Ssud71-103 1

Copyright (C) Craig Langston 2015
SSUD71-103: Principles of Project Management

Lecture 1
Professor Craig Langston
FSD
BOND U
PROJECT
MANAGEMENT
COMPETENCIES
in this lecture
project
management
competencies
knowledge
areas
PMBOK body of
knowledge
FSD
project management
o
o
o
project management (PM) is a professional discipline that arose from

construction and now has application to other fields, such as
telecommunications and information technology, defence, software
development and marketing
the profession can therefore be described as generic, and while
construction remains a major instance of the tools and competencies
for PM, it is a discipline that can be practiced globally by people with no
knowledge of building
PM is quite distinct from operations or production management which
are ongoing activities
a project manager is a senior client advisor, leader of the project team,
and spokesperson for the project status
FSD
what is a project?
o
o
o
o
o
o
projects are goal-oriented each project has the objective of creating

some new entity which did not exist before
projects have a defined beginning and finish, with a clear project life
cycle
projects are made up of a large number of separate but independent
tasks
projects are unique
project tasks make demands on a range of resources, usually on an
intermittent or varying basis
projects may be soft (virtual or paper-based) or hard (leading to
physical outputs or assets)
FSD
project context
o
o
o
o
the project context refers to the immediate surroundings of the project,

which are critical to successful delivery
this includes the primary intention for the project, contractual
arrangements, other legal and financial relationships, and the particular
people and organisations involved
these will differ from one project to another, even though they may be in
similar locations at the same time
also known as project environment, it includes the economic climate
during the project, keenness of competition, availability of services and
key resources, statutory requirements, client constraints and objectives.
it can also embody what is increasing known as enterprise
environmental factors
FSD
basic management principle
plan
control
FSD
execute
project life cycle

o
o
o
o
projects have a defined life

this may be broken down into stages, each with one or more defined
deliverables, that are characterised as having sequential, overlapping
or iterative relationships between them
for example, most projects have stages comprising feasibility, planning
and design, production, and turnover and start-up
while project content must take account of the life cycle of its existence,
the project in a PM context is more limited and therefore excludes
matters of operations management
in most project life cycles there is a progressive increase in activity
towards the middle of the project and then a gradual reduction until
completion
FSD
example: construction life cycle
activity
handover
commissioning
construction
design
feasibility
FSD
project stakeholders
o
o
o
stakeholders are individuals or groups of people with a vested interest

in the project
normally these will include the project manager, customer, sponsor
(client), and performing organisation
other stakeholders may comprise financiers, suppliers, contractors,
team members, controlling agencies and community action groups or
representatives
managing stakeholder expectations may be difficult because
stakeholders often have very different objectives that may come into
conflict
it is important that the project manager takes responsibility for the
interface between project decisions and stakeholders
FSD
project management qualities

o
o
o
a project manager needs to be, simultaneously, a leader, a negotiator,

a problem solver, a communicator and a manager of project
stakeholders and resources
leadership involves establishing direction (vision), aligning people (team
building), and motivating and inspiring them to perform at their best
(empowerment)
project managers need a broad understanding of all aspects of the
project, but in most cases require a cohesive team with clear delegated
responsibilities
in any team environment conflicts will arise and these need to be
managed as well
knowledge of key business and law principles is valuable
FSD
10
body of knowledge
o
o
o
o
o
o
there is a well developed body of knowledge for project management

perhaps the most well known version of this is the PMBOK Guide,
produced and maintained by the Project Management Institute (PMI)
this is a default global standard, and in its latest edition has been
aligned with ISO 21500:2012
PMBOK has ten generic knowledge areas that can be applied to
projects of various types, size and discipline field using standardised
procedures
there are also five process group phases: namely initiating, planning,
executing, monitoring and controlling, and closing
an underlying objective of project management in all its instances is to
add value while getting it right the first time
FSD
11
PMBOK history
1987
first edition (8 knowledge areas)
1996
second edition (9 knowledge areas)

major update in 2000
2004
third edition
2008
fourth edition
ISO 21500 released in 2012
2013
fifth edition (10 knowledge areas)
FSD
12
knowledge areas
o
o
o
o
o
o
o
o
o
o
o
project integration management

project scope management
project time management
project cost management
project quality management
project human resource management
project communications management
project risk management
project procurement management
project stakeholder management
project environmental management (proposed)
FSD
13
integration
o
o
o
o
o
project integration management is the coordination of all aspects of the

project into a coherent plan
this is commonly known as the project management plan
it can be characterised as a combination of good planning, execution
and control (no nasty surprises)
project success is a function of getting this integration right
setting of performance benchmarks such as delivering the project on
time, within budget and at the required quality (and safety) standard is
important
successful projects not only deliver on these benchmarks but aim to
exceed them, this adding value to the project sponsor and other
stakeholders
FSD
14
example: time-cost-quality triangle

Q
higher standards
take more time
better quality
costs more
balance
point
crashing time
adds costs
C
FSD
15
scope
o
o
o
o
o
o
o
scope management is the definition of the project and the method of

handling changes
this involves a clear statement of what is included and what is
specifically excluded from the project
a briefing document is used to understand stakeholder requirements
and objectives
scope needs to be defined and agreed, as time, cost and quality
decisions are immediately affected by a change in scope
a work breakdown structure underpins the definition of project scope
the management of change, and how this impacts on other aspects of
the project, is a key activity for the project manager
scope creep needs to be carefully watched
FSD
16
example: work breakdown structure

phases
locations
trades
within trades, activity

costs/resources can be
managed & monitored
FSD
17
time
o
o
o
o
o
o
timely completion of the project is a primary goal

this is achieved by defining the activities to be undertaken, their
sequence and durations
this leads to a schedule normally presented in two forms: one is a
precedence diagram (network analysis) showing activity duration,
earliest and latest start/finish dates, float and the logic of activity
sequencing, while the second is a bar chart (Gantt chart) assigning
these activities to a calendar grid
the critical path method (CPM) is used to identify the activities that
determine the total project duration (i.e. paths of no float)
control of planned to actual performance is an ongoing task
time management takes into account available resources
FSD
18
example: network analysis
critical path
FSD
19
example: Gantt chart

activity a
activity b
activity c
activity d
activity e
activity f
activity g
activity h
activity i
activity j
activity k
FSD
time
20
cost
o
o
o
o
o
o
cost is also a primary goal, and is about ensuring that the project is
delivered within an agreed budget
each activity in the project schedule needs to be estimated and
resources (labour, material, equipment, etc) allocated
resource levelling takes place to ensure that times of intensive activity
and potential resource conflict are minimised
actual costs can be compared against estimated values to monitor
performance and initiate remedial action if necessary
performance is summarised via an s-curve graph which highlights the
project cash flow and timing using a calendar grid
the management of contingencies helps offset unexpected activity
overruns
FSD
21
example: expenditure analysis
planned
cost
actual
FSD
time
22
quality
o
o
o
o
quality management is a technique used to ensure that the project

meets or exceeds the required quality standards
it comprises quality planning (strategies for achievement), quality
assurance (monitoring performance) and quality control (compliance
with standards) over the project life
issues of occupational health and safety form an integral part of quality
management
continuous quality improvement should be the underpinning philosophy
on all projects, and is commonly known as total quality management
(TQM)
minimisation of defects and costly rectification work is a priority on most
projects
FSD
23
example: the improvement cycle

plan
review
execute
control
FSD
24
human resource
o
o
o
o
o
o
people are at the core of most PM processes

complex projects require a team of people who take on a range of roles,
all coordinated by the project manager
a hierarchy of human resources is established and responsibilities
delegated down to individuals who are assigned particular sub-tasks
teamwork thus becomes critical
roles, responsibilities and reporting protocols need to be clearly defined
at the outset
key activities therefore comprise selection of the right people,
development of their skills and management of their interaction within
the project team
effective leadership is paramount
FSD
25
example: organisational structures

chief
executive
project
managers
project
teams
FSD
26
communications
o
o
o
o
o
o
communications is about information management

this requires processes to ensure timely and appropriate generation,
collection, dissemination, storage and ultimate disposal or transfer of
project information
communications planning is required to determine who needs what
information, when they need it and how it will be provided
information distribution will require systems to ensure that proper
records and audit trails are established
communications also include performance reporting so that up-to-date
information on a projects status is available
plans for administrative closure and handover are also required
FSD
27
example: communications strategy
project
manager
FSD
project
team
28
risk
o
o
o
risk management plans are used to identify, analyse and respond to

potential project risks
risk identification determines which risks are likely to affect the project
and documents the characteristics of each
risk analysis involves evaluating risks and risk interactions, either
quantitatively or qualitatively, to assess the range of possible project
outcomes
risk response comprises the planning of strategies for minimising,
treating (or accepting) and avoiding risk, including contingency and
disaster recovery plans
often overlooked is the need to continually review changes to project
risk profiles arising from new external threats
FSD
29
example: risk sensitivity

value
cost
quality
time
change (-%)
FSD
change (+%)
30
procurement
o
o
o
o
o
procurement management is the process of acquiring goods and

services from outside the performing organisation
this involves planning (determining what to procure and when),
solicitation (obtaining quotes for work), source selection (evaluating and
engaging), contract administration (managing the relationship, including
variations and progress payments), and contract finalisation (closing the
transaction)
the type of project delivery method (e.g. lump sum, cost plus, public
private partnership, etc) is a critical upfront decision
project financing strategy may form part of the overall procurement
process
costly or time-sensitive contracts require specific attention
FSD
31
example: modern building projects

client
organisation
facilities
manager
development
manager
project
manager
FSD
design
manager
construction
manager
design
team
subcontractors
32
stakeholder
o
o
o
o
o
stakeholder management was originally considered to be part of

communication management
the fifth edition of PMBOK (published in 2013) has elevated stakeholder
management to its own discrete knowledge area
this has ensured greater alignment between PMBOK and ISO
21500:2012
nevertheless, many practitioners consider stakeholder management to
still be part of their communication strategy
the key processes involved in the new knowledge area comprise
identification of the relevant stakeholders, development of an effective
stakeholder plan, managing engagement and controlling outcomes to
benefit the project
FSD
33
example: stakeholder relationships

end user
outwards
project
sponsor
outwards
environment
upwards
opportunities
and threats
backwards
project
manager
forwards
experience
downwards
industry
FSD
outwards
project
team
outwards
society
34
environmental
o
o
o
perhaps project management needs to be extended to take better

account of the increasing requirement for environmentally sustainable
development (ESD)
strategies that minimise waste, use non-renewable resources sparingly,
limit impact on the surrounding environment, recycle used materials,
and reduce energy demands and greenhouse gas emissions through
better design and production are contemporary goals
the importance of these matters may require specific plans to be
developed in excess of conventional quality and scope management
activities
a triple bottom line approach should be applied to all projects
this is something to consider in future editions of PMBOK
FSD
35
example: triple bottom line

environmental
financial
social
FSD
36
event management
o
o
o
o
events are no more than specific types of projects

the discipline of project management applies equally well to the
management of events, such as public concerts and exhibitions,
introduction of new products or services, or the relocation of business
operations to a new facility
event management underscores the generic nature of project
management
while events may not lead to the creation of a permanent physical
asset, they usually involve the integration of all core PM knowledge
areas and are ultimately judged using similar criteria such as delivery
on time, within budget and up to the agreed standard
work on an event management body of knowledge (EMBOK) has
occurred
FSD
37
agile projects
o
o
o
agile project management is a new area of development for the

profession
they may be described as change-driven and are intended to respond
to high levels of change and ongoing stakeholder involvement
they are of interest because standards like PMBOK have been criticised
for being too oriented towards upfront planning, when in many cases a
more nimble approach is necessary
a good example of this is responding to an emergency or natural
disaster, and although disaster contingency plans are prepared well in
advance, their execution needs to be aligned to daily events and
priorities
agile projects conform to a manifesto that outlines core principles
FSD
38
project portfolio and program management

o
o
o
o
o
portfolios are defined as collections of projects

portfolio management therefore is the administration of a number of
concurrent projects
programs are subsets of portfolios involving common objectives and
organisational control
interactions occur between portfolios, programs and projects at a
number of levels
organisational planning impacts projects due to prioritisation based on
high level considerations such as risk exposure, financing and overall
strategic direction
project portfolio managers are a new breed of project managers that
are an integral part of the organisational hierarchy
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39
PMBOK Guide (Fifth Edition), p.5
organisational setting
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40
the future of project management

o
o
o
o
o
o
o
project managers will always be in demand

they are well paid professional advisors with significant responsibility
the profession arose from a necessity to deal with the increased
complexity of construction and engineering projects and to coordinate
teams
some organisations now use a manage by project philosophy
in the built environment, the beginnings of a merge between facilities
management and project management functions is evident
this nexus creates new opportunities for professional advisors to adapt
to changing needs and continually add value to business organisations
the role of project management in disaster recovery is also an emerging
area of concentration
FSD
41
education implications
o
o
o
o
o
o
project management is a discipline that can be taught as an

undergraduate or postgraduate course
nevertheless, it requires considerable industry experience to practice at
a senior level
for this reason, most project managers start out in another field, such as
construction management, and move up through their organisations
over time
interestingly, much the same applies to facilities managers and
development managers
educational requirements are therefore a relevant starting degree, plus
continuous professional life-long learning
industry certification is common
FSD
42

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Copyright (C) Craig Langston 2015

SSUD71-103: Principles of Project Management

Copyright (C) Craig Langston 2015

Copyright (C) Craig Langston 2015

project management (PM) is a professional discipline that arose from

Copyright (C) Craig Langston 2015

projects are goal-oriented each project has the objective of creating

Copyright (C) Craig Langston 2015

the project context refers to the immediate surroundings of the project,

Copyright (C) Craig Langston 2015

basic management principle

Copyright (C) Craig Langston 2015

project life cycle

projects have a defined life

Copyright (C) Craig Langston 2015

example: construction life cycle

Copyright (C) Craig Langston 2015

stakeholders are individuals or groups of people with a vested interest

Copyright (C) Craig Langston 2015

project management qualities

a project manager needs to be, simultaneously, a leader, a negotiator,

Copyright (C) Craig Langston 2015

there is a well developed body of knowledge for project management

Copyright (C) Craig Langston 2015

first edition (8 knowledge areas)

second edition (9 knowledge areas)

fifth edition (10 knowledge areas)

Copyright (C) Craig Langston 2015

project integration management

Copyright (C) Craig Langston 2015

project integration management is the coordination of all aspects of the

Copyright (C) Craig Langston 2015

example: time-cost-quality triangle

Copyright (C) Craig Langston 2015

scope management is the definition of the project and the method of

Copyright (C) Craig Langston 2015

example: work breakdown structure

within trades, activity

Copyright (C) Craig Langston 2015

timely completion of the project is a primary goal

Copyright (C) Craig Langston 2015

example: network analysis

Copyright (C) Craig Langston 2015

example: Gantt chart

Copyright (C) Craig Langston 2015

Copyright (C) Craig Langston 2015

example: expenditure analysis

Copyright (C) Craig Langston 2015

quality management is a technique used to ensure that the project

Copyright (C) Craig Langston 2015

example: the improvement cycle

Copyright (C) Craig Langston 2015

people are at the core of most PM processes

Copyright (C) Craig Langston 2015

example: organisational structures

Copyright (C) Craig Langston 2015

communications is about information management

Copyright (C) Craig Langston 2015

example: communications strategy