CHAPTER 1

INTRODUCTION

OM 303
PROJECT MANAGEMENT
Learning Objectives:
At the end of this chapter, you will be able to:
● Gain an overview of what is project and project management;
● Understand the relationship among project, program and portfolio
management;
● Identify the differences between project and operations management;
● Define the role of project manager;
● Recognize the importance of project management body of knowledge;
and
● Evaluate different enterprise environment factors.
1.1 What is project?
Project Management Institute (PMI) defines project as a
"temporary endeavor undertaken to create a unique
product, service or result."
Temporary does not necessarily mean short in duration.
Projects can also have a social, economic and environmental impacts that
far outlast the projects themselves.
Every project creates a unique product, service or result.
Although repetitive elements may be present in same
project deliveries, this repetition does not change the
fundamental uniqueness of the project work.
 A project can create:

• A product that can be either a component of another

item or an end item in itself,

• A capability to perform a service, and

• A result such as an outcome or document.

1.2 Project Management
 Project Management is the application of
knowledge, skills, tools and techniques to project
activities to meet the project requirements.
Five Process Groups
Managing a project typically includes:
• Identifying requirements,
• Addressing the various needs, concerns, and expectations of the
stakeholders as the project os planned and carried out,
• Balancing the competing project constraints including, but not
limited to:
 Scope
 Quality
 Schedule
 Budget
 Resources, and
 Risk
1.3 Relationships Among Project
Management, Program
Management, and Portfolio
Management
 In mature project management organizations,
project management exists in a broader context
governed by program management and portfolio
management.
As Figure 1-1 illustrates, organizational
strategies and priorities are linked and
have relationships between portfolios and
programs, and between programs and
individual projects. Organizational
planning impacts the projects by means of
project prioritization based on risk,
funding, and the organization’s strategic
plan. Organizational planning can direct
the funding and support for the
component projects on the basis of risk
categories, specific lines of business, or
general types of projects, such as
infrastructure and internal process
improvement.
1.3.1 Portfolio Management
A portfolio refers to a collection of projects or programs and
other work that are grouped together to facilitate effective
management of that work to meet strategic business
objectives. The projects or programs of the portfolio may
not necessarily be interdependent or directly related.
Portfolio management refers to the centralized management of one or
more portfolios, which includes identifying, prioritizing, authorizing,
managing, and controlling projects, programs, and other related work, to
achieve specific strategic business objectives. Portfolio management
focuses on ensuring that projects and programs are reviewed to prioritize
resource allocation, and that the management of the portfolio is
consistent with and aligned to organizational strategies.
1.3.2 Program Management
Program management is defined as the centralized
coordinated management of a program to achieve the
program’s strategic objectives and benefits. Projects
within a program are related through the common out
come or collective capability.
Program management focuses on the project interdependencies and
helps to determine the optimal approach for managing them. Actions
related to these interdependencies may include:
• Resolving resource constraints and/or conflicts that affect multiple
projects within the system;
• Aligning organizational/strategic direction that affects project and
program goals and objectives; and
• Resolving issues and change management within a shared
governance structure.
1.3.3 Projects and Strategic
Planning
Projects are often utilized as a means of achieving an organization’s
strategic plan. Projects are typically authorized as a result of one or
more of the following strategic considerations:
• Market demand
• Strategic opportunity/business need
• Customer request
• Technological advance
• Legal requirements
Projects, within programs or portfolios, are a means of
achieving organizational goals and objectives, often in the
context of a strategic plan.
1.3.4 Project Management
Office
A project management office (PMO) is an organizational
body or entity assigned various responsibilities related to
the centralized and coordinated management of those
projects under its domain. The responsibilities of a PMO
can range from providing project management support
functions to actually being responsible for the direct
management of a project.
A primary function of a PMO is to support project managers in a variety of
ways which may include, but are not limited to:
• Managing shared resources across all projects administered by the PMO;
• Identifying and developing project management methodology, best
practices, and standards;
• Coaching, mentoring, training, and oversight;
• Monitoring compliance with project management standards, policies,
procedures, and templates via project audits;
• Developing and managing project policies, procedures, templates, and
other shared documentation (organizational process assets); and
• Coordinating communication across projects.
Project managers and PMOs pursue different objectives and, as such, are
driven by different requirements. All of these efforts, however, are aligned
with the strategic needs of the organization. Differences between the role of
project managers and a PMO may include the following:
• The project manager focuses on the specified project objectives, while
the PMO manages major program scope changes which may be seen as
potential opportunities to better achieve business objectives.
• The project manager controls the assigned project resources to best
meet project objectives while the PMO optimizes the use of shared
organizational resources across all projects.
• The project manager manages the constraints (scope, schedule, cost,
and quality, etc.) of the individual projects while the PMO manages the
methodologies, standards, overall risk/opportunity, and
interdependencies among projects at the enterprise level.
1.4 Project Management and
Operations Management
 Operations are organizational function performing the
ongoing execution of activities to produce same products
and repetitive service.

Example include: production, manufacturing and

accounting operation.
Project can intersect with operations at various point during
product life cycle. Such as:
● At each closeout phase
● When developing a new product, upgrading a product, or
expanding outputs
● Improvement of operations or the product development
process; or
● Until the divestment of the operations at the end of the
product life cycle
Difference between Operations and Project
● Operations are permanent endeavors
● Project are temporary endeavor
1.5 Role of Project Manager
● Project manager is the person assigned by the performing
organization to achieve the project objectives.
● The role of project manager is distinct from a functional manager or
operational manager
● In some instance, depending on the organizational structure, a
project manager may report to a functional manager.
● In some cases project manager is ultimately responsible for
enterprise-wide projects than program manager.
● Project manager works with program manager to achieve project
objectives and ensures that the project aligns with the overarching
program plan.
● Many of the tools and techniques for managing projects are specific
to project management
Effective project management requires that the project manager
possess the following characteristics:

1. Knowledge. This refers to what the project manager knows about

project management.
2. Performance. This refers to what the project manager is able to do
or accomplish while applying their project management knowledge.
3. Personal. This refer to how the project manager behave when
performing the project or related activity.
1.6 Project Management Body
of Knowledge
The PMBOK Guide is the standard for managing most
projects most of the time across many types of industries.
This standard describes management processes, tools and
techniques used to manage a project toward a successful
outcome.
Project management standards do not address all details of
every topic. This standard is limited to single projects and
the project management processes that are generally
recognized as good practice.

“Generally Recognized”- applies to most projects

“Good Practice” - people agree that it works
Management of programs is addressed in The Standard for
Program Management, and management of portfolios is
addressed in The Standard for Portfolio Management.
Examination of an enterprise's project management
process capabilities is addressed in Organizational Project
Management Maturity Model (OPM3).
1.7 Enterprise Environmental
Factors
Enterprise environmental factors refer to both internal and
external environmental factors that surround or influence a
project's success.
Enterprise environmental factors include, but are not limited to:
• Organizational culture, structure, and processes;
• Government or industry standards
• Infrastructure
• Existing human resources
• training records, overtime policy, and time tracking;
• Company work authorization systems;
• Marketplace conditions;
• Stakeholder risk tolerances;
• Political climate;
• Organization's established communications channels;
• Commercial databases
• Project management information system
Thank you for listening! :)
De Castro, Alexandra Mae S.
Echane, Rochell G.
Matibag, Cathleen C.
Oseña, Dave Anthony F.

BSMA 3201