Project manager International Managemenr

Certified International

1. CIPM ® Certified International Project Manager Charter and Certification ®
Preparation Exam Training
THE AMERICAN ACADEMY OF PROJECT MANAGEMENT
(AAPM)
THE AMERICAN ACADEMY OF PROJECT MANAGEMENT
Indonesia – Chapter Office:
Jl. Komplek IPB I No.2 Loji Sindang Barang-Bogor. Indonesia. Phone/Fax: (0251) 831 0930.
Head Office: Suite 293, 1670-F East Cheyene Mountain Blvd, Colorado Springs, Colorado-USA Phone: + 1 877-588-2698

2. What is a Project?
•All projects have a beginning, a middle and an end.
Beginning Middle End
2

3. Beginning Middle End
•A definition:
•“A temporary endeavor undertaken to accomplish a
unique purpose”
3

4. •Operations is work done to sustain the business.
•A project ends when its objectives have been reached,
or the project has been terminated.
•Projects can be large or small and take a short or long
time to complete.
4

5. Sample of Projects
•Developing a new product / service
•Effecting a change in structure, staffing, or style of an
organization
•Designing a new transportation vehicle
•Developing or acquiring a new or modified IT system
•Constructing a building or facility
•Building a water system for a community in a developing
country
•Running a campaign for political office
•Implementing a new business procedure or process
5

6. •Projects have a common set of characteristics
which can also be defined by what they are not
A target
outcome
A defined life
span
Cross
organisationa
l participation
New or
unique
Time, Cost
and
performance
requirements
6

7. •Projects have a common set of characteristics
which can also be defined by what they
are not
A target
outcome
A defined life
span
Cross
organisational
participation
New or unique
Time, Cost
and
performance
requirements
7

8. Explorations
Go on
indefinitely
One team or
one person
working alone
Creating the
same thing
multiple times
No constraints
on time, cost
or performance
What a project isn’t
8

9. The Attributes of PM
–Has a unique purpose.
–Is temporary.
–Is developed using progressive elaboration.
–Requires resources, often from various areas.
–Should have a primary customer or sponsor.
•The project sponsor usually provides the
direction and funding for the project.
–Involves uncertainty.
9

10. The Advantages of using Formal PM
•Better control of financial, physical, and human
resources.
•Improved customer relations.
•Shorter development times.
•Lower costs.
•Higher quality and increased reliability.
•Higher profit margins.
•Improved productivity.
•Better internal coordination.
•Higher worker morale (less stress).
10

11. Project and Program Managers
•Project managers work with project sponsors, project
teams, and other people involved in projects to meet
project goals.
•Program: “A group of related projects managed in a
coordinated way to obtain benefits and control not
available from managing them individually.”*
•Program managers oversee programs and often act as
bosses for project managers.
*PMI, A Guide to the Project Management Body of Knowledge
(PMBOK® Guide) (2004), p. 16.
11

12. The Triple Constraint
•Every project is constrained in different ways by its:
–Scope goals: What work will be done?
–Time goals: How long should it take to complete?
–Cost goals: What should it cost?
•It is the project manager’s duty to balance these three
often-competing goals.
12

13. Figure 1-1. The Triple Constraint of
Project Management
Successful project
management means
meeting all three
goals (scope, time,
and cost) – and
satisfying the
project’s sponsor!
13

14. The Quadruple Constraint
Quality
Time
Scope Cost
14

15. What is Project Management?
•Project management is “the application
of knowledge, skills, tools and techniques
to project activities to meet project
requirements.”*
*PMI, A Guide to the Project Management Body of Knowledge
(PMBOK® Guide) (2004), p. 8.
15

16. Project Stakeholders
•Stakeholders are the people involved in or
affected by project activities.
•Stakeholders include:
–Project sponsor
–Project manager
–Project team
–Support staff
–Customers
–Users
–Suppliers
–Opponents to the project
16

17. Figure 1-2. Project Management
Framework
17

18. •The PMBOK’s 9 Knowledge areas
Integration
Management
Time
Management
Cost
Management
Scope
Management
Quality
Management
HR
Management
Risk
Management
Communication
Management
Procurement
Management
18

19. •Time Management
Integration
Management
Time
Management
Cost
Management
Scope
Management
Quality
Management
HR
Management
Risk
Management
Communication
Management
Procurement
Management
19

20. •Cost Management
Integration
Management
Time
Management
Cost
Management
Scope
Management
Quality
Management
HR
Management
Risk
Management
Communication
Management
Procurement
Management
20

21. •Scope Management
Integration
Management
Time
Management
Cost
Management
Scope
Management
Quality
Management
HR
Management
Risk
Management
Communication
Management
Procurement
Management
21

22. •Quality Management
Integration
Management
Time
Management
Cost
Management
Scope
Management
Quality
Management
HR
Management
Risk
Management
Communication
Management
Procurement
Management
22

23. Remember this?
•The first four knowledge areas are Core Functions
23

24. •The next four knowledge areas are Facilitating Processes
Integration
Management
Time
Management
Cost
Management
Scope
Management
Quality
Management
HR
Management
Risk
Management
Communication
Management
Procurement
Management
24

25. •HR Management
Integration
Management
Time
Management
Cost
Management
Scope
Management
Quality
Management
HR
Management
Risk
Management
Communication
Management
Procurement
Management
25

26. •Risk Management
Integration
Management
Time
Management
Cost
Management
Scope
Management
Quality
Management
HR
Management
Risk
Management
Communication
Management
Procurement
Management
26

27. •Communications Management
Integration
Management
Time
Management
Cost
Management
Scope
Management
Quality
Management
HR
Management
Risk
Management
Communication
Management
Procurement
Management
27

28. Integration
Management
Time
Management
Cost
Management
Scope
Management
Quality
Management
HR
Management
Risk
Management
Communication
Management
Procurement
Management
•Integration Management – pulling it all together
28

29. Technical skills People Skills
Budgeting, Scheduling,
Documenting
Leading, Motivating,
Listening, Empathising
•Which ones are most important for projects?
29

30. Figure 1.3 Technical and Sociocultural Dimensions of Project Management
(Gray & Larson, 2006, p13)
30

31. Project Stakeholders
•Stakeholders are the people involved in or
affected by project activities.
•Stakeholders include:
–Project sponsor
–Project manager
–Project team
–Support staff
–Customers
–Users
–Suppliers
–Opponents to the project
31

32. Project Management Tools and
Techniques
•Project management tools and techniques assist project
managers and their teams in various aspects of project
management.
•Specific tools and techniques include:
–Project charters, scope statements, and WBS (scope).
–Gantt charts, network diagrams, critical path analyses, critical
chain scheduling (time).
–Cost estimates and earned value management (cost).
32

33. Project Portfolio Management
•Many organizations support an emerging
business strategy of project portfolio
management:
–Organizations group and manage projects as
a portfolio of investments that contribute to
the entire enterprise’s success.
33

34. Why the Improvements?
“The reasons for the increase in successful projects vary.
First, the average cost of a project has been more than
cut in half. Better tools have been created to monitor
and control progress and better skilled project
managers with better management processes are
being used. The fact that there are processes is
significant in itself.”*
*The Standish Group, “CHAOS 2001: A Recipe for Success” (2001).
34

35. Project
Success
Factors
1.Executive support
2.User involvement
3.Experienced project manager
4.Clear business objectives
5.Minimized scope
6.Standard software infrastructure
7.Firm basic requirements
8.Formal methodology
9.Reliable estimates
10.Other criteria, such as small
milestones, proper planning,
competent staff, and ownership
The Standish Group,
“Extreme CHAOS” (2001).
35

36. Use an integrated project
management toolbox that includes
standard and advanced tools and
lots of templates.
Grow project leaders, emphasizing
business and soft skills.
Develop a streamlined project
delivery process.
Measure project health using
metrics, including customer
satisfaction and return on investment
36

37. The Role of the Project Manager
•Job descriptions vary, but most include responsibilities
such as planning, scheduling, coordinating, and working
with people to achieve project goals.
•Remember that 97 percent of successful projects were
led by experienced project managers.
37

38. •Define scope of project.
•Identify stakeholders, decision-
makers, and escalation
procedures.
•Develop detailed task list
(work breakdown structures).
•Estimate time requirements.
•Develop initial project
management flow chart.
•Identify required resources
and budget.
•Evaluate project requirements.
•Identify and evaluate risks.
•Prepare contingency plan.
•Identify interdependencies.
•Identify and track critical
milestones.
•Participate in project phase
review.
•Secure needed resources.
•Manage the change control
process.
•Report project status.
Fifteen Project Management Job
Functions*
*Northwest Center for Emerging Technologies, “Building a Foundation for Tomorrow: Skills Standards
for Information Technology,” Belleview, WA, 1999.
38

39. Suggested Skills for Project
Managers
•Project managers need a wide variety of skills.
•They should:
–Be comfortable with change.
–Understand the organizations they work in and with.
–Lead teams to accomplish project goals.
39

40. Suggested Skills for Project
Managers
•Project managers need both “hard” and “soft” skills.
–Hard skills include product knowledge and knowing how to
use various project management tools and techniques.
–Soft skills include being able to work with various types of
people.
40

41. Suggested Skills for Project
Managers
•Communication skills: Listens, persuades.
•Organizational skills: Plans, sets goals, analyzes.
•Team-building skills: Shows empathy, motivates,
promotes esprit de corps.
•Leadership skills: Sets examples, provides vision (big
picture), delegates, positive, energetic.
•Coping skills: Flexible, creative, patient, persistent.
•Technology skills: Experience, project knowledge.
41

42. Table 1-4. Most Significant Characteristics of
Effective and Ineffective Project Managers
•Leadership by example
•Visionary
•Technically competent
•Decisive
•Good communicator
•Good motivator
•Stands up to upper
management when
necessary
•Supports team members
•Encourages new ideas
•Sets bad example
•Not self-assured
•Lacks technical expertise
•Poor communicator
•Poor motivator
Effective Project Managers Ineffective Project Managers
42

43. Importance of Leadership Skills
•Effective project managers provide leadership by
example.
•A leader focuses on long-term goals and big-picture
objectives while inspiring people to reach those goals.
•A manager deals with the day-to-day details of meeting
specific goals.
•Project managers often take on both leader and
manager roles.
43

44. History of Project Management
•Some people argue that building the Egyptian
pyramids was a project, as was building the Great Wall
of China.
•Most people consider the Manhattan Project to be the
first project to use “modern” project management.
–This three-year, $2 billion (in 1946 dollars) project had a
separate project and technical managers.
44

45. Figure 1-4. Sample Gantt Chart
The WBS is shown on the left, and each task’s start and finish dates
are shown on the right. First used in 1917, early Gantt charts were
drawn by hand.
Work Breakdown Structure (WBS)
45

46. Figure 1-5. Sample Network Diagram
Each box is a project task from the WBS. Arrows show dependencies
between tasks. The bolded tasks are on the critical path. If any task on the
critical path takes longer to complete than planned, the whole project will slip
unless something is done. Network diagrams were first used in 1958 on the
Navy Polaris project before project management software was available.
46

47. Project Management Office (PMO)
•A PMO is an organizational group responsible for coordinating the
project management function throughout an organization.
•Possible goals include:
–Collect, organize, and integrate project data for the entire organization.
–Develop and maintain templates for project documents.
–Develop or coordinate training in various project management topics.
–Develop and provide a formal career path for project managers.
–Provide project management consulting services.
–Provide a structure to house project managers while they are acting in
those roles or are between projects.
47

48. Figure 1-6. Sample Enterprise
Project Management Tool
48

49. Understanding Organizations
Structural frame:
Focuses on roles and
responsibilities,
coordination, and control.
Organization charts help
define this frame.
Human resources frame:
Focuses on providing
harmony between needs of
the organization and needs
of people.
Political frame:
Assumes organizations
are coalitions composed
of varied individuals and
interest groups. Conflict
and power are key issues.
Symbolic frame: Focuses
on symbols and meanings
related to events. Culture is
important.
49

50. Organizational Structure
•Functional Organization
•Projectized Organisation
•Matrix Organization
–Strong Matrix
–Weak Matrix
–Balanced Matrix
50

51. The Functional Organization
•Hierarchical
•Bureaucracy – Chain of
Command
•Each functional department
managed independently
•Projects generally within dept
•HOD is PM
•Cross-Functional projects
–Team members loyal to
functional manager
S ta ff
S ta ff
H u m a n
R e s o u rc e s
S ta ff
S ta ff
F in a n ce
S ta ff
S ta ff
M a r k e tin g
S ta ff
S a ff
In fo rm a tio n
T e c h n o lo g y
C E O
51

52. The Projectized Organisation
•Project Managers have
ultimate authority
•Supporting departments may
report directly to PM
•Teams can be collocated, ie
team members physically work
in the same location
•Team members report to PM
•Resource utilisation may be
low
•Fear of being out of work after
project
P roje ct
T e a m
M em b e rs/
S ta ff
P roje ct
M an a g er
P roje ct
T e a m
M em b e rs/
S ta ff
P roje ct
M an a g er
P ro je ct
T e am
M em b e rs/
S ta ff
P ro je ct
M an a g er
P ro je ct
T e a m
M em b e rs/
S ta ff
P ro je ct
M an a g er
C E O
52

53. The Matrix Organisation
•Takes advantage of strengths and weaknesses of
both Functional and Projectized Organizations
•Employees report to at least one Functional and one
Project Manager
•Functional Managers have administrative duties
•Project Managers responsible for work assignments
•Communication and Negotiation between Functional
and Project Managers
•Balance of power between Project and Functional
Managers
53

54. The Strong Matrix
Organization
•Tends towards Projectized
Organization
•Balance of power with
Project Manager
•PM can force Functional
Managers for resources
P r o je ct
M a n a g e r
P r o je ct
M a n a g e r
M a n a g e r
o f P ro je ct
M a n a g e rs
S ta ff
S ta ff
F in an ce
S ta ff
S ta ff
M a r k e tin g
S ta ff
S a ff
In fo rm a tio n
T e c h n o lo g y
C E O
54

55. The Weak Matrix Organization
•Tends toward Functional
Organization
•Functional Managers have all
the power
•PMs are project coordinators
•PMs have little or no authority
•Functional Managers assign
work
•PM expedites the project
S ta ff/P r o je ct
C o o r d in a to r
S ta ff
H u m a n
R e s o u r c e s
S ta ff
S ta ff
F in a n ce
S ta ff
S ta ff
M a r k e tin g
S ta ff
S a ff
In fo r m a tio n
T e c h n o lo g y
C E O
55

56. The Balanced Matrix Organization
•Power balanced
between Project
Manager and
Functional Manager
•Staff are assigned
based on project needs
P r o je ct
M a n a g e r
S ta ff
H u m a n
R e s o u r c e s
S ta ff
S ta ff
F in a n ce
S ta ff
S ta ff
M a rk e tin g
S ta ff
S a ff
In fo r m a tio n
T e c h n o lo g y
C E O
56

57. Organizational Structure Influences
on Projects
57

58. Organizational Culture
•Organizational culture is a set of shared assumptions,
values, and behaviors that characterize the functioning
of an organization.
•Many experts believe the underlying causes of many
companies’ problems are not the structure or staff, but
the culture.
58

59. Ten Characteristics of
Organizational Culture
•Member identity*
•Group emphasis*
•People focus
•Unit integration*
•Control
•Risk tolerance*
•Reward criteria*
•Conflict tolerance*
•Means-ends orientation
•Open-systems focus*
*Project work is most successful in an organizational culture where these
characteristics are highly prevalent and where the other characteristics are
balanced.
59

60. Stakeholder Management
•Project managers must take time to identify, understand,
and manage relationships with all project stakeholders.
•Using the four frames of organizations can help you
meet stakeholder needs and expectations.
•Senior executives and top management are very
important stakeholders.
60

61. Importance of Top
Management Commitment
•Several studies cite top management commitment as one
of the key factors associated with project success.
•Top management can help project managers:
–Secure adequate resources.
–Get approval for unique project needs in a timely manner.
–Receive cooperation from people throughout the organization.
–Learn how to be better leaders.
61

62. Project Phases and
the Project Life Cycle
•A project life cycle is a collection of project phases that
defines:
–What work will be performed in each phase.
–What deliverables will be produced and when.
–Who is involved in each phase.
–How management will control and approve work produced in
each phase.
•A deliverable is a product or service produced or
provided as part of a project.
62

63. More on Project Phases
•In the early phases of a project life cycle:
–Resource needs are usually lowest.
–The level of uncertainty (risk) is highest.
–Project stakeholders have the greatest opportunity to influence the
project.
•In the middle phases of a project life cycle:
–The certainty of completing a project increases.
–More resources are needed.
•In the final phase of a project life cycle:
–The focus is on ensuring that project requirements were met.
–The sponsor approves completion of the project.
63

64. Product Life Cycles
•Products also have life cycles.
•A systems development life cycle (SDLC) is a framework
for describing the phases involved in developing information
systems.
65

65. The Importance of Project Phases
and Management Reviews
•A project should successfully pass through each of the
project phases in order to continue on to the next.
•Management reviews, also called phase exits or kill
points, should occur after each phase to evaluate the
project’s progress, likely success, and continued
compatibility with organizational goals.
68

66. Project Management
Process Groups
….A process is a series of actions directed toward
a particular result…..
Plan
Monitor &
Control
Implement
Close
Initiate
69

67. 70

68. Relationships Among Process
Groups and Knowledge Area
72

69. Project Management
Integration
Initiating Planning Executing
Monitoring
&
Controlling
Closing
Project Scope Management
Project Time Management
Project Cost Management
Project Quality Management
Project HR Management
Project Communication
Management
Project Risk Management
Project Procurement
Management
73

70. Project Management
Integration
Initiating Planning Executing
Monitoring
&
Controlling
Closing
74

71. Project
Management
Integration
Initiating Planning Executing
Monitoring
&
Controlling
Closing
· Develop Project
Charter
· Develop Preliminary
Project Scope
Statement
75

72. Project
Management
Integration
Initiating Planning Executing
Monitoring
&
Controlling
Closing
· Develop Project
Charter
· Develop Preliminary
Project Scope
Statement
· Develop Project
Management Plan
76

73. Project
Management
Integration
Initiating Planning Executing
Monitoring
&
Controlling
Closing
· Develop Project
Charter
· Develop Preliminary
Project Scope
Statement
· Develop Project
Management Plan
· Direct & Manage
Project Execution
77

74. Project
Management
Integration
Initiating Planning Executing
Monitoring
&
Controlling
Closing
· Develop Project
Charter
· Develop Preliminary
Project Scope
Statement
· Develop Project
Management Plan
· Direct & Manage
Project Execution
· Monitoring &
Controlling Project
Work
· Integrated Change
Control
78

75. Project
Management
Integration
Initiating Planning Executing
Monitoring
&
Controlling
Closing
· Develop Project
Charter
· Develop Preliminary
Project Scope
Statement
· Develop Project
Management Plan
· Direct & Manage
Project Execution
· Monitoring &
Controlling Project
Work
· Integrated Change
Control
· Close Project
79

76. Project Management
Integration
Initiating Planning Executing
Monitoring
&
Controlling
Closing
Project Scope Management
Project Time Management
Project Cost Management
Project Quality Management
Project HR Management
Project Communication
Management
Project Risk Management
Project Procurement
Management
80

77. Project Management
Integration
Initiating Planning Executing
Monitoring
&
Controlling
Closing
· Scope Planning
· Scope Definition
· Create WBS
Project Scope
Management
81

78. Project Management
Integration
Initiating Planning Executing
Monitoring
&
Controlling
Closing
· Scope Planning
· Scope Definition
· Create WBS
· Scope Verification
· Scope Control
Project Scope
Management
82

79. Project Management
Integration
Initiating Planning Executing
Monitoring
&
Controlling
Closing
Project Scope Management
Project Time Management
Project Cost Management
Project Quality Management
Project HR Management
Project Communication
Management
Project Risk Management
Project Procurement
Management
83

80. Project Management
Integration
Initiating Planning Executing
Monitoring
&
Controlling
Closing
· Activity Definition
· Activity Sequencing
· Activity Resource
Estimating
· Activity Duration
Estimating
· Schedule
Development
Project Scope Management
Project Time
Management
84

81. Project Management
Integration
Initiating Planning Executing
Monitoring
&
Controlling
Closing
· Activity Definition
· Activity Sequencing
· Activity Resource
Estimating
· Activity Duration
Estimating
· Schedule
Development
· Schedule Control
Project Scope Management
Project Time
Management
85

82. Project Management
Integration
Initiating Planning Executing
Monitoring
&
Controlling
Closing
Project Scope Management
Project Time Management
Project Cost Management
Project Quality Management
Project HR Management
Project Communication
Management
Project Risk Management
Project Procurement
Management
86

83. Project Management
Integration
Initiating Planning Executing
Monitoring
&
Controlling
Closing
· Cost Estimating
· Cost Budgeting
Project Scope Management
Project Time Management
Project Cost
Management
87

84. Project Management
Integration
Initiating Planning Executing
Monitoring
&
Controlling
Closing
· Cost Estimating
· Cost Budgeting
· Cost Control
Project Scope Management
Project Time Management
Project Cost
Management
88

85. Project Management
Integration
Initiating Planning Executing
Monitoring
&
Controlling
Closing
Project Scope Management
Project Time Management
Project Cost Management
Project Quality Management
Project HR Management
Project Communication
Management
Project Risk Management
Project Procurement
Management
89

86. Project Management
Integration
Initiating Planning Executing
Monitoring
&
Controlling
Closing
· Quality Planning
Project Scope Management
Project Time Management
Project Cost Management
Project Quality
Management
90

87. Project Management
Integration
Initiating Planning Executing
Monitoring
&
Controlling
Closing
· Quality Planning· Perform Quality
Assurance
Project Scope Management
Project Time Management
Project Cost Management
Project Quality
Management
91

88. Project Management
Integration
Initiating Planning Executing
Monitoring
&
Controlling
Closing
· Quality Planning· Perform Quality
Assurance
· Perform Quality
Control
Project Scope Management
Project Time Management
Project Cost Management
Project Quality
Management
92

89. Project Management
Integration
Initiating Planning Executing
Monitoring
&
Controlling
Closing
Project Scope Management
Project Time Management
Project Cost Management
Project Quality Management
Project HR Management
Project Communication
Management
Project Risk Management
Project Procurement
Management
93

90. Project Management
Integration
Initiating Planning Executing
Monitoring
&
Controlling
Closing
· Human Resource
Planning
Project Scope Management
Project Time Management
Project Cost Management
Project Quality Management
Project HR
Management
94

91. Project Management
Integration
Initiating Planning Executing
Monitoring
&
Controlling
Closing
· Human Resource
Planning
· Acquire Project
Team
· Develop Project
Team
Project Scope Management
Project Time Management
Project Cost Management
Project Quality Management
Project HR
Management
95

92. Project Management
Integration
Initiating Planning Executing
Monitoring
&
Controlling
Closing
· Human Resource
Planning
· Acquire Project
Team
· Develop Project
Team
· Manage Project
Team
Project Scope Management
Project Time Management
Project Cost Management
Project Quality Management
Project HR
Management
96

93. Project Management
Integration
Initiating Planning Executing
Monitoring
&
Controlling
Closing
Project Scope Management
Project Time Management
Project Cost Management
Project Quality Management
Project HR Management
Project Communication
Management
Project Risk Management
Project Procurement
Management
97

94. Project Management
Integration
Initiating Planning Executing
Monitoring
&
Controlling
Closing
· Communication
Planning
Project Scope Management
Project Time Management
Project Cost Management
Project Quality Management
Project HR Management
Project
Communication
Management
98

95. Project Management
Integration
Initiating Planning Executing
Monitoring
&
Controlling
Closing
· Communication
Planning
· Information
Distribution
Project Scope Management
Project Time Management
Project Cost Management
Project Quality Management
Project HR Management
Project
Communication
Management
99

96. Project Management
Integration
Initiating Planning Executing
Monitoring
&
Controlling
Closing
· Communication
Planning
· Information
Distribution
· Performance
Reporting
· Manage
Stakeholders
Project Scope Management
Project Time Management
Project Cost Management
Project Quality Management
Project HR Management
Project
Communication
Management
100

97. Project Management
Integration
Initiating Planning Executing
Monitoring
&
Controlling
Closing
Project Scope Management
Project Time Management
Project Cost Management
Project Quality Management
Project HR Management
Project Communication
Management
Project Risk Management
Project Procurement
Management
101

98. Project Management
Integration
Initiating Planning Executing
Monitoring
&
Controlling
Closing
· Risk Management
Planning
· Risk Identification
· Qualitative Risk
Management
· Quantitative Risk
Management
· Risk Response
Planning
Project Scope Management
Project Time Management
Project Cost Management
Project Quality Management
Project HR Management
Project Communication
Management
Project Risk
Management
102

99. Project Management
Integration
Initiating Planning Executing
Monitoring
&
Controlling
Closing
· Risk Management
Planning
· Risk Identification
· Qualitative Risk
Management
· Quantitative Risk
Management
· Risk Response
Planning
· Risk Monitoring &
Control
Project Scope Management
Project Time Management
Project Cost Management
Project Quality Management
Project HR Management
Project Communication
Management
Project Risk
Management
103

100. Project Management
Integration
Initiating Planning Executing
Monitoring
&
Controlling
Closing
Project Scope Management
Project Time Management
Project Cost Management
Project Quality Management
Project HR Management
Project Communication
Management
Project Risk Management
Project Procurement
Management
104

101. Project Management
Integration
Initiating Planning Executing
Monitoring
&
Controlling
Closing
· Plan Purchase and
Acquisitions
· Plan Contracting
Project Scope Management
Project Time Management
Project Cost Management
Project Quality Management
Project HR Management
Project Communication
Management
Project Risk Management
Project
Procurement
Management
105

102. Project Management
Integration
Initiating Planning Executing
Monitoring
&
Controlling
Closing
· Plan Purchase and
Acquisitions
· Plan Contracting
· Request Seller
Responses
· Select Sellers
Project Scope Management
Project Time Management
Project Cost Management
Project Quality Management
Project HR Management
Project Communication
Management
Project Risk Management
Project
Procurement
Management
106

103. Project Management
Integration
Initiating Planning Executing
Monitoring
&
Controlling
Closing
· Plan Purchase and
Acquisitions
· Plan Contracting
· Request Seller
Responses
· Select Sellers
· Contract
Administration
Project Scope Management
Project Time Management
Project Cost Management
Project Quality Management
Project HR Management
Project Communication
Management
Project Risk Management
Project
Procurement
Management
107

104. Project Management
Integration
Initiating Planning Executing
Monitoring
&
Controlling
Closing
· Plan Purchase and
Acquisitions
· Plan Contracting
· Request Seller
Responses
· Select Sellers
· Contract
Administration
· Contract
Closure
Project Scope Management
Project Time Management
Project Cost Management
Project Quality Management
Project HR Management
Project Communication
Management
Project Risk Management
Project
Procurement
Management
108

105. Project Management
Integration
Initiating Planning Executing
Monitoring
&
Controlling
Closing
Project Scope Management
Project Time Management
Project Cost Management
Project Quality Management
Project HR Management
Project Communication
Management
Project Risk Management
Project Procurement
Management
109

106. Project Initiation
•Initiating a project includes recognizing and starting a new project or
project phase.
•Some organizations use a pre-initiation phase, while others include
items such as developing a business case as part of the initiation.
•The main goal is to formally select and start off projects.
•Key outputs include:
–Assigning the project manager.
–Identifying key stakeholders.
–Completing a business case.
–Completing a project charter and getting signatures on it.
110

107. Project Initiation Documents
•Business case
•Charter
•Every organization has its own variations of what
documents are required to initiate a project. It’s important
to identify the project need, stakeholders, and main
goals.
111

108. Project Planning
•The main purpose of project planning is to guide execution.
•Every knowledge area includes planning information
•Key outputs included in the JWD project include:
–A team contract.
–A scope statement.
–A work breakdown structure (WBS).
–A project schedule, in the form of a Gantt chart with all dependencies and
resources entered.
–A list of prioritized risks (part of a risk register).
112

109. Gantt Chart
113

110. Project Executing
•Project execution usually takes the most time and
resources.
•Project managers must use their leadership skills to
handle the many challenges that occur during
project execution.
•Many project sponsors and customers focus on
deliverables related to providing the products,
services, or results desired from the project.
•A milestone report can keep the focus on completing
major milestones.
114

111. Project Monitoring and Controlling
•Involves measuring progress toward project objectives,
monitoring deviation from the plan, and taking corrective
action to match progress with the plan.
•Affects all other process groups and occurs during all
phases of the project life cycle.
•Outputs include performance reports, requested changes,
and updates to various plans.
115

112. Project Closing
•Involves gaining stakeholder and customer acceptance of
the final products and services.
•Even if projects are not completed, they should be formally
closed in order to reflect on what can be learned to
improve future projects.
•Outputs include project archives and lessons learned,
which are part of organizational process assets.
•Most projects also include a final report and presentation
to the sponsor or senior management.
116

113. The Key to Overall Project Success: Good
Project Integration Management
•Project managers must coordinate all of the other
knowledge areas throughout a project’s life cycle.
•Many new project managers have trouble looking at the
“big picture” and want to focus on too many details.
•Project integration management is not the same thing as
software integration.
117

114. Project Integration Management
Processes
•Develop the project charter: Work with stakeholders to
create the document that formally authorizes a project—the
charter.
•Develop the preliminary project scope statement: Work
with stakeholders, especially users of the project’s products,
services, or results, to develop the high-level scope
requirements and create a preliminary project scope
statement.
•Develop the project management plan: Coordinate all
planning efforts to create a consistent, coherent document—
the project management plan.
118

115. Project Integration Management
Processes (cont’d)
•Direct and manage project execution: Carry out the
project management plan by performing the activities
included in it.
•Monitor and control the project work: Oversee project
work to meet the performance objectives of the project.
•Perform integrated change control: Coordinate changes
that affect the project’s deliverables and organizational
process assets.
•Close the project: Finalize all project activities to formally
close the project.
119

116. Strategic Planning and Project Selection
•Strategic planning involves determining long-term
objectives, predicting future trends, and projecting the need
for new products and services.
•Organizations often perform a SWOT analysis:
–Strengths, Weaknesses, Opportunities, and Threats
•As part of strategic planning, organizations should:
–Identify potential projects.
–Use realistic methods to select which projects to work on.
–Formalize project initiation by issuing a project charter.
120

117. PROJECT MANAGEMENT PROFESSIONAL
M.P.D.C
PROJECT MANAGEMENT PROFESSIONAL
M.P.D.C
SWOT = SITUATIONAL ANALYSIS
Where are we now?
121

118. S
T
W
O
Positive Negative
122

119. S
T
W
O
I
n
t
e
r
n
a
l
E
x
t
e
r
n
a
l
123

120. Methods for Selecting Projects
•There is usually not enough time or resources to
implement all projects.
•Methods for selecting projects include:
–Focusing on broad organizational needs.
–Categorizing information technology projects.
–Performing net present value or other financial analyses.
–Using a weighted scoring model.
–Implementing a balanced scorecard.
124

121. PROJECT MANAGEMENT PROFESSIONAL
M.P.D.C
PROJECT MANAGEMENT PROFESSIONAL
M.P.D.C
Focusing on Broad
Organizational Needs
•It is often difficult to provide strong justification for many IT
projects, but everyone agrees they have a high value.
•“It is better to measure gold roughly than to count pennies
precisely.”
•Three important criteria for projects:
–There is a need for the project.
–There are funds available for the project.
–There is a strong will to make the project succeed.
125

122. PROJECT MANAGEMENT PROFESSIONAL
M.P.D.C
PROJECT MANAGEMENT PROFESSIONAL
M.P.D.C
Financial Analysis of Projects
•Financial considerations are often an important aspect
of the project selection process.
•Three primary methods for determining the projected
financial value of projects:
–Net present value (NPV) analysis
–Return on investment (ROI)
–Payback analysis
127

123. PROJECT MANAGEMENT PROFESSIONAL
M.P.D.C
PROJECT MANAGEMENT PROFESSIONAL
M.P.D.C
Financial Analysis
$$$
Net Present
Value
Payback model
Return on
Investment
(there are more)
128

124. PROJECT MANAGEMENT PROFESSIONAL
M.P.D.C
PROJECT MANAGEMENT PROFESSIONAL
M.P.D.C
Net Present Value Analysis
•Net present value (NPV) analysis is a method of
calculating the expected net monetary gain or loss from a
project by discounting all expected future cash inflows and
outflows to the present point in time.
•Projects with a positive NPV should be considered if
financial value is a key criterion.
•The higher the NPV, the better.
129

125. PROJECT MANAGEMENT PROFESSIONAL
M.P.D.C
Net Present Value Example
Note that
totals are
equal, but
NPVs are
not
because of
the time
value of
money.
130

126. NPV Example
Multiply
by the
discount
factor each
year, then
subtract costs
from
cumulative
benefits to
get NPV.
The payback period is 1 year
131

127. PROJECT MANAGEMENT PROFESSIONAL
M.P.D.C
PROJECT MANAGEMENT PROFESSIONAL
M.P.D.C
NPV Calculations
•Determine estimated costs and benefits for the life of the
project and the products it produces.
•Determine the discount rate (check with your organization
on what to use).
•Calculate the NPV
•Some organizations consider the investment year as year
0, while others consider it year 1. Some people enter costs
as negative numbers, while others do not. Make sure to
identify your organization’s preferences.
132

128. Return on Investment
•Return on investment (ROI) is calculated by subtracting
the project costs from the benefits and then dividing by the
costs.
ROI = (total discounted benefits - total discounted costs) /
discounted costs
•The higher the ROI, the better.
•Many organizations have a required rate of return or
minimum acceptable rate of return on investment for
projects.
133

129. Payback Analysis
•Another important financial consideration is payback
analysis.
•The payback period is the amount of time it will take to
recoup, in the form of net cash inflows, the total dollars
invested in a project.
•Payback occurs when the cumulative discounted
benefits and costs are greater than zero.
•Many organizations want IT projects to have a fairly
short payback period.
134

130. Non-financial Analysis
$$$
Weighted Scoring
Model
Balanced Scorecard
135

131. PROJECT MANAGEMENT PROFESSIONAL
M.P.D.C
PROJECT MANAGEMENT PROFESSIONAL
M.P.D.C
Weighted Scoring Model
•A weighted scoring model is a tool that provides a systematic
process for selecting projects based on many criteria.
•Steps in identifying a weighted scoring model:
1.Identify criteria important to the project selection process.
2.Assign weights (percentages) to each criterion so they add up to 100
percent.
3.Assign scores to each criterion for each project.
4.Multiply the scores by the weights to get the total weighted scores.
•The higher the weighted score, the better.
136

132. Sample Weighted Scoring Model for
Project Selection
137

133. Implementing a Balanced Scorecard
•Drs. Robert Kaplan and David Norton developed this
approach to help select and manage projects that align
with business strategy.
•A balanced scorecard is a methodology that converts an
organization’s value drivers, such as financial perspective,
customer perspective, Operation perspective, Lifelong
learning perspective.
•See www.balancedscorecard.org for more information.
138

134. Project Charters
•After deciding what project to work on, it is important to
let the rest of the organization know.
•A project charter is a document that formally
recognizes the existence of a project and provides
direction on the project’s objectives and management.
•Key project stakeholders should sign a project charter to
acknowledge agreement on the need and intent of the
project; a signed charter is a key output of project
integration management.
139

135. Preliminary
Scope Statements
•A scope statement is a document used to develop and
confirm a common understanding of the project scope.
•It is an important tool for preventing scope creep:
–The tendency for project scope to keep getting bigger.
•A good practice is to develop a preliminary or initial
scope statement during project initiation and a more
detailed scope statement as the project progresses.
140

136. Project Management Plans
•A project management plan is a document used to
coordinate all project planning documents and help
guide a project’s execution and control.
•Plans created in the other knowledge areas are
subsidiary parts of the overall project management plan.
142

137. Attributes of Project Plans
•Just as projects are unique, so are project plans.
•Plans should be:
–Dynamic
–Flexible
–Updated as changes occur
•Plans should first and foremost guide project execution
by helping the project manager lead the project team
and assess project status.
143

138. Common Elements of a Project
Management Plan
•Introduction or overview of the project.
•Description of how the project is organized.
•Management and technical processes used on the
project.
•Work to be done, schedule, and budget information.
144

139. Stakeholder Analysis
•A stakeholder analysis documents important (often
sensitive) information about stakeholders such as:
–Stakeholders’ names and organizations.
–Their roles on the project.
–Unique facts about each stakeholder.
–Their level of influence on and interest in the project.
–Suggestions for managing relationships with each stakeholder.
146

140. Table 4-2. Sample Stakeholder Analysis
147

141. Project Execution
•Project execution involves managing and performing the
work described in the project management plan.
•The majority of time and money is usually spent on
execution.
•The application area of the project directly affects project
execution because the products of the project are
produced during project execution.
148

142. Coordinating Planning and Execution
•Project planning and execution are intertwined and
inseparable activities.
•Those who will do the work should help to plan the work.
•Project managers must solicit input from the team to
develop realistic plans.
149

143. Leadership and a Supportive Culture
•Project managers must lead by example to demonstrate
the importance of creating and then following good project
plans.
•Organizational culture can help project execution by:
–Providing guidelines and templates.
–Tracking performance based on plans.
•Project managers may still need to break the rules to meet
project goals, and senior managers must support those
actions.
150

144. Important Skills for Project Execution
•General management skills such as leadership,
communication, and political skills.
•Product, business, and application area skills and
knowledge.
•Use of specialized tools and techniques.
151

145. Project Execution Tools and
Techniques
•Project management methodology: Many experienced project
managers believe the most effective way to improve project
management is to follow a methodology that describes not only
what to do in managing a project, but how to do it.
•Project management information systems: Hundreds of project
management software products are available on the market today,
and many organizations are moving toward powerful enterprise
project management systems that are accessible via the Internet.
152

146. Monitoring and Controlling
Project Work
•Changes are inevitable on most projects, so it’s
important to develop and follow a process to monitor and
control changes.
•Monitoring project work includes collecting, measuring,
and disseminating performance information.
•Two important outputs of monitoring and controlling
project work include recommended corrective and
preventive actions.
153

147. Integrated Change Control
•Three main objectives are:
–Influence the factors that create changes to ensure that
changes are beneficial.
–Determine that a change has occurred.
–Manage actual changes as they occur.
•A baseline is the approved project management plan
plus approved changes.
154

148. Change Control System
•A formal, documented process that describes when and
how official project documents and work may be
changed.
•Describes who is authorized to make changes and how
to make them.
156

149. Change Control Boards (CCBs)
•A formal group of people responsible for approving or
rejecting changes on a project.
•CCBs provide guidelines for preparing change requests,
evaluate change requests, and manage the
implementation of approved changes.
•CCBs include stakeholders from the entire organization.
157

150. Making Timely Changes
•Some CCBs only meet occasionally, so it may take too
long for changes to occur.
•Some organizations have policies in place for time-
sensitive changes.
–A “48-hour policy” allows project team members to make a
decision and have 48 hours to seek approval from top
management. If the team decision cannot be implemented,
management has 48 hours to reverse a decision; otherwise, the
team’s decision is approved.
–Another policy is to delegate changes to the lowest level
possible, but keep everyone informed of changes.
158

151. Configuration Management
•Ensures that the descriptions of the project’s products
are correct and complete.
•Involves identifying and controlling the functional and
physical design characteristics of products and their
support documentation.
•Configuration management specialists identify and
document configuration requirements, control changes,
record and report changes, and audit the products to
verify conformance to requirements.
159

152. Suggestions for
Managing Integrated Change Control
•View project management as a process of constant communication and
negotiation.
•Plan for change.
•Establish a formal change control system, including a change control
board (CCB).
•Use good configuration management.
•Define procedures for making timely decisions on smaller changes.
•Use written and oral performance reports to help identify and manage
change.
•Use project management and other software to help manage and
communicate changes.
160

153. Closing Projects
•To close a project, you must finalize all activities and
transfer the completed or cancelled work to the
appropriate people.
•Main outputs include:
–Administrative closure procedures.
–Contract closure procedures.
–Final products, services, or results.
–Organizational process asset updates.
161

154. Using Software to Assist in Project
Integration Management
•Several types of software can be used to assist in project
integration management:
–Word processing software creates documents.
–Presentation software creates presentations.
–Spreadsheets or databases perform tracking.
–Communication software such as e-mail and Web authoring tools
facilitate communications.
–Project management software can pull everything together and
show detailed and summarized information.
162

155. What is Project Scope Management?
•Scope refers to all the work involved in creating the
products of the project and the processes used to create
them.
• A deliverable is a product produced as part of a project,
such as hardware or software, planning documents, or
meeting minutes.
•Project scope management includes the processes
involved in defining and controlling what is or is not
included in a project.
163

156. Project Scope Management Processes
•Scope planning: Deciding how the scope will be defined,
verified, and controlled.
•Scope definition: Reviewing the project charter and
preliminary scope statement and adding more information as
requirements are developed and change requests are
approved.
•Creating the WBS: Subdividing the major project
deliverables into smaller, more manageable components.
•Scope verification: Formalizing acceptance of the project
scope.
•Scope control: Controlling changes to project scope.
164

157. Sample
Project
Charter
166

158. Sample Project
Charter (cont’d)
167

159. Scope Definition and the
Project Scope Statement
•The preliminary scope statement, project charter,
organizational process assets, and approved change
requests provide a basis for creating the project scope
statement.
•As time progresses, the scope of a project should
become clearer and more specific.
168

160. Further Defining Project Scope
169

161. w
b
s
work
breakdown
structure
170

162. Creating the Work Breakdown
Structure (WBS)
•A WBS is a deliverable-oriented grouping of the work
involved in a project that defines the total scope of the
project.
•A WBS is a foundation document that provides the basis
for planning and managing project schedules, costs,
resources, and changes.
•Decomposition is subdividing project deliverables into
smaller pieces.
171

163. Sample Intranet WBS
Organized by Product
172

164. Sample Intranet WBS
Organized by Phase
173

165. Intranet WBS in Tabular Form
1.0 Concept
1.1 Evaluate current systems
1.2 Define requirements
1.2.1 Define user requirements
1.2.2 Define content requirements
1.2.3 Define system requirements
1.2.4 Define server owner requirements
1.3 Define specific functionality
1.4 Define risks and risk management approach
1.5 Develop project plan
1.6 Brief Web development team
2.0 Web Site Design
3.0 Web Site Development
4.0 Roll Out
5.0 Support
174

166. Intranet WBS and Gantt Chart
in Project 2000
Project 98 file
175

167. Intranet Gantt Chart Organized by Project
Management Process Groups
176

168. Approaches to Developing WBSs
•Guidelines: Some organizations, such as the DOD,
provide guidelines for preparing WBSs.
•Analogy approach: Review WBSs of similar projects and
tailor to your project.
•Top-down approach: Start with the largest items of the
project and break them down.
•Bottom-up approach: Start with the specific tasks and roll
them up.
•Mind-mapping approach: Write tasks in a non-linear,
branching format and then create the WBS structure.
178

169. Sample Mind-Mapping Approach
179

170. Resulting WBS in Chart Form
180

171. The WBS Dictionary and Scope Baseline
•Many WBS tasks are vague and must be explained in
more detail so people know what to do and can estimate
how long the work will take and what it will cost.
•A WBS dictionary is a document that describes detailed
information about each WBS item.
•The approved project scope statement and its WBS and
WBS dictionary form the scope baseline, which is used to
measure performance in meeting project scope goals.
181

172. r
a
m
responsibility
assignment
matrix
184

173. Task 1
Task 2
Task 3
Task 4
Task 5
Task 6
Person 1 Person 2 Person 3 Person 4
R
R
R
R
R
R
185

174. Scope Verification
•It is very difficult to create a good scope statement and WBS for a
project.
•It is even more difficult to verify project scope and minimize scope
changes.
•Many IT projects suffer from scope creep and poor scope verification
–FoxMeyer Drug filed for bankruptcy after scope creep on a robotic
warehouse.
–Engineers at Grumman called a system “Naziware” and refused to use it.
–21
st
Century Insurance Group wasted a lot of time and money on a project
that could have used off-the-shelf components.
186

175. Scope Control
•Scope control involves controlling changes to the
project scope.
•Goals of scope control are to:
–Influence the factors that cause scope changes.
–Ensure changes are processed according to procedures developed as
part of integrated change control.
–Manage changes when they occur.
•Variance is the difference between planned and actual
performance.
187

176. Suggestions for Improving User Input
•Develop a good project selection process and insist that
sponsors are from the user organization.
•Place users on the project team in important roles.
•Hold regular meetings with defined agendas, and have
users sign off on key deliverables presented at meetings.
•Deliver something to users and sponsors on a regular
basis.
•Don’t promise to deliver when you know you can’t.
•Co-locate users with developers.
188

177. Using Software to Assist in Project
Scope Management
•Word-processing software helps create scope-related
documents.
•Spreadsheets help perform financial calculations and weighed
scoring models, and help develop charts and graphs.
•Communication software, such as e-mail and the Web, helps
clarify and communicate scope information.
•Project management software helps create a WBS, the basis
for tasks on a Gantt chart.
•Specialized software is available to assist in project scope
management.
190

178. Importance of Project Schedules
•Managers often cite delivering projects on time as one of
their biggest challenges.
•Fifty percent of IT projects were challenged in the 2003
CHAOS study, and their average time overrun increased to
82 percent from a low of 63 percent in 2000.*
•Schedule issues are the main reason for conflicts on projects,
especially during the second half of projects.
•Time has the least amount of flexibility; it passes no matter
what happens on a project.
*The Standish Group, “Latest Standish Group CHAOS Report Shows Project Success Rates
Have Improved by 50%,” (www.standishgroup.com) (March 25, 2003).
191

179. Individual Work Styles and Cultural
Differences Cause Schedule Conflicts
•One dimension of the Myers-Briggs Type Indicator focuses
on people’s attitudes toward structure and deadline.
•Some people prefer to follow schedules and meet
deadlines while others do not.
•Different cultures and even entire countries have different
attitudes about schedules.
192

180. Project Time Management
Processes
•Activity definition: Identifying the specific activities that the project
team members and stakeholders must perform to produce the project
deliverables.
•Activity sequencing: Identifying and documenting the relationships
between project activities.
•Activity resource estimating: Estimating how many resources a
project team should use to perform project activities.
•Activity duration estimating: Estimating the number of work
periods that are needed to complete individual activities.
•Schedule development: Analyzing activity sequences, activity
resource estimates, and activity duration estimates to create the
project schedule.
•Schedule control: Controlling and managing changes to the project
schedule.
193

181. Activity Definition
•An activity or task is an element of work normally found on
the WBS that has an expected duration, a cost, and resource
requirements.
•Project schedules grow out of the basic documents that
initiate a project.
–The project charter includes start and end dates and budget
information.
–The scope statement and WBS help define what will be done.
•Activity definition involves developing a more detailed WBS
and supporting explanations to understand all the work to be
done, so you can develop realistic cost and duration
estimates.
194

182. Activity Lists and Attributes
•An activity list is a tabulation of activities to be included on a
project schedule. The list should include:
–The activity name
–An activity identifier or number
–A brief description of the activity
•Activity attributes provide more information about each
activity, such as predecessors, successors, logical
relationships, leads and lags, resource requirements,
constraints, imposed dates, and assumptions related to the
activity.
195

183. Milestones
•A milestone is a significant event that normally has no
duration.
•It often takes several activities and a lot of work to
complete a milestone.
•Milestones are useful tools for setting schedule goals and
monitoring progress.
•Examples include completion and customer sign-off on
key documents and completion of specific products.
196

184. Activity Sequencing
•Involves reviewing activities and determining
dependencies.
•A dependency or relationship relates to the sequencing
of project activities or tasks.
•You must determine dependencies in order to use critical
path analysis.
197

185. Three Types of Dependencies
•Mandatory dependencies: Inherent in the nature of the
work being performed on a project; sometimes referred
to as hard logic.
•Discretionary dependencies: Defined by the project
team; sometimes referred to as soft logic and should be
used with care because they may limit later scheduling
options.
•External dependencies: Involve relationships between
project and non-project activities.
198