Project Management

Module 1
Project Management Foundation

Syllabus
Definition of a project, Project Vs Operations, Necessity of project
management, Triple constraints, Project life cycles (typical & atypical)
Project phases and stage gate process. Role of project manager,
Negotiations and resolving conflicts, Project management in various
organization structures, PM knowledge areas as per Project Management
Institute (PMI)

PROJECT
Definition: A unique process, consisting of a set of coordinated and controlled
activities with start and finish dates, undertaken to achieve an objectives
conforming to specific requirements, including constraints of time, cost and
resource
Examples of projects include but are not limited to:

• Developing a new pharmaceutical compound for market

• Expanding a tour guide service, Merging two organizations
• Improving a business process within an organization
• Acquiring and installing a new computer hardware system for use in an
organization
• Exploring for oil in a region
• Modifying a computer software program used in an organization
• Conducting research to develop a new manufacturing process
• Constructing a building
Characteristic of Project
 Creating a unique result: When you create the product of your project, it
is measurable. If you start a project to create a piece of software or build
a building, you can tell that software or that building from any other one
that has been produced.
 Temporary: Projects always have a start and a finish. They start when you
decide what you are going to do, and they end when you’ve created the
product or service you set out to create. Sometimes they end because you
decide to stop doing the project. But they are never ongoing.

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 Progressively elaborated: You learn more and more about a project as it

goes on. When you start, you have goals and a plan, but there is always
new information to deal with as your project progresses, and you’ll always
have to make decisions to keep it on track. While you do your best to plan
for everything that will happen, you know that you will keep learning more
about your project as you go.
 Projects drive change. Projects drive change in organizations. From a
business perspective, a project is aimed at moving an organization from
one state to another state in order to achieve a specific objective (see Figure
1-1). Before the project begins, the organization is commonly referred to
as being in the current state. The desired result of the change driven by
the project is described as the future state.

… and what a project is NOT

 Projects are NOT: always strategic or critical
 Projects are NOT: ongoing operations (or processes)
 Projects are NOT: always successful

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Operation
Definition: Operations are the ongoing execution of activities and they follow an
organization’s procedures to produce the same result or a repetitive service.
Operations are permanent in nature.
examples of operations: Production, manufacturing, and accounting
Characteristics of Operations

• Operations do not produce new things, but they are necessary to maintain
and sustain the system.
• Operations are used to run regular business models, achieve the goals of
the business, and support the business.
• Operations are different from projects, which are known for their
uniqueness.
• Operations are permanent, and their only constraint is to make a profit for
the organization.

Difference Between Project Vs Operations

Sr No Category Projects Operations
1. Definition A project is an endeavor that Operations are ongoing
is temporary in nature, that execution of activities which
is undertaken to produce a occur after product is made to
unique product. produce same result or a
repetitive service.
2. Duration It is temporary as it does not It is permanent as it only exists
exist after product is made. after product is made and can
This is because phase before go on forever. The same
a product is made includes a product is manufactured as
project. long as it has a demand or as
long as it generates profit.
3. Budget The budget is Defined for The budget is not defined for
Projects. The stake holders Operations as the earning
and management, who wish needs to be done to keep
to get a product made, operations alive. This is
specify a budget for it. because if there is a great
response for or enough
revenue and profit from
product, more such products
can be made.
4. Newness It is new (new product). A It is having nothing new. This
project is undertaken to is because it is just process of
create a new kind of product. making product in more
numbers so as to be
distributed among users.

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5. Product Unique product is created. Same product is produced to

The project is undertaken for keep system running. More
creation of a unique product. numbers of the existing
product are made for end-
users.
6. Risk It has more risk as it is done It has less risk as such
for first time. There is a risk products have already been
of failure attached because made before and it is only
specified thing has never process of creating them in
been made before. greater numbers.
7. Focus Performance is primary Efficiency is primary focus.
focus of projects. The project The entire operation must be
must be of optimal carried out in an efficient
performance and meeting manner so as to reduce
requirements specified by manufacturing time and
clients. optimizing processes for better
revenue.
8. Reasons for It can be undertaken due to It is done to run business and
Undertaking an opportunity or business sustain system.
need, Social need,
Technological enhancement,
Customer private need,
Market demand, Legal
requirements etc.
9. Existence Projects exist before product Operations exist only after
is made. This is because product is made. This is so, as
once project is completed only after one product is made,
and is out in market, can more such products be
developed.
10. Nature It is Innovative in nature. It is Repetitive in nature. The
The project is undertaken for process of making product
creation of a new product. once is again repeated for
several other products
manufacture.

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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 and integration of the project
management processes identified for the project. Project management enables
organizations to execute projects effectively and efficiently.
Effective project management helps individuals, groups, and public and private
organizations to:

• Meet business objectives

• Satisfy stakeholder expectations
• Be more predictable
• Increase chances of success
• Deliver the right products at the right time
• Resolve problems and issues
• Respond to risks in a timely manner
• Optimize the use of organizational resources
• Identify, recover, or terminate failing projects
• Manage constraints (e.g., scope, quality, schedule, costs, resources)
• Balance the influence of constraints on the project (e.g., increased scope
may increase cost or schedule)
• Manage change in a better manner.
Poorly managed projects or the absence of project management may result in:

• Missed deadlines
• Cost overruns
• Poor quality
• Rework
• Uncontrolled expansion of the project
• Loss of reputation for the organization
• Unsatisfied stakeholders
• Failure in achieving the objectives for which the project was undertaken.
Projects are a key way to create value and benefits in organizations. In today’s
business environment, organizational leaders need to be able to manage with
tighter budgets, shorter timelines, scarcity of resources, and rapidly changing
technology. The business environment is dynamic with an accelerating rate of
change. To remain competitive in the world economy, companies are embracing
project management to consistently deliver business value.

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Effective and efficient project management should be considered a strategic

competency within organizations.
It enables organizations to:

• Tie project results to business goals

• Compete more effectively in their markets
• Sustain the organization
• Respond to the impact of business environment changes on projects by
appropriately adjusting project management plans
Scope of Project Management.
What is a project scope statement?
Project scope is documented in a scope statement, which is an integral part of
any project plan. And what is a scope statement exactly? It's a written document
that is used as the basis for project decisions down the line. The scope statement
clearly delineates what is in scope (the work required). Everything else is out of
scope. What does out of scope mean in project management? Simply put, this is
anything that does not fall within the required functionalities and specifications
that are documented in the scope statement.
What is project scope management?
According to the PMBOK: "Managing project scope is primarily concerned with
defining and controlling what is and is not included in the project.”

Plan Scope
Management

Control Collect
Scope Requirements

Project
scope
management
Overview

Validate Define
Scope Scope

Create
WBS

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What is involved in project scope management?

The PMBOK recognizes six major scope management processes involved in
managing and defining a project's parameters. These are:
1. Planning scope management: A scope management plan is created based on
input from the project plan, the project charter, and consultation with
stakeholders.
2. Collecting requirements: A requirements management plan is created based
on the scope management plan plus stakeholder input. Interviews, focus group
discussions, surveys, and more will be used to understand requirements. This
will all be documented.
3. Defining scope: A project scope statement is produced based on all the
requirements documentation plus the project charter and the scope
management plan. This definition will be the basis for all project activity.
4. Creating the Work Breakdown Structure: A Work Breakdown Structure (WBS)
is built after analyzing the project scope statement and the requirements
documentation. The WBS is basically the entire project broken down into
individual tasks, and deliverables are clearly defined.
5. Validating scope: Here, deliverables are inspected and reviewed. Either they're
accepted as complete or further revisions are requested.
6. Controlling scope: As the project is executed, scope must be controlled.
Performance reports are compared against project requirements to see where
gaps exist, which may result in changes to the project plan.

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The Project Life Cycle

 A project life cycle is the series of phases that a project passes through from
its start to its completion.
 A project phase is a collection of logically related project activities that
culminates in the completion of one or more deliverables.
 The phases can be sequential, iterative, or overlapping. The names, number,
and duration of the project phases are determined by the management and
control needs of the organization(s) involved in the project, the nature of the
project itself, and its area of application.
 Phases are time bound, with a start and end or control point (sometimes
referred to as a phase review, phase gate, control gate, or other similar term).
 At the control point, the project charter and business documents are
reexamined based on the current environment. At that time, the project’s
performance is compared to the project management plan to determine if the
project should be changed, terminated, or continue as planned.
 The project life cycle can be influenced by the unique aspects of the
organization, industry, development method, or technology employed. While
every project has a start and end, the specific deliverables and work that take
place vary widely depending on the project. The life cycle provides the basic
framework for managing the project, regardless of the specific work involved.
 Though projects vary in size and the amount of complexity they contain, a
typical project can be mapped to the following project life cycle structure (see
Figure):
 Starting the project,
 Organizing and preparing,
 Carrying out the work
 Closing the project.

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Phase Gate
A phase gate, is held at the end of a phase. The project’s performance and
progress are compared to project and business documents including but not
limited to:
 Project business case
 Project charter
 Project management plan
 Benefits management plan
A decision (e.g., go/no-go decision) is made as a result of this comparison to:
 Continue to the next phase
 Continue to the next phase with modification
 End the project
 Remain in the phase, or
 Repeat the phase or elements of it.
Depending on the organization, industry, or type of work, phase gates may be
referred to by other terms such as, phase review, stage gate, kill point, and phase
entrance or phase exit. Organizations may use these reviews to examine other
pertinent items which are beyond the scope of this guide, such as product-
related documents or models

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ROLE OF THE PROJECT MANAGER

The project manager is the person assigned by the performing organization to
lead the team responsible for achieving the project objectives. The project
manager’s reporting relationships are based on the organizational structure and
project governance.
In addition to any specific technical skills and general management proficiencies
required for the project, project managers should have at least the following
attributes:
 Knowledge about project management, the business environment,
technical aspects, and other information needed to manage the project
effectively
 Skills needed to effectively lead the project team, coordinate the work,
collaborate with stakeholders, solve problems, and make decisions
 Abilities to develop and manage scope, schedules, budgets, resources,
risks, plans, presentations, and reports
 Other attributes required to successfully manage the project, such as
personality, attitude, ethics, and leadership.
Project managers accomplish work through the project team and other
stakeholders. Project managers rely on
important interpersonal skills, including, but not limited to:

 Leadership,
 Team building,
 Motivating,
 Communicating,
 Influencing,
 Decision making,
 Political and cultural awareness,
 Negotiating,
 Facilitating,
 Managing conflict, and
 Coaching.
The project manager is successful when the project objectives have been
achieved. Another aspect of success is stakeholder satisfaction. The project
manager should address stakeholder needs, concerns and expectations to satisfy
relevant stakeholders. To be successful, the project manager should tailor the
project approach, life cycle, and project management processes to meet the
project and product requirements.

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Project Management Institute(PMI)

Since it was founded in 1969, the Project Management Institute(PMI) has grown
to over 250,000 members in more than 160 countries.
The Pennsylvania-based PMI is, by far, the leading nonprofit professional
association in the area of project management. It establishes standards,
sponsors seminars, develops educational programs, has a professional
certification program, and publishes Project Management Journal and PM
Network.
The Project Management Institute, Inc. (PMI) standards and guideline
publications, of which the document contained in PROJECT MANAGEMENT
BODY OF KNOWLEDGE (PMBOK®), are developed through a voluntary
consensus standards development process. This process brings together
volunteers and/or seeks out the views of persons who have an interest in the
topic covered by this publication.
PROJECT MANAGEMENT KNOWLEDGE AREAS by PMI
The Project Management Knowledge Areas are fields or areas of specialization
that are commonly employed when managing projects. A Knowledge Area is a set
of processes associated with a particular topic in project management.
These 10 Knowledge Areas are used on most projects most of the time. The needs
of a specific project may require additional Knowledge Areas. The 10 Knowledge
Areas are:
 Project Integration Management. Project Integration Management includes
the processes and activities to identify, define, combine, unify, and
coordinate the various processes and project management activities within
the Project Management Process Groups.
 Project Scope Management. Project Scope Management includes the
processes required to ensure that the project includes all the work
required, and only the work required, to complete the project successfully.
 Project Schedule Management. Project Schedule Management includes the
processes required to manage the timely completion of the project.
 Project Cost Management. Project Cost Management includes the
processes involved in planning, estimating, budgeting, financing, funding,
managing, and controlling costs so the project can be completed within
the approved budget.
 Project Quality Management. Project Quality Management includes the
processes for incorporating the organization’s quality policy regarding
planning, managing, and controlling project and product quality
requirements, in order to meet stakeholders’ expectations.

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 Project Resource Management. Project Resource Management includes the

processes to identify, acquire, and manage the resources needed for the
successful completion of the project.
 Project Communications Management. Project Communications
Management includes the processes required to ensure timely and
appropriate planning, collection, creation, distribution, storage, retrieval,
management, control, monitoring, and ultimate disposition of project
information.
 Project Risk Management. Project Risk Management includes the
processes of conducting risk management planning, identification,
analysis, response planning, response implementation, and monitoring
risk on a project.
 Project Procurement Management. Project Procurement Management
includes the processes necessary to purchase or acquire products,
services, or results needed from outside the project team.
 Project Stakeholder Management. Project Stakeholder Management
includes the processes required to identify the people, groups, or
organizations that could impact or be impacted by the project, to analyze
stakeholder expectations and their impact on the project, and to develop
appropriate management strategies for effectively engaging stakeholders
in project decisions and execution.

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Different types of organizational structures

Projects operate within the constraints imposed by the organization through
their structure and governance framework.
The interaction of multiple factors within an individual organization creates a
unique system that impacts the project operating in that system.
The resulting organizational system determines the power, influence, interests,
competence, and political capabilities of the people who are able to act within
the system.
 Organic organizations where people have varied roles that might make
project management a part-time role depending on what’s needed at
the time.
 Functional organizations which are set up to give authority to
functional managers.
 Multidivisional organizations might operate each division almost like
its own company, with each one having its own governance framework
and management roles.
 Project oriented organizations give authority to the PM
 Matrix organizations share responsibility and authority between the
functional managers and project managers.
Functional organizations Structure

 In this kind of organization, the project team members always report to a

functional manager who calls all the shots.
 Functional organizations are set up to give authority to functional
managers.
 Project management decisions need to be cleared with functional
managers.
 Project managers are the functional managers in getting the work done.
 Project managers spend a lot of time doing administrative tasks and often
work as PMs only part of the time.
 You’re likely to find project expediters in functional organizations.
Project oriented organizations
 This type of organizations give authority to the Project manager
 Teams are organized around projects. When a project is done, the team is
released, and the team members move on to another project.
 The project manager makes all of the decisions about a project’s budget,
schedule, quality, and resources.
 The project manager is responsible for the success or failure of the project

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Matrix organizations
Shared responsibility and authority between the functional managers and
project managers.
1. Weak matrix
 Project Managers have some authority, but they aren’t in charge of the
resources on a project.
 Major decisions still need to be made with the functional manager’s
cooperation or approval.
 Project expediters and project coordinators can work in weak matrix
organizations too
2. Balanced matrix
 Project managers share authority with the functional managers.
 PMs run their people-management decisions by the functional manager,
but the functional manager runs project decisions by the PM too.
3. Strong matrix
 Project managers have more authority than functional managers, but the
team still reports to both managers.
 The team might be judged based on performance on their projects, as well
as on their functional expertise. In a strong matrix, delivery of the project
is most important.

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Managing project constraints

Every project, regardless of what is being produced or who is doing the work, is
affected by the constraints of time, scope, cost, quality, resources, and risk.
These constraints have a special relationship with one another, because doing
something to deal with one of the constraints always has an effect on the others.
Triple Constraint it’s a model of the constraints inherent in managing a project.
Those constraints are threefold:
1. Cost: The financial constraints of a project, also known as the project
budget
2. Scope: The tasks required to fulfill the project’s goals
3. Time: The schedule for the project to reach completion
Basically, the Triple Constraint states that the success of the project is impacted
by its costs, time, and scope. As a project manager, you can keep control of the
triple constraint by balancing these three constraints through trade-offs.
1. Time and Scope: You can reduce your project scope to also reduce your
project duration if you’re running behind schedule. In the opposite case,
you can increase the length of your project timeline in case the project
stakeholders come up with extra project activities.
2. Cost and Scope: By reducing the project scope, you’ll need to execute fewer
tasks, which means lower costs. In the opposite case, a larger project scope
means higher costs.
3. Cost and Time: In some projects, time and cost can be directly related. For
example, the costs of renting equipment or labor are directly proportional
to the time you need them for.
All these scenarios are applying the Triple Constraint for managing the project,
but there are many more possible trade-offs that can occur in a project, which
also involve quality, risk and benefit.
Conflict management
It’s probably no surprise that over half of conflicts come from priorities,
schedules, and people. That’s why so many of the processes you’re learning
about are focused on preventing conflicts. Ground rules, good planning
practices, and pretty much anything that has to do with communication are all
there to prevent the most common reasons that conflicts happen.

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Some of the common reasons that conflicts happen

1. Resources are scarce that’s why you have to negotiate for them. Have you
ever been in a situation where there’s a “good” conference room, or top-
performing team member, or even that photocopy machine that always
seems to be in use? Well, that’s a scarce resource.
2. Priorities mean one project or person is more important than another, and
gets more budget, resources, time, prestige, or other perks. If the
company’s priorities aren’t crystal clear, then conflicts are definitely going
to happen.
3. Schedules decide who gets what, when. Have you ever had a client,
sponsor, or stakeholder get upset because your project won’t come in as
early as he or she wanted it to? Then you’ve had a conflict over schedules.
4. Personalities are always clashing. Sometimes two people just don’t get
along, and you’re going to have to find a way to make them work together
in order to get your project done.
5. Cost disagreements seem to come up a lot, especially where contracts are
involved. Even when the price is agreed upon up front, buyer’s remorse
will set in, and it will lead to issues.
6. Technical opinions are definitely a reason that conflicts happen, because
it’s really hard to get an expert to change his mind…so when two of them
disagree, watch out!
How to resolve a conflict?
When you’re managing a project, you depend on people to get the work done.
But when they have any sort of conflict, your project can grind to a halt…and
you’re the one who has to face the music when it causes delays and costs money!
Since you’re on the hook when a conflict threatens your project, you’re the one
who has to resolve it. Luckily, there are some techniques for getting your conflicts
resolved.
1. Collaborating or problem solving is the most effective way to resolve a
conflict. This means working with other people to make sure that their
viewpoints and perspectives are taken into account. It’s a great way to get
a real commitment from everyone while you get to the bottom of what’s
causing the issue and figure out a solution that works for everybody.
2. Compromise sounds good, doesn’t it? But hold on a second—when two
people compromise, it means that each person gives up something. That’s
why a lot of people call a compromise a “lose-lose” solution.
3. Smoothing or accommodating is what you’re doing when you try to play
down the problem and make it seem like it’s not so bad. It’s a temporary
solution, but sometimes you need to do it to keep tempers from flaring and
give people some space to step back and really figure out what’s going on

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4. Forcing means putting your foot down and making a decision. One person
wins, one person loses, and that’s the end of that.
5. Withdrawal doesn’t do much good for anyone. It’s when people get so
frustrated, angry, or disgusted that they just walk away from the
argument. It’s almost always counterproductive. If someone withdraws
from a problem before it’s resolved, it won’t go away—and your project will
suffer
Negotiation
 Negotiation is a discussion aimed at reaching an agreement. Procurement
negotiation clarifies the structure, rights, and obligations of the parties
and other terms of the purchases so that mutual agreement can be
reached prior to signing the contract.
 Final document language reflects all agreements reached. Negotiation
concludes with a signed contract document or other formal agreement that
can be executed by both buyer and seller.
 The negotiation should be led by a member of the procurement team that
has the authority to sign contracts. The project manager and other
members of the project management team may be present during
negotiation to provide assistance as needed
 Negotiation helps the people on your team come to an agreement about
how to work together. It’s important when you’re negotiating to listen to
both parties and to make sure that you make it clear when concessions
are made. That should get everyone to see both sides of the issue and know
that you’re negotiating a fair resolution to it.

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