MBP1133 Project Management Framework Prepared by Dr Khairul Anuar

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1 MBP1133 Project Management Framework Prepared by Dr Khairul Anuar L1 The Project Environment 1

2 Lecture Topics 1. Introduction 2. Understanding Project Management 3. Overview of Project Management 4. Project Management according to PMBOK Guide 5. What is a Successful Project Management 6. Benefits of Project Management 7. Obstacles in Project Management 8. Project Deliverables 9. Project Stakeholders 10. Defining Project Success 11. Defining the Project Manager s Role 12. Project Scope and Product Scope 13. Project Management Success Factors 14. Project Management Failure 15. Project Life Cycle 16. Integrated Processes of Project Management 17. Integrated Processes of Project Management 2

3 1. Introduction PM started about 40 years ago in the US in the Department of Defense contractors and construction companies. Today, the concept behind project management is being applied in such diverse industries and organizations as defense, construction, pharmaceuticals, chemicals, banking, hospitals, accounting, advertising, law, state and local governments, and the United Nations and even transitional planning for a new US president (Romney Readiness Project, in 2012), and NGOs/disaster relief organisation 3

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5 2. Understanding Project Management A project can be considered to be any series of activities and tasks that: Have a specific objective to be completed within certain specifications Have defined start and end dates Have funding limits (if applicable) Consume human and nonhuman resources (i.e., money, people, equipment) Are multifunctional (i.e., cut across several functional lines) 5

6 3. Overview of Project Management Figure 1 2 is a pictorial representation of project management. The objective of the figure is to show that project management is designed to manage or control company resources on a given activity, within time, within cost, and within performance. Time, cost, and performance are the constraints on the project. If the project is to be accomplished for an outside customer, then the project has a fourth constraint: good customer relations. 6

7 3. Overview of Project Management 7

8 4. Project Management according to PMBOK Guide Under the PMBOK Guide, Project management involves five process groups: 1. Project initiation Selection of the best project given resource limits Recognizing the benefits of the project Preparation of the documents to sanction the project Assigning of the project manager 2. Project planning Definition of the work requirements Definition of the quality and quantity of work Definition of the resources needed Scheduling the activities Evaluation of the various risks 8

9 4. Project Management according to PMBOK Guide 3. Project execution Negotiating for the project team members Directing and managing the work Working with the team members to help them improve 4. Project monitoring and control Tracking progress Comparing actual outcome to predicted outcome Analyzing variances and impacts Making adjustments 5. Project closure Verifying that all of the work has been accomplished Contractual closure of the contract Financial closure of the charge numbers Administrative closure of the paperwork 9

10 5. What is a Successful Project Management Successful project management can then be defined as having achieved the project objectives: Within time Within cost At the desired performance/technology level While utilizing the assigned resources effectively and efficiently Accepted by the customer 10

11 6. Benefits of Project Management The potential benefits from project management are: Identification of functional responsibilities to ensure that all activities are accounted for, regardless of personnel turnover Minimizing the need for continuous reporting Identification of time limits for scheduling Identification of a methodology for trade-off analysis 11

12 6. Benefits of Project Management Measurement of accomplishment against plans Early identification of problems so that corrective action may follow Improved estimating capability for future planning Knowing when objectives cannot be met or will be exceeded 12

13 7. Obstacles in Project Management Unfortunately, the benefits cannot be achieved without overcoming obstacles such as: Project complexity Customer s special requirements and scope changes Organizational restructuring Project risks Changes in technology Forward planning and pricing 13

14 8. Project Deliverables Deliverables are outputs, or the end result of either the completion of the project or the end of a life-cycle phase of the project. Deliverables are measurable, tangible outputs and can take such form as: Hardware Deliverables: These are hardware items, such as a table, a prototype, or a piece of equipment. Software Deliverables: These items are similar to hardware deliverables but are usually paper products, such as reports, studies, handouts, or documentation. Some companies do not differentiate between hardware and software deliverables. Interim Deliverables: These items can be either hardware or software deliverables and progressively evolve as the project proceeds. An example might be a series of interim reports leading up to the final report. 14

15 9. Project Stakeholders Stakeholders are individuals or organizations that can be favorably or unfavorably impacted by the project. As such, project managers must interface with these stakeholders, and many of the stakeholders can exert their influence or pressure over the direction of the project. 15

16 9. Project Stakeholders Some stakeholders are referred to as active or key stakeholders that can possess decision-making authority during the execution of the project. Each stakeholder can have his or her own set of objectives, and this could place the project manager in a position of having to balance a variety of stakeholder interests without creating a conflict-of-interest situation for the project manager. 16

17 9. Project Stakeholders Organizational stakeholders Executive officers Line managers Employees Unions Capital market stakeholders Shareholders Creditors Banks Product/market stakeholders Customers Suppliers Local committees Governments (local, state, and federal) General public 17

18 10. Defining Project Success In the previous section, we defined project success as the completion of an activity within the constraints of time, cost, and performance. However, a modified definition of project success has been will include completion: Within the allocated time period Within the budgeted cost At the proper performance or specification level With acceptance by the customer/user With minimum or mutually agreed upon scope changes Without disturbing the main work flow of the organization Without changing the corporate culture 18

19 11. Defining the Project Manager s Role The project manager is responsible for coordinating and integrating activities across multiple, functional lines. The integration activities performed by the project manager include: Integrating the activities necessary to develop a project plan Integrating the activities necessary to execute the plan Integrating the activities necessary to make changes to the plan These integrative responsibilities are shown in Figure 1 3 where the project manager must convert the inputs (i.e., resources) into outputs of products, services, and ultimately profits. 19

20 11. Defining the Project Manager s Role These integrative responsibilities are shown in Figure 1 3 where the project manager must convert the inputs (i.e., resources) into outputs of products, services, and ultimately profits. 20

21 12. Project Scope and Product Scope Project scope defines the work that must be accomplished to produce a deliverable with specified features or functions. The deliverable can be a product, service, or other result. Product scope defines the features or functions that characterize the deliverable. The product manager wants his product to be as long-lived as possible and as profitable as possible. Even when the demand for the product diminishes, the product manager will always look for spin-offs to keep a product alive. 21

22 13. Project Management Success Factors 22

23 14. Project Management Failure Ineffective planning Ineffective scheduling Ineffective estimating Ineffective cost control Project objectives being moving targets 23

24 15. Project Life Cycle The theoretical definitions of the life-cycle phases of a system can be applied to a project. These phases include: Conceptual Planning Testing Implementation Closure 24

25 15. Project Life Cycle 25

26 15. Project Life Cycle 26

27 15. Project Life Cycle 27

28 16. Integrated Processes of Project Management The following processes were integrated into a single methodology: Project Management: The basic principles of planning, scheduling, and controlling work Total Quality Management: The process of ensuring that the end result will meet the quality expectations of the customer Concurrent Engineering: The process of performing work in parallel rather than series in order to compress the schedule without incurring serious risks Scope Change Control: The process of controlling the configuration of the end result such that value added is provided to the customer Risk Management: The process of identifying, quantifying, and responding to the risks of the project without any material impact on the project s objectives 28

29 17. Integrated Processes of Project Management 29

30 17. Integrated Processes of Project Management 30