Project Management Fundamentals

13/8/2005

Presented by
Niladri Mallick Choudhuri PMP
Project Manager
© ITC Infotech India Ltd ITC Infotech India Ltd.
 A Project

ƒ Organizations perform work

ƒ Could be classified into either operations or projects
ƒ Similar Characteristics - People perform the activities; Constrained by limited
resources; Planned, executed, and controlled
ƒ Differences - Operations are ongoing and repetitive whereas Projects are temporary
and unique
ƒ A project is a temporary endeavor undertaken to create a unique product
or service
ƒ Projects - may involve a single person or many thousands, their duration ranges from
a few weeks to a few years, may involve a single unit of one organization or may have
cross-organizational boundaries
 Project Management

ƒ Project management is the application of knowledge, skills, tools, and

techniques to project activities to meet project requirements
ƒ Accomplished through the use of the following 5 processes: Initiation, Planning,
Execution, Controlling and Closure
ƒ Management of various activities : Competing demands for scope, time, cost, risk, and
quality; Managing expectations of stakeholders and Identifying requirements
ƒ “The more you know about your project, the better you are able to manage it“ - many
of the processes are iterative in nature - existence of and the necessity for progressive
elaboration throughout the PLC
 Trade Off

ƒ Time, Cost, Scope & Quality

constraints
ƒ Decrease in duration Vs Cost,
Scope & Quality
ƒ Decrease in Cost Vs Time, Scope &
Quality

Co
me

ƒ Increase in scope Vs Time, Cost &

st
Ti

Quality Quality

Scope

“Adequate trade-offs with respect to time, cost, scope

& quality are the three essential elements of any
successful project manager”
 PM Knowledge Areas

ƒ Project Integration Management

Project plan development, execution, and integrated change control.
ƒ Project Scope Management
Initiation, scope planning, scope definition, scope verification, and scope change
control.
ƒ Project Time Management
Activity definition, activity sequencing, activity duration estimating, schedule
development, and schedule control.
ƒ Project Cost Management
Resource planning, cost estimating, cost budgeting, and cost control.
ƒ Project Quality Management
Quality planning, quality assurance, and quality control
 PM Knowledge Areas (contd..)

ƒ Project Human Resource Management

Organizational planning, staff acquisition, and team development.
ƒ Project Communications Management
Communications planning, information distribution, performance reporting, and
administrative closure.
ƒ Project Risk Management
Risk management planning, risk identification, qualitative risk analysis,
quantitative risk analysis, risk response planning, and risk monitoring and
control.
ƒ Project Procurement Management
Procurement planning, solicitation planning, solicitation, source selection,
contract administration, and contract closeout.
 Project Characterizations

ƒ Project Phases:
ƒ Each phase marked by completion of one or more deliverables
ƒ Helps in establishing the desired management control
ƒ Conclusion of a project phase is marked by a review of both key deliverables
and project performance to date

ƒ Project Life Cycle:

ƒ Serves to define the beginning and the end of a project
ƒ Will determine which transitional actions at the beginning and the end of the
project are included and which are not
ƒ Will define what technical work should be done in each phase and who
would be involved
 Project Characteristics

ƒ Cost and staffing levels:Low at the start, higher toward the end, and drop rapidly as the
project draws to a conclusion

ƒ Probability of successfully completion: Lowest at start, and hence risk and uncertainty
are highest.

ƒ Ability of the stakeholders to influence the final characteristics: Highest at the start
and gets progressively lower as the project continues
 Key General Mgmt. Skills

ƒ Leading:
Establishing direction, Aligning people, Motivating and inspiring

ƒ Communication:
Written and oral listening and speaking, Internal and external interactions,
Formal and informal interactions, Vertical and horizontal
Sender-receiver models, Choice of media, Writing style, Presentation
techniques, Meeting management techniques

ƒ Negotiating:
Scope, cost, and schedule objectives; Changes to scope, cost, or schedule ;
Contract terms and conditions; Assignments; Resources
 Key General Mgmt. Skills

ƒ Problem Solving:
ƒ Involves a combination of problem definition and decision-making
ƒ Distinguishes between causes and symptoms
ƒ Need not necessarily be technical
ƒ Influencing the Organization:
ƒ Ability to “get things done”
ƒ Requires understanding of both formal and informal structures of the
organizations
ƒ Understanding of the mechanics of power and politics
ƒ Understanding cross-cultural factors influencing the software industry
 Process & Customizations

ƒ Can be organized into five groups of one or more processes

ƒ Initiating: authorizing the project or phase
ƒ Planning: defining and refining objectives and selecting the best of the
alternative courses of action
ƒ Executing: coordinating people and other resources to carry out the plan
ƒ Controlling: monitoring and measuring progress to identify variances from
plan so that corrective action can be taken
ƒ Closing: formalizing acceptance of the project or phase and bringing it to an
orderly end.
 Mapping the Process

Initiating Planning Exe cuting Controlling Closing

Proje ct Integration Project Plan
Project Plan Execution Integrated Change Control
Manage ment Development
Scope Planning Scope Verification
Proje ct Scope Manage ment Initiation
Scope Definition Scope Change Control

Activity Definition
Activity Sequencing
Proje ct Time Manage ment Activity Duration Schedule Control
Estimation
Schedule Development
Resource Planning
Proje ct Cost Manageme nt Cost Estimating Cost Control
Cost Budgeting
Proje ct Quality
Quality Planning Quality Assurance Quality Control
Manage ment

Proje ct Human Resource Organizational Planning

Team Development
Manage ment Staff Acquisition
Proje ct Communications Communications
Information Distribution Performance Reporting Administrative Closure
Manage ment Planning
Risk Management
Planning
Risk Identification
Qualitative Risk Risk Monitoring and
Proje ct Risk Manageme nt Control
Analysis
Quantitative Risk
Analysis
Risk Response Planning
Procurement Planning Solicitation

Proje ct Procureme nt
Solicitation Planning Source Selection Contract Closeout
Manage ment
Contract Administration

People Related
Undermined motivation
Weak personnel
Uncontrolled problem employees Insufficient planning
Adding people to a late project
Customer-Developer friction
Unrealistic expectations
Politics over substance
Wishful thinking
Lack of effective project
sponsorship
Lack of stakeholder buy-in
Lack of user input
Classical Mistakes
Process Related Product Related Technology Related
Optimistic schedules Requirements gold-plating Silver-bullet syndrome
Overestimated savings from new
Insufficient risk management Gilding the lily
tools and methods
Feature creep Fad warning
Abandonment of plan under
Developer gold-plating Switching tools in mid-project
pressure
Lack of automated source-code
Wasted time during fuzzy front end Beware the pet project
control
Shortchanged upstream activities Push-me, pull-me negotiation
Inadequate design Research-oriented development
Shortchanged quality assurance
Insufficient management controls
Omitting necessary tasks from
estimates
Planning to catch-up later
 Standards & Certifications

ƒ PMP Project Management Professional

ƒ PMI established in 1969
ƒ PMBOK® Guide
ƒ approved by ANSI

ƒ PRINCE PRojects IN Controlled Environments

ƒ de facto standard used extensively by the UK Government
ƒ Registered trademark of OGC Office of Government Commerce, UK
 Dash Boards- PMO’s Office???

A D
BUDGET SCHEDULE RISKS
B E F F
C
# of Risks

BCWS_________ Original Schedule to Date________

High

Current State Med

Current State
On track Behind On track Behind Low

Low Med High

Impact

DELIVERABLES RESOURCES ISSUES

% of Deliverables
# of Resources Percent
# of issues % of issues
Total Due to Date
Wading Turnover
Completed on Time
Treading Overtime
Completed Late
Drowning Vacancies
Total Overdue
 Purpose of PMO’s Office

ƒ Provide efficient support on project mgmt. efforts

ƒ Essential component of future success of an organization
ƒ Provide an infrastructure for tools and expertise in the area of project
management
ƒ Maintains a clearinghouse for project management best practices
ƒ Provides an infrastructure for current project managers to deal with
contingencies
 Goals…Objectives…Targets

ƒ Goal : To set industry standards by way of achieving excellence

ƒ Objectives: To improve divisional management performance
ƒ Target:
ƒ Finish current projects on time and within budget
ƒ Attain formalized and consistent project management practices throughout
the organization
ƒ Reduce project overruns
ƒ Improve resource allocation procedures
ƒ Increase customer satisfaction
ƒ Increase the delivery speed of projects
ƒ PMO provides archival information to the project manager
 Focus Area of PMO

ƒ Project focused
ƒ Collecting the metrics and acting upon them to improve the project
management and product delivery processes.
ƒ PMO focused
ƒ Collecting metrics that show how effective the PMO is at delivering its
services.
ƒ Business value focused
ƒ Metrics showing project management value estimated at the organizational
level
ƒ Others summarized as a common set of metrics that are reported by each
project team.
ƒ Organization scorecard focused
ƒ Provides a sense for whether the organization is meeting its objectives for
the year
 Functionalities of PMO

ƒ Data Clearinghouse
ƒ Visibility Center
ƒ Schedule and Record Meetings
ƒ Budget and Cost Monitoring
ƒ Documentation
ƒ Materials and Equipment
ƒ Team Building
ƒ Communications
ƒ Problem Solving
ƒ Staffing
ƒ Process Support
ƒ Project Newsletter
 Stored Information at PMO

ƒ Project portfolio management

ƒ Best practices in project management
ƒ PM standards and methods
ƒ Project performance archives
ƒ Consulting
ƒ Mentoring
ƒ Training
ƒ Quantitative objectives for continuously improving enterprise project management
processes
Thank You
Appendix

Project Plan Development
Other planning outputs
Historical information
Input Organizational policies
Constraints
Assumptions
Project planning methodology
Stakeholder skills and
knowledge
Project management
Tools & information system (PMIS)
Techniques Earned value management
(EVM)
Project plan
Output Supporting detail
Managing Integration
Project Plan Execution
Project plan
Supporting detail
Organizational policies
Preventive action
Corrective action
General management skills
Product skills and knowledge
Work authorization system
Status review meetings
Project management information
system
Organizational procedures
Work results
Change requests
Integrated Change
Control
Project plan
Performance reports
Change requests
Change control system
Configuration management
Performance measurement
Additional planning
Project management
information system
Project plan updates
Corrective action
Lessons learned
 Managing Scope

Initiation Scope Planning Scope Definition Scope Verification Scope Change Control
Product description Product description Scope statement Work results Work breakdown structure
Strategic plan Project charter Constraints Product documentation Performance reports
Input Project selection criteria Constraints Assumptions Work breakdown structure Change requests
Historical information Assumptions Other planning outputs Scope statement Scope management plan
Historical information Project plan

Work breakdown structure Scope change control

Project selection Methods Product analysis Inspection
templates System
Tools &
Techniques Expert judgment Benefit/cost analysis Decomposition Performance measurement
Alternatives identification Additional planning
Expert judgment
Project charter Scope statement Work breakdown structure Formal acceptance Scope changes
Project manager
Supporting detail Scope statement updates Corrective action
Output identified/assigned
Constraints Scope management plan Lessons learned
Assumptions Adjusted baseline
 Managing Time

Activity Duration
Activity Definition Activity Sequencing Schedule Development Schedule Control
Estimation
Work breakdown structure Activity list Activity list Project n/w diagrams Project schedule
Scope statement Product description Constraints Activity duration estimates Performance reports
Historical information Mandatory dependencies Assumptions Resource Req Change requests
Constraints Discretionary dependencies Resource requirements Resource pool description Schedule management plan
Assumptions External dependencies Resource capabilities Calendars
Input
Expert judgment Milestones Historical information Constraints
Identified risks Assumptions
Leads and lags
Risk Mgmt plan
Activity attributes
Precedence diagramming Schedule change control
Decomposition Expert judgment Mathematical analysis
method (PDM) system
Arrow diagramming method
Templates Analogous estimating Duration compression Performance measurement
(ADM)
Conditional diagramming Quantitatively based
Simulation Additional planning
Tools & Techniques methods durations
Project management
Network templates Reserve time (contingency) Resource leveling heuristics
software
Project management
Variance analysis
software
Coding structure
Activity list Project network diagrams Activity duration estimates Project schedule Schedule updates
Supporting detail Activity list updates Basis of estimates Supporting detail Corrective action
Output Work breakdown structure
Activity list updates Schedule Mgmt plan Lessons learned
updates
Resource req. updates

Resource Planning
Work breakdown structure
Historical information
Scope statement
Resource pool description
Input Organizational policies
Activity duration estimates
Expert judgment
Alternatives identification
Tools & Techniques PM software
Resource requirements
Output
Cost Estimating
Work breakdown structure
Resource requirements
Resource rates
Activity duration estimates
Estimating publications
Historical information
Chart of accounts
Risks
Analogous estimating
Parametric modeling
Bottom-up estimating
Computerized tools
Other cost est. methods
Cost estimates
Supporting detail
Cost management plan
Managing Cost
Cost Budgeting Cost Control
Cost estimates Cost baseline
Work breakdown structure Performance reports
Project schedule Change requests
Risk management plan Cost management plan
Cost budgeting tools and techniques Cost change control system
Performance measurement
Earned value management (EVM)
Additional planning
Computerized tools
Cost baseline Revised cost estimates
Resource Planning Budget updates
Corrective action
Estimate at completion Project
closeout Lessons learned
 Managing Quality

Quality Planning Quality Assurance Quality Control

Quality policy Quality management plan Work results
Results of quality control
Scope statement Quality management plan
measurements
Input Product description Operational definitions Operational definitions
Standards and regulations Checklists
Other process outputs

Benefit/cost analysis Quality planning tools and techniques Inspection

Benchmarking Quality audits Control charts

Tools & Flow-charting Pareto diagrams
Techniques Design of experiments Statistical sampling
Cost of quality Flow-charting
Trend analysis
Quality management plan Quality improvement Quality improvement
Operational definitions Acceptance decisions
Output Checklists Rework
Inputs to other processes Completed checklists
Process adjustments
 Managing HR

Organizational Planning Staff Acquisition Team Development

Project interfaces Staffing management plan Project staff
Staffing requirements Staffing pool description Project plan
Input Constraints Recruitment practices Staffing management plan
Performance reports
External feedback
Templates Negotiations Team-building activities
Human resource practices Pre-assignment General management skills
Tools & Reward and recognition
Organizational theory Procurement
Techniques systems
Stakeholder analysis Collocation
Training
Role and responsibility
Project staff assigned Performance improvements
assignments
Input to performance
Output Staffing management plan Project team directory
appraisals
Organization chart
 Managing Communications

Communications Administrative
Information Distribution Performance Reporting
Planning Closure
Performance
Communications
Work results Project plan measurement
requirements
documentation
Input Communications management
Communications technology Work results Product documentation
plan
Constraints Project plan Other project records Other project records
Assumptions
Performance reporting
Communications skills Performance reviews
tools and techniques
Information retrieval systems Variance analysis Project reports
Tools &
Stakeholder analysis Information distribution methods Trend analysis Project presentations
Techniques
Earned value analysis
Information distribution tools
and techniques
Communications
Project records Performance reports Project archives
management plan
Output Project reports Change requests Project closure
Project presentations Lessons learned

Ris k Manage me nt
Planning
Project charter
Organization’s ris k mgmt.
policies
Defined roles -
respons ibilities
Stakeholder ris k tolerances
Input Template for the org’s ris k
mgmt. plan
Work breakdown structure
(WBS)
Planning meetings
Tools & Te chnique s
Risk management plan
Output
Ris k Ide ntification Qualitative Ris k
Ris k management plan Ris k mgmt plan
Project planning outputs Identified risks
Ris k categories Project s tatus
His torical information Project type
Data precis ion
Scales of probability and
impact
Ass umptions
Documentation reviews Ris k probability and impact
Information-gathering Probability/impact ris k
techniques rating matrix
Checklists Project ass umptions testing Decis ion tree analysis
As sumptions analysis Data precis ion ranking
Diagramming techniques
Overall ris k ranking for the Prioritized list of quantified
Ris ks
project
Triggers Lis t of prioritized risks
Lis t of risks for additional cos t and time objectives
Inputs to other proces ses
analys is and management
Trends in qualitative ris k
analys is results
Managing Risk
Quantitative Ris k
Analys is
Risk management plan
Identified ris ks
Lis t of prioritized ris ks
Lis t of risks for additional
analysis and management
Historical information
Expert judgment
Other planning outputs
Interviewing
Sens itivity analysis
Simulation
ris ks
Probabilis tic analysis of the
project
Probability of achieving the
Trends in quantitative risk
analysis results
Ris k Re s pons e
Planning
Risk management plan
List of prioritized risks
Risk ranking of the project
Prioritized list of quantified
risks Probabilistic analysis
of the project
Probability of achieving the
cost and time objectives
List of potential res ponses
Risk thresholds
Risk owners
Common ris k causes
Trends in qualitative and
quantitative ris k analysis
results
Avoidance
Transference
Mitigation
Acceptance
Risk response plan
Res idual ris ks
Secondary risks
Contractual agreements
Contingency reserve
amounts needed
Inputs to other process es
Inputs to a revised project
plan
 Managing Procurement

Procurement Contract
Solicitation Planning Solicitation Source Selection Contract Closeout
Planning Administration
Procurement Contract
Scope statement Procurement documents Proposals Contract
management plan documentation
Product description Statement(s) of work Qualified seller lists Evaluation criteria Work results
Procurement resources Other planning outputs Organizational policies Change requests
Input Market conditions Seller invoices
Other planning outputs
Constraints
Assumptions
Contract change control
Make-or-buy analysis Standard forms Bidder conferences Contract negotiation Procurement audits
system
Tools & Expert judgment Expert judgment Advertising Weighting system Performance reporting
Techniques
Contract type selection Screening system Payment system
Independent estimates
Procurement
Procurement documents Proposals Contract Correspondence Contract file
management plan
Formal acceptance
Output Statement(s) of work Evaluation criteria Contract changes
and closure
Statement of work
Payment requests
updates