Topic Introduction 1 to Project Management - Open … · 2016-10-27 · deliverables. A project team consists of pe ople who donÊt usuall y work together and ... (OUM) TOPIC1

INTRODUCTION

Look around you. You will be amazed with various products such as cars, buildings and infrastructures. You may wonder how all these products were nicely created or built. In this topic, we are going to introduce the concept of Project Management that has created or built all those products.

Topic

1

Introduction to Project Management

LEARNING OUTCOMES

By the end of this topic, you should be able to:

1. Classify a project, management and project management;

2. Define a Project ManagerÊs role;

3. Identify project management advantages and disadvantages;

4. Recognise project management defacto standards;

5. Elaborate the project triple constraints; and

6. Explain Concurrent Engineering.

ACTIVITY 1.1

In a group, list products or infrastructures around you that may be an outcome of project management.

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TOPIC1 INTRODUCTION TO PROJECT MANAGEMENT

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PROJECT MANAGEMENT (PM) Project Management (PM) terminology consists of two key words, that is, Project and Management.

1.1.1 What is a Project?

A project is known to be unique whereby it is not a regular, routine process or operation. There are specific set of tasks designed to fulfil defined outcomes and deliverables. A project team consists of people who donÊt usually work together and they come from different organisations and across multiple locations. It also has certain scope, limited by budget and resources. So, we can define a project as below:

“A Project is a temporary endeavour with a set or sequence of tasks planned from beginning to end that are interrelated and to be implemented within a fixed time and limited by budget and resources.”

In other words, a project can be likened to that of a ship on a journey from Point A to Point B (inception to completion) and a Project Manager the Captain of the ship. Table 1.1 lists the definitions of project according to various project management organisations.

Table 1.1: Definitions of Project

Author/Professional Bodies/Organisation Definition of Project

The Project Management Institute (PMI), USA, 1996

A temporary endeavour undertaken to create a unique product or service.

The UK Association of Project Managers, 1996

A discrete undertaking with defined objectives often including time, cost and quality (performance) goals.

The British Standards Institute (BSI), 2000

A unique set of coordinated activities, with definite starting and finishing points, undertaken by an individual or organisation to meet specific objectives within a defined schedule, cost and performance parameters.

Turner, 1992 An endeavour in which human, material and financial resources are organised in a novel way to undertake unique constraints of cost and time, so as to achieve beneficial change defined by quantitative and qualitative objectives.

1.1


TOPIC1 INTRODUCTION TO PROJECT MANAGEMENT 3

Usually, you can identify a project by certain characteristics. Some of the characteristics include: (a) Has an established objective;

(b) Unique in some way;

(c) Has a defined life span with a beginning and an end;

(d) Has specific time, cost and performance requirements;

(e) Requires across-the-organisational participation (diversity); and

(f) Involves doing something never been done before (risk and uncertainty).

1.1.2 What is Management?

Now, let us review what management is. Generally, management is defined as the process of completing activities efficiently and effectively with and through others. Management functions are listed as follows: (a) Planning;

(b) Organising;

(c) Staffing;

(d) Directing;

(e) Coordinating;

(f) Reporting; and

(g) Budgeting.



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1.1.3 What is Project Management?

Now, let us see what project management is. Basically, project management is the application of knowledge, skills, tools and techniques to project activities in order to meet or exceed stakeholdersÊ needs and expectations from a project. Generally, we can divide project management processes into the following five groups: (a) Initiating

Steps implemented to define a new project or a new phase of an existing project by getting an authorisation to begin the project or phase.

(b) Planning

Activities required to establish the project scope, improve the objectives and define the course of action required to achieve the project objectives.

(c) Executing

Processes executed to complete the work defined in the project management plan to fulfil the project requirements.

(d) Monitoring and Controlling

The processes needed to track, review and control the progress and performance of the project; recognise any areas in which changes to the project plan are required and initiate those changes.

(e) Closing

The processes executed to ensure all activities across all Process Groups to formally close the project

In 1996, the Project Management Institute (PMI) of USA developed NINE Project Management Knowledge Areas in a book entitled „A Guide to the Project Management Book of Knowledge (PMBOK Guide).‰ This book was subsequently revised in 2000, 2004, 2008 and the latest edition was released in 2013 with the addition of one new knowledge area moving from nine project management knowledge areas to 10. The 10 knowledge areas are:



(a) Project Integration Management It comprises of processes and activities in order to recognise, define, combine, merge and coordinate the processes and project management activities in the project management process groups.

(b) Project Scope Management It includes the processes necessary to ensure that the project comprises of all the required work for a successful project completion.

(c) Project Time Management

It includes the processes required to manage the timely completion of the project.

(d) Project Cost Management

It consists of the processes under the planning, estimating, budgeting, financing, funding, managing and controlling costs in order for the project to be completed within the permitted budget.

(e) Project Quality Management

It consists of the processes and actions of the executing organisation that determines quality policies, objectives and responsibilities so that the project will fulfil the requirements for which it was undertaken.

(f) Project Human Resource Management

It consists of the processes that organise, manage and lead the teams in the project.

(g) Project Communications Management

It consists of the processes that are needed to ensure it is appropriate and timely in the following areas:

(i) Planning;

(ii) Collection;

(iii) Creation;

(iv) Distribution;

(v) Storage;

(vi) Retrieval;

(vii) Management;



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(viii) Control;

(ix) Monitoring; and

(x) Project information dissemination.

(h) Project Risk Management It comprises of the processes required to conduct risk planning, risk identification, risk analysis, risk response planning and risk controlling on a project.

(i) Project Procurement Management

Project Procurement Management includes the processes necessary to purchase or acquire products, services or results needed from outside the project team

(j) Project Stakeholders Management

It comprises of the processes needed to recognise resources (such as people or organisations) influenced by the project, expectations of stakeholders and their impact on the project and appropriate management strategies developed for efficiently engaging stakeholders in project decisions and implementation.

The above 10 project management knowledge areas consists of the processes that are required to be accomplished within its areas in order to attain effective project management. All the 10 knowledge areas also fall into one of the five project management process groups as mentioned earlier (Initiating, Planning, Executing, Monitoring and Control and Closing) thus, building a matrix structure as shown in Table 1.2. In this matrix, every process can be related to one knowledge area and one process group.



Table 1.2: PMBOK 2013 Knowledge Areas, Process Groups and Processes

Knowledge Areas

Project Management Process Group

Initiating Process Group

Planning Process Group

Executing

Process Group

Monitoring and Controlling

Process Group

Closing

Process Group

Project

Integration

Management

Develop

Project Charter

Develop Project Management Plan

Direct and

Manage Project

Work

Monitor

Control Project

Work

Perform

Integrated Change Control

Close Project or Phase

Project Scope Management

Plan Scope

Management

Collect

Requirements

Define Scope

Create WBS

Validate Scope

Control Scope

Project Time

Management

Plan Schedule

Management

Define

Activities

Sequence

Activities

Estimate Activity Resources

Estimate

Activity Durations

Develop Schedule

Control Schedule

Project Cost

Management

Plan Cost

Management

Estimate Costs

Determine Budget

Control Costs



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Project Quality

Management

Plan Quality Management

Perform Quality Assurance

Control Quality

Project

Human Resource

Management

Plan Human Resource

Management

Acquire Project

Team

Develop Project Team

Manage Project Team

Project

Communications

Management

Plan

Communications Management

Manage

Communications

Control

Communications

Project Risk

Management

Plan Risk

Management

Identify Risks

Perform

Qualitative Risk

Analysis

Perform

Quantitative Risk

Analysis

Plan Risk Responses

Control Risks

Project

Procurement Management

Plan

Procurement

Management

Conduct

Procurements

Control

Procurements

Close

Procurements

Project

Stakeholder

Management

Identify

Stakeholders

Plan

Stakeholder

Management

Manage

Stakeholder

Engagement

Control

Stakeholder

Engagement

Source: http://www.pmi.org/~/media/pdf/standards/appendixa_pfm3_20111002.ashx

1.1.4 Advantages and Disadvantages of Project Management

In a company, project management brings more advantages that make up more than the overhead of implementing formal project management. Some of the advantages include:



(a) Adaptable to changes;

(b) Reduced cost;

(c) Improved quality;

(d) Higher productivity;

(e) Multi-disciplinary approach => better decision making;

(f) Good team work; and

(g) High morale among team members.

The Center for Business Practices (CBP) (PM Solutions White Paper Series, 2002) has conducted a study to document the value of project management to organisations. The following lists the average return organisations have achieved by implementing project management:

(a) About 97% respondents say it adds value;

(b) Return on Investment (ROI) is 28%;

(c) Improvement in time to market by 22%;

(d) Improvement in customer satisfaction by 38%;

(e) Improvement in productivity by 23%;

(f) Improvement in cost performance by 24%; and

(g) Improvement in schedule performance by 32%.

Much has been said about the advantages of project management, but almost nothing about its disadvantages. Project management do have some disadvantages, but, in most cases its advantages far outweigh its disadvantages. These disadvantages are overhead, obsession and non-creativity.

ACTIVITY 1.2

1. In a group, discuss what project management is.

2. Identify the characteristics of a project.

3. Identify a project that you are familiar with. Describe the relationship between the 10 knowledge areas a project manager will use duringthis project and the specific output for each of the five process



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PROJECT MANAGER

You may ask who project managers are. What are their roles and responsibilities? Where do they work and so on?

A project manager is the person who is responsible for managing a project. He or she who is responsible for the successful of the five project management processes, namely initiation, planning, design, execution, monitoring, controlling and closure of a project. We can find this job title in various industries such as architecture, construction, information technology, petrochemical and many different industries that produce products and services. Figure 1.1 demonstrates the project managerÊs functions in a project environment.

A project manager is expected to welcome new challenges in each project. In order to manage these new challenges, the projects managers are expected to have the talents, skills and diplomacy. Generally, the following is a good skill list for a project manager:

(a) Set a clear vision;

(b) Good communicator;

(c) Effective leadership skills;

(d) Sound technical skills;

(e) Good decision maker;

(f) Good at team building;

(g) Thrive under pressure;

(h) Good negotiator;

(i) Empathetic; and

(j) Enthusiastic.

1.2

SELF-CHECK 1.1

1. What is a project?

2. Describe project characteristics.

3. List all 10 project management knowledge areas.

4. Discuss the advantages of practicing project management.



Figure 1.1 shows the functions of a Project Manager and the profession related to his or her functions.

Figure 1.1: A Project managerÊs functions and profession

SELF-CHECK 1.2

1. Who is a project manager?

2. Discuss the skills needed to be a project manager.

3. With the aid of a diagram, sketch and explain a project managerÊs functions.



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PROJECT MANAGEMENT DE FACTO STANDARDS

There are various standards available for a project management individual and the types of standard being adopted or used is dependent on the implementation that an organisation have chosen. They are: (a) A Guide to the Project Management Body of Knowledge (PMBOK Guide)

PMBOK Guide represents a set of standard terminology and guideline. It is the document resulting from the work overseen by the Project Management Institute (PMI) of USA. This standard is commonly adopted by many organisations.

(b) Project in a Controlled Environment (PRINCE)

PRINCE covers quality management, control and organisation of a project with consistency and review to align with the project objectives. PRINCE stresses dividing projects into manageable and controllable stages. This is a UK based standard.

(c) ISO 10006:2003 Quality Management Systems - Guidelines for quality

management in projects ISO (International Organisation for Standardisation) developed this standard and provides guidance on the application of quality management in projects.

(d) TickIT

It is a certification program for companies in the software development and computer industries developed and adopted by the United Kingdom and Swedish industries. Its general objective is to improve software quality.

(e) SSADM (Structured Systems Analysis and Design Method) - UK

SSADM is a systems method for the analysis and design of information systems. It was developed for the use at the Central Computer and Telecommunications Agency, a UK government office concerned with the use of technology in the government in the 1980s.

1.3

SELF-CHECK 1.3

Name any four Project Management de facto standards.



PROJECT TRIPLE CONTRAINTS The project triple constraints are the combination of the three most significant restrictions that you can find in any project, that is, cost, time and scope as shown in Figure 1.2. It is also known as the project management triangle or the iron triangle.

Figure 1.2: Project management triangle Source: Adapted from http://www.minxing.us/2011/02/15/pm02

From Figure 1.2, these three constraints are mutually dependent whereby none of them can be changed without affecting one or both of the others. For example, if the cost of a project is to be reduced, it is likely to reduce the scope and/or to take longer time. Likewise, an increased scope is almost certain to cost more and/or to take longer time. In project management, it is certainly difficult to satisfy all the three constraints together. In reality, only two of these can be satisfied by sacrificing the other one. For example, if a client wants to complete the project sooner, the project is likely to cost more money or have a lesser scope.

1.4

Explain the project triple constraints.

SELF-CHECK 1.4



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CONCURRENT ENGINEERING Concurrent engineering is a technique of designing and developing products where the different stages run simultaneously, instead of sequentially. It decreases product development time and also the time to market, leading to improved productivity and reduced costs. The concurrent engineering environment supports project management, the control of project information, and promotes collaboration in the building process. There are three foundational components, that is, electronic information, information storage that are centrally accessible and networks connecting the users to the information storage and by which project information is transferred.

A project is a temporary endeavour with a set or sequence of tasks planned from

beginning to end that are interrelated and to be implemented within a fixed time and limited by budget and resources.

Project management is the application of knowledge, skills, tools and techniques to project activities in order to meet or exceed stakeholdersÊ needs and expectations from a project.

Project management brings more advantages that make up more than the overhead of implementing formal project management.

A project manager is a person who is responsible for managing a project. He or she is responsible for the successful five project management process, namely initiation, planning, design, execution, monitoring, controlling and closure of a project.

Concurrent engineering is a technique of designing and developing products where the different stages run simultaneously, rather than consecutively.

1.5

SELF-CHECK 1.5 Explain concurrent engineering.



Concurrent Engineering

ISO

Management

PMI

PRINCE

Project

Project Management

Project Manager

PMBOK

SSADM

TickIT

David, I. C., & Lewis R. I. (2002). Project Management: Strategic Design and

Implementation. New York, NY: McGraw Hill. Harold, K. (2009). Project Management: A system approach to planning,

scheduling and controlling. New Jersey, NJ: Wiley. PM Solutions White Paper Series. (2002). The Value of Project Management:

Validating the positive impacts of project management on organizations. West Chester, PA: Center for Business Practices.

Project Management Institute. (2013). A Guide to the Project Management Body of

Knowledge: PMBOK Guide (5th Ed). Newtown Square, PA: Project Management Institute,

Nigel, J. S. (2007). Engineering Project Management. New Jersey, NJ: Wiley.


Documents

Topic Introduction 1 to Project Management - Open … · 2016-10-27 · deliverables. A project team consists of pe ople who donÊt usuall y work together and ... (OUM) TOPIC1