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Not to be confused with Product management.
Project management is the process of supervising the work of a team to achieve all project
goals within the given constraints.[1] This information is usually described in project
documentation, created at the beginning of the development process. The primary constraints
are scope, time, and budget.[2] The secondary challenge is to optimize the allocation of necessary
inputs and apply them to meet pre-defined objectives.
The objective of project management is to produce a complete project which complies with the
client's objectives. In many cases, the objective of project management is also to shape or reform
the client's brief to feasibly address the client's objectives. Once the client's objectives are
established, they should influence all decisions made by other people involved in the project– for
example, project managers, designers, contractors, and subcontractors. Ill-defined or too tightly
prescribed project management objectives are detrimental to decision-making.
A project is a temporary and unique endeavor designed to produce a product, service, or result
with a defined beginning and end (usually time-constrained, and often constrained by funding or
staffing) undertaken to meet unique goals and objectives, typically to bring about beneficial
change or added value.[3][4] The temporary nature of projects stands in contrast with business as
usual (or operations),[5] which are repetitive, permanent, or semi-permanent functional activities
to produce products or services. In practice, the management of such distinct production
approaches requires the development of distinct technical skills and management strategies. [6]
History
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Until 1900, civil engineering projects were generally managed by creative architects, engineers,
and master builders themselves, for example, Vitruvius (first century BC), Christopher
Wren (1632–1723), Thomas Telford (1757–1834), and Isambard Kingdom Brunel (1806–1859).
[7]
In the 1950s, organizations started to apply project-management tools and techniques more
systematically to complex engineering projects.[8]
As a discipline, project management developed from several fields of application including civil
construction, engineering, and heavy defense activity.[9] Two forefathers of project management
are Henry Gantt, called the father of planning and control techniques,[10] who is famous for his use
of the Gantt chart as a project management tool (alternatively Harmonogram first proposed
by Karol Adamiecki);[11] and Henri Fayol for his creation of the five management functions that
form the foundation of the body of knowledge associated with project and program management.
[12]
Both Gantt and Fayol were students of Frederick Winslow Taylor's theories of scientific
management. His work is the forerunner to modern project management tools including work
breakdown structure (WBS) and resource allocation.
The 1950s marked the beginning of the modern project management era, where
core engineering fields came together to work as one. Project management became recognized as
a distinct discipline arising from the management discipline with the engineering model. [13] In the
United States, prior to the 1950s, projects were managed on an ad-hoc basis, using mostly Gantt
charts and informal techniques and tools. At that time, two mathematical project-
scheduling models were developed. The critical path method (CPM) was developed as a joint
venture between DuPont Corporation and Remington Rand Corporation for managing plant
maintenance projects. The program evaluation and review technique (PERT), was developed by
the U.S. Navy Special Projects Office in conjunction with the Lockheed Corporation and Booz
Allen Hamilton as part of the Polaris missile submarine program.[14]
PERT and CPM are very similar in their approach but still present some differences. CPM is
used for projects that assume deterministic activity times; the times at which each activity will be
carried out are known. PERT, on the other hand, allows for stochastic activity times; the times at
which each activity will be carried out are uncertain or varied. Because of this core difference,
CPM and PERT are used in different contexts. These mathematical techniques quickly spread
into many private enterprises.
At the same time, as project-scheduling models were being developed, technology for project
cost estimating, cost management and engineering economics was evolving, with pioneering
work by Hans Lang and others. In 1956, the American Association of Cost Engineers
(now AACE International; the Association for the Advancement of Cost Engineering) was
formed by early practitioners of project management and the associated specialties of planning
and scheduling, cost estimating, and project control. AACE continued its pioneering work and in
2006, released the first integrated process for portfolio, program, and project management (total
cost management framework).
In 1969, the Project Management Institute (PMI) was formed in the USA.[15] PMI publishes the
original version of A Guide to the Project Management Body of Knowledge (PMBOK Guide) in
1996 with William Duncan as its primary author, which describes project management practices
that are common to "most projects, most of the time."[16]
Project management types
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Project management methods can be applied to any project. It is often tailored to a specific type
of project based on project size, nature, industry or sector. For example, the construction
industry, which focuses on the delivery of things like buildings, roads, and bridges, has
developed its own specialized form of project management that it refers to as construction
project management and in which project managers can become trained and certified.[17] The
information technology industry has also evolved to develop its own form of project
management that is referred to as IT project management and which specializes in the delivery of
technical assets and services that are required to pass through various lifecycle phases such as
planning, design, development, testing, and deployment. Biotechnology project
management focuses on the intricacies of biotechnology research and development.
[18]
Localization project management includes application of many standard project management
practices to translation works even though many consider this type of management to be a very
different discipline. For example, project managers have a key role in improving the translation
even when they do not speak the language of the translation, because they know the study
objectives well to make informed decisions.[19] Similarly, research study management can also
apply a project manage approach.[20] There is public project management that covers all public
works by the government, which can be carried out by the government agencies or contracted out
to contractors. Another classification of project management is based on the hard (physical) or
soft (non-physical) type.
Common among all the project management types is that they focus on three important goals:
time, quality, and cost. Successful projects are completed on schedule, within budget, and
according to previously agreed quality standards i.e. meeting the Iron Triangle or Triple
Constraint in order for projects to be considered a success or failure.[21]
For each type of project management, project managers develop and utilize repeatable templates
that are specific to the industry they're dealing with. This allows project plans to become very
thorough and highly repeatable, with the specific intent to increase quality, lower delivery costs,
and lower time to deliver project results.
Approaches of project management
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A 2017 study suggested that the success of any project depends on how well four key aspects are
aligned with the contextual dynamics affecting the project, these are referred to as the four P's:[22]
There are a number of approaches to organizing and completing project activities, including
phased, lean, iterative, and incremental. There are also several extensions to project planning, for
example, based on outcomes (product-based) or activities (process-based).
Regardless of the methodology employed, careful consideration must be given to the overall
project objectives, timeline, and cost, as well as the roles and responsibilities of all participants
and stakeholders.[23]
Benefits realization management
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Main article: Benefits realisation management
Critical path method (CPM) is an algorithm for determining the schedule for project activities. It
is the traditional process used for predictive-based project planning. The CPM method evaluates
the sequence of activities, the work effort required, the inter-dependencies, and the resulting float
time per line sequence to determine the required project duration. Thus, by definition, the critical
path is the pathway of tasks on the network diagram that has no extra time available (or very
little extra time)."[25]
Critical chain project management
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Main article: Critical chain project management
Critical chain project management (CCPM) is an application of the theory of constraints (TOC)
to planning and managing projects and is designed to deal with the uncertainties inherent in
managing projects, while taking into consideration the limited availability of resources (physical,
human skills, as well as management & support capacity) needed to execute projects.
The goal is to increase the flow of projects in an organization (throughput). Applying the first
three of the five focusing steps of TOC, the system constraint for all projects, as well as the
resources, are identified. To exploit the constraint, tasks on the critical chain are given priority
over all other activities.
Earned value management
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Main article: Earned value management
Earned value management (EVM) extends project management with techniques to improve
project monitoring.[26] It illustrates project progress towards completion in terms of work and
value (cost). Earned Schedule is an extension to the theory and practice of EVM.
Iterative and incremental project management
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See also: Iterative and incremental development
In critical studies of project management, it has been noted that phased approaches are not well
suited for projects which are large-scale and multi-company,[27] with undefined, ambiguous, or
fast-changing requirements,[28] or those with high degrees of risk, dependency, and fast-changing
technologies. The cone of uncertainty explains some of this as the planning made on the initial
phase of the project suffers from a high degree of uncertainty. This becomes especially true as
software development is often the realization of a new or novel product.
These complexities are better handled with a more exploratory or iterative and incremental
approach.[29] Several models of iterative and incremental project management have evolved,
including agile project management, dynamic systems development method, extreme project
management, and Innovation Engineering®.[30]
Lean project management
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Main article: Lean project management
Lean project management uses the principles from lean manufacturing to focus on delivering
value with less waste and reduced time.
Project lifecycle
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There are five phases to a project lifecycle; known as process groups. Each process group
represents a series of inter-related processes to manage the work through a series of distinct steps
to be completed. This type of project approach is often referred to as "traditional" [31] or
"waterfall".[32] The five process groups are:
Typical development phases of an engineering project
1. Initiating
2. Planning
3. Executing
4. Monitoring and Controlling
5. Closing
Some industries may use variations of these project stages and rename them to better suit the
organization. For example, when working on a brick-and-mortar design and construction,
projects will typically progress through stages like pre-planning, conceptual design, schematic
design, design development, construction drawings (or contract documents), and construction
administration.
While the phased approach works well for small, well-defined projects, it often results in
challenge or failure on larger projects, or those that are more complex or have more ambiguities,
issues, and risks[33] - see the parodying 'six phases of a big project'.
Process-based management
edit
Main article: Process-based management
The incorporation of process-based management has been driven by the use of maturity models
such as the OPM3 and the CMMI (capability maturity model integration; see Image:Capability
Maturity Model.jpg
Project production management
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Main article: Project production management
Initiation
Planning
Production or execution
Monitoring and controlling
Closing
In project environments with a significant exploratory element (e.g., research and development),
these stages may be supplemented with decision points (go/no go decisions) at which the
project's continuation is debated and decided. An example is the Phase–gate model.
Project management relies on a wide variety of meetings to coordinate actions. For instance,
there is the kick-off meeting, which broadly involves stakeholders at the project's initiation.
Project meetings or project committees enable the project team to define and monitor action
plans. Steering committees are used to transition between phases and resolve issues. Project
portfolio and program reviews are conducted in organizations running parallel projects. Lessons
learned meetings are held to consolidate learnings. All these meetings employ techniques found
in meeting science, particularly to define the objective, participant list, and facilitation methods.
Initiating
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Initiating process group processes[37]
The initiating processes determine the nature and scope of the project.[39] If this stage is not
performed well, it is unlikely that the project will be successful in meeting the business' needs.
The key project controls needed here are an understanding of the business environment and
making sure that all necessary controls are incorporated into the project. Any deficiencies should
be reported and a recommendation should be made to fix them.
The initiating stage should include a plan that encompasses the following areas. These areas can
be recorded in a series of documents called Project Initiation documents. Project Initiation
documents are a series of planned documents used to create an order for the duration of the
project. These tend to include:
Planning
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After the initiation stage, the project is planned to an appropriate level of detail (see an example
of a flowchart).[37] The main purpose is to plan time, cost, and resources adequately to estimate
the work needed and to effectively manage risk during project execution. As with the Initiation
process group, a failure to adequately plan greatly reduces the project's chances of successfully
accomplishing its goals.
Project planning generally consists of[40]
Additional processes, such as planning for communications and for scope management,
identifying roles and responsibilities, determining what to purchase for the project, and holding a
kick-off meeting are also generally advisable.
For new product development projects, conceptual design of the operation of the final product
may be performed concurrent with the project planning activities and may help to inform the
planning team when identifying deliverables and planning activities.
Executing
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Executing process group processes[37]
While executing we must know what are the planned terms that need to be executed. The
execution/implementation phase ensures that the project management plan's deliverables are
executed accordingly. This phase involves proper allocation, coordination, and management of
human resources and any other resources such as materials and budgets. The output of this phase
is the project deliverables.
Project documentation
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Documenting everything within a project is key to being successful. To maintain budget, scope,
effectiveness and pace a project must have physical documents pertaining to each specific task.
With correct documentation, it is easy to see whether or not a project's requirement has been met.
To go along with that, documentation provides information regarding what has already been
completed for that project. Documentation throughout a project provides a paper trail for anyone
who needs to go back and reference the work in the past. In most cases, documentation is the
most successful way to monitor and control the specific phases of a project. With the correct
documentation, a project's success can be tracked and observed as the project goes on. If
performed correctly documentation can be the backbone of a project's success
Monitoring and controlling
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Monitoring and controlling process group processes [37]
Monitoring and controlling consist of those processes performed to observe project execution so
that potential problems can be identified in a timely manner and corrective action can be taken,
when necessary, to control the execution of the project. The key benefit is that project
performance is observed and measured regularly to identify variances from the project
management plan.
Monitoring and controlling include:[41]
Two main mechanisms support monitoring and controlling in projects. On the one
hand, contracts offer a set of rules and incentives often supported by potential penalties and
sanctions.[42] On the other hand, scholars in business and management have paid attention to the
role of integrators (also called project barons) to achieve a project's objectives. [43][44] In turn, recent
research in project management has questioned the type of interplay between contracts and
integrators. Some have argued that these two monitoring mechanisms operate as substitutes [45] as
one type of organization would decrease the advantages of using the other one.
In multi-phase projects, the monitoring and control process also provides feedback between
project phases, to implement corrective or preventive actions to bring the project into compliance
with the project management plan.
Project maintenance is an ongoing process, and it includes:[38]
Closing includes the formal acceptance of the project and the ending thereof. Administrative
activities include the archiving of the files and documenting lessons learned.
This phase consists of:[38]
Also included in this phase is the post implementation review. This is a vital phase of the project
for the project team to learn from experiences and apply to future projects. Normally a post
implementation review consists of looking at things that went well and analyzing things that
went badly on the project to come up with lessons learned.
Project control and project control systems
edit
Project control (also known as Cost Engineering) should be established as an independent
function in project management. It implements verification and controlling functions during the
processing of a project to reinforce the defined performance and formal goals.[47] The tasks of
project control are also:
the creation of infrastructure for the supply of the right information and
its update
the establishment of a way to communicate disparities in project
parameters
the development of project information technology based on an
intranet or the determination of a project key performance
indicator system (KPI)
divergence analyses and generation of proposals for potential project
regulations[48]
the establishment of methods to accomplish an appropriate project
structure, project workflow organization, project control, and
governance
creation of transparency among the project parameters [49]
Fulfillment and implementation of these tasks can be achieved by applying specific methods and
instruments of project control. The following methods of project control can be applied:
investment analysis
cost–benefit analysis
value benefit analysis
expert surveys
simulation calculations
risk-profile analysis
surcharge calculations
milestone trend analysis
cost trend analysis
target/actual comparison[50]
Project control is that element of a project that keeps it on track, on time, and within budget.
[41]
Project control begins early in the project with planning and ends late in the project with post-
implementation review, having a thorough involvement of each step in the process. Projects may
be audited or reviewed while the project is in progress. Formal audits are generally risk or
compliance-based and management will direct the objectives of the audit. An examination may
include a comparison of approved project management processes with how the project is actually
being managed.[51] Each project should be assessed for the appropriate level of control needed:
too much control is too time-consuming, too little control is very risky. If project control is not
implemented correctly, the cost to the business should be clarified in terms of errors and fixes.
Control systems are needed for cost, risk, quality, communication, time, change, procurement,
and human resources. In addition, auditors should consider how important the projects are to
the financial statements, how reliant the stakeholders are on controls, and how many controls
exist. Auditors should review the development process and procedures for how they are
implemented. The process of development and the quality of the final product may also be
assessed if needed or requested. A business may want the auditing firm to be involved
throughout the process to catch problems earlier on so that they can be fixed more easily. An
auditor can serve as a controls consultant as part of the development team or as an independent
auditor as part of an audit.
Businesses sometimes use formal systems development processes. This help assure systems are
developed successfully. A formal process is more effective in creating strong controls, and
auditors should review this process to confirm that it is well designed and is followed in practice.
A good formal systems development plan outlines:
Characteristics of projects
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There are five important characteristics of a project:
(i) It should always have specific start and end dates.
(ii) They are performed and completed by a group of people.
(iii) The output is the delivery of a unique product or service.
(iv) They are temporary in nature.
(v) It is progressively elaborated.
Examples are: designing a new car or writing a book.
Project complexity
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Main article: Project complexity
Complexity and its nature play an important role in the area of project management. Despite
having a number of debates on this subject matter, studies suggest a lack of definition and
reasonable understanding of complexity in relation to the management of complex projects. [52][53]
Project complexity is the property of a project which makes it difficult to understand, foresee,
and keep under control its overall behavior, even when given reasonably complete information
about the project system.[54]
The identification of complex projects is specifically important to multi-project engineering
environments.[55]
As it is considered that project complexity and project performance are closely related, it is
important to define and measure the complexity of the project for project management to be
effective.[56]
Complexity can be:
Benefits from measuring Project Complexity are to improve project people feasibility by
matching the level of a project's complexity with an effective targeted completion time, with the
respective capability level of the project manager and of the project members. [65]
Positive, appropriate (requisite), and negative complexity
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The Positive, Appropriate and Negative complexity model proposed by
Stefan Morcov[61]
Similarly with the Law of requisite variety and The law of requisite complexity, project
complexity is sometimes required in order for the project to reach its objectives, and sometimes
it has beneficial outcomes. Based on the effects of complexity, Stefan Morcov proposed its
classification as Positive, Appropriate, or Negative.[66][61]
Project managers
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Main article: Project manager
A project manager is a professional in the field of project management. Project managers are in
charge of the people in a project. People are the key to any successful project. Without the
correct people in the right place and at the right time a project cannot be successful. Project
managers can have the responsibility of the planning, execution, controlling, and closing of any
project typically relating to the construction industry, engineering, architecture, computing, and
telecommunications. Many other fields of production engineering, design engineering, and heavy
industrial have project managers.
A project manager needs to understand the order of execution of a project to schedule the project
correctly as well as the time necessary to accomplish each individual task within the project. A
project manager is the person accountable for accomplishing the stated project objectives on
behalf of the client. Project Managers tend to have multiple years' experience in their field. A
project manager is required to know the project in and out while supervising the workers along
with the project. Typically in most construction, engineering, architecture, and industrial
projects, a project manager has another manager working alongside of them who is typically
responsible for the execution of task on a daily basis. This position in some cases is known as a
superintendent. A superintendent and project manager work hand in hand in completing daily
project tasks. Key project management responsibilities include creating clear and attainable
project objectives, building the project requirements, and managing the triple constraint (now
including more constraints and calling it competing constraints) for projects, which is cost, time,
quality and scope for the first three but about three additional ones in current project
management. A typical project is composed of a team of workers who work under the project
manager to complete the assignment within the time and budget targets. A project manager
normally reports directly to someone of higher stature on the completion and success of the
project.
A project manager is often a client representative and has to determine and implement the exact
needs of the client, based on knowledge of the firm they are representing. The ability to adapt to
the various internal procedures of the contracting party, and to form close links with the
nominated representatives, is essential in ensuring that the key issues of cost, time, quality and
above all, client satisfaction, can be realized.
A complete project manager, a term first coined by Robert J. Graham in his simulation, has been
expanded upon by Randall L. Englund and Alfonso Bucero. They describe a complete project
manager as a person who embraces multiple disciplines, such as leadership, influence,
negotiations, politics, change and conflict management, and humor. These are all "soft" people
skills that enable project leaders to be more effective and achieve optimized, consistent results.
Multilevel success framework and criteria - project
success vs. project performance
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There is a tendency to confuse the project success with project management success. They are
two different things. "Project success" has 2 perspectives:
Project management success criteria are different from project success criteria. The project
management is said to be successful if the given project is completed within the agreed upon
time, met the agreed upon scope and within the agreed upon budget. Subsequent to the triple
constraints, multiple constraints have been considered to ensure project success. However, the
triple or multiple constraints indicate only the efficiency measures of the project, which are
indeed the project management success criteria during the project lifecycle.
The priori criteria leave out the more important after-completion results of the project which
comprise four levels i.e. the output (product) success, outcome (benefits) success and impact
(strategic) success during the product lifecycle. These posterior success criteria indicate the
effectiveness measures of the project product, service or result, after the project completion and
handover. This overarching multilevel success framework of projects, programs and portfolios
has been developed by Paul Bannerman in 2008.[70] In other words, a project is said to be
successful, when it succeeds in achieving the expected business case which needs to be clearly
identified and defined during the project inception and selection before starting the development
phase. This multilevel success framework conforms to the theory of project as a transformation
depicted as the input-process / activity-output-outcome-impact in order to generate whatever
value intended. Emanuel Camilleri in 2011 classifies all the critical success and failure factors
into groups and matches each of them with the multilevel success criteria in order to deliver
business value.[71]
An example of a performance indicator used in relation to project management is the "backlog of
commissioned projects" or "project backlog".[72]
Risk management
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Main article: Project risk management
The United States Department of Defense states that "Cost, Schedule, Performance, and Risk"
are the four elements through which Department of Defense acquisition professionals make
trade-offs and track program status.[73] There are also international standards. Risk management
applies proactive identification (see tools) of future problems and understanding of their
consequences allowing predictive decisions about projects. ERM system plays a role in overall
risk management.[74]
Work breakdown structure and other breakdown
structures
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Main articles: Work breakdown structure and Scope (project management)
The work breakdown structure (WBS) is a tree structure that shows a subdivision of the activities
required to achieve an objective – for example a portfolio, program, project, and contract. The
WBS may be hardware-, product-, service-, or process-oriented (see an example in a NASA
reporting structure (2001)).[75] Beside WBS for project scope management, there
are organizational breakdown structure (chart), cost breakdown structure and risk breakdown
structure.
A WBS can be developed by starting with the end objective and successively subdividing it into
manageable components in terms of size, duration, and responsibility (e.g., systems, subsystems,
components, tasks, sub-tasks, and work packages), which include all steps necessary to achieve
the objective.[33]
The work breakdown structure provides a common framework for the natural development of the
overall planning and control of a contract and is the basis for dividing work into definable
increments from which the statement of work can be developed and technical, schedule, cost,
and labor hour reporting can be established.[75] The work breakdown structure can be displayed in
two forms, as a table with subdivision of tasks or as an organizational chart whose lowest nodes
are referred to as "work packages".
It is an essential element in assessing the quality of a plan, and an initial element used during the
planning of the project. For example, a WBS is used when the project is scheduled, so that the
use of work packages can be recorded and tracked.
Similarly to work breakdown structure (WBS), other decomposition techniques and tools are:
organization breakdown structure (OBS), product breakdown structure (PBS), cost breakdown
structure (CBS), risk breakdown structure (RBS), and resource breakdown structure (ResBS).[76][61]
International standards
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There are several project management standards, including:
Some projects, either identical or different, can be managed as program management. Programs
are collections of projects that support a common objective and set of goals. While individual
projects have clearly defined and specific scope and timeline, a program's objectives and
duration are defined with a lower level of granularity.
Besides programs and portfolios, additional structures that combine their different characteristics
are: project networks, mega-projects, or mega-programs.
A project network is a temporary project formed of several different distinct evolving phases,
crossing organizational lines. Mega-projects and mega-programs are defined as exceptional in
terms of size, cost, public and political attention, and competencies required.[61]
Project portfolio management
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Main article: Project portfolio management
Project management software is software used to help plan, organize, and manage resource
pools, develop resource estimates and implement plans. Depending on the sophistication of the
software, functionality may include estimation and planning, scheduling, cost control and budget
management, resource allocation, collaboration software, communication, decision-
making, workflow, risk, quality, documentation, and/or administration systems.[82][83]
Virtual project management
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Virtual program management (VPM) is management of a project done by a virtual team, though
it rarely may refer to a project implementing a virtual environment[84] It is noted that managing a
virtual project is fundamentally different from managing traditional projects,[85] combining
concerns of remote work and global collaboration (culture, time zones, language).[86]
See also
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Related fields
edit
Agile construction
Architectural engineering
Construction management
Cost engineering
Facilitation (business)
Industrial engineering
Project Production Management
Project management software
Project portfolio management
Project management office
Project workforce management
Software project management
Systems engineering
Related subjects
edit
Lists
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Comparison of project management software
Glossary of project management
List of collaborative software
List of project management topics
Timeline of project management
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