Subject: Project Management

Sub Code:F010601T-A
Unit-1

Project:

A project is a temporary endeavor undertaken to create a unique product, service, or result. It is

characterized by its defined beginning and end, specific objectives, scope, and resources. Projects
are typically constrained by factors such as time, cost, and quality.

Characteristics of a Project:

1. Temporary: Projects have a defined start and end date.

2. Unique: Each project is distinct, with its own set of objectives and requirements.

3. Progressive Elaboration: Project details are developed and refined as the project progresses.

4. Cross-Functional Teams: Projects often require collaboration across different departments

or disciplines.

5. Specific Objectives: Projects have clear, measurable goals and deliverables.

Types of Projects:

1. Construction Projects: Building infrastructure, such as roads, bridges, or buildings.

2. Information Technology (IT) Projects: Developing software, implementing systems, or

upgrading hardware.

3. Research and Development (R&D) Projects: Conducting scientific experiments or

developing new products.

4. Marketing Projects: Launching campaigns, conducting market research, or rebranding

initiatives.

5. Event Management Projects: Organizing conferences, festivals, or corporate events.

6. Organizational Change Projects: Implementing new processes, restructuring, or

mergers/acquisitions.

Project Life Cycle:

1. Initiation: Defining the project, its objectives, and obtaining approval to proceed.

2. Planning: Developing a detailed project plan, including scope, schedule, budget, and
resources.
 3. Execution: Carrying out the project plan and producing deliverables.

4. Monitoring and Controlling: Tracking project performance, managing changes, and ensuring
adherence to the plan.

5. Closing: Formalizing project completion, obtaining acceptance from stakeholders, and

transitioning deliverables.

Project Management Process:

1. Initiating: Identifying stakeholders, defining project objectives, and obtaining authorization.

2. Planning: Developing a comprehensive project plan, including scope, schedule, budget, and
resources.

3. Executing: Coordinating resources, tasks, and activities to carry out the project plan.

4. Monitoring and Controlling: Tracking project performance, managing changes, and ensuring
adherence to the plan.

5. Closing: Formalizing project completion, obtaining acceptance, and releasing resources.

Tools & Techniques of Project Management:

1. Project Management Software: Tools like Microsoft Project, Asana, or Trello for scheduling,
task management, and collaboration.

2. Gantt Charts: Visual representations of project schedules, showing tasks, dependencies, and
timelines.
 3. Work Breakdown Structure (WBS): Hierarchical decomposition of project deliverables and
tasks.

4. Critical Path Method (CPM): Technique for identifying the longest sequence of dependent
tasks to determine project duration.

5. Earned Value Management (EVM): Methodology for measuring project performance by

integrating scope, schedule, and cost.

Tools and Techniques of Project Management

Techniques in project management range from traditional to innovative ones. Which one to
choose for running a project, depends on project specifics, its complexity, teams involved,
and other factors. Most of them can be used in various fields, however, there are techniques
that are traditionally used in certain areas of activity, or are developed specifically for certain
fields. Below, we’ve listed the most popular techniques that are used in project
management.

1. Classic Technique

The simplest, traditional technique is sometimes the most appropriate for running projects.
It includes preparing a plan of upcoming work, estimating tasks to perform, allocating
resources, providing and getting feedback from the team, and monitoring quality and
deadlines.

Where to use: this technique is ideal for running projects performed by small teams, when
it’s not really necessary to implement a complex process.

2. Waterfall Technique

This technique is also considered traditional, but it takes the simple classic approach to the
new level. As its name suggests, the technique is based on the sequential performance of
tasks. The next step starts when the previous one is accomplished. To monitor progress and
performed steps, Gantt charts are often used, as they provide a clear visual representation
of phases and dependencies.

Where to use: this technique is traditionally used for complex projects where detailed
phasing is required and successful delivery depends on rigid work structuring.
3. Agile Project Management

Agile project management method is a set of principles based on the value-centered

approach. It prescribes dividing project work into short sprints, using adaptive planning and
continual improvement, and fostering teams’ self-organization and collaboration targeted to
producing maximum value. Agile frameworks include such techniques as Scrum, Kanban,
DSDM, FDD, etc.

Where to use: Agile is used in software development projects that involve frequent
iterations and are performed by small and highly collaborative teams.

4. Rational Unified Process

Rational Unified Process (RUP) is a framework designed for software development teams
and projects. It prescribes implementing an iterative development process, where feedback
from product users is taken into account for planning future development phases.
 Where to use: RUP technique is applied in software development projects, where end user
satisfaction is the key requirement.

5. Program Evaluation and Review Technique

Program Evaluation and Review Technique (PERT) is one of widely used approaches in
various areas. It involves complex and detailed planning, and visual tracking of work results
on PERT charts. Its core part is the analysis of tasks performed within the project. Originally,
this technique was developed by the US Navy during the Cold War to increase efficiency of
work on new technologies.

Where to use: this technique suits best for large and long-term projects with non-routine
tasks and challenging requirements.

6. Critical Path Technique

Actually, this technique is an algorithm for scheduling and planning project works that is
often used in conjunction with the PERT method discussed above. This technique involves
detecting the longest path (sequence of tasks) from the beginning to the end of a project,
and defining the critical tasks. Critical are tasks that influence the deadlines of the entire
project, and require closer attention and thorough control.

Where to use: Critical Path technique is used for complex projects where delivery terms and
deadlines are critical, in such areas as construction, defense, software development, and
others.
7. Critical Chain Technique

Critical Chain is a more innovative technique that derives from PERT and Critical Path
methods. It is less focused on rigid task order and scheduling, and prescribes more flexibility
in resource allocation and more attention to how time is used. This technique emphasizes
prioritization, dependencies analysis, and optimization of time expenses.

Where to use: like the previous two techniques, it is used in complex projects. As it is
focused on time optimization and wise resource allocation, it suits best for projects where
resources are limited.

8. Extreme Project Management

Extreme project management technique (XPM) emphasizes elasticity in planning, open

approach, and reduction of formalism and deterministic management. Deriving from
extreme programming methods, it is focused on human factor in project management
rather than on formal methods and rigid phases.

Where to use: XPM is used for large, complex and uncertain projects where managing
uncertain and unpredictable factors is required.
9. Project Management Tools

When applying any of the techniques to the project you need to accomplish, you also need
to use specific tools for successfully implementing the technique. Here’s a list of software
tools that are used in project management on different work steps.

● For Organizing Workflow & Planning

This step is the core part of starting a project: it defines how the project will be
performed, and how the quality of its outcome will be ensured. Large companies
often use such comprehensive solutions as MS Project. For smaller teams, various
alternatives are available. They don’t provide all the rich functionality typical to
complex and expensive tools, but they have planning and roadmap features that are
sufficient for visualizing future project progress.
● For Communication
Being the key point in many techniques and methodologies, communication within a
project team needs to be properly organized. While using email for formal
communication and important messages, it’s also essential to have a corporate
messenger – Slack and Skype are the most popular ones. And, if your team members
use different tools to communicate, eliminate the pain of having multiple
messengers by integrating them.
● For Scheduling
When allocating resources and planning for future, it’s crucial to know who on the
team is available for specific dates. Use scheduling software for that! Such tools as
actiPLANS provide a clear visual chart of absences for upcoming dates, and allow to
see all necessary details to team members’ leaves and time off.
● For Time management
Knowing where your team’s time goes not just helps managing current project risks.
It also provides valuable information for future planning and estimating. Time
management tools, such as actiTIME, help managers understand both individual
time expenses and team’s results for any period. Informative reports with time &
 cost summaries and notes to the logged time provide insights into how time is used
and what can be optimized.
● For Finance & Accounting
For any project manager and business owner, understanding financial outcome of
the projects is crucial for analysis and future planning. Most used accounting tools –
QuickBooks, Zoho, Freshbooks – help collect this information. For smaller project
teams, other accounting solutions can be reasonable. They require less investment,
but also provide insights on project profitability, teams’ performance, and
estimation accuracy.

Project Team and Scope of Project Management:

● Project Team: The individuals responsible for executing the project tasks, typically including
project managers, team members, stakeholders, and external vendors.

1. Project Manager: Responsible for overall project planning, execution, and delivery. They
coordinate the efforts of the project team, manage risks, and ensure adherence to
timelines and budgets.

2. Project Sponsor: The individual or group that initiates the project and provides the
necessary resources and support. They are often senior stakeholders who champion the
project within the organization.

3. Project Team Members: Individuals with specific skills and expertise required to
complete various tasks within the project. They work under the guidance of the project
manager to execute project activities.

4. Subject Matter Experts (SMEs): Individuals who possess specialized knowledge or

experience relevant to specific aspects of the project. They may be consulted for insights
or provide input during decision-making processes.

5. Stakeholders: Individuals or groups affected by the project or with an interest in its

outcome. Stakeholders may include customers, end-users, regulators, or other parties
impacted by the project.

6. External Contractors or Consultants: Individuals or firms hired to provide additional

expertise or resources not available within the project team.

● Scope of Project Management: Encompasses defining project objectives, creating plans,

managing resources, controlling project execution, and delivering outcomes within the
defined scope, time, and budget constraints.

1. Initiation: Defining the project's purpose, objectives, and feasibility. This stage involves
identifying stakeholders, securing initial resources, and obtaining approval to proceed.

2. Planning: Developing a comprehensive project plan outlining tasks, resources, timelines,

and budgets. This phase involves defining project scope, creating a work breakdown
structure (WBS), identifying risks, and establishing communication channels.
 3. Execution: Implementing the project plan by coordinating resources, managing
stakeholders, and completing project activities. The execution phase involves closely
monitoring progress, resolving issues, and making necessary adjustments to ensure
project objectives are met.

4. Monitoring and Controlling: Continuously tracking project performance against the

baseline plan, identifying deviations, and implementing corrective actions as needed.
This involves monitoring key performance indicators (KPIs), conducting regular status
meetings, and maintaining communication with stakeholders.

5. Closure: Formalizing project completion by delivering the final product, obtaining

acceptance from stakeholders, and documenting lessons learned. This phase includes
conducting post-project reviews, archiving project documentation, and transitioning
deliverables to end-users or operational teams.

6. Integration Management: Ensuring that all project components are properly

coordinated and aligned with the overall project objectives. This involves managing
dependencies between tasks, resolving conflicts, and integrating changes into the
project plan as necessary.

7. Quality Management: Implementing processes to ensure that project deliverables meet

specified quality standards. This includes defining quality criteria, performing inspections
and reviews, and continuously improving project processes.

8. Risk Management: Identifying, assessing, and mitigating risks that may impact project
success. This involves creating risk registers, developing contingency plans, and
monitoring risk triggers throughout the project lifecycle.

9. Communication Management: Establishing effective communication channels to

facilitate information flow among project stakeholders. This includes defining
communication protocols, disseminating project updates, and addressing stakeholder
feedback and concerns.

Project Organization:

● Functional Organization: Project team members are part of functional departments and
report to functional managers.

● Matrix Organization: Project team members report to both a functional manager and a
project manager.

● Projectized Organization: Project team members work exclusively on projects and report
directly to the project manager.
Functional Organization:

● Description: Project team members are grouped by their functional areas (e.g., marketing,
engineering, finance) and report to functional managers.

● Characteristics:

● Clear lines of authority within functional departments.

● Project manager has limited authority over team members who report to functional
managers.

● Example: Software developers working on a project while reporting to the IT department

manager.

2. Matrix Organization:

● Description: Project team members report to both a functional manager and a project
manager, resulting in a dual reporting structure.

● Characteristics:

● Project manager has authority over project-related decisions and resources.

● Functional managers provide technical expertise and resource allocation.

● Example: Marketing specialists working on a project while reporting to both the marketing
manager and the project manager.

3. Projectized Organization:

● Description: Project team members work exclusively on projects and report directly to the
project manager.
 ● Characteristics:

● Project manager has full authority and control over project resources and decisions.

● Project team members may be dedicated solely to the project for its duration.

● Example: Construction workers dedicated to a construction project and reporting directly to

the project manager.

Project Organization Considerations:

● Project Size and Complexity: Larger and more complex projects may require a more
centralized project organization to ensure effective coordination and control.

● Resource Availability: Limited availability of skilled resources may influence the choice of
project organization structure.

● Project Duration: Longer-term projects may benefit from a projectized organization to

maintain continuity and focus.

● Organizational Culture: The existing organizational culture and norms may influence the
choice of project organization structure.

Advantages and Disadvantages:

● Functional Organization:

● Advantages: Efficient utilization of specialized resources, clear career paths for team
members.

● Disadvantages: Limited project manager authority, potential for conflicting priorities

among functional managers.

● Matrix Organization:

● Advantages: Flexibility in resource allocation, balance between functional and

project priorities.

● Disadvantages: Dual reporting can lead to role confusion, potential for power
struggles between project and functional managers.

● Projectized Organization:

● Advantages: Clear project focus, streamlined decision-making, efficient

communication.

● Disadvantages: Resource contention between projects, potential for duplication of

effort in functional areas.