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UT1 PM
Type Lecture

Person N Nixon Lobo

Reviewed

Three Basic Goals of a Project and How to

Achieve Them in Conditions of
Uncertainty
In project management, there are three basic goals that every project manager
should aim to achieve. These goals are:

1. Finishing the project on time: This goal involves ensuring that the project is
completed within the scheduled time frame. To achieve this goal, project
managers need to create a realistic timeline and make sure that all team
members stick to it. They should also be proactive in identifying potential delays
and taking steps to mitigate them.

2. Completing the project within budget: This goal involves ensuring that the
project is completed within the allocated budget. Project managers need to be

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 diligent in tracking expenses and ensuring that resources are used efficiently.
They should also be prepared to make adjustments to the budget as needed.

3. Delivering a high-quality project: This goal involves ensuring that the final
deliverable meets the required standards of quality. To achieve this goal, project
managers need to establish clear quality standards from the outset and ensure
that all team members are aware of them. They should also monitor progress
regularly and take corrective action when necessary.

Achieving these goals can be challenging, especially in conditions of uncertainty. To

overcome uncertainty, project managers can take the following steps:

1. Develop a contingency plan: Project managers should identify potential risks

and develop a contingency plan to mitigate them. This plan should outline the
steps to be taken in the event of a risk occurring.

2. Communicate regularly: Project managers should communicate regularly with

team members and stakeholders to ensure that everyone is aware of any
changes or potential issues. This will help to avoid surprises and enable
everyone to work together to address any challenges.

3. Be flexible: Project managers should be prepared to make adjustments to the

project plan as needed. They should be open to feedback from team members
and stakeholders and be willing to adapt to changing circumstances.

In conclusion, achieving the three basic goals of a project requires careful planning,
diligent monitoring, and effective communication. In conditions of uncertainty, project
managers need to be proactive in identifying and mitigating risks, and be prepared to
make adjustments to the project plan as needed.

Knowledge Areas and Process Groups in

Project Management
The Project Management Institute (PMI) outlines ten knowledge areas and five
process groups in project management. Each knowledge area represents a set of
concepts, terms, and activities specific to that area, while each process group
represents a set of activities that are performed during each phase of the project
lifecycle.

The knowledge areas are:

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 1. Project Integration Management: This area includes the processes and
activities needed to identify, define, combine, unify, and coordinate the various
project management processes and activities.

2. Project Scope Management: This area includes the processes and activities
needed to ensure that the project includes all the work required, and only the
work required, to complete the project successfully.

3. Project Schedule Management: This area includes the processes and

activities needed to manage the timely completion of the project.

4. Project Cost Management: This area includes the processes and activities
needed to manage the project's budget.

5. Project Quality Management: This area includes the processes and activities
needed to ensure that the project will satisfy the needs for which it was
undertaken.

The five process groups are:

1. Initiating: This process group includes the processes that are required to define
a new project or a new phase of an existing project.

2. Planning: This process group includes the processes that are required to
establish the project scope, define project objectives, and develop the project
plan.

3. Executing: This process group includes the processes that are required to
complete the work defined in the project plan.

4. Monitoring and Controlling: This process group includes the processes that
are required to track, review, and regulate the progress and performance of the
project.

5. Closing: This process group includes the processes that are required to finalize
all activities across all process groups to formally close the project or phase.

In summary, the ten knowledge areas and five process groups in project
management provide a framework for project managers to effectively plan, execute,
monitor, and close projects.

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 Contents and Authorization of a Project
Charter
A project charter is a formal document that outlines the project's purpose, scope,
objectives, stakeholders, and other details. The following are the main contents of a
project charter:

Project Title: This is the name of the project that you are undertaking. It should
be concise and clear.

Project Purpose: This outlines the reason for the project's existence. It answers
the question, "Why are we doing this project?"

Project Objectives: These are the specific goals that the project aims to
achieve. Objectives should be measurable, achievable, relevant, and time-
bound.

Project Scope: This defines what the project will and will not cover. It should be
clear and concise to avoid misunderstandings and scope creep.

Project Deliverables: These are the tangible outputs of the project. They should
be listed and described in detail.

Project Stakeholders: These are the individuals or groups who have an interest
in the project. They should be identified and their roles and responsibilities
should be clearly defined.

Project Risks: These are the potential events or conditions that could negatively
impact the project. They should be identified and a plan to manage or mitigate
them should be developed.

Project Timeline: This outlines the project's start and end dates, as well as key
milestones and deadlines.

The project charter is prepared by the project manager or a person tasked with
leading the project. It is then authorized by the project sponsor or senior
management. The project charter serves as a formal agreement between the project
manager and the project sponsor, and it provides a clear roadmap for the project
team to follow.

Project Life Cycle

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 A project life cycle is a series of phases that a project goes through from its initiation
to its closure. The number and names of the phases may vary depending on the
methodology being used, but most project life cycles have the following phases:

1. Initiation: This is the first phase of the project life cycle, where the project is
identified and defined. The objectives, scope, and feasibility of the project are
determined in this phase.

2. Planning: In this phase, a detailed project plan is created. The plan includes
project schedule, budget, resources, and risk management plan.

3. Execution: In this phase, the actual work of the project is performed. The project
team completes the activities defined in the project plan.

4. Monitoring and Control: In this phase, the progress of the project is monitored
and controlled. Any changes in the project scope, schedule, or budget are
identified and managed.

5. Closing: This is the final phase of the project life cycle. The project is formally
closed and handed over to the customer. The project team also performs a post-
project review to identify lessons learned and recommendations for future
projects.

The project life cycle provides a framework for managing projects from start to finish.
It helps ensure that projects are completed on time, within budget, and to the
satisfaction of the customer.

Impact of Project Time on Cost, Risk, and

Stakeholder Influence
Managing a project requires careful consideration of several factors, including the
cost of change, risk, and stakeholder influence. These factors are not static but can
change over the course of a project's life cycle, particularly as time progresses.

Cost of Change
The cost of change refers to the expenses associated with making alterations to a
project's scope, timeline, or resources. As a project progresses over time, the cost of
change tends to increase. This is because as more work is completed, it becomes
more difficult and expensive to undo or modify that work. Additionally, changes made

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 later in a project's life cycle may require rework of previously completed tasks,
further driving up costs.

Risk
Risk refers to the likelihood and potential impact of an event that could negatively
affect a project's success. As a project progresses over time, the nature of its risks
may change. Early in a project's life cycle, risks may be related to uncertainty around
requirements, technology, or resources. Later in the project, risks may be related to
quality, testing, or deployment. Additionally, the longer a project takes, the more time
there is for unforeseen events to occur and disrupt the project's progress.

Stakeholder Influence
Stakeholders are individuals or groups who have an interest in a project's success or
failure. As a project progresses over time, the influence of stakeholders may change.
Early in a project's life cycle, stakeholders may have more influence over
requirements and design. Later in the project, stakeholders may have more influence
over testing, release, and deployment. Additionally, the longer a project takes, the
more time there is for stakeholders to become involved and exert their influence.

In conclusion, the impact of project time on cost, risk, and stakeholder influence is
significant. As a project progresses over time, the cost of change tends to increase,
the nature of risks may change, and the influence of stakeholders may evolve.
Therefore, it is important for project managers to carefully monitor and manage
these factors throughout a project's life cycle.

Numeric and Non-Numeric Models of

Project Selection
Project selection is a crucial process in project management that involves choosing
the right project from a pool of potential projects. There are two main types of project
selection models: numeric and non-numeric models.

Numeric Models
Numeric models use quantitative data to evaluate and compare potential projects.
These models are based on mathematical calculations and statistical analysis of
data. Some examples of numeric models for project selection are:

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 Payback Period: This model calculates the length of time required for a project
to generate enough cash flow to recover its initial investment. The shorter the
payback period, the more attractive the project.

Net Present Value (NPV): This model calculates the present value of all cash
inflows and outflows associated with a project. The higher the NPV, the more
attractive the project.

Internal Rate of Return (IRR): This model calculates the rate of return that a
project is expected to generate. The higher the IRR, the more attractive the
project.

Non-Numeric Models
Non-numeric models use qualitative data to evaluate and compare potential projects.
These models are based on subjective judgments and opinions of stakeholders
involved in the project selection process. Some examples of non-numeric models for
project selection are:

Expert Judgment: This model relies on the expertise and experience of

individuals involved in the project selection process to evaluate potential
projects.

Benefit-Cost Ratio: This model compares the benefits and costs of potential
projects to determine their relative attractiveness.

Scoring Model: This model assigns scores to potential projects based on

predetermined criteria, such as alignment with strategic goals or feasibility.

Both numeric and non-numeric models have their advantages and disadvantages,
and the choice of model depends on the specific needs and requirements of the
project and organization.

Aggregate Project Plan Used in Project

Portfolio Process
An aggregate project plan (APP) is a high-level project management document that
outlines the main objectives, goals, and scope of a project. It is an essential
component of the project portfolio process, which involves selecting and managing a
group of projects to achieve strategic business goals.

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 The APP provides an overview of the project portfolio, including all the projects that
are part of it. It includes a summary of the project timelines, budgets, and resources
required to complete each project successfully. The APP also identifies all the risks
and challenges associated with the project portfolio, along with the strategies to
mitigate them.

The primary purpose of an APP is to ensure that all the projects in the portfolio are
aligned with the organization's strategic goals and objectives. It also helps to identify
any potential conflicts or dependencies between the different projects in the portfolio,
allowing project managers to make informed decisions about resource allocation and
project prioritization.

In summary, an aggregate project plan is a critical document in the project portfolio

process that helps organizations to manage multiple projects effectively. It provides a
high-level view of the project portfolio, identifies key risks and challenges, and
ensures that all projects are aligned with the organization's strategic goals and
objectives.

Project Launch Meeting

A project launch meeting is the first meeting of a new project. The purpose of this
meeting is to set the tone for the project, establish expectations and goals, and get
everyone on the same page.

Invitees
The invitees of a project launch meeting will vary depending on the project and the
organization, but typically include:

Project sponsor(s)

Project manager

Project team members

Stakeholders

Subject matter experts

Other relevant parties

Outcomes

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 The outcomes of a project launch meeting can include:

Establishment of project goals and objectives

Identification of project stakeholders and their roles

Discussion of project scope, timeline, and budget

Assignment of tasks and responsibilities

Agreement on project communication plan

Establishment of project governance and decision-making processes

Overall, the project launch meeting sets the stage for a successful project by
ensuring that everyone is aligned and understands the project's objectives and
expectations.

The Work Breakdown Structure (WBS)

The Work Breakdown Structure (WBS) is a hierarchical decomposition of a project
into smaller, more manageable components. It is a deliverable-oriented structure that
breaks down the project scope into smaller and more manageable work packages.
The WBS serves as the foundation for project planning, scheduling, and control. It
helps in identifying the project's scope and provides a framework for organizing and
managing the project's activities.

The WBS is typically created during the project planning phase and is used as a
reference throughout the project's lifecycle. It helps in identifying the resources
required for each work package, estimating the time and cost required to complete
each work package, and tracking the progress of the project.

The WBS is typically depicted as a tree-like structure, with the project as the top-
level node, and the work packages at the lowest level. Each level of the WBS
represents an increasingly detailed description of the project work.

The WBS can be created using various methods, including the top-down approach,
bottom-up approach, and mind-mapping. The top-down approach starts with the
project's overall objectives and progressively breaks down the project scope into
smaller and more manageable work packages. The bottom-up approach starts with
the individual work packages and aggregates them into higher-level components.
Mind-mapping is a visual method of brainstorming and organizing ideas in a
hierarchical structure.

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 In conclusion, the WBS is a critical component of project management. It helps in
organizing and managing the project's activities, identifying the resources required,
estimating the time and cost required, and tracking the project's progress.

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