#7124 Topic: Introduction to Project Management

Introduction to Project Management

1. Introduction

· Explain what a project is and how project management improves an organization’s success.

a project consist of unique organized and coordinated set of activities undertaken temporarily by a motivated individual or an institution that perceive an opportunity that satisfies specific objectives such as when experiencing challenges, discomfort, a desire or even a need. These activities have a definite schedule, brings about a desired change, unknown elements that pose risk and performance and cost parameters. Therefore, routine business activities are not projects although business managers can utilize project methods to conduct their business. Projects development is guided by the 4 ps of project management that include Power, People, Processes, and Plan. Projects are constrained by costs, norms of quality and time, and each can be measured and determined objectively throughout the lifecycle of the project. Every single project produces some impacts which are either positive or negative, deliverables as well as some level of formality in its documentation.

Today, companies globally are exploring ways to remain ahead of the pack in the current chaotic and competitive global economy. One of the most effective ways of staying ahead is utilizing project management to consistently deliver desirable business outcomes. Economist intelligence reports shows that more than 80% of giant global executives believe that utilizing project management as a major competency tool help them remain on top and profitable even during global economic crises such as recessions. The delivery of desirable and positive business outcomes relies on the success of projects undertaken by a company, essentially, that is how strategies involved in project management act as the driver of organizational success. Giant global organizations across all sectors are increasingly embracing project management in order to improve results and control their spending. With the beginning of recession, project management practice has become of greater importance. Organizational leaders have discovered that employing project management strategies and methods have helped them cut costs, minimize risks and most importantly increase the success rates. All these are important for any business to survive during the era of economic crises. The realization that project management strategy increases the business value has compelled executives to create formal project management offices within their organizations.

· Summarize the five process groups in the project management life cycle.

At the beginning of any project, the amount of work required can be overwhelming. The project may involve dozens of activities and tasks that must be completed within deadlines and in the right sequence that ensure success. Experienced project managers understand the importance of taking the right steps and in the right sequence after breaking down the details of a project into phases. Grouping the project management efforts into the five process groups in the project management life cycle ensure structuring and simplifying of your efforts into series of manageable and logical steps. The five process groups are the knowledge areas of project management. The five project management process groups are initiating, planning, executing, monitoring and controlling, and closing. Initiating process group involves the activities, processes and techniques required to define the starting of a project. Activities in this process group include creating a budget, setting initial work in place to ensure logic progress throughout all project process groups, and acquiring necessary permits and authorizations. The planning process group defines the project scope, make the strategic plans, and create priority needs as well as the priority lists. The executing process group is responsible for managing different teams working towards the realization of the project objectives in order to meet deadlines. Communication and organization skills are crucial for effective handling of team concerns and other complex situation that arise while getting the job done within the constraints of budget and resources. Monitoring and controlling process group is responsible for addressing and mitigating unforeseen challenges, processing change orders as well as the budget consideration in order to meet the project expectations. Closing process group involves closing the project successfully within the timelines and budget allocated to it.

Initiating/Pre-Planning/Project Selection

· Explain the pre-planning stage of the project management lifecycle.

Seasoned project managers understand that some vital parts necessary for the success of a project occur even before the approval of a project or the planning phase of the project. Working only with the anticipation that a project will be beginning soon or rather is in the pipeline to be initiated soon, there is much work that can commence in this pre-planning stage. Pre-planning stage ensures that the project kick start on the right foot and gets a leg up. Some of the tasks done in this stage include gathering the right resources particularly the right people with the desired skills and expertise. Having such people talking about the project ensures that the project will start with forward momentum. Calling out the decision is another important task that can be done in this stage. After the right people for the project gather and start discussing the upcoming project they call out decisions that should be made for the project to be successful. These decisions are only given as recommendations and cannot be made at this phase. Pre-planning stage present the right opportunity for laying of the project foundation. Some major piece of the project foundation include timeframes and objectives of the project. The gathered right people including managers and stakeholders should be made to understand the “why” that drives the project as it helps everyone understand the reason for the project and stay focused. The last step of the pre-planning stage is moving towards approval of the project so that the project can finally be initiated.

· Explain project management terms, tools, and techniques that are applicable to the pre planning/project selection stage.

Project management models, techniques, and tools are used in project selection to assess and evaluate the quantitative and qualitative characteristics of a group of projects or a specific project. The aim of these tools, techniques and models is to assist the selection team identify the group of projects or project that show consistency with the objectives, mission and strategic goals of the organization. The pre-planning stage involves five criteria for selecting project models: realism, capability, flexibility, ease of use, and cost. Realism model show a reflection of the objectives of the organizations that are applied throughout the project. The model must put the resources available within the business into consideration. Capacity refers to the ability of the project selection model to deal with the risks and uncertainties involved in carrying out the project. Flexibility implies that the project selection model give clarity of outcomes as well as be easily modifiable when addressing to certain changes. Ease of use implies that the project selection model should not be complicated but easy to understand and convenient without the requirement of special and complicated interpretations. Finally, the cost incurred for using a certain project selection model must be relatively low to the project cost and be less compared to the potential benefits of the project.

2. .

· Describe various approaches for selecting projects.

Project selection methods involves two major categories namely benefit measurement methods and constrained optimization methods. These approaches despite being time consuming are of great importance in developing an effective project plan. Although there exist numerous methods for project selection, the thumb rule dictates that the small projects that are not complicated should utilize the benefit measurement methods while the large and complex projects should employ the constrained optimization method. The basis of the benefit measurement methods is the present value of projected cash flows. The techniques involved in benefit measurement methods include cost/benefit ratio, economic model, scoring model, payback period, net present value, opportunity cost, discounted cash flows as well as internal rate of return. The constrained optimization methods also known as mathematical model of project selection involves the following techniques: Linear programming, nonlinear programming, multiple objective programming, dynamic programming and integer programming.

· Describe the importance of project stakeholders, sponsors, and project teams to the success of the project.

Project stakeholders include any individual, organization or group who might be in the receiving end of the outcomes of the project or who are affected or affect the activities, decisions and outcomes of the project. Stakeholders have interests in the project and are either directly or indirectly involved in the project. Project stakeholders include customers, project sponsors, investors, executives, the general project, project managers, business executives and project team players. Their input or lack of it has great influence to the outcomes of the project. In most cases, different stakeholders possess conflicting interests and opposing expectations that is likely to cause clashes within the project. Consequently, they may interfere with the project deliverables, the project itself and the requirements and functions of the project team members who are working towards fulfilling the strategic business objectives. Stakeholders also play significant roles and have different levels of authority and involvement when contributing towards the success of the project. Their involvement and duties continue to change and differ throughout the project life cycle. Stakeholder particularly the sponsors and investors funds the project and greatly influence the decisions concerning the project.

Question 3

Project solutions are further developed in much details in the planning phase. Also, this phase involve outlining the steps necessary for the realization of the objections of the projects. All the project work to be completed are identified along with the best strategies for completing them. A project plan will outline all dependencies, tasks, activities and timeframes of the project. Afterwards, the project manager leads his team in preparation of the project budget by giving cost estimates for materials, equipment and labor. The budget is an important tool that help in controlling and monitoring cost expenditure and reduce wastages during the implementation of the project. After the project tasks have been identified, expenditure costs estimated, and the work schedule prepared, then all the three basic components of the planning phase are complete. During this phase, possible and likely interferences are identified and dealt with to ensure that there are no threats and risks to successfully completing the project. This is referred to as risk and uncertainty management. The planning phase also present a perfect opportunity for the identification of the project stakeholders and then initiate communication plan that would ensure coordination and sharing of the required information. A communication method to be used throughout the project implementation is also described. At the end of the planning stage, project managers ensure documentation of a quality plan that provide quality objectives and targets, control measures, assurance along with the acceptance plan which list the criteria to be adhered to in order to gain customer acceptance. This is the point where the project has been planned in details and ready for implementation.