Fundamentals of Project

Management
 Learning Outcomes
• Define a project and compare it with business-as-usual
• Define project management and compare it with other types of
management
• Outline the role of the project management
• The concept and role of product, project and operations life cycles.
• The Life cycle approach in the structuring of projects.
• Simple project life cycles.
• How to decompose a project into manageable components or parts.
•

• What is a Project?
 What is a Project?

• PMBOK
• ‘…. A temporary endeavour undertaken to create
a unique product or service (outcome or result).
Temporary means that every project has a definite
end. Unique means that the product or service is
different in some distinguishing way from all
similar products or services….’
• A project is an activity to meet the creation
of a unique product or service and thus
activities that are undertaken to accomplish
routine activities cannot be considered
projects
 Features of a project:

• A project has a client and/or a project

sponsor
• A project has stakeholders
• A project has a lifecycle
• A project has a project charter
• A project has a project manager
• A project is non-repetitive
• A project has a unique scope
 Features of a project:

• A project has a procurement schedule

• A project uses resources
• A project has budget
• A project has cash-flow statement
• A project is confronted by risks
• A project has a quality requirement
• Project has an Organization Breakdown
Structure
 Features of a project:

• The Work Breakdown Structure technique

is used
• A project is temporary
• Projects are run by good communication
• A project has a project team
 •

• Project Work Vs Production Line Work

 Project Work Vs Production Line Work

• One way to define project work is to

compare it with production line work,
where project work is temporary and
unique, and production line work is on
going and repetitive.
 Project Work Vs Production Line Work

• An on going work effort is generally a

repetitive process that follows an
organization’s existing procedures. In
contrast, because of the unique nature of
projects, there may be uncertainties or
differences in the products, services, or
results that the project creates.
 Project Work Vs Production Line Work

• Project activities can be new to members of

a project team, which may necessitate more
dedicated planning than other routine work.
In addition, projects are undertaken at all
organizational levels. A project can involve
a single individual or multiple individuals,
a single organizational unit, or multiple
organizational units from multiple
organizations.
 Types of Projects

• Construction Projects
• Defence Projects
• IT Projects
• Product Development Projects
• Advertising and marketing Projects
• Research Projects
Construction Project
 Types of Projects

• Banking Projects
• Up-Grade Projects
• Event Management
• Sports Events
• Music Concerts
• Fashion Shows
• Disaster Recovery Projects
•

• What is Project Management?

What is Project Management?

• PMBOK 4ed
• ‘the application of knowledge, skills, tools,
and techniques to project activities in
order to meet project requirements’
 What is Project Management?

• PMBOK; 5ed
• ‘….the application of knowledge, skills,
tools and techniques to project activities in
order to meet stakeholder’s needs and
expectations from a project….’
 What is Project Management?

• Project Management is the discipline of

organising and managing resources (e.g.
people) in such a way that the project is
completed within defined scope, quality,
time and cost constraints.
 Types of Management

• Programme Management
•

The PMBOK 4ed defines a program as a

group of related projects managed in a
coordinated way to obtain benefits and
control not available from managing
them individually.
 Programme Management

The PMBoK 5ed defines Programme

Management as a group of related projects,
which may include business-as-usual
activities, that together achieve a beneficial
change of a strategic nature for an
organization.
 Types of Management

• Portfolio Management
The PMBOK 4ed defines Portfolio as, a
collection of projects or programs and other
work that are grouped together to facilitate
effective management of that work to meet
strategic business objectives. The projects
and programs of the portfolio may not
necessarily be independent or directly
related
 .
• The projects or programs of the portfolio
may not necessarily be interdependent or
directly related. For example, an
infrastructure firm that has the strategic
objective of “maximizing the return on its
investments” may put together a portfolio
that includes a mix of projects in oil and
gas, power, water, roads, rail, and airports.
From this mix, the firm may choose to
manage related projects as one program
 Technical Management
This refers to technical skills and product
knowledge required to design and
manufacture the product or project. Every
profession requires a unique range of
technical skills and competencies in order for
the work to be carried out. On smaller
projects the project manager might be
expected to be the expert as well as the
project manager.
 General Management
General Management A successful project
manager and project team members must also
be competent in a wide range of general
management skills which include the
following:
• Staffing
• Customer service
• Computer systems/ electronic filing
• Legal contracts
• Personnel and human resources
• Sales and marketing
 Project Management Environment

Projects are not carried out in a vacuum; they

are influenced by the project environment.
For project managers to be effective they
must have a thorough understanding of the
project’s environment.
 Project Management Environment
The following are topics that are found
in the project’s environment:
• The needs and expectations of a range of stake
holders (and interested parties)
• The clients and project sponsors requirements
• The companies organizational structure
• Competitors’ products and pricing strategy
• New technology
• Rules and regulations
• The economic cycle
Project Management
Environment
Project Management Environment
 Role of the Project Manager

The project manager is central to the success or

failure of the project. The project manager often has
to rely on functional managers for resources, while
faced with delivering on the project within set
constraints. Hence the project manager must exhibit
various skills, for example, leadership, and problem
solving, negotiation, expedition and change control.
Client satisfaction remains the ultimate goal of the
project manager
 Role of the Project Manager

• Ability to develop a Project Team

• Ability to Lead, Motivate and manage a team
• Ability to Solve Problems
• Ability to address Stakeholders needs and
expectations
• Ability to Respond to changing situations
• Ability to Plan & Expedite
 Role of the Project Manager

• Ability to Negotiate
• Ability to understand the Environment
• Ability to Monitor and Control projects
• Ability to administer Contracts
• Ability to manage Scope Changes
• Ability to Closeout a project
Benefits of Project Management

• Single Point of Responsibility

• Client and Project Sponsor Focused
• Identify Stakeholders
• Clear Goals and Objectives
• WBS – Manageable Work Packages
• Better Estimating
Benefits of Project Management
• Fast Tracking
• Project Integration
• Response Time
• Trends
• Monitor and Control
• Data Capture
• Procedures
• Quality Management
• Closeout Reports
 Review Questions

1) Explain how Project Management can be

applied to your company projects
2) Explain what Project Management is, and
why it is different to other forms of
management
•

HISTORY OF PROJECT MANAGEMENT

• Nearly all special project management techniques
were developed during the 1950s and 1960s by the US
defence.
• Some of these techniques include the Program
Evaluation and Review Technique (PERT),
Configuration Management, Value Engineering
and Work Breakdown Structures (WBS).
 Program Evaluation and Review
Technique (PERT)
A technique for estimating that applies a weighted
average of optimistic, pessimistic, and most likely
estimates when there is uncertainty with the
individual activity estimates.
The PERT technique estimates activity duration
based on a three time probabilistic model.
Over time, several other techniques such as the
Critical Path Method (CPM) and Earned Value (EV)
have gained prominence over PERT
PERT
 Project Management triangle

This refers to time, cost and quality as a

triangle of balanced requirements that
influence one another.
Further, the scope, organization break down
structure, and the project environment were
added to obtain the more comprehensive
Project Environment Model.
Time, Cost Quality Triangle
Project Management Body Of Knowledge
(PMBOK).

Over the past years considerable body of

knowledge has been built up around project
management tools, skills, techniques and
processes. This database of information has
been developed into what the project
management institute (PMI) call the project
management body of knowledge (PMBOK).
Project Management knowledge areas
(according to PMBOK)
• Project Scope Management – what is in; what is out?
• Project Time Management - scheduling
• Project Cost Management
• Project Quality Management
• Human Resource Management
• Project Communications Management
• Project Risk Management
• Procurement Management
• Project Integration – linking planning, execution and
control
 CERTIFICATION OF PROJECT
MANAGERS (PMP)
• The certification process offers a means for
experienced project managers to gain formal
qualification in project management.
• There is a trend to move away from knowledge
based examinations towards competence based
examination.
• This allows a person’s skills and ability to be
tested instead of mere knowledge.
• The certification offered by the PMI is called the
project management professional (PMP).
 Activity

1) List and explain, in your own words, the 9

knowledge areas of project management.
2) Which 4 of the 9 knowledge areas
determine the deliverable objective
3) Discuss how the PMBOK’s nine
knowledge areas relate to your projects?
 Project Integration Management

PMBoK defines integration as, the process of

bringing people, activities and other things
together to perform effectively
Project Integration Management
Fayol’s Management Process

The first record management process can be

traced to a French industrialist, Henri Fayol, who
in 1916 presented his management process that
consisted of the following
• Planning
• Organizing
• Commanding
• Directing
• Controlling
 Fayol’s Management Process

Where each process was described as:

• To forecast and plan: examine the future and draw up
plans of action
• To organize: build up the structure, material and human of
the undertaking
• To command: maintain activity among the personnel
• To co-ordinate: bind together, unify and harmonise
activity and effort
• To control: see that everything occurs in conformity with
policy and practise
 Project Management Process

The PMBOK states that project management

is accomplished through processes which it
defines as a set of interrelated actions and
activities that are performed to achieve a pre-
specified state of objectives, product, results
or services.
Project Management Process
 Initiating Process

• Project Charter
• Feasibility Study
• Stakeholders Analysis
 Planning Process

• Input (All the Individual Plans)

• Process (Integration Management)
• Output (Project Plan)
 Executing, Monitoring and Controlling
Process

• Input (Project Plan)

• Process (Issue Instructions / Monitor)
• Output (Progress Report)
 Closing Process

• Input (Project Plan)

• Process (Commissioning)
• Output (Certificate of Completion /
Closeout Report)
 Activity

1) Develop a project management process for

a project you are familiar with
 Project Management Plan

The planning and control cycle is an

important outcome of the planning process. It
helps to establish the baseline plan (what is to
be done) as well as how the work will be
authorized, monitored and controlled. Proper
planning is important in highlighting expected
contributions from various stakeholders so
that these can be effectively communicated. It
also helps in achieving buy-in from
stakeholders, if they are engaged from the
planning stage
 Project Management Plan

The PMBOK 4ed defines the project

management plan as, the process of
documenting the actions necessary to define,
prepare, integrate, and co-ordinate all
supporting plans. The project management
plan then becomes the main source of
informing for the project management process
(initiation, planning, execution and closing).
 What is a Plan?
A plan is a set of intended actions or steps,
through which the project manager expects to,
achieve a predefined goal or objective
The planning process prompts the project
manager to ask the question
• Why
• What
• When
• Where
• Who
• How-To
• How-Much
 PROJECT PLANNING DOCUMENTS

• Project Trigger
• Statement of requirements
• Project Charter
• Feasibility Study
• Scope Management
 PROJECT PLANNING DOCUMENTS

• Configuration Management
• Estimating Time
• Scope Management
• WBS
• Gantt Charts
 PROJECT PLANNING DOCUMENTS

• Execution Strategy – Buy or Make decision

• Procurement Schedule
• Contract
• Project Budget
• Project Cashflow
 PROJECT PLANNING DOCUMENTS

• Risk Management Plan

• Communication Plan
• OBS
• Project Quality Plan
• Baseline Plan - PMP
 Activity

Develop a baseline plan for your project.

 Project Life Cycle

The Project Life Cycle refers to a logical

sequence of activities to accomplish the
project’s goals or objectives.
Regardless of scope or complexity, any
project goes through a series of stages during
its life.
The PMBOK 4ed states, because projects are
unique and involve a certain degree of risk,
companies performing projects will generally
sub-divide their projects into several project
phases to provide better management control.
Collectively these phases are called the
project life cycle.
• There is first an Initiation or Birth phase,
in which the outputs and critical success
factors are defined, followed by a Planning
phase, characterized by breaking down the
project into smaller parts/tasks, an
Execution phase, in which the project plan
is executed, and lastly a Closure or Exit
phase, that marks the completion of the
project.
Project activities must be grouped into phases
because by doing so, the project manager and
the core team can efficiently plan and
organize resources for each activity, and also
objectively measure achievement of goals and
justify their decisions to move ahead, correct,
or terminate.
Project Lifecycle (4 Phases)
Project Lifecycle (4 Phases)
Level of Effort
Fast Tracking
Lifecycle Methodology
FUNDAMENTALS OF PROJECT
MANAGEMENT

DAY 2
 Network Analysis

Network analysis is a general term, referring 
to various techniques adopted  to plan and 
control projects. It is used to analyse the inter­
relationships  between the tasks identified by 
the work breakdown structure and to define 
the dependencies of each task
Activity
 Limitations of CPA

• It may be too time consuming to produce 
and monitor for large projects.
• Difficult to use for less routine projects wit
hlots of uncertainty.
• Overly complex for some smaller short­
term projects
 Benefits of CPA
• Assists in identifying all activities required for completing the project
• It will assist in identifying those activities that need to be completed 
before the next activity can start (dependent activities), and those that 
can happen at the same time (parallel activities)
• The network diagram will identify those activities that lie on the 
critical  path. These activities cannot overrun, otherwise there would 
be delays  in the overall project.
• The network diagram will identify those activities that are non­critical 
and exhibit float or buffer. This allows management to rank 
each activity  in relation to how much flexibility is available.
• The network diagram will show the minimum completion time for the 
project, and will allow for sensitivity analysis to be introduced into the 
project
Critical Path Method or Critical Path Analysis
 WBS

WBS is the process of subdividing project

deliverables and project work into smaller,
more manageable components.

The key benefit of this process is that it

provides a structured vision of what has to be
delivered
 WBS

The WBS is an important starting point for  planning. It 
contributes to  planning in the  following ways: 
• Breaks complex tasks into manageable pieces
• Sets out the logical sequence of project events
• Provides a logical framework for making decisions
• Provides an input into subsequent project processes, such 
as  estimating time and resources.
• Provides a communication tool.
 Decomposition
Decomposition is a technique used for dividing and
subdividing the project scope and project
deliverables into smaller, more manageable parts.
The work package is the work defined at the lowest
level of the WBS for which cost and duration can be
estimated and managed.
The level of decomposition is often guided by the
degree of control needed to effectively manage the
project
 Decomposition

Decomposition of the total project work into work packages

generally involves the following activities:

• Identifying and analyzing the deliverables and related work;

• Structuring and organizing the WBS;
• Decomposing the upper WBS levels into lower-level detailed
components;
• Developing and assigning identification codes to the WBS components;
and
• Verifying that the degree of decomposition of the deliverables is
appropriate
 Expert Judgment

Expert judgment is often used to analyze the

information needed to decompose the project
deliverables down into smaller component parts in
order to create an effective WBS.

Such judgment and expertise is applied to technical

details of the project’s scope and used to reconcile
differences in opinion on how to best break down the
overall scope of the project
 WBS

WORK PACKAGE
• The lowest level of a WBS.
• It contains a collection of work activities
that can be assigned to a specific team or
individual for execution of the work.
 WBS
• The best method to create a WBS is to use sticky notes with the team to
break the project down (decompose the project) into smaller, more
manageable pieces.
• Though human resources may not be completed identified at this stage,
it is best to create a WBS with as close as possible to the final team, as
a group.
•

• At a minimum, this improve buy-in and project quality, and decreases

project risk.
 WBS
• Keep in mind that each level of the WBS is a smaller segment of the
level above, and that the entire project is included in each of the
highest levels of the WBS.
•

• Some levels will eventually be broken down further than others.

WHY BOTHER CREATING THE WBS?
 WBS
• Facilitates communication and cooperation between and among the
project team and other stakeholders.
• Helps prevent changes.
• Focuses the team's experience on what needs to be done resulting in
higher quality and a project that is easier to manage.
• Provides a basis for estimating staff, costs, and time.
• Provides PROOF of the need for staff, budget, and time.
• Gets them buy-in and builds the team.
• Can be reused for other project
 Common problems withWBS

Difficulty breaking down some parts of the WBS

it is usually not a problem with the concept of a
WBS, but rather a problem with the clarity of the
scope.
 Activity

Create a WBS for the project of your choice,

preferably related to your work area… .
Gantt Charts
 Gantt Charts

Gantt charts, represent schedule information

where activities are listed on the vertical axis,
dates are shown on the horizontal axis, and
activity durations are shown as horizontal bars
placed according to start and finish dates
 Bar Charts

Charts are relatively easy to read, and are

frequently used in management presentations.
For control and management
communications, the broader, more
comprehensive summary activity, is used
between milestones or across multiple
interdependent work packages, and is
displayed in bar chart reports.
 Gantt Charts

• Visual scheduling tool

• Graphical representation of information
• Show dependencies between tasks,
personnel, and other resources allocations
• Track progress towards completion
 Building a Gantt Chart
• List all tasks and milestones from the
project along the vertical axis
• List time frame along the horizontal axis
Time Frame: day 1 day 2 day3

Activity 1
Activity 2
Milestone
Sequence of Activities of The Project - House
Building
Gantt Chart for House Building Project
 Benefits of Gantt charts
1. Easy to create and comprehend
2. Identify the schedule baseline network
3. Allow for updating and control
4. Identify resource needs