Project
Management
Definition and Purpose of
Project Management
• Project management is the
application of knowledge, skills,
tools, and techniques to meet
project requirements.
• The Project Management
Institute (PMI) developed the
PMBOK Guide and project
management certifications to
promote understanding and
development of the field.
Debates on Project
Management Purpose
• The main purpose of project
management is to meet client
expectations or written
specifications and requirements.
• The project client defines
project requirements, causing
debates on whether project
management should be a
profession with an enforceable
code of conduct.
Aspects of Project
Management
• Jack Meredith and Samuel
Mantel discuss project
management in terms of
producing project outcomes
within the objectives of cost,
schedule, and specifications.
• Project management is the
application of everything a project
manager does to meet these
parameters.
• A client-centered definition of
project management focuses on
delivering a product or service to
the client that meets expectations
rather than project specifications.
Case Studies: Highway Project
and Biotech Project
• The Department of Highways in
South Carolina proposed cost-
cutting ideas throughout the
project life.
• The client promoted the revised
cost target as an example of the
success of the new process.
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• The project's success was
connected to the new
expectations that developed
during the project life.
• A project can be late and over
budget, and the client can be
satisfied.
• Client satisfaction is often tied
to expectancy.
Project Defined by PMI
• Projects are temporary
endeavors aimed at creating
unique products, services, or
results.
• Project managers need different
skills to define and execute these
projects.
• Projects have a defined
beginning and end, requiring
different management
approaches.
• The process of developing
teams, organizing work, and
establishing priorities requires
different knowledge and skills.
• The delivery of a unique product
or service changes the
management approach.
National Energy Plan
(Example)
• The National Energy Technology
Laboratory proposed a national
energy policy with a clear
outcome of providing reliable,
affordable, and environmentally
sound energy.
• The project involved the
development of new technologies,
complex scheduling and cost
control, coordination of
subcontractors, and skillful
stakeholder management.
• Each subcontractor or work unit
became a project for the winning
contractors within the larger
project.
• The scope of work includes
activities associated with reducing
use of fossil fuels and reliance on
imported energy.
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• Implementation of the energy
policy would be a project that
consists of other projects, such as
wind power, solar power,
electricity transmission, electricity
storage, new nuclear reactor
design and installation, other
renewable energy sources,
biofuels, electric vehicles,
nonpolluting use of coal and
natural gas, and environmental
protection.
Project Context and
Organizational Priorities
Organizational Priorities
• Organizations fulfill societal
roles to meet economic, religious,
and governance functions.
• They develop operational
approaches to accomplish their
purpose over a specific time
horizon.
• Organizations aim to produce
products or services that meet
the organization’s purpose and
goals as defined by key
stakeholders.
• Management philosophies and
methodologies focus on
increasing the effectiveness and
efficiency of the organization.
• Projects are initiatives to
increase organizational
effectiveness or efficiency.
Operations Management vs
Project Management
• Operations managers focus on
the work processes of the
operation.
• They analyze work processes
and explore opportunities for
improvement.
• Operations managers are
process-focused, oriented toward
capturing and standardizing
improvement to work processes.
• Project managers focus on the
goals of the project.
• Project success is connected to
achieving the project goals within
the project timeline.
• Project managers are goal-
directed and time-sensitive.
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• Operations managers create a
culture focused on the long-term
health of the organization.
• Project managers create a team
that is goal-focused and
energized around the success of
the project.
• Project managers create clear
goals and expectations for team
members and tie project success
to the overall success of the
organization.
Project Management and
Organizational Structure
• Project management differs
from operations management,
requiring expertise from trained
individuals.
• This expertise can be obtained
through outside consulting firms
or in-house groups.
• Some organizations are
designed to execute projects,
often contracting with
engineering and construction
companies or software
companies.
• Functional departments like
estimating, scheduling, and
procurement create and maintain
core competencies for project
management.
• Successful project management
provides a competitive advantage
in the marketplace.
Product Production and
Project Management
• Organizations also use projects
for major activities outside their
normal work or activities that
cross functional boundaries.
• Project management approach
increases the likelihood of
success as organizations charter
projects to facilitate
organizational change, new
product development, or support
mergers or divestures.
Project Management Offices
(PMOs)
• PMOs facilitate the development
of organizational knowledge,
skills, and tools for internal
project charter and management.
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• PMOs can provide various
functions for an organization,
including project management,
center of excellence, portfolio
management, and functional
support.
Project Management Skills
and Leadership
Operational Management
Skills
• Key to successful project
management are good
communication, team building,
planning, escalating, motivating,
and political sensitivity.
• These skills are crucial in a
time-sensitive, goal-driven project
environment.
Project Management Skills
• Successful project managers
require additional knowledge,
skills, and abilities.
• Albert Einsiedel defined five
characteristics of an effective
project leader: Credibility,
Creativity, Tolerance for
ambiguity, Flexibility in
management style, and
Effectiveness in communication.
Interpersonal, Technical, and
Administrative Skills
• Interpersonal skills include
providing direction,
communicating, assisting with
problem-solving, and dealing
effectively with people without
authority.
• Technical expertise gives the
project manager creditability to
provide leadership on technically
based projects.
• Administrative skills include
planning, organizing, and
controlling the work.
People Skills
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• The level of skills needed by the
project manager depends largely
on the project profile.
• The skills to build a high-
performing team, manage client
expectations, and develop a clear
vision of project success are
increasingly important.
Project Start-Up and
Integration
• Project start-up is similar to a
new organization's start-up.
• The project leader develops
project infrastructure and aligns
with major stakeholders.
• The project manager conducts
kickoff meetings or alignment
sessions to build the project team.
• The team refines the scope of
work, develops a preliminary
schedule and conceptual budget.
• The project team builds a plan
for executing the project based on
the project profile.
• Flowcharts, diagrams, and
responsibility matrices capture
work processes associated with
executing the project plan.
• The first draft of the project
procedures manual captures the
historic and intuitional knowledge
that team members bring to the
project.
Project Scope
• The project scope defines the
parameters of the project, what
work is done within the project,
and the work that is outside the
project boundaries.
• The quality of the scope is
measured by the ability of the
project manager and project
stakeholders to develop and
maintain a common
understanding of what products
or services the project will deliver.
• The scope statement should
include the description of the
scope, product acceptance
criteria, project deliverables,
project exclusions, project
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constraints, and project
assumptions.
• A clear project scope document
is critical to managing change on
a project.
• Scope creep, a common trend
on projects, threatens the success
of a project as small increases in
scope require additional
resources not in the plan.
• Changes in the project scope
can occur due to changes in the
marketplace, client’s
management team, financial
health, project schedule, budget,
or product quality.
• The project manager
establishes a change
management system that
captures changes to the project
scope and assures that these
changes are authorized by the
appropriate level of management
in the client’s organization.
Project Schedule and Time
Management
• Project success often involves
completing the project on time.
• The project manager is
responsible for developing and
managing a realistic project
schedule.
• A project controls team assists
in developing the plan and
tracking progress against it.
• The project team analyzes
project scope, contract, and other
information to define project
deliverables.
• A milestone schedule is
developed, establishing key dates
throughout the project life.
• For less complex projects, a
milestone schedule may suffice
for tracking progress.
• For more complex projects, a
more detailed schedule is
required.
• A work breakdown structure
(WBS) is developed, listing tasks
arranged in layers of detail.
• The project plan is developed,
listing activities needed to
accomplish the work identified in
the WBS.
• The project logic diagram
represents the logical sequence of
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the activities needed to complete
the project.
• An estimation of the time it will
take to accomplish each activity
is developed.
• The project schedule is created
by scheduling activities efficiently
using project resources and
completing the project in the
shortest time.
• The longest path to the project
completion is the critical path.
• The project manager must be
able to accelerate a schedule to
compensate for unanticipated
events that delay critical
activities.
Project Costs
• The accuracy of the project
budget is related to the amount of
information known by the project
team.
• Different levels of project
budget estimates are developed
to address the lack of information.
• The cost of the project is
tracked relative to the progress of
the work and the estimate for
accomplishing that work.
• If the cost is significantly higher
or lower, the project team
explores reasons for the
difference between expected
costs and actual costs.
• The project manager is
responsible for ensuring that the
project team develops cost
estimates based on the best
information available and revises
those estimates as new or better
information becomes available.
Project Quality and Project Team:
Human Resources and
Communications
Project Quality
• Focuses on end product or
service deliverables reflecting the
project's purpose.
• Project managers develop a
project execution approach that
outlines expected project
deliverables and quality
specifications.
• Documenting specifications and
expectations is critical to a good
quality plan.
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• Changes in quality
specifications are managed in the
same process as cost or schedule
changes.
• The Project Management
Institute’s A Guide to the Project
Management Body of Knowledge
(PMBOK Guide) provides an
extensive chapter on project
quality management.
• Rework on projects increases
the cost of the product or service
and time needed to complete
reworked activities.
• Early development of
appropriate skills, materials, and
work process is critical for project
success.
• Process improvement tools can
identify and improve baseline
processes used on projects.
• Opportunities for improvement
must be found quickly to
influence project performance.
Project Team: Human
Resources and
Communications
• The project management team
staffs the project with the right
skills, at the right place, and at
the right time.
• The project usually has two
types of team members:
functional managers and process
managers.
• The staffing plan reflects both
the long-term goals of skilled
team members needed for the
project and short-term
commitment that reflects the
nature of the project.
• A core project management
team is dedicated to the project
from start-up to closeout.
• The project manager, project
controls, project procurement,
and key members of the function
management or experts in the
technology of the project are key
members of the project
management team.
• The project team members can
be assigned to the project from
various sources, allowing the
project manager to create the
project organizational culture.
Teamwork and
Communication
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• Successful project completion
requires effective teamwork and
communication among team
members.
• Virtual teams use electronic
methods of communication
without face-to-face meetings.
• Communication can be
synchronous (all parties
participating at the same time) or
asynchronous (not interacting at
the same time).
• Effective communication
requires a communications plan.
Project Risk
• Risk exists on all projects and
the project management team
must understand and mitigate
these risks.
• Risk represents the likelihood
that an event will negatively
affect the achievement of project
goals.
• The project risk plan reflects the
risk profile of the project manager
and key stakeholders.
• The risk management plan is
integrated into the project
execution plan, and mitigation
activities are assigned to the
appropriate project team
member.
• Contingency is a common risk
mitigation approach and is set
aside by the project team to
address unforeseen events.
Project Procurement
• The procurement effort on
projects varies widely and
depends on the type of project.
• On less complex projects, the
project team identifies the
materials, equipment, and
supplies needed by the project
and provides product
specifications and a detailed
delivery schedule.
• On larger, more complex
projects, personnel are dedicated
to procuring and managing the
equipment, supplies, and
materials needed by the project.
• More complex projects typically
procure through different
procurement and management
methods.
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• Commodities are common
products purchased based on the
lowest bid.
• Products that are specified for
the project are bid for a contract.
• The development of one or
more partners is a potential
project partner.
• The project management team
builds and implements a project
procurement plan that recognizes
the most efficient and effective
procurement approach to support
the project schedule and goals.
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