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Project management is the process of leading the work of a team to achieve goals
and meet success criteria at a specified time. The primary challenge of project
management is to achieve all of the 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, quality,
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 clearly established they should
influence all decisions made by other people involved in the project – for example
project managers, designers, contractors and sub-contractors. Ill-defined or too
tightly prescribed project management objectives are detrimental to decision making.
A project is a temporary endeavor designed to produce a unique 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]
Contents
1History
2Project management types
3Approaches of project management
o 3.1Benefits realization management
o 3.2Critical chain project management
o 3.3Earned value management
o 3.4Iterative and incremental project management
o 3.5Lean project management
o 3.6Phased approach
o 3.7Process-based management
o 3.8Project production management
o 3.9Product-based planning
4Process groups
o 4.1Initiating
o 4.2Planning
o 4.3Executing
o 4.4Project Documentation
o 4.5Monitoring and controlling
o 4.6Closing
o 4.7Project controlling and project control systems
5Characteristics of projects
o 5.1Project Complexity
6Project managers
7Multilevel success framework and criteria
8Risk management
9Work breakdown structure
10International standards
11Program management
12Project portfolio management
13Project management software
14Virtual project management
15See also
16References
17External links
History[edit]
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 systematically
apply project-management tools and techniques to complex engineering projects. [8]
1. initiation.
2. planning and design.
3. construction.
4. monitoring and controlling.
5. completion or closing.
Many industries use variations of these project stages and it is not uncommon for the
stages to be renamed 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 risk.[30]
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 this example of a predecessor) and ISO/IEC 15504 (SPICE –
software process improvement and capability estimation). Unlike SEI's CMM, the
OPM3 maturity model describes how to make project management processes
capable of performing successfully, consistently, and predictably to enact the
strategies of an organization.
Project production management[edit]
Main article: Project production management
Project production management is the application of operations management to the
delivery of capital projects. The Project production management framework is based
on a project as a production system view, in which a project transforms inputs (raw
materials, information, labor, plant & machinery) into outputs (goods and services). [31]
Product-based planning[edit]
Main article: Product-based planning
Product-based planning is a structured approach to project management, based on
identifying all of the products (project deliverables) that contribute to achieving the
project objectives. As such, it defines a successful project as output-oriented rather
than activity- or task-oriented.[32] The most common implementation of this approach
is PRINCE2.[33]
Process groups[edit]
The project development stages[34]
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.
Initiating[edit]
The initiating processes determine the nature and scope of the project. [35] 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 order for the duration of the project. These tend to include:
project proposal (idea behind project, overall goal,
duration)
project scope (project direction and track)
product breakdown structure (PBS) (a hierarchy of
deliverables / outcomes and components thereof)
work breakdown structure (WBS) (a hierarchy of the
work to be done, down to daily tasks)
responsibility assignment matrix (RACI) (roles and
responsibilities aligned to deliverables / outcomes)
tentative project schedule (milestones, important dates,
deadlines)
analysis of business needs and requirements against
measurable goals
review of the current operations
financial analysis of the costs and benefits, including
a budget
stakeholder analysis, including users and support
personnel for the project
project charter including costs, tasks, deliverables, and
schedules
SWOT analysis: strengths, weaknesses, opportunities,
and threats to the business
Planning[edit]
After the initiation stage, the project is planned to an appropriate level of detail
(see example of a flow-chart).[34] 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[36]
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, co-ordination and management of human resources and any other
resources such as material and budgets. The output of this phase is the project
deliverables.
Project Documentation[edit]
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 to a project's success.
Monitoring and controlling[edit]
Monitoring and controlling process group processes [34]
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:[2]
Contract closure: Complete and settle each contract
(including the resolution of any open items) and close
each contract applicable to the project or project phase.
Project close: Finalize all activities across all of the
process groups to formally close the project or a project
phase
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 controlling and project control systems[edit]
Project controlling (also known as Cost Engineering) should be established as an
independent function in project management. It implements verification and
controlling function during the processing of a project to reinforce the defined
performance and formal goals.[44] The tasks of project controlling are also:
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[47]
Project control is that element of a project that keeps it on track, on-time and within
budget.[37] 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.
[48]
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. These 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[edit]
There are five important characteristics of a project. (i) It should always have a
specific start and end dates. (ii) They are performed and completed by a group of
people. (iii) The output is delivery on unique product or service. (iv) They are
temporary in nature. (v) It is progressively elaborated. example: Designing a new
car, writing a book.
Project Complexity[edit]
Complexity and its nature plays an important role in the area of project management.
Despite having number of debates on this subject matter, studies suggest lack of
definition and reasonable understanding of complexity in relation to management of
complex projects.[49] As it is considered that project complexity and project
performance are closely related, it is important to define and measure complexity of
the project for project management to be effective. [50]
By applying the discovery in measuring work complexity described in Requisite
Organization and Stratified Systems Theory, Dr Elliott Jaques classifies projects and
project work (stages, tasks) into basic 7 levels of project complexity based on such
criteria as time-span of discretion and complexity of a project's output: [51][52]
Project managers[edit]
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 the 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 task. 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 Dr. 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.
Risk management[edit]
Main article: Project risk management
The United States Department of Defense states; "Cost, Schedule, Performance,
and Risk" are the four elements through which Department of Defense acquisition
professionals make trade-offs and track program status. [57] 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.
International standards[edit]
There are several project management standards, including:
See also[edit]
Related fields Related subjects
References[edit]
1. ^ (2003). PMP Project Management Professional Study Guide.
McGraw-Hill Professional, 2003. ISBN 0-07-223062-2 p.354.
2. ^ Jump up to:a b c d PMI (2010). A Guide to the Project Management
Body of Knowledge p.27-35
3. ^ The Definitive Guide to Project Management. Nokes, Sebastian.
2nd Ed.n. London (Financial Times / Prentice Hall):
2007. ISBN 978-0-273-71097-4
4. ^ "What is Project Management?". Project Management Institute.
Retrieved 2014-06-04.
5. ^ Paul C. Dinsmore et al (2005) The right projects done right! John
Wiley and Sons, 2005. ISBN 0-7879-7113-8. p.35 and further.
6. ^ Cattani, G.; Ferriani, S.; Frederiksen, L.; Florian, T.
(2011). Project-Based Organizing and Strategic Management.
Advances in Strategic Management. 28. Emerald. ISBN 978-
1780521930.
7. ^ Dennis Lock (2007) Project Management (9th ed.) Gower
Publishing, Ltd., 2007. ISBN 0-566-08772-3
8. ^ Young-Hoon Kwak (2005). "A brief History of Project
Management". In: The story of managing projects. Elias G.
Carayannis et al. (9 eds), Greenwood Publishing Group,
2005. ISBN 1-56720-506-2
9. ^ David I. Cleland, Roland Gareis (2006). Global Project
Management Handbook. "Chapter 1: "The evolution of project
management". McGraw-Hill Professional, 2006. ISBN 0-07-
146045-4
10. ^ Martin Stevens (2002). Project Management Pathways.
Association for Project Management. APM Publishing Limited,
2002 ISBN 1-903494-01-X p.xxii
11. ^ Edward R. Marsh (1975). "The Harmonogram of Karol
Adamiecki". In: The Academy of Management Journal. Vol. 18,
No. 2 (Jun., 1975), p. 358. (online)
12. ^ Morgen Witzel (2003). Fifty key figures in management.
Routledge, 2003. ISBN 0-415-36977-0. p. 96-101.
13. ^ David I. Cleland, Roland Gareis (2006). Global Project
Management Handbook. McGraw-Hill Professional, 2006. ISBN 0-
07-146045-4. p.1-4 states: "It was in the 1950s when project
management was formally recognized as a distinct contribution
arising from the management discipline."
14. ^ Malcolm, D. G., Roseboom, J. H., Clark, C. E., & Fazar,
W. (1959). "Application of a technique for research and
development program evaluation." Operations research, 7(5), 646-
669.
15. ^ F. L. Harrison, Dennis Lock (2004). Advanced project
management: a structured approach. Gower Publishing, Ltd.,
2004. ISBN 0-566-07822-8. p.34.
16. ^ Saladis, F. P. (2006). Bringing the PMBOK® guide to life. Paper
presented at PMI® Global Congress 2006—North America,
Seattle, WA. Newtown Square, PA: Project Management Institute.
Available at https://www.pmi.org/learning/library/bringing-pmbok-
guide-life-practical-8009
17. ^ "Certified Construction Manager". CMAA. Retrieved 23
November 2013.
18. ^ "Certificate in Biotechnology Project Management". University of
Washington. Retrieved 23 November 2013.
19. ^ Esselink, Bert (2000). A Practical Guide to Localization.
Amsterdam/Philadelphia: John Benjamins Publishing Company.
p. 428. ISBN 978-9-027-21956-5.
20. ^ Mesly, Olivier. (2017). Project feasibility – Tools for uncovering
points of vulnerability. New York, NY: Taylor and Francis, CRC
Press. 546 pages. ISBN 9 781498 757911.
21. ^ Cf. The Bridger (blog), "Project management: PMP, Prince 2, or
an Iterative or Agile variant"
22. ^ Serra, C. E. M.; Kunc, M. (2014). "Benefits Realisation
Management and its influence on project success and on the
execution of business strategies". International Journal of Project
Management. 33 (1): 53–66. doi:10.1016/j.ijproman.2014.03.011.
23. ^ Hass, Kathleen B. (Kitty) (March 2, 2010). "Managing Complex
Projects that are Too Large, Too Long and Too Costly". PM
Times. Retrieved 2017-06-27.
24. ^ Conforto, E. C.; Salum, F.; Amaral, D. C.; da Silva, S. L.;
Magnanini de Almeida, L. F (June 2014). "Can agile project
management be adopted by industries other than software
development?". Project Management Journal. 45 (3): 21–
34. doi:10.1002/pmj.21410. S2CID 110595660.
25. ^ Patel, Himanshu (April 20, 2018). "The Waterfall Model In
Project Management Explained". ItsGuru. Retrieved 2017-04-20.
26. ^ Snowden, David J.; Boone, Mary E. (November 2007). "A
Leader's Framework for Decision Making". Harvard Business
Review. Retrieved 2017-06-27.
27. ^ "Stanford Research Study Finds Innovation Engineering is a true
"Breakout Innovation" System". IE News. June 20, 2017.
Retrieved 2017-08-11.
28. ^ Wysocki, Robert K (2013). Effective Project Management:
Traditional, Adaptive, Extreme(Seventh ed.). John Wiley &
Sons. ISBN 978-1118729168.
29. ^ Winston W. Royce (1970). "Managing the Development of Large
Software Systems"Archived 2016-03-15 at the Wayback
Machine in: Technical Papers of Western Electronic Show and
Convention (WesCon) August 25–28, 1970, Los Angeles, USA.
30. ^ Jump up to:a b Stellman, Andrew; Greene, Jennifer (2005). Applied
Software Project Management. O'Reilly Media. ISBN 978-0-596-
00948-9. Archived from the original on 2015-02-09.
31. ^ McCaffer, Ronald; Harris, Frank (2013). Modern construction
management. Wiley-Blackwell. p. 5. ISBN 978-
1118510186. OCLC 834624541.
32. ^ Office for Government Commerce (1996) Managing Successful
Projects with PRINCE2, p14
33. ^ OGC – PRINCE2 – Background
34. ^ Jump up to: "Project Management Guide" (PDF). VA Office of
a b c d e f
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