Lectures Notes in

PROJECT MANAGEMENT

Lecture (1)
Submitted By:

Dr. Ahmed Mohamed Abd-Elwahab

Lecture in BIS Department,
Faculty of Commerce & Business Administration,
Helwan University, Cairo, Egypt.
 COURSE OUTLINE
❑ Chapter 1. Introduction to Project Management.
❑ Chapter 2. Project Management Knowledge Areas.
❑ Chapter 3. Project Scheduling (Planning).
❑ Chapter 4. Project Selection.
❑ Chapter 5. Project Evaluation and Controlling.
❑ Chapter 6. Microsoft Project Basics.
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 Ch 1. Introduction to Project Management
❑ What is Project ?
▪ Project Performance Dimensions.
▪ Boundaries of a Project.
▪ Project Life Cycle – 5 Stages.
▪ Characteristics of a Project.
▪ Difference Between Projects and Operations.
❑ What is Management ?
▪ Management Functions.
❑ What is Project Management ?
▪ Why Projects Fail ?
▪ Why Projects Succeed ?
▪ Benefits of Project Management.
❑ Project Organization & Roles. 3
Ch 2. Project Management Knowledge Areas

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 Ch 3. Project Scheduling (Planning)
❑ Introduction.

❑ Gantt Chart.

❑ Work Breakdown Structure (WBS).

❑ Developing Network Diagram.

❑ Construct the Critical Path Method (CPM).

❑ PERT (Project Evaluation & Review Technique).

❑ Project Crashing.
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 Ch 4. Project Selection
❑ Introduction.

❑ Approaches to Project Screening and Selection :

1. Checklist Model.
2. Simplified Scoring Models.

❑ Financial Models :
1. Payback Period/Analysis (Payback).
2. Net Present Value (NPV).
3. Return on Investment (ROI). 6
Ch 5. Project Evaluation and Controlling
❑ The Project Control Cycle.

❑ Monitoring Project Performance Project S-Curves.

❑ Milestone Analysis.
❑ Earned Value Management.
❑ Human Factors in Project Evaluation & Control.
❑ Critical Success Factors in the Project Implementation Profile.

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 CHAPTER (1)

Introduction to Project Management

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 Introduction
Project Management in recent years has Proliferated,
Reaching new heights of Sophistication. It has Emerged
as a Distinct Area of Management Practices to meet the
1 2

Challenges of New Economic Environment, Globalization

3 4
Process, Rapid Technological Advancement, and Quality
Concerns of the Stakeholders (e.g., suppliers, users, general public, etc.).
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1.1 What is a Project ?
To understand Project Management, one must begin with
the definition of a Project.
A Project can be any Series of activities and tasks that:
▪ Have a Specific Objective (Unique Goal) to be completed within
Certain Specifications (Unique Specifications).
▪ Have defined Start and End dates (Specific Timeframe) = Schedule.
▪ Have Funding limits (if applicable) = Fixed Budget = Cost.
▪ Consume Human and Nonhuman Resources (i.e., people, money,
equipment, materials, facilities, IT).
▪ Are Multifunctional (i.e., cut across several functional lines).
▪ Working across Organizational Boundaries.
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➢ A Project is defined as a Sequence of activities or tasks
that must be Completed to attain a Certain Outcome.

➢ A Project is “ a Temporary Endeavor undertaken to

Produce a Unique Product, Service, or Result ”.
➢ A Project is “ a Unique Endeavor to Produce a set of
Deliverables within clearly specified Scope, Time, Cost
and Quality Constraints ”.
➢ A Project is “ a Problem Scheduled for Solution ”.
( ).
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 Project Performance Dimensions
Three major dimensions that define the Project Performance are
1 2 3
(Scope, Budget/Cost and Time). These parameters are interrelated
and interactive. The relationship generally represented as an
equilateral triangle.

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 Boundaries of a Project
Every Project operates within certain Boundaries called Constraints:

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Project Life Cycle – 5 Stages

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 Characteristics of a Project
A Project is a set of interdependent tasks that have a
common goal. Projects have the following Characteristics:

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Difference Between Projects and Operations
There are many differences between projects and standard
business operational activities. Some differences are as follows:
➢ Projects are unique and temporary, while Operations are
ongoing and permanent with a repetitive output.
➢ Projects have a fixed budget, while Operations have to
earn a profit to run the business.
➢ Projects are executed to start a new business objective
and terminated when it is achieved, while Operational
work does not produce anything new and is ongoing.
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Difference Between Projects and Operations
➢ Projects create a unique product, service, or result, while
Operations produce the same product, aim to earn a
profit and keep the system running.
➢ There are more risks in projects as they are usually done
for the first time, while in Operations there are fewer
risks as they are repeated many times.
➢ Projects are performance intensive while Operations are
efficiency intensive.
➢ Projects are managed through project management and
Operations require business process management.
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1.2 What is Management ?
Management is the Process of reaching Organizational
Goals by working with and through People and Other
Organizational Resources.

Management has the following 3 Characteristics:

▪ It is a process or series of continuing and related activities.
▪ It involves and concentrates on reaching organizational goals.
▪ It reaches these goals by working with and through people
and other organizational resources.
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 Management Functions
Management is the Planning, Organizing, Leading, and
Controlling of human and other resources to achieve
Organizational Goals efficiently and effectively.

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1.3 What is Project Management ?
➢ Project Management is the application of Knowledge,
Skills, Tools, Methods and Techniques to execute projects
efficiently and effectively to achieve Specific Goals in order
to meet or exceed Stakeholder needs and expectations.

➢ Project Management is the Skills, Tools and Management

Processes required to undertake a project successfully.

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➢ Project Management Comprises:
1) A set of Skills - Specialist Knowledge, Skills and Experience to reduce
the level of risks within a project & enhance likelihood of success.

2) A suite of Tools - Various types of tools include Document

Templates, Document Registers, Planning Software, Modeling
Software, Audit Checklists and Review Forms.

3) A series of Processes - Various management techniques & processes

are used to monitor and control scope, time, cost and quality.
Examples include Time Management, Cost Management, Quality
Management, Change Management, Risk Management and Issue
Management.
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 What Skills do Project Managers need ?
Project Manager: Systems Analyst
with Management and Leadership
Skills responsible for leading Project
Initiation, Planning, Execution,
Controlling and Closedown.

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 Why Projects Fail ?
❑ Failure to align Project with Organizational Objectives.
❑ Poor/Creep Scope.
❑ Poor Communication.
❑ Unrealistic Expectations.
❑ Lack of Executive Sponsorship.
❑ Lack of Project Managerial Skills - Poor Project Management.
❑ Inability to move beyond Individual and Personality Conflicts.
❑ Politics.
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 Why Projects Succeed ?
❑ Good Project Charter.
❑ Good Communication.
❑ Good Decision-Making Structure.
❑ Strong Project Management.
❑ Project Sponsorship at Executive Level.
❑ The Right Mix of Team Players.
❑ Team members are working toward Common Goals.

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Defining Projects Succeed
The definition of project success has been modified to
include completion:
➢ Within the allocated time period.
➢ Within the budgeted cost.
➢ At the proper performance or specification level.
➢ With acceptance by the customer/user.
➢ With minimum or mutually agreed upon scope changes.
➢ Without disturbing the main workflow of the organization.
➢ Without changing the corporate culture International Campus.
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The Potential Benefits from Project Management
▪ Identification of functional responsibilities to ensure that all
activities are accounted for, regardless of personnel turnover.
▪ Minimizing the need for continuous reporting.
▪ Identification of time limits for scheduling.
▪ Identification of a methodology for trade-off analysis.
▪ Measurement of accomplishment against plans.
▪ Early identification of problems so that corrective action may follow.
▪ Improved estimating capability for future planning.
▪ Knowing when objectives cannot be met or will be exceeded.
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1.4 Project Organization & Roles
➢ Stakeholder is anybody who has any interest in your Project.
➢ The different examples of stakeholders are as follows:
▪ Project Manager.
▪ Project Team Members.
▪ Senior Management.
▪ Sponsors.
▪ Suppliers.
▪ Customers.
▪ End Users.
▪ Vendors.
▪ People affected by Project's Output.
▪ Competitors.
▪ Social Groups.
▪ Government and Political Leadership.
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1.4 Project Organization & Roles
➢ Project Stakeholders are Individual, Group, or Organization
who may affect, or be affected by a decision(s), activity(s), or
outcome(s) of a Project.

➢ Stakeholder can have a Positive or Negative impact.

Therefore, it is necessary to engage and involve the
stakeholders in the project to ensure project success.

➢ Stakeholders can be directly involved in a Project’s Work,

can be members of other Internal Organizations, or can even
be External to the Organization.
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1.4 Project Organization & Roles
The following diagram gives an overview of the main Roles in the
Project Organization, from a Project Management point of view.

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1.4 Project Organization & Roles
1. Business Governing Layer:
The Business Governing Layer determines the Vision and Strategy for the
entire organization. It consists of one or more management committees
operating at Director level. It is here that Priorities are defined,
Investment decisions are made, and Resources are allocated.
2. Steering Layer:
The Steering Layer provides General Project Direction and Guidance,
keeping the Project Focused on its Objectives. It reports to the Appropriate
Governance Body (AGB). The Steering Layer is Composed of the Roles
defined in the Directing and Management Layers, and other Optional
Roles.
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1.4 Project Organization & Roles
3. Directing Layer:
The Directing Layer champions the Project and owns its Business Case. It
mobilizes the Necessary Resources and monitors the Project’s Performance
in order to realize the project’s objectives. The Directing Layer Comprises
the Roles of Project Owner (PO) and Solution Provider (SP).
4. Managing Layer:
The Managing Layer focuses on day-to-day Project Operations by
Organizing, Monitoring, and Controlling work to produce the intended
deliverables and implement them in the business organization. Members of
the Managing Layer report to the Directing Layer. The Managing Layer
Comprises the Roles of Business Manager and Project Manager. It is
importance for the success of the project that there is a collaboration and
communication between the Business Manager and the Project Manager. 33
1.4 Project Organization & Roles
5. Performing Layer:
The Performing Layer Carries Out the Project Work, Producing the
Deliverables and implementing them in the business organization.
Members of the Performing Layer report to the Managing Layer. The
Performing Layer Comprises the Roles of the Business Implementation
Group (BIG) and the Project Core Team (PCT).

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1.4 Project Organization & Roles

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 Ch 1. Introduction to Project Management
❑ What is Project ?
▪ Project Performance Dimensions.
▪ Boundaries of a Project.
▪ Project Life Cycle – 5 Stages.
▪ Characteristics of a Project.
▪ Difference Between Projects and Operations.
❑ What is Management ?
▪ Management Functions.
❑ What is Project Management ?
▪ Why Projects Fail ?
▪ Why Projects Succeed ?
▪ Benefits of Project Management.
❑ Project Organization & Roles. 36
Thanks!

Ahmed Mohamed Abd-Elwahab

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