Introduction to Project

Management

Ground Rules
1. Mobiles in switch off or Silent modes
2. One person at a times speaks

3. I am not here to teach you but give

you industry perspective
2

World Interesting Projects

Constraints :
Effective:
Efficiency
4

Godzilla Bridge
The Brooklyn Bridge is a bridge in New York City and is
one of the oldest suspension bridges in the United States.
Completed in 1883, it connects the boroughs of Manhattan
and Brooklyn by spanning the East River. It has a main span
of 1,595.5 feet (486.3 m), and was the first steel-wire
suspension bridge constructed. The Brooklyn Bridge was
opened for use on May 24, 1883

The Brooklyn Bridge was initially designed by German immigrant John Augustus
Roebling
While conducting surveys for the bridge project, Roebling sustained a crush injury to
his foot when a ferry pinned it against a piling. After amputation of his crushed toes he
developed a tetanus infection which left him incapacitated and soon resulted in his
death.
his 32-year-old son Washington Roebling in charge of the project. Washington Roebling
also suffered a paralyzing injury as a result of decompression sickness shortly after the
beginning of construction on January 3, 1870
his wife Emily Warren Roebling who provided the critical written link between her
husband and the engineers on site. Under her husband's guidance, Emily studied higher
mathematics, the calculations of catenary curves, the strengths of materials, bridge
specifications, and the intricacies of cable construction. She spent the next 11 years
assisting Washington Roebling, helping to supervise the bridge's construction.

Apollo-13 3rd lunar

landing
11-Apr-70
Crew:
James A. Lovell, Jr.
John L. Swigert, Jr.
Fred W. Haise, Jr.
Mission Objective:
Apollo 13 was supposed to land in
the Fra Mauro area. An explosion
on board forced

Divided the 2 continent & connected 2 oceans Panama Canal

77.1-kilometre (48 mi) ship
canal in Panama
France began work on the canal
in 1881, but had to stop because
of engineering problems and
high mortality due to disease.
The United States took over the
project in 1904, and took a
decade to complete the canal,
which was officially opened on
August 15, 1914

Health risks posed to workers in the mosquito-infested Panamanian jungle,

principally malaria and yellow fever, cost thousands of lives. Public health
measures were ineffective because the role of the mosquito as a disease vector was
then unknown. Beyond the health and technical difficulties, financial
mismanagement and political corruption also contributed to the French failure.

Advantages of Using Formal

Project Management
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
9

Other important factors

Handling different Govt Agencies like pollution etc.
Handling your locality villagers etc.
Providing basic facilities like power, school etc. at

mega sites
Handling of Activists & disturbing elements
Unexpected economic recession / political instability
Decisions overrule by Govt of previous Govt
Nano at Singrur, Al Plant of Vedenta, Tata Banagalore
airport, Enron Dhabol project, Nuclear projects
10

Project Management
Statistics

The U.S. spends $2.3 trillion on projects every

year, an amount equal to one-quarter of the

nations gross domestic product.
The world as a whole spends nearly $10 trillion of

its $40.7 trillion gross product on projects of all

kinds.
More than sixteen million people regard project

management as their profession; on average, a

project manager earns more than $82,000 per
year.*
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More Information
on Project Management
More than half a million new information

technology (IT) application development

projects were initiated during 2001, up from
300,000 in 2000.*

Famous business authors and consultants

are stressing the importance of project

management. As Tom Peters writes in his
book, Reinventing Work: the Project 50, To
win today you must master the art of the
project!
*The Standish Group, CHAOS 2001: A Recipe for Success

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Motivation for Studying

Information Technology (IT)
Project Management
IT projects have a terrible track record
A 1995 Standish Group study (CHAOS) found that only

16.2% of IT projects were successful and over 31%

were canceled before completion, costing over $81 B in
the U.S. alone
The need for IT projects keeps increasing
In 2000, there were 300,000 new IT projects
In 2001, over 500,000 new IT projects were started

13

What Is a Project?
A project is a temporary endeavor undertaken to

accomplish a unique product or service

Attributes of projects
unique purpose
temporary
require resources, often from various areas
should have a primary sponsor and/or customer
involve uncertainty

14

The Triple Constraint

Every project is constrained in different ways by its
Scope goals: What is the project trying to accomplish?
Time goals: How long should it take to complete?
Cost goals: What should it cost?

It is the project managers duty to balance these three

often competing goals

15

The Triple Constraint of Project

Management

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A bird Eye View

Project Management
Processes
Planning

Managerial

Technical

Quality
Management
Risk
Management
HR
Management
Configuration
Management

Scheduling

Context
Control

Project Management Tools

Communication & Reporting

Procurement
Management

Project Management
Complex and numerous activities
Unique - a one time set of events
Finite - a begin and end date
Limited resources and budget
Many people involved
Sequenced activities
End product or service must result

What is Project
Management?
Project management is the application of knowledge,
skills, tools, and techniques to project activities in order
to meet project requirements

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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
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Information Technology Project

Management, Fourth Edition

Project Management
Framework

21

Project Stakeholders
Stakeholders are the people involved in or affected

by project activities
Stakeholders include
the project sponsor and project team
support staff
customers
users
suppliers
opponents to the project

22

9 Project Management
Knowledge Areas
Knowledge areas describe the key competencies that

project managers must develop

4 core knowledge areas lead to specific project

objectives (scope, time, cost, and quality)

4 facilitating knowledge areas are the means through
which the project objectives are achieved (human
resources, communication, risk, and procurement
management)
1 knowledge area (project integration management)
affects and is affected by all of the other knowledge
areas

23

Factors in Project Success

Project Management Philosophy
Project Management Role and Responsibility
Project Management Principles and Practices

Project Management Philosophy

The Golden Rule of Project Management is

three words:
Plan
Organize
Control

Project Management Roles and

Responsibilities
Project Execution
Maintain Customer Relations
Create a Positive Environment

Project Execution Plan

Project Execution Strategy
Project Management
Quality
Safety
Risk Management
Design/Develop/Program
Implementation
Documentation
Training

Customer
Relations
Develop Communication
Ensure Timely

Participation
Include the Customer on
the Project Team
Develop Trust and
Confidence

Create a Positive
Environment
__________ Effectively
__________ Member of the Team
Utilize _______ _______ Activities
__________ Success

Maintain a safe working environment

Safet
y

Project Management Principles

and Practices
Define Project Objectives
Develop Project Execution Plan
Define Baselines for Control
Manage Risk
Close out Effectively

Define Project Objectives

Expected deliverables
Required resources (total installed cost)
Required timing (opening date)
Safety and Environmental
Total Quality

Define S.M.A.R.T. Project

Objectives
S pecific
M easurable
A ssignable
R ealistic
T ime related

Alignment Process

Team Requirements
Skills needed ?
Individuals identified ?
When are they needed ?
Where are they ?
Training needed ?
Interpersonal compatibility ?

The Four Cornerstones

of Project Management
Cost

Schedule

Scope

Quality

Cornerstones of
Project Management

Cost

Scope

Schedule

Quality

Scope
Poor scope definition is the major
contributing factor to cost
overruns in the engineering and
construction industry.
CAUTION

Initial Scoping Effort

Sets the baseline for cost and schedule
Must involve the right people
Must include implementation
Identifies items not included
Maximum influence on project cost
Breaks project into manageable pieces

The WBS
Drawings

Estimate

Facility
Services

WBS Element/
Work Package

Schedule

Cost
Reports

Contracts

Bill
of
Materials

Successful Work Breakdown

Status and completion is easily measured
Definite beginning and end
It is familiar with prior experience
Manageable work assignments
One continuous stream of work from start to finish

Steps for constructing a WBS

Divide the project into major objectives
Partition objectives into activities
Divide activities with missing characteristics

into subactivities
Repeat #3 until all subactivities have desired
characteristics
Lowest subactivities are the basis of work
packages

Creeping scope
The effect of creeping scope is
a major cause of cost overruns

To manage creeping scope

Keep scope documents current
Freeze design after the estimate has been

approved
Allow only those changes that are justified by
benefit
Use an effective change management procedure

The Four Commandments

of Good Project Scope
Written
Well defined
Clearly understood
Achievable

Cornerstones of
Project Management
Cost

Scope

Schedule

Quality

Aspects of Cost
Estimate

Basis for Control

Cost Control
Application of
control procedures
to follow
financial
progress

Estimate Requirements
Define project cost

integrate scope, schedule, and

Define estimate basis

Identify potential risks
Identify contingency/escalation
Identify items not included

resources

Elements of Cost
Control
Establish the baseline (estimate)
Measure variation from baseline
Take corrective action

Cost Control System

Detailed project scope/work package
Control estimate
Chart of accounts
Cost status report
Forecasting process
Change management procedure
Cash flow forecast

Project Control

Project
Day 1
-------------To do list:
Kick off meeting
Project schedule

Integration of Cost and Time

Basic Elements of the

Control System
A project plan: Scope, schedule, estimates
A monitoring system which measures performance

against plan
A reporting system which identifies deviations from the
plan
A system which communicates deviations to the right
people
Corrective actions
Forecasting the project outcome

Key Control Philosophies

Define the baseline for control

1._______ 2. ________
_______ 4. ________
Divide project into manageable pieces
Remember: Ability to influence cost is

maximum early in the project

3.

Key Control Philosophies

(cont)
Define and manage risk/opportunity
Integrate scope and estimated cost into schedule
Make informed decisions
Anticipate deviations/changes
Adopt the end product approach
Plan ahead from phase to phase

Basic Project Control Steps

Define the project scope
Develop a project plan consistent with:
project scope
estimates (cost constraints)
schedule (constraints
resources available
Report progress and compare with budget and

forecast
Control by taking corrective action

Contingency - Plan for

Change

Cornerstones of
Project Management
Cost

Schedule

Scope

Quality

Schedule
Planning -

Identification of the
sequence of events
necessary to complete
the project
Scheduling Determination of timing and
assembly of project
activities to give overall
completion time

Front End
Schedule
A way to get the project started right
Design
Program
Install / Test
System Turnover

Basis for Project Schedule

Project objectives
Project scope
Project milestones
Project estimate (budget)
Resource availability

The Critical Path

Identifies project priorities
Shows activity relationships
Enables schedule analysis
Reflects project strategy
Promotes teamwork

Basic Network Diagramming

Expanded Network
Diagramming

The Bar Chart

The Gantt Chart

Five Phases of Project Management

Project Management Process

Initiate
& Align
Project
Description
Team Mission/
Assignment
Major Milestones
Boundaries
Team
Identification
Roles &
Responsibilities
Measures of
Success
Operating
Guidelines

Plan
the Work

Work Breakdown
Structure (WBS) /
Master Deliverables
List (MDL)
Task Planning &
Scheduling
Budget
Risk Planning
Communication
Plan
Change
Management Plan
Quality (QA/QC)
Plan
Transition &
Closure Plan

Endorse
the Plan

Project Team Commitment

Management Endorsement

Work
the Plan

Transition
& Closure

Managing Scope,
Schedule & Budget
Manage Risks
Manage Change
Communicate
Progress
Issues
Lessons
Learned

Implement
Transition Plan
Review Lessons
Learned
Reward &
Recognize
Archive

Continuous Communication

Factors in Project Success

Project Management Philosophy
Project Management Role and Responsibility
Project Management Principles and Practices

Cornerstones of
Project Management
Cost

Schedule

Scope

Quality

Total Project Quality Management

Quality Assurance

Quality
Control

Total Project
Quality
Management

Continuous Improvement

Design
Basis

Project Quality Improvement

Develop a quality management plan early in

the project
Include representatives from all affected
organizational units on the project team
Initiate the project effectively through kick-off
and alignment meetings
Review performance and measure success

Project Quality Improvement

(cont)
Define scope and review periodically
Limit scope changes

formal change procedure

require justification
Complete more engineering up-front before
defining cost and scheduling
Obtain constructability, operability and
maintainability input to design

Cost of Quality

Risk Management

Manage Risk
What is risk?
Sources of risk
Kinds of risk
Risk Management Process
Identify risks
Define consequences
Develop a mitigation plan
Document

Sources of Risk
Technical

Financial
Socio-Economic
Contractual

Risk Management Process

Identify Risk
Analyze Risk
Respond to Risk
Document Risk

Sources of Help to Identify

Risk
Site investigations
Contract documents
Schedule
Team brainstorming
Body of experience

Risk Control Methods

Avoid
Reduce
Share
Insure
Accept
with contingency
without contingency

Contain

Risk Containment
Clearly define insurance responsibilities in

contracts
Use qualified personnel
Document and communicate project
strategy
Define roles and responsibilities
Prepare contingency plans for critical
activities
Use up-front team building

Risk Containment (cont)

Use qualifies contractors

and

vendors
Preconstruction work briefings
(especially safety)
Rehearse critical activities or use
mock-ups
Use strong project control systems
Manage contingency

How Project Management

Relates to Other Disciplines
Much of the knowledge needed to manage

projects is unique to the discipline of project

management
Project mangers must also have knowledge and
experience in
general management
the application area of the project

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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 manager and a technical
manager

84

Sample Gantt Chart

85

The WBS (work break down structure ) is on the left, and

each tasks start and finish date are shown on the right using
a calendar timescale. Early Gantt
Charts, first used in 1917, were drawn by hand.

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 tasks on the critical path take longer 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.
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Sample Enterprise Project

Management Tool

In recent years, organizations have been taking advantage of software to

help manage their projects throughout the enterprise.
87

The Project Management

Profession
The job of IT Project Manager is in the list of the top

ten most in demand IT skills

Professional societies like the Project Management
Institute (PMI) have grown tremendously
Project management research and certification
programs continue to grow

88

Top Ten Most in Demand IT

Skills
Rank
IT Skill/Job
Average Annual Salary
1
SQL Database Analyst
$80,664
2
Oracle Database Analyst
$87,144
3
C/C++ Programmer
$95,829
4
Visual Basic Programmer
$76,903
5
E-commerce/Java Developer
$89,163
6
Windows NT/2000 Expert
$80,639
7
Windows/Java Developert
$93,785
8
Security Architect
$86,881
9
Project Manager
$95,719
10
Network Engineer
$82,906
Paul Ziv, The Top 10 IT Skills in Demand, Global Knowledge Webcast
(www.globalknowledge.com) (11/20/2002).

89

IS370 Project Management

Ethics in Project
Management
Ethics is an important part of all
professions
Project managers often face ethical
dilemmas

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You Can Apply Project

Management to Many Areas
Project management applies to work as well as

personal projects
Project management applies to many different
disciplines (IT, construction, finance, sports, event
planning, etc.)
Project management skills can help in everyday
life

91

Project Close-out

Project Closeout - Major

Phases
Obtain client acceptance
Document the project
Conduct the post implementation audit
Issue the final report

Successful Project Management

Plan the
Work
Work the
Plan

Successful Project Completion

Celebration at every mile stone

Thanks