Chapter # 1

INTRODUCTION
1.1 – PURPOSE OF THE PMBOK GUIDE
 Objective is to identify the knowledge, processes, skills, tools & techniques that can
influence the project success.
 Objective is to identify good practices which help in project success.
 PMBOK is a guide to document these good practices from the entire Project Management
Body of Knowledge.
 Volunteer across the world develop PMBOK guide.
 PMI take care of development of PMBOK guide.
 Another objective is to develop a common vocabularies and terminologies for project
management all around the world.
 PMBOK is a guide and not a methodology.
 PMI standards updated every 5 years.
 PMBOK standards updated every 4 years.

1.2 - WHAT IS PROJECT

 Temporary endeavor to create unique product, services or result.

 All projects are temporary.
 Temporary doesn't mean short in duration (it can be 10 or 20 years project).
 Project can be successful or terminated (temporary in nature).
 All projects are progressively elaborative (step by step; more detail with time).
 Temporary, Unique Product, Progressively Elaborative.
 Program is a group of related project, managed them together when managing them
individually is not benefited.
 Portfolio is a collection of projects and program to gain strategic objectives.

1.3 - WHAT IS PROJECT MANAGEMENT

 Application of knowledge (knowing), skills (doing), tools & technique to project activities meet
project requirements. (knowledge you gain through education while skills you gain through
practical experience)
 Few tools of project management are: CPM, Earn Value Management (EVM), Flowchart,
Inspection etc....
 Project Management can be achieve through the application of integration of 47 Project
Management Processes under 5 Process Groups (Initiating, Planning, Executing, Monitoring &
Control, Closing)
 Managing a project basically is balancing the competing demands/constraints such as cost,
scope, time, quality, resources, risk.
1.4 - RELATIONSHIP AMONG PORTFOLIO, PROGRAM, PROJECT & ORGANIZATIONAL PROJECT
MANAGEMENT

 PROJECT MANAGEMENT: Application of knowledge (knowing), skills (doing), tools & technique
to project activities meet project requirements. (knowledge you gain through education while
skills you gain through practical experience)
 PROGRAM MANAGEMENT: Application of knowledge (knowing), skills (doing), tools & technique
to meet program requirements. (knowledge you gain through education while skills you gain
through practical experience). Managed related projects together when managing them
individually is not benefited.
 PORTFOLIO MANAGEMENT: Centralized management to achieve strategic objectives consist of
projects and programs.
 ORGANIZATIONAL PROJECT MANAGEMENT: Strategic execution framework which utilizes
project, program and portfolio as well as organizational enablers (culture, existing structure,
technology and human resources.
 Project, Program, Portfolio all linked with strategic objectives.
 Portfolio management deals with organizational investment, return on investment etc....

1.4.1 - PROGRAM MANAGEMENT

 Program consist of related projects and subprogram.

 Program Management focuses on project interdependencies.

1.4.2 - PORTFOLIO MANAGEMENT

 Portfolio is a collection of projects, programs, sub portfolio and operations.

 Prime purpose of portfolio management is to achieve strategic objectives.
 Projects and program in portfolio can and cannot be related to each other but all drive towards
to get strategic organizational goals.

1.4.3 - PROJECTS & STRATEGIC PLANNING

 Projects are mean to achieve strategic objectives.

1.4.4 - PROJECT MANAGEMENT OFFICE (PMO)

 PMO is a physical department in your organization to improve the way you manage project.
 Projects handle by PMO may not be related to each other.
 PMO also known as Program Management Office or Program Office.
 PMO also provides support & training to PMs
 PMO also centrally monitor and track risks within all projects

Type of PMO Structures in Organization:

  Supportive Role
 Controlling Role
 Directive Role

Primary Function of PMO:

 Shearing Resources
 Develop PM Methodologies
 Coaching & Training
 PM Compliance Audit
 Coordinate Communication
 Implement organization wide project policies, procedures and practices

1.5 - RELATIONSHIP BETWEEN PROJECT MANAGEMENT, OPERATIONS MANAGEMENT &

ORGANIZATIONAL STRATEGY

Project Vs Operations

 All projects are temporary and create unique product while All operations are continues and
create standard/repetitive product.
 Projects & Operations have many same characteristics like both have resources, budget, scope,
quality, risks etc.
 Projects & Operations both drive towards to gain strategic objectives

1.5.1 - OPERATIONS & PROJECT MANAGEMENT

 Project management can be run in Operation management. there can be several projects during
operations.

1.5.1.1 - OPERATIONS MANAGEMENT

 OM manages ongoing production of standard goods & services of organization.

 OM manages system and process that produces standard goods & services.
 Operations is one of the primary function of business.

1.5.1.2 - OPERATIONAL STAKEHOLDERS IN PROJECT MANAGEMENT

 Projects are running within the organization which runs through operations, therefore
operational stakeholders have significant importance for organizational success.

1.5.2 - ORGANIZATIONS & PROJECT MANAGEMENT

 Organization is larger than the project

 Organizational policies will guide project management policies towards achieving strategic
objectives.
  Project management should and must re-align its goals with organizational strategies when
required.

1.5.2.1 - PROJECT-BASED ORGANIZATIONS (PBOs)

 PBOs are organization which adopt organizational structure to carry out projects.

1.5.2.2 - LINK BETWEEN PROJECT MANAGEMENT & ORGANIZATIONAL GOVERNANCE

 Project should support the organizational governance and should align with the organizational
policies/strategies and goals.

1.5.2.3 - THE RELATIONSHIP BETWEEN PROJECT MANAGEMENT & ORGANIZATIONAL STRATEGY

 Organizational strategy should guide and provide support to project management.

 Communication between stakeholders during conflict arise is very necessary.

1.6 - BUSINESS VALUE

 Concept that define entire value of business (not only monetary value, but tangible as well as
intangible values)
 Projects, program and portfolio helps business to develop their good value.
 Business values give directions to projects, program and portfolios for the business strategies.

1.7 - ROLE OF THE PROJECT MANAGER

 PM role is different than the functional or operation manager

 PM is a person assign to successfully complete the project.

1.7.1 - RESPONSIBILITIES & COMPETENCIES OF THE PROJECT MANAGER

 PM should be proficient in tools, techniques, subject matters and in general management skills.
 PM should have knowledge (theory), performance (practical) and personal (ethics and moral).

1.7.2 - INTERPERSONAL SKILLS OF A PROJECT MANAGER

(see Appendix X3) - - important from exam point of view

Effective PMs should have following skills:

 Leadership
 Motivation
 Team Building
 Communication
 Decision Making
1.8 - PROJECT MANAGEMENT BODY OF KNOWLEDGE

 PMBOK guide contains standards for project management, project of any size and nature.
 This standard is limited to managing individual projects
 For managing programs or portfolios, there are separate standards such as Program
Management Body of Knowledge or Portfolio Management Body of Knowledge.

End of Chapter