Chapter 2 Project Management Framework

Chapter 2 Project Management Framework
Project Management Frame Work, In this chapter we will talk about, Stake holders and how to manage them Different organizational structures Project Constraints Definition of a project and how it differs from a process Project Management Office (PMO) Definition of a Program Project and Product life cycles OPM3 and, The definition of management by objectives (MBO) PMP, CAPM, PgMP, PMI-SP , PMI-RMP, OPM3 and PMBOK are registered marks of Project Management Institute, Inc Inov8Solutions Inc – Quality Educational Services For Professionals 2-1

Project Management Framework Learning Objectives
At the conclusion of this chapter, you should be able to: 1. Define what is a project 2. Explain how a project is different from a process 3. Define what is project management 4. Explain the importance of stakeholders in project management 5. List the different types of organizations and the differences between them 6. Explain how a project lifecycle is different from a product lifecycle By the end of this chapter, you should be able to: 1. Define what is a project 2. Explain what differentiates a project from a process 3. Define what is project management 4. Explain why stakeholders are important in project management 5. List the different types of organizations and how they differ from each other 6. Explain the difference between a project lifecycle and product lifecycle These objectives are given to make you aware of the knowledge you must gain from the material being presented in the chapter in order to do well on the exam. There will be questions interspersed between different topics, as well as a set of questions at the end of the chapter. The purpose of these questions is to help you strengthen your grasp of key concepts. You are strongly encouraged to answer these questions seriously so that you may assess any gaps you might have in your knowledge and understanding. PMP, CAPM, PgMP, PMI-SP , PMI-RMP, OPM3 and PMBOK are registered marks of Project Management Institute, Inc Inov8Solutions Inc – Quality Educational Services For Professionals 2-2

Project Management Framework Key Concepts
What is the definition of a Project? Temporary endeavor with a beginning and an end Creates a unique product service or result Is progressively elaborated What is the definition of a Process? Daily routine work with no end Let us define what a “Project” is A project has the following characteristics It is a temporary endeavor with a beginning and an end It creates a unique product service or result It is progressively elaborated Now let us define a “Process” A “Process” is a daily routine work with no end. For example activities that are part of the company’s normal operating procedures such as Help desk activities etc. Let us take an example….If your boss walked into your office and said “The system is broken. Can you figure out what is wrong with it and fix it?” Would this be a project? Answer – No this would simply be a “routine” help desk activity as part of a company’s normal operating procedure for fixing a problem. PMP, CAPM, PgMP, PMI-SP , PMI-RMP, OPM3 and PMBOK are registered marks of Project Management Institute, Inc Inov8Solutions Inc – Quality Educational Services For Professionals 2-3

Project Management Framework Test your knowledge
Scenario 1: An assembly line for automobiles stops working. Management tells engineers to fix the problem. Is this a project? Follow this example and assess whether you understand the difference between a project and a process. In scenario 1, at a plant for an automobile manufacturing company, an assembly line experiences a technical glitch and stops working. Management instructs the company engineers to resolve the problem as soon as possible so that the assembly can be started again. This is not a project. The assembly of automobiles at an existing assembly line is operational work that is ongoing and repetitive. PMP, CAPM, PgMP, PMI-SP , PMI-RMP, OPM3 and PMBOK are registered marks of Project Management Institute, Inc Inov8Solutions Inc – Quality Educational Services For Professionals 2-4

Project Management Framework Test your knowledge
Scenario 2: Due to increased demand, a car company decides to build another assembly line at an existing plant. Is this a project? In scenario 2, the car company decides to build another assembly line in order to keep up with increasing demand for their vehicles. Is this a project? The answer is yes. Do you understand why this is a project and not a process. The construction of a new assembly line will be a project only until the assembly is complete. After that, once the assembly line begins to be used to assemble vehicles just like all other assembly lines at the plant, it will be an operation; it will be ongoing and repetitive. PMP, CAPM, PgMP, PMI-SP , PMI-RMP, OPM3 and PMBOK are registered marks of Project Management Institute, Inc Inov8Solutions Inc – Quality Educational Services For Professionals 2-5

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Key Concepts (cont…) Project Management Application of knowledge, skills, tools and techniques to project activities in order to meet or exceed stakeholder needs and expectations for a project Program A group of projects managed in a coordinated way Portfolio Management Collection of Projects or programs grouped together to meet strategic business objectives Note for Kamran: Can we have some animations showing high level process of the “Project Management” such as initiating, planning, executing, monitoring and controlling, and closing Let us now take a look at “Project Management” and understand what “Project Management” really is? It is the process of Application of knowledge, skills, tools and techniques to project activities in order to meet or exceed stakeholder needs and expectations for a project Project Management Institute (PMI) breaks Project Management into process groups and knowledge areas. The process groups follow the high level process of the “Project Management” such as initiating, planning, executing, monitoring and controlling, and closing. These will be covered in more detail in the upcoming chapters. The knowledge areas are integration, scope, time, cost, quality, human resource, communications, stakeholder, risk, and procurement management. These will be covered in more detail in the upcoming chapters. Let us now define what a program is? A program is a group of projects managed in a coordinated way. By grouping related projects together into a program, an organization can help achieve decreased risk, economies of scale, and improved management. Portfolio Management Is Collection of Projects or programs grouped together to meet strategic business objectives The programs and projects that make up the portfolio may not be related other than the fact that they are helping to achieve a common business strategic goal. Project Management Office (PMO) PMO is a department which centralizes the management of the projects PMO provides the policies, methodologies, and templates for managing the projects with an organization Additionally PMO provides support and guidance to the Project Managers on how to manage and execute projects. A PMO can have one of several different structures, such as: Supportive – in this setup, the PMO plays supporting role by supplying templates, access to tools and other types of information needed by project managers. The PMO has little control in a Supportive role. Controlling – Controlling PMOs not only provide support to projects, but also require compliance to various policies, procedures, and standards. The PMO has more control in this model than Supportive Directive – in this role, the PMO directly manages the projects. The degree of control exerted by the PMO is the highest in a Directive role. PMP, CAPM, PgMP, PMI-SP , PMI-RMP, OPM3 and PMBOK are registered marks of Project Management Institute, Inc Inov8Solutions Inc – Quality Educational Services For Professionals 2-6

Review Quiz All of the following are the characteristics of a project EXCEPT? It is temporary It has definite beginning and end It has interrelated activates It repeats itself every month The correct answer is D. Explanation – “It repeats itself every month” implies that the whole project repeats itself every month which is the characterictics of a “Process” NOT a “Project” PMP, CAPM, PgMP, PMI-SP , PMI-RMP, OPM3 and PMBOK are registered marks of Project Management Institute, Inc Inov8Solutions Inc – Quality Educational Services For Professionals 2-7

Review Quiz A process is: Temporary It has definite beginning and end Ongoing and repetitive Creates a unique product The correct answer is C. Explanation – A process is operational work, i.e. it is ongoing and repetitive. PMP, CAPM, PgMP, PMI-SP , PMI-RMP, OPM3 and PMBOK are registered marks of Project Management Institute, Inc Inov8Solutions Inc – Quality Educational Services For Professionals 2-8

Review Quiz What is a Program? An initiative setup by the management A means to gain benefits and control of related projects A group of unrelated projects managed in a coordinated way A government regulation The correct Answer B A “Program” is a group of related projects managed in a coordinated way. This was a trick question. Choice “C” is not a correct choice because it has a word “unrelated” in it. Remember a “Program” is a group of related projects managed in a coordinated way. PMP, CAPM, PgMP, PMI-SP , PMI-RMP, OPM3 and PMBOK are registered marks of Project Management Institute, Inc Inov8Solutions Inc – Quality Educational Services For Professionals 2-9

Project Objectives Management by objectives: Management philosophy has 3 steps - Establish unambiguous and realistic objectives Periodically evaluate if objectives are being met Implement corrective action Constraints :Constraints are used to help evaluate competing demands among: Scope Quality Schedule Budget Resources Risk Change in one will most often cause a change in at least one or the other OPM3® PMI’s organizational project management maturity model Model designed to help organizations determine their level of maturity in project management Management by Objectives (MBO) MBO is a management philosophy with the following three steps Establish unambiguous and realistic objectives Periodically evaluate whether objectives are being met Implement corrective actions What are the Constraints? Constraints are used to help evaluate competing demands among: Scope Quality Schedule Budget Resources Risk Change in one will most often cause a change in at least one or the other What is OPM3® ? PMI’s organizational project management maturity model The model is designed to help organizations determine their level of maturity in project management For the exam you should be familiar with term “OPM3” and know what it is. PMP, CAPM, PgMP, PMI-SP , PMI-RMP, OPM3 and PMBOK are registered marks of Project Management Institute, Inc Inov8Solutions Inc – Quality Educational Services For Professionals 2-10

Constraints Resources Scope Risk Budget Quality As a project manager, you must handle or juggle many things to accomplish a project, including “Project Constraints” such as schedule or time, cost or budget, risk, scope, quality, resources as well as customer satisfaction. For example, the date a milestone is due, the date by which the project must be completed, or the maximum allowable risk a project may have are all “Constraints” Schedule PMP, CAPM, PgMP, PMI-SP , PMI-RMP, OPM3 and PMBOK are registered marks of Project Management Institute, Inc Inov8Solutions Inc – Quality Educational Services For Professionals 2-11

Who are Stakeholders? Stakeholders are individuals or organizations whose interests are positively or negatively impacted by the project Can you think of some stakeholders in a typical project? Why are stakeholders important? What should be done with stakeholders? Stakeholders are individuals or organizations whose interests are positively or negatively impacted by the project Can you think of some stakeholders in a typical project? Stakeholders can be a performing organization, project management team, project management office, portfolio managers, program managers, functional managers, and sellers. Why are stakeholders important? Stakeholders are very important to a project since their interests can positively or negatively impact your project What should be done with stakeholders? Identify all of them Plan how to manage them and their needs Collect all of their needs Create project requirements out of the needs Communicate to all of them Actively manage their expectations PMP, CAPM, PgMP, PMI-SP , PMI-RMP, OPM3 and PMBOK are registered marks of Project Management Institute, Inc Inov8Solutions Inc – Quality Educational Services For Professionals 2-12

Test Your Knowledge Explain the difference between a positive stakeholder and a negative stakeholder. A positive stakeholder is one who benefits from the existence or outcome of the project. A negative stakeholder is one who is negatively affected by the existence or outcome of the project. PMP, CAPM, PgMP, PMI-SP , PMI-RMP, OPM3 and PMBOK are registered marks of Project Management Institute, Inc Inov8Solutions Inc – Quality Educational Services For Professionals 2-13

Review Quiz All of the following are parts of the team’s stakeholder management effort EXCEPT: Giving stakeholders extras Identifying stakeholders Determining stakeholders’ needs Managing stakeholders’ expectations Correct answer A Giving stakeholders extras is known as “Gold Plating”. A project manager should always stick to the “SCOPE” of his project. PMP, CAPM, PgMP, PMI-SP , PMI-RMP, OPM3 and PMBOK are registered marks of Project Management Institute, Inc Inov8Solutions Inc – Quality Educational Services For Professionals 2-14

Types of Organizations
Functional Organization (Most Common) Grouped by specialization within different functional areas Matrix Organization Weak Matrix Power rests with the functional manager Project Manager can be Project Expediter / Project coordinator Balanced Matrix Power shared between? Strong Matrix Power rests with? Projectized Organization Composite Organization Organization structure plays a key role in how the projects are run and managed within an organization. One of the main focus of influence is how the company is organized. The organizational structure will dictate who the project manager goes to for help with resources, how communications must be handled, and many other aspects of the project management. Functional Organization Functional Organization is the most common form of the organization. Such organizations are grouped by areas of specialization within different functional areas, for example accounting, marketing, software development, manufacturing etc. Projectized Organization In a projectized organization, the entire company is organized by projects, and the project manager has control of the project. When you see “Projectized” on the exam, remember “no home”. Project team members once they complete a project do not have a department to go back to. They either need to be assigned to another project or get a job with a different employer Matrix Organization Matrix organization is an attempt to maximize the strengths of both the functional and projectized structures. There are three types of Matrix organization, Weak Matrix, balanced matrix and strong matrix In a weak matrix power rests with the functional manager and the project manager plays the role of either a “Project Expediter” or a “Project Coordinator” In a Balanced Matrix power is shared between the functional manager and the project manager In a Strong Matrix power rests with the project manager PMP, CAPM, PgMP, PMI-SP , PMI-RMP, OPM3 and PMBOK are registered marks of Project Management Institute, Inc Inov8Solutions Inc – Quality Educational Services For Professionals 2-15

Test Your Knowledge Explain the advantages and disadvantages of each type of organization. Each type of organization has its advantages and disadvantages. The few slides will highlight some advantages and disadvantages of each. PMP, CAPM, PgMP, PMI-SP , PMI-RMP, OPM3 and PMBOK are registered marks of Project Management Institute, Inc Inov8Solutions Inc – Quality Educational Services For Professionals 2-16

Types of Organizations Advantages and Disadvantages
Functional Organization Advantages Disadvantages Areas of specialization Conflict between project work and functional work One manager Project manager has little authority Clearly defined career path No career path in project management Among the many advantages of a functional organizational structure are: Each function or group has expertise in a discipline Team members report to only one manager Employees in a functional organization have clearly defined career paths Some of the disadvantages of a functional organization are: There might be a conflict between the team members’ regular functional work and the work of the project The project manager has little authority There is no clearly defined career path in the project management field PMP, CAPM, PgMP, PMI-SP , PMI-RMP, OPM3 and PMBOK are registered marks of Project Management Institute, Inc Inov8Solutions Inc – Quality Educational Services For Professionals 2-17

Projectized Organization Advantages Disadvantages More structured project organization Lack of specialization Loyalty to project No “home” for team when project is complete The following are among the advantages of a Projectized Organization: More structured project organization and management Team members have loyalty to the project A couple disadvantages of a Projectized Organization are: There is lack of specialization Team members have nowhere to go once the project is complete PMP, CAPM, PgMP, PMI-SP , PMI-RMP, OPM3 and PMBOK are registered marks of Project Management Institute, Inc Inov8Solutions Inc – Quality Educational Services For Professionals 2-18

Matrix Organization Advantages Disadvantages More project manager control over resources More than one boss Better coordination Greater chance of conflict Team members maintain a “home” More difficult to allocate resources Some advantages of a Matrix organization are: The project manager has more control over resources There is better coordination of project activities Team members maintain a “home” after the project is complete Some disadvantages of a Matrix organization are: The team has more than one boss There is greater chance of conflict It is more difficult to allocate resources in a Matrix organiation PMP, CAPM, PgMP, PMI-SP , PMI-RMP, OPM3 and PMBOK are registered marks of Project Management Institute, Inc Inov8Solutions Inc – Quality Educational Services For Professionals 2-19

Review Quiz The project manager has the highest level of independence and authority in what type of organization? Strong Matrix Weak Matrix Projectized Functional Correct Answer - C PMP, CAPM, PgMP, PMI-SP , PMI-RMP, OPM3 and PMBOK are registered marks of Project Management Institute, Inc Inov8Solutions Inc – Quality Educational Services For Professionals 2-20

Review Quiz A project coordinator may typically be found in what type of organization? Projectized Strong Matrix Weak Matrix Balanced Matrix Correct Answer C – Weak Matrix PMP, CAPM, PgMP, PMI-SP , PMI-RMP, OPM3 and PMBOK are registered marks of Project Management Institute, Inc Inov8Solutions Inc – Quality Educational Services For Professionals 2-21

Project Life Cycle Defines technical work performed in each phase Project phases can overlap (Fast tracking) Common characteristics of Project Life cycle structure are shown: A life cycle is a progression through a series of development stages. There are two life cycles: A Project Life Cycle and A Product Life Cycle Let us now talk about what a Project Life Cycle is. The project life cycle is sometimes referred to as the performing organization’s methodology for projects. It is what you need to do to produce the deliverables of the project. Source: PMBOK® Guide 5th edition – pg.39 PMP, CAPM, PgMP, PMI-SP , PMI-RMP, OPM3 and PMBOK are registered marks of Project Management Institute, Inc Inov8Solutions Inc – Quality Educational Services For Professionals 2-22

Project Life Cycle (cont..)
Cost, Staffing levels are low at start, move higher as work is carried out and drop rapidly towards close Stakeholder influences are high at start of project Ability to influence final characteristics are high at start Two methodologies are required to complete a project Project Life cycle Project management methodology Some key points to remember about a “Project Life Cycle” Cost, Staffing levels are low at the start, they move higher as work is carried out and drop rapidly towards the close Stakeholder influences are high at the start of the project The ability to influence final characteristics are high at start of the project There are many different types of project life cycles, depending on the industry in which a project manager works. For example in a “Construction” Project the typical project life cycle would go through; Feasibility, planning, design, production, turnover, and startup IT projects would typically go through, High level design, detailed design or low level design, coding, testing, installation, documentation and turnover to operations PMP, CAPM, PgMP, PMI-SP , PMI-RMP, OPM3 and PMBOK are registered marks of Project Management Institute, Inc Inov8Solutions Inc – Quality Educational Services For Professionals 2-23

Product Life Cycle Spans from Conception of a new product to its withdrawal Product can require or spawn many projects over its life Customer’s needs are identified during conception Analyzing project competition is done during the maturity The “Product” life cycle lasts from the conception of a new product to its withdrawal A product can require or spawn many projects over its life For example, during a products conception, there may be a project to determine the customer’s needs. When the project is mature, there be another project to analyze the product’s competition in the marketplace. Source - PMP exam prep, 7th edition - Rita Mulcahy, pg 27 PMP, CAPM, PgMP, PMI-SP , PMI-RMP, OPM3 and PMBOK are registered marks of Project Management Institute, Inc Inov8Solutions Inc – Quality Educational Services For Professionals 2-24

End of Chapter Summary A project is a temporary endeavor creates a unique product, service, or result Operational work is: repetitive and ongoing A program: Is a group of related projects allows for more efficient, coordinated management A portfolio is: is a group of programs and projects Stakeholders: Can be positive or negative Expectations must be managed Here is a summary of the contents of this chapter: A project is a temporary endeavor that creates a unique product, service, or result. On the other hand, operational work is ongoing and repetitive. A program is a group of related projects. Program management leads to more efficient and coordinated management of projects. A portfolio is a group of programs and projects. Portfolio management allows an organization to achieve strategic goals. Stakeholders can have a positive or negative influence on a project. Successful project management requires proper management of stakeholders expectations. PMP, CAPM, PgMP, PMI-SP , PMI-RMP, OPM3 and PMBOK are registered marks of Project Management Institute, Inc Inov8Solutions Inc – Quality Educational Services For Professionals 2-25

End of Chapter Summary Types of organizations: Functional, Matrix, and Projectized. Advantages/disadvantages Project lifecycle: Work done to meet the project objectives. Differs for each industry Product lifecycle: Stages in a product’s development Conception, growth, maturity, decline, and eventually withdrawal. Product lifecycle can potentially spawn many project lifecycles. The 3 types of organizations are Functional, Matrix, and Projectized. There are advantages and disadvantages of each type. Project lifecycle refers to the work that must be done to achieve project objectives. This differs for each industry. For example, the project lifecycle for a software development project will be different from the project lifecycle for a construction project. Product lifecycle refers to the stages of a product’s development and spans conception, growth, maturity, decline, and withdrawal. Each of these phases or stages may spawn multiple project lifecycles. PMP, CAPM, PgMP, PMI-SP , PMI-RMP, OPM3 and PMBOK are registered marks of Project Management Institute, Inc Inov8Solutions Inc – Quality Educational Services For Professionals 2-26

End of Chapter Quiz Question 1. A Project is: A set of sequential activities performed in a process or system A revenue-generating activity that needs to be accomplished while achieving customer satisfaction An ongoing endeavor undertaken to meet customer or market requirements A temporary endeavor undertaken to create a unique product, service, or result Correct Answer is D PMP, CAPM, PgMP, PMI-SP , PMI-RMP, OPM3 and PMBOK are registered marks of Project Management Institute, Inc Inov8Solutions Inc – Quality Educational Services For Professionals 2-27

End of Chapter Quiz Question 2. Which of the following is not true about project stakeholders? A. They are individuals and organizations that are actively supportive of the project B. They are individuals and organizations that are actively involved in a project C. They are individuals and organizations whose interests may be affected as a result of project execution or project completion D. They are individuals and organizations that may exert influence over the projects objectives and outcomes. Correct Answer is A PMP, CAPM, PgMP, PMI-SP , PMI-RMP, OPM3 and PMBOK are registered marks of Project Management Institute, Inc Inov8Solutions Inc – Quality Educational Services For Professionals 2-28

End of Chapter Quiz Question 3. For a large complex project with cross-functional project needs, the following organizational structure gives considerable authority to the project manager: A strong matrix organization A balanced matrix organization A weak matrix A functional organization Correct Answer is A PMP, CAPM, PgMP, PMI-SP , PMI-RMP, OPM3 and PMBOK are registered marks of Project Management Institute, Inc Inov8Solutions Inc – Quality Educational Services For Professionals 2-29

End of Chapter Quiz Question 4. Operational work is different from project work in that it is: Unique Temporary Ongoing and repetitive A part of every project activity Correct answer is C PMP, CAPM, PgMP, PMI-SP , PMI-RMP, OPM3 and PMBOK are registered marks of Project Management Institute, Inc Inov8Solutions Inc – Quality Educational Services For Professionals 2-30

End of Chapter Quiz Question 5. Project management is: Portfolio Management Not needed by experienced project managers Application of knowledge, skills, tools and techniques to project activities in order to meet or exceed stakeholder needs and expectations for a project Not practical for all projects Correct answer is C PMP, CAPM, PgMP, PMI-SP , PMI-RMP, OPM3 and PMBOK are registered marks of Project Management Institute, Inc Inov8Solutions Inc – Quality Educational Services For Professionals 2-31

End of Chapter Quiz Question 6. In which type of organization does the project manager have the most authority? Projectized Functional Strong Matrix Weak Matrix Correct answer is A PMP, CAPM, PgMP, PMI-SP , PMI-RMP, OPM3 and PMBOK are registered marks of Project Management Institute, Inc Inov8Solutions Inc – Quality Educational Services For Professionals 2-32

End of Chapter Quiz Question 7. Project lifecycle is different from product lifecycle in that a product lifecycle: Can spawn many project lifecycles Differs for every industry Lasts from conception of a new product to its withdrawal Both A and C are true Correct answer is D PMP, CAPM, PgMP, PMI-SP , PMI-RMP, OPM3 and PMBOK are registered marks of Project Management Institute, Inc Inov8Solutions Inc – Quality Educational Services For Professionals 2-33

Chapter 2 Project Management Framework

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