Project Management Fundamentals

This section helps to build the fundamentals and basic concepts of project management.

What is a Project – A project is a temporary endeavor undertaken to create a unique product, service or result.

Temporary means definite start and definite finish and not like operations. Temporary doesn’t mean that the duration of the project is short. Projects can be short span and long span. Temporary, also, doesn’t mean that the life of the product being provided by the project is short. Rather majority of the projects provide long lasting products like flyovers, buildings, etc.

Unique means every project delivers unique product, service or result even if it has been done so many times in the past. This uniqueness comes because of difference in requirements, interfaces, geographical locations which also include local laws.

Difference between Project and Operation

Project	Operations
Temporary Endeavor	Ongoing Endeavor
Delivers unique product	Use same product repetitively
Means of achieving strategic plan of an organization	Maintain ongoing business

Strategic Plan examples:

1 – Growth Plan [$6B to $10B – Convert into projects]
2 – Increase market share [10% to 20% – Convert into projects]
3 – Increase ROI [5% to 10% – Convert into projects (Mainly Process Improvements)]

Conditions under which project may get terminated:
1 – Meets requirements
2 – Realized that this project cannot meet the needs
3 – Need for which the project was undertaken is no longer there
4 – Client wishes to terminate the project

What is Project Management – Project Management means application of knowledge, skills, tools & techniques to project activities to meet project requirements.

Managing a project involves:

1 – Identify requirements
2 – Meeting needs and expectations of the stakeholders during planning and execution
3 – Ensuring appropriate communication and stakeholder engagement

4 – Balancing competing project constraints

Project Constraints – Scope, Schedule, Cost, Quality, Resources, Risk. Change in one constraint impact other constraints. Whenever, a change is requested in one constraint, we should evaluate its impact on other constraints and implement it only after review and approval from the change control board.

Processes: Project Management consists of 49 processes which are organized under 5 Process Groups as below:

1 – Initiating – 2
2 – Planning – 24
3 – Executing – 10

4 – Monitoring & Controlling – 12

5 – Closing – 1

Program – A program is a group of related projects, which are managed in the coordinated manner to obtain benefits which would not be obtained if they are managed individually.

Portfolio – A portfolio is a collection of projects & programs, which are selected to achieve business objectives of an organization. Portfolio Management group is the highest level decision making group in any organization. It is also known as strategy group.

Functions of Project Management Office (PMO):

1 – Collect historical information and lessons learned from all projects and provide this knowledge base for the guidance of future projects.
2 – Develop Project Management methodologies, practices and templates and provide for use on the project and monitor compliance.
3 – Allocates shared resources among the projects

4 – To prioritize projects

5 – Manage projects directly when empowered to do it

6 – Communicates across the projects

7 – Provides project management training, coaching and mentoring to improve project management competence.

Types of Project Management Office:

1 – Supportive PMO – Provides project management methodologies, practices, training, and templates.
2 – Controlling PMO – Monitors compliance of project management methodologies, practices, training, and templates.
3 – Directive PMO – Directly manage projects

Project Life-cycle: Project life-cycle is a series of phases that a project passes through.

1 – Predictive Life-cycle – It is plan driven where scope, time and cost are determined as early as possible. It is used when the scope is fully known from the beginning of the project.
2 – Iterative & Incremental Life-cycle – Here the product is developed in iterative and incremental fashion. It is used when the project is large, complex, and has lots of risks.
3 – Adaptive Life-cycle – It is change driven. It is also called agile methods. Here the iterations are rapid where the duration is of 2 to 4 weeks. It is used in dynamic environments where lots of changes are expected.

Organization Structures:

1 – Functional – Functional Managers are most powerful. Project Manager has no or very less power. It is ideal for manufacturing but not for projects.
2 – Matrix –

a. Weak Matrix – It is like Functional only. Functional Manager are most powerful. Role of Project Manager is more like Expeditor or Coordinator than a Manager.

b. Balanced Matrix – Power is balanced between Functional Manager and Project Manager. Team members report to two managers.

c. Strong Matrix – Project Manager is more powerful than Functional Manager. Project Manager role is regular one.

3 – Projectized – Project Manager is most powerful. Functional Manager either reports to Project Manager or provide support services.

Difference between Project Expeditor and Project Coordinator:

1 – Project Expeditor – Cannot make any decisions.
2 – Project Coordinator – Can make some decisions.

Project Information:

1 – Work Performance Data – It is data of actual performance. Example: Actual Scope Completed, Actual Time Taken, Actual Cost Spent, Actual Quality Created.
2 – Work Performance Information – It is measurement of variance. We get it when we compare Actual with Plan. Example: Schedule Variance, Cost Variance.

3 – Work Performance Report – It is the conversion of Work Performance Information in the report format.

Project Management Insights

Step 1 – Conduct need analysis and feasibility study
Step 2 – Prepare business case for the project which provides justification for the investment
Step 3 – Authorize the project

Step 4 – Identify stakeholders

Step 5 – Collect requirement and baseline them

When we collect requirements from the stakeholders, we use many techniques so that we don’t miss out any requirement. After the requirements have been collected, we get them agreed and approved with the understanding that any change in the future will happen through change control procedures.

Standard Change Control Procedures

Step 1 – Change Request
Step 2 – Evaluation & Impact Analysis on Scope, Cost, Time, Quality, Resources, and Risk.
Step 3 – Recommend it to “CCB” for approval

Step 4 – CCB reviews and then approves or rejects

Step 5 – Implement approved change requests

Project Stakeholders – Any person or organization who is either involved in the project or his/her interest is impacted by the project. Positive Stakeholders are those who supports the project and Negative Stakeholders are those who oppose the project. Examples of Stakeholders

1 – Those who give requirements
2 – Those who provide contribution (resources, technical)
3 – Those who review and sign-off
4 – Regulatory Authorities

5 – Customers
6 – End-users
7 – Sponsors
8 – Suppliers / Contractors
9 – Business Partners

Projects are authorized in response to:

1 – Market Demand

2 – Customer Request

3 – Business Need / Strategy

4 – Technological Advancement / Opportunity

5 – Social Need

6 – Legal Need

7 – Ecological Considerations

Official definition of project success: Completing the project within constraints of scope, time, cost, quality, resources, and risk as approved between Project Manager and Senior Management.

Exercise: Answer at-least 80% of the questions correctly in order to master the topic.
20 Questions Challenge
50 Questions Challenge

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