Chapter 1 - Project Management Framework

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Project Management Program

Project Management
Framework

Based on
PMBOK® Guide – IV Edition

PMI, PMP, CAPM, PgMP, PMI-RMP, PMI-SP and PMBOK are


registered marks of Project Management Institute, Inc.

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Learning Objectives

After the completion of this chapter, the learner will


be able to:

Explain the PMBOK® Guide Project Management Concepts


Explain why Projects Are Undertaken
Describe the Phases of the Project Life Cycle
Describe the five Project Management Process Groups
Name the Nine Knowledge Management Areas
Map the Process Groups and the Nine Knowledge Areas

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Project Management Framework: Topics

 Project versus Operations


 Project Management
 Project manager’s skill set
 Project life cycle
 Project stakeholders
 Different types of organizations
 Project, Program and Portfolio management
 Project management processes
 Project management knowledge areas
 Intersection of processes and knowledge areas

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Definition of Project

Definition as per PMBOK® Guide

A project is a temporary endeavor undertaken to


create a unique product or service.

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Project Definition

 A temporary endeavor – means that every project has a


definite beginning and end.

 Unique means that the product or service or result is


different from other product or service or result.

 Progressively elaborated - proceeding in steps

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Examples of Project

 Building a new office


 Designing a new product or service
 Creating an advertisement campaign
 Creating a new process with a business unit
 Moving from one building to another
 Designing a space vehicle

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Exercise 1: Projects vs Operation

Differentiating between
Projects & Operations

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Project vs Operation

PROJECTS OPERATIONS

Temporary Ongoing

Unique Repetitive

Closes after attaining the Objective is to sustain business


objectives
Prototyping the new car model Assembly line production

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Why Projects Fail ?

 Lack of clearly defined purpose


 Inexperienced project Managers
 Poor estimation of duration and cost
 Cultural and ethical misalignment
 Poor requirements and scope management
 Lack of coordination of resources and activities
 Poor communication
 Inadequate planning of scope, schedule, resources, cost,
risk and quality
 Lack of progress and quality control

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What is Project Management?

 Project Management is the application of knowledge,


skills, tools and techniques to project activities to meet the
project requirements
 Accomplished through the application and integration of
PM processes – Initiating, Planning, Executing, Monitoring
and Controlling and Closing
 Establishing clear project objectives and requirements
 Balancing the competing demands of scope, time, cost
and quality
 Manage uncertain events

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Project Management Benefits

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Project Constraints

Risk

Scope

Budget

Resources

Quality

Schedule
Source: A Guide to the Project Management Body of Knowledge, Fourth Edition (PMBOK® Guide) ©2008 Project Management Institute,

Inc. All Rights Reserved.

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Typical Project Life Cycle

 Projects are divided into phases


 The project will have at least a beginning, intermediate and
ending phase
 Number of phases depends on complexity and size of the
project
 Reviews are conducted at the end of each phase to measure
performance
 Phase end reviews allows to decide if the project should
continue
 The collection of phases is called project life cycle
 The project life cycle defines the beginning and end of a
project
 Fast tracking is running the project phases concurrently
 Examples of phases:- Analysis, Design, Development, Testing

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Characteristics of Project Phase

 The completion of one or more deliverables marks the project


phase

 Deliverables are reviewed and formally accepted by customer at


phase end

 Phase end reviews are also called phase exits, stage gates or
kill points

 Rolling wave planning summarizes the future phases at high


level

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Project Stakeholders

 Individuals and organizations involved in the project


 Those who will be directly or indirectly impacted
 Stakeholders should be identified throughout the project
 They may have a positive or negative influence on the outcome
 Stakeholder influence goes down as the project progresses

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Project Stakeholders

 Key stakeholders include:-


 Project Manager
 Customer / User
 Performing organization
 Project team members
 Project management team
 Sponsor
 Influencers
 PMO

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Project Manager – Skills

 Communication Skills
 Organizational and Planning skills
 Budgeting Skills
 Conflict Management Skills
 Negotiation and Influencing Skills
 Leadership Skills
 Team Building and Motivating skills

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Project, Program & Portfolio Management
 Programs
 Collection of related projects
 Controls are implemented and managed in a coordinated way
 Collective benefits are realized
 Each project has a project manager
 Projects share resources and depends on the outcomes of other projects

 Portfolios
 Collection of programs and projects
 Projects meet a specific business goal or objective
 Includes weighing the value of each project against the portfolios strategic objective
 Ensures efficient use of resources

 Project Management Office [PMO]


 Centralized units to oversee project and programs within the organization
 Establishes and maintains the standards of project management methodologies
 Support managers in planning, estimating, risk management and provide trainings

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Organization Influence
Weak Matrix Balanced Matrix Strong Matrix
Functional Organization Projectized Organisation
Organisation Organisation Organisation

PM’s Title Expediter/Cordinator Expediter/ Coordinator Project Manager Project Manager Project Manager

Decision Making Power Functional manager Functional manager PM and the Functional Project Manager Project Manager
plays a major role, but Manager will have equal
PM will make decisions power

Resources From within a Dept. Project members are Project members are Project members are Project based only
from different from different from different
departments departments departments

Resource Allocation As needed Only 25% will be About 50% will be About 80% will be About 100% will be
assigned to the projects assigned to the projects assigned to the projects assigned to the projects

Resources Reports to Functional manager Functional manager Two manager (FM and Project Manager Project Manager
PM)

PM Reports to Functional manager Functional manager Functional manager and Company Senior Company senior
his/her senior manager manager manager/ higher
authority

After Project Team go back to their Team go back to their Team go back to their Team go back to their No home – move to
Completion Dept. (home) Dept. (home) Dept. (home) Dept. (home) different project or get
laid off

Source: A Guide to the Project Management Body of Knowledge, Fourth Edition (PMBOK®

Guide)
©Copyright Protected ©2008 Project Management Institute, Inc. All Rights Reserved.
Organization Types – Advantages & Disadvantages
Org. Type Advantages Disadvantages

Matrix Highly visible project objectives Not cost effective because of extra administrative personnel

Better Project Manager control over resources More than ONE boss for project teams

Better coordination More complex to monitor and control

Team members maintain “a home” Higher potential for conflict and duplication of effort and functional
managers have different priorities

Functional Team members report to one supervisor and clearly No career path in Project Management
defined career paths

Easier management specialists People place more emphasis on their functional specialty to the
determent of the project

Projectized Efficient project organization No “Home” when project is completed

More effective communication than functional Duplication of facilities and job functions

Loyalty to the project Lack of professionalism in disciplines and less efficient use of
resources

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Exercise 2: Organization Types

Differentiating between Organization Types


Functional Vs Projectized

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Exercise 3: Organization Types

Differentiating between Organization Types


Functional Vs Projectized Vs Matrix

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Project Management Process Groups

Commitment Approach

Initiating Planning
Processes Processes
Create

Controlling Executing
Processes Processes
Measure

Closing
Processes
Accept

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Project Management Process Groups

 Initiating process group authorizes the project


 Planning process group plans the course of action to achieve
objectives
 Executing process group uses the resources to carry out project
tasks
 Monitoring process group measures progress to identify variances
 Closing process group formalizes product acceptance and closure

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Project Management Process Groups

 Concept of PLAN-DO-CHECK-ACT cycle


 Determine what processes within the process groups are applicable
 The Process Groups are not Project Phases
 The result of one process becomes input to another

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Project Management Process Groups
Enterprise
Environmental
Factors
Initiating Project Charter
Organizational
Process Assets

Sponsor/Project
Initiator Project Management
Planning Plan

Deliverables
Requested Changes
Executing Corrective/ Preventive
Action
Defect Repair

Change Requests, Corrective


Monitoring Action, Preventive Action,
and Defect Repair
Controlling Forecast
Approved Deliverable
Performance Reports

Organizational
Closing Process Assets
(updates)

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Project Management Process Groups Interaction

Executing
Processes

Level Planning Closing


Initiating Processes
Of
Processes Processes
Activity
Controlling
Processes

PhaseSt Time Phase


art Finish
Source: A Guide to the Project Management Body of Knowledge, Fourth Edition

(PMBOK® Guide) ©2008 Project Management Institute, Inc. All Rights Reserved.
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PM – Process Mapping
Processes

Knowledge Initiation Planning Execution Monitoring & Control Close Out


Areas

Integration Monitor and Control


Management Develop Project Develop Project Management Direct and Manage Project Work Close Project or
Charter Plan Project Execution Perform Integrated Phase
Change Control

Scope
Management Collect Requirements Scope Verification
Scope Definition Scope Control
Create WBS

Time Activity Definition


Management Activity Sequencing
Schedule Control
Activity Resource Estimating
Activity Duration Estimating
Schedule Development

Cost Estimate Costs


Cost Control
Management Estimate Budgets

Quality Perform Quality


Quality Planning Perform Quality Control
Management Assurance

Human Acquire Project Team


Resource Human Resource Planning Develop Project Team Manage Project Team
Management Manage Project Team

Communication Information
Management Distribution
Identify Stakeholders Communications Planning Report Performance
Manage Stakeholders
Expectation

Risk Risk Management Planning


Management Risk Identification
Qualitative Risk Analysis Monitor & Control Risk
Quantitative Risk Analysis
Risk Response Planning

Procurement Administer
Close
Management Plan Procurement Conduct Procurement Procurements
Procurement

Source: A Guide to the Project Management Body of Knowledge, Fourth Edition (PMBOK®

Guide) ©2008
©Copyright Project Management Institute, Inc. All Rights Reserved.
Protected
Initiating Process Group

 Conduct cost-benefit analysis


 Determine and define the business needs and the project
scope
 Know the project boundaries and constraints
 Identify high level risks
 Understand the required project organization structure
 Estimate budget and resource requirements
 Assign a project manager
 Obtain the project charter approval
 Formally authorize to start a new project or phase

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Planning Process Group

 Determine how you will plan and develop the project management plan
 Develop the project requirements in detail and agree the final scope
 Determine the required project activities and their sequencing
 Develop schedule using estimated resources and costs
 Agree what quality standards will be met by the project and how
 Define how project staffing will be done
 Establish the communication requirements and how it will be fulfilled
 Identify what can go wrong and the plans to deal with them
 Document what products or services will be acquired from outside the
project
 Gain formal approval and buy-in from everybody involved in the project

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Executing Process Group

 Execute activities in the project plan


 Procure required project resources
 Complete work packages
 Document lessons learnt
 Implement approved changes, corrective and preventive
actions
 Ensure processes are followed
 Hold team building activities and boost morale and efficiency
 Manage resource allocation and utilization
 Hold progress review meetings and distribute progress reports
 Keep everyone focused on the project goals

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Monitoring & Control Process Group
 Measure project performance using the documented technique
in the plan
 Identify variances and recommend corrective actions to get back
on track
 Approve changes, defect repair, corrective and preventive
actions
 Resolve conflicts and issues
 Manages changes to scope, time and cost
 Perform impact analysis to approve or reject changes
 Obtain formal acceptance of deliverables from the customer
 Monitor the status of risks and identify new risks have emerged
 Measure team member performance

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Closing Process Group

 Confirm all project requirements are met


 Obtain formal acceptance of product from the customer
 Hand over the completed deliverables to the operations
team
 Compile lessons learnt
 Measure customer satisfaction
 Archive project data and information for future reference
 Release resources

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Project Integration Management

 Processes that integrates the different elements of project


management
 Coordinates the project work is done correctly and in the right
order
 Ensures changes are properly controlled and managed
 Comprises of the following processes:-
 Develop Project Charter
 Develop Project Management Plan
 Direct and Manage Project Execution
 Monitor and Control Project Work
 Perform Integrated Change Control
 Close Project or Phase

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Project Scope Management

 Ensures project includes all of the work and only the work
required
 Identifies, defines and controls the project work
 Verifies that the deliverables meet the specified criteria
 Comprises of the following five processes:-
 Collect Requirements
 Define Scope
 Create WBS
 Verify Scope
 Control Scope

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Project Time Management

 Processes concerning with the timely completion of the


project
 Determines the time and the order in which project work will
be done
 Controlling to ensure everything gets done on time
 Comprises of the following six processes:-
 Define Activities
 Sequence Activities
 Estimate Activity Resources
 Estimate Activity Durations
 Develop Schedule
 Control Schedule

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Project Cost Management

 Processes to ensure the project stays within the


budget
 Determines the project budget
 Controls the changes to the project budget
 Comprises of the following three processes:-
 Estimate Costs
 Determine Budget
 Control Costs

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Project Quality Management

 Processes that ensures the project will satisfy the agreed


quality standards
 Identifies the relevant standards and how they will be met
 Assurance activities to ensure the agreed processes are
followed
 Monitoring project results to determine compliance
 Comprises the following three processes:-
 Plan Quality
 Perform Quality Assurance
 Perform Quality Control

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Project Human Resource Management

 Processes that organize and manage the project team


 Identifies the required roles on the project
 Obtains the human resources needed to complete the
work
 Enhance competencies and performance
 Comprises of the following four processes:-
 Develop Human Resource Plan
 Acquire Project Team
 Develop Project Team
 Manage Project Team

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Project Communication Management

 Processes to ensure timely distribution of project information


 Determines the information needs of the project stakeholders
 Makes the information available in timely manner
 Collecting and distributing project performance information
 Comprises of the following processes:-
 Identify Stakeholders
 Plan Communications
 Distribute Information
 Manage Stakeholder Expectations
 Report Performance

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Project Risk Management

 Processes to deal with the unexpected when it does


happen
 Identifying events that might affect the project
 Developing plan and actions to deal with those event
 Comprises of the following six processes:-
 Plan Risk Management
 Identify Risks
 Perform Qualitative Risk Analysis
 Perform Quantitative Risk Analysis
 Plan Risk Responses
 Monitor and Control Risks

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Project Procurement Management

 Processes to purchase or acquire the products and


services
 Selecting who will supply the required products and
services
 Planning and administering the contracts
 Comprises of the following processes:-
 Plan Procurements
 Conduct Procurements
 Administer Procurements
 Close Procurements

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Professional Responsibility

 Covers legal, ethical and professional behavior of


a PMP®
 A PMP® must follow the Project Management
Institute Code of Ethics and Professional Conduct
 The responsibilities includes:-
 Doing the right things
 Making good choices
 Keep learning and getting better
 Respecting other’s culture

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Exercise 4: Process Group

Map all the process groups and their corresponding


processes, also mention the corresponding knowledge
areas

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Project Management Framework

Assessment Examination

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Project Management Program

QUERIES
&
CLARIFICATIONS

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Project Management Program

Next Session

Project Integration Management

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