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Introduction / Chapter 1
The Project Management Institute
www.pmi.org
What is a Project?
A project is a one-time job with specific
goals, a clear-cut starting and ending
date, and – in most cases – a budget.
PMBOK:
A project is a temporary
endeavor undertaken to create a unique
product, service, or result.
A project has a set of objectives, a
start and end, and a budget.
The project objectives help delineate the
start and finish of a project.
Program or Program Management
Describes a group of projects related
to a common initiative and managed
in a cohesive fashion.
A project is a problem
scheduled for solution.
– Dr. Joseph M. Juran
Whether an organization launches a project to
solve a problem or fulfill an unmet need, it
commits its time, money, and human resources to
the project to achieve specific goals.
One of the most important tasks early in the life of a project
is determining what the project objectives are and making
sure that everyone involved agrees on them.
The scope of a project is the
extent of the work to be done.
Project management is an ongoing task
of balancing the project scope with time,
cost, and level of performance and
quality.
The purpose of project management is to
achieve the project objectives on time and
within budget.
Project Management is divided
into five types of processes
(Process Groups).
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Initiating
Planning
Executing
Monitoring and Controlling
Closing
Processes overlap and interact
throughout a project or phase.
Processes are described in terms of:
• Inputs (documents, plans, designs, etc.)
• Tools and Techniques (mechanisms
applied to inputs)
• Outputs (documents, products, etc.)
Project Management is about
communicating with people.
Project managers have to lead,
sometimes coax, and occasionally
cajole a team of workers to
successfully complete a project.
Project Management
Provides a systematic approach – a
process model – to guide project
management activities.
The process model corresponds with the
typical lifecycle, from concept to completion
of a typical project.
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Many tasks do not fit neatly into business-asusual.
Need to assign responsibility and authority for
achievement of organizational goals.
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Unique
Specific Deliverable
Specific Due Date
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Multidisciplinary
Complex
Conflict
Part of Programs
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“A project is a unique temporary
endeavor, with a set beginning and end ”
PMI defines project management as
“the application of knowledge,
skills, tools and techniques to a
broad range of activities in order to
meet the requirements of a
particular project “
Project Management Institute, 2007
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Conflict Resolution
Creativity and Flexibility
Ability to Adjust to Change
Good Planning
Negotiation
 win-win versus win-lose
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The Sacred Cow- Special pet
project advocated by President
or Supervising Manager of Firm.
The Operating/Competitive
Necessity
Comparative Benefits
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Financial Assessment
Methods
payback period
discounted cash flow
Scoring Methods
unweighted 0-1 factor method
weighted factor scoring method
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Initial Fixed Investment
Annual Net Cash Inflows
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n
Ft
NPV (project)  - I 0  
t
t 1 (1  k )
where
I0 = the initial investment
Ft = the net cash flow in period t
k = the required rate of return or hurdle rate
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n
Si   sij w j
j 1
where
Si = the total score of the ith project
sij = the score of the ith project on the jth criterion
wj = the weight or importance of the jth criterion
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Time required to complete a project
Availability of key resources
Cost of resources
Timing of solutions to technological
problems
Actions taken by competitors
Uncertainty cannot be eliminated, but if
managed properly, it can be minimized.
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Estimate probabilities or distributions
associated with key parameters
Develop analytic or simulation model
Analyze distribution of outcomes generated by
model
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Monte Carlo Analysis
 Assumption Cells
 Distribution Gallery
 Forecast Cells
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Establish a Project Council
Identify Project Categories and Criteria
Collect Project Data
Assess Resource Availability
Reduce the Project and Criteria Set
Prioritize the Projects within Categories
Select the Projects to be Funded and Held in
Reserve
Implement the Process
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the PMBOK lists the Ten Knowledge Areas and the sub areas
(PMBOK 5th Edition - see Table 3-1, pg 61)
Section II—The Project Management Knowledge Areas,
Chapter 4—Project Integration Management
4.1 Develop Project Charter
4.2 Develop Project Management Plan
4.3.Direct and Manage Project Execution
4.4 Monitor and Control Project Work
4.5 Integrated Change Control
4.6 Close Project
Chapter 5—Project Scope Management
5.1 Plan Scope Management
5.2 Collect Requirements
5.3 Define Scope
5.4 Create WBS
5.5 Verification Scope
5.6 Control Scope
Chapter 6—Project Time Management
6.1 Plan Schedule Management
6.2 Define Activities
6.3 Sequence Activities
6.4 Estimating Activity Resources
6.5 Estimate Activity Durations
6.6 Develop Schedule
6.7 Control Schedule
Chapter 7—Project Cost Management
7.1 Plan Cost Management
7.2 Estimate Costs
7.3 Determine Budget
7.4 Cost Control
Chapter 8—Project Quality Management
8.1 Plan Quality Management
8.2 Perform Quality Assurance
8.3 Control Quality
Chapter 9—Project Human Resource Management
9.1 Plan Human Resource Management
9.2 Acquire Project Team
9.3 Develop Project Team
9.4 Manage Project Team
Chapter 10—Project Communications Management
10.1 Plan Communications Management
10.2 Manage Communications
10.3 Control Communications
Chapter 11—Project Risk Management
11.1 Risk Management Planning
11.2 Identify Risks
11.3 Perform Qualitative Risk Analysis
11.4 Perform Quantitative Risk Analysis
11.5 Plan Risk Responses
11.6 Control Risks
Chapter 12—Project Procurement Management
12.1 Plan Procurement Management
12.2 Conduct Procurements
12.3 Control Procurements
12.4 Close Procurements
Chapter 13—Project Stakeholder Management
13.1 Identify Stakeholders
13.2 Plan Stakeholder Management
13.3 Manage Stakeholder Engagement
13.4 Control Stakeholder Engagement
A Project’s Triple Constraints
(They must be kept in balance for your project to succeed)
Time
How long we have to accomplish the work
Resources
Money, people, materials, etc..
Performance
The quality and quantity of the outcomes
Metaphor: Science - 3 requirements to start and maintain combustion: fuel, heat and oxygen.
Remove any one of the three and the fire goes out. Add any one of the three to an existing fire and it gets larger.
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PMI
PMBOK
Stakeholders8
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Originator
Sponsor
Project Manager
Core Team
Extended Team
Process Control Documents and Checklists31
Triple Constraints
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Project Charter
Scope
Scope Creep
WBS
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S.M.A.R.T
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(Specific, measurable, agreed upon, realistic, and time-bound)
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Deliverables
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Milestones
“any measurable, tangible, verifiable outcome, result, or item that must be produced to compete a project or
part of a project.”
“a significant event in the project (determine progress toward completion)”