Section I: The Project Management

Framework
Introduction
Dr. Saif Ullah
Introduction
Need of Project Management
 Economic recessions and other external factors put lot of
pressure on management to improve productivity
 Management has no control on external factors
 Management focused on internal factors, ie., Cost reduction,
down sizing, but there is limit lower bound on it.
 Optimized usage of resources
 Usually the organizational structure cannot respond rapidly
to fast changing environment due to long channels of
decision making process.
Introduction
Need of Project Management
 Project management id one of the newly developed
technique
 It was confided for defense related projects
 Now proactive companies take better use of this technique.
 For example, banking sector, hospitals, forecasting of
seasonal item producers
Introduction
What is Project?
 It is a series of activities and tasks with certain objectives and
constraints. i.e., series of activities have…
 Specific objective
 Defined scope or specification
 Start and completion time limit
 Have defined life cycle i.e., beginning and end with the
number of phases in between
 Have limits of funds
Introduction
What is Project?
 Set of activities that are essentially unique and non-repetitive
for different projects
 They consumes resources which depends on the department
needs
 Project is defined as “any endeavor that is temporary in
nature with a beginning and end time limit. The project must
create some unique product or service”. Every task cannot
be considered as a project.
Introduction
What is Project?
 J. Rodney Turner (Editor of international journal of Project
Management) defines project as :
 An endeavor in which human, machines, material and
financial resources are organized in a novel way to undertake
a unique scope of work, of given specification, within the
constraints of cost and time, as to deliver beneficial change
defined by the quantitative and qualitative objectives.
Introduction
Examples of Projects
 Developing a new product or service
 Effecting a change in structure, staffing or style of an
organization
 Designing a new transportation vehicle
 Constructing a building or facility
 Implementing a new business procedure or process
Introduction
Successful Project
 The project which is completed
 In Allocated time
 In allocated budget
 In minimum or mutually agreed specifications and scope
 According to customers requirements
 By utilizing the assigned resources in effective and efficient
way.
Introduction
What is Project Management?
 Project management body of knowledge (PMBOK) defines
project management as
 The application of knowledge, skills, tools and techniques to
carry out project activities in order to meet the stakeholder’s
needs and expectations from a project.
 It is the management of project related activities in specified
time, cost and performance standards along with good
customer relations.
Introduction
Related Endeavors
 Portfolio
Collection of projects, programs and sub-portfolios and
operations managed as a group to achieve strategic objectives.
 Programs
Programs are grouped within portfolio and are comprised of
subprograms, projects or other work that are managed in a
coordinated fashion in support of the portfolio.
Introduction
 Programs
It is a group of projects managed in a coordinated way to obtain
benefits not available from managing them individually. For
example, ABC airplane program includes both project or
project to design and develop aircrafts as well as ongoing
manufacturing and support of that aircraft in the field.
 Projects
Projects or programs with in the portfolio may not necessarily
be interdependent or directly related. They are linked to
organization’s strategic plan by means of the organization’s
portfolio
Introduction
Related Endeavors
 Programs
 Many electronic firms have program managers who are
responsible for both individual product releases (projects)
and the coordination of multiple releases over time (ongoing
operations)
Introduction
Related Endeavors
 Sub Projects
 Projects are divided into more manageable components or
subprojects. They are often contracted to an external
enterprise or to another functional unit in the performing
organization.
 For example, subprojects according to human resource skill
requirement, such as installation of plumbing or electrical
fixtures on a construction project.
 Subprojects involving technology, such as automatic testing
of computer programs in a software development project
Introduction
Related Endeavors
 Project Portfolio Management
 It refers to the selection and support of projects or program
investments. These investments in projects and programs are
guided by the organization’s strategize plan available
resources.
 it refers to centralized management of one or more
portfolios to achieve strategic objectives
Introduction
Related Endeavors
 Project Portfolio Management
 It aligns with organizational strategies by selecting the right
programs or projects, poetizing the work, and providing the
needed resources, whereas program management
harmonizes its projects and program components and
controls interdependencies in order to realize specified
benefits.
Introduction
Related Endeavors
 Project Management
 Project management develops and implements plans to
achieve a specific scope that is driven by the objectives of the
program or portfolio it is subjected to and ultimately, to
organizational strategies.
Introduction
Managing Project typically Includes
 Identifying requirements
 Addressing various needs, concerns and expectations
 Setting up and carrying out communication among
stakeholders that are active, effective and collaborative
 Managing stakeholders towards meeting project
requirements
 Balancing the competing project constraints, i.e., Scope,
Quality, Schedule, Budget, Resources and Risk
Introduction
Managing Project typically Includes
 In one of these factors is changed, other factor is likely to be
affected. For example, if the schedule is shortened, often the
budget needs to be increased to add additional resources to
complete the same amount of work in less time.
 The project team needs to be able to assess the situation,
balance the demands and maintain proactive communication
with stakeholders in order to deliver successful project.
Project Management Context
Project Phases and Project Life Cycle
 Projects involve uncertainty
 Organizations usually divide the projects into several project
phases to improve management control
 The project phases are known as project life cycle
Project Management Context
Project Phases Characteristics:
 Each project phase is marked by completion of one or more
deliverables.
 Deliverable is a tangible, verifiable work product i.e.,
feasibility study, or detailed design of a product.
 The conclusion of a project phase is marked by a reviewer of
both key deliberates and project performance to date: to
identify:
 If the project should continue to next phase
 Direct the errors etc. these are called phase exit, stage gates
or kill points
Project Management Context
Project Phases Characteristics:
 Each project phase is marked by completion of one or more
deliverables.
 These deliberates are related to the primary phase deliverable
and phases take their names from these items, i.e.,
requirement, design, built, test, startup etc.
Project Management Context
Project Phases Characteristics:
Example of single phase project
Project Management Context
Project Phases Characteristics:
Example of Project with overlapping phase
Project Management Context
Project Life Cycle Characteristics:
 It serves to identify the beginning and end of a project
 It also identify that which transitional actions at the beginning
and end of the project are included and which are not.
Project life cycle defines
 What technical work should be done in each phase (i.e., is
the work of the architect part of definition phase or part of
execution phase)
 Who should be involved in each phase (i.e., implementers
who need to be involved with requirement and design)
Project Management Context
Project Life Cycle Characteristics:
 Cost and staffing level are low at start, higher towards the
end and drop rapidly as the project draws to conclusion.
 Probability of successfully completing the project is higher at
the begging of the project and probability of success is higher
near the end of project.
 The ability of stakeholders to influence the final
characteristics of the project product and final cost of the
project is higher at the start of the project and it decreases as
the project proceeds.
Project Management Context
Project Life Cycle Characteristics:
Project Management Context
Project Life Cycle Characteristics:
 Project life cycle and product life cycle are two different
things, for example, project undertaking to bring a new
desktop computer to market is but one phase or stage of the
product life cycle.
 Subprojects within the projects have their own project life
cycles. For example, architect’s design projects will have its
own series of phases from conceptual development through
definition and implementation to closure. The architect may
treat designing the facility and supporting the construction as
separate projects with their own distinct phases.
Project Management Context
Project Life Cycle of a Construction Project
 Feasibility, planning and design, construction, turnover and
startup
Project Management Context
Project Stakeholders
 The individuals and organizations that are actively involved in
the projects whose interests may be positively or negatively
affected as a result of project execution or project
completion. For example,
 Project manager i.e., who manages the project
 Customer i.e., who use the product
 Performing organization i.e., whose employees are directly
involved in doing the project
 Project team member i.e., the group who is performing the
work
Project Management Context
Project Stakeholders
 Spooner i.e., an individual or group with in or external to
the performing organization that provides the financial
resources.
 In addition to these, there are many different names and
categories of project stakeholders, for example, owner and
funders, sellers and contractors, team members and their
families, government agencies.
 The grouping of stakeholders is primarily an aid to identify
which individuals and organizations view them as
stakeholders.
Project Management Context
Organizational Influences
 Projects are the part of an organization which are larger than
the project
 Corporations, government agencies, health care institutes,
international bodies and others
 The maturity of the organization with respect to its project
management systems, culture, style, organizational structure
and project management office can influence the project
Project Management Context
Organizational Influences
 Organizational system
 The project based organizations which primarily generate their
revenue from performing projects from others, for example,
architecture firms, engineering firms, consultants, government
contractors etc.
 The project based organizations that have adopted management by
projects. These organizations tend to have management systems in
place to facilitate project management, for example, their financial
systems are often specifically designed for accounting, tracking
and reporting on multiple simultaneous projects.
Project Management Context
Organizational Influences
 Organizational system
 Non-project based organizations often lack management
system designed to support project needs efficiency and
effectiveness.
 The absence of project management system makes project
management systems in them.
 These organizations have departments or other subunits that
operate as project based organizations with system.
Project Management Context
Organizational Influences
 Organizational system
 If organization rewards its functional managers for charging
staff time to projects, then the project management team
may need to implement controls to ensure that the assigned
staff members are being used effectively on the project.
Project Management Context
Organizational Influences
 Organizational Cultures and Styles
 Organizational cultures influence on projects for example
 A team proposing an unusual or high risk approach is more
likely to secure approval in an aggressive or entrepreneurial
organization
 A project manger with a highly participative style is apt to
encounter problems in a rigidity hierarchical organization,
while a project manager with an authoritarian style will be
equally challenged in a participative organization.
Project Management Context
Organizational Influences
 Functional Organization
 Each employee has one clear superior. Staff members are
grouped by specialty, such as production, marketing,
engineering and accounting.
 The perceived scope of the project is limited to the
boundaries of the function. i.e., engineering department in a
functional organization will do its work independent of the
manufacturing department etc.
Project Management Context
Organizational Influences
 Functional Organization
Project Management Context
Organizational Influences
 Functional Organization
 When a new product development is undertaken on a purely
functional organization, the design phase is often called
design product and includes only engineering department
staff.
 If questions about manufacturing arise, they are passed up the
hierarchy to the department head, who consults with the
head of the manufacturing department. The engineering
department head then passes the answer back down the
hierarchy to the engineering project manager.
Project Management Context
Organizational Influences
 Projectized Organization
 Team members are collocated. They have organizational units
called departments, but these groups either report directly to
the project manager or provide support services to the
various projects.
Project Management Context
Organizational Influences
 Projectized Organization

Project Management Context
Organizational Influences
 Matrix Organization
 They have blend of functional and projectized organization.
Project Management Context
Organizational Influences
 Weak Matrix Organization
 Weak matrices maintain many of the characteristics of a
functional organization, and project manager role is more
that of a coordinator than that of a manager.
Project Management Context
Organizational Influences
 Weak Matrix Organization
Project Management Context
Organizational Influences
 Balance Matrix Organization
Project Management Context
Organizational Influences
 Balance Matrix Organization
 balanced matrix organization recognizes the need for a
project manager, it does not provide the project manager
with the full authority over the project and project funding.
Project Management Context
Organizational Influences
 Strong Matrix Organization
 Strong matrices have many characteristics of the projectized
organization, full time project manager with considerable
authority and full time project administrative staff
Project Management Context
Organizational Influences
 Strong Matrix Organization
Project Management Context
Key General Management Skills
 General management is broad subject dealing with every
aspect of managing an ongoing enterprise i.e.,
 Finance and accounting, sales and marketing, research and
development, and manufacturing and distribution
 Strategic planning, tactical planning, and operational planning
 Managing work relationship through motivation, delegation,
supervision and other techniques
Project Management Context
Key General Management Skills
 Leading and managing
 Kotter says that managing primarily concerned with
consistently producing key results expected by stakeholders.
While, leading involves,
 Establishing direction i.e., developing both vision of future
and strategies for producing the changes needed to achieve
that vision.
 Aligning people i.e., communicating the vision by words and
deeds to all those whose cooperation may be needed to
achieve the vision
Project Management Context
Key General Management Skills
 Leading and managing
 Motivating and inspiring i.e., helping people energize
themselves to overcome political bureaucratic and resource
barriers to change
 On large projects, a project manager is generally expected to
be the project leader as well.
 Leadership is not limited to the project manager and it must
be demonstrated at all levels of the projct.
Project Management Context
Key General Management Skills
 Communicating
 It involves exchange of information. The sender is responsible
for making the information clear, unambiguous and complete
so that the receiver can receive it correctly.
 The receiver is responsible for making sure that the
information is received in its entirely and understood
correctly.
Project Management Context
Key General Management Skills
 Communicating
 It could be
 Written and oral, listening and speaking
 Internal (with in the project) and external (to the customer,
the media, the public)
 Formal (reports, briefings etc) and informal (memos,
conversations)
 Vertical (up and down organization) and horizontal (with
peers and partner organization)
Project Management Context
Key General Management Skills
 Communicating
 Choice of media: when to communicate in writing, when to
communicate orally, when to communicate informal and
when to communicate in reports.
 Writing style: active cersus passive voice, sentence structure,
choice of words
 Presentation techniques: body language, design of visual aids
etc.
 Meeting management techniques: preparing an agenda,
dealing with conflicts etc
Project Management Context
Key General Management Skills
 Nigotiating
 It involves, conferring with others to come to the terms with
them or reach an agreement.
 During project staff is likely to negotiate for any of the following:
 Scope, cost and schedule objectives
 Changes of the scope, cost or schedule
 Contract terms and conditions
 Assignments
 Resources
Project Management Context
Key General Management Skills
 Problem Solving
 It involves causes and symptoms of problem
 It may be internal (i.e., employee is reassigned to another
project) or it could be external (i.e., a permit required to
begin work is delayed)
 Problem may be technical i.e., differences of opinion
 Problem may be interpersonal, i.e., personality or style clash
Project Management Context
Key General Management Skills
 Influencing the Organization
 It involves the ability to “get things done”
 It requires understanding of both formal and informal
structures of all organizations involved. i.e., performing
organization, customer, partners, contractors and numerous
others as appropriate.
 It also require an understanding of the mechanics od power
and politics
Project Management Bodies in the
World
History of Project Management
 History of PM can be traced back to pyramids and
Great Wall of China. They were complex structures built
with high standards that have stood the test of time, but no
documented management techniques are available with us.
 (In flood days, the work force could not work in their
fields and so opted to work on pyramids, the work for
which they were probably paid unlike Hollywood movies
that they were treated as slaves)
Project Management Bodies in the
World
History of Project Management
 Modern day PM is associated with Henry Gantt’s
development of bar chart (also called Gantt Charts) and
special project management techniques developed in America
and Britain in their military and aerospace projects.
 Traditionally, PM was considered more of an art but with
growing number of PM institutions, associations and bodies
of knowledge, its scientific element has also evolved
enormously.
Project Management Bodies in the
World
History of Project Management
 Today, rapidly changing technologies, fierce market
competitions and globalization have put companies under
tremendous pressure to come with best possible
management of projects for their survival in 21st century
business world.
Project Management Bodies in the
World
Project Management before 1950
 Forefathers of project management are Henry Gantt, an
American engineer called the father of planning and
control techniques; he developed Gantt charts, which is
widely used as a project management tool.
 It was developed in 1917 by him to explain project
planning, scheduling and controlling (The Handbook of
Industrial Engineers 1982, p.11 acknowledges the Gantt
chart for reducing the time to build cargo ships during
World War 1)
Project Management Bodies in the
World
Project Management before 1950
 Henri Fayol, a French Industrialist is famous for his
creation of the five management functions that form the
foundation of the body of knowledge associated with project
and program management.
 Planning (Forecasting)
 Organizing (Staffing)
 Commanding (Motivation)
 Directing (Coordinating)
 Controlling (Monitoring)
Project Management Bodies in the
World
Project Management in 1950
 Austrian Biologist and philosopher, Dr. Ludwig von Bertalanffy
(1901-1972) was one of the founders of General Systems Theory.
 Total system has its subsystems. (Human body with its
subsystems like muscles, circulatory system etc) (House
construction, many specialists of their independent fields) Every
subsystem has its specialist.
 He identified how subsystem specialists could be integrated
to get a better understanding of the interrelationships and
contributing towards overall knowledge of the operations of
systems.
Project Management Bodies in the
World
Project Management in 1950
 The study of human behaviour can only be accomplished by
studying man in totality.
 Foundation for the evolution and growth of Project
management was laid.
 Kenneth Boulding (1910-1993) was born in England,
graduated from Oxford University, was the co-founder of
General Systems Theory. He did most of his research in
America.
Project Management Bodies in the
World
Project Management in 1950
 In 1956, he identified the communications problem that
could occur during systems integration.
 Subsystems specialists have their own languages.
 For successful integration, all subsystem specialists must
speak the same language.
 PMBOK evolution can be called as an outcome of that
philosophy.
 The 1950s marked the beginning of the modern project
management era. Most of the techniques, we used today in
project management were developed in 1950’s and 1960’s.
Project Management Bodies in the
World
Project Management in 1960
 Development of PERT (Program evaluation and review
technique)
 Development of CPM (Critical Path Method)
 Concept of a single point of responsibility was
introduced. In multi-disciplined projects, one person was
made responsible for completing the project.
Project Management Bodies in the
World
Project Management in 1960
 Development of WBS (Work Breakdown structures)
 Development of Project Life Cycle
 International Project Management Association (IPMA) was
founded in 1967
 Project Management Institute USA (PMI) was formed in
1969
Project Management Bodies in the
World
Project Management in 1970
 Vietnam War, OPEC oil embargo and environmental
pressure groups resulted in putting lot of constraints at that
time on the on-going and future projects.
 PM continued growing into a multi-disciplined profession.
 High Technology companies outside defense and construction
also started using PM.
 Period of refinement for PM
Project Management Bodies in the
World
Project Management in 1980
 PM techniques that were developed in 1960,s, refined in
1970’s were integrated in 1980’s as accepted practices.
 Triangle of time, cost and quality was introduced in projects,
where a change in one parameter could affect the other. (If
time increases, cost also increases)
 Emphasis and focus of PM tools and techniques was
beginning to shift from the implementation phase (where
majority of expenses were incurred) to initiation phase,
where, stake holder’s needs were analysed, feasibility
studies were conducted and risks were assessed.
Project Management Bodies in the
World
Project Management in 1980
 Better forecasting techniques were developed to improve
forecasting the cost of projects that would require 10 to 15
years to complete, because past precedence indicated 200 to
300% cost over runs
 And entire blame was shifted to those who implemented
them but the actual problem was the wrong estimation
Project Management Bodies in the
World
Project Management in 1990 and 2000s
 Fierce competition forced organizations to adopt for
leaner, meaner and more flexible organizational structures
with better PM techniques.
 Small project teams were introduced, who quickly responded
to innovation, new ideas and market competition.
 The concept of Project office was introduced not only for
managing the projects but to promote and develop the
project management culture within the organization.
Project Management Bodies in the
World
Project Management in 1990 and 2000s
 The introduction of PC created an explosion and
proliferation of PM softwares.
 Total quality management (TQM) emerged as a
comprehensive PM technique to introduce the concept of
quality throughout the project life cycle.
Project Management Bodies in the
World
Project Management in 1990 and 2000s
 Project Management Body of Knowledge
 Over the past fifty years, a considerable body of
knowledge has built up around project management tools,
skills and techniques.
 The purpose of the body of knowledge is to identify
and describe the best practices that are applicable to most
projects most of the time.