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ROJECTP
MANAGEMENT
Nine Project Management
Knowledge Areas
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Learning Objectives
Understand the difference between
a project and project management The Triple Constraint
Integration Management
Scope Management
Time Management
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Learning Objectives
Cost Management Quality Management
Human Resource Management Communications Management Risk Management Procurement Management
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What is a Project?
A project is a temporarily endeavorundertaken to create a unique product,
service, or result.
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Project Attributes
A project has a unique purpose
A project is temporarily
A project is developed using progressive
elaboration
A project requires resources, often from
various areas
A project should have a primary customer orsponsor
A project involves uncertainty
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Project management
Project management is the application of
knowledge, skills, tools and techniques to
project activities to meet project
requirements.
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The Triple Constraints
Every project constrained in different ways by its
scope, time, and cost goals. These limitations
are sometimes referred to in project
management as the triple constraint.
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The Triple Constraints
Scope: all the work we have to do in order to
create the clearly specified product.
Time: the time we need in order to create that
product.
Cost: the total amount of money we need in
order to create that product.
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Integration Management
Project Integration Management includes the
processes and activities needed to identify,
define, combine, unify, and coordinate the
various processes and project managementactivities within the Project Management
process group
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Integration Management Processes
Developing the project charter involves working with stakeholders to
create the document that formally authorizes a project the charter
Developing the project management plan involves coordinating all
planning efforts to create a consistent, coherent document the project
management plan
Directing and managing project execution involves carrying out the project
management plan by performing the activities included in it
Monitoring and controlling project work involves overseeing activities to
meet the performance objectives of the project
Performing integrated change control involves identifying, evaluating, andmanaging changes throughout the project life cycle.
Closing the project or phase involves finalizing all activities to formally
close the project or phase.
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Table of Processes
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Case Study
Project involved creating the hardware and software for a DNA- sequencinginstrument used in assembling and analyzing the human genome. Thebiotech project was the companys largest endeavor, and it hadtremendous potential for future growth and revenues. Unfortunately,there were problems managing this large project. Nick Carson recently
became project manager of this project. The CEO told him to do whateverit took to deliver the first version of the software for DNA sequencinginstrument in four months and a production version in nine months. Hewas having difficulty in this new role as project manager. Although Nickand his team got the product out on time top management was upsetbecause Nick did not focus on managing all aspects of the project. He
never provided them with accurate schedules or detailed plans of whatwas happening on the project. Instead of performing the work of projectmanager, Nick had taken on the role of software integrator andtroubleshooter.
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Scope Management
Project Scope Management includesthe processes involved in defining and
controlling what work is or is notincluded in a project.
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Scope Management Processes
Collecting requirements involves defining and documenting the featuresand functions of the products produced during the project as well as theprocesses used for creating them
Defining scope involves reviewing the project charter, requirementsdocuments, and organizational process assets to create a scope
statement, adding more information as requirements are developed andchange requests are approved.
Creating the WBS involves subdividing the major project deliverables intosmaller, more manageable components.
Verifying scope involves formalizing acceptance of the project deliverable.Key stakeholders such as the customer or sponsor for the project, inspectand then formally accept the deliverable during the this process.
Controlling scope involves controlling changes to project scope throughoutthe life of the project
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Table of Processes
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Case Study
In the late 1980s at Northrop Grumman, which specializes in defense
electronics, information technology, advanced aircraft, shipbuilding, and
space technology, an IT project team became convinced that it could, and
should, automate the review and approval process of government
proposals. The team implemented a powerful workflow system to manage
the whole process. Unfortunately, the end users for the system wereaerospace engineers who referred to work in a more casual, ad hoc
fashion. They dubbed the system Naziware and refused to use it. This
example illustrates an IT project that wasted millions of dollars developing
a system that was not in touch with the way end users did their work.
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Time Management
This Project Time Management Processdescribes how to monitor and control time
spent within a project and required toensure timely completion of the project
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Project Time Processes
Defining activities involves identifying the specific activities that theproject team members and stakeholders must perform to produce theproject deliverable.
Sequencing activities involves identifying and documenting therelationships between project activities.
Estimating activity resources involves estimating how many resourcespeople, equipment, and materials a project team should use to performactivities.
Estimating activity durations involves estimating the number of workperiods that are needed to complete individual activities.
Developing the schedule involves analyzing activity sequences, activityresource estimates, and activity duration estimates to create the projectschedule.
Controlling the schedule involves controlling and managing changes to theproject schedule.
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Table of Processes
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Cost Management
It includes the project processesrequired to ensure that a project team
completes a project within anappropriate budget.
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Cost Management Processes
Project Cost Estimation. It is the project cost management process step whenthe project manager cooperates with the financial department to estimatecosts required for purchasing all necessary good/services and undertakingnecessary activities to deliver the project.
Project Budget Determination. At this step of the project cost managementprocess, cost spreadsheets are used to develop the budget framework anddetermine the budget. The project manager can use project cost managementsoftware to work in collaboration with the financial department to determineitems of the budget and sources of funding and then to allocate the budget.
Project Spending Control. It is the step of the project cost managementprocess when the allocated budget is reviewed and spending is tracked. Theproject manager takes responsibility for control spending and to ensure thatthe budget allocation is optimized and costs are fully covered with the plannedand allocated budget.
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Table of Processes
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Case study
Many organization use IT to reduce operational costs. For example, recent
study shows that technology has decreased the cost (adjusted for
inflation) associated with processing an automated teller machine (ATM)
transaction from a financial institution:
In 1968, the average cost was $5
In 1978, the cost went down to $1.50
In 1988, the cost was just a nickel
In 1998, it only cost a penny
In 2008, the cost was just half a penny
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Quality Management
The purpose of the project qualitymanagement is to ensure that the
project will satisfy the needs for whichit was undertaken.
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Quality Management Processes
Planning quality includes identifying which quality are relevant to the
project and how to satisfy those standards.
Performing quality assurance involves periodically evaluation overall
project performance to ensure that the project will satisfy the relevant
quality standards
Performing quality control involves monitoring specific project results to
ensure that they comply with the relevant quality standards while
identifying ways to improve overall quality.
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Table of Processes
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Human Resource Management
Human Resource Management (HRM) is thefunction within an organization that focuses
on recruitment, management, and providingdirection for the people who work in theorganization.
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Communication Management
Project communication management plays a key role in
keeping all members of the project management team on
the same page. Without communication among all team
members and project stakeholders there can be a
breakdown in processes which could have a negative impact
on the final product.
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Risk Management
Project risk management is an important aspects of project
management. A risk is something that may happen and if it
does, will have a positive or negative impact on the project.
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Procurement Management
This
Procurement Management
process will help you to purchase goods and services from
external suppliers. It gives you a completeprocurementprocess andprocurement procedures, which explain step-
by-step, how to purchase from suppliers.
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Case Study
KPMG, a large consulting firm, published a studyin 1995 that found that 55% of runaway projectsdid (projects with significant cost or scheduleoverruns) did no risk management at all, that
38% did some (but half did not use their riskfindings after the project was underway), andthat 17% did not know whether they did riskmanagement or not. This study suggests that
performing risk management is important toimproving the likelihood of project success andpreventing runaway projects