Introduction to Project

Management

Introduction
Project Project
Introduction to Project
Initiation Planning
Management

Project Project
Execution Closeout
 Course Scope
This introduction course -
• Teaches the fundamentals, tools, and concepts of
project management
• Discusses the role of the project manager as well as the
team member in managing a project
• Practices the fundamentals of project management
It does not –
• Teach everything there is to know about project
management
• Cover all topics of project management in great depth
 Course Objectives
By the end of this course, you should be able
to -
• Describe roles and responsibilities of project
managers across the project life cycle
• Define and develop the foundations of a project
plan, including the project requirements
documents, work breakdown structure, cost,
schedule, and other resources
• Manage and control the project against the
baseline
• Close out a project
 Introduction to Project
Management

Introduction
Project Project
Introduction to Project
Initiation Planning
Management

Project Project
Execution Closeout
 Objectives
• Define a project and a project life cycle
• Explain project management and its importance
• Explain the triple constraint that affects every
project
• Identify influence on a project
• Describe project processes that make up every
project
• Explain the roles, responsibilities, and key
competencies of project managers
 What is a Project?
• A temporary endeavor to create a unique product,
service, or result with a defined start and end point and
specific objectives that, when attained, signify
completion.
» PMBOK® Guide, p. 3
 Project Management
• The application of knowledge, skills, tools, and
techniques to project activities to meet the project
requirements
• Accomplished through the application and integration of
the project management process of initiating, planning,
executing, monitoring and controlling, and closing.
» PMBOK® Guide, p. 5

Sound project management helps ensure success.

The Triple Constraint
Managing Projects Using the Triple
Constraint
• Balancing the three “sides” to complete the
project
• Combining art and science
• Defining and refining the project on an ongoing
basis
 Identifying Key Stakeholders
Who are the stakeholders? Consider-
• Who gets the output from the project?
• Who provides the input?
• Who has oversight?
• Who has other related responsibilities?
• Who reaps the rewards?
• Who suffers the penalties?
 Influences on a Project
• Key stakeholders
– Sponsor: The person or group that provides the
financial resources, in cash or in kind, for the
project…
» PMBOK® Guide, p. 32
– Customers and users, Sellers, Business partners,
Organizational groups, Functional managers
– Other stakeholders: Anyone else with the influence on
the project
• The organization’s systems, structures, and culture
• External social, environmental, and economic factors
 Project Management Process Groups
PMBOK® Guide’s five project process groups:
initiating, planning, executing, monitoring and
controlling, and closing
» PMBOK® Guide, p. 60-61
 Project Management Knowledge Areas
Knowledge Areas provide a detailed description of
the process inputs and outputs along
• Project Knowledge areas:
– Integration
– Scope
– Time
– Cost
– Quality
– Human Resources
– Communications
– Risk
– Procurement
– Stakeholder
 PMBOK® Guide, pp. 60-61
Project Manager Roles and Responsibilities

• Explicit role: Managing the project to meet or exceed

stakeholder expectations
• Related roles: Planning, leading, negotiating,
communicating, problem solving, prioritizing…
• The project manager must get other people to do what
his or her project needs, often with limited authority
 Key Messages
• A project is a temporary endeavor undertaken to create a unique product,
service, or result
» PMBOK® Guide, p. 3
• Project management is-
– The application of knowledge, skills, tools, and techniques to project activities to
meet project requirements
– Accomplished through the application and integration of the PM process of
initiating, planning, executing, monitoring and controlling, and closing
» PMBOK® Guide, p. 60-61
• The triple constraint of time, cost, and scope underlies every project
• Internal and external factors influence every project
• The phases of a project (which often vary by type of project) make up the
project’s life cycle
• Five interacting processes make up a project: initiating, planning, executing,
monitoring and controlling, and closing
• The project manager’s primary role is to manage the project, but also
important are the related roles of planning, leading, communicating,
negotiating, and problem solving
 Introduction to Project
Management

Introduction
Project Project
Introduction to Project
Initiation Planning
Management

Project Project
Execution Closeout
 Objectives
By the end of this section, you should be able to -
• Identify the role of senior management in project
initiation and in the success of your project
• Develop good project objectives based on assessing
needs
• Distinguish between functional and technical
requirements and understand the role of both
• Describe quantitative and qualitative methods that senior
management may use to select projects
• Develop a project charter
• Develop a project requirements document
 Keys to Project Success
Project success is based on-
• Good requirements
• Good planning
• Good monitoring and controlling
• Good closing
The Right Start

Wants/Needs

Objectives
Functional
Requirements

Technical Requirements
 Work Breakdown Structure (WBS)
The WBS-
• [I]s a deliverable-oriented hierarchical decomposition of
work to be executed by the project team, to accomplish
the project objectives and create the required
deliverables
• [O]rganizes and defines the total scope of the project
• [S]ubdivides the project work into smaller, more
manageable pieces of work, with each descending level
of the WBS representing and increasingly detailed
definition of project work

-PMBOK® Guide, p. 126

 Formulating Good Objectives
Objective
• An understanding between someone who needs
something and someone who can provide it
• Exists at all levels (corporate, project, work
team, specific)
• Uses the SMART model
– S = Specific
– M = Measurable
– A = Agreed-upon
– R = Realistic
– T = Time-constrained
 Requirements: Functional and Technical
Functional: The What’s Technical: The How’s
-Nontechnical -Detailed Components
-Understandable -Particular
-Performance specifications -Design specifications
-Features and capabilities -Project team-oriented
-Customer-oriented

Key problems-
• Customer giving technical requirements
• Team members wanting to rewrite the customer’s
functional requirements

Tool: Basic Requirements Checklist

 Project Charter
• Reference for authority for the future of the
project
• Written agreement between the senior
management, project manager, and the
functional manager
• Preliminary delineation of roles and
responsibilities

Tool: Project Charter

 Project Charter Fundamentals
• Set boundaries
• Be as concise as possible
• Identify name and titles for responsibility
• Map out the flow of documentation and
information in advance
• Establish expectations for change control,
budget, and status reports
Project Requirements Document (PRD)

• Documents the project objectives and

requirements
• Documents the business case
• The project team drafts the PRD and senior
management/stakeholders approve it
• Used to build consensus among key
stakeholders

Tool: Project Requirements Documents

 Key Messages
• Senior management usually selects and initiates
a project
• Projects originate for many reasons, from
product obsolescence to client requirements to
individual innovation
• Needs must be assessed, objectives set, and
functional and technical requirements defined
• Customers define functional requirements
• The project team develops the technical
requirements
 Key Messages (continued)
• Quantitative methods and qualitative
considerations enter into project selection
• A project charter spells out the roles and
responsibilities of the project manager, key
members of the project team, and input from
other organizational agencies
• A project requirements document defines the
work to be done
• A good projection definition is required before
detail planning can begin
 Introduction to Project
Management

Introduction
Project Project
Introduction to Project
Initiation Planning
Management

Project Project
Execution Closeout
 Objectives
• Identify and observe how the project manager works with
his or her project team to plan a project
• Plan for the scope of a project through a work
breakdown structure (WBS)
• Plan the schedule
• Plan the costs
• Plan other resources
• Plan for risk
• Plan for procurement needs
• Plan for communication and quality
• Produce a project plan
 Keys to Project Success
Project success is based on-
• Good requirements
• Good planning
• Good monitoring and controlling
• Good closing
 Core Project Team
• Core group of key people
– NOT the whole team
– NOT senior management
– INCLUDES the project management team
• Self-directed and interactive
• Project management tip: Get the right
people on the core team
 Scope Planning
• Scope: The sum of the products, services,
and results to be provided as a project*
• Scope planning: The process [to create]
a project scope management plan*
• Scope was outlined in the project initiation
phase and documented in the PRD; now it
is time to focus on project details

*Source: PMBOK® Guide, p.562

 Key WBS Terms
• Control account
– Typically a level above the work package
– Level for management reporting
• Planning package
– Undefined work package
– Known work, no detail
• Work package
– Lowest level of the WBS
– Level where work is assigned and monitored
– Basic level for addressing schedules, costing, and
resources needed
 WBS Model (Graphical)
1.0
Energy Management
System

1.1 1.2 1.3 1.4

Needs Specification Systems Project
Assessment Development Engineering Management

1.1.1 1.1.2 1.1.3 1.1.4

Measure state of Determine future Develop alternative Develop system
current system capability requirements approaches requirements

1.1.1.1 1.1.4.1
1.1.2.1 1.1.3.1
Identify Conduct system
Perform gap Identify alternative
components of requirements
assessment approaches
current system assessment

1.1.1.2
1.1.2.2 1.1.3.2 1.1.4.2
Analyze
Identify required Analyze alternative Review new system
components
changes approaches requirements list
of current system
 Case Study 3-1

Creating the Project’s WBS

 Estimating

Forecasting the cost, schedule, and resource requirement

needed to produce a specific deliverable.

Work packages provide the basis for the project

manager’s estimates of-
• How long?
• How much money?
• How many people and other resources?
 Good Estimating Practices (cont.)
Three-Point Estimate PERT Estimate
O + ML + P O + 4ML + P
Et = Et =
3 6

P–O
SD = (confidence in estimate)
6
Where:
Et = Estimated time
O = Optimistic estimate
ML = Most likely estimate
P = Pessimistic estimate
SD = Standard deviation
 Network Diagramming

• Shows the chronological relationship

between scheduled activities
• Activities are represented by boxes
• Dependencies are represented by arrows
• Multiple arrows (dependencies) are
possible
 Transforming a WBS into a Network
Diagram
Work packages break down into activities and
activities build the schedule.
Work Package: Install new building fire alarm
system
Activities Duration Predecessors
a. Determine system requirement 10 Boss go-ahead
b. Design system layout 15 a
c. Obtain New water line 20 a
d. Obtain permits 32 b
e. Order/receive parts 35 b
f. Install new system 5 d, e
g. Test new system 2 c, f
h. Deactivate old system 1 g
 Network Diagramming

Start Finish
 Resource Planning
• Plan for the resources you need to do the project
– People
– Equipment
– Facilities
• Human Resource Planning
– Staff planning
– Staff acquisition
– Maintaining the staff
– Replenishing the staff
• Resource Planning Tools
– Roles and responsibilities matrixes
– Resource loading table
– Resource Gantt chart
– Resource loading histograms
– Resource leveling
 Risk
Risk Management Planning
The process of deciding how to approach, plan, and execute risk management
activities for a project
*Source PMBOK® Guide, p. 309

• Risks are Threats AND Opportunities

• Risk planning is an integral part of project planning
• Risk management consists of six processes:*
– Risk management planning
– Risk identification
– Qualitative risk analysis
– Quantitative risk analysis
– Risk response planning
– Risk monitoring and control

*Source PMBOK® Guide, p. 312

 Risk (cont.)
• A definable event
– Timing: Short- or long-term potential of risk occurring
– Frequency: How often the event might occur
• Probability of occurrence
• Impact (consequence) of occurrence
• Based on the assessment of probability and
impact, you should prioritize the risk when-
– You do not have the resources to prepare for
everything
– Some potential events are two low priority to be worth
the effort
 Risk Response Strategies for Threats

• Accept-preparing for and dealing with a risk’s

consequences, either actively or passively
• Mitigate-reducing the probability and/or
consequences of threat to an acceptable
threshold
• Transfer-shifting a threat’s consequence to a
third party
• Avoid-eliminating the threat, usually by
eliminating its potential cause
Risk Response Strategies for Opportunities

• Accept-same as threat response strategy

• Enhance-modify the potential of an opportunity
by increasing probability and/or positive impacts,
and by identifying and maximizing key drivers
• Exploit-ensure that the opportunity is realized;
eliminate the uncertainty associated with a
particular upside risk by making the opportunity
definitely happen
• Share-allocate ownership to a third party who is
best able to capture the opportunity
 Risk Management Plan
For each risk event, document
• WBS
• Event description
• Probability
• Impact
• Response strategy
• Follow-up date
• Point of contact for responsibility
This is similar to the risk register

Tool: Risk Management Plan

 Reserve Planning

A set-aside of resources to deal with risk events as

provided for in the project management plan
• Reserve has multiple components
– Cash
– Time
– People and equipment
• Reserve planning-
– Deals with unexpected events within the original
scope
– Does not deal with changes or additions to your plan
Project Procurement Management
• The processes necessary to purchase or
acquire products, services or results needed
from outside the project team.
*Source PMBOK® Guide, p. 355

• Project Procurement Management Overview

– Plan Procurement
– Conduct Procurements
– Control Procurements
– Close Procurements
*Source PMBOK® Guide, p. 356
 Procurement Planning

For every input, there is an output, that is

created by using a tool and/or technique
• Inputs, Tool & Techniques, Outputs
– Planning – pg. 358
– Conducting – pg. 371
– Controlling – pg. 379
– Closing – pg. 386

Source: PMBOK® Guide

 Procurement Consideration
• What types of contracts will be used?
• What are the evaluation criteria to select outside
contracts?
• What responsibilities does the project manager have in
procurement and solicitation?
• Are standardized procurement documents used? If so,
what are they?
• How will multiple provides be managed
• How will procurement be coordinated with the rest of the
project?
 Communication Management
Communication in Project Management is all
about plan, manage, and control
– Who needs to know what?
– How will you tell them?
– When and how often?
– What needs to be part of a permanent record
and how?
 Communication Management

For every input, there is an output, that is

created by using a tool and/or technique
• Inputs, Tool & Techniques, Outputs
– Plan – pg. 289
– Manage – pg. 297
– Control – pg. 303

Source: PMBOK® Guide

 Quality Planning

The primary objective of quality planning is to

determine which standards apply and which metrics
to use to measure compliance.
• The project manager and the team must-
– Clarify quality policy direction
• Link to customer’s policy
• Link to the organization’s strategy
– Determine project standards and metrics for tasks
within standards

Tool: Quality Plan

 Elements of a Project Plan

• Management • Reporting
summary • Regulations and
• Deliverables standards
• Project requirements • Evaluations
• Resources • Supporting plans
• Potential project • Supporting
risks/issues documentation
• Schedule
 Case Study 3-3

Planning for Success:

Building the Project Plan
 Key Messages

• The core project team is involved in project

planning
• Understanding the scope is key to project
planning
• A work breakdown structure (WBS) is a
deliverable-oriented method to break down the
scope in order to plan for its completion
• Although a WBS has different formats, levels of
detail, and ways of being created, the work
package is always the bottommost level
 Key Messages (continued)
• A WBS dictionary provides important working-
level information about each work package
• Schedule planning involves determining the
timing of the project, including critical path, lag,
lead, and float, and may be presented in many
formats
• Cost planning involves determining the direct
costs that the work packages required, as well
as indirect cost (overhead) allocated to the
project
• Resource planning covers people, materials,
facilities, and other resources
 Key Messages (continued)
• Risks (both opportunities and threats) must be
identified, analyzed, prioritized, and planned for
through the appropriate response strategy
• Procurement planning involves deciding whether
to procure outside services and how to choose
which outside services and how to choose which
outside entity to use
• Communication and quality round out the project
manager’s planning processes
• All these processes come together in the project
plan
 Introduction to Project
Management

Introduction
Project Project
Introduction to Project
Initiation Planning
Management

Project Project
Execution Closeout
 Objectives

• Determine and interpret project baselines

• Assess project performance
• Respond to requested changes in a project
• Apply earned value management to determine
project performance
• Respond to risks as they occur
• Complete and present a performance report
• Align project team performance with stakeholder
expectation
 Keys to Project Success

Project success is based on-

• Good requirements
• Good planning
• Good monitoring and controlling
• Good closing
 Project Baselines

• The original plan, plus approve changes

• Note:
• Baselines (plural)
– Scope
– Cost
– Time
 Who Needs Baselines?

• Customer
• Project manager
• Management
• Accounting
• Project team
 Earned Value Terminology
• Planned value (PV) & (BCWS)-Budgeted cost
of the work that was scheduled to be done as of
today
• Actual cost (AC) & (ACWP)-Total amount spent
as of today
• Earned value (EV) & (BCWP)- Budgeted cost
for the work actually performed as of today (for
partially completed work packages, EV - percent
complete x total budgeted cost of work package)
• Budget at completion (BAC)-Sum of approved
budget for all work packages
Interpreting Earned Value Calculations

• Positive values for CV and SV indicate

cost under budget; ahead of schedule
• Negative values for CV and SV indicate
cost over budget and behind schedule
• Ratios greater than 1 for CPI and SPI
indicate under budget and ahead of
schedule
• CPI and SPI ratios less than 1 indicate
cost over budget and behind schedule
 Assessing Project Status

• Time
• Cost
• Scope
• Resources
• Quality
• Customer perspective
 Project Evaluation

• Periodic project evaluations

– Encourage timely adjustment
– Facilitate midcourse corrections instead of waiting
until the end
– Help with stake holder communication
• Outcomes of evaluation
– Continue as planned
– Minor redirection
– Major redirection
– Early termination
 Managing Risk

• Be proactive
• Monitor earlier assumptions
• Watch for “triggers”
• Implement responses, as needed, from
your risk management plan
• Document what you do in the risk
management plan and other project
documents
 Change Control System

• Change happens for many reasons and in many

forms:
– Customer input
– Team input
– Business input
• An organized, systematic approach is helpful in
managing change:
– Change request forms
– Review and evaluation process
– Decisions
 Organizational Structures

Weak Matrix Strong Matrix

Functional Structure Projectized Structure

Matrixed
Structure

Organizational Influences
 Possible Project Team Structures

• Specialty-team members possess skills that can

be used on multiple parts of the project; project
manager serves primarily as “coordinator”
• Directive-one clear boss who directs activities of
other team members; project manager serves as
“administrator”
• Self-managed-leadership flows to members
based on expertise; project manager serves as
“facilitator”
 Stakeholder Expectations

• Must be managed…or they tend to wander

• Are the basis of customer satisfaction
• Should be monitored throughout
implementation
• Should be a major project management
concern
 Key Messages

• Stakeholders measure how the project is doing

against time, cost, and other baselines
• Monitoring and controlling is ongoing and used
by the team; evaluation is periodic and used by
senior management
• Change can be managed with well-designed
change management system
• Earned value shows the project manager the
difference between what was planned and what
has occurred at a certain point in time
 Key Messages (continued)

• Reserves and risk response plans can be used

to manage risks
• Performance reports should be prepared
differently for different audiences
• The project manager must develop, structure,
and support the project team for it to perform
well
• Conflict is inevitable and must be manager
• The project manager must balance team
performance with stakeholder expectations
 Introduction to Project
Management

Introduction
Project Project
Introduction to Project
Initiation Planning
Management

Project Project
Execution Closeout
 Objectives
• Identify key tasks required for proper
scope verification and customer closure
• Identify key tasks for proper administrative
and contract closure
• Complete and interpret a set of lessons
learned for the project
• Communicate lessons learned and project
successes with project stakeholders and
others
 Keys to Project Success
• Good requirements
• Good planning
• Good monitoring and controlling
• Good closing
 Proper Closeout
• Planned for in the WBS with resources
allocated to it
• Needed for all project, even those that end
prematurely or are otherwise incomplete

Tool: Closeout Procedure

 Scope Verification and Customer
Acceptance
Scope verification is the process of obtaining the
stakeholders’ formal acceptance of the completed
project scope and associated deliverables
Source PMBOK® Guide, pg. 118 - 119
• This means:
– Did you do what you said you were going to do?
– Have the scope activities and deliverables been completed
• Two steps:
– Sit down with your team and check the WBS
– Sit down with the customer

Tool: Customer Acceptance Worksheet

Administrative and Contract closure
• Close out the books
• Set up project archives or files
• Handle equipment, facilities, and so on

Tool: Documentation Plan

 Lessons Learned
• Timely
• Relevant
• In context
• Detailed
• Filed and accessible

Tool: Lessons Learned Document

Tool: Final Project Report
 Other Closeout Activities
• Personal closeout
• Team closeout
• Public relations
• Celebrate, as appropriate
 Key Messages
• Plan closeout in the WBS
• Verify scope against agreed-upon requirements
• Closing out with the customer involves both
technical acceptance and sign-off
• Administrative and contract closeout ensures all
project requirements are met
• Lessons learned impart valuable knowledge to
your organization for use in future work
• Close out with the team, stakeholders, and
yourself, including appropriate recognition and
celebration of your efforts
 Nest Steps: Action Plan
• Does your organization typically plan closeout
into projects?
• Why is it important to plan for closeout?
• How can you improve your scope verification
and customer acceptance?
• How well does your organization document and
share lessons learned?
• Is it effective?
• What can you do to strengthen or enhance it?
 Network Diagramming

Task C Task E

Task A
Task D Task G
Start Task H

Task B Task F Task H