 Control Stakeholder Engagement the PMBOK lists the Ten Knowledge Areas and the sub areas (PMBOK 5 th Edition - see Table 3-1, pg 61)

Time How long we have to accomplish the work Resources Money, people, materials, etc.. Performance The quality and quantity of the outcomes A Project’s Triple Constraints (They must be kept in balance for your project to succeed) Metaphor: Science - 3 requirements to start and maintain combustion: fuel, heat and oxygen. Remove any one of the three and the fire goes out. Add any one of the three to an existing fire and it gets larger.

 PMI  PMBOK  Stakeholders 8  Originator  Sponsor  Project Manager  Core Team  Extended Team  Process Control Documents and Checklists 31  Triple Constraints  Project Charter  Scope  Scope Creep  WBS  S.M.A.R.T (Specific, measurable, agreed upon, realistic, and time-bound)  Deliverables “any measurable, tangible, verifiable outcome, result, or item that must be produced to compete a project or part of a project.”  Milestones “a significant event in the project (determine progress toward completion)”