Project Management - Detailed Notes
1.1 Project Management Fundamentals
Definition of a Project: A project is a temporary endeavor undertaken to create a unique product,
service, or result. It has a specific start and end date, clearly defined objectives, and
constraints like scope, cost, and time. Projects are unique, meaning the outcome is different in
some distinguishing way from all other products or services.
Project vs. Operations: Projects are temporary, unique, and aim at producing a particular result.
For example, developing a new app or constructing a building. Operations, on the other hand, are
ongoing and repetitive, focusing on sustaining the business. For example, running a customer support
center or manufacturing the same product repeatedly.
Necessity of Project Management: Project Management ensures efficient use of resources, aligns
project goals with organizational goals, minimizes risk and uncertainty, provides better control
over cost, time, and quality, and facilitates stakeholder communication and satisfaction.
Triple Constraints: The Triple Constraints are Scope, Time, and Cost. These are interrelated;
changing one affects the others. For example, expanding the scope typically increases cost and time.
Project Life Cycle: Typical: Initiation, Planning, Execution, Monitoring & Controlling, and Closing.
Atypical: Adaptive, Iterative, Incremental, or Agile life cycles.
Project Phases and Stage Gate Process: A stage gate process divides the project into distinct phases
separated by ‘gates’. At each gate, decisions are made to continue, modify, or terminate the
project.
Role of Project Manager: The Project Manager plans, executes, and closes projects. They manage the
team, schedule, budget, and stakeholders while acting as a leader, negotiator, and problem solver.
Project Management in Organizational Structures: - Functional: Projects operate within departments.
PM has limited authority. - Matrix: Varying degrees of authority between PM and functional managers.
- Projectized: PM has full authority and control over the team.
PM Knowledge Areas (PMI): According to PMBOK, the 10 knowledge areas include Integration, Scope,
Schedule, Cost, Quality, Resource, Communication, Risk, Procurement, and Stakeholder Management.
1.2 Getting a Project Started
How to Get a Project Started: Starting involves identifying business needs, assessing feasibility,
aligning with strategic objectives, appointing a sponsor, and creating a project charter.
Selecting Projects Strategically: This ensures projects align with organizational goals, provide
value, and fit within available resources.
Project Selection Models: Numeric Models: Benefit-Cost Ratio, NPV, IRR, Weighted Scoring Models.
Non-numeric Models: Sacred Cow, Operating Necessity, Competitive Necessity.
Project Portfolio Process: Steps include identifying projects, categorizing, evaluating, selecting,
balancing, and continuous reviewing to align with strategic goals.
Project Sponsor and Charter: A sponsor provides funding and support. The charter formally authorizes
the project and outlines objectives, scope, and roles.
Project Proposal: Includes background, goals, timeline, budget, risks, resources, and evaluation
methods.
Effective Project Team: A good team has the right skills, clear roles, strong communication, and
high motivation.
1.3 Team Development & Dynamics
Stages of Team Development (Tuckman’s Model): 1. Forming: Team meets and roles are unclear; leader
guides the team. 2. Storming: Conflicts and power struggles arise. 3. Norming: Roles are accepted,
and team cohesion develops. 4. Performing: Team functions effectively with high autonomy.
Team Dynamics: These are unseen forces that influence team behavior, including communication
patterns, power distribution, conflict resolution, and group cohesion. Positive dynamics lead to
higher performance and collaboration.
