Course: Project Management

(PLM 512)

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 Course Objectives
At the end of this course, the students should be able to:

a) Define the concept of a “project” and the practice of “project management” from
multiple perspectives, and explain the differences between those perspectives;

b) Describe project and project management concepts;

c) Discuss steps involved in a project cycle;

d) Apply project selection and identification criteria to select project;

e) Describe techniques of project planning, directing, and co-ordination;

f) Apply Project Management tools (Critical Path Method and Project Evaluation
Review Technique) to evaluate/judge projects; and

g) Develop skills to design control systems for monitoring and implementation of a

project.

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 1. Basic Concepts of project management
2. Initiating Projects
3. Planning Projects
4. Executing Projects
5. Monitoring and Controlling Projects
6. Closing Projects
7. Best Practices in Project Management

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Mode of Assessment:

• Assessment 1: Assignments(Individual) - Weighting: 40%

• Task : Writing a full-fledged project proposal

• Assessment 2: Project Assignment (Individual) - Weighting: 20%

• Task : Course content based assignment

• Assessment 3 : Final Examination (Individual) - Weighting: 40%

• Task : Final examination assesses student performance in relation to the
achievement of all objectives of the course

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 Chapter One

Basic concepts of Project Management

Contents of the chapter

1. Concepts of project and project management
2. Project Vs Program Vs Operations
3. Examining key roles in Project Management
4. Identifying the essentials for success of projects
5. Skills in Project management

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 Chapter One

The Basic concepts of Project Management

Activity questions

a. How do you understand project?

b. Is project different from business as usual? If so how?

c. How do you differentiate between project and program?

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Project Defined

• It is a temporary endeavor undertaken to create a unique

product or service (PMBoK, 2000).

• It is unique process, consisting of a set of coordinated and

controlled activities with start and finish dates, undertaken
to achieve an objective conforming to specific requirements
including constraints of time, cost and resources.

• Projects are goal-oriented, involve the coordinated

undertaking of interrelated activities, & are of finite
duration.

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 Project Defined

•World bank defined a project is as

• a proposal for an investment to create, expand and/or develop certain
facilities in order to increase the production of goods and/or services in a
community during a certain period of time.

•Project Management Institute of U.S.A defines project as:

• a one-shot, time limited, goal directed, major undertaking,

requiring the commitment of varied skills and resources.

• a combination of human and non-human resources pooled

together in a temporary organization to achieve a specific
purpose.

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Important concepts in the definition a project

1. Sequence of activities: a project is comprised of a series of

activities that follow one after the other
2. Unique activities: activities in a project are typical to the
project
3. Complex activities: The activities that make up the project
are not simple and repetitive actions
4. Connected activities: logical or technical relationship
between pairs of activities.
5. Specific goal: the goal of a particular project is specific to it.
Multipurpose projects are normally called programs.
6. Specific duration/completion time
7. Within a budget
8. According to specification

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General Project Characteristics

• Established objectives

• Specific Purpose

• Specified Time with a beginning and an end

• Involves several departments and professionals

• Uniqueness : It involves typically doing something that has never been

done before (Novel).

• Connected Activities

• Interdependency

• Stakeholders

• Lifecycle
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Cont...
Unique: accomplishment of specific purpose
Specific deliverable in terms of outputs
Specific due date
Multidisciplinary in nature (involves different types
of professionals)
Complex in nature (activities are not routine)
Conflict
Part of programs
Needs capital and commitment of other resources
Collection of activities that generates benefits in the
long run
Associated with risk and uncertainty
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 What is not a project?

Projects should not be confused with everyday

routines.

A project is different from daily routines that

involve repetitive work!

Ordinary daily work typically requires doing the

same or similar work over and over,

while a project is done only once; a new product or

service exists when the project is completed.
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 Comparison of daily Routine Work with Projects

Routine, Repetitive Work Projects

 Taking class notes  Writing a term paper
 Responding to a supply-chain  Developing a supply-chain information
request system
 Routine manufacture of an Apple  Designing an iPod that is approximately 2 X
iPod 4 inches, interfaces with PC, and stores 10,000
 Attaching tags on a manufactured songs
product  Wire-tag projects for Wal-Mart

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 Comparison of Programs and Projects

Program Project
An organizing framework A process for delivering a specific
outcome
May have an indefinite time horizon Will have a fixed duration

Evolve in lines with business needs Has set objectives

May involve the management of Involve the management of single

multiple related deliveries deliveries
Focus on meeting strategic or extra- Focus on delivery an asset or
project objectives change
Program manager facilitate the Project manager has single point
interaction of numerous managers responsibility for project’s success
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 Program versus Project
In practice the terms project and program cause confusion. They are often used
synonymously.
A program is a group of related projects designed to
accomplish a common goal over an extended period of
time.
Each project within a program has a project manager. The
major differences lie in scale and time span.
A program is defined as a group of related projects,
which may include related business-as-usual activities that
together achieve a beneficial change of a strategic nature
for an organisation.
It is a group of related projects managed in a coordinated
way to obtain benefits. Programmes may include elements
of related work outside the scope of the discrete projects in
a programme
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Cont...

A programme is also defined as a temporary flexible organisation

created to coordinate, direct and oversee the implementation of a set
of related projects and activities in order to deliver outcomes and
benefits related to the organisation’s strategic objectives.
A programme is likely to have a life that spans for several years.
Program management is the process of managing
a group of ongoing, interdependent, related projects
in a coordinated way to achieve strategic objectives.

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Portfolios Vs Programmes

Portfolios are collections of programs and projects that support a

specific business goal or objective.
Let’s say consider a company in the construction business. The
company may have several business units such as retail, single-family
residential, and multifamily residential.
Each unit may have different projects that are inter-related, which will form a
programme but different from the projects in other units.
Collectively, the projects and the programmes within all of these business
units make up the portfolio.

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Project, Programme and Portfolio

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Cont...

Programs and projects within a portfolio are not necessarily related to

one another in a direct way.
However, the overall objective of any program or project in this
portfolio is to meet the strategic objectives of the portfolio, which in
turn should meet the objectives of the department and ultimately the
business unit or corporation.

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Cont...

Programs are collections of related projects.

Portfolios consist of programs, projects, and other
portfolios that meet a business objective.
Projects or programs within a portfolio are not
necessarily related or dependent on each other.

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 Types of Projects
The principal identifying characteristic of a project is its novelty. It is a
step into the unknown, which is fraught with risk and uncertainty.
No two projects are ever exactly alike: even a repeated project will differ
from its predecessor in one or more commercial, administrative or physical
aspects.

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29/07/2022 23
Cont...

Project Type 1: civil engineering, construction,

petrochemical, mining and
quarrying
These types of projects:
 incur special risks and problems of organization.
they may require massive capital investment, and they
deserve (but do not always get) rigorous management of
progress, finance and quality.
operations are often hazardous so that health and safety
aspects demand special attention, particularly in heavy
work such as construction, tunnelling and mining.
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Cont...
Project Type 2: Manufacturing
Manufacturing projects result in the production
of a piece of mechanical or electronic
equipment, a machine, ship, aircraft, land
vehicle, or some other product or item of
specially designed hardware.
The finished product might be purpose-built for
a single customer but internal research and
development projects for products to be sold in
all market sectors also fall into this
manufacturing category.
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 Cont...
Project Type 3: IT projects and projects associated with
management change
Every company, whatever its size, need this type of
project at least once in its lifetime.
These are the projects that arise when companies engage
in operations that involve the management and
coordination of activities to produce an end result that is
not identifiable principally as an item of hardware or
construction. This may happen when:
companies relocate their headquarters,
restructure the organization,
develop and introduce a new computer system,
launch a marketing campaign,
produce a feasibility or other study report, and
prepare for a trade exhibition.
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 Cont...
Project Type 4: Pure scientific research projects
Pure scientific research projects (should not be confused with
research and development projects) are truly a special case. They
occasionally result in dramatically profitable discoveries.
They can consume vast amounts of money over many years, yet
yield no practical or economic result.
They carry the highest risk because they attempt to extend the
boundaries of current human knowledge.
The project objectives are usually difficult or impossible to
define and there may be no awareness of the possible outcome.
Therefore, pure research projects are not usually amenable to the
project management methods that can be applied to industrial,
manufacturing or management projects.

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Project objectives
•The four project objectives are related to each
other by the following equation:

•performance: The quality of the work being

done.
•cost: The cost of project work, directly related to
the human and physical resources applied.
•time: The schedule that must be met.
•scope: The magnitude of the work to be
performed.

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•In addition, if project work extends
beyond an optimum time, costs increase
because people are not working
efficiently.
•Some senior managers believe that if
enough people are thrown at a project, it
can be completed in whatever time is
desired.
•This is simply not true, but the idea is the
cause of many project fiascos.

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• What the equation says is that cost is a function ( f ) of
performance (P), time (T), and scope (S).
• As P and S increase, cost generally increases.
• The relationship between time and cost, however, is not linear.
As a rule, cost increases as the time to do the project decreases
below a certain optimum time.
• That is, there exists a project duration that results in the best
performance of all resources.
• If the duration is shortened, it is often necessary to pay
premium labor rates as a consequence.
• Further, worker errors often increase, resulting in costs for
corrections, and productivity often declines.
• Studies have shown that if a knowledge worker spends twelve
hours of overtime on a job, the actual increase in output is
equivalent to that normally obtained in two hours of regular
work.
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 Project Management and leadership
• The words leadership and management are often
used interchangeably. However, they are not
synonymous.
• The word management is more closely associated
with directing another person to get from one point
to another using a known set of expected behaviors.
• In contrast, leadership involves working with others
through discussion or debate in order to guide them
from one point to another.
• The method that a project manager chooses to
employ reveals a distinct difference in behavior, self-
perception, and project role.
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29/07/2022 32
 Project Management
• Project Management is the skills, tools and
management processes required to undertake a
project successfully.
• It is the application of a set of principles, methods, and
techniques to effectively plan and control a project work.
Project management is the discipline of planning,
organizing and managing resources to bring about the
successful completion of specific project goals.
It is accomplished through the application and
integration of the project management processes of
initiating, planning, executing, monitoring and
controlling, and closing.
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Project management components

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• A set of skills. Specialist knowledge, skills and
experience are required to reduce the level of risk
within a project and thereby enhance its likelihood of
success.
• A suite of tools. Various types of tools are used by
project managers to improve their chances of success.
Examples include document templates, registers,
planning software, modelling software, audit checklists
and review forms.
• A series of processes. Various processes and
techniques are required to monitor and control time,
cost, quality and scope on projects. Examples include
time management, cost management, quality
management, change management, risk management
and issue management.

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 Cont...
Project management establishes a sound basis
for effective planning, scheduling, resourcing,
decision-making, controlling, and re-planning.
Project management principles and techniques
help complete projects on schedule, within
budget, and in full accordance with project
specifications.
At the same time, it helps to achieve other goals
of the organization, such as productivity,
quality, and cost effectiveness.
The objective of project management is to
optimize project cost, time, and quality.
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Cont...
Project management is the
application of modern management
techniques and systems to the
execution of a project from start to
finish, to achieve predetermined
objectives of scope, quality, time and
cost, to the equal satisfaction of those
involved.
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 The Balance Quadrant

In some literature project constraints also include, but not limited to:
Scope, Quality, Schedule, Budget, Resources, and Risk.

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Interdependence of Project Constraints

What is interdependency of constraints?

The relationship among these factors [the constraints]
is such that if any one factor changes, at least one
other factor is likely to be affected.

Example:
For example, if the schedule is shortened, often the
budget needs to be increased to add additional
resources to complete the same amount of work in
less time. If a budget increase is not possible, the
scope or quality may be reduced to deliver a product
in less time for the same budget.

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 Benefits of Project Management
1. Clear Objective
2. Risk Assessment
3. Milestones
4. Resource Allocation
5. Task Dependencies
6. Communication
7. Avoid Scope Creep
8. Client Appreciation

 Your team will know what’s going on and what is expected of

them. With clear objectives, scheduled milestones and a detailed
task list , there should be no confusion about who is to do what.

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 Skills needed by Project Managers
Project managers accomplish work through the project team and other stakeholders.
Effective project managers require a balance of ethical, interpersonal, and
conceptual skills that help them analyze situations and interact appropriately.
Therefore, Project Managers require:
 Leadership,
 Team building,
 Motivation,
 Communication,
 Influencing,
 Decision making,
 Political and cultural awareness,
 Negotiation skills
 Trust building,
 Conflict management, and
 Coaching.
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Project Management Vs General Management

General management Project management

• Responsible for managing the status
quo • Responsible for overseeing change
• Authority defined by management • Lines of authority fuzzy/unclear
structure • Ever-changing set of tasks
• Consistent set of tasks • Responsibility for cross-functional
• Responsibility limited to their own activities
function • Operates within structures which
• Works in 'permanent' organisational exist for the life of the project
structures • Predominantly concerned with
• Tasks described as 'maintenance’ innovation
• Main task is optimisation • Main task is the resolution of conflict
• Success determined by achievement • Success determined by achievement
of interim targets of stated end-goals
• Limited
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How Project Management Relates to
Other Disciplines
•Much of the knowledge needed to
manage projects is unique to the
discipline of project management
•Project mangers must also have
knowledge and experience in
•general management
•the application area of the project

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Project Cycle: Project Process Groups
From initiation/authorization to
completion/closure, a project goes through a
whole lifecycle that includes:
1. defining the project objectives (Initiation),
2. planning the work to achieve those objectives
(Planning),
3. performing the work (Execution),
4. monitoring and controlling the progress
(M&E/Controlling), and
5. closing the project after receiving the product
acceptance (Closing).
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Cont...

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 Project initiation
• The first phase of a project is the initiation phase.
• During this phase a business problem or
opportunity is identified and a business case
providing various solution options is defined.
• Next, a feasibility study is conducted to investigate
whether each option addresses the business
problem and a final recommended solution is then
put forward.
• Once the recommended solution is approved, a
project is initiated to deliver the approved solution.

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•Terms of reference are completed outlining
the objectives, scope and structure of the
new project, and a project manager is
appointed.
•The project manager begins recruiting a
project team and establishes a project office
environment.
•Approval is then sought to move into the
detailed planning phase.

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Project planning
• Once the scope of the project has been defined
in the terms of reference, the project enters the
detailed planning phase.
• This involves creating a:
project plan outlining the activities, tasks,
dependencies and timeframes;
resource plan listing the labour, equipment
and materials required;
financial plan identifying the labour,
equipment and materials costs;
quality plan providing quality targets,
assurance and control measures;
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 risk plan highlighting potential risks and
actions to be taken to mitigate those risks;
acceptance plan listing the criteria to be
met to gain customer acceptance;
communications plan describing the
information needed to inform
stakeholders;
procurement plan identifying products to
be sourced from external suppliers.

At this point the project will have been

planned in detail and is ready to be
executed.
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 Project execution
• This phase involves implementing the plans
created during the project planning phase.
• While each plan is being executed, a series of
management processes are undertaken to
monitor and control the deliverables being output
by the project.
• This includes identifying change, risks and issues,
reviewing deliverable quality and measuring each
deliverable produced against the acceptance
criteria.
• Once all of the deliverables have been produced
and the customer has accepted the final solution,
the project is ready for closure.
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Project closure
• Project closure involves releasing the final
deliverables to the customer, handing over
project documentation to the business,
terminating supplier contracts, releasing project
resources and communicating the closure of
the project to all stakeholders.
• The last remaining step is to undertake a post-
implementation review to quantify the level of
project success and identify any lessons learnt
for future projects.
• Now that you have an overall appreciation of
the project life cycle, I will explain each life
cycle phase in the following sections.
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Product, Project and Operation
Life-Cycles

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Characteristic project life-cycle model
• The project phases take their name from the
deliverables of the phase, e.g. initiate, design,
construct or handover.
• The sequence of the project phases generally involve
some form of technology transfer or handover from
one phase to the next phase, such as:
•project brief to design and development
•detailed design to manufacture
•construction to commissioning
•commissioning to operation.

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•The end of a project phase is generally
marked by are view of both the deliverables
and performance in order to determine if the
project should continue into the next phase.
•Each phase can be planned and controlled as
a mini project.
•Each phase may be performed by different
departments or companies.
•As the project progresses through the phases,
if the goals and objectives change so the
project management process should reflect
these changes.
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Level of Detail
•The project management philosophy of
sub-dividing the scope of work into a
number of smaller units to increase the
level of detail and control can also be
applied to the project life-cycle.
• Each phase can be sub-divided into a
further four phases as outlined below

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Project Life-Cycle

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•The concept phase could be sub-divided
into the following sub-phases:
•Concept: should we carry out a feasibility
study
•Design: plan the feasibility study, select
the team
•Implement: perform the feasibility study
•Commission: closeout the feasibility
study and present the report.

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 Project Management Knowledge Areas
•Knowledge areas describe the key competencies
that project managers must develop
• 4 core knowledge areas lead to specific project
objectives (scope, time, cost, and quality)
• 4 facilitating knowledge areas are the means through
which the project objectives are achieved (human
resources, communication, risk, and procurement
management)
• 1 knowledge area (project integration management)
affects and is affected by all of the other knowledge
areas
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Project management framework

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Common project management tools and
techniques by knowledge area

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knowledge area cont…

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Project Management Tools and
Techniques
• Project management tools and techniques assist
project managers and their teams in various aspects
of project management
• Some specific ones include
• Project Charter, scope statement, and WBS (work
breakdown structure) (scope)
• Gantt charts, network diagrams, critical path analysis,
critical chain scheduling (time)
• Cost estimates and earned value management (cost)

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Skills for Project Managers
Project managers and their teams must develop
knowledge and skills in the following areas:
All ten project management knowledge areas
The application area (domain, industry, market,
etc.)
The project environment (politics, culture, change
management, etc.)
General management (financial management,
strategic planning, etc.)
Human relations (leadership, motivation,
negotiations, etc.)

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The components of a project
management system.
• Human Factors
• Leadership
• Negotiation
• Team building
• Motivation
• Communication
• Decision making
• Methods
• Culture
• Organization
• Planning
• Information
• Control
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Group work
•In small groups, try to identify the
LARGEST project each of you have
been involved with.
•You do not have to have been the
project manager—if not, what was your
role? (team member, volunteer,
purchaser, ??)
•With the group, make it clear how the
project you have identified meets the
criteria

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 End of Chapter One

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