Project Management

Lesson 1: An introduction
to Project Management

Tran Van Ly
Industrial and Systems Engineering
International University 1
Email: [email protected]
Learning Objectives

• Course introduction
• Introduction of project
management
• The project life cycle and
organization

2
 What is a project?

• A project is a temporary endeavor undertaken

to create a unique product, service, or result
(Project Management Institute 2008)
– Temporary nature of projects indicates a definite
beginning and end
– Temporary does not generally apply to the
product, service or result created by the project
 What is a project?

• Every project creates a unique product,

service, or result
 What is a project?
• A project can create:
– A product that can be either a component of
another item or an end item in itself
– A capacity to perform a service (e.g., a business
function that supports production or distribution), or
– A result such as an outcome or document (e.g.,
research project that develops knowledge that can
be used to determine whether a trend is present or
a new process will benefit society)
 What is a project?
• Examples of projects include, but are not limited
to:
– Developing a new product or service
– Effecting a change in the structure, staffing, or style of
an organization,
– Developing or acquiring a new or modified information
system
– Constructing a building or infrastructure, or
– Implementing a new business process or procedure
 Example of Projects

• Your examples………………
 What is project management?
• Project management is the application of knowledge, skill,
tools, and techniques to project activities to meet the
project requirements.
• Project management processes comprising the 5 process
groups
– Initiating
– Planning
– Executing
– Monitoring and controlling, and
– Closing
 What is project management?
• Managing a project typically includes:
– Identifying requirement
– Addressing the various needs, concerns, and expectations of the
stakeholders as the project is planned and carried out
– Balancing the competing project constraints including but not limited
to
• Scope
• Quality
• Schedule
• Budget
• Resources, and
• Risk
 What is project management?

• Example
– Shortened schedule  often requires
increasing in budget to add additional
resources to complete the same amount of
work in less time
– No budget added  scope or quality may be
reduced to deliver a product in less time for
the same budget
 Portfolio, Program, and Project

• Portfolio
– Refers to a collection of projects or programs
and other work that are grouped together to
facilitate effective management of that work to
meet strategic business objectives
– The projects or programs of the portfolio may
not necessarily be interdependent or directly
related
Portfolio, Program, and Project
Highest
level
portfolio

Lower
level
Projects
portfolio

Higher Higher
level level
programs programs

Lower Lower
Projects level Projects level
programs Programs

Projects Projects
 Portfolio management
Refers to the centralized management of one or
more portfolios, which includes identifying,
prioritizing, authorizing, managing, and
controlling projects, programs, and other related
work, to achieve specific strategic business
objectives.
 Program

– A program is defined as a group of related

projects managed in coordinated way to
obtain benefits and control not available from
managing them individually.
– A project may or may not be part of a program
but a program will always have project
 Program management

– Defined as the centralized coordinated

management of a program to achieve the
program’s strategic objectives and benefits

Project Program Portfolio

Related projects, shared Achieve a business
Unique Benefit
benefit objective
Example… Example… Example…
 Project & Program

• Project are often utilized as a means of

achieving an organization’s strategic plan
• Project, within programs or portfolios, are
a means of achieving organizational goals
and objectives, often in the context of
strategic plan.
 Project Life Cycle

• A project life cycle is

– a collection of generally sequential and sometimes
overlapping project phases
– names and number of phases are determined by
• the management and control needs of the organization or
organizations involved in the project
• the nature of the project itself
• area of application.
• The life cycle provides the basic framework for
managing the project, regardless of the specific
work involved
 Characteristics of the Project
Life Cycle
• Projects vary in size and complexity. No matter
how large or small, simple or complex, all
projects can be mapped to the following life
cycle structure:
– Starting the project
– Organizing and preparing
– Carrying out the project work, and
– Closing the project
 Characteristics of the Project
Life Cycle
Staffing Organizing Carrying out the work Closing
the and the
project preparing project

Project Project Accepted Archived

charter management Deliverables project
plan documents
Project
Time
Management
Outputs
Typical Cost and Staffing Levels Across the Project Life Cycle
An example of a single-phase
project

Monitoring & Controlling Processes

Initiating Planning Executing Closing

Processes Processes Processes Processes
 Sequence phases

Facility Decommissioning Waste Removal/ Clean up Landscaping

Monitoring & Controlling Processes Monitoring & Controlling Processes Monitoring & Controlling Processes

Initiating Planning Executing Closing Initiating Planning Executing Closing Initiating Planning Executing Closing
Processes Processes Processes Processes Processes Processes Processes Processes Processes Processes Processes Processes

One approach to cleaning up a hazardous waste site

 Overlapping phases

Design Phase
Construction Phase
Monitoring & Controlling Processes

Monitoring & Controlling Processes

Initiating Planning Executing Closing
Processes Processes Processes Processes
Initiating Planning Executing Closing
Processes Processes Processes Processes

Potential approach to building a new factory

 Stakeholders
• Stakeholders are persons or organizations (e.g.,
customers, sponsors, the performing
organization, or the public), who are actively
involved in the project or whose interests may be
positively or negatively affected by the
performance or completion of the project.
 Project stakeholders
Project
Operations
Management
Sponsor Management
Office

Project Team
Functional
Portfolio Project Managers
Manager Project
Manage-
Manager
ment Team
Other
Sellers/
Project
Business
Team
Program Partners
Members
Manager

Other Customers/
Stakeholders Users
 Project Stakeholders
• Sponsor is a person or group that provides the
financial resources
• Project Managers are assigned by the
performing organization to achieve the project
objectives
• Project team comprises of the project manager,
project management team, and other project
team members
• Other project team members are the persons
who carry our the work but not necessarily
involved with management of the project
 Project Stakeholders
• Project management office is an organization body,
responsible for coordinating and managing those
projects under its domain
• Portfolio managers are responsible for the high-level
governance of a collection of projects or programs.
• Portfolio review boards are committees usually made up
of the organization’s executives who act as a project
selection panel.
• Program managers are responsible for managing related
projects in a coordinated way to obtain benefits and
control not available from managing them individually.
 Project Stakeholders

• Customer/users are the persons or

organizations that will use the project’s product
or service or result.
• Operations managers are individuals who have
a management role in a core business area,
such as research and development, design,
manufacturing, provisioning, testing, or
maintenance.
• Operating management would then incorporate
the handed off project into normal operations
and provide the long term support.
 Project Stakeholders

• Functional managers are key individuals who

play a management role within an administrative
or functional area of the business, such as
human resources, finance, accounting, or
procurement.
• Sellers/business partners/ vendors/ suppliers/
contractors are external companies that enter
into a contractual agreement to provide
components or service necessary for the project.
 Functional Organization

• Staff members are grouped by specialty,

such as production, marketing,
engineering, and accounting at the top
level.
• Each department in a functional
organization will do its project work
independent of other departments
 Functional Organization
Project Chief
Coordination Executive

Functional Functional Functional

Manager Manager Manager

Staff Staff Staff

Staff Staff Staff

Staff Staff Staff

 Projectized organization

• In a projectized organization, team

members are often co-located
• Project managers have a great deal of
independence and authority
 Projectized Organization
Project Chief
Coordination Executive

Project Project Project

Manager Manager Manager

Staff Staff Staff

Staff Staff Staff

Staff Staff Staff

 Matrix organization

• Matrix organizations are blend of

functional and projectized characteristics.
– Weak matrices maintain many of the
characteristics of a functional organization
– The project manager role is more of a
coordinator or expediter than that of a true
project manager
Weak Matrix Organization
Chief
Executive

Functional Functional Functional

Manager Manager Manager

Staff Staff Staff

Project
Coordination
Staff Staff Staff

Staff Staff Staff

Balanced Matrix Organization
Chief
Executive

Functional Functional Functional

Manager Manager Manager

Staff Staff Staff

Project
Coordination
Staff Staff Staff

Project Manager Staff Staff

 Strong Matrix Organization
Chief
Executive

Functional Functional Functional Manager of

Manager Manager Manager Project Managers

Staff Staff Staff Project Manager

Staff Staff Staff Project Manager

Staff Staff Staff Project Manager

Project Coordination
 Matrix Organization

– Strong matrices have many of the

characteristics of the projectized organization
– Project manager can have considerable
authority
– Strong matrices can have full-time project
administrative staff
– Balanced matrix organization recognizes the
need for a project manager
 Composite Organization
Chief
Executive

Functional Functional Functional Manager of

Manager Manager Manager Project Managers

Staff Staff Staff Project Manager

Staff Staff Staff Project Manager

Staff Staff Staff Project Manager

Project A Coordination
Project B Coordination
 Composite organization

• Many organizations involve all these structures

at various levels
• Functional organization may create a project
team having characteristic of projectized
organization to handle a critical project
• Project team may involve full-time staff from
different functional department.
 Organizational influences on Project
Organization Matrix
Structure
Weak Matrix Balanced Strong
Project Functional Matrix Matrix Projectized
Characteristic

Project Little or Limited Low or Moderate to High to

Manager’s None Moderate High Almost Total
Authority
Resource Little or Limited Low to Moderate to High to
Availability None Moderate High Almost Total

Who controls the Functional Functional Mixed Project Project

project budget Manager Manager Manager Manager

Project Part-time Part-time Full-time Full-time Full-time

Manager’s role
Project Part-time Part-time Part-time Full-time Full-time
Management
Administrative
staff
 Definitions
• Scope: The sum of the products, services,
results to be provided as a project
• Quality: The degree to which a set of inherent
characteristics fulfills requirements
• Schedule (output/input)/Project schedule: The
planned dates of performing schedule activities
and the planned dates for meeting schedule
milestones.
 Definitions
• Budget: The approved estimate for the project or any
work breakdown structure component or any schedule
activity.
• Resources: Skilled human resources (specific
disciplines either individually or in crew or teams),
equipment, services, supplies, commodities, material,
budgets, or funds.
• Risk: An uncertain event or condition that, if it occurs,
has a positive or negative effect on a project’s
objectives