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PROJECT MANAGEMENT ESSENTIALS
WELCOME AND INTRODUCTIONS
Program Length - 3 days
Session I Session II
Day 1 Introductory session to the Project Management discipline
Project Management Processes Role of a Project Manager
Day 2 Project Management Knowledge Areas - Overview Exercise
Day 3 Organisational Influences and the Project Lifecycle
Details on PMP, CAPM etc.Test
COURSE OVERVIEW AND TARGET AUDIENCES
• Course Overview• Essentials / Introductory Session with a deep dive into few critical facets
of Project Management
• Target Audiences:• Project Managers / Coordinators• Staff with direct or indirect exposure to projects• Anyone who intends to further his/her career in Project Management by
earning credentials and certification (CAPM, PMP etc.)
At the end of this program the trainee : -
• Would be aware of the fundamentals of project management
• Can take the next step towards certification
Contents are extrapolated mainly from the PMI’s PMBoK 5th Edition
PMI – Project Management InstitutePMBoK - Project Management Body of Knowledge
QUIZ
CONDUCT A SMALL QUIZ HERE TO UNDERSTAND THE KNOWLEDGE LEVELS OF THE PARTICIPANTS
Microsoft Word Document
PART 1
ProjectManagementFramework
PROJECT MANAGEMENT FRAMEWORK
What is a project ?
A Project: -
• Is a temporary endeavor undertaken to create a unique product, service, or result.
• has a definite beginning and an end.• is not a routine operation, but a specific set of activities
designed to accomplish a singular goal
Examples
PROJECT MANAGEMENT FRAMEWORK
• Refers to the fact that each project has a definite start and definite end.
• Note • “Temporary” does not necessarily mean that the project duration
is short• “Temporary” typically does not apply to the product, service or
result created by the project.• Repetitive elements may be present, but has fundamental
uniqueness
Temporary -
PROJECT MANAGEMENT FRAMEWORK
When does a project end?
• A project can reach its end in one of the following ways:
1) The project has met its objectives (or)2) The project has been terminated before its
completion by the relevant stakeholder3) The objectives of the project will not or cannot be
met4) The need for the project no longer exists
PROJECT MANAGEMENT FRAMEWORK
When is a project successful?
• When it has met the scope, time and cost goals
• When it has achieved the desired results
• When it has satisfied the customer/sponsor
PROJECT MANAGEMENT FRAMEWORK
• Progressive Elaboration:
• Progressive elaboration is the “iterative process of increasing the level of detail in a project management plan as greater amounts of information and more accurate estimates become available”
• Part of the Planning Process Group• Building the project as you go along • Related - Prototypes, Rolling Wave Planning,
PROJECT MANAGEMENT FRAMEWORK
Projects - Operations
PROJECT MANAGEMENT FRAMEWORK
Project vs. operations
Operation is:
• A function that performs an ongoing tasks.
• It doesn’t produce a unique (new) product or it doesn’t have a beginning & an end – or both.
PROJECT MANAGEMENT FRAMEWORK
Projects Operations
To produce a specific (unique) output and terminate
Ongoing endeavours to produce repetitive outputs
Heterogeneous Teams Homogeneous teams
Hard Start and End Dates Ongoing
Temporary Permanent*
Catalyst for Change Maintains a Status Quo
Project vs. operations
PROJECT MANAGEMENT FRAMEWORK
• Both require resources, including human resources (people).
• Both are constrained to limited, as opposed to unlimited resources.
• Both are managed—that is, planned, executed, and controlled.
• Both have objectives.
Projects – Operations - similarities
PROJECT MANAGEMENT FRAMEWORK
Group Exercise :
Identify each of the following items as a project or an operation:
• Publishing a weekly newsletter • Writing and publishing an Instruction Manual for a
Department• Responding to customer queries and complaints• Implementing a FATCA solution• Processing cheques through ACH/RTGS• Scanning documents for a customer loan application• Implementing virtualization • Hiring a Project Manager
PROJECT – PROGRAM - PORTFOLIO
PROJECT MANAGEMENT FRAMEWORK
What is a Program ?
• A group of related projects managed together in order to gain efficiencies on cost, time, technology, etc.
• A project may or may not be a part of a program, but a program will always have projects
Advantages
• Decreased Risks• Economies of Scale
Examples
PROJECT MANAGEMENT FRAMEWORK
What is a Portfolio ?
• A set of projects, programs, and related work managed as a group to achieve a specific strategic business goal.
• Not necessarily interdependent or directly related
Advantages
• Helps in decision making• Helps in selection and analysis of projects from a strategic
and investment perspective
Examples
PROJECT MANAGEMENT FRAMEWORK
• What is project management ?
“Project Management is the application of Knowledge, Skills, Tools and Techniques to project activities to meet project requirements. Project Management is accomplished through the appropriate application and integration of 47 logically grouped project management processes, which are categorized into 5 process groups –
• Initiating, • Planning, • Executing, • Monitoring and Controlling,• Closing”
PROJECT MANAGEMENT FRAMEWORK
• What is project management ?
• Identifying requirements• Addressing needs, concerns & expectations• Managing communication• Managing stakeholders towards meeting requirements
and creating project deliverables• Balancing project constraints: -
• Scope• Quality• Schedule• Budget• Resources• Risks
PROJECT MANAGEMENT FRAMEWORK
Why do organisations need Project Management?
To deliver quality projects in time, within budget, to the satisfaction of the Customer
PROJECT MANAGEMENT FRAMEWORK
Why do organisations need Project Management?
• Completing projects in a cost effective and within the quickest possible time
• Being more predictable• Resolving problems quickly. • Predicting and Mitigating Risks• Communicating and managing expectations with customers,
team members and stakeholders more effectively• Building a quality product and getting it right the first time• Focus on metrics and fact-based decision making• Improved financial management. • Improved work environment.• To bring in a disciplined and structured methodology to
deliver projects
PROJECT MANAGEMENT FRAMEWORK
InputsTools &
Techniques
Outputs
PROJECT MANAGEMENT FRAMEWORK
PROJECT CONSTRAINTS
Project Constraints
“A limiting factor that affects the execution of a project, program, portfolio or a process.”
PROJECT MANAGEMENT FRAMEWORK
The triple constraint is the combination of the three most significant restrictions on any project:
Scope, Schedule and Cost.
The triple constraint is sometimes referred to as the project management triangle or the iron triangle.
PROJECT MANAGEMENT FRAMEWORK
• Who is a Project Stakeholder ?
• “Is an individual, group, or organization who may affect, be affected by, or perceive itself to be affected by a decision, activity, or outcome of a project.”
• Internal or External• Directly or indirectly involved with the project• Whose interests may be impacted by the performance
or completion of the project
Examples
PROJECT MANAGEMENT FRAMEWORK
Recap
• Project – A temporary endeavor undertaken to create a unique product, service, or result• When does it end? When is it successful?
• Operations - A function that performs an ongoing tasks. • Program - A group of related projects managed together• Portfolio - A set of projects, programs, and related work
managed as a group to achieve a specific strategic business goal.
• Project Management – The application of Knowledge, Skills, Tools and Techniques to meet project requirements
• Project Constraints – Scope, Schedule, Cost, Risk, Resource, Quality,
• Stakeholder - an individual, group, or organization who may affect, be affected by the outcome of the project
____________________
PRODUCT LIFE CYCLE
PROJECT LIFE CYCLE
PROJECT MANAGEMENT FRAMEWORK
“Product Lifecycle – the series of phases that represent the evolution of a Product from concept through delivery, growth, maturity to retirement”
PROJECT MANAGEMENT FRAMEWORK• Project Lifecycle - a series of phases that a project passes
through from its initiation to its closure
PROJECT MANAGEMENT FRAMEWORK
• The Project Life Cycle stages:• Initiating • Planning• Executing• Monitoring & Controlling • Closing
Also known as Project Management Process Groups
PROJECT MANAGEMENT FRAMEWORK
InitiatingThe processes performed to define a new project or a new phase of an existing project by obtaining authorization to startExamples / Outputs
PlanningThe processes required to establish the scope of the project, refine the objectives and define the course of action required to attain those objectives.Examples / Outputs
ExecutingThe processes performed to complete the work defined in the plan Examples / Outputs
PROJECT MANAGEMENT FRAMEWORK
Monitoring and Controlling
The processes required to track, review and regulate the progress and performance of the project. Identify changes and initiate themExamples / Outputs
ClosingThe processes performed to finalise all activities across all process groups to formally close the project or phase Examples / Outputs
PROJECT MANAGEMENT FRAMEWORK
PROJECT MANAGEMENT FRAMEWORK
I
P
EM
& C
C
1
2
3
4
5
6
7
PROJECT MANAGEMENT FRAMEWORK
1 - Once the project has been approved, it moves from initiating into detailed planning, 2 - The project then moves into executing, where the team completes the work according to the what is detailed in the project management plan.3 - While the work is being done, the work results are fed into monitoring & controlling to make sure the project is tracking to the baseline in the project management plan.4 - If there are variances from the plan that requires changes but don’t affect the baselines, the resulting approved changes are fed back into executing & the execution of the project is adjusted to help fix the variance. 5 - Sometimes the variances require more significant changes that require adjustments to the baselines. If these changes are approved, there needs to be a planning efforts to identify the impact to the project baselines & revise the project management plan accordingly
PROJECT MANAGEMENT FRAMEWORK
6 – In rare instances, If the project deviates away from the baselines to an extent that it requires an analysis of whether the project should continue at all, it moves back into initiating for this decision.7 – When the work is completed and scope is delivered, the project moves to closing stage. 8- The project could also move to the closing stage when it is terminated
PROJECT MANAGEMENT FRAMEWORK
Recap• Product Lifecycle – the series of phases that represent the
evolution of a Product from concept to retirement• Project Lifecycle - a series of phases that a project passes
through from its initiation to its closure• The process groups sometimes interact and overlap within a
project lifecycle• The lifecycle of a project is defined in the project
management plan. The lifecycle of a product is not defined and continues till retirement
PROJECT MANAGEMENT FRAMEWORK
Key Terminology
• Vision – Idealistic View of the desired outcomes of the project
• Objective – Something towards which the project work is to be directed, attainable or achieved
• Scope – the Sum of all the products, services and results to be provided as result of the project
• WBS – A hierarchical decomposition of the total scope of work to be completed by the project team to accomplish the project objectives
• Milestone – A significant point or event in a project, program or portfolio
• Baseline – The approved version of a work product that can be changed only through formal change control procedures, and is used as a basis for comparison
• Triple Constraint - The combination of the three most significant restrictions on any project: scope, schedule and cost.
• Project Lifecycle - a series of phases that a project passes through from its initiation to its closure
• Gantt Chart – a schedule bar chart where activities are listed on the vertical axis, dates on the horizontal axis and activity durations are shown as horizontal bars placed according to start and finish dates
• Change Management – a formal process to manage change in a project
• Risk Mitigation - a measure or set of measures taken by a project manager to reduce or eliminate the risks associated with a project
PROJECT MANAGEMENT FRAMEWORK
End of Part I
PART 2Project ManagerRoles & Responsibilities and Competencies
PROJECT MANAGER ROLES, RESPONSIBILITIES & SKILLS
• Planning• Define and clarify project scope• Develop the project plan• Develop the project schedule• Develop policies and procedures to support the
achievement of the project objectives
• Organizing• Determine the organizational structure of the project
team• Identify roles and positions• Identify services to be provided by external companies• Staff project positions
PROJECT MANAGER ROLES, RESPONSIBILITIES & SKILLS
• Leading• Setting team direction• Coordinating activities across different organizational
functions• Motivating team members• Assigning work
• Controlling• Measuring - Evaluating - Correcting• Defining project baselines• Tracking project progress• Project status reporting• Determining and taking corrective actions
PROJECT MANAGER ROLES, RESPONSIBILITIES & SKILLS
• Communication Skills:• Written• Oral / Verbal • Non-verbal
PROJECT MANAGER ESSENTIAL SKILLS
• Communications Methods:
• Informal Written• Examples: E-mail, Memorandums• When is it Used
Used frequently on the project to conveyinformation.
• Formal Written:• Examples: Contracts, legal notices, Project documents • When is it used: Used infrequently, but essential for prominent
documents that go into project records
PROJECT MANAGER ESSENTIAL SKILLS
• Communications Methods:
• Informal Verbal:• Examples: Meetings, discussions, phone calls,
conversations.• When is it used: Used to communicate information quickly and efficiently
• Formal Verbal:• Examples: Speeches, mass communications, presentations• When is it used: Used for events and gatherings, road shows,
announcements
PROJECT MANAGER ESSENTIAL SKILLS
• Organizational Skills:
• Maintain project documentation, minutes of meetings, project reports etc.
• Organize meetings, requirements sessions etc. • Coordinate specific sessions with stakeholders during the
project life cycle• Coordinate with vendors on their visit, meetings etc.• Organize logistics, infrastructure etc.
PROJECT MANAGER ESSENTIAL SKILLS
• Conflict Management Skills:
• Conflicts arise often during projects. • Conflicts may arise between stakeholders due to differing
or competing expectations
• The Project Manager should adopt conflict management to resolve problems in the interest of achieving the common goals of the project
• The Project Manager should be able to clearly analyze the problem, and implement the best course of action.
• If unable to resolve the problem, escalation should be used
PROJECT MANAGER ESSENTIAL SKILLS
Conflict Management Techniques
• Withdraw / Avoid • Smooth / Accommodate• Compromise / Reconcile• Force / Direct• Collaborate / Problem Solve
PROJECT MANAGER ESSENTIAL SKILLS
• Negotiation Skills:
• The project manager should possess the ability to influence stakeholders to achieve the common goal of the project
• Negotiation could take place in at all stages of the project and could involve scope of the project, the schedule, cost, milestones etc.
PROJECT MANAGER ESSENTIAL SKILLS
Negotiation Techniques
• Listen• Analyse the situation• Differentiate between wants and needs• Focus on interests and issues rather than positions• Ask high, but offer low. Be realistic• When you make a concession, act as though you are yielding
something of value• Try for a “Win-Win” Situation
PROJECT MANAGER ESSENTIAL SKILLS
• Leadership Skills:
• Successful projects require strong leadership skills. The project manager should be adept in: -
• Motivating people & inspiring them to commit.
• Maintaining the self confidence and self-esteem of the team (Integrity)
• Maintaining a constructive relationship with all stakeholders
End of Part II
QUIZ
• What are the 5 process groups in the project management framework?
• What is a program • What is a portfolio
• Progressive Elaboration is an ________________ method of increasing the level of detail in a PM plan
• What are the six project constraints that a project manager balances?
• The three key constraints are also called the _______________________ or the ____________________
I, P, E, M & C, C
A group of related projects managed together
A set of projects, programs, and related work managed as a group
Iterative
Scope, Schedule, Budget, Quality, Resources, Risks
Triple Constraints Iron Triangle
• The stages of a product lifecycle - _______________,, _______________ & __________, _______________, ________________
• Broadly, the product lifecycle is measured on its Y axis through _________________, and the project lifecycle is measured through ______________________
• Provide few outputs of the following process groups• Initiating • Planning• Executing• Monitoring & Controlling • Closing
• What is a baseline -
Concept
Delivery Growth MaturityRetirement
SalesCost and Resources
Project CharterProject Plan
Reports
Issue Log
Project Closure Document
The approved version of a work product
• What is WBS• Types of Communication Skills• Types of Conflict Management techniques
Work Breakdown StructureOral, Written, Non Verbal
Withdraw / Avoid Smooth / AccommodateCompromise / ReconcileForce / DirectCollaborate / Problem Solve
PROJECT MANAGEMENT ESSENTIALS
DAY 2
PROJECT MANAGEMENT ESSENTIALS
Recap of Day 1
• Project – Operations – Program – Portfolio• What is Project Management? Why do organizations need
Project Management?• Process Structure – Inputs > Tools and Techniques > Outputs• Project Constraints – Scope, Schedule, Cost, Risk, Resources,
Quality• Who is a Project Stakeholder?• Product Lifecycle – Project Lifecycle• Project Lifecycle Stages – Initiating, Planning, Executing,
Monitoring & Controlling, Closing• Project Manager –
• Roles & Responsibilities – Planning, Organising, Leading and Controlling,
• Competencies – Communication, Negotiation, Organisational, Conflict Resolution, Leadership
PROJECT MANAGEMENT KNOWLEDGE AREAS
Overview
PROJECT MANAGEMENT KNOWLEDGE AREAS
IV - PROJECT INTEGRATION MANAGEMENT
PROJECT INTEGRATION MANAGEMENT
“Project Integration Management includes the processes and activities to
identify,
define,
combine,
unify and
coordinate
the various processes and project management activities within the project management process groups”
PROJECT INTEGRATION MANAGEMENT - OVERVIEW
Summary
• Unification, Consolidation, Communication, Integration across processes and activities throughout the project lifecycle
• Conducting actions that are crucial to controlled project execution• Making choices about resource allocation, trade-offs among competing objectives and
alternatives• Managing interdependencies across the project lifecycle
PROJECT INTEGRATION MANAGEMENT - OVERVIEW
• 4.1 Develop Project Charter - the process of developing a document that formally authorizes a project or a phase and documenting initial requirements that satisfy the stakeholder’s needs and expectations.
• • 4.2 Develop Project Management Plan - the process of documenting the actions
necessary to define, prepare, integrate, and coordinate all subsidiary plans.
• 4.3 Direct and Manage Project Work - the process of performing the work defined in the project management plan to achieve the project’s objectives.
• 4.4 Monitor and Control Project Work - the process of tracking, reviewing, and regulating the progress to meet the performance objectives defined in the project management plan.
• 4.5 Perform Integrated Change Control - the process of reviewing all change requests, approving changes, and managing changes to the deliverables, organizational process assets, project documents, and the project management plan.
• 4.6 Close Project or Phase - the process of finalizing all activities across all of the Project Management Process Groups to formally complete the project or phase.
PROJECT INTEGRATION MANAGEMENT - OVERVIEW
Key Terms to remember
• Project Charter – A document that formally authorizes the existence of a project• Project Statement of Work – A narrative description of products, services or results to
be delivered by a project• Business Case – A document that describes the necessary information to determine
whether or not the project is worth the required investment• Project Management Plan – A document that describes how the project will be executed,
monitored and controlled• Approved Change Requests – the requests reviewed and approved for implementation
by the Change Control Board• Project Management Information System – Automated tool used during the
monitoring and controlling process• Lessons Learned – Information on issues, risks, techniques etc., that may be applied to
future projects
PROJECT INTEGRATION MANAGEMENT - OVERVIEW
Process Process Group
4.1 Develop Project Charter Initiating
4.2 Develop Project Management Plan Planning
4.3 Direct and Manage Project Work Executing
4.4 Monitor and Control Project Work Monitoring and Controlling
4.5 Perform Integrated Change Control Monitoring and Controlling
4.6 Close Project or Phase Closing
Integration Management Processes
PROJECT INTEGRATION MANAGEMENT - OVERVIEW
PROJECT INTEGRATION MANAGEMENT - OVERVIEW
PROJECT INTEGRATION MANAGEMENT - OVERVIEW
QUIZ
• The ________________is the document that formally authorizes the existence of a project
• The Direct and Manage Project Work process integrates with the ________________Process Group
• True or False - Lessons Learned is recorded throughout the lifecycle of the project, and documented / finalized in the closing stage
• Approved Change Requests may alter the ______________ of the project
Project Charter Executing
TrueBaseline
V - PROJECT SCOPE MANAGEMENT
PROJECT SCOPE MANAGEMENT
“Project Scope Management includes the processes required to ensure that the project includes all the work
required, and only the work required , to complete the project successfully.
Managing the project scope is primarily concerned with defining and controlling what is and what is not included
in the project.”
PROJECT SCOPE MANAGEMENT - OVERVIEW
Summary
• Work performed to deliver a product, service or result• Project scope is sometimes viewed as product scope• Defining and controlling what is and what is not included
Project Scope Management needs to be well integrated with other knowledge areas so that the work will result in delivery of
the project scope
PROJECT SCOPE MANAGEMENT - OVERVIEW
• 5.1 Plan Scope Management - The process of creating a scope management plan that documents how the project scope will be defined , validated and controlled
• 5.2 Collect Requirements - The process of defining and documenting stakeholders’ needs to meet the project objectives
• 5.3 Define Scope -The process of developing a detailed description of the project and product
• 5.4 Create WBS - The process of subdividing project deliverables and project work into smaller, more manageable components
• 5.5 Validate Scope - The process of formalizing acceptance of the completed project deliverables
• 5.6 Control Scope - The process of monitoring the status of the project and product scope and managing changes to the scope baseline
PROJECT SCOPE MANAGEMENT - OVERVIEW
Key Terms to remember
• Product Scope – The features/functions that characterize a product• Project Scope – The work performed to deliver a product, service or result with specified
features or functions• Requirements Management Plan – A component of the project management plan that
describes how requirements will be analysed, documented or analysed.• Interview – A formal or informal approach to elicit information from stakeholders directly• Prototype – A method of obtaining feedback on requirements by providing a working
model of the product before actually building it• Benchmarking – Comparing actual or planned practices to identify best practices,
generate ideas for improvement, and provide a basis for measuring performance.• Requirements Traceability Matrix – A grid that links requirements from their origin to
the deliverables that satisfy them
PROJECT SCOPE MANAGEMENT - OVERVIEW
Process Process Group
5.1 Plan Scope Management Planning
5.2 Collect Requirements Planning
5.3 Define Scope Planning
5.4 Create WBS Planning
5.5 Validate Scope Monitoring and Controlling
5.6 Control Scope Monitoring and Controlling
Scope Management Processes
PROJECT SCOPE MANAGEMENT - OVERVIEW
PROJECT SCOPE MANAGEMENT - OVERVIEW
PROJECT SCOPE MANAGEMENT - OVERVIEW
Quiz
• A working model of the product before actually building it is called a ___________________
• A Work Breakdown Structure (WBS) is created during the __________________ Stage
• Project Scope Management includes the processes required to ensure that the project includes all the work required, and______________________, to complete the project successfully.
only the work required
PrototypePlanning
VI – PROJECT TIME MANAGEMENT
PROJECT TIME MANAGEMENT
“Project Time Management includes the processes required to manage the timely completion of the
project.”
PROJECT TIME MANAGEMENT
Summary
• Project Time management refers to the ability to plan and finish the project in a timely manner.
• Includes defining activities, estimating the durations of activities, scheduling activities and ensuring adherence to the schedule.
• A combination of expert judgment and specific tools like precedence diagramming, network diagramming etc. are used
PROJECT TIME MANAGEMENT - OVERVIEW
• 6.1 Plan schedule management - The process of establishing the policies, procedures and documentation for planning, developing, managing, executing and controlling the project schedule
• 6.2 Define Activities - The process of identifying the specific actions to be performed to produce the project deliverables.
• 6.3 Sequence Activities - The process of identifying and documenting relationships among the project activities.
• 6.4 Estimate Activity Resources - The process of estimating the type and quantities of material, people, equipment, or supplies required to perform each activity.
• 6.5 Estimate Activity Durations - The process of approximating the number of work periods needed to complete individual activities with estimated resources.
Contd.
PROJECT TIME MANAGEMENT - OVERVIEW
• 6.6 Develop Schedule - The process of analyzing activity sequences, durations, resource requirements, and schedule constraints to create the project schedule.
• 6.7 Control Schedule - The process of monitoring the status of the project to update project progress and managing changes to the schedule baseline.
PROJECT TIME MANAGEMENT - OVERVIEW
Key Terms to remember
• Project Calendar – A calendar that identifies working days and shifts available for scheduled project activities
• Schedule Baseline – The approved version of a schedule model that can be changed only through approved change management procedures
• Crashing - A technique used to shorten the schedule duration by adding resources• Fast Tracking – A technique where sequential activities are done in parallel to shorten the
schedule duration• Gantt Charts – Bar Charts which represent schedule information where activities are
shown in the vertical axis, dates are shown in the horizontal axis, and activity durations are shown as horizontal bars
• Critical path - The sequence of project activities that add up to the longest overall duration. This determines the shortest time possible to complete the project.
• FS – Finish to Start, SS – Start to Start, FF – Finish to Finish
PROJECT TIME MANAGEMENT - OVERVIEW
Process Process Group
6.1 Plan schedule management Planning
6.2 Define Activities Planning
6.2 Sequence Activities Planning
6.4 Estimate Activity Resources Planning
6.5 Estimate Activity Durations Planning
6.6 Develop Schedule Planning
6.7 Control Schedule Monitoring and Controlling
Time Management Processes
PROJECT TIME MANAGEMENT - OVERVIEW
PROJECT TIME MANAGEMENT - OVERVIEW
PROJECT TIME MANAGEMENT - OVERVIEW
Quiz
• _________________ & _________________ are techniques used to shorten project duration
• Develop Schedule is done during the ______________________ Stage
• True or False - FS (Finish to Start) implies that an activity cannot start unless the preceding activity has finished –
Crashing Fast TrackingPlanning
True
VII - PROJECT COST MANAGEMENT
PROJECT COST MANAGEMENT - OVERVIEW
Project Cost Management includes the processes involved in
planning, estimating, budgeting, financing, funding,
managing, and controlling costs
so that the project can be completed within the approved budget
PROJECT COST MANAGEMENT - OVERVIEW
Summary
• Project Cost management involves knowing the financial resources required for a project and creating an appropriate budget.
• It requires that the project manager adheres to the budget • Cost management closely interacts with time management • Estimating is the key tool used for creating budgets• The Project Manager tracks the expended costs against
budgets and take necessary decisions
PROJECT COST MANAGEMENT - OVERVIEW
• 7.1 Plan Cost Management - The process that establishes the policies, procedures , and documentation for planning , managing , expending , and controlling project costs
• 7.2 Estimate cost Management - The process of developing an approximation of the monetary resources needed to complete project activities. The key benefit of this process is that it determines the amount of cost required to complete project work.
• 7.3 Determine Budget - The process of aggregating the estimated costs of individual activities or work packages to establish an authorized cost baseline. This baseline includes all authorized budgets, but excludes management reserves.
• 7.4 Control Costs - The process of monitoring the status of the project to update the project budget and managing changes to the cost baseline
PROJECT COST MANAGEMENT - OVERVIEW
Key Terms to remember
• Direct Cost - Any cost that is identified specifically with a particular final cost objective. • Indirect Cost - Any cost not directly identified with a single, final cost objective (more
than one project) • Fixed Cost - Periodic charge that does not vary with business volume • Variable Cost - Cost that fluctuates based on the business volume • Opportunity Cost: When there is a decision to be made between two opportunities, the
opportunity cost is the value / money forgone for the not doing the project• Sunk Cost - Cost already incurred which cannot be recovered regardless of future events• Planned Value – The authorized budget assigned to schedule work• Earned Value - The measure of work expressed in terms of the budget authorized for that
work• Actual Cost – The amount of money expended in the project as on date• Cost of Quality - The costs associated with not creating a quality product.
PROJECT COST MANAGEMENT - OVERVIEW
Process Process Group
7.1 Plan Cost Management Planning
7.2 Estimate Costs Planning
7.3 Determine Budget Planning
7.4 Control Costs Monitoring and Controlling
Cost Management Processes
PROJECT COST MANAGEMENT - OVERVIEW
PROJECT COST MANAGEMENT - OVERVIEW
Quiz
• True / False - Sunk Costs are costs that are already incurred and can easily be recovered at any stage
• Determine Budget falls under the ____________________ process group
• When a project activity needs to be redone, the _________________ increases.
FalsePlanning
Cost of Quality
PROJECT QUALITY MANAGEMENT
PROJECT QUALITY MANAGEMENT - OVERVIEW
Project Quality Management Processes and activities of the performing organization that
determine
quality policies,
objectives,
and responsibilities
so that the project will satisfy the needs for which it was undertaken
PROJECT QUALITY MANAGEMENT - OVERVIEW
Summary
• Project Quality management has two goals:• Ensuring a quality end-product.• Ensuring that all of the processes involved during the
project lifecycle are carried out efficiently.• By managing quality, project managers can ensure a
successful project and increased customer satisfaction. • Quality assurance – is proactive and includes planned and
systematic activities implemented in a quality system to achieve quality. It occurs before a problem is identified,
• Quality Control – includes problem identification, problem analysis and problem correction. It is reactionary and occurs after a problem has been identified.
PROJECT QUALITY MANAGEMENT - OVERVIEW
• 8.1 Plan Quality Management - Identifying quality requirements and/or standards for the project and its deliverables, and documenting how the project will demonstrate compliance with quality requirements
• 8.2 Perform Quality Assurance – The process of auditing quality requirements and the results from quality control measurements to ensure appropriate quality standards and operational definitions are used.
• 8.3 Control Quality – The process of monitoring and recording results of executing the quality activities to assess performance and recommend necessary changes.
PROJECT QUALITY MANAGEMENT - OVERVIEW
Key Terms to remember
• Quality - is “the degree to which a set of inherent characteristics fulfil requirements”• Quality Assurance - activities that boost confidence surrounding quality• Quality Control - involves operational techniques meant to ensure quality standards. • Quality Management Plan is a component of the Project Management Plan that
describes how the quality policies will be implemented• Grade - is a category or rank given to entities having the same functional use but different
technical characteristics• Precision – is a measure of exactness• Continuous Improvement – The PDCA (Plan-Do-Check-Act) cycle is the basis for quality
improvement• Cost of Quality - The expense of all the activities within a project to ensure quality,
incurred throughout the project lifecycle• Cost-Benefit Analysis - considers the cost benefit trade offs, the benefit of quality
activities must outweigh the costs
PROJECT QUALITY MANAGEMENT - OVERVIEW
Quality Management Processes
Process Process Group
8.1 Plan Quality Management Planning
8.2 Perform Quality Assurance Executing
8.3 Control Quality Monitoring and Controlling
PROJECT QUALITY MANAGEMENT - OVERVIEW
PROJECT QUALITY MANAGEMENT - OVERVIEW
Quiz
• Quality Assurance is ___________________ and Quality Control is _________________
• Perform Quality Assurance forms part of the ______________ process group
• The Quality Management Plan must address• A. Quality Control for the project.• B. Quality Assurance for the project.• C. Continuous Process Improvement for the project .• D. All of the above.• E. None of the above
Proactive ReactiveExecuting
D
XI - PROJECT HUMAN RESOURCE MANAGEMENT
PROJECT HUMAN RESOURCE MANAGEMENT - OVERVIEW
Project Human Resource Management includes the processes that
organise,manage and lead
the project team
PROJECT HUMAN RESOURCE MANAGEMENT - OVERVIEW
Summary
• The project team is comprised of people with identified skillset, assigned with specific roles and responsibilities, reporting relationships etc.
• They may be full time or part time assigned to the project• Acquiring the project team and developing / managing them effectively• Tracking performance, providing feedback, resolving issues, managing changes
PROJECT HUMAN RESOURCE MANAGEMENT - OVERVIEW
• 9.1 Plan Human Resource Management - The process of identifying and documenting project roles, responsibilities, required skills, reporting relationships, and creating a staffing management plan.
• 9.2 Acquire Project Team - The process of confirming human resource availability and obtaining the team necessary to complete project activities.
• 9.3 Develop Project Team - The process of improving competencies, team member interaction, and overall team environment to enhance project performance.
• 9.4 Manage Project Team - Team is the process of tracking team member performance, providing feedback, resolving issues, and managing team changes to optimize project performance.
PROJECT HUMAN RESOURCE MANAGEMENT - OVERVIEW
Key terms to remember
• Roles and Responsibilities details role, authority, responsibility and competency for the resource requirement of the project
• Project Organization Chart is a graphic display of project team members and their reporting relationships. It can be formal or informal, highly detailed or broadly framed, based on the needs of the project.
• Staffing Management Plan details how and when the project will be staffed, released, training needs of resources, recognition & rewards, compliance and resource calendar.
• Pre-assignment – assigning project team members in advance• Negotiation – with functional managers and other project managers if a resource with
specific skillset is required for the project• Conflict Resolution – Managing conflicts using certain techniques to achieve the project
goals• RACI Matrix (Responsible-Accountable-Consult-Inform) - describes the participation
by various roles in completing tasks or deliverables for a project or business process• Forming – Storming – Norming – Performing – (Adjourning)
PROJECT HUMAN RESOURCE MANAGEMENT - OVERVIEW
Process Group Process
9.1 Plan Human Resource Management Planning
9.2 Acquire Project Team Executing
9.3 Develop Project Team Executing
9.4 Manage Project Team Executing
PROJECT HUMAN RESOURCE MANAGEMENT - OVERVIEW
PROJECT HUMAN RESOURCE MANAGEMENT - OVERVIEW
Quiz
• RACI stands for ____________, _____________, ________________, _________________
• Avoid, Accommodate, Reconcile, Direct & Problem Solve are all techniques of
Negotiation / Conflict Resolution• True / False - Disagreements amongst the project team
mainly occur during the Forming stage• ___________________ is a component of the Project
Management Plan that details how and when the project will be staffed, released, training needs of resources, recognition & rewards, compliance and resource calendar
Responsible Accountable Consult Inform
-----------------
False. They occur during the Storming StageStaffing Management Plan
X – PROJECT COMMUNICATIONS MANAGEMENT
PROJECT COMMUNICATIONS MANAGEMENT - OVERVIEW
“Project Communications Management includes the processes that are required to ensure timely and
appropriate
Planning,Collection,Creation,
Distribution,Storage,Retrieval,
Management,Control,
Monitoring
and the ultimate disposition of project information”
PROJECT COMMUNICATIONS MANAGEMENT - OVERVIEW
Summary
• Project Managers spend most of their time communicating with internal and external stakeholders
• Effective communication creates a bridge between diverse stakeholders with different• Cultural• Organisational• Expertise• Perspective and interests
which impact or have an influence on the outcome of the project• Entails
• Defining the approach to communicate effectively and efficiently• Enabling an efficient flow of communication• Controlling the flow of communication
PROJECT COMMUNICATIONS MANAGEMENT - OVERVIEW
• 10.1 Plan Communications Management - The process of developing an appropriate approach and plan for project communications based on stakeholder's information needs and requirements, and available organizational assets.
• 10.2 Manage Communications - The process of creating, collecting, distributing, storing, retrieving, and the ultimate disposition of project information in accordance to the communications management plan.
• 10.3 Control Communications - The process of monitoring and controlling communications throughout the entire project life cycle to ensure the information needs of the project stakeholders are met.
PROJECT COMMUNICATIONS MANAGEMENT - OVERVIEW
Key terms to remember
• Interactive Communication – multi directional exchange of communication. E.g. Meetings, Phone calls, video conferencing etc. MOST effective
• Push Communication – Distribution of communication to an intended set of recipients. E.g. Letters, Memos, Emails, PRs etc. MODERATELY effective
• Pull Communication – Distribution of Communication to very large audiences providing them the discretion to access the content. E.g Intranet Portals, eLearning, knowledge repositories etc. LEAST effective.
• Communication Types – Oral, Written, Non-verbal, informal written, formal written, informal verbal, formal verbal
• Performance Reporting – The act of collecting and distributing performance information, including status reports, progress measurements, and forecasts
• Issue Log – Systemised medium to record issues faced throughout the lifecycle of the project and beyond
• Information Management Systems – a standard set of tools for the Project Manager to capture, store and distribute information to stakeholders on costs, schedule and performance
PROJECT COMMUNICATIONS MANAGEMENT - OVERVIEW
Process Group Process
10.1 Plan Communications Management
Planning
10.2 Manage Communications Executing
10.3 Control Communications Monitoring and Controlling
Communication Processes
PROJECT COMMUNICATIONS MANAGEMENT - OVERVIEW
PROJECT COMMUNICATIONS MANAGEMENT - OVERVIEW
Quiz
• Phone Call is a ________________ type of communication• True / False - The Communications Management Plan
describes who can communicate with different types of stakeholders during the project
• Intranet Portals and eLearning are examples of __________ Communication
• True / False - Email is an example of Multidirectional Communication
Informal Verbal
TruePull
False
XI - PROJECT RISK MANAGEMENT
PROJECT RISK MANAGEMENT - OVERVIEW
“Project Risk Management includes the processes of conducting
risk management planning, identification, analysis,
response planning, and controlling risk
on a project”
PROJECT RISK MANAGEMENT - OVERVIEW
Summary
• Involves the identification and documentation of risks throughout the project lifecycle• Key objective is to increase the likelihood of positive events and decrease the likelihood of
negative ones• It ensures that the degree, type, and visibility of risk management are commensurate with
both the risks and the importance of the project to the organization• Its important to communicate with and obtain agreement and support from all stakeholders• Helps to reduce uncertainty and focus on high priority risks• Negative Risk Management Strategies include: -
• Acceptance – Don’t take any action unless the risk occurs• Avoidance – Don’t perform the task that may lead to a risk• Transfer – Shift the impact of the risk to a third party• Mitigate – Mitigate risks through specific actions like diversification, addition of
resources etc.
PROJECT RISK MANAGEMENT - OVERVIEW
• 11.1 Plan Risk Management - The process of defining how to conduct risk management activities or a project.
• 11.2 Identify Risks - The process of determining which risks may affect the project and documenting their characteristics
• 11.3 Perform Qualitative Risk Analysis - The process of prioritizing risks for further analysis or action by assessing and combining their probability of occurrence and impact.
• 11.4 Perform Quantitative Risk Analysis - The process of numerically analyzing the effect of identified risks on overall project objectives
• 11.5 Plan Risk Responses - The process of developing options and actions to enhance opportunities and to reduce threats to project objectives.
• 11.6 Control Risks - The process of implementing risk response plans, tracking identified risks, monitoring residual risks, identifying new risks, and evaluating risk process effectiveness throughout the project
PROJECT RISK MANAGEMENT - OVERVIEW
Key terms to remember
• Risk Appetite - The degree of uncertainty an entity is willing to take on in anticipation of a reward.
• Risk Tolerance - The degree, amount, or volume of risk that an organization or individual will withstand.
• Risk Threshold - The level of uncertainty or at which a stakeholder may have a specific interest. Below that risk threshold, the organization will accept the risk. Above that risk threshold, the organization will not tolerate the risk.
• Risk Register – A document where the results of risk analysis and risk response planning are recorded
• Risk Mitigation – A risk response strategy to reduce the probability or impact of a risk• Risk Acceptance – A risk response strategy to acknowledge the risk and not take any
action unless it occurs• Positive and Negative Risks – Opportunities and Threats• Risk Management Plan – A component of the Project Management Plan that describes
how risk management activities will be structured and performed.• Probability and Impact Matrix – A grid to map the probability of each risk occurrence
and its impact on the project objective if that risk occurs.• Diagramming Techniques – Cause and Effect Diagrams, Process Flow charts, Influence
Diagrams
PROJECT RISK MANAGEMENT - OVERVIEW
Process Group Process
11.1 Plan Risk Management Planning
11.2 Identify Risks Planning
11.3 Perform Qualitative Risk Analysis
Planning
11.4 Perform Quantitative Risk Analysis
Planning
11.5 Plan Risk Responses Planning
11.6 Control Risks Monitoring and Controlling
Risk Management Processes
PROJECT RISK MANAGEMENT - OVERVIEW
PROJECT RISK MANAGEMENT - OVERVIEW
Quiz
• Name of the Document where the results of risk analysis and risk response planning are recorded - ______________________
• True / False - Positive Risks are welcome as they are opportunities, as long as the organization has the tolerance for it -
• A strategy to completely eliminate the task that may lead to a risk occurrence - __________________
• Perform Qualitative Risk Analysis falls under the __________________ process group and Perform Quantitative Risk Analysis falls under the _______________ process group
Risk Register
True
AvoidancePlanningPlanning
PROJECT RISK MANAGEMENT - OVERVIEW
XII - PROJECT PROCUREMENT MANAGEMENT
PROJECT PROCUREMENT MANAGEMENT - OVERVIEW
Project Procurement Management includes the processes necessary to purchase or acquire products, services, or results needed from outside the project
team.
Project Procurement Management includes the contract management and change control processes required to develop and administer contracts or purchase orders
issued by authorized project team members.
PROJECT PROCUREMENT MANAGEMENT - OVERVIEW
Summary
• Identify whether outside support is needed, and if so, what, how and when to acquire it• Alignment of internal and external stakeholder expectations through established
agreements.• Buyers and sellers performance meets the procurement requirements according to the
terms in the contract / agreement• The activities involved in the procurement processes form the lifecycle of the agreement• Some risks may be shared or transferred to a seller
PROJECT PROCUREMENT MANAGEMENT - OVERVIEW
• 12.1 Plan Procurement Management - The process of documenting project procurement decisions, specifying the approach, and identifying potential sellers.
• 12.2 Conduct Procurements - The process of obtaining seller responses, selecting a seller, and awarding a contract.
• 12.3 Control Procurements - The process of managing procurement relationships, monitoring contract performance, and making changes and corrections to contracts as appropriate.
• 12.4 Close Procurements - The process of completing each procurement.
PROJECT PROCUREMENT MANAGEMENT - OVERVIEW
Key terms to remember
• Seller – Contractor, Sub-Contractor, Vendor, Service Provider, Supplier• Buyer – Client, Customer, Acquiring organization, service requestor, purchaser• RFI – Request for Information• RFP – Request for Proposal, Tender, bid• Fixed Price Contracts – Setting a total fixed price for a product, service or result to be
provided• Firm Fixed Price Contracts, Fixed Price Incentive Fee Contracts, Fixed Price with
Economic Price Adjustment Contracts• Cost Reimbursable Contracts – Payments, Cost Reimbursements to the seller for all
legitimate costs incurred for completed work, plus a fee• Time and Material Contracts – a hybrid between fixed price and cost reimbursable
contracts. Usually open ended and used for staff augmentation, hiring of experts etc.• Make or Buy Analysis – A technique used to determine whether a particular work can be
accomplished by the project team or needs to be purchased from outside sources.
PROJECT PROCUREMENT MANAGEMENT - OVERVIEW
Process Group Process
12.1 Plan Procurement Management Planning
12.2 Conduct Procurements Executing
12.3 Control Procurements Monitoring and Controlling
12.4 Close Procurements Closing
Procurement Processes
PROJECT PROCUREMENT MANAGEMENT - OVERVIEW
XIII - PROJECT STAKEHOLDER MANAGEMENT
PROJECT STAKEHOLDER MANAGEMENT - OVERVIEW
Project Stakeholder Management includes the processes required to identify the people, groups, or organizations
that could impact or be impacted by the project, to analyze stakeholder expectations and their impact on the project,
and to develop appropriate management strategies for effectively engaging stakeholders in project decisions and execution.
Stakeholder management also focuses on continuous communication with stakeholders to understand their needs and expectations, addressing issues as they
occur, managing conflicting interests and fostering appropriate stakeholder engagement in project decisions and activities.
Stakeholder satisfaction should be managed as a key project objective.
PROJECT STAKEHOLDER MANAGEMENT - OVERVIEW
Summary
• The Project Manager identifies the appropriate focus for each stakeholder or group of stakeholders
• Provides a clear, actionable plan to interact with project stakeholders to support the project's interests
• Allows the project manager to increase support and minimize resistance from stakeholders, significantly increasing the chances to achieve project success.
• Maintain or increases the efficiency and effectiveness of stakeholder engagement activities as the project evolves and its environment changes.
PROJECT STAKEHOLDER MANAGEMENT - OVERVIEW
• 13.1 Identify Stakeholders - The process of identifying the people, groups, or organizations that could impact or be impacted by a decision, activity, or outcome of the project, analyzing and documenting relevant information regarding their interests, involvement, interdependencies, influence, and potential impact on project success.
• 13.2 Plan Stakeholder Management - The process of developing appropriate management strategies to effectively engage stakeholders throughout the project life cycle, based on the analysis of their needs, interests, and potential impact on project success.
• 13.3 Manage Stakeholder Engagement - The process of communicating and working with stakeholders to meet their needs/expectations, address issues as they occur, and foster appropriate stakeholder engagement in project activities throughout the project life cycle.
• 13.4 Control Stakeholder Engagement - The process of monitoring overall project stakeholder relationships and adjusting strategies and plans for engaging stakeholders.
PROJECT STAKEHOLDER MANAGEMENT - OVERVIEW
Key Terms to remember
• Stakeholder - An individual, group, or organization who may affect, be affected by, or perceive itself to be affected by a decision, activity, or outcome of a project.
• Stakeholder Analysis – A technique of systematically gathering and analyzing qualitative and quantitative information to determine whose interests should be taken into account .
• Power / Interest Grid – Grouping the stakeholders based on their level of authority (Power) and their level of concern (Interest)
• Stakeholder Register – A document containing stakeholder information needed to plan appropriate ways to engage stakeholders
• Stakeholder Engagement Levels: - Unaware, Resistant, Neutral, Supportive, Leading• Stakeholder Management Plan - A component of the Project Management Plan that
describes management strategies to appropriately engage stakeholders• Interpersonal skills examples – Building Trust, Resolving Conflicts, Active Listening
PROJECT STAKEHOLDER MANAGEMENT - OVERVIEW
PROJECT STAKEHOLDER MANAGEMENT - OVERVIEW
PROJECT MANAGEMENT ESSENTIALS
DAY 3
PROJECT MANAGEMENT ESSENTIALS
Recap of Day 2• Project Management Knowledge Areas
• Project Integration Management• Project Scope Management• Project Time Management• Project Cost Management• Project Quality Management• Project Human Resource Management• Project Communications Management• Project Risk Management• Project Procurement Management• Project Stakeholder Management.
ORGANISATIONAL INFLUENCES AND THE PROJECT LIFECYCLE
Overview
PROJECT MANAGEMENT ESSENTIALS
• Day 3 Agenda• Part I
• Organizational Influences on Project Management • Project stakeholders and Governance • Project team • Project Life cycles
• Part II• Details on PMP, CAPM exams• Test
PROJECT MANAGEMENT ESSENTIALS
Organisational influences
Organisational Structure
• The organizational culture, style and structure influences how projects are managed
• Code of Conduct• Risk Appetite• Regulations and Policies• Leadership styles & hierarchies• Working Hours
• The Project Managers authority is guided by the above factors
• The organization type will influence the project greatly
Projectized
Strong
Matrix
Bala
nce
d
Matrix
Weak
Matrix
Functi
onal
ProjectManagerAuthority
PROJECT MANAGEMENT ESSENTIALS
PROJECT MANAGEMENT ESSENTIALS
PROJECT MANAGEMENT ESSENTIALS
PROJECT MANAGEMENT ESSENTIALS
PROJECT MANAGEMENT ESSENTIALS
PROJECT MANAGEMENT ESSENTIALS
PROJECT MANAGEMENT ESSENTIALS
ORGANIZATIONAL PROCESS ASSETS
ENTERPRISE ENVIRONMENTAL FACTORS
ORGANIZATIONAL PROCESS ASSETS
• They include • plans, • processes, • procedures, • lessons learned • knowledge bases etc.
that can be used to manage or govern the project Key to most planning processes
• Examples• Initiating and Planning – Guidelines, policies
(organizational, product, project), IM, checklists etc.• Monitoring & Controlling – Change Control Procedures,
Financial procedures, Issue logging and resolution, Risk Control procedures etc.
• Closing – Project closure guidelines, sign offs, lessons learned, audit reports etc.
ENTERPRISE ENVIRONMENTAL FACTORS
• Conditions that influence, control or guide the project • Inputs to most planning processes• Examples: -
• Organisational Culture, structure and governance• Regulatory / Government Norms• Infrastructure• Existing Human Resources (skills, discipline, knowledge
etc)• Authority Matrices• Political and Economic climate• Project Management Information Systems
PROJECT STAKEHOLDERS AND GOVERNANCE
PROJECT STAKEHOLDERS
PROJECT STAKEHOLDERS
• Stakeholders include but are not limited to: -• Sponsors• Project Team• Customers or Users• Sellers• Business Partners / Advisors / Consultants• Organisations• Functional Managers• Financial Institutions, Investors• Regulators etc.
PROJECT GOVERNANCE
• An oversight function aligned with the organisations processes
• Provides a framework for • decision making, • roles and responsibilities • Accountabilities• Escalations etc.
• Encompasses the project lifecycle• Provides the tools, structure, processes, authorities and tools
to manage the project• Project Governance is separate from corporate governance
PROJECT LIFECYCLE
PREDICTIVE LIFECYCLE
ITERATIVE AND INCREMENTAL LIFECYCLE
End of Part I
PMP• Prerequisites
• Secondary degree (high school diploma, associate’s degree or the global equivalent)
• 7,500 hours leading and directing projects• 35 hours of project management education
• OR• Four-year degree• 4,500 hours leading and directing projects• 35 hours of project management education
• Price• Member: US$405.00• Non-member: US$555.00
• Exam• The certification exam has 200 multiple-choice questions, and
you have four hours to complete it.• To maintain your PMP, you must earn 60 professional
development units (PDUs) every three years.
CAPM
• Prerequisites• Secondary degree (high school diploma, associate’s degree or
the global equivalent)• 1,500 hours of project experience• OR• 23 hours of project management education completed by the
time you sit for the exam• Price
• Member: US$225.00• Non-member: US$300.00
• Exam• The certification exam has 150 multiple choice questions, and
you have three hours to complete it.• To maintain your CAPM, you must retake the exam every five
years.
• Other Certifications• PgMP – Program Management Professional• PMI – ACP – Agile Certified Professional• PMI – PBA – Project Business Analysis
TEST