PROJECT MANAGEMENT

(Busman 104)
Topic 1. Overview of Project Management
2. Project Initiation
3. Project Activity Planning
4. Project Budgeting and Cost estimation
5. Project Scheduling
6. Project Resources Allocation
7. Project Monitoring and Information System
8. Project Control
9. Project Auditing
10. Project Termination
Topic 1: Overview of Project Management
Overview of Project Management refers to the basic understanding
of project management as a discipline, focusing on how projects are
planned, executed, monitored, and completed.
It provides insights into the key principles, processes, and tools used
to effectively manage projects from initiation to closure.
Key Aspects of Project Management:
Definition of a Project:
• A project is a temporary endeavor undertaken to create a
unique product, service, or result.
• It has a defined beginning and end, with specific objectives to
achieve.
• A project is a temporary unique group activity intended to meet
specific objectives with constraints and requirements in scope,
budget, schedule, resources, performance factors and value
designed to meet customers.
Based from the definition, a project is different form other
organizational efforts being undertaken by most organizations
because of the following reasons:
1. it has an established objective
2. it has defined span with beginning and an end
3. it requires the involvement of several department and
professionals
4. it is doing something that has never been done before
 5. it has specific time, budget , resources, performance and
value added requirements
A project must come up with an output upon its completion called
deliverable.
A deliverable is the measurable and tangible outcome or the result
of the completion of the project of the end of the project’s life cycle.
It could in the following forms:
1. hardware deliverable – these are items like table, prototype or
a piece of equipment
2. software deliverable – these items are like report, studies,
handout and documentation
3. interim deliverable – these are items that could be hardware or
software and gradually advances as the project progresses
PRIMARY GOAL OF A POJECT
Project goals prioritize what is most essential.
Yet, at some meetings of people involved in a project these primary
goals are not even discussed.
In order for the project to progress smoothly each meeting must be
planned.
A small leap is alright for as people who are responsible for the
completion of the project should be driving it toward in a speedy,
secure, and realistic manner.
The primary goals of a project are as follows:
1. Conclude the project within the planned time table.
Within the specific time decided, the project must be completed.
This means that personnel responsible must do all feasible means
to end the project on time.
Presumption and ineffectiveness during planning of the scope
has to be avoided.
This avoidance will give realistic time schedule with which to
work.
2. Complete the project within the programmed budget.
Budget are set in to ensure that expenditures are well managed and
the money goes to where it is intended.
Completion of the project within the programmed budget makes
obvious that personnel working on it has manage the project
responsibly.
3. End the project with the identical level of quality.
Regrettably, quality is commonly given up when a project delay
happens in order to catch up with the deadline.
In order to conclude a project in a speedy manner, some portions
of it will require slimming down or slashing entirely.
Any revision on the project plan due to problems encountered
must in now way barter with quality.
4. Terminate the project within the detailed guidelines.
In order to delight the customers, it is imperative to meet the
customer’s needs.
Concluding the project with the essentials the customer truly
hunted creates the “wow” feeling.
5. Make the best of the task that has been given.
A perfect project is unattainable.
A project may experience major peculiarities and setback like
terror attacks, severe calamities of typhoons and earthquakes, or
war.
With great project team leaders and team a project could still be
successful despite these disasters.
Project goals were attained because they have done their best with
what appeared their way.
Classification of a projects
Management always makes emphasis on projects that address the
needs and objectives of the organization.
There are five classifications of projects in the portfolio of most
organization-compliance, emergency, mission critical operational
and strategic projects.
All projects are selected based on selection criteria link to
organization strategy except compliance and emergency one due to
the necessity nature of its execution.
 CLASSIFICATION OF PROJECT

Project Type Definition Examples

1. Compliance It is a “must” project to meet Healthcare information
the new requirements enforced protection projects
by management itself and
regulating bodies like gov’t. Environmental regulation
Penalties await non- projects
compliance.

2. Emergency It is a “must-do” project that is Rebuild factory damage by fire

required to meet emergency Renovate plant destroy by a
condition. If not done will strong typhoon
impair operation and will not
Be able to fulfill the core
competencies of the firm.
 Project Type Definition Examples

3. Mission critical It is a project critical to the Construction of a data center

mission of the firm. for an application services
If not accomplished shall cause Provider
Immediate and unacceptable
Negative impact to the A new facility to test products
business,

4. Operational Operational project is Six sigma projects

considered necessary in order
to give full support to the
present operations like delivery
systems upgrading for
efficiency product costs
cutback and performance
enhancement.
 Project Type Definition Examples

5. Strategic It is a project that is vital to New product design

support the long term
mission of increasing Development projects
revenue and market share.
Six Sigma projects are structured initiatives aimed at improving
processes by identifying and eliminating defects or inefficiencies.
They follow a data-driven methodology, typically the DMAIC
framework (Define, Measure, Analyze, Improve, Control) or
DMADV (Define, Measure, Analyze, Design, Verify) for designing
new processes.
Example in Manufacturing
Objective: Reduce production defects in an assembly line.
Project Example: Reducing defects in automotive parts by identifying
the root causes of errors in welding or assembly processes.
The Project Life Cycle
A project life cycle is also referred to as project lifespan.
A project life cycle is a compilation of a commonly sequential project
phases from the time it is originally envisioned until the time it is
either make use of as a success or discarded as a failure.
The life cycle of a project serves as a basis for managing a project
considering it is limited life span.
There are expected changes in the degree of effort and focus for each
stage in the cycle of the project.
There are a number of life cycle models based on the kind of industry
or type of project.
Commonly, each project sequentially undergoes four stages namely
initiating, planning, executing and delivering.
The project starts as soon as a “go ahead” signal from management is
given.
Here are the different phases in the project life cycle.
1. Conceive/Initial – In this stage the preliminary objective and
technical specifications for the project is developed; the scoop of
work is decided; the necessary resources are identified; teams are
formed and important organizational stakeholders are sought for
commitments.
2. Planning – During this phase all comprehensive specification,
schematics, schedule and other plans are developed; the individual
pieces of the project are broken down; individual assignments are
prepared; and the process of completion clearly described.
3. Execution – In this step the actual work of the project is executed,
the system developed, or the product created or constructed.
here the bulk of project team labor is carried out.
The calculations made on time, cost and specification during the
previous stages are used for control.
4. Transfer/Delivery/Closure – This leg occurs when the project is
completed and transferred to the customer, its resources
reassigned and the project formally ends.
Why Project Management?
More and more commercial organizations of all sizes are employing
project management as their standard way of doing business.
Today it is no longer a special need management , thus rising fraction
of effort of a typical firm is being committed to projects.
The importance and role of projects in contributing to the strategic
direction of organizations is now given more emphasis.
Project management is the science and art in the application of
knowledge, skills and techniques to execute projects effectively
and efficiency toward the accomplishment of its goals and objectives.
It could be applied in the development of a new product, the launch
of a new service, or marketing campaign.
In order to complete strategically in the market, project management
could be developed as a competency for organizations, binding project
outcomes to business goals.
More and more efforts of the organization are geared towards projects.
The role of projects in contributing to the strategic direction of the
firm is now really becoming so significant.
Briefly, here are the few environmental forces that contribute to the
increase demand for good project management encompassing all
industries:
1. Shorten product life cycle – In today’s generation many
industries are highly technical where product life cycles ranges
form one to three years.
 That is why time to market new products with short life cycles is of
great essence.
Speed is now a source of competitive advantage.
A lot of organizations are now forming cross functional teams in
order to place new products and services in the market as soon as
possible.
2. Worldwide competition – The demands of the market is quality
products and services in reasonable amount.
So many organizations today are using quality management and
improvement to achieve better result in doing business.
In order to be flexible and efficient in getting things accomplished
project management is employed with focus on time, cost and
performance.
3. New knowledge bang – As time progresses, projects are becoming
more complex and advance.
In today’s digital age of divergent technologies, materials,
specification, codes, aesthetics equipment and required specialist
and more to product complexity.
Project management an important discipline makes things simple.
4. Organizational rightsizing – Lately, it is necessary for survival to
dramatically restructure the organizational life.
The trend now is flatter and leaner organizations replacing middle
management with project management to make things completed.
Nowadays, outsourcing important part of project work is a business
style.
5. Enhanced focus on customer – Customer satisfaction is the
objective of every business.
Customers demand for customized products and services that
provide for their individualized needs and requests.
Project management is important in the development of more
customized products and services.
6. Small projects mean big troubles- It is the major challenge for
management to prioritize resources among projects in the
portfolio.
Small projects if done inefficiently will soon add up to huge
amount of money.
 Advantages and Disadvantages of Project Management
Advantages
1. A more resourceful handling of resources (both human and
monetary) as both the schedule and the budget are clear in the
project plan.
2. Less cost and better quality of the end product/service conveyed by
executing meticulous cost management and quality processes.
3. An improve teamwork atmosphere because of the implementation of
a formal process to acknowledging /resolving conflicts
 Disadvantages
1. Cost overhead – all actions that can outlay sizable sum of money
must be kept aligned with overall business strategy to make sound
investment.
2. Project Managers become so blocked and so defensive to their
own mythology that they reject to try out with a different one that
may be quicker and superior for their existing project.
Project Management:
Project management involves the application of knowledge, skills,
tools, and techniques to meet project requirements.
Phases of Project Management:
 Initiation: Defining the project’s goals, scope, and
stakeholders.
 Planning: Creating a roadmap, including schedules, budgets,
and risk management plans.
 Execution: Carrying out the planned activities to achieve
project objectives.
  Monitoring and Controlling: Tracking progress, identifying
variances, and making necessary adjustments.
 Closure: Finalizing all activities, delivering the output, and
reviewing lessons learned.
Key Components:
Scope Management: Ensuring all required tasks are included
and controlled.
Time Management: Planning and managing schedules to ensure
timely completion.
Cost Management: Budgeting and controlling project expenses.
Quality Management: Ensuring the deliverables meet quality
standards.
Risk Management: Identifying and mitigating potential risks.
Project Manager’s Role:
Responsible for leading the project team, managing resources,
and ensuring the project aligns with its goals.
Project Management Tools:
Tools like Gantt charts, project management software (e.g., MS
Project, Trello, Asana), and communication tools help
streamline processes.
The primary goal of project management is to successfully achieve
the project's objectives within defined constraints, such as scope,
time, cost, quality, resources, and risks, while maximizing value
and meeting stakeholder expectations.
In essence, project management aims to:
1. Deliver the project on time – Ensure the project meets its
deadlines.
2. Stay within budget – Manage financial resources efficiently.
3. Achieve the project’s scope and quality standards – Deliver the
intended outcomes as specified.
4. Optimize resource use – Make the best use of available human,
material, and technical resources.
 5. Mitigate risks – Identify, assess, and address potential
challenges.
6. Ensure stakeholder satisfaction – Communicate effectively
and meet or exceed stakeholder expectations.
These goals are guided by the project management triangle (scope,
time, and cost) while ensuring alignment with the organization's
broader strategic objectives.
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