Learning Outcomes

a)Define project management

b)Explain the characteristics of a project and project constraints
c) Interpret and use key terminologies in project management
d)Differentiate forms of Project management
e)Explain the project environment
f) Distinguish project management in Industrial and Service sectors
g)Describe the four phases of project life cycle
f) Develop a project plan: scope and statement of work, and work
breakdown structure (WBS)
 Definition of Project
Management
Project management is the application of knowledge, skills, tools, and
techniques to project activities to meet the project requirements.
Project management is the practice of initiating, planning, executing, controlling,
and closing the work of a team to achieve specific goals and meet specific
success criteria at the specified time
Project management is characterised by the following key features:
1. Single person, the project manager heads the project organisation and functions
independently of the normal chain of command.
2. The project manager brings together all efforts to meet project objectives
3. Project work is performed by people from different functional areas or by outside
contractors.
4. He is responsible for integrating people from different functional areas or contractors.
 Definition of Project
Management cont’d
5. S/He negotiates directly with functional managers who might be
responsible for individuals work tasks and personnel within the project
9. Project is temporary, but functional or sub-contracting units are
permanent. When the project ends the project organisation is
disbanded and people return to their functional or sub-contracting units.
10. Project management sets into motion work in numerous supporting
functions such as HR, accounting, procurement, and IT.
 What is a project

• Project is temporary endeavor to create a unique solution.

• Project ends, So its temporary, you implement your project , you close
it.
• You create your unique product or service then you done
• While Operations is an ongoing effort, its repetitive
• Program is multiple projects put together combined
• Portfolio is a multiple programs put together
 Project
• To run any project, you need two methodologies
• The first one is the project life cycle and project management process
• Project life cycle is unique to a project, to an industry, to your needs,
Its not actually cycle , its sequential step of various phases of your
project
• This phases are unique to your own needs or project
• The project life cycle may have one phase or more phase
• There is no ideal structure of a project
 Project Management
• 5 Project groups
1) Initiation
2) Planning
3) Executing
4) Monitoring and Controlling
5) And then Closing
 Project groups

• Initiation process groups, you have two important processes.

• The first process is that you develop a process Charter, and the second is
to identification of stakeholders.
• Project charter outline a few things.
• Essential you finding the answers : why you doing and what you doing it
• Project charter for e.g. designing plant.
• You will need to include objective, scope and rough idea for the cost and
time , key stakeholders and key milestones
Initiation group cont’d

Identifying the stakeholders

• Create an excel list and list down all the project stakeholders.
• E.g. Project sponsor and neighbors or the project team members.
• Got approval and signed, then you can carry with project planning
2.Planning groups
• You are looking to find answers to three main questions
1) What are we going to do?
2) How are we going to do it ? ,and
3) How to know when the project is done ?
• At the end of a project plan you will end up with a comprehensive
project plan that includes:
• Requirement, scope, work break down structure, schedule or time
line cost , budget, and quality.
 Areas of Project Management
PMI’s guide to PMBOK divides project management knowledge into
nine areas:
Project Scope Management
Project Schedule Management
Project Cost Management
Project Quality Management
Project Resource Management
Project Communication Management
Project Risk Management
Project Procurement Management
Project Integration Management
 Forms of Project Management
• Basic project management: the most common product approach places the
project manager and functional managers on the same organisational level so
that both report to the same person.
• The project manager is given formal authority to plan, direct, organise, and
control the project from start to finish.
• Program management: a set of projects, it extends over longer time horizon.
The projects within a program share common resources and goals, and often
interdependent.
• New venture management: similar to project, a team is specially created to find
new products or new markets that fit the organisation’s resources and
capabilities.
• Product management: refers to a single person having authority to oversee all
aspects of a product’s production scheduling, inventory, distribution, and sales.
The product manager coordinates and expedites efforts of project development
launch, manufacturing, distribution, and support.
 Project Environments
• Commercial/For profit project management: oriented to satisfy
customers and make profit. Project creates from functional
areas. Top manager is informed of progress.
• Government/Non-profit project management: economic factor is
less important, profit is not the focus. Project managers move
from one project to another or coordinate multiple projects
(program).
• Military project management: similar to government project
management, most military projects involve testing and
evaluating hardware developed by contractors.
Project Management in Industrial and
Service Sectors
• Project management in industrial settings can be found in product
development, manufacturing and construction. They portray
diversity in size and scope of typical project management
situations in industry.
e.g.: R&D project management, development of product Z

• Project management in service sector is also employed in a broad

range of services, including banking, consulting, and accounting.
e.g.: Improving auditing efficiency, management consulting, NPO
fund-raising campaign project.
 THE PROJECT LIFE CYCLE
1. Concept phase
 State the project brief and identify stakeholders,
 Finalise project objectives,
 Define KPI to measure project performance,
 Generate and evaluate alternative solutions
 Select best solution and assess its risk
 Develop a detailed plan for the definition phase
 Prepare a provisional baseline for the decision-making milestone
meeting.
 THE PROJECT LIFE CYCLE
(Cont’d)
2. Definition phase (design phase)
 Develop the work breakdown structure (WBS) for implementation
phase
A WBS is a system-oriented breakdown of all work activities
required for the execution of a project phase.
 Determine types of contractors ( Their cost, task and schedule
estimate)
 Develop a detailed plan for implementation phase
 Prepare a provisional baseline for the decision-making milestone
meeting
 THE PROJECT LIFE CYCLE
(Cont’d)
3. Implementation phase (execution phase)
 Contract out or contract in to perform each task of implementation
phase
 Monitor and control project performance
 Launch corrective action whenever needed
 THE PROJECT LIFE CYCLE
(Cont’d)
4. Close-out phase (handover phase)
 Do the acceptance test of all deliverables
 Transfer the life cycle management responsibility to the owner
 Close project accounts
 Reassign the project team
 Conduct the project post mortem
NB: Milestone allows the customer to authenticate the project phase
and authorise. It means the customer accepts the recommendations
of the previous project phase and permits the next phase to start and
for money to be spent.
A milestone has three outcomes: stop, continue and repeat the
previous phase.
 Develop a Project Plan
• Top management authorises planning after the following has been
received:
A business need
A request for proposal (RFP) if the project is contracted.
Any new project poses new questions and the purpose of planning is
to answer them.
The project team needs to answer questions regarding what, how, by
whom, in what order, for how much, and by when.
 Develop a Project Plan cont’d
Scope
• Project planning starts with determining the objectives, deliverables, and
major tasks of the project.
• All these elements define the overall size of the project and range or
extent of work it encompasses as referred to the concept called project
scope.
• The scope is determined during project conception
• Setting the scope is called scope definition.
• Scope definition (scope statement) is the process of identifying the
breath of the project and its full span of outputs (project requirements).
 Develop a Project Plan cont’d
• The SOW is a description of the project, including its objectives,
scope (major deliverables and work tasks), impact, justification,
and management.
The project brief/Statement of Work
 is a statement that clarifies the following:
a. Customer’s requirements (state the problem, but doesn’t specify the
solution). If it specifies the solution then all opportunities for trade-
offs and optimisation are pre-empted. The question is whether the
customer has the skills to perform such trade-offs.
b. Define the opportunity to be exploited.
c. Define the constraints of a project
 Determinants of project success

• Project success is when a project has been completed within scope, budget
and the stipulated time and meeting or exceeding the customer’s expectation.
• It will also have been of high quality leaving both the contractor and customer
happy.
Project Success Factors include the following:
Clear goals/objectives
Good project plan
Good communication with client
Adequate resources
Dedicated team
Top management support
Good client
Feedback and feedforward mechanisms
Transparency
Monitoring and evaluation
 Develop a Project Plan cont’d
Work Breakdown Structure (WBS) or Product Breakdown Structure
(PBS)
• WBS is a procedure of subdividing the overall project into smaller elements.
The purpose is to define the total project into “pieces of work” called work
packages.
• This makes it easier to prepare project schedules and cost estimates, and to
assign management and task responsibilities.
• ‘A way in which a project may be divided by level into discrete groups for
programming, cost planning and control purposes.
• The WBS is a tool for defining the hierarchical breakdown of work required to
deliver the products of a project.
• Major categories are broken down into smaller components. These are sub-
divided until the lowest required level of detail is established (work package).’
 Develop a Project Plan cont’d

ELEMENTS OF WBS
Level Element Description
1 Project
2 Subproject
3 Activity
4 Work Package
 WBS/PBS: Example 1
Fashion outfit
 WBS/PBS: Example 2
House Extension Project
Activity, time, cost, and labour
requirements
Activity Time Weekly Total Cost Weekly
(weeks) direct cost (R) labour
(R) requirement
(workers)
A 4 50 200 4
B 7 120 840 6
C 8 300 2400 2
D 10 10 100 5
E 1 15 15 2
F 3 30 90 1