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Outline

Introduction
Chapter One History of Project Management
Basics of Project Management The Project Cycle
Project Success Factors
Standards and Certification
Languages in Project Management

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Introduction What is project?

What is a Project? • According to the Project Management Institute: * "A
project is a temporary endeavor undertaken to
“A project is a unique process consisting of a create a unique product, service, or result."
set of co-ordinated and controlled activities
with start and finish dates, undertaken to • It is a temporary endeavor - what does that mean?
achieve an objective conforming to specific It means that it isn't endless; it has a start date and
requirements including the constraints of time, an end date. Projects do not go on indefinitely.
cost and resources.”
Activities that go on indefinitely are typically known
The International Organisation for Standards (ISO) as processes or operations.
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What is project?
What is project?
• Furthermore, projects have defined...
• It creates a unique product, service, or result, which we call • Objectives: The goals expected to be achieved and should be
a deliverable. Unique means that it is unlike any other project. It measurable. There can be technical goals (develop new technology),
may be similar to other projects but it is never identical to one. legal or political goals (to meet governmental regulations), and/or
business goals (beating or eliminating competition).
• This is what distinguishes a project from a process. A project is
unique; a process is repeatable and strives for consistency, • Scope: All the work required to deliver the product or result and satisfy
the objectives for which a project was undertaken at a level of quality
standardization, and no deviation from a standard.
expected by the customer. The scope includes all the deliverables
Deliverable means that it has an outcome: i.e. a new software
required to meet the project objectives.
product, a new drug, a new building, a merger of two companies,
• Cost: The planned cost of conducting the project; it includes human
improved customer service, etc. The outcome may be a product,
and physical resources.
goods, or a service.
• Time/Schedule: The planned time to complete the project, as well as
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the Milestones along the way.

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…Cont’d …Cont’d
 A project is a set of activities that are related to one
another; and all the activities must be completed in All of us have been involved in projects, whether they
order to complete the project. may be our personal, industrial, national or global
projects. For example:
 Material resources and manpower resources are
the two basic things required for the completion of Personal projects:
a project.  Preparing for examination
 Writing a book
 Thus a project management is a specialized  Plan a wedding
management technique to plan and control the Family vacation
available resources under a strong single point of  Build a house extension

responsibility for the successful completion of the

project.
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…Cont’d …Cont’d
Industrial projects:
 Construct a building/highway Projects can be of any size and duration. They can
Revamping / expansion project be simple, like planning a party, or complex like
Planning and launching a new product launching a space shuttle.

Generally projects are made up of:

National projects:
Literacy campaign /Poverty removal
 A defined beginning,
Constructing hydroelectric power plant (GERD)
 Multiple activities which are performed to a
Preparation of annual budget
plan,
 A defined end.
Global projects:
Organizing a peace missions
Environmental protection
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What is project Management? What is project Management?

• Project Management consists of the methods and tools used to • You've encountered projects in your personal life (remodeling a
deliver a project that meets its stated objectives. Objectives home), in your work (developing a new product for your company), or
typically represent themselves in terms of cost, time, and scope at school (getting a degree). When remodeling a home, you must

(also known as the Triple Constraint). watch and control the expenses; when developing a new product,
you must monitor the number of features that are added to the
• Often times projects fail to meet their objectives. It isn't so
product to meet cost expectations; and when getting a degree, you
simple because the number of factors that must be controlled
often have to manage your time commitments.
can, and often do, interact in unexpected ways. Consequently,
• Managing the expenses, managing the schedule, managing the
the project becomes more complicated as the number of factors
amount of work, planning for problems, handling the risks,
increases.
communicating critical information to all involved, leading a team -
these are the activities of successful Project Management.
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The Triple Constraint Project management

 Managing projects is a matter of keeping scope,
• Whether complex or simple, high-budget or low-budget, schedule, and resources in balance.
lengthy or brief in time, all projects have the same three
 Scope is the range of tasks required to accomplish
general objectives: meeting the scope (including quality project goals.
criteria of the deliverables), meeting time constraints, and  A schedule indicates the time and sequence of
meeting cost boundaries. These three objectives are each task, as well as the total project duration.
called the "Triple Constraint."  Resources are the people and/or equipment that
• These three constraints work together in an interesting perform or facilitate project tasks.
fashion. They must always be kept in balance with each  Generally project management means planning,
other - which is one of the biggest challenges that a Project organizing, and tracking a project’s tasks to
accomplish the project objectives.
Manager has.
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…Cont’d History of Project Management

 Egyptian Pyramids, Axum, Lalibela and
 Successful project management can Great Wall of China.
then be defined as having achieved the  They were certainly large and complex
project objectives: structures, built to high standards, which
have stood the test of time and must have
required an enormous workforce, but with
 Within time no documented evidence the
 Within cost management technique used can only be
 At the desired performance/technology level based on assumption.
 While utilizing the assigned resources effectively
and efficiently
 Accepted by the customer

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Modern Project Management

…Cont’d 1900-1950 – Henry Gantt
 Modern day project management is associated with Henry
Gantt's development of the bar chart (early 1900’s) and the
techniques developed during the military and aerospace Henry Gantt acknowledged as a father of project
management
projects of the 1950’s and 1960’s in America and Britain.

• Known for planning and control techniques

 Henry Gantt also acknowledged as the father of planning • “Gantt” chart keeps track of project schedule.
and control techniques, it is widely accepted that the
1950's as the genesis of modern day project management.

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Modern Project Management

1900-1950 – Frederic Taylor
…Cont’d
 Rapidly changing technology, fierce
competitive markets and a powerful
Work breakdown
Piecemeal work
environmental lobby have all encouraged
companies to change their management
systems.

 In this sink or swim, adopt or die market,

the role of project management was found
to offer a real solution .

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Features of project
Industries and applications of Project
Management
Non-repetitive , one time effort
Well defined collection of jobs Defense and Aerospace
Jobs interrelated through precedence Power, Oil & Gas, Chemical
Jobs otherwise independent Construction
Job consume time and resources Manufacturing
Coordination needed of between individual Pharmaceutical
groups and organizations
Telecom, IT & Software
Constant pressure of conformance to
Services (Insurance, Banking, Consultancies)
time/cost/performance goals
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…Cont’d …Cont’d
Organizations can further be classified as either In the non–project-driven organization, such as low-
project- driven or non–project-driven. technology manufacturing, profit and loss are
measured on vertical or functional lines.
In a project-driven organization, such as construction
or aerospace, all work is characterized through In this type of organization, projects exist merely to
projects, with each project as a separate cost center support the product lines or functional lines.
having its own profit-and-loss statement.
Priority resources are assigned to the revenue-
The total profit to the corporation is simply the producing functional line activities rather than the
summation of the profits on all projects. projects.

In a project-driven organization, everything centers

around the projects.
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Merits of project approach …Cont’d

 It imposes a discipline on planners and decision
 The project approach has proved a powerful
makers, and ensures that relevant problems and
instrument for rationalizing and improving the
issues are taken into account and are subjected to
investment process.
a systematic analysis before decisions are reached
and implemented.
 Its principal advantage lies in providing a logical
framework and sequence within which data can be
 Correctly applied, it can greatly increase the
compiled and analyzed; investment priorities
development impact of a country's scarce
established, project alternatives considered, and
investment resources.
sector policy issues addressed.

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Demerits of project approach …Cont’d

 Risks can be assessed, but not avoided, and
 The project approach also has its limitations. One projects must be designed and implemented
is that, it is dependent on quantitative inputs of against a constantly shifting background of
data and can be no more reliable than the data. political, social and economic changes.

 It also depends on estimates and forecasts, which  In the final analysis, the effectiveness of the project
are subject to human error. Value judgments must approach depends on the skill and judgment of
be made, but the project approach should at least those who use it.
force them to be made explicitly.

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Project Life Cycle Phases INITIATION PHASE

• During the first of these phases, the Initiation Phase, the

project objective or need is identified; this can be a
business problem or opportunity that must be solved. The
Project Manager is assigned. The project purpose,
objectives and high level requirements are identified and
captured in a Project Charter. This includes identifying the
project Stakeholders and understanding their role in the
project. The Project Charter serves as the basis for the
approval of the project to move into the Planning Phase.
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PLANNING PHASE PLANNING PHASE

• The next phase, the Planning Phase, is where the • A Project Plan is created outlining the activities,
project solution is further developed in as much detail dependencies, and timeframes. The Project Manager
as possible and the steps necessary to meet the coordinates the preparation of a project budget by
project's objective are planned. providing cost estimates for the labor, equipment, and
• In this phase, the team identifies all of the work to be materials costs. The budget is used to monitor and
done. The project's activities and resource control cost expenditures during Project Execution.
requirements are identified, along with the strategy for
producing them. This is also referred to as "scope
management."

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PLANNING PHASE PLANNING PHASE

• Once the project team has identified the work, prepared the • This is also the time to document all project Stakeholders
schedule, and estimated the costs, the three fundamental and establish a Communication Plan describing the
components of the planning process are complete. This is an
information needed and the delivery method to be used to
excellent time to identify and try to deal with anything that might
keep the Stakeholders informed.
pose a threat to the successful completion of the project. This is
called risk management. • You will want to document your Resource Plan to identify the
• In risk management, "high-threat" potential problems are materials, supplies, services, and personnel required to
identified along with the action that is to be taken on each high- ensure a successful project. The Resource Plan includes a
threat potential problem, either to reduce the probability that the Team Plan that documents the availability of the team and
problem will occur or to reduce the impact on the project if it
how you will create a positive team environment.
does occur.
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PLANNING PHASE EXECUTION PHASE (INCLUDING

MONITORING AND CONTROL)
• You will also want to include a Procurement Plan if you • During the third phase, the Execution Phase, the project
plan is put into motion and the work of the project is
plan to procure services or materials.
performed.
• Finally, you will want to document a Quality Plan, • It is important to maintain control and communicate as
providing quality targets, assurance, and control needed during Execution.
measures, along with an Acceptance Plan, listing the • Progress is continuously monitored and appropriate
criteria to be met to gain customer acceptance. adjustments are made and recorded as variances from the
original plan.
• At this point, the project would have been planned in
• In any project, a Project Manager spends most of the time in
detail and is ready to be executed. this phase.

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EXECUTION PHASE (INCLUDING EXECUTION PHASE (INCLUDING

MONITORING AND CONTROL) MONITORING AND CONTROL)
• During project execution, people are carrying out the • The first course of action should always be to bring the

activities, and progress information is being reported project back on course (i.e., to return it to the original plan).

through regular team meetings. • If that cannot happen, the team should record variations
from the original plan, and record and publish modifications
• The Project Manager uses this information to maintain
to the plan.
control over the direction of the project by comparing
• Throughout this step, Project Sponsors and other key
the progress reports with the project plan to measure
Stakeholders should be kept informed of the project's status
the performance of the project activities and take
according to the agreed-on frequency and format of
corrective action as needed.
communication.

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EXECUTION PHASE (INCLUDING

MONITORING AND CONTROL)
CLOSING PHASE

• Status reports should always emphasize the anticipated • During the final Closure Phase, or Completion Phase, the
emphasis is on releasing the final deliverables to the customer,
end point in terms of cost, schedule, and quality of
handing over project documentation to the business, terminating
deliverables.
supplier contracts, releasing and reassigning project resources to
• Each project deliverable produced should be reviewed other work or projects, and communicating the closure of the
for quality and measured against the acceptance project to all Stakeholders.

criteria. Once all of the deliverables have been • The last remaining step is to conduct lessons-learned studies in a
produced and the customer has accepted the final post project review to examine what went well and what didn't.
Through this type of analysis, the wisdom of experience is
solution, the project is ready for Closure.
transferred back to the project organization, which will help future

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The World Bank model Project life cycle Identification

Identification  The first phase of the cycle is concerned with
identifying project ideas that appear to
represent a high priority use of the country’s
Preparation
Evaluation resources to achieve an important development
objective.

 Such project ideas should assure that technical

and institutional solutions at costs matching
Implementation Appraisal/
with the expected benefits-will be found and
financing suitable policies adopted.

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…Cont’d Preparation
Receptive to new ideas  Once a project idea has passed the
Vision of future growth identification “test“ it must be advanced to
Long term objective the point at which a firm decision can be
SWOT analysis made whether or not to proceed with it.
Preliminary project analysis

 This requires a progressive refinement of

the design of the project in all its
dimensions technical, economical, financial,
social, institutional and so on.
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Appraisal …Cont’d
Market appraisal
 Before approving a loan external agencies
Technical appraisal
normally require a formal process of appraisal
Financial appraisal
to assess the overall soundness of the project
Economic appraisal
and its readiness for implementation for an
Ecological appraisal
internally generated and financed investment.

A feasibility report considers all these

 An explicit appraisal is necessary or at least a issues
desirable, part of the decision making process
before funds are committed.

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Market Appraisal Technical appraisal

Aggregate future demand Engineering aspects
Market share Locations
Current and future competition Size
Location and accessibility of customers Production process
Technological scenario/obsolescence
Possible pricing options

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Financial Appraisal Economic appraisal

Cash flows over time The benefit of a project for the society at
Profitability large
Break even point Employment
Net present value Distribution of income in society
Internal rate of return
Payback period
Risk

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Ecological Appraisal Implementation

Environmental damage  The implementation stage covers the
Air
actual development or construction of
Water
Noise the project, up on the point at which it
Other becomes fully operational.
Restoration measures and cost

 It includes monitoring of all aspects of the

work or activity as it proceeds and
supervision by “over sight” agencies
within the country or by external lenders.
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Project implementation Evaluation

Organizing team work  The post evaluation of a completed
Clear cost/time/performance goals projects to determine whether the
Project monitoring with regard to cost, objectives have been achieved as planned
work and time
or not; and to draw lessons from
Project control
experience with the project that can be
applied to similar project in the future.

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Problems in project execution Human issues in project management

Financial Working together in teams
Legal Communication
Engineering Conflict management
Construction Leadership and motivation
Labor unavailability
Non-availability of resources
Weather condition

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Some of the project Success Factors

Project Success Factors
 The success of a project depends on factors and i) Financially sound, feasible and affordable project
prevailing circumstances both within and outside of ii) The country risks must be manageable
the organization. iii) Strong government support
iv) The project must rank high on the host
 Usually project financers (project sponsors, government’s list
lenders or host governments) look at the v) The legal framework must be stable
consideration, that are particularly important for
vi) Efficient administrative framework
success.
vii) Fair and transparent bidding procedure
viii) Structured transactions
 The following are some of the success factors that
ix) Experienced and reliable sponsors
are given higher priority
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Some of the project Success Factors

Standards and certifications
x) Financial strength of sponsors
• PMI (Project Management Institute)
xi) Experienced and resourceful construction • www.pmi.org, PMBOK (Leading Institution)
contractors • IPMA (International Project Management
xii) Adequate financial structure Association)
• www.ipma.ch, Competence Baseline (European)
xiii) The currency, foreign exchange and inflation • APM (Association for Project Management)
issues • www.apm.org.uk, PRINCE2

xiv) Co-ordinated contractual framework • ISO 10006:2003

• Quality management systems – Guidelines for quality
management in projects
• ISO 21500:2012
• Guidance on Project management

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Languages in Project management Languages in Project management

• Project Crashing
• Risks vs Uncertainty
Portfolio • Cost overrun
• Time overrun/Schedule slippage
• Triple constraints
Program 1 Program 2 • Padding
• Contingency
• Deliverable
Project A Project B Project C Project D Project E • Charter

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