Introduction T P j t I t d ti To Project Management

Chapters One, Two, & Three PMBOK- 4th Edition Presentation compiled by: Shaymaa Kadry, PMP E-mail: [email protected] Twitter: Shaymaa_Kadry

What is a project?
A project is a temporary endeavor undertaken to create a unique product, service, or result. The temporary nature of projects indicates a definite beginning and end. A project can create: A product that can be either a component of another item or an end item in itself, , A capability to perform a service (e.g., a business function that supports production or distribution), or A result such as an outcome or document (e.g., a research project that develops knowledge that can be used to determine whether a trend is present or a new process will benefit society) society).

What is a project management?

Project management is the application of knowledge, skills, tools, and techniques to project activities to meet the project requirements. Project management is accomplished through the appropriate application j g p g pp p pp and integration of the 42 logically grouped project management processes comprising the 5 Process Groups. These 5 Process Groups are: Initiating, Planning Planning, Executing, Monitoring and Controlling, and Closing

What is a project management?

g g p j yp y Managing a project typically includes: Identifying requirements, Add i i d d t ti f the Addressing th various needs, concerns, and expectations of th the stakeholders as the project is planned and carried out, including, Balancing the competing project constraints including but not limited to: Scope, Quality Quality, Schedule, Budget, Resources, and R d Risk.

Project Management, Program Management, and P tf li M M t d Portfolio Management t

In mature project management organizations, project management exists in a broader context governed by program management and portfolio management.

Portfolio Management
Portfolio refers to a collection of projects or programs and other work p j p g that are grouped together to facilitate effective management of that work to meet strategic business objectives. The projects or programs of the portfolio may not necessarily be interdependent or directly related. Portfolio Management refers to the centralized management of one or more portfolios which includes identifying prioritizing authorizing portfolios, identifying, prioritizing, authorizing, managing, and controlling projects, programs, and other related work, to achieve specific strategic business objectives. Portfolio management focuses on ensuring th t projects and programs are reviewed t prioritize f i that j t d i d to i iti resource allocation, and that the management of the portfolio is consistent with and aligned to organizational strategies.

Program Management
Program: a group of related projects managed in a coordinated way to g g p p j g y obtain benefits and control not available from managing them individually. Programs may include elements of related work outside the scope of the discrete projects in the program. A project may or may not be part of a program but a program will always have projects. Program Management: the centralized coordinated management of a program to achieve the programs strategic objectives and benefits. Projects within a program are related through the common outcome or collective capability. If th relationship b t ll ti bilit the l ti hi between projects i only th t of a j t is l that f shared client, seller, technology, or resource, the effort should be managed as a portfolio of projects rather than as a program. Program management focuses on the project interdependencies and p p pp g g helps to determine the optimal approach for managing them.

Project Management, Program Management, and P tf li M M t d Portfolio Management t

PROJECTS PROGRAMS PORTFOLIOS

Projects and Strategic Planning

Projects are often utilized as a means of achieving an organizations strategic plan. P j t are t i ll authorized as a result of one or more t t i l Projects typically th i d lt f of the following strategic considerations: Market d k demand, d Strategic opportunity/business need , Customer request, q Technological advance, and Legal requirements.

Project Management Office

A project management office (PMO) is an organizational body or entity assigned various responsibilities related to the centralized and coordinated management of those projects under its domain. The responsibilities of a PMO can range from providing project management support f t functions t ti to actually b i t ll being responsible f ibl for th di t the direct management of a project. The projects supported or administered by the PMO may not be related, other than by being managed together. The specific form, function, and structure of a PMO is dependent upon the needs of the organization that p p g it supports

Project Management Office

A primary function of a PMO is to support project managers in a variety of ways which may include, but are not limited to:
Managing shared resources across all projects administered by the PMO; Identifying and developing project management methodology, best practices, and standards; Coaching, mentoring, training, and oversight; Monitoring compliance with project management standards policies, procedures, and templates via project audits; Developing and managing project policies, procedures, templates, and other shared documentation (organizational process assets); and Coordinating communication across projects.

Project Management Office

Differences between the role of project managers and a PMO may include the following:
The project manager focuses on the specified project objectives, while the PMO manages major program scope changes which may be seen as potential opportunities to better achieve business objectives. The project manager controls the assigned project resources to best meet j g g j project objectives while the PMO optimizes the use of shared organizational resources across all projects. The project manager manages the constraints (scope schedule cost and (scope, schedule, cost, quality, etc.) of the individual projects while the PMO manages the methodologies, standards, overall risk/opportunity, and interdependencies among projects at the enterprise level.

Project Management and Operation Management

Operations are an organizational function performing the ongoing execution of activities that produce the same product or provide a repetitive service. Examples include: production operations manufacturing operations and operations, operations, accounting operations. Projects P j t require project management while operations require b i i j t t hil ti i business process management or operations management. Projects can intersect with operations at various points during the product life cycle, such as:

At each closeout phase; When developing a new product, upgrading a product, or expanding outputs; Improvement of operations or the product development process; or Until h divestment of the operations at the end of the product lif cycle. U il the di f h i h d f h d life l

Project Management and Operation Management

Operations are permanent endeavors that produce repetitive outputs, with resources assigned t d b i ll th same set t t ith i d to do basically the t of tasks according to the standards institutionalized in a product life cycle. Unlike the ongoing nature of operations, projects are temporary endeavors.

Role of Project Manager

The project manager is the person assigned by the performing organization to achieve the project objectives. The project manager should possess the following characteristics, in addition to any area specific skills and general management area-specific proficiencies:
Knowledge. Knowledge what the project manager knows about project management management. Performance. This refers to what the project manager is able to do or accomplish while applying their project management knowledge. Personal This refers to how the project manager behaves when Personal. performing the project or related activity. Personal effectiveness encompasses attitudes, core personality characteristics and leadership the ability to guide the project team while achieving project objectives and balancing the project constraints.

Enterprise Environmental Factors

Enterprise environmental factors refer to both internal and environmental factors that surround or influence a projects success. p j external Enterprise environmental factors may enhance or constrain project management options and may have a positive or negative influence on the outcome. Enterprise environmental factors include, but are not limited to:
Organizational culture, structure, and processes; Government or industry standards; Infrastructure (e g existing facilities and capital equipment); (e.g., Existing human resources (e.g., skills, disciplines, and knowledge,; Personnel administration (e.g., staffing and retention guidelines, employee performance reviews and training records, overtime policy, and time tracking); Company work authorization systems; Marketplace conditions; Stakeholder risk tolerances; Political climate; Organizations established communications channels; Commercial databases (e.g., standardized cost estimating data); and Project management information systems (e.g., an automated tool, such as a scheduling software tool, a configuration management system,).

The Project Life Cycle

A project life cycle is a collection of generally sequential and sometimes overlapping project phases whose name and number are determined by the management and control needs of the organization or organizations involved in the project, the nature of the project itself, and its area of application. application No matter how large or small, simple or complex, all projects can be mapped to the following life cycle structure:
Starting the project, Organizing and preparing preparing, Carrying out the project work, and Closing the project.

Product vs. Project Life Cycle Relationships vs

The product life cycle consists of generally sequential, non-overlapping product phases determined by the manufacturing and control need of the organization. All projects have a purpose or objective, but in those cases where the objective is a service or result, there may be a life cycle for the service or result, cycle. result not a product life cycle When the output of the project is related to a product, there are many possible relationships for e g : relationships, e.g.:
The development of a new product could be a project on its own. Alternatively, an existing product might benefi t from a project to add y g p g p j new functions or features, or a project might be created to develop a new model.

Project Phases
Project phases are divisions within a project where extra control is needed to effectively manage the completion of a major deliverable. y g p j Project phases are typically completed sequentially, but can overlap in some project situations. A project phase is not a Project Management Process Group. All phases have similar characteristics When phases are sequential, the close of a phase ends with some form of transfer or handoff of the work product produced as the phase deliverable. This phase end represents a natural point to reassess the effort underway and to change or terminate the project if necessary. These points are referred to as phase exits, milestones, phase gates, decision gates, stage gates, or kill points. The work has a distinct focus that differs from any other phase. This often involves different organizations and different skill sets. The i Th primary d li deliverable or objective of th phase requires an extra d bl bj ti f the h i t degree of f control to be successfully achieved.

Project Governance Across the Life Cycle

Project governance provides a comprehensive, consistent method of controlling the project and ensuring its success. The project governance approach should be described in the project management plan. The end of a phase represents a natural point to reassess the effort underway and to change or terminate the project if necessary. A review of both key deliverables and project performance to date to:
Determine if the project should continue into its next phase and, Detect and correct errors cost effectively should be regarded as good ti practice.

Formal phase completion does not necessarily include authorizing the subsequent phase. F i b h For instance, if the risk i d h i k is deemed to b too great f d be for the project to continue or if the objectives are no longer required, a phase can be closed with the decision to not initiate any other phases.

Phase to Phase Phase-to-Phase Relationships

There are three basic types of phase-to-phase relationships: A sequential relationship, where a phase can only start once the previous phase is complete. The step-by-step nature of this approach reduces uncertainty, b t may eliminate options f reducing th d t i t but li i t ti for d i the schedule. An overlapping relationship, where the phase starts prior to pp g p, p p completion of the previous one. Overlapping phases may increase risk and can result in rework if a subsequent phase progresses before accurate information is available from the previous phase phase. An iterative relationship, where only one phase is planned at any given time and the planning for the next is carried out as work progresses on the current phase and d li h h d deliverables. Thi approach i bl This h is useful in largely undefined, uncertain, or rapidly changing environments such as research, but it can reduce the ability to provide long term planning.

Projects vs. Operational Work

In many organizations the work performed can be categorized as either project or operations work. These two types of work share a number of characteristics as follows:
Performed b i di id l P f d by individuals, Limited by constraints, including resource constraints, Planned, executed, monitored and controlled, and , , , Performed to achieve organizational objectives or strategic plans.

Projects and operations differ primarily in that: j p p y

Operations are ongoing and produce repetitive products, services, or results. They work sustains the organization over time. Operations work does not terminate when its current objectives are met but instead follow new directions to support the organizations strategic plans. Projects are temporary and end. Operations work supports th b i O ti k t the business environment where projects are i t h j t executed.

Stakeholders
Stakeholders are persons or organizations (e.g., customers, sponsors, the performing organization, or the public), who are actively involved in the project or whose interests may be positively or negatively affected by the performance or completion of the project. Stakeholders may also exert influence over the project, its deliverables, and the project team members. The project management team must identify both internal and external stakeholders in order to determine the project requirements and expectations of all parties involved. The project manager must manage the influence of the various stakeholders in relation to the project requirements to ensure a successful outcome. q

Stakeholders
Stakeholders have varying levels of responsibility and authority when participating on a project and these can change over the course of the project life cycle. Their responsibility and authority may range from occasional contributions in surveys and focus groups to full project sponsorship, sponsorship which includes providing financial and political support support. The following are some examples of project stakeholders.
Customers/users. Customers/users Sponsor. Portfolio managers/portfolio review board. Program managers managers. Project management office. Project managers. Project team team. Functional managers. Operations management. Sellers/business partners.

Organizational Influences on Project Management

The organizational culture, style, and structure influence how projects g , y , p j are performed. An organizations degree of project management maturity and its project management systems can also influence the project. When a project involves external entities as part of a joint venture or partnering, the project will be influenced by more than one enterprise.

Organizational Cultures and Styles

Cultures and styles may have a strong influence on a projects ability to project s meet its objectives. Cultures and styles are typically known as cultural norms. The norms include a common knowledge regarding how to approach getting the work done what means are considered acceptable done, for getting the work done, and who is influential in facilitating the work getting done. Most organizations have developed unique cultures that manifest in numerous ways including, but not limited to:
Shared visions, values, norms, beliefs, and expectations, Policies, methods, and procedures, View of authority relationships, and Work ethic and work hours.

The organizational culture is an enterprise environmental factor

Organizational Structure
Organizational structure is an enterprise environmental factor which can affect the availability of resources and influence how projects are conducted. Organizational structures range from functional to projectized, with a variety of matrix structures between them.
Organization Structure

Project Characteristics

Functional

Matrix
Weak Matrix Balanced Matrix Strong Matrix

Projectized

Organizational Structure
The classic functional organization A hierarchy where each employee has one clear superior. Staff S ff members are grouped b b d by specialty, such as production, marketing, engineering, and accounting at the top level. Specialties may be further subdivided into functional organizations, such as mechanical and electrical engineering. engineering Each department in a functional organization will do its project work independent of other departments
Functional Organization

Organizational Structure
Matrix organizations A blend of functional and projectized p j characteristics. Weak matrices maintain many of the characteristics of a functional organization, and the project manager role is more of a coordinator or expediter than that of a true project manager. Strong matrices have many of the characteristics of the projectized organization, and can have full-time project full time managers with considerable authority and full-time project administrative staff. Balanced matrix organization recognizes the need for a project manager, it does not provide the project manager with the full authority over the project and project Funding.
Weak Matrix Organization

Balanced Matrix Organization

Strong Matrix Organization

Organizational Process Assets

Organizational process assets include any or all process related assets, from any or all of the organizations involved in the project that can be used to influence the projects success. These process assets include formal and informal plans policies plans, policies, procedures and guidelines. organizations knowledge bases such as lessons learned and historical information, completed schedules, risk data, d d t and earned value d t d l data. Organizational process assets may be grouped into two categories: Processes and Procedures Corporate Knowledge Base

Organizational Process Assets

Processes and Procedures
The organizations processes and procedures for conducting work include but are not limited to:
Organizational standard processes such as standards, policies g p ,p Standardized guidelines, work instructions, proposal evaluation criteria, and performance measurement criteria; Templates Guidelines and criteria f t il i G id li d it i for tailoring th organizations set of standard processes t the i ti t f t d d to satisfy the specific needs of the project; Organization communication requirements Project closure guidelines or requirements j g q Financial controls procedures Issue and defect management procedures defining issue and defect controls, issue and defect identification and resolution, and action item tracking; Change control procedures, i l di Ch t l d including th steps b which official company standards, the t by hi h ffi i l t d d policies, plans, and proceduresor any project documentswill be modified, and how any changes will be approved and validated; Risk control procedures, including risk categories, probability definition and impact, p , g g , p y p , and probability and impact matrix; and Procedures for prioritizing, approving, and issuing work authorizations.

Organizational Process Assets

Corporate Knowledge Base The organizational corporate knowledge base for storing and retrieving information includes but is not limited to: Process measurement databases used to collect and make available measurement data on processes and products, Project files Historical information and lessons learned knowledge bases Issue and defect management databases containing issue and defect status control information issue and defect resolution and action status, information, resolution, item results, Configuration management knowledge bases containing the versions and b li d baselines of all official company standards, policies, procedures, f ll ffi i l t d d li i d and any project documents, and Financial databases containing information such as labor hours, incurred costs, budgets and any project cost overruns.

Project Management Processes For A Project

A process is a set of interrelated actions and activities performed to achieve a pre-specified product, result, or service. pre specified Each process is characterized by its inputs, the tools and techniques that can be applied, and the resulting outputs. There are five Project Management Process Groups required for any project project. In order for a project to be successful, the project team must: Select appropriate processes required to meet the project objectives, Use a defined approach that can be adopted to meet requirements, Comply with requirements to meet stakeholder needs and py q expectations, and Balance the competing demands of scope, time, cost, quality, resources, and risk to produce the specifi ed product, service, or , p p p , , result.

Project Management Processes For A Project

A process is a set of interrelated actions and activities performed to achieve a pre-specified product, result, or service. pre specified Each process is characterized by its inputs, the tools and techniques that can be applied, and the resulting outputs. There are five Project Management Process Groups required for any project project. In order for a project to be successful, the project team must: Select appropriate processes required to meet the project objectives, Use a defined approach that can be adopted to meet requirements, Comply with requirements to meet stakeholder needs and py q expectations, and Balance the competing demands of scope, time, cost, quality, resources, and risk to produce the specifi ed product, service, or , p p p , , result.

Project Management Processes For A Project

The project processes are performed by the project team and generally fall into one of two major categories: Project management processes ensure the effective flow of the project throughout its existence. These processes encompass the tools and techniques involved in applying the skills and y g capabilities described in the Knowledge Areas. Product-oriented processes specify and create the projects p p y p j product. Product-oriented processes are typically defined by the project life cycle and vary by application area area.

Project Management Processes For A Project

Project management processes are grouped into five categories known as Project Management Process Groups (or Process Groups):
Initiating Process Group. Those processes performed to define a new project or a new phase of an existing project by obtaining authorization to start the project or phase. Planning Process Group. Those processes required to establish the scope p j , j , of the project, refine the objectives, and define the course of action required to attain the objectives that the project was undertaken to achieve. Executing Process Group. Those processes performed to complete the g p p p p work defined in the project management plan to satisfy the project specifications. Monitoring and Controlling Process Group. Those processes required to track, review, and regulate the progress and performance of the project; identify any areas in which changes to the plan are required; and initiate the corresponding changes. Closing Process G Cl i Group. Th Those processes performed to fi li f d finalize all ll activities across all Process Groups to formally close the project or phase.

Common Project Management Process Interactions

Project Management Process Groups are linked by the outputs they produce. The output of one process generally becomes an input to another process or is a deliverable of the project. These five Process Groups have clear dependencies and are typically performed in the same sequence on each project. They are independent of application areas or industry focus. A Process Group includes the constituent project management processes that are linked by the respective inputs and outputs where the result or outcome of one process becomes the input to another another. The Process Groups are not project phases. When large or complex p j projects are separated into distinct phases or subprojects, all of the p p p j Process Groups would normally be repeated for each phase or subproject.

Initiating Process Group g p

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Initiating Process Group

1. Develop Project Charter: is the process of developing a document that formally authorizes a project or a phase and documenting initial requirements that satisfy the stakeholders needs and expectations. In multiphase projects, this process is used to validate or refine the p p j , p decisions made during the previous iteration of Develop Project Charter. 2. Identify Stakeholders: is the process of identifying all people or organizations impacted by the project, and documenting relevant information regarding their interests, involvement, and impact on project success. success

Planning Process Group g p

40

Planning Process Group

1. Develop Project Management Plan: is the process of documenting the p j g p g actions necessary to define, prepare, integrate, and coordinate all subsidiary plans. The project management plan becomes the primary source of information for how the project will be planned, executed, p j p , , monitored and controlled, and closed. 2. Collect Requirements: is the process of defining and documenting q p g g stakeholders needs to meet the project objectives 3. Define Scope: is the process of developing a detailed description of the project and product. 4. 4 Create Work Breakdown Structure: is the process of subdividing project deliverables and project work into smaller, more manageable components.

Planning Process Group

5. 5 Define Activities: is the process of identifying the specific actions to be performed to produce the project deliverables. 6. Sequence A ti iti 6 S Activities: i th process of id tif i is the f identifying and d d documenting ti relationships among the project activities. 7. 7 Estimate Activity Resources: is the process of estimating the type and quantities of material, people, equipment, or supplies required to perform each activity. 8. Estimate Activity Durations: Estimate Activity Durations is the process of approximating the number of work periods needed to complete individual activities with estimated resources resources.

Planning Process Group

9. Develop Schedule: Develop Schedule is the process of analyzing p p p y g activity sequences, durations, resource requirements, and schedule constraints to create the project schedule. 10. Estimate Costs: Estimate Costs is the process of developing an approximation of the monetary resources needed to complete project activities. 11. Determine Budget: Determine Budget is the process of aggregating g the estimated costs of individual activities or work packages to establish an authorized cost baseline. 12. Plan Quality: Plan Quality is the process of identifying quality requirements and/or standards for the project and product, and documenting how the project will demonstrate compliance.

Planning Process Group

13. Develop Human Resource Plan: Develop Human Resource Plan is p p the process of identifying and documenting project roles, responsibilities, and required skills, reporting relationships, and creating a staffing management plan. g p 14. Plan Communications: Plan Communications is the process of g p j g determining project stakeholder information needs and defining a communication approach g g p 15. Plan Risk Management: Plan Risk Management is the process of defining how to conduct risk management activities for a project. 16. Identify Risks: Identify Risks is the process of determining which risks may affect the project and documenting their characteristics.

Planning Process Group

17. Perform Qualitative Risk Analysis: Perform Qualitative Risk Q y Q Analysis is the process of prioritizing risks for further analysis or action by assessing and combining their probability of occurrence and impact. 18. Perform Quantitative Risk Analysis: Perform Quantitative Risk Analysis is the process of numerically analyzing the effect of identified p j j risks on overall project objectives. 19. Plan Risk Responses: Plan Risk Responses is the process of p g p pp developing options and actions to enhance opportunities and to reduce threats to project objectives. 20. Plan Procurements: Plan Procurements is the process of documenting project purchasing decisions, specifying the approach, and identifying potential sellers.

Executing Process Group g p

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Executing Process group

1. Direct and Manage Project Execution: Direct and Manage Project Execution i th process of performing th work d fi d i th project E ti is the f f i the k defined in the j t management plan to achieve the projects objectives. 2. 2 Perform Quality Assurance: Perform Quality Assurance is the process of auditing the quality requirements and the results from quality control measurements to ensure appropriate quality standards and operational definitions are used. d fi iti d 3. Acquire Project Team: Acquire Project Team is the process of confirming human resource availability and obtaining the team necessary to complete project assignments. 4. 4 Develop Project Team: Develop Project Team is the process of improving the competencies, team interaction, and the overall team environment to enhance project performance.

Executing Process group

5. Manage Project Team: Manage Project Team is the process of tracking g j g j p g team member performance, providing feedback, resolving issues, and managing changes to optimize project performance. 6. Distribute Information: Distribute Information is the process of making relevant information available to project stakeholders as planned. 7. Manage Stakeholder Expectations: Manage Stakeholder Expectations is the process of communicating and working with stakeholders to meet their needs and addressing issues as they occur. 8. Conduct Procurements: Conduct Procurements is the process of obtaining seller responses, selecting a seller, and awarding a contract.

Monitoring and Controlling Process Group

1. Monitor and Control Project Work: Monitor and Control Project Work is the i th process of t ki f tracking, reviewing, and regulating th progress t meet i i d l ti the to t the performance objectives defined in the project management plan. Monitoring includes status reporting, progress measurement, and forecasting. Performance reports provide information on the projects performance with regard to scope, schedule, cost, resources, quality, and risk, which can be used as inputs to other processes. p p

2. 2 Perform Integrated Change Control: Perform Integrated Change Control is the process of reviewing all change requests, approving changes, and managing changes to the deliverables, organizational process assets, project d j documents, and the project management plan. d h j l

Monitoring and Controlling Process g Group p

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Monitoring and Controlling Process Group

3. Verify Scope: Verify Scope is the process of formalizing acceptance of the completed project deliverables. 4. Control Scope: Control Scope is the p p p process of monitoring the status of g the project and product scope and managing changes to the scope baseline. 5. Control Schedule: Control Schedule is the process of monitoring the status of the project to update project progress and managing changes to the schedule baseline. 6. Control C 6 C l Costs: C Control C l Costs i the process of monitoring the status of is h f i i h f the project to update the project budget and managing changes to the cost baseline.

Monitoring and Controlling Process Group

7. Perform Quality Control: Perform Quality Control is the process of monitoring and recording results of executing the quality activities to assess performance and recommend necessary changes. 8. Report P f 8 R t Performance: R Report P f t Performance i th process of collecting is the f ll ti and distributing performance information including status reports, progress measurements, and forecasts. 9. Monitor and Control Risks: Monitor and Control Risks is the process of implementing risk response plans, tracking identified risks, monitoring residual risks, identifying new risks, and evaluating risk process effectiveness throughout the project. 10. Administer Procurements: Administer Procurements is the process of g gp p , g p , managing procurement relationships, monitoring contract performance, and making changes and corrections as needed.

Closing Process Group g p

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Closing Process Group

1. 1 Close Project or Phase: Close Project or Phase is the process of finalizing all activities across all of the management Process Groups to formally complete the project or phase. 2. Close Procurements: Close Procurements is the process of completing each project procurement procurement.