Project Management

Arij Sayhi

Tunis Business School / Project Management Course

Professor: GATTOUFI Said

January 11, 2025

1 Introduction: Why Project Management?
1.1 What Is a Project?
• Projects are complex, one-time processes.
• Projects are limited by budget, schedule, and resources.

• Projects are developed to resolve a clear goal or set of goals.

• Projects are customer-focused.
• A project is a temporary endeavor undertaken to create a unique product, service, or result.

1.2 General Project Characteristics

• Projects are ad hoc endeavors with a clear life cycle.
• Projects are building blocks in the design and execution of organizational strategies.

• Projects are responsible for the latest and most improved products, services, and organizational processes.
• Projects provide a philosophy and strategy for the management of change.
• Project management involves crossing functional and organizational boundaries.
• Traditional management functions of planning, organizing, motivation, directing, and controlling apply to project manage-
ment.
• Principal outcomes of a project are the satisfaction of customer requirements within the constraints of technical, cost, and
schedule objectives.
• Projects are terminated upon successful completion of performance objectives.

1.3 Process and Project Management

Differences Between Process and Project Management

1.4 Project Success Rates

• Software and hardware projects fail at a 65 percent rate.
• Over half of all I T projects become runaways.
• Only 30 Percent of technology-based projects and programs are a success.
• Ten major government contracts have over 16 billion dollars in cost overruns and are a combined 38 years behind schedule.

• One in six I T projects has an average cost overrun of 200 percent and a schedule overrun of 70 percent
• More than a third of the 110 billion Dollars in costs spent on the post-war reconstruction projects in Afghanistan, total
110 billion Dollars was lost due to fraud, waste and abuse.

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1.5 Why Are Projects Important?
• Shortened product life cycles

• Narrow product launch windows

• Increasingly complex and technical products
• Emergence of global markets

• An economic period marked by low inflation

1.6 Project Life Cycles

A project life cycle refers to the stages in the development of a project and is divided into four distinct phases:

1.6.1 Conceptualization
Development of the initial goal and technical specifications of the project. Key stakeholders are identified and signed on at this
phase.

1.6.2 Planning
all detailed specifications, schedules, schematics, and plans are developed.

1.6.3 Execution
The actual “work” of the project is performed.

1.6.4 Termination
The project is transferred to the customer, the resources are reassigned, and the project is closed.

Project Life Cycle Stages

Figure 1: Change During Project Life Figure 2: Project Life Cycles and
Cycle Their Effects

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 Figure 4: Four Dimensions of Project Success Im-
portance
Figure 3: Quadruple Constraint of
Project Success

Understanding Success Criteria

1.7 Six Criteria for IT Project Success

System Quality , Information Quality , Use , User Satisfaction , Individual Impact , Organizational Impact

1.8 Project Management Maturity

• Project management maturity (PMM) models are used to allow organizations to benchmark the best practices of
successful project management firms.
• Benchmarking is the practice of systematically managing process improvements in project execution by a single organi-
zation over a period of time.

Figure 5: Spider Web Diagram for Measuring Figure 6: Spider Web Diagram with Embedded Or-
Project Maturity ganizational Evaluation

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 Project Management Maturity—A Generic Model

• Developing Project Management Maturity

PMM models

Center for Business Practices Kerzner’s Project Management Maturity Model

– Level 1: Initial Phase – Level 1: Common Language
– Level 2: Structure, Process, and Standards – Level 2: Common Processes
– Level 3: Institutionalized Project Management – Level 3: Singular Methodology

– Level 4: Managed – Level 4: Benchmarking

– Level 5: Optimizing – Level 5: Continuous Improvement

ESI International’s Project Framework SEI’s Capability Maturity Model Integration

– Level 1: Ad Hoc – Level 1: Initial

– Level 2: Consistent – Level 2: Managed
– Level 3: Integrated – Level 3: Defined
– Level 4: Comprehensive – Level 4: Quantitative Management

– Level 5: Optimizing – Level 5: Optimizing

Project Elements and Text Organization

• Project Management Employability VS Project Manager Responsibilities

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Project Management Employability Skills Project Manager Responsibilities

– Communication – Selecting a team

– Critical Thinking – Developing project objectives and a plan for execu-
tion
– Collaboration
– Performing risk management activities
– Knowledge Application and Analysis
– Cost estimating and budgeting
– Business Ethics and Social Responsibility
– Scheduling
– Information Technology Application and Computing
Skills – Managing resources
– Data Literacy

Overview of the Project Management Institute’s P M B o K Knowledge Areas

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2 Project Selection and Portfolio Management
2.1 Project Selection
Screening models help managers pick winners from a pool of projects. Screening models are numeric or nonnumeric and
should have:

• Realism
• Capability
• Flexibility
• Ease of use

• Cost effectiveness
• Comparability

2.2 Screening and Selection Issues

2.2.1 Risk—unpredictability to the firm
Technical , Financial , Safety , Quality , Legal exposure

2.2.2 Commercial—market potential

Expected return on investment , Payback period , Potential market share , Long-term market dominance , Initial cash outlay ,
Ability to generate future business/new markets

2.2.3 Internal operating—changes in firm operations

Need to develop/train employees , Change in workforce size or composition , Change in physical environment , Change in
manufacturing or service operations

2.2.4 Additional
Patent protection , Impact on company’s image , Strategic fit

All models only partially reflect reality and have both objective and subjective factors imbedded.

2.3 Approaches to Project Screening

2.3.1 Checklist model
A checklist is a list of criteria applied to possible projects. It Requires agreement on criteria and assumes all criteria are equally
important

Checklists are valuable for recording opinions and stimulating discussion.

2.3.2 Simplified Scoring Models

Each project receives a score that is the weighted sum of its grade on a list of criteria.
Scoring models require agreement on criteria , agreement on weights for criteria and a score assigned for each criteria
P
Score = (Weight × Score)

Relative scores can be misleading!

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2.3.3 Analytic hierarchy process
The AHP is a four step process:

• 1.Construct a hierarchy of criteria and subcriteria.

• 2.Allocate weights to criteria.
• 3.Assign numerical values to evaluation dimensions.

• 4.Determine scores by summing the products of numeric evaluations and weights.

Unlike the simple scoring model, these scores can be compared!

Sample AHP with Rankings for Salient Selection Criteria

2.3.4 Profile Model

Profile Model

2.4 Financial Models

2.4.1 Payback period
Determines how long it takes for a project to reach a break even point.
Investment
Payback Period =
Annual Cash Savings
• Cash flows should be discounted.
• Lower numbers are better (faster payback).

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 Table 1: Comparison of Payback for Projects A and B

Initial Outlay and Projected Revenues for Two Project Options

2.4.2 Net Present Value

Projects the change in the firm’s value if a project is undertaken.
X Ft
NPV = Io +
(1 + r + pt )t

Higher NPV values are better!

Table 2: Discounted Cash Flows and NPV

Cash flows rounded to the nearest 100 Hundred.

Discount sum of cash flows by the company’s required rate of return to get a more accurate payback period.

2.4.3 Internal Rate of Return

A project must meet a minimum rate of return before it is worthy of consideration.
t
X ACFt
IO =
n=1
(1 + IRR)t

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This table has been calculated using a discount rate of 15 Percent
The project does meet our 15 Percent requirement and should be considered further.

2.5 Project Portfolio Management

It is The systematic process of selecting, supporting, and managing the firm’s collection of projects.
Portfolio management objectives and initiatives require:
• decision making
• prioritization

• review
• realignment
• reprioritization of a firm’s projects

2.5.1 The Portfolio Selection Process

The portfolio selection process is an integrated framework of interrelated steps and activities.

• Preprocess Phase : Methodology of selection and strategy

• Process Phase : Prescreening, individual project analysis, screening, portfolio selection, and portfolio adjustment
• Postprocess Phase : Project development, project evaluation, and portfolio completion

Project Portfolio Selection Process

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2.5.2 Developing a Proactive Portfolio
The project portfolio matrix classifies projects into four types according to commercial potential and technical feasibility:

Bread and butter , Pearls , Oysters , White elephant

Project Portfolio Matrix

2.5.3 Keys to Successful Project Portfolio Management

keys to Successful Project Portfolio Management :
• Flexible structure and freedom of communication
• Low-cost environmental scanning

• Time-paced transition

2.5.4 Problems in Implementing Portfolio Management

• Conservative technical communities
• Out-of-sync projects and portfolios

• Unpromising projects
• Scarce resources

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3 Leadership and the Project Manager
Leadership is “The ability to inspire confidence and support among the people who are needed to achieve orga-
nizational goals.”

Project management is leader intensive!

3.1 Leaders Versus Managers

• Exchange of purpose
• A right to say no

• Joint accountability
• Absolute honesty

Differences Between Managers and Leaders

3.2 How the Project Manager Leads

Project managers function as mini-C E O s and manage both “hard” technical details and “soft” people issues.

Project managers:
• acquire project resources

• motivate and build teams

• have a vision and fight fires
• communicate

3.3 Acquiring Resources

Project are underfunded for a variety of reasons:
• Vague goals
• Lack of top management support

• Requirements understated
• Insufficient funds
• Distrust between managers

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3.4 Purpose of Meetings
• 1.Define project and team players.

• 2.Provide an opportunity to revise, update, and add to knowledge base.

• 3.Assist team members in understanding role in project as part of whole and how to contribute to project success.
• 4.Help stakeholders increase commitment to project.

• 5.Provide a collective opportunity to discuss project.

• 6.Provide visibility for project manager’s role.

3.5 Communicate
It is critical for a project manager to maintain strong contact with all stakeholders.
Project meetings feature task-oriented and group maintenance behaviors.

[Continued]
Task and Group Maintenance Behaviors

Table 3: Task and Group Maintenance Behaviors for Project Meetings

3.6 Characteristics of an Effective Project Manager

• Leads by example
• Visionary

• Technically competent
• Decisive
• A good communicator
• A good motivator

• Stands up to top management when necessary

• Supports team members
• Encourages new ideas

3.7 Characteristics of Project Managers Who Are Not Leaders

Organizational Factors Personal Flaw
Lack of top management support Sets bad example
Resistance to change Not self-assured
Inconsistent reward system Lacks technical expertise
A reactive organization rather than a proactive, planning Poor communicator
one
Lack of resources Poor motivator

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3.8 Leadership and Emotional Intelligence
Emotional intelligence refers to leaders’ ability to understand that effective leadership is part of the emotional and relational
transaction between subordinates and themselves.
Five elements characterize emotional intelligence:
• Self-awareness
• Self-regulation
• Motivation
• Empathy
• Social skills

3.9 Traits of Effective Project Leaders

One study on effective project leadership revealed these common characteristics:
• Credibility
• Creative problem-solver
• Tolerance for ambiguity
• Flexible management style
• Effective communication skills

3.10 Essential Project Management Abilities

• Organizing under conflict
• Experience
• Decision making
• Productive creativity
• Organizing with cooperation
• Cooperative leadership
• Integrative thinking

3.11 What Are Project Champions?

Champions are “fanatics” in the single-minded pursuit of their pet ideas.

Champions can be: creative originator , entrepreneur , “godfather” or sponsor , project manager

Traditional Duties Nontraditional Duties

• Technical understanding • Cheerleader
• Leadership • Visionary

• Coordination and control • Politician

• Obtaining resources • Risk-taker
• Administrative • Ambassador

3.11.1 Creating Project Champions

• Identify and encourage their emergence.
• Encourage and reward risk takers.
• Remember the emotional connection.
• Free champions from traditional project management duties.
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3.12 New Project Leadership
Four competencies determine a project leader’s success:
• Understand and practice the power of appreciation.
• Remind people what’s important.
• Generate and sustain trust.
• Align with the leader.

3.13 Right Management Choices in International Setting

• Develop a detailed understanding of the environment.
• Do not stereotype.
• Be genuinely interested in cultural differences.
• Do not assume there is one way (yours) to communicate.
• Listen actively and empathetically.

3.14 Project Management Professionalism

* Project work is becoming the standard for many organizations.
* There is a critical need to upgrade the skills of current project workers.
* Project managers and support personnel need dedicated career paths.

3.15 Creating Project Managers

• Match personalities with project work.
• Formalize commitment to project work with training programs.
• Develop a unique reward system.
• Identify a distinct career path.

3.16 PMI Code of Ethics

The Project Management Institute’s code of ethics for project managers consists of: Responsibility , Respect . Fairness , Honesty

3.16.1 Normative Versuse Behavioral Ethics

Normative ethics: What will a person or organization do in a given situation?
Behavioral ethics: Why do people behave the way they do in the workplace?

3.16.2 Unethical Behaviors

Corruption is the abuse of entrusted power for private gain.
• Petty corruption: everyday abuse of power by low-level officials with ordinary citizens.
• Grand corruption: committed by relevant institutions such as governments, corporations, or legal bodies.

3.16.3 Types of Corruption

Common types of corruption include: Bribery , Extortion , Fraud , Abuse of Power , Embezzlement , Conflict of Interest ,
Nepotism
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4 Scope Management
Project scope is everything about a project—work content as well as expected outcomes.
Scope management is the function of controlling a project in terms of its goals and objectives and consists of:

4.1 Conceptual development

The process that addresses project objectives by finding the best ways to meet them. Key steps in information development:
• Problem or need statement
• Requirements gathering

• Information gathering
• Constraints
• Alternative analysis

• Project objectives
• Business case

4.1.1 Statement of Work (SOW)

A SOW is a detailed narrative description of the work required for a project. Effective SOWs contain:
• Introduction and background

• Technical description of the project

• Timeline and milestones

4.1.2 Statement of Work Components

Background , Objectives , Scope , Task or Requirements , Selection Criteria , Deliverables or Delivery Schedule , Security ,
Place of Performance , Period of Performance

4.1.3 Project Charter

Many organizations establish the project charter after the SOW.

A document issued by the project initiator or sponsor formally sanctioning existence of the project and authorizes the project
manager to begin applying organizational resources to project activities

It is created once project sponsors have done their “homework” to verify that:

• there is a business case for the project

• elements of project are understood
• company-specific information for the project has been applied

It demonstrates formal company approval of the project.

4.2 Scope Statement

• Establish project goal criteria to include: cost , schedule , performance , deliverables , review and approval “gates”

• Develop management plan for project

• Establish a Work Breakdown Structure
• Create a scope baseline

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4.2.1 Work Breakdown Structure (WBS)
The WBS is a hierarchical decomposition of the total scope of work to be carried out by the project team to accomplish the
project objectives and create the project deliverables. Each deliverable is decomposed, or broken down, into specific “bite-sized”
pieces representing work to be completed.

4.2.2 Work Breakdown Structure Purpose

WBS serves six main purposes:
• Echoes project objectives

• Organization chart for the project

• Creates logic for tracking costs, schedule, and performance specifications
• Communicates project status
• Improves project communication

• Demonstrates control structure

4.2.3 WBS Hierarchy

The logic of hierarchy for the W B S follows this form:

WBS Hierarchy

4.2.4 Defining a Work Package

• Lowest level in WBS
• Deliverable result

• One owner
• Miniature projects
• Milestones
• Fits organization

• Trackable

Sample WBS Development Using MS Project 2016

Partial Work Breakdown Structure

Table 4: Discounted Cash Flows and NPV

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4.2.5 Organizational Breakdown Structure
Organizational Breakdown Structure (OBS) allows:

• work definition
• owner assignment of work packages
• budget assignment to departments

OBS links cost, activity, and responsibility.

Responsibility Assignment Matrix

The Intersection of the WBS and OBS

Table 5: Discounted Cash Flows and NPV

Cost Account Rollup Using OBS

4.2.6 Defining a Project Work Package

• Work package forms lowest level in W B S.
• Work package has a deliverable result.
• Work package has one owner.
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 • Work package may be considered by its owner as a project in itself.
• Work package may include several milestones.

• Work package should fit organizational procedures and culture.

• The optimal size of a work package may be expressed in terms on labor hours, calendar time, cost, reporting period, and
risks.

4.3 Work authorization

The formal “go ahead” to begin work.
Contractual documentation possesses some key identifiable features:
• Contractual requirements

• Valid consideration
• Contracted terms
Contracts range from: Lump-sum or Turnkeys and Cost plus

4.4 Scope reporting

Determines what types of information reported, who receives copies, and when and how information is acquired and disseminated.
Typical project reports contain: Cost status , Schedule status , Technical performance status

4.5 Control systems

4.5.1 Reasons Why Projects Fail
Politics / Naı̈ve promises / Naı̈ve optimism of youth / Startup mentality of fledgling entrepreneurial companies / “Marine
Corps” mentality / Intense competition caused by globalization / Intense competition caused by appearance of new technologies
/ Intense pressure caused by unexpected government regulations / Unexpected and,or unplanned crises

4.5.2 Types of Control Systems

• Configuration control
• Design control
• Trend monitoring

• Document control
• Acquisition control
• Specification control

4.5.3 Configuration management

Configuration management is defined as:
A collection of formal documented procedures used to apply technical and administrative direction and surveil-
lance to: identify and document the functional and physical characteristics of a product, result, service, or
component; control any changes to such characteristics; record and report each change and its implementation
status; and support the audit of the products, results, or components to verify conformance to requirements.

Baseline is defined as:

The project’s scope fixed at a specific point in time—for example, the project’s scheduled start date.

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4.5.4 Project Changes
Occur for one of several reasons:

• Initial planning errors, either technological or human

• Additional knowledge of project or environmental conditions
• Uncontrollable mandates

• Client requests

4.6 Project closeout

The job is not over until the paperwork is done . . .
Closeout documentation is used to:
• Resolve disputes
• Train project managers
• Facilitate auditing

Closeout documentation includes: Historical records , Post-project analysis , Financial closeout

4.7 Sustainability
Sustainable development involves efforts to promote harmony among human beings and between humanity and nature.
Sustainability involves efforts to promote the triple bottom line of social sustainability, environmental sustainability, and
economic sustainability.

4.7.1 Sustainability Concepts

Sustainability is about:
• Harmonizing the triple bottom line

• Integrating short-term and long-term

• Consuming income, not capital
• Including local and global perspectives
• Values and ethics

• Transparency and accountability

• Stakeholder participation
• Risk reduction

• Waste elimination

4.7.2 Sustainable Project Management Practices

Project management sustainable practices include:
• Engaging in sustainable projects that will not cause harm to the planet or its inhabitants
• Employing sustainable practices while undertaking the projects themselves

• Developing sustainable supplier practices

• Emphasizing sustainability in project design
Sustainable project management practices require organizations to pay attention to all aspects of the project life cycle from
conceptualization through termination.

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5 Project Scheduling: Networks, Duration
Estimation, and Critical Path
5.1 Project Scheduling
Project scheduling requires us to follow some carefully laid-out steps, in order, for the schedule to take shape. P M B o K
states, “an output of a schedule model that presents linked activities with planned dates, durations, milestones, and resources.”

Project planning, as it relates to the scheduling process, has been defined by the PMBooK as:The identification of the
project objectives and the ordered activity necessary to complete the project including the identification of
resource types and quantities required to carry out each activity or task.

5.2 Network Diagram — Serial Sequential Logic

Here

5.3 Network Diagram – Nonserial Sequential Logic

Here

5.4 Project Scheduling Terms

• Project Network Diagram : Any schematic display of the logical relationships of project activities.

• Path : A sequence of activities defined by the project network logic.

• Event : A point when an activity is either started or completed.
• Node : One of the defining points of a network; a junction point joined to some or all of the other dependency lines
(paths).

• Predecessors : Those activities that must be completed prior to initiation of a later activity in the network.
• Successors : Activities that cannot be started until previous activities have been completed. These activities follow
predecessor tasks.
• Early start (ES) date: The earliest possible date the uncompleted portions of an activity can start.

• Late start (LS) date: The latest possible date that an activity may begin without delaying a specified milestone.
• Forward pass: Network calculations to determine earliest start/earliest finish for an activity through working forward
through each activity in network.
• Backward pass: Network calculations to determine late start/late finish for uncompleted tasks through working backward
through each activity in network.
• Merge activity: An activity with two or more immediate predecessors.
• Burst activity: An activity with two or more immediate successors.
• Float: The amount of time an activity may be delayed from its early start without delaying the finish of the project.

• Critical path: The path through project network with the longest duration.
• Critical Path Method: A network analysis technique used to determine the amount of schedule flexibility on logical
network paths in project schedule network and to determine minimum project duration.
• Resource-limited schedule: Start and finish dates reflect expected resource availability.
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5.5 AOA Versus AON

5.6 Node Labels

5.7 Serial Activities

Serial activities are those that flow from one to the next, in sequence.

5.8 Concurrent Activities

When the nature of the work allows for more than one activity to be accomplished at the same time, these activities are called
concurrent, and parallel project paths are constructed through the network.

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5.9 Duration Estimation Methods
• Experience

• Expert opinion
• Mathematical derivation—Beta distribution
– Most likely (m)
– Most pessimistic (b)
– Most optimistic (a)
• Two assumptions used to convert m, a, and b into time estimates (TE) and variances (S 2 ) are :

Symmetrical (Normal) Distribution for Activity Duration Estimation

5.10 Activity Duration Estimates

Constructing the Critical Path

• Forward pass an additive move through the network from start to finish
• Backward pass a subtractive move through the network from finish to start

• Critical path the longest path from end to end which determines the shortest project length

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Options for Reducing the Critical Path
• Eliminate tasks on the critical path.
• Replan serial paths to be in parallel.
• Overlap sequential tasks.

• Shorten the duration on critical path tasks.

• Shorten early tasks.
• Shorten longest tasks.

• Shorten easiest tasks.

• Shorten tasks that cost the least to speed up.

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6 Project Scheduling: Lagging, Crashing, and
Activity Networks
6.1 Lags in Precedence Relationships
The logical relationship between the start and finish of one activity and the start and finish of another activity.
Four logical relationships between tasks: Finish to Start , Finish to Finish , Start to Start , Start to Finish

6.1.1 Finish to Start Lag

It is the Most common type of sequencing . It is Shown on the line joining the modes . It is Added during forward pass and
Subtracted during backward pass

6.1.2 Finish to Finish

Two activities share a similar completion point (wiring and HVAC).
* The under construction cannot happen until wiring, plumbing, and HVAC installation are complete.

Finish to Finish Lag

It may be appropriate for two or more activities to conclude at the same time. For example, a contractor building an office
complex cannot begin interior wall construction until all wiring, plumbing, and H V A C have been installed; she may include
lag to ensure the completion of all preceding activities all occur at the same time.

6.1.3 Start to Start Lag

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6.1.4 Start to Finish Lag

6.2 Gantt Chart

It Establish a time-phased network and It Can be used as a tracking tool

6.2.1 Advantages of Gantt Chart

• Easy to comprehend
• Identify the schedule baseline network
• Allow for updating and control

• Identify resource needs

• Easy to create

Gantt Chart for Project Delta with Critical Path

Completed Gantt Chart for Project Delta Highlighted

Gantt Chart with Lag Relationships

Gantt Chart with Resources Specified

6.3 Crashing
The process of accelerating a project

- Primary methods for crashing:

• Improving existing resources’ productivity
• Changing work methods

• Compromise quality and/or reduce project scope

• Institute fast-tracking
• Work overtime
• Increasing the quantity of resources

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6.3.1 Crash Process
• Determine activity fixed and variable costs

• The crash point is the fully expedited activity

• Optimize time–cost tradeoffs
• Shorten activities on the critical path

• Cease crashing when:

– the target completion time is reached
– the crashing cost exceeds the penalty cost

6.3.2 Activity-on-Arrow Networks

• Activities represented by arrows
• Widely used in construction
• Event nodes easy to flag

• Forward and backward pass logic similar to A O N

• Two activities may not begin and end at common nodes
• Dummy activities may be required

This is written in the slides

6.4 Controversies in the Use of Networks

• Networks can be too complex.
• Poor network construction creates problems.
• Networks may be used inappropriately.

• Networks pose special dangers because contractors may create their own networks.
• Positive bias exists in PER T networks.

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