Project Management

What is a Project?
 A project is a sequence of unique, complex, and connected ac vi es having
one goal or purpose and that must be completed by a specific me, within
budget, and according to specifica on.
Project Parameters
Project parameters refer to the specific details and constraints that define a project
and guide its execu on. It helps to ensure that the project stays on track and meets
its objec ves.
 Scope: This refers to the specific goals and objec ves of the project. The
scope also defines the boundaries of the project and what will not be
included.
 Quality: defines the standards and level of excellence required for the
project. or excellence that the project deliverables must meet
 Cost: This refers to the amount of money allocated for the project, including
the cost of materials, labor, and any other expenses. It also includes the
financial constraints that the project must operate within.
 Time: This refers to the schedule for the project, including the start and end
date, as well as any key milestones that must be met along the way.
 Resource Availability: This refers to the people, equipment, and other assets
that will be required to complete the project. This includes both internal
resources, such as staff, as well as external resources, such as contractors or
vendors.
 Scope/Quality Triangle

use the scope triangle to

 Build a problem escala on strategy
 To structure the Project Impact Statement

What is creep?
Creep refers to changes, con nuous or uncontrolled situa on in a project, at any
point a er the project begins.
 Scope Creep: uncontrolled expansion of the project scope, which can lead to
increased costs, delays, and reduced quality.
 Hope Creep: Hope creep is when project team members are ge ng behind
schedule but they report that they are on me, hoping to catch up.
 Effort Creep: Effort creep is when one of your team members makes a huge
effort on a task that is nearly done, but cannot finish it. Effort Creep occurs
when a team member does not make progress in propor on to the effort he
or she puts into the project.
 Feature Creep: refers to when you add excessive features to a product that
make it too complicated or difficult to use
 Schedule creep: Extension of the project schedule beyond the original
comple on date, which can be caused by delays or addi onal work being
added to the project.
  Cost creep: Increase in project costs beyond the original budget, which can
be caused by unexpected expenses or addi onal work being added to the
project.
 Quality creep: Decrease in the quality of the project deliverables, which can
be caused by a lack of clear project objec ves, poor communica on among
project stakeholders, or a lack of oversight and control.
 Requirements creep: Uncontrolled expansion of project requirements, which
can lead to scope creep, schedule creep, and cost creep.
 Staffing creep: Increase in the number of project team members, which can
lead to increased costs and reduced efficiency.

Classifica on by Project Characteris cs Classifica on by Project Type

 Risk  So ware installa on
 Business Value  Recrui ng and hiring
 Dura on  Set-up hardware in a field office
 Complexity  Vendor solicita on, evalua on
 Technology used and selec on
 Number of departments affected  Upda ng a corporate procedure
 Cost  Applica on systems development

What is Project Management

 Project management is the process of planning, organizing, and managing
resources to bring about the successful comple on of a specific project
Project management life cycle (PMLC)

Five Project Management Process Groups

 Scoping Process Group: Develop and gain approval of a general statement of
the goal and business value of the project.
 Planning Process Group: Iden fy work to be done and es mate me, cost
and resource requirements and gain approval to do the project.
 Launching Process Group: Recruit the team and establish team opera ng
rules.
 Monitoring & Controlling Process Group: Respond to change requests and
resolve problem situa ons to maintain project progress.
 Closing Process Group: Assure a ainment of client requirements and install
deliverables.
Nine Project Management Knowledge Areas
 Integra on Management: This knowledge area deals with the overall
management and coordina on of the project, including developing a project
charter, crea ng a project plan, and managing project changes.
 Scope Management: This knowledge area deals with defining and managing
the project's goals and objec ves, as well as the deliverables that will be
produced as a result of the project.
 Time Management: This knowledge area deals with planning, scheduling,
and managing the project's meline, including iden fying and managing
project milestones.
 Cost Management: This knowledge area deals with managing project
expenses and ensuring that the project stays within budget.
 Quality Management: This knowledge area deals with ensuring that the
project deliverables meet the required level of quality, including the use of
quality management tools and techniques.
 Resource Management: This knowledge area deals with managing the
project's resources, including people, equipment, and materials.
 Communica on Management: This knowledge area deals with the
management of project informa on, including the development of a
communica on plan and the use of communica on tools and techniques.
 Risk Management: This knowledge area deals with iden fying, assessing,
and managing poten al risks to the project, including the development of a
risk management plan.
 Procurement Management: This knowledge area deals with managing the
acquisi on of goods and services from external sources, including the
development of a procurement plan and the use of procurement tools and
techniques. 3party service handling
Scope management
 includes the process involved in defining and controlling "what is" or " is not"
included in the project.
 In scope management we have to create a requirement break down
structure.(RBS)
 It is a chart which break the requirement in order to iden fy main
requirements and their sub requirements.

scope management plan is a document that includes descrip ons of how the team
will prepare the project scope statement, create the WBS, verify comple on of the
project deliverables and control requests to change the project scope.
A project overview statement is a document that includes a brief descrip on of the
project, its goals and objec ves, and its expected outcomes. Purpose of the Project
Overview Statement. One-page descrip on of project. this creates in scope
management
 A general statement of the project
 A reference for the planning team
 A decision aid for the project
 To get management approval to plan the project
Content of POS
Expert Judgment : The Delphi technique, also known as the Delphi method or
Delphi forecas ng, is a forecas ng or es ma ng method based on a discussion by
a group of experts.
Project quality management process
 Quality planning: involves iden fying the quality standards that a project
must meet, and then developing a plan for ensuring that those standards are
met.
 Quality assurance: is the process of verifying that the project will meet the
quality standards established during the planning phase. It is a preven ve
measure that focuses on detec ng and correc ng defects in the project's
processes and deliverables before they can affect the final product. this
includes
 Quality Audits
 Process Analysis
 Project Quality Management Tools

 Quality control: Monitor project performance to determine compliance to

quality standards and how to eliminate non-compliance. This will be
accomplished by using project management tools, templates and
processes.
 Risk management -life cycle

risk iden fica on

risk assessment

risk mi ga on

risk monitoring &

control

 Risk iden fica on is the process of iden fying poten al risks that could nega vely
impact the successful comple on of a project.
 Technical risks: technological risk
 Project management risks: poor management
 Organiza onal risks: Includes supportability risks, lack of priori za on of
projects
 External risks
 Risk assessment is the process of evalua ng iden fied risks in terms of their
likelihood and poten al impact. This involves determining the probability of a risk
occurring and the poten al consequences if it does occur. The goal of risk
assessment is to priori ze risks so that the project team can focus their efforts on
managing and controlling the most significant risks.
 Risk mi ga on is the prac ce of reducing the impact of poten al risks by
developing a plan to manage, eliminate, or limit setbacks as much as possible
  Risk mi ga on is the process of implemen ng strategies to reduce the likelihood
or impact of iden fied risks. This includes taking steps to prevent the risk from
occurring or to minimize the damage if it does occur.
 Risk monitoring & control is the process of keeping track of the iden fied risk,
monitoring residual risks and iden fying new risk, ensuring the execu on of risk
plans, and evalua ng their effec veness in reducing risk.

Procurement Management – The Life Cycle

 Procurement management is the process of acquiring goods, services, or works

from an external source. This includes iden fying the need for goods or services,
developing procurement documents, solici ng bids or proposals, evalua ng bids
or proposals, selec ng a vendor or contractor, and managing the contract with the
vendor or contractor.

 Vendor Solicita on: is the process of iden fying and contac ng poten al
vendors for goods and services needed for a project. Prepare & distribute
Request for Proposal (RFP). Develop RBS
 Vendor Evalua on: It involves evalua ng the bids or proposals from suppliers,
comparing them to the organiza on's requirements, and determining which
suppliers are best suited to provide the goods or services needed.
 Vendor Selec on: It involves selec ng the most qualified supplier(s) from the
evaluated list, based on the organiza on's specific needs and requirements
 Vendor Contrac ng: It involves nego a ng and finalizing agreements with
suppliers.
 Vendor Management: It involves managing the rela onship with suppliers,
monitoring supplier performance, and ensuring that the organiza on's needs
are met.

Tools, Templates & Processes used to Scope a Project

 Condi ons of Sa sfac on  Valida ng Business Cases
 Project Scoping Mee ng  Procurement Management
 Requirements Gathering  Outsourcing
 Diagramming Business Processes  Project Overview Statement
 Prototyping  Approval to Plan the Project

Project Scoping Mee ng Deliverables

 COS: Condi ons of Sa sfac on
 Requirements Document
 Best-fit project management life cycle (PMLC)
 POS: Project Overview Statement
RBS
 Requirements breakdown involves crea ng a hierarchical tree-like structure that
outlines the requirements of a project
Risk in a project
 Technological
 New to the company
 Obsolescence
 Environmental
 Management change
 Staff turnover
 Interpersonal
 Working rela onships
 Cultural
 Fit to the company
 Causal Rela onships
 Will the solu on solve the problem

Project planning
The Importance of Planning
 Planning Reduces Uncertainty
 Planning Increases Understanding
 Planning Improves Efficiency
Planning Session Deliverables
 Project Defini on Statement  Task dura on es mates
 Work Breakdown Structure
 Resource requirements
 Project proposal
 Background  Project network schedule
 Objec ve
 Task Schedule
 Overview of approach to be taken
 Detailed statement of work  Resource assignments
 Time and cost summary  Project Notebook
 Appendices
WBS
 The Work Breakdown Structure (WBS) is a hierarchical descrip on of all of
the work that must be done to meet the needs of the client.
 WBS build as top-down and bo om-up approach
WBS is important as
 Thought process tool
 Architectural design tool
 Planning tool
 Project status repor ng tool

Network diagram

Task
Slack

ES Duration LF
What is a cri cal task?
 Tasks that cannot be delayed without affec ng the project finish date
What makes a Project Team effec ve?
 Quality
 Flexibility
 Coordina on & Coopera on
 Member sa sfac on
 Member development
 Possesses needed skills and competencies
 Produc vity
Project Defini on Statement – Purpose
 As a basis for con nued project planning
 To clarify the project for the project team
 As a reference that keeps the team focused in the right direc on
 As an orienta on for new team members
 As a method for discovery by the team
Five Steps to Solving a Problem
1. Define the problem & the owner
2. Gather relevant data and analyze causes
3. Generate ideas
4. Evaluate and priori ze ideas
5. Develop an ac on plan
Establishing Team Opera ng Rules Project Mee ngs

 Problem solving  Daily status mee ngs

 Problem resolu on mee ngs
 Decision making
 Project review mee ngs
 Conflict resolu on
 Consensus building
 Brainstorming
 Team mee ngs
Change request
 A change request is a formal proposal for an altera on to some product or system. In
project management, a change request o en arises when the client wants an addi on or
altera on to the agreed-upon deliverables for a project.
 project impact statement is a short statement that explains the significance of your
project. An impact statement is used to inform and convince different stakeholders,
including people in charge of alloca ng funds.

 A Work Package is a brief descrip on at the subtask level that describes how a task will be
completed. It is a primi ve project plan.

Tools, Templates & Processes Used to Monitor & Control

 Current period reports  Gan charts

 Cumula ve reports  Burn charts

 Excep on reports  Milestone trend charts

 Stoplight reports  Integrated milestone trend charts and earned value analysis

 Variance reports  Project status mee ngs

 Earned value analysis  Problem escala on strategies

5 project status reports

 Current period reports: These reports provide an update on the project's progress for a
specific period of me, usually a week or a month. They typically include informa on on
completed tasks, remaining tasks, and any issues or risks that need to be addressed.

 Cumula ve reports: These reports provide a cumula ve view of the project's progress
to date. They typically include informa on on completed tasks, remaining tasks, and any
issues or risks that have been encountered and resolved.
  Excep on reports: These reports focus on devia ons from the project plan, including
delays, cost overruns, and scope changes. They typically include informa on on the
cause of the devia on, the impact on the project, and any correc ve ac on taken.

 Stoplight reports: These reports use a traffic light system (red, yellow, green) to indicate
the project's status. Red represents a problem, yellow represents a poten al problem,
and green represents that everything is on track. This type of report is easy to
understand and quickly conveys the project's overall status.

 Variance reports: These reports compare actual project performance to planned

performance, iden fying any variances and their reasons. They typically include
informa on on cost, schedule, and performance variances, and any correc ve ac on
taken to address them

Characteris cs of Effec ve Progress Repor ng

 Timely, complete, accurate and intui ve

 Isn’t burdensome and counterproduc ve

 Readily acceptable to senior management

 Readily acceptable to the project team

 An effec ve early warning system

Earned value management

Planned Value (PV)
 Planned Value is the value of the work that should have been completed so far (as per
the schedule). Planned Value does not take actual performance into account.

Planned Value = (Planned % Complete) X budget at comple on (BAC)

EX: You have a project to be completed in 12 months. The budget of the project is 100,000 USD.
Six months have passed and the schedule says that 50% of the work should be completed. What
is the project’s Planned Value (PV)?

Project dura on: 12 months

Project cost (BAC): 100,000 USD
Time elapsed: 6 months
Percent complete: 50% (as per the schedule)
In this case, we should have completed 50% of the total work.
Planned Value = 50% of the value of the total work
= 50% of BAC
= 50% of 100,000
= (50/100) X 100,000
= 50,000 USD

Actual Cost (AC)

 Actual Cost is the total cost incurred for the actual work completed to date
Actual Cost (AC) = actual costs to date
 Actual cost= 60 000 USD

Earned Value (EV)

 Earned Value is the value of the work actually completed to date

Earned Value = % of completed work X BAC (Budget at Comple on).

EX: You have a project to be completed in 12 months. The budget of the project is 100,000 USD.
Six months have passed and 60,000 USD has been spent. On closer review, you find that only
40% of the work has been completed so far.
Earned Value = 40% of the value of total work
 = 40% of BAC
= 40% of 100,000
= 0.4 X 100,000
= 40,000 USD

Schedule Variance (SV)

 It determines whether you are ahead of schedule or behind the schedule in terms of
money

Schedule Variance (SV) = Earned Value (EV) - Planned Value (PV)

If schedule variance is positive = ahead of schedule

SV is negative = behind schedule
SV is zero = on schedule

Cost Variance (CV)

 CV is a measure of cost performance of a project

Cost Variance (CV) = Earned Value (EV) - Actual Cost (AC)

If CV positive = Under Budget

If CV negative = Over Budget
If CV zero = On Budget

Schedule Performance Index (SPI)

 A measure of how close the project is to performing work as it was actually scheduled.

SPI = EV/PV
Cost Performance Index (CPI)
 A measure of how close the project is to spending on the work performed to what was
planned to have been spent.

CPI = EV/AC
INDEX VALUES
< 1: over budget or behind schedule
> 1: under budget or ahead of schedule