UNIT-1

1.INTRODUCTION TO PROJECT MANAGEMENT

1.1 DEFINITION OF PROJECT MANAGEMENT
 Project management is a discipline where specific skills, knowledge, tools,
methodologies, and techniques are used to deliver a project in conformity
with predefined requirements: scope, money, and time.

 Project management is about knowing and understanding the goals, how you
will achieve them, what resources you’ll need, and how long it will take you to
reach them.

 For example, the construction of a new building or the creation of a new piece
of software are initiatives that require project management to ensure their
successful launch.

 The discipline is an organized manner of managing a project from a defined

beginning to a defined ending.

 What is a project?

 A project is a temporary endeavor with a defined objective by a team or

individual to create a specific outcome.

 It has a beginning, middle, and end and involves planning, executing, and
controlling resources (such as time, money, and people) to achieve the
desired results.

 Projects can range from small, short term efforts to large, complex, long-term
initiatives.

 In a nutshell, a project is a goal-oriented, organized effort.

 All projects need a structure.

 Hence, the complexity and length of the project are equivalent to a more
advanced and detailed project plan.

 Almost every project goes through these five steps during its life cycle.

 Discover what the client needs to determine the project’s goals.

 Elaborate a plan that will tell you what needs to be done, by whom, how much
it will cost, and when the project should be delivered.

 Start working.

 Check if work goes according to the initial plan, identify problems, and make
adjustments.

 Deliver the project and close all contracts once the client approves.
  In charge of the planning and execution of a project is the “project manager.”
He ensures everything follows the client’s vision, budget, and quality
standards.

 He’s held accountable for the project’s success or failure.

 A product manager, or the product owner, on the other hand, focuses on

product development, making sure the product aligns with business goals.

1.2 CHARACTERISTICS OF PROJECT MANAGEMENT

The following are a few characteristics of project management that can help you
describe your project:
– Project Objectives
 It is important for any project to first have its goals and objectives decided.

 Defining project objectives makes project team members have a clear idea of
how to proceed and what to achieve with the project tasks and activities.

 Objectives are the key characteristics of any project that help you analyze the
progress of the project.

 Tracking the progress and regularly analyzing the results shows how much of
the project has been accomplished.

 With this, it becomes easier to determine the resources required for further
activities.

– Time
 Every project is assigned or designed with certain deadlines and milestones.
No matter the type of project, every project is indiscriminately time-bound.

 To ensure that the project team works independently on necessary project

tasks, project managers plan out the tasks and activities based on the
resources available and the capabilities of the team and team members.

 Teams with fresher members are given significant time to understand the
project objectives and work on them, while teams with more experienced
members are only provided with enough time.

 Project managers must also make sure that the allotted time, when summed
up, does not exceed the total time allotted for the project.

– Life Cycle
  Every project has its Lifecycle for completion, such as Initiation (Beginning),
Planning, Execution, Growth, Controlling, and Closing.
 These stages perfectly describe how the project must be executed.
 Depending on the type of project, characteristics of project life cycle
phases may vary.
 Defining these phases for a project depends on how the goals and objectives
of the project are derived.

 Project objectives help in carrying out the tasks and activities towards the
succession of the project, while its lifecycle phases keep the project tasks
actively moving towards succession.

– Possible Conflicts
 For becoming a project manager, one of the key skills required is Conflict
Resolution. Irrespective of the project type or its field, the occurrence of
Conflicts and Risks is uncontrollable.
 Not properly defining the project results in high risks and conflicts.
 Utilizing the information available can help reduce the occurrence of risks and
conflicts. With this, project managers can ensure every project team and its
members work more productively and present more effectively.

– Flexibility
 To make any project work as intended, it is important to take part in the
changes that occur within its lifecycle.

 Project managers must also ensure to schedule every project task as flexibly
as possible to give team members enough time to adapt to changes and cope
with the tasks as scheduled.

 The more flexibility in the schedule, the better the results concerning the
changes.

1.3 IMPORTANCE OF PROJECT MANAGEMENT

Here are a few reasons why project management is essential:

1. A Clear Project Plan and Process

  The more multifaceted the project, there is more scope for chaos in the
organization.

 That is where proper planning and the importance of project management

come in.

 The primary function of project management is to avoid confusion by

outlining a clear plan and a process from the beginning to the end.

2. Establish a Plan and Schedule

 Having agreed on a project schedule and sticking to it teaches the discipline

required to avoid delays.

 A pre-determined process through the project lifecycle gives the project a

clear path.

3. Teamwork

 People are made to work in a team on a project due to the benefits that
accrue through sharing and knowledge of skills.

 It inspires team members to collaborate on a project.

4. Maximize Resources

 It is well known that human and financial resources are likely to be expensive.

 Project risk management and project tracking with regular reporting ensure
the economic and efficient use of all the resources.

5. Keep Control of Costs

 Based on the project scope, some projects may incur high costs.
  So, it is essential to keep track of the budget.

 Incorporating project management strategies eases the budget overrun risks.

6. Build on Knowledge

 Businesses will acquire more experience over time when they embark on
more projects.

 Project management serves as a company’s knowledge asset and helps build

on experience and knowledge.

7. Manage Quality

 It is crucial to ensure top-quality results.

 Project management identifies, controls, and manages standards.

 This results in a high-quality product/ service and a satisfied client.

8. Continuous Oversight

 Project management methods ensure that organizations gain control over

ongoing projects and make sure they are on the right track and within the
stipulated budget.

 Project deliverables should be managed well, so you do not lose track of the
project’s progress.

 A single failed project may not seem like a great thing to the company;
nevertheless, when we talk about large organizations with multiple projects in
the pipeline, the importance of project management increases manifold.

 The absence of project management leads to chaos in the organization, which

gradually induces higher rates of failure, uncertainty, and stress.
1.4 PROJECT MANAGEMENT PROCESSES

Project Management Body of Knowledge (PMBOK Guide) breaks down the

overarching process of managing a project into five stages, or “process groups.”
These process groups are typically defined as:

 Initiating: During this phase, the project is conceptualized, and feasibility is

determined. According to SME Toolkit, some activities that should be
performed during this process include defining the project goal; defining the
project scope; identifying the project manager and the key stakeholders;
identifying potential risks, and producing an estimated budget and timeline.

 Planning: Next, the project manager will create a blueprint to guide the entire
project from ideation through completion. This blueprint will map out the
project’s scope; resources required to create the deliverables; estimated time
and financial commitments; communication strategy to ensure stakeholders
are kept up to date and involved; execution plan; and proposal for ongoing
maintenance. If the project has not yet been approved, this blueprint will serve
as a critical part of the pitch.

 Executing: During this phase, the project manager will conduct the
procurement required for the project and staff the team. Execution of the
project objectives requires effective management of the team members on
the ground. PMs are responsible for delegating and overseeing the work on
the project while maintaining good relationships with all team members and
keeping the entire project on time and budget. The PM must, therefore, be
highly organized and an exceptional leader. That’s because they’ll need to
address team concerns and issues that arise along the way, requiring
frequent and open communication with all team members and stakeholders.

 Monitoring and control: During this process group, project managers will
closely measure the project's progress to ensure it is developing properly.
Documentation such as data collection and verbal and written status reports
may be used. “Monitoring and controlling are closely related to project
planning. While planning determines what is to be done, monitoring and
 controlling establish how well it has been done,” explains SME Toolkit.
“Monitoring will detect any necessary corrective action or change in the
project to keep the project on track.”

 Closing: The closing process group occurs once the project deliverables have
been produced and the stakeholders validate and approve them. During this
phase, the project manager will close contracts with suppliers, external
vendors, consultants, and other third-party providers. All documentation will
be archived, and a final project report will be produced. Further, the final part
of the project plan — the plan for troubleshooting and maintenance — will kick
into place.

1.5 PROJECT MANAGEMENT KNOWLEDGE AREAS

Here are the ten key knowledge areas outlined in the PMBOK Guide.

1. Project integration management

Project integration management is an essential component of project

management. It involves overseeing the processes used to bring together various
project elements.

This includes the physical and digital features and the people involved in the
project. It also involves managing relationships between stakeholders and
managing changes that arise during the project.

2. Project scope management

Project scope management ensures that a project’s objectives are achieved within
the constraints of available resources and timeframes.This involves developing a
plan for the project, determining what tasks need to be done and in which order
they should be completed, estimating costs, and tracking progress against the
plan.

3. Project time management

Project time management is integral to planning a successful project. It includes

creating timelines, setting deadlines, scheduling resources, and allocating time to
each task or resource required for project completion.

4. Project cost management

Project cost management is all about managing costs associated with
completing a project on time and within budget. This involves setting a budget,
tracking prices and expenses related to the project, and identifying ways to
reduce costs or maximize resources.

5. Project quality management

Project quality management is all about ensuring that the deliverables and
processes associated with a project meet predetermined standards of
excellence.This includes developing plans for quality assurance, testing products
before release, and auditing results to ensure compliance with established quality
standards.

6. Project resource management

Project resource management involves managing people and other resources to

complete a project successfully.This includes recruiting team members,
assigning project tasks according to their skills, motivating them to perform at
their best, and monitoring infrastructure resources used throughout the project
lifecycle.

7. Project communications management

Project communications management ensures that all stakeholders know the

project’s progress and have access to the information they need at the right
time.This includes setting up a communication plan, establishing channels for
communication , communicating effectively with team members and other
stakeholders, and managing conflicts among stakeholders.

8. Project risk management

Project risk management is all about identifying potential risks or issues that can
slow down the project and creating plans or strategies to respond to them if they
arise. According to the Project Management Body of Knowledge (PMBoK), it
includes quantitative risk analysis associated with the project, developing
contingency plans in case those risks materialize, and monitoring risks
throughout the project’s lifecycle.

9. Project procurement management

Project procurement management is concerned with acquiring goods and

services required to complete a project. From identifying potential vendors,
evaluating offers from suppliers, negotiating contracts and terms, managing the
procurement process, and ensuring compliance with legal team , it all falls within
this step of the PM knowledge areas.

10. Project stakeholder management

Project stakeholder management is an integral part of any successful project.It
involves identifying stakeholders and their interests in the project, engaging with
them throughout the project’s life cycle, responding to their concerns or
questions promptly, and keeping them informed about the progress made toward
completion.By doing so, stakeholders can be sure that their goals are being taken
into account when making decisions about the project.

2.PROJECT SELECTION,INITIATION AND SCOPE

MANAGEMENT
2.1 PROJECT SELECTION CRITERIA AND METHOD

 Project selection is the process of evaluating and choosing a project from a

set of alternatives based on predefined criteria.
 The goal is to choose a project that offers the greatest value and feasibility.

Project Selection Criteria

These are the key factors considered when evaluating projects:

1. Strategic Alignment

Does the project align with the organization's mission, vision, and strategic goals?

2. Financial Criteria

Return on Investment (ROI)

Net Present Value (NPV)

Internal Rate of Return (IRR)

Payback Period

3. Risk Level

Technical risk

Market risk

Operational risk

4. Resource Availability

Are the necessary people, technology, and funds available?

 5. Timeframe

Can the project be completed within the required timeline?

6. Stakeholder Support

Are key stakeholders in favor of the project?

7. Legal and Environmental Impact

Does it comply with laws and minimize negative environmental impact?

Project Selection Methods

There are two main categories: Quantitative and Qualitative methods.

1. Quantitative Methods

 Benefit Cost Ratio (BCR)

o Ratio of benefits to costs; choose projects with BCR > 1.
 Net Present Value (NPV)
o Calculates the value of cash flows over time. Positive NPV means the
project is profitable.
 Internal Rate of Return (IRR)
o Discount rate that makes NPV = 0. Higher IRR is better.
 Payback Period
o Time it takes to recover the initial investment. Shorter periods are
preferable.
 Scoring Models
o Assign weights and scores to different criteria, then total the score for
each project.

2. Qualitative Methods

These focus on judgment, experience, or strategy:

 Expert Judgment

Decisions made based on expert opinions and past experiences.

 SWOT Analysis

Evaluates project Strengths, Weaknesses, Opportunities, and Threats.

 Multi-Criteria Decision Analysis (MCDA)

Combines both qualitative and quantitative factors.

  Delphi Technique

Gathers insights from multiple experts anonymously to reach a consensus.

Combined Approaches

Many organizations use a hybrid approach, combining financial analysis with

strategic and qualitative assessments for a well-rounded evaluation.

Example Scenario

Suppose an IT company is selecting between two software development projects.

They might use:

NPV and ROI to evaluate financial benefits,

Resource availability and risk to assess feasibility,

Strategic fit and stakeholder analysis to ensure alignment.

The final decision might be made using a weighted scoring model, assigning
points to each criterion.

2.2 PROJECT INITIATION AND CHARTER DEVELOPMENT

1. Project Initiation: Overview

Purpose:
To define the project at a high level, assess its feasibility, and secure authorization to
proceed.

Key Activities:

 Identify project needs and objectives

 Conduct feasibility studies
 Define high-level scope, budget, and schedule
 Identify stakeholders
 Perform a business case analysis
 Develop the project charter
A Project Charter is a formal document that:

 Authorizes the project

 Identifies the project manager
 Gives the project manager authority to apply organizational resources
 Serves as a reference for future project decisions

2.Steps to Develop a Project Charter

Step 1: Gather Inputs

 Business case
 Statement of work (SOW)
 Stakeholder requirements

Step 2: Define Objectives and Scope

 Clearly define what the project will achieve and its boundaries

Step 3: Identify Stakeholders

 List key individuals or groups who influence or are affected by the project

Step 4: Develop High-Level Timeline and Budget

 Estimate major costs and schedule milestones

Step 5: Identify Risks and Constraints

 Outline any known risks and limiting factors

Step 6: Assign the Project Manager

 Officially name the PM and define their authority

Step 7: Review and Approve

 Get sign-off from project sponsors and stakeholders