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Skillmart International College
Essentials of Project
Management
Course Outline
9/2/2023 1
1. Basic information
9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 2
Course Title Essentials of Project
Management
Course Code PMAE 511
Credit Hours 3
Course Instructor Name: Amare Mabrie (Assi. Prof.)
Mobile: 09208333315
Email: amabriesm21@gmail.com
2. Course Description
The course will
familiarize students with the standard components
of PMBOK (5 major process groups and 49 process)
acquaint students with the broader context of project
management environment within which projects
operate
enable students to make a realistic operational
activity plan based on
 sound understanding of implementation processes,
 available resources and external conditions and
 communicate effectively with relevant stakeholders.
9/2/2023 3
3. Course Objective
The overall objective of the course is to introduce students
with the basic concept of project management,
knowledge areas, processes and process groups
using PMBOK guideline.
At the end of the course, students will be able to
understand
 The need and history of project management
 Basic concept of planning, program and project
 Project definition, parameters and cycle
 project management and affecting group
 project management process groups
9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 4
4. Course Content
1. Introduction
Why we need to study project management
History of project management
Strategic planning, program and project
2. Basic concepts of project
Definition of project
Project parameters
Project scope
Project cycle
9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 5
Course content…
3. Project Management and Affecting Factors
 Area of expertise in project management
 Environmental Enterprise Factors
 Organization Process Asset
 Organizational System and Project
4. Project management process groups
 Initiating/Identification
 Planning
 Executing/Implementing
 Monitoring and Controlling
 Closing
9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 6
5. References
PMI (2017). A Guide to Project Management Body
of Knowledge, 6th edition, USA.
PMI (2013). A Guide to Project Management Body
of Knowledge (5th ed), USA.
Heldman, Kim (2011). Project Management Jumpstart (3rd
ed), Sybex, USA
Wysocki and McGary (2014). Effective Project
Management (7th ed.): Traditional, Agile, Extreme. Wiley
Publishing Inc., USA
9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 7
6. Mode of delivery
The course will use Lerner-centered teaching learning
The methods include:
 Active learning
 Cooperative learning and
 Inductive teaching and learning,
7. Assessment method
 Continuous assessment= 50%
 Final Exam =50%
9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 8
1. Introduction
What is project for you?
What do you mean by management?
How do you define project management?
Why we need to study project management?
9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 9
Introduction…
Project
 is a temporary endeavor undertaken to create a unique
product, service, result or combination of them.
Management
 process of dealing with or controlling things or people
 administration of an organization, whether it is a business, a non-
profit organization, or a government body.
Project management
 is the application of knowledge, skills, tools and techniques to project
activities to achieve its requirements
 it focuses on interdependencies
 within a project to determine optimal approach for its management.
 between projects, between projects & program level to determine the
optimal approach for managing them
9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 10
1.1 Why we need to study project management
The basic purpose for initiating a project is to
accomplish specific goals.
The reason for organizing the task as a project is
to focus the responsibility and authority for the
attainment of the goals on:
 an individual,
 small group,
 country level and
 even at global position .
The project manager is expected to coordinate and
integrate all activities needed to reach the project’s goals.
9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 11
Why we need to study PM…
Need of study PM
9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 12
Plan and
Organize
tasks
Make a
Schedule
Drive
Teamwork
Better
Resource
Management
Helps with
Integration
Reduces Costs
Facilitates
Change
Improve the
Quality of
Work
Better Use of
Information
Helps You
Learn From
Failure
Why we need to study PM…
1. Plan and Organization tasks
 It helps to decide who, what and when to do things
 It is an important skill to successfully complete a project.
2. Make a Schedule
 When faced with a large project, you should break it into
smaller portions and set up a schedule to be manageable.
 It ensure you meet deadlines, both long-term & short-term,
meaning you can assess your progress & quality of your work.
3. Drive Teamwork
 Successful project management relies on teamwork and
collaboration to bring a variety of ideas to the table.
 Sharing ideas, even for individual projects, helps to spark
inspiration and adds to the overall quality of work.
9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 13
Why we need to study PM…
4. Better Resource Management
 Implementing successful project management skills can help
you better manage scare and expensive resources.
 Knowing your capabilities & limitations save you time & effort,
5. Helps for Integration
 No project happens in isolation.
 PM helps you in integrating projects, or parts of projects,
more smoothly and seamlessly.
6. Reduces Costs
 Successful PM ensures you plan your project execution
carefully so that there is no waste and limited mistakes.
 This helps reduce project costs and ensures you have more in
your budget for the next round.
9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 14
Why we need to study PM…
7. Facilitates Change
 Life is full of change(may be unexpected) and these changes
can affect your projects.
 Successful PM can help you better adapt to these changes
8. Improve the Quality of Work
 Implementing good PM helps you to maintain high standards
(quality of work) throughout and across projects.
 Maintaining quality not only ensures a good grade, but it also
secures consistency, helping you maintain your standards.
9. Better Use of Information
 If you do not manage new knowledge efficiently, you are likely to
forget it and lose it.
 Good PM skills help you organize and manage new knowledge,
making sure it is retained and not lost when the project is over.
9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 15
Why we need to study PM…
10. Helps You Learn From Failure
 Despite all your best efforts, there are times when projects fall
short of the mark.
 Project failure can be devastating, but good PM ensures that
failures become lessons.
 Learning from failure & identifying the exact point of failure can
reduce chances of you making the same mistakes again.
9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 16
Why we need to study PM…
Effective project management helps individuals,
groups, and public and private organizations to:
 Meet business objectives;
 Satisfy stakeholder expectations;
 Be more predictable;
 Increase chances of success;
 Deliver the right products at the right time;
 Resolve problems and issues;
 Respond to risks in a timely manner;
 Optimize the use of organizational resources;
 Identify, recover, or terminate failing projects;
 Manage constraints (scope, quality, schedule, costs, resources);
 Balance the influence of constraints on the project and
 Manage change in a better manner
9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 17
Why we need to study PM…
Poorly managed projects or the absence of project
management may result in:
Missed deadlines,
Cost overruns,
Poor quality,
Rework,
Uncontrolled expansion of the project,
Loss of reputation for the organization,
Unsatisfied stakeholders, and
Failure in achieving the objectives for which the project was
undertaken
9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 18
1.2 History of project management
When do you think history of project
management started on?
What are the major achievement of humankind?
What are the drivers for the evolution of modern
project management
9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 19
History of PM…
Champions of project management suggest that
humankind has achieved a lot through out the human
history
It is possible to say that the concept of project
management has been around since the beginning of
history.
It has enabled leaders to plan bold and massive projects
and manage funding, materials and labor within a
designated time frame.
9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 20
History of PM…
The earliest achievements including;
 Egyptian Pyramids,
 the Great Wall of China
 the Axumite Civilization
 Lalibela rock church , and the like are great work of human
But how they were managed remains obscure (doubtful)
In fact, project management then and now are totally
different in several respects.
 Captives (prisoners) and conscripts must have been
involved in the past.
 As a result, early achievements were results of involvement
of vast armies of people.
9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 21
History of PM…
Examples of recent project outcomes include:
 Olympic games,
 Panama Canal,
 Development of commercial jet airplanes,
 Polio vaccine,
 Human beings landing on the moon,
 Commercial software applications,
 Portable devices to use global positioning system (GPS), and
 Placement of International Space Station into Earth’s orbit
The outcomes of these projects were the result of leaders
and managers applying project management practices,
principles, processes, tools, and techniques to their work
9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 22
History of PM…
 In late 19th C, in United States, large-scale government
projects were the motivation for making important
decisions
It became the basis for project management
methodology such as the transcontinental railroad,
which began construction in the 1860s.
 Suddenly, business leaders found themselves faced with
the frightening task of
 organizing the manual labor of thousands of workers and
 the processing and assembly of unprecedented quantities of
raw material.
9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 23
History of PM…
 Near the turn of the century, Frederick Taylor began his
detailed studies of work.
 He applied scientific reasoning to work by showing that
labor can be analyzed and improved by focusing on its
elementary parts
 He introduced the concept of working more efficiently,
rather than working harder and longer.
 Taylor's associate, Henry Gantt , studied in great detail
the order of operations in work and is most famous
for developing the Gantt Chart in the 1910s.
9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 24
History of PM…
 By the mid 20th C, projects were managed on an ad hoc
basis using mostly Gantt Charts, and informal techniques
and tools.
 During that time,
Manhattan project was initiated and its complexity was
only possible because of project management methods.
The Manhattan project was the codename given to the
Allied effort to develop first nuclear weapons during
World War II.
It involved over thirty different project sites in the US
and Canada, and thousands of personnel from US, Canada
and UK.
9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 25
History of PM…
Born out of a small research program that began in 1939,
the Manhattan Project would eventually
 employ 130,000 people
 cost a total of nearly 2 billion USD and
 result in the creation of multiple production and research
sites operated in secret.
 succeeded in developing and detonating three nuclear
weapons in 1945.
The 1950s marked the beginning of the modern PM era.
Two mathematical project-scheduling models developed:
1. The Program Evaluation and Review Technique (PERT)
2. The Critical Path Method (CPM)
9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 26
History of PM…
The above stated two mathematical techniques quickly
spread into many private enterprises.
Project management in its present form began to take root
a few decades ago.
In the early 1960s, industrial and business organizations
began to understand the benefits of organizing work
around projects.
 They understood the critical need to communicate and
integrate work across multiple departments and professions.
Now a day it is impossible to think the current complex
businesses and projects without the application of PM.
9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 27
History of PM…
Snyder and Kline (1987) noted that the modern PM era
started in 1958 with the development of CPM/PERT.
Morris (1987) argues that
 the origin of PM comes from the chemical industry just
prior to World War II.
 project management is clearly defined as a separate
discipline in the Atlas missile program, especially in the
Polaris project.
Kerzner (1998) observes that project management is an
“outgrowth of systems management.”
9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 28
History of PM…
Four periods have been identified to better capture the
history of modern project management:
1) prior to 1958,
2) 1958 – 1979,
3) 1980 – 1994, and
4) 1995 to present
9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 29
History of PM…
We can have five drivers for the evolution of
modern project management:
1. Development of management thought
2. Creation of special tools and techniques
3. Development of ICT
4. Socio-economic and political influences
5. Expanding scope of project management
9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 30
1. Development of management thought
No attention paid before 20th century
Lowly profession compared to bankers & lawyers
Treatment of management as an art or science confused
people
Belief that managers are born and not made
Early management thinkers have shaped the way we do
business today
The approaches of Thomas Owen, Frederick Taylor, Henry
Gantt and Henri Fayol, among others, have influenced our
understanding of project management
9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 31
Development of management…
Growing competition and complexity of managing
large business organizations gave a push to the
development of management concepts and principles.
Competition gave rise to factors like
Technology innovations
Obsolescence (oldness)
Increase in capital investment
Freedom at national and international markets
9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 32
Development of management…
Complexity came because of:
Increase in the size of business organizations
High degree of division of labor and specialization
Pressure of various conflicting groups
Socially oriented business controls by government
All these have demanded the efficiency in
management process which cannot come by trial
and error methods but by developing and applying
sound management concepts and principles
9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 33
2. Creation of Special Tools and Techniques
The activities of US navy gave rise to the emergence of project
management in the late 1950s and 60s.
This was the era of operations research and the development
of new tools and techniques including:
 GANTT CHART
 program evaluation and review technique (PERT) and
 critical path method (CPM)
Even today project management journals focus on how to
schedule project activities & resources to:
 reduce uncertainty and
 increase productivity, reliability and quality
9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 34
Tools and Techniques …
GANTT CHART
It is a graphical representation of a Project that
shows each task as a horizontal bar whose lengths
proportional to its time for completion.
It do not show how tasks must be ordered
(precedence) but simply show when a task should
begin and should end
It is often more useful to for depicting relatively
simple projects or sub projects of a large project, the
activities of a single worker, or for monitoring the
progress of activities compared to scheduled
completion dates..
9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 35
Tools and Techniques …
Program Evaluation and Review Technique (PERT)
It was developed by Booz-Allen & Hamilton as part of the
United States Navy's Polaris missile submarine program.
PERT is basically a method for analyzing the tasks
involved for completing a given project, especially the:
time needed to complete each task,
dependencies among tasks, and
minimum time needed to complete the total project
9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 36
Tools and Techniques …
Critical Path Method
It developed for plant maintenance projects
It determines the data ranges in which activates can
occurs by calculating the earliest and latest dates
activates can start and then the earliest and latest
dates activates can finish, based on the network
diagram and the activity duration.
Its diagram based on following project elements:
 List of all activities required for project
 Length of time for each activity
 Dependencies between the activities
9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 37
3. Development of ICT
 The ICT revolution in late 1960s and 70s gave project
management a new motivation
 The computer gave operational researchers massive
new possibilities to improve project management by
computational power
 Over the last 20 years, great achievements have been
made in ICT
 ICT has brought a wide range of operational tools
and techniques
 Today, ICT shortens distance and enables
geographically diverse teams to work together
9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 38
4. Socioeconomic and political influences
 Project management has been driven by political
and socio-economic forces
 The Manhattan (first atomic bomb project) required
new techniques, as it was a mega project
 Putting people on the moon, creating new weapons
and defense systems are huge projects that demand
special techniques
 Responding to human-made and natural disasters
put pressure on organizations and governments to
deal with uncertainty in projects better and easier.
 All these leads for the foundation of scientific PM
9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 39
5. Expanding Scope of Project Management
Now a day the scope of project management has been
expanding than ever
A well-defined project scope management helps to avoid:
 Constantly changing requirements
 Pivoting the project direction when you are already mid-way
 Realizing that the final outcome isn’t what was expected
 Going over the discussed budget
 Falling behind the project deadlines
All these required a more modernized and advanced tools of
project management
9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 40
1.3 Strategic planning, program and project
9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 41
 How do you define Plan, Program and Project?
 What is the similarity and difference between
program and project?
 Have you ever participated in preparation of
program or project in your previous experience?
Policy … Projects count…
National Plan
 Set overall growth and development target for a country
 Example: Growth and Transformation Plan (GTP 1 & 2)
Policy
It is a concept (usually in a written document), whereby the
government or a political party will determine decisions,
actions and other matters that will prove advantages to society
in general.
Sector policy
 Agriculture policy: technology-based intensification of
smallholder agriculture, .
Health policy: assurance of accessibility of health care for all
segments of the population
9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 42
Policy … Projects count…
Strategy
Approaches that should be undertaken to achieve the stated
policies. eg. ADLI
Programs
 They are planned-continuous or ongoing development or
investment activities that are not generally time bound.
 aim at improving the public welfare
 assumes decision making at national/organizational level.
 may consist of a number of projects
Project
 are means through which development targets (programs) are
converted into tangible benefits for the project beneficiaries.
 gives life to and is the visual and concrete representation of
plan, policy and strategy.
Policy … Projects count…
Examples
Programs
 Rural development program,
 General Education quality Improvement program,
 Health extension program,
 Public service reform program…
Projects
 Water Supply projects,
 Teacher Development projects,
 Ethiopia Health Centre Renovation and Coordination
project…
Project vs. program count…
 Intellectual/rational process : A
mental process involving imagination,
foresight and sound adjustment but
not guesswork.
 Continuous/perpetual process : An on-
going/dynamic exercise as old
assumptions change, old plans are
revised or new ones are prepared.
Project Program
Differences Has specific
real/geographic unit
Is specific in
objectives/ purpose
Has specific targets
groups
Has clearly determined
and allocated fund
Has specific life time
•May not have specific area
•Has got general objectives
•May not have specific
target groups
•May not have clear and
detailed financial
allocation
•May not have specific time
of ending (open ended)
Similarities Has purpose/objectives
Require input (financial, manpower, material)
Generate output (goods and/or services)
Operate over space and time
Project vs. program count…
If there is no organic link between plans, policies, and projects,
then the effectiveness and efficiency of investment decisions
could be compromised.
Promoting projects without having development policies and plans
will lead to scattered/dispersed and unorganized development
endeavors.
Policies and plans without projects mean non-implementation,
paper tiger decision making
Organic link between plan, program and project is given as:
National plan ⇒ Policy ⇒ Sectoral policy ⇒ Programs ⇒
Projects ⇒ Outcomes / impacts /changes
Project vs. program count…
Further more project needs to be SMART
S – Specific
A project needs to be specific in its objective.
A project is designed to meet a specific objective as
opposed to a program, which is broad.
A project has also specific and clear set of activities .
Projects have well defined sequence of investment
and production activities and a specific group of
benefits.
 A project is also designed to benefit a specific group
of people
Project vs. program count…
M- Measurable
Projects are designed in such a way that investment
and production activities, costs and benefits
expected should be identified and as much as
possible be valued (expressed in monetary terms)
in financial, economic and if possible social terms.
Though it is sometimes difficult to value especially
secondary costs and benefits of a project, attempt
should be made to measure them.
Measurable costs and benefits must lend
themselves for valuation and general projects are
thought to be measurable.
9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 48
Project vs. program count…
A – Area bounded
As projects have specific and identifiable group of
beneficiaries, so also have to have boundaries.
In designing a project, its area of operation must
clearly be identified and delineated.
Though some secondary costs and benefits may go
beyond the boundary, its major area of operation
must be identified.
Hence projects are said to be area bounded
9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 49
Project vs. program count…
R – Real
Planning of a project and its analysis must be made
based on real information.
Planner must make sure whether the project fits
with real social, economic, political, technical, etc
situations within the budget limit.
This requires detailed analysis of different aspects
of a project
9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 50
Project vs. program count…
T – Time bounded
A project has a clear starting and ending point.
The overall life of the project must be determined.
Moreover, investment and production activities have
their own time sequence.
Every cost and benefit streams must be identified,
quantified & valued and be presented year-by-year
9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 51
Individual Assignment (20 pts.)
1. Write about four periods of modern Project Management
History at list by incorporating
 Project Management Situation,
 Actual Representative Projects and
 Main Actors on the time.
2. Write the management thought of the following
scholars
 Henry Towne (work and payment)
 Frederick Winslow Taylor (standard job)
 Henri Fayol(principles and elements scientific
management )
 Mary Parker Follett (Humanizing)
 McGregor: (Theory X, Theory Y)
9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 52
2. Basic concepts of project
How do you understand the following project
concepts
Project characteristics
Project type
Project parameters
Project scope
Project cycle
9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 53
2.1 Definition of Project
 According United Nation Industrial Development
Organization (UNIDO)
Project is a proposal for investment to create, expand
and/or develop certain facilities in order to increase the
production of goods and/ or services in a community
during a certain period of time”.
 According to the project management institute (PMI)
a project is a temporary endeavor undertaken to:
 create a unique product, service, or a result;
 drive change;
 enable business value creation;
 initiation context
9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 54
Definition of Project…
Temporary endeavor
 It indicates that a project has a definite beginning and end.
 It does not necessarily mean a project has a short duration.
 The end of the project is reached when:
 The project’s objectives have been achieved;
 The objectives will not or cannot be met;
 Funding is exhausted or no longer available for allocation;
 The need for the project no longer exists;
 The human or physical resources are no longer available; or
 The project is terminated for legal cause or convenience.
 Projects are temporary, but their deliverables may exist
beyond the end of the project.
9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 55
Definition of Project…
Create a unique product , service, or a result
 A unique product that can be either a component of another
item, an enhancement or correction to an item, or a new end item
in itself (e.g., the correction of a defect in an end item);
 A unique service or a capability to perform a service
(e.g., a business function that supports production or
distribution);
 A unique result, such as an outcome or document (e.g., a
research project that develops knowledge that can be used
to determine whether a trend exists or a new process will
benefit society); and
 A unique combination of one or more products, services,
or results (e.g., a software application, its associated
documentation, and help desk services)
9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 56
Definition of Project…
Drive change in organizations
 From a business perspective, a project is aimed at moving an
organization from one state (current state) to another state
(future state) in order to achieve a specific objective.
 For some projects, this may involve creating a transition
state where multiple steps are made along a continuum to
achieve the future state.
 The successful completion of a project results in the
organization moving to the future state and achieving the
specific objective
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Definition of Project…
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Definition of Project…
 Examples of tangible elements include:
 Monetary assets,
 Stockholder equity,
 Utility,
 Fixtures,
 Tools, and
 Market share.
 Examples of intangible elements include:
 Goodwill,
 Brand recognition,
 Public benefit,
 Trademarks,
 Strategic alignment, and un Reputation
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Definition of Project…
Project Initiation Context.
Organizational leaders initiate projects in response
to factors acting upon their organizations.
Four fundamental categories for project initiation
 Meet regulatory, legal, or social requirements;
 Satisfy stakeholder requests or needs;
 Implement or change business or technological
strategies; and
 Create, improve, or fix products, processes, or services.
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2.2 Basic Characteristics of a project
1. A project is an exception
2. Unique Activities
3. Specific deadlines and goals
4. The desired result is identified
5. Connected Activities/Interdependencies
6. Complex Activities
7. Sequence activities
8. Progressive Elaboration
9. Within Budget
10. According to Specification
11. High Degree of Activity
12. Conflict
13. Life Cycle
14. High level of uncertainty & risk
15. Teamwork/multi-skill
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Basic characteristics…
1. A project is an exception.
 Unlike routines, projects involve investigation, completion,
arrangement, and reporting of findings in some way that
provides value.
 The answers to the basic project questions cannot be found in
the routines of your department, which is what makes it
exceptional.
2. Unique Activities
 A project has never happened before, and it will never
happen again under the same conditions (time and space,
outputs or deliverables etc).
 Something is always different each time the activities of a
project are repeated.
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Basic characteristics …
3. Specific deadlines and goals
Projects have identifiable starting and stopping points
with well known goals and activities.
However, projects may often have intended and
unintended social, economic and environmental
impacts that far outlast the projects themselves.
4. The desired result is identified
 A project is well defined only when a specific result is known.
 By comparison, departmental routines involve functions that
may be called ‘‘process maintenance.’’
 That means that rather than producing a specific outcome, a
series of recurring routines are aimed at ensuring the flow of
outcomes (e.g., reports) from one period to another
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Basic characteristics …
5. Connected Activities/Interdependencies.
Connectedness implies that there is a sequence, parasail,
logical or technical relationship b/n pairs of activities.
They are considered connected because the output from
one activity is the input to another.
6. Complex Activities
The activities that make up the project are not simple
and repetitive acts like painting the house, washing the
car, or loading the delivery truck.
They are complex, example, designing an intuitive user
interface to an application system.
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Basic characteristics …
7. Sequence of Activities
 A project comprises a number of activities that must be
completed in some specified order, or sequence.
 The sequence of the activities is based on technical
requirements, not on management prerogatives.
 To determine the sequence, it is helpful to think in terms of
inputs and outputs
8. Progressive elaboration
 Project scope will be broadly described early in the project
and becomes more explicit and detailed as the project team
develops better and more complete understanding of the
objectives and deliverables.
 We learn more and more about the project as it goes on
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Basic characteristics …
9. Within Budget
 Projects also have resource limits, such as amount of people,
money, or machines that are dedicated to the project.
 While these resources can be adjusted up or down by
management, they are considered fixed resources to the
project manager.
10. According to Specification
 customer, or recipient of the project’s deliverables, expects a
certain level of functionality and quality from the project.
 These expectations can be
 self-imposed; specification of the project completion date, or
 customer-specified; producing sales report on a weekly basis.
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Basic characteristics …
11. High Degree of Activity
Especially during the execution stage, a project
involves several hectic (excited) activities.
12. Conflict
 A project may be impacted by competing activities
with respect to resource needs or management focus.
13. Life Cycle
A project has different phases and is completed in
stages
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Basic characteristics …
14. High level of uncertainty & risk
As a result of its uniqueness, dependency on other
agencies and its relatively long-term nature; a
project is faced with a lot of uncertainty and risk
15.Teamwork/multi-skill
 Projects require a team of people with different
skills to get the job done
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2.3 Types of Project
 Projects can be classified in different way based on
a. Owner
 Public
 Private
B. Scale
 Small,
 Medium
 Large
C. Sector
 Agricultural
 Industrial
 Service
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Types of Project…
d. Task (objective)
(1) Manufacturing Projects:
 Where the final result is a vehicle, ship, aircraft, a piece of
machinery etc.
(2) Construction Projects:
 Resulting in the erection of buildings, bridges, roads, tunnels etc.
 Mining and petro-chemical projects can be included in this group.
(3) Management Projects:
 Which include the organization or reorganization of work without
necessarily producing a tangible result.
(4) Research Projects:
 In which the objectives may be difficult to establish, and where the
results are unpredictable.
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Types of Project…
e. New resources commitment
1. new investment
 designed to establish a new productive process
independent of previous lines of production.
2. expansion projects
 involve repeating or extending an existing economic
activity with the same output, technology & organization.
3. updating projects
 involve replacing or changing some elements in an
existing activity without major change of output.
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Examples of Project
 Constructing a road, building or facility
 The expansion of primary education in a given region/locality
or reforming school curriculum,
 Organizing an event, like a wedding or a party
 Case management, like social work or legal issue
 Working on solving organizational problems like inefficiency
 Renovating an old house
 Restructuring a system
 Developing a new software application
 Creating a new radio/ media advertisement
 Conducting marketing research,
 Running a campaigning for political office
 Building a water system for a community etc.
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Difference between projects
One project could be different from another in :
1. Size and number of separate activities
2. Number of various skills, departments and people
involved
3. Amount of time involved
4. Number of different activities involved
5. Amount of money involved
6. Impact on the organization and customers
7. Control procedures
8. Communication procedures
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2.4 Project parameters
 Project parameters define the scope, budget, schedule,
and quality of the project.
 There is an interrelationship among these parameters.
If you choose to increase the scope, you must also
increase the schedule or budget.
If you reduce the budget, you must decrease the
schedule, reduce the quality, and/or reduce the
scope of the project.
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Parameters…
Understanding the relative flexibility of the project
parameters helps you make decisions in line with
the business requirements.
For example, if budget is fixed, it is least flexible.
Therefore, you will have to modify your schedule,
scope, or quality if things change later on.
It is vital, from start of your project planning, to try
to define the way in which parameters will affect
your project.
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Parameters…
When it comes to PM, the following six factors constitute
the most important parameters for a given project.
 Scope
 Quality
 Cost/ budget
 Time
 Resources
 Quantity
 The set of those parameters form a system that must remain
in balance for the project to be in balance.
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Parameters…
1. Scope
Is a statement that defines the boundaries of project.
It tells not only what will be done but also what will
not be done.
It can be termed as
 functional specification (information systems industry),
 statement of works (engineering profession),
 document of understanding,
 a scoping statement,
 a project initiation document, and
 a project request form.
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Parameters…
 Whatever its name, this document is the foundation
for all project work to follow.
 It is critical that scope be correct .
 Beginning a project on the right foot is important,
and so is staying on the right foot.
 It is no secret that scope can change.
 You do not know how or when, but it will change.
 Detecting that change and deciding how to
accommodate it in the project plan are major
challenges for the project manager
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Parameters…
2. Quality
Two types of quality are part of every project:
a. Product quality.
 This refers to the quality of the deliverable from
the project.
 The traditional tools of quality control are used to
ensure product quality.
b. Process quality,
 Is quality of the project management process itself.
 The focus is on how well the project management
process works and how can it be improved .
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Parameters…
 Continuous quality improvement and process quality
management are tools used to measure process quality.
 A sound quality management program with processes
in place that monitor the work in a project is a good
investment.
 Quality management is one area that should not be
compromised.
 The payoff is a higher probability of successfully
completing the project and satisfying the customer
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Parameters…
 Here you need to be able to answer "Is this good enough?"
 Furthermore quality factors apply to
 inputs (the raw materials for the project),
 outputs (what the project produces),
 outcomes (the results of the project), and
 processes (the means used to achieve the outputs).
 Example: quality factors for employment training project
 training materials (the inputs),
 delivery of the training (the process),
 number of young people successfully ‘passing’ the training (the
outputs), and
 kind of work the young people achieve at the end of the project
(the outcomes).
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Parameters…
3. Cost /budget
 You may have to draw up the project budget (cost plan).
 You have to be certainly responsible for ensuring that
the budget is not overspent and that income is raised
according to the plan.
 You may need to ensure that the phasing of income and
expenditure is achieved successfully, so that you have
enough money for the project’s needs in plenty of time.
 How much money do you have, as Project Manager, in
moving the project spend from one cost heading to another?
 It is the basic question you need to answer for each activity
in project implementation
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Parameters…
 It is important to be clear:
 How much income you must raise to fund the project, if
any?
 How much you can spend and on what?
 How much income the project is intended to generate?
 Must you raise the income before you start to spend or not?
 How much discretion do you have about changing the
details of the budget – for example, moving money from
‘post’ to ‘stationery’ if that’s what you think is needed?
 In large organizations, especially in the public sector, it is
common for Project Managers to be very vague about the
budget for their project.
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Parameters…
4. Time
 The customer specifies a time frame or deadline date
within which the project must be completed.
 To a certain extent, cost and time are inversely
related to one another.
 The time a project takes to be completed can be
reduced, but costs increase as a result.
 Time is an interesting resource.
 It can’t be inventoried. It is consumed whether you
use it or not
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Parameters…
The objective for the project manager is to use the future
time allotted to the project in the most effective and
productive ways possible .
Future time (time that has not yet occurred) can be a
resource to be traded within a project or across projects.
Once a project has begun, the prime resource available to
the project manager to keep the project on schedule or get
it back on schedule is time.
A good project manager realizes this and protects the
future time resource jealously
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Parameters…
5. Resources
 They are assets, such as people, equipment, physical
facilities, or inventory, that have limited availabilities,
can be scheduled, or be leased from an outside party.
 Some are fixed; others are variable only in the long
term.
 In any case, they are central to the scheduling of
project activities and the orderly completion of the
project
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Parameters…
6. Quantity
 Some projects have no quantity parameters at all; others are
very focused on quantity.
 For example, if the project aim is to design a leaflet (pamphlet)
informing people about services, then the quantity of leaflets
produced is not one of the most important parameters.
 The main factors to be monitored will be
 the quality of the information given,
 its appropriateness to the audience,
 the cost involved and the print deadline if any.
 In employment training for young, quantity is a key factor.
 Funders and other stakeholders will have set clear standards for
the number of young people receiving the training and the
numbers successfully placed in work.
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2.5 Project Scope Creep
 It refers to unauthorized changes to the scope of a project,
that occur after the project scope has been baseline and/or
approved.
 Its typical manifestation is the addition of new product
features or functionalities without considering the impact to
the other project constraints such as time, cost, resources, risk,
quality, etc.
 Many of us get into a trap, saying that change is very small, and
routing them through change control procedures may
introduce more delays in the delivery.
 But you never know, whether the change is small or big, unless you
assess the impact to the project constraints.
 That is why, it is always recommended to route the change
through change control procedures.
Project Scope Creep
Causes of Project scope creep
1. Gaps in the Requirements
 Customers always do not know what they want.
 Sometimes certain requirements might have missed out.
 stakeholders may not be able to provide the requirement
description properly.
2. You have not considered all the stakeholders –
 During requirements collection phase, you have missed or not
involved some of the stakeholders, because of which some of
the requirements are not considered.
3. You are doing this type of project for the first time –
 you do not know much on what complexities are hidden in
project,
 You do not know what to ask and whom to ask.
Project Scope Creep
4. Do not have a sophisticated change control system in place
 Your project did not establish a proper change control system and
approval process.
5. Customer Expectations to do it for FREE or less cost
 Sometimes, customers think that this change does not impact
much on the project and put more pressure on you to deliver it
without any additional cost.
6. Do not have proper (formal) communication channel
established with customer.
Project Scope Creep
7. Inexperienced Project manager
 Project manager is not being able to identify the scope creep
situation, until it occurred.
8. Requirements or scope are being subjective instead
of objective
 Requirements agreed with no measurement criteria to
confirm, whether requirements are fulfilled or not.
9. Gold Plating
 Project team or the project manager add the extra
functionality in the project which is not part of the scope of
the project to please the customer or the senior
management
Project Scope Creep
Scope Creep Example
 Let us consider an example of developing a software
application for a customer in a phased manner.
 First phase you have already delivered to the customer
successfully.
 While the project team is working on the second phase
deliverables, customer has come up with a small change,
which initially seem like not going to take more than a
couple of hours to fulfill the same.
 So, you accepted to do it without looking at the impact on
the project constraints, as it seems to be a small change.
Project Scope Creep
 As you progress more on the change implementation, you
identified that, it is causing an impact to one or more of
existing functionalities in your project.
 And these functions must be tested for regression, which
eventually takes more time, effort, and cost for the project.
 This is exactly what Scope creep is.
Effects of Scope Creep
 Schedule overruns
 Cost overruns
 Quality issues
 Increase project risks
 Resource issues
 Other problems triggered by the above issues
Project Scope Creep
How to Manage Scope Creep Effectively?
 Requirements must be gathered from all the required
stakeholder timely and objectively
 Concrete Scope agreements and understand it by all
stakeholders in your organization and the customer side
organization
 Establish a Concrete Change Management procedure and
make sure you and the complete project team follows the
same, with no exceptions.
 Establish a formal communication channel with the
customer side stakeholders, to deal with changes in an
accepted and agreed way.
 Also make sure all the stakeholders are following the agreed
communication plan.
 Make sure team members coordinate in terms of project
scope and understanding of requirements.
2.4 Project cycle
There is general agreement that most projects pass
through a number of distinct phases.
Project life cycle defines the stages/phases that link the
beginning of a project to its end.
Project managers of organizations can divide projects
into stages to organize better management control with
relevant connections to the ongoing functions of the
performing organization.
The process of planning & managing projects can be
drawn as a cycle and each phase leads to next phase.
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Project cycle…
The way in which projects are planned and carried out
follows a sequence known as the project cycle.
The cycle starts with the identification of an idea
and develops that idea into a working plan that can
be implemented and evaluated.
Ideas are identified in the context of an agreed
strategy.
It provides a structure to ensure that stakeholders
are consulted and relevant information is available,
so that informed decisions can be made at key stages
in the life of a project
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Project cycle
According to PMBOK, project life-cycles generally define:
What technical work to do in each phase
When the deliverables are to be granted in each phase &
how each deliverable is reviewed, verified and validated
Who is involved in each phase
How to control and approve each phase
There is no single best way of categorizing an ideal
project life cycle
These phases can be divided into several equally valid
ways, depending on the executing agency or parties.
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Project cycle
I. Capital expenditure (project) decision
It is a complex decision process, which divided into:
1. Identification
2. Pre-feasibility Study
3. Feasibility (technical, financial, economic)
4. Selection and project design
5. Implementation
6. Ex-post evaluation
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Project cycle…
II. Project phase divided it into four broad phases:
1. Identification/Opportunity study/
2. Project preparation, which include:
• Pre-feasibility Study
• Feasibility (technical, financial, economic)`
• Support study
• Appraisal/evaluation/
3. Implementation/investment
4. Ex-post evaluation
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Project cycle…
III. The other alternative phase (UNIDO, 1991):
1. Pre-investment phase;
a. Identification/opportunity study/
b. Pre-feasibility study/ pre-selection/
c. Feasibility study
d. Support study;
e. Appraisal study.
2. Investment phase;
a. Negotiating and contracting;
b. Engineering design;
c. Construction and Procurement
d. production and fixing
e. Pre production marketing;
f. Manning and training.
3. Operation phase.
a. Commissioning and hand over and starting of operation
b. Post project evaluation/appraisal/
c. Replacement/rehabilitation
d. Expansion/innovation
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Project Cycle Management (PCM)
It was introduced by the European Commission in
the early 1990’s to improve the quality of project
design and management and thereby to improve
aid effectiveness.
It developed out of an analysis of the effectiveness
of development aid during the late 1980’s.
Evaluation findings from research works indicated
that a significant proportion of development
projects had performed poorly.
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PCM…
The researches identified a number of causes:
 Poor project planning and preparation
 Many projects not relevant to beneficiaries
 Risks were insufficiently taken into account
 Factors affecting the longer-term sustainability of project
benefits were ignored
 Lessons from past experience were rarely incorporated into
new policy and practice
PCM obliges practitioners in project design to focus on the
real needs of the beneficiaries by
 requiring a detailed assessment of the existing situation and
 applying the logical framework method
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PCM…
The strength of PCM is that project documents are
structured according to a standardized format dealing
with all relevant issues, including the assumptions on
which the project is based.
At each stage in the project cycle, these issues are
examined and revised where necessary and carried
forward to the next stage.
This system makes the project concept and context in
which it operates clear and visible, and enables therefore
better monitoring and evaluation.
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PCM…
PCM Principles in project cycle stages
1. Structured & informed decision-making
 Adherence to the phases of the project cycle to ensure
a structured and well-informed decision-making
process.
2. Client orientation
 It is involvement of stakeholders in decision-making
 Client orientation through the use of participatory
planning workshops at key phases of the project cycle,
and the formulation of the Project Purpose in terms of
sustainable benefits to be delivered to beneficiaries
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PCM…
3. Sustainability
Incorporation of aspects of sustainability into
project design to ensure sustainable benefits.
4. Logframe planning
It is to ensure a consistent analytical approach to
project design and management.
5. Integrated approach
It links the objectives of each project into national
and sectorial objectives within the partner country
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3. Project Management and
Affecting Factors
What do you mean by project management?
What are the main activities that a given manager
expected to perform?
 What are the expertise that a good manager
should acquire ?
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What is Project Management?
Project management is
the process of leading the work of a team to
achieve goals and meet success criteria at a specified
time.
is the application of knowledge, skills, tools,
and techniques to project activities to meet the
project requirements.
is both people and technical oriented.
Project Management…
Project management involves
 understanding the cause-effect relationships and
 interactions among socio-technical dimensions of
projects.
Improved competency in these dimensions will greatly
enhance your competitiveness as a project manager.
The field of project management is growing in
importance at an exponential rate.
It is nearly impossible to imagine a future management
career that does not include management of projects.
Project Management…
Project management is the process of:
 defining a project, developing a plan, executing the plan,
monitoring the progress against the plan, overcoming
obstacles, managing risks, and taking corrective actions.
 managing the competing demands and trade-offs
between the desired results of the project (scope,
performance, quality) and the natural constraints of the
project (time and cost ).
 leading a team that has never worked together before to
accomplish something that has never been done before in a
given amount of time with a limited amount of money.
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Project Management…
Challenge of project management
To achieve the project goal within the given
constraints.
To optimize the allocation of necessary inputs
to meet pre-defined objectives.
Types of project management
1. traditional,
2.waterfall,
3. agile, and
4.lean.
Project Management…
1. Traditional project management
 It is an established methodology where projects are
run in a sequential cycle.
 It follows a fixed sequence:
 initiation,
 planning,
 execution,
 monitoring, and
 closure.
 This approach puts special emphasis on linear processes,
documentation, upfront planning, and prioritization.
Project Management…
2. Waterfall Project Management
This is similar to traditional project
management but includes that each task needs
to be completed before the next one starts.
Steps are linear and progress flows in one
direction—like a waterfall.
Because of this, attention to task sequences and
timelines are very important in this type of
project management.
Often, the size of the team working on the
project will grow as smaller tasks are completed
and larger tasks begin.
Project Management…
3. Agile Project Management
 It is an iterative process focused on the continuous
monitoring and improvement of deliverables.
 At its core, high-quality deliverables are a result of
 providing customer value,
 team interactions, and
 adapting current business circumstances.
 It does not follow a sequential stage-by-stage approach.
 phases of the project are completed in parallel to each other by
various team members in an organization.
 This approach can find and rectify (correct) errors
without having to restart the entire procedure.
Project Management…
4. Lean Project Management
 This methodology is all about avoiding waste,
both of time and of resources.
 The principles of this methodology were gleaned
(collected) from Japanese manufacturing
practices.
 The main idea behind them is to create more
value for customers with fewer resources.
Project Management…
Which type of project management have
you implemented (implementing) in
your organization?
Which one is more relevant for our
country?
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Project Management…
In general, project management refers to:
Identifying requirements: the issues the project
is attempting to address
Establishing clear and achievable objectives
Balancing the competing demands for quality,
scope, resources, time and cost
Adapting the specification, plans, and
approach to the different concerns and
expectations of the various stakeholders
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3.1 Area of expertise in PM
What do you mean by area of expertise?
What are the areas of expertise in PM?
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 Integration Management
 Scope Management
 Time Management
 Cost Management
 Quality Management
 Human Resource Management
 Communications Management
 Risk Management
 Procurement Management
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Understanding the
project environment
 People
 Market
 Risk tolerance
 Databases
 company’s big picture
Project
management body
of knowledge
Area knowledge,
standards & regulations
 Operational
 Technical
 Management
specializations
 Industry groups
Area of
expertise in
PM
Interpersonal skills General management
knowledge and skills
 planning,
 organizing,
 staffing,
 executing and
 controlling
 Transparency
 Communication
 Listening Skills
 Appreciating Teamwork
 Consistency and Reliability
 Trustworthiness
 The Drive to Set Goals
 Making Decisions
 Empathy and Sensitivity
 Rewarding and Recognizing
 A Willingness to Change
 Conflict Resolution
 Empowering and Motivating
Your Team
Area of expertise in PM…
1. Understanding the Project Environment
A project should consider how it affects people
and how people affect it.
 Projects are undertaken in social, economic and
environmental contexts.
 They also have intended and unintended
impacts on the contexts.
Therefore, it is very essential to consider projects in
their cultural, social, national, international,
religious, political, physical environmental and
economic contexts.
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Area of expertise in PM…
You can’t manage your project in a vacuum
Think of enterprise environmental factors:
People (the skills and organizational culture where you
work)
Market (the way your company is performing)
performing)
Risk tolerance (some companies are highly tolerant,
others are not)
Databases (where your company stores data)
Your company’s big picture (programs, portfolios)
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Area of expertise in PM…
2. Application Area Knowledge,
Standards and Regulations
These are divisions of projects that possess common
significant components in such projects.
These divisions or categories are not needed or
available in all projects.
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Area of expertise in PM…
Areas of application are mostly defined in terms of:
a. Operational departments and supporting
disciplines (e.g. legal, production, inventory,
marketing, logistics, and personnel)
b. Technical elements (e.g. software development or
engineering, or construction engineering)
c. Management specializations (e.g. government
contracting, community development and product
development)
d. Industry groups (e.g. automotive, chemicals,
agriculture and financial services)
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Area of expertise in PM…
3. General Management Knowledge and Skills
Project management also holds the basic
functions of general management:
A. planning,
B. organizing,
C. staffing,
D. executing and
E. controlling.
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Area of expertise in PM…
A. Planning:
It involves identifying alternative courses of
action/activities and selecting the most efficient
course of action to achieve the objective(s);
it includes translating long-term organizational
goals into short term objectives and targets;
It involves
 identifying the constraints and resource needs
of the specific activities and
 risks involved in the achievement of the project
objective(s)
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Area of expertise in PM…
Example:
Consider a cookery manager who manages the use of cooking
resources to produce the right number and quality of meals.
The manager will be judged by what is achieved.
 The number and quality of the meals will determine the
manager’s effectiveness (doing the right job or the job you
are supposed to be doing)
 The way the job was done will determine the efficiency
(doing the job right or in the way that consumes fewest
resources).
Two managers can achieve the same number of meals of the right
quality, using different levels of ingredients (resources) but the
one who consumes fewer resources will be the more efficient.
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Area of expertise in PM…
list the main resources which are available to
you in your work and the goods or services that
you produce/provide
write down the measures by which you are
judged and comment on the adequacy of such
measures
Are you effective or efficient worker?
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Area of expertise in PM…
Ways of measuring the success of transforming
1. Measuring inputs: focuses on the efficiency of your use
of resources. Did you use the fewest resources possible to
achieve the outputs?
2. Measuring the output: focuses on the no. and quality of
the product/services that are produced or supplied. How
many meals were made, & how appetizing were they?
3. Measuring outcome: include the long term results of the
transformation. Outcome measures have assumed new
importance in value-based organizations where managers,
users and donors are all interested in the long-term benefits
of an activity
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Area of expertise in PM…
A project’s and hence a project manager’s achievement
should be judged by
what has been achieved and
cost of the achievement.
Getting job done remains the project manager’s primary
purpose but that manager must keep an eye on the cost
achieving objectives at any cost is a rule that is rarely
applied
Identifying resource needs in planning implies
identifying the costs involved.
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Area of expertise in PM…
Monetary measurement of costs is being used as the
common unit of account for both the inputs & outputs
 Such accounting (attaching money value) helps us to
answer the question of whether the production of the
good or service is worthwhile.
 However, it is subjective and provides only a framework for
valuation
 there are difficulties in attaching monetary values to some
 inputs (when the inputs are less directly related to the
level of output) and
 outputs (services and humanitarian activities involving
saving people’s lives which has no market price).
 Even with the measurement issues, the project management
should focus on the cost minimizing route
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Area of expertise in PM…
 How adequate do you think are money values as
a measure of the value of the outputs?
 What complementary measures can you
suggest?
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Area of expertise in PM…
B. Organizing:
It involves mobilizing the resources necessary for
executing the planned activities:
People
financial
inputs/materials
other resources: space, equipment, facilities
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Area of expertise in PM…
Supporting disciplines in organizing included:
 Financial management and accounting
 Purchasing and procurement
 Sales and marketing
 Contracts and commercial law
 Manufacturing and distribution
 Logistics and supply chain
 Strategic, tactical, and operational planning
 Organizational structures & behavior, personnel
administration, compensation, benefits, and career paths
 Health and safety practices
 Information technology
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Area of expertise in PM…
C. Staffing
It include:
job design,
Job enrichment,
staff recruitment,
motivation
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Area of expertise in PM…
Job design:
It may be caused by
 introduction of new technology,
 implementation of a new policy, move to a new building,
 provision of new product or service.
It may involve
 Job rotation (allowing people to rotate between
jobs a regular intervals)
 Job enlargement: involves amalgamating several
tasks into a single job
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Area of expertise in PM…
Job enrichment
 It contains change aimed at increasing the level of
responsibility of employees concerned to improve job
motivation through enhancing responsibility, growth and
learning, achievement and recognition.
It Involves
 Removing some controls
 Increasing accountability
 Giving a person a complete natural unit of work
 Granting additional authority
 Introducing new and more difficult tasks not previously handles
 Assigning individuals specific or specialized tasks enabling them to
become experts
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Area of expertise in PM…
Staff recruitment: involves
 knowing one’s responsibility and authority in the
recruitment process
 Job analysis (analyzing the job systematically and in detail),
 job description (describing the job and stating what the job
holder is responsible for & required to do),
 job specification (to specify the kind of person needed to fill
the job described: precise about the skills, knowledge,
qualifications, attributes required for the job)
 identifying sources of recruits and advertising
 handling applications,
 selection procedures
 making decisions
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Area of expertise in PM…
Motivation:
It is important to understand what people really want
and expect from their work
It is in order to provide them with
 work that is satisfying and rewarding
 get the work done effectively and efficiently
Our assumptions about people’s motivations affects
the way we manage
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Area of expertise in PM…
Models of motivation
1. The rational economic model: suggests that people’s
efforts can largely be controlled by offering or
withholding financial rewards
2. The social model: asserts that people at work are
primarily motivated by social needs such as the need for
friendship, acceptance and sense of identity
3. The self-actualizing model: assumes that people are
primarily motivated to seek a sense of meaning and
accomplishment in their work; the mgmt.'s role should
be towards enabling staff to make the best use of their
abilities; the accomplishment of a meaningful and
challenging task provides motivation
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Area of expertise in PM…
4. The complex model: human need and motivations
are complex and will vary according to a person’s
experiences and expectations and the
circumstances s/he faces.
5. Psychological contract: a way of trying to obtain a
mutually satisfactory match between a person’s
expectations of work and the organization’s
expectation of the person; motivation is an
outcome of the relationship between an individual &
the employing organization
6. Expectancy theory: stresses the importance of the
interrelationship b/n effort, performance, outcomes.
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Area of expertise in PM…
D. Executing:
Here the project plan is put into motion and the
work of the project is performed.
It is important to maintain communicate as needed
during implementation.
Progress is continuous, appropriate adjustments are
made and recorded as variances from the original plan.
During project implementation,
 people are carrying out the tasks, and
 progress information is being reported
through regular team meetings.
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Area of expertise in PM…
E. Controlling:
It involves
 checking project outcomes against initially set
objectives,
 identifying gaps & challenges, and
 taking corrective measures in time
We can have three ways of controlling
 Reactive: analyzing and taking measures after the problem
occurred.
 proactive: on-going follow-up of processes and outcomes;
 Participatory: when it involves stakeholders at various levels
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Area of expertise in PM…
4. Interpersonal Skills
1. Transparency
2. Excellent Communication
3. Listening Skills
4. Appreciating and Encouraging Teamwork
5. Consistency and Reliability
6. Trustworthiness
7. The Drive to Set Goals
8. Making Decisions (and Accepting Responsibility)
9. Empathy and Sensitivity
10. Rewarding and Recognizing Employees
11. A Willingness to Change
12. Conflict Resolution (than Conflict Avoidance)
13. Empowering and Motivating Your Team
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Area of expertise in PM…
1. Transparency
 Employees expect you to be transparent with
them.
 They want to know what’s going on with their
company and how they are doing.
 Your employees are adults; you don’t need to protect
them.
 They want the truth, and good managers know how
to be transparent, genuine, and direct.
Area of expertise in PM…
2. Excellent Communication
 Managers need to be excellent communicators in
 maintaining regular contact with employees,
 providing frequent feedback,
 delivering rewards and
 recognition for excellent performance.
 Managers need to communicate with employees in
comfortable way (face to face, email, chat, body
language etc.).
 Good managers should let employees know that
they can freely discuss anything work-related on a
regular tempo.
Area of expertise in PM…
3. Listening Skills
Employees want to know that their opinions and
insights are being heard.
 Listening is just as important as writing and
speaking
 Take the time to focus on your employees and
what they are saying.
When you get valuable feedback, make a
conscious effort to take action based on it.
 This will show your employees that when they speak up,
they can make a difference in their working
environment.
Area of expertise in PM…
4. Appreciating and Encouraging Teamwork
 Companies that encourage teamwork enjoy
 improved efficiency,
 work outcomes, and
 individual development.
 Managers should
 support collaboration at every opportunity and
 mitigate toxic behavior and unhealthy competition.
 Some companies still operate on a “stacked ranking” system
 the lowest-performing employees are shown the door
 have been shown to be demotivating to employees
 Create toxic relationships and
 reduces the likelihood that employees will help one another
Area of expertise in PM…
5. Consistency and Reliability
 Employees need to know that their leader is
stable, secure, and reliable.
 They will come to you for clarification regarding
organizational objectives, views on their work, and
advice.
 Employees should feel comfortable approaching you
when they are struggling and need help.
 Employees need to know that their manager is a level-
headed person who won’t fly off the handle at a
moment’s notice.
 Otherwise, they won’t feel able to open up to you
and their trust in management will weaken.
Area of expertise in PM…
6. Trustworthiness
 Employees need to
 have faith (trust) in their leaders
 assured management is telling them the truth and
 know that their managers have their employees’ best
interests at heart.
 If employees feel like you don’t support them, it’ll
 lead to a toxic work environment,
 reduced collaboration, and
 unhealthy competition in your workplace.
 Your trustworthiness is built on
 respecting the privacy of your employees and
 offering honest advice based on what aligns best with your
company’s goals.
Area of expertise in PM…
7. The Drive to Set Goals
 The new trend in goal setting is empowering employees to
determine their own goals.
 Doing so gives employees more ownership over their
goals, which results in more work being done (and to
a better standard).
 Good managers need to be able to
 to understand how to form motivational and realistic goals,
 guide the process to align with organizational objectives.
 These goals also need to be challenging to keep
employees engaged and motivated.
Area of expertise in PM…
8. Making Decisions (and Accepting Responsibility)
New managers sometimes struggle to make decisions;
 “analysis paralysis” (over-thinking a decision) or
 “bike shedding” (focusing on insignificant details)
 obsess over possible negative outcomes, no matter how unlikely,
 rush into a decision despite lacking the right information.
As a managers should
 Learn to make decisions and
 accept the consequences of your actions
Managers need to make decisions
 for the benefit of their team and company,
 taking a structured, logical approach
 keeping a cool head.
Area of expertise in PM…
9. Empathy and Sensitivity
 Emotional intelligence, which encompasses sensitivity &
empathy, is a soft skill all modern managers need to have.
 Managers need to pick up on signs that an employee is
pushing themselves too far, which can cause burnout,
anxiety, depression, and disengagement.
Managers need to be able to put right provisions in work:
 putting flexible working measures in place,
 understanding about mental health breaks, and
 mindful of anxiety during the goal setting process.
 Those measures shows employees that they are not alone,
and that the company is able and willing to help them.
Area of expertise in PM…
10. Rewarding and Recognizing Employees
A good manager understands the value and time
of rewarding and recognizing employees.
Be sure to reward and recognize your employees
for their hard work to retain your team.
Employees don’t just work for a paycheck (salary).
 It takes much more than that to keep employees aligned
with your company objectives and going that extra mile.
 Employees need to know that their work and efforts are
acknowledged and appreciated.
Area of expertise in PM…
11. A Willingness to Change
 The ways we operate in terms of technology, motivating
employees, and reviewing performance are processes
constantly subject to change.
 From year to year, your business will look different and this
is a good thing.
 It means you’re staying relevant and competitive, which
means you’ll be around for years to come.
Good managers are adaptable and flexible.
 They are ready for change and they plan for it, seeing
disruption as an exciting challenge rather than a burden.
Area of expertise in PM…
12. Conflict Resolution (than Conflict Avoidance)
 Workplace conflict is an ongoing issue in organizations.
 personality conflicts being a primary cause.
 Good managers need
 to be aware of conflict
 pick up on signs of bad manners and mistreatment of it nd
 to resolve it .
 Leaving such issues to aggravate is very bad for
employee morale and performance.
 Confronting these situations head-on allows managers
to arrive at a solution before it escalates and becomes
unavoidable.
Area of expertise in PM…
13. Empowering and Motivating Your Team
 Every generation & individual is motivated by differ things
 Good managers can relate to every member of their team,
which will help them understand how to empower and
motivate employees to get the best out of them and help
them become the best they can be.
 This can come in the form of sales SPIFFs, competitions, or
simply recognizing employees for their hard work.
 No matter what motivational technique you adopt, be sure to
understand what motivates your team and give them
incentives to work toward.
Area of expertise in PM…
 Which of the stated interpersonal skills do you
have?
 Which of the stated interpersonal skills do you
lack?
 How about your boss?
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Area of expertise in PM…
5. Project Management Knowledge Areas
It involves project
a) Integration Management
b) Scope Management
c) Time Management
d) Cost Management
e) Quality Management
f) Human Resource Management
g) Communications Management
h) Risk Management
i) Procurement Management
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Other project affecting factors
1. Environmental Enterprise Factors
 Internal to the organization
 External to the organization
2. Organization Process Asset
 Processes, policies, and procedures; and
 Organizational knowledge bases
3. Organizational System
 Governance frameworks,
 Management elements and,
 Organizational structure types
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3.2 Environmental Enterprise Factors
 EEFs refer to conditions, not under the control of
project team
 EEFs considered as inputs to many project management
processes, specifically for most planning processes.
 These factors may
 enhance or constrain project management options.
 have a positive or negative influence on the outcome.
 internal and/or external to the organization
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EEFs …
Based on your experience, sate and
explain the internal and external
environmental factors which can
affect your project/organizational
performances?
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EEFs …
A. EEFS Internal to the organization
The following EEFs are internal to the organization:
1. Organizational culture, structure, & governance.
 Examples: vision, mission, values, beliefs,
cultural norms, leadership style, hierarchy and
authority relationships, organizational style,
ethics, and code of conduct.
2. Geographic distribution of facilities & resources.
Examples: factory locations, virtual teams,
shared systems, and cloud computing.
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EEFs …
3. Infrastructure.
Examples: existing facilities, equipment,
organizational telecommunications channels,
information technology hardware, availability, and
capacity.
4. Information technology software.
Examples: scheduling software tools,
configuration management systems, web interfaces
to other online automated systems, and work
authorization systems.
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EEFs …
5. Resource availability.
Examples: contracting and purchasing constraints,
approved providers and subcontractors, and
collaboration agreements.
6. Employee capability.
Examples: existing human resources expertise,
skills, competencies, and specialized knowledge
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EEFs …
B. EEFS External to the organization
The following EEFs are external to the organization.
1. Marketplace conditions.
 Examples: competitors, market share brand
recognition, and trademarks.
2. Legal restrictions.
 Examples: country or local laws and regulations
related to security, data protection, business conduct,
employment, and procurement.
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EEFs …
3. Commercial databases.
Examples: benchmarking results, standardized
cost estimating data, industry risk study
information, and risk databases.
4. Academic research.
Examples: industry studies, publications, and
benchmarking results.
5. Physical environmental elements.
Examples: working conditions, weather, and
constraints.
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EEFs …
6. Social and cultural influences and issues.
 Examples: political climate, codes of conduct, ethics,
and perceptions.
7. Government or industry standards.
 Examples: regulatory agency regulations and
standards related to products, production,
environment, quality, and workmanship.
8. Financial considerations.
 Examples: currency exchange rates, interest rates,
inflation rates, tariffs, and geographic location.
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3.3 Organization Process Asset
Organizational process assets (OPAs)
 are the plans, processes, policies, procedures, and knowledge
bases specific to and used by the performing organization.
 These assets influence the management of the project.
OPAs include:
 any artifact, practice, or knowledge from any or all of the
performing organizations involved in the project that can be
used to execute or govern the project.
 the organization’s lessons learned from previous projects and
historical information.
 completed schedules, risk data, and earned value data.
 OPAs are inputs to many project management processes.
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OPAs…
Since OPAs are internal to the organization, the
project team members may be able to update and add
to the organizational process assets as necessary
throughout the project.
They may be grouped into two categories:
1. Processes, policies, and procedures; and
2. Organizational knowledge bases
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OPAs…
1. Processes, policies, and procedures;
are not updated as part of the project work.
are usually established by the project management office
(PMO) or another function outside of the project.
These can be updated only by following the appropriate
organizational policies associated with updating
processes, policies, or procedures.
Some organizations encourage the team to tailor
templates, life cycles, and checklists for the project.
In these instances, the project management team should
tailor those assets to meet the needs of the project
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OPAs…
2. Organizational knowledge bases
They are updated throughout the project with
project information.
For example the following are continually updated
throughout the project,
 information on financial performance,
 lessons learned,
 performance metrics and issues, and
 Defects
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OPAs…
 In your organization/ work place is there any
organization process asset?
 If there how it helps to perform your day to
day activities?
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3.4 Organizational System
To operate effectively and efficiently, the project
manager needs to understand where responsibility,
accountability, and authority reside within the
organization.
This understanding will help the project manager
effectively use his or her power, influence, competence,
leadership, and political capabilities to successfully
complete the project.
Organizational system factors are:
1. Governance frameworks,
2. Management elements and,
3. Organizational structure types
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Organizational System…
1. Governance Frameworks
 PMI research reveals that governance refers to
organizational or structural arrangements at all levels of
an organization designed to determine and influence the
behavior of the organization’s members.
 This research suggests that the concept of governance is
multidimensional and:
 Includes consideration of people, roles, structures, and
policies; and
 Requires providing direction and oversight through data
and feedback.
 Governance is the framework within which authority is
exercised in organizations.
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Organizational System…
Governance framework includes but is not limited to:
 Rules,
 Policies,
 Procedures,
 Norms,
 Relationships,
 Systems, and
 Processes.
Governance framework influences how:
 Objectives of the organization are set and achieved,
 Risk is monitored and assessed, and
 Performance is optimized
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Organizational System…
Project governance refers to the framework,
functions, and processes that guide project
management activities in order to create a unique
product, service, or result to meet organizational,
strategic, and operational goals.
There is no one governance framework that is
effective in all organizations.
A governance framework should be tailored to the
organizational culture, types of projects, and the
needs of the organization in order to be effective
9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 175
Organizational System…
2. Management Elements
are the components that comprise the key functions
or principles of general management in the
organization.
The general management elements are allocated within
the organization according to its governance framework
and the organizational structure type selected.
Key functions /principles of management include:
 Division of work using specialized skills and availability to
perform work;
 Authority given to perform work;
 Optimal use of resources;
9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 176
Organizational System…
Key functions /principles of management…
 Responsibility to perform work appropriately assigned
based on such attributes as skill and experience;
 Discipline of action (e.g., respect for authority, people,
and rules);
 Unity of command (e.g., only one person gives orders
for any action or activity to an individual);
 Unity of direction (e.g., one plan and one head for a
group of activities with the same objective);
 Paid fairly for work performed;
 General goals of organization take precedence over
individual goals;
9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 177
Organizational System…
Key functions /principles of management…
 Clear communication channels;
 Right materials to the right person for the right job at
the right time;
 Fair and equal treatment of people in the workplace;
 Clear security of work positions;
 Safety of people in the workplace;
 Open contribution to planning and execution by
each person; and
 Optimal morale
9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 178
Organizational System…
3. Organizational Structure Types
Determination of the appropriate organizational
structure type is a result of the study of tradeoffs
between two key variables.
1. organizational structure types existing for use and
2. how to optimize them for a given organization.
There is not a one-size-fits-all structure for any
given organization.
The final structure for a given organization is unique
due to the numerous variables to be considered.
9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 179
Organizational System…
 Factors to consider in selecting organizational
structure:
Degree of alignment with organizational objectives,
Specialization capabilities,
Span of control, efficiency, and effectiveness,
Clear path for escalation of decisions,
Clear line and scope of authority,
Delegation capabilities,
Accountability assignment,
Responsibility assignment,
Adaptability of design ,
Simplicity of design,
9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 180
Organizational System…
 Factors to consider…
 Efficiency of performance,
 Cost considerations,
 Physical locations, and
 Clear communication (e.g., policies, status of work &
organization’s vision).
Activity
 For influences of Organizational Structures on
Projects refer “Project Management Body of
Knowledge and Agile Practice Guide” book on
Page 47
9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 181
4. Project management process groups
With the application of knowledge, skills, tools,
and techniques in project activities to meet project
requirements, project management is
accomplished through processes.
A process is a set of interrelated actions and
activities that are performed to achieve a pre-
specified set of products, results, or services
 All PM processes are aggregated into five groups:
1. Initiating Process Group
2. Planning Process Group
3. Executing Process Group
4. Monitoring and Controlling Process Group
5. Closing Process Group
9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 183
9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 184
4.1 Initiating/Identification
It consists of those processes performed to define a
new project or a new phase of an existing project
by obtaining authorization to start the project or phase.
The purpose of the Initiating Process is to
align the stakeholders’ expectations and project
purpose,
inform stakeholders about scope and objectives, and
discuss how stakeholders participation in the project
and its associated phases can help to ensure their
expectations are met.
9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 185
Initiating…
How do you initiate (identify) project ideas in your
organization
Where do you get your project ideas?
Have you checked the alignment of stakeholders’
expectations and project purpose,
Have you inform and discuss stakeholders about
the scope, objectives and their participation
9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 186
Initiating…
Within the Initiating processes,
 the initial scope is defined
 initial financial resources are committed
 Stakeholders who will interact and influence the overall
outcome of the project are identified.
 If not assigned, the project manager is appointed.
This information is captured in the project charter
and stakeholder register.
When the project charter is approved,
 the project is officially authorized, and
 the project manager is lawful to apply organizational
resources to project activities.
Initiating…
The key benefits of this Process Group are that
 only projects that are aligned with the organization’s
strategic objectives are authorized and
 the business case, benefits, and stakeholders are
considered from the start of the project.
In some organizations, project manager is involved in
developing the business case & defining the benefits.
In other organizations, pre-project work is done by:
 the project sponsor,
 project management office (PMO),
 portfolio steering committee, or
 other stakeholder group.
What is your organization trend look a like in this regard ?
Initiating…
1.1 Develop Project Charter
It is the process of developing a document that
formally authorizes the existence of a project and
provides the project manager with the authority to
apply organizational resources to project activities.
The key benefits of this process are that it
provides a direct link between the project and the
strategic objectives of the organization,
creates a formal record of the project, and
shows the organizational commitment to the project.
Initiating…
Project charter input and output
9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 190
Initiating…
1.2 Identify Stakeholders
It is the process of identifying project stakeholders
regularly and analyzing and documenting relevant
information regarding their interests, involvement,
interdependencies, influence, and potential impact
on project success.
The key benefit of this process is that it enables the
project team to identify the appropriate focus for
engagement of each stakeholder or group of stakeholders.
This process is performed periodically throughout the
project as needed.
Initiating…
 Internal stakeholders:
 Sponsor,
 Resource manager,
 Project management office (PMO),
 Portfolio steering committee,
 Program manager,
 Project managers of other projects, and
 Team members.
 External stakeholders:
 Customers,
 End users,
 Suppliers,
 Shareholders
 Regulatory bodies, and
 Competitors
9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 192
Initiating…
Project stakeholders
9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 193
Initiating…
Identify Stakeholders: Inputs and Outputs
9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 194
4.2 Planning
Planning Process Group consists of those processes that
 establish the total scope of the effort,
 define and refine the objectives, and
 develop course of action required to attain those
objectives.
Here are expected to develop:
the components of the project management plan and
the project documents used to carry out the project.
The nature of a project may require the use of repeated
feedback loops for additional analysis.
9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 195
Planning…
2.1 Project Management Plan (PMP)
 It is the process of defining, preparing, and coordinating all plan
components and consolidating them into an integrated project
management plan.
 The key benefit of this process is the production of a comprehensive
document that defines the basis of all project work and how the work
will be performed.
Develop PMP: Inputs and Outputs
9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 196
9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 197
Plan Resource
Management
Project
Management Plan
Components
Plan Quality
Management
Plan
Communications
Management
Plan Risk Management
A. Identify Risks
B. Perform Qualitative Risk Analysis
C. Perform Quantitative Risk Analysis
D. Develop Risk Responses
Plan Schedule
Management
A. Define Activities
B. Sequence Activities
C. Estimate Durations of
Activity
D. Develop Schedule
Define
Scope
Plan Cost
Management
A. Estimate Costs
B. Determine Budget
Plan
Procurement
Management
Planning…
Plan
Stakeholder
Engagement
Crate
WBS
Estimate activity
Resource
Planning…
2.2. Plan Scope Management
 It is the process of creating documents that determine how
the project and product scope will be defined, validated, and
controlled.
 The key benefit of this plan is that it provides guidance and
direction on how scope will be managed throughout the
project.
2.3 collect Requirements
 It is the process of determining, documenting, & managing
stakeholder needs and requirements to meet project or
phase objectives.
 The key benefit of this process is, it provides the basis for
defining the product scope and project scope.
9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 198
Essental of Project Management Lecture Slide.pdf
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Essental of Project Management Lecture Slide.pdf

  • 1. Skillmart International College Essentials of Project Management Course Outline 9/2/2023 1
  • 2. 1. Basic information 9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 2 Course Title Essentials of Project Management Course Code PMAE 511 Credit Hours 3 Course Instructor Name: Amare Mabrie (Assi. Prof.) Mobile: 09208333315 Email: amabriesm21@gmail.com
  • 3. 2. Course Description The course will familiarize students with the standard components of PMBOK (5 major process groups and 49 process) acquaint students with the broader context of project management environment within which projects operate enable students to make a realistic operational activity plan based on  sound understanding of implementation processes,  available resources and external conditions and  communicate effectively with relevant stakeholders. 9/2/2023 3
  • 4. 3. Course Objective The overall objective of the course is to introduce students with the basic concept of project management, knowledge areas, processes and process groups using PMBOK guideline. At the end of the course, students will be able to understand  The need and history of project management  Basic concept of planning, program and project  Project definition, parameters and cycle  project management and affecting group  project management process groups 9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 4
  • 5. 4. Course Content 1. Introduction Why we need to study project management History of project management Strategic planning, program and project 2. Basic concepts of project Definition of project Project parameters Project scope Project cycle 9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 5
  • 6. Course content… 3. Project Management and Affecting Factors  Area of expertise in project management  Environmental Enterprise Factors  Organization Process Asset  Organizational System and Project 4. Project management process groups  Initiating/Identification  Planning  Executing/Implementing  Monitoring and Controlling  Closing 9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 6
  • 7. 5. References PMI (2017). A Guide to Project Management Body of Knowledge, 6th edition, USA. PMI (2013). A Guide to Project Management Body of Knowledge (5th ed), USA. Heldman, Kim (2011). Project Management Jumpstart (3rd ed), Sybex, USA Wysocki and McGary (2014). Effective Project Management (7th ed.): Traditional, Agile, Extreme. Wiley Publishing Inc., USA 9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 7
  • 8. 6. Mode of delivery The course will use Lerner-centered teaching learning The methods include:  Active learning  Cooperative learning and  Inductive teaching and learning, 7. Assessment method  Continuous assessment= 50%  Final Exam =50% 9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 8
  • 9. 1. Introduction What is project for you? What do you mean by management? How do you define project management? Why we need to study project management? 9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 9
  • 10. Introduction… Project  is a temporary endeavor undertaken to create a unique product, service, result or combination of them. Management  process of dealing with or controlling things or people  administration of an organization, whether it is a business, a non- profit organization, or a government body. Project management  is the application of knowledge, skills, tools and techniques to project activities to achieve its requirements  it focuses on interdependencies  within a project to determine optimal approach for its management.  between projects, between projects & program level to determine the optimal approach for managing them 9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 10
  • 11. 1.1 Why we need to study project management The basic purpose for initiating a project is to accomplish specific goals. The reason for organizing the task as a project is to focus the responsibility and authority for the attainment of the goals on:  an individual,  small group,  country level and  even at global position . The project manager is expected to coordinate and integrate all activities needed to reach the project’s goals. 9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 11
  • 12. Why we need to study PM… Need of study PM 9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 12 Plan and Organize tasks Make a Schedule Drive Teamwork Better Resource Management Helps with Integration Reduces Costs Facilitates Change Improve the Quality of Work Better Use of Information Helps You Learn From Failure
  • 13. Why we need to study PM… 1. Plan and Organization tasks  It helps to decide who, what and when to do things  It is an important skill to successfully complete a project. 2. Make a Schedule  When faced with a large project, you should break it into smaller portions and set up a schedule to be manageable.  It ensure you meet deadlines, both long-term & short-term, meaning you can assess your progress & quality of your work. 3. Drive Teamwork  Successful project management relies on teamwork and collaboration to bring a variety of ideas to the table.  Sharing ideas, even for individual projects, helps to spark inspiration and adds to the overall quality of work. 9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 13
  • 14. Why we need to study PM… 4. Better Resource Management  Implementing successful project management skills can help you better manage scare and expensive resources.  Knowing your capabilities & limitations save you time & effort, 5. Helps for Integration  No project happens in isolation.  PM helps you in integrating projects, or parts of projects, more smoothly and seamlessly. 6. Reduces Costs  Successful PM ensures you plan your project execution carefully so that there is no waste and limited mistakes.  This helps reduce project costs and ensures you have more in your budget for the next round. 9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 14
  • 15. Why we need to study PM… 7. Facilitates Change  Life is full of change(may be unexpected) and these changes can affect your projects.  Successful PM can help you better adapt to these changes 8. Improve the Quality of Work  Implementing good PM helps you to maintain high standards (quality of work) throughout and across projects.  Maintaining quality not only ensures a good grade, but it also secures consistency, helping you maintain your standards. 9. Better Use of Information  If you do not manage new knowledge efficiently, you are likely to forget it and lose it.  Good PM skills help you organize and manage new knowledge, making sure it is retained and not lost when the project is over. 9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 15
  • 16. Why we need to study PM… 10. Helps You Learn From Failure  Despite all your best efforts, there are times when projects fall short of the mark.  Project failure can be devastating, but good PM ensures that failures become lessons.  Learning from failure & identifying the exact point of failure can reduce chances of you making the same mistakes again. 9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 16
  • 17. Why we need to study PM… Effective project management helps individuals, groups, and public and private organizations to:  Meet business objectives;  Satisfy stakeholder expectations;  Be more predictable;  Increase chances of success;  Deliver the right products at the right time;  Resolve problems and issues;  Respond to risks in a timely manner;  Optimize the use of organizational resources;  Identify, recover, or terminate failing projects;  Manage constraints (scope, quality, schedule, costs, resources);  Balance the influence of constraints on the project and  Manage change in a better manner 9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 17
  • 18. Why we need to study PM… Poorly managed projects or the absence of project management may result in: Missed deadlines, Cost overruns, Poor quality, Rework, Uncontrolled expansion of the project, Loss of reputation for the organization, Unsatisfied stakeholders, and Failure in achieving the objectives for which the project was undertaken 9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 18
  • 19. 1.2 History of project management When do you think history of project management started on? What are the major achievement of humankind? What are the drivers for the evolution of modern project management 9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 19
  • 20. History of PM… Champions of project management suggest that humankind has achieved a lot through out the human history It is possible to say that the concept of project management has been around since the beginning of history. It has enabled leaders to plan bold and massive projects and manage funding, materials and labor within a designated time frame. 9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 20
  • 21. History of PM… The earliest achievements including;  Egyptian Pyramids,  the Great Wall of China  the Axumite Civilization  Lalibela rock church , and the like are great work of human But how they were managed remains obscure (doubtful) In fact, project management then and now are totally different in several respects.  Captives (prisoners) and conscripts must have been involved in the past.  As a result, early achievements were results of involvement of vast armies of people. 9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 21
  • 22. History of PM… Examples of recent project outcomes include:  Olympic games,  Panama Canal,  Development of commercial jet airplanes,  Polio vaccine,  Human beings landing on the moon,  Commercial software applications,  Portable devices to use global positioning system (GPS), and  Placement of International Space Station into Earth’s orbit The outcomes of these projects were the result of leaders and managers applying project management practices, principles, processes, tools, and techniques to their work 9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 22
  • 23. History of PM…  In late 19th C, in United States, large-scale government projects were the motivation for making important decisions It became the basis for project management methodology such as the transcontinental railroad, which began construction in the 1860s.  Suddenly, business leaders found themselves faced with the frightening task of  organizing the manual labor of thousands of workers and  the processing and assembly of unprecedented quantities of raw material. 9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 23
  • 24. History of PM…  Near the turn of the century, Frederick Taylor began his detailed studies of work.  He applied scientific reasoning to work by showing that labor can be analyzed and improved by focusing on its elementary parts  He introduced the concept of working more efficiently, rather than working harder and longer.  Taylor's associate, Henry Gantt , studied in great detail the order of operations in work and is most famous for developing the Gantt Chart in the 1910s. 9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 24
  • 25. History of PM…  By the mid 20th C, projects were managed on an ad hoc basis using mostly Gantt Charts, and informal techniques and tools.  During that time, Manhattan project was initiated and its complexity was only possible because of project management methods. The Manhattan project was the codename given to the Allied effort to develop first nuclear weapons during World War II. It involved over thirty different project sites in the US and Canada, and thousands of personnel from US, Canada and UK. 9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 25
  • 26. History of PM… Born out of a small research program that began in 1939, the Manhattan Project would eventually  employ 130,000 people  cost a total of nearly 2 billion USD and  result in the creation of multiple production and research sites operated in secret.  succeeded in developing and detonating three nuclear weapons in 1945. The 1950s marked the beginning of the modern PM era. Two mathematical project-scheduling models developed: 1. The Program Evaluation and Review Technique (PERT) 2. The Critical Path Method (CPM) 9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 26
  • 27. History of PM… The above stated two mathematical techniques quickly spread into many private enterprises. Project management in its present form began to take root a few decades ago. In the early 1960s, industrial and business organizations began to understand the benefits of organizing work around projects.  They understood the critical need to communicate and integrate work across multiple departments and professions. Now a day it is impossible to think the current complex businesses and projects without the application of PM. 9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 27
  • 28. History of PM… Snyder and Kline (1987) noted that the modern PM era started in 1958 with the development of CPM/PERT. Morris (1987) argues that  the origin of PM comes from the chemical industry just prior to World War II.  project management is clearly defined as a separate discipline in the Atlas missile program, especially in the Polaris project. Kerzner (1998) observes that project management is an “outgrowth of systems management.” 9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 28
  • 29. History of PM… Four periods have been identified to better capture the history of modern project management: 1) prior to 1958, 2) 1958 – 1979, 3) 1980 – 1994, and 4) 1995 to present 9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 29
  • 30. History of PM… We can have five drivers for the evolution of modern project management: 1. Development of management thought 2. Creation of special tools and techniques 3. Development of ICT 4. Socio-economic and political influences 5. Expanding scope of project management 9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 30
  • 31. 1. Development of management thought No attention paid before 20th century Lowly profession compared to bankers & lawyers Treatment of management as an art or science confused people Belief that managers are born and not made Early management thinkers have shaped the way we do business today The approaches of Thomas Owen, Frederick Taylor, Henry Gantt and Henri Fayol, among others, have influenced our understanding of project management 9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 31
  • 32. Development of management… Growing competition and complexity of managing large business organizations gave a push to the development of management concepts and principles. Competition gave rise to factors like Technology innovations Obsolescence (oldness) Increase in capital investment Freedom at national and international markets 9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 32
  • 33. Development of management… Complexity came because of: Increase in the size of business organizations High degree of division of labor and specialization Pressure of various conflicting groups Socially oriented business controls by government All these have demanded the efficiency in management process which cannot come by trial and error methods but by developing and applying sound management concepts and principles 9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 33
  • 34. 2. Creation of Special Tools and Techniques The activities of US navy gave rise to the emergence of project management in the late 1950s and 60s. This was the era of operations research and the development of new tools and techniques including:  GANTT CHART  program evaluation and review technique (PERT) and  critical path method (CPM) Even today project management journals focus on how to schedule project activities & resources to:  reduce uncertainty and  increase productivity, reliability and quality 9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 34
  • 35. Tools and Techniques … GANTT CHART It is a graphical representation of a Project that shows each task as a horizontal bar whose lengths proportional to its time for completion. It do not show how tasks must be ordered (precedence) but simply show when a task should begin and should end It is often more useful to for depicting relatively simple projects or sub projects of a large project, the activities of a single worker, or for monitoring the progress of activities compared to scheduled completion dates.. 9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 35
  • 36. Tools and Techniques … Program Evaluation and Review Technique (PERT) It was developed by Booz-Allen & Hamilton as part of the United States Navy's Polaris missile submarine program. PERT is basically a method for analyzing the tasks involved for completing a given project, especially the: time needed to complete each task, dependencies among tasks, and minimum time needed to complete the total project 9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 36
  • 37. Tools and Techniques … Critical Path Method It developed for plant maintenance projects It determines the data ranges in which activates can occurs by calculating the earliest and latest dates activates can start and then the earliest and latest dates activates can finish, based on the network diagram and the activity duration. Its diagram based on following project elements:  List of all activities required for project  Length of time for each activity  Dependencies between the activities 9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 37
  • 38. 3. Development of ICT  The ICT revolution in late 1960s and 70s gave project management a new motivation  The computer gave operational researchers massive new possibilities to improve project management by computational power  Over the last 20 years, great achievements have been made in ICT  ICT has brought a wide range of operational tools and techniques  Today, ICT shortens distance and enables geographically diverse teams to work together 9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 38
  • 39. 4. Socioeconomic and political influences  Project management has been driven by political and socio-economic forces  The Manhattan (first atomic bomb project) required new techniques, as it was a mega project  Putting people on the moon, creating new weapons and defense systems are huge projects that demand special techniques  Responding to human-made and natural disasters put pressure on organizations and governments to deal with uncertainty in projects better and easier.  All these leads for the foundation of scientific PM 9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 39
  • 40. 5. Expanding Scope of Project Management Now a day the scope of project management has been expanding than ever A well-defined project scope management helps to avoid:  Constantly changing requirements  Pivoting the project direction when you are already mid-way  Realizing that the final outcome isn’t what was expected  Going over the discussed budget  Falling behind the project deadlines All these required a more modernized and advanced tools of project management 9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 40
  • 41. 1.3 Strategic planning, program and project 9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 41  How do you define Plan, Program and Project?  What is the similarity and difference between program and project?  Have you ever participated in preparation of program or project in your previous experience?
  • 42. Policy … Projects count… National Plan  Set overall growth and development target for a country  Example: Growth and Transformation Plan (GTP 1 & 2) Policy It is a concept (usually in a written document), whereby the government or a political party will determine decisions, actions and other matters that will prove advantages to society in general. Sector policy  Agriculture policy: technology-based intensification of smallholder agriculture, . Health policy: assurance of accessibility of health care for all segments of the population 9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 42
  • 43. Policy … Projects count… Strategy Approaches that should be undertaken to achieve the stated policies. eg. ADLI Programs  They are planned-continuous or ongoing development or investment activities that are not generally time bound.  aim at improving the public welfare  assumes decision making at national/organizational level.  may consist of a number of projects Project  are means through which development targets (programs) are converted into tangible benefits for the project beneficiaries.  gives life to and is the visual and concrete representation of plan, policy and strategy.
  • 44. Policy … Projects count… Examples Programs  Rural development program,  General Education quality Improvement program,  Health extension program,  Public service reform program… Projects  Water Supply projects,  Teacher Development projects,  Ethiopia Health Centre Renovation and Coordination project…
  • 45. Project vs. program count…  Intellectual/rational process : A mental process involving imagination, foresight and sound adjustment but not guesswork.  Continuous/perpetual process : An on- going/dynamic exercise as old assumptions change, old plans are revised or new ones are prepared. Project Program Differences Has specific real/geographic unit Is specific in objectives/ purpose Has specific targets groups Has clearly determined and allocated fund Has specific life time •May not have specific area •Has got general objectives •May not have specific target groups •May not have clear and detailed financial allocation •May not have specific time of ending (open ended) Similarities Has purpose/objectives Require input (financial, manpower, material) Generate output (goods and/or services) Operate over space and time
  • 46. Project vs. program count… If there is no organic link between plans, policies, and projects, then the effectiveness and efficiency of investment decisions could be compromised. Promoting projects without having development policies and plans will lead to scattered/dispersed and unorganized development endeavors. Policies and plans without projects mean non-implementation, paper tiger decision making Organic link between plan, program and project is given as: National plan ⇒ Policy ⇒ Sectoral policy ⇒ Programs ⇒ Projects ⇒ Outcomes / impacts /changes
  • 47. Project vs. program count… Further more project needs to be SMART S – Specific A project needs to be specific in its objective. A project is designed to meet a specific objective as opposed to a program, which is broad. A project has also specific and clear set of activities . Projects have well defined sequence of investment and production activities and a specific group of benefits.  A project is also designed to benefit a specific group of people
  • 48. Project vs. program count… M- Measurable Projects are designed in such a way that investment and production activities, costs and benefits expected should be identified and as much as possible be valued (expressed in monetary terms) in financial, economic and if possible social terms. Though it is sometimes difficult to value especially secondary costs and benefits of a project, attempt should be made to measure them. Measurable costs and benefits must lend themselves for valuation and general projects are thought to be measurable. 9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 48
  • 49. Project vs. program count… A – Area bounded As projects have specific and identifiable group of beneficiaries, so also have to have boundaries. In designing a project, its area of operation must clearly be identified and delineated. Though some secondary costs and benefits may go beyond the boundary, its major area of operation must be identified. Hence projects are said to be area bounded 9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 49
  • 50. Project vs. program count… R – Real Planning of a project and its analysis must be made based on real information. Planner must make sure whether the project fits with real social, economic, political, technical, etc situations within the budget limit. This requires detailed analysis of different aspects of a project 9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 50
  • 51. Project vs. program count… T – Time bounded A project has a clear starting and ending point. The overall life of the project must be determined. Moreover, investment and production activities have their own time sequence. Every cost and benefit streams must be identified, quantified & valued and be presented year-by-year 9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 51
  • 52. Individual Assignment (20 pts.) 1. Write about four periods of modern Project Management History at list by incorporating  Project Management Situation,  Actual Representative Projects and  Main Actors on the time. 2. Write the management thought of the following scholars  Henry Towne (work and payment)  Frederick Winslow Taylor (standard job)  Henri Fayol(principles and elements scientific management )  Mary Parker Follett (Humanizing)  McGregor: (Theory X, Theory Y) 9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 52
  • 53. 2. Basic concepts of project How do you understand the following project concepts Project characteristics Project type Project parameters Project scope Project cycle 9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 53
  • 54. 2.1 Definition of Project  According United Nation Industrial Development Organization (UNIDO) Project is a proposal for investment to create, expand and/or develop certain facilities in order to increase the production of goods and/ or services in a community during a certain period of time”.  According to the project management institute (PMI) a project is a temporary endeavor undertaken to:  create a unique product, service, or a result;  drive change;  enable business value creation;  initiation context 9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 54
  • 55. Definition of Project… Temporary endeavor  It indicates that a project has a definite beginning and end.  It does not necessarily mean a project has a short duration.  The end of the project is reached when:  The project’s objectives have been achieved;  The objectives will not or cannot be met;  Funding is exhausted or no longer available for allocation;  The need for the project no longer exists;  The human or physical resources are no longer available; or  The project is terminated for legal cause or convenience.  Projects are temporary, but their deliverables may exist beyond the end of the project. 9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 55
  • 56. Definition of Project… Create a unique product , service, or a result  A unique product that can be either a component of another item, an enhancement or correction to an item, or a new end item in itself (e.g., the correction of a defect in an end item);  A unique service or a capability to perform a service (e.g., a business function that supports production or distribution);  A unique result, such as an outcome or document (e.g., a research project that develops knowledge that can be used to determine whether a trend exists or a new process will benefit society); and  A unique combination of one or more products, services, or results (e.g., a software application, its associated documentation, and help desk services) 9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 56
  • 57. Definition of Project… Drive change in organizations  From a business perspective, a project is aimed at moving an organization from one state (current state) to another state (future state) in order to achieve a specific objective.  For some projects, this may involve creating a transition state where multiple steps are made along a continuum to achieve the future state.  The successful completion of a project results in the organization moving to the future state and achieving the specific objective 9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 57
  • 58. Definition of Project… 9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 58
  • 59. Definition of Project…  Examples of tangible elements include:  Monetary assets,  Stockholder equity,  Utility,  Fixtures,  Tools, and  Market share.  Examples of intangible elements include:  Goodwill,  Brand recognition,  Public benefit,  Trademarks,  Strategic alignment, and un Reputation 9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 59
  • 60. Definition of Project… Project Initiation Context. Organizational leaders initiate projects in response to factors acting upon their organizations. Four fundamental categories for project initiation  Meet regulatory, legal, or social requirements;  Satisfy stakeholder requests or needs;  Implement or change business or technological strategies; and  Create, improve, or fix products, processes, or services. 9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 60
  • 61. 2.2 Basic Characteristics of a project 1. A project is an exception 2. Unique Activities 3. Specific deadlines and goals 4. The desired result is identified 5. Connected Activities/Interdependencies 6. Complex Activities 7. Sequence activities 8. Progressive Elaboration 9. Within Budget 10. According to Specification 11. High Degree of Activity 12. Conflict 13. Life Cycle 14. High level of uncertainty & risk 15. Teamwork/multi-skill 9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 61
  • 62. Basic characteristics… 1. A project is an exception.  Unlike routines, projects involve investigation, completion, arrangement, and reporting of findings in some way that provides value.  The answers to the basic project questions cannot be found in the routines of your department, which is what makes it exceptional. 2. Unique Activities  A project has never happened before, and it will never happen again under the same conditions (time and space, outputs or deliverables etc).  Something is always different each time the activities of a project are repeated. 9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 62
  • 63. Basic characteristics … 3. Specific deadlines and goals Projects have identifiable starting and stopping points with well known goals and activities. However, projects may often have intended and unintended social, economic and environmental impacts that far outlast the projects themselves. 4. The desired result is identified  A project is well defined only when a specific result is known.  By comparison, departmental routines involve functions that may be called ‘‘process maintenance.’’  That means that rather than producing a specific outcome, a series of recurring routines are aimed at ensuring the flow of outcomes (e.g., reports) from one period to another 9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 63
  • 64. Basic characteristics … 5. Connected Activities/Interdependencies. Connectedness implies that there is a sequence, parasail, logical or technical relationship b/n pairs of activities. They are considered connected because the output from one activity is the input to another. 6. Complex Activities The activities that make up the project are not simple and repetitive acts like painting the house, washing the car, or loading the delivery truck. They are complex, example, designing an intuitive user interface to an application system. 9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 64
  • 65. Basic characteristics … 7. Sequence of Activities  A project comprises a number of activities that must be completed in some specified order, or sequence.  The sequence of the activities is based on technical requirements, not on management prerogatives.  To determine the sequence, it is helpful to think in terms of inputs and outputs 8. Progressive elaboration  Project scope will be broadly described early in the project and becomes more explicit and detailed as the project team develops better and more complete understanding of the objectives and deliverables.  We learn more and more about the project as it goes on 9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 65
  • 66. Basic characteristics … 9. Within Budget  Projects also have resource limits, such as amount of people, money, or machines that are dedicated to the project.  While these resources can be adjusted up or down by management, they are considered fixed resources to the project manager. 10. According to Specification  customer, or recipient of the project’s deliverables, expects a certain level of functionality and quality from the project.  These expectations can be  self-imposed; specification of the project completion date, or  customer-specified; producing sales report on a weekly basis. 9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 66
  • 67. Basic characteristics … 11. High Degree of Activity Especially during the execution stage, a project involves several hectic (excited) activities. 12. Conflict  A project may be impacted by competing activities with respect to resource needs or management focus. 13. Life Cycle A project has different phases and is completed in stages 9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 67
  • 68. Basic characteristics … 14. High level of uncertainty & risk As a result of its uniqueness, dependency on other agencies and its relatively long-term nature; a project is faced with a lot of uncertainty and risk 15.Teamwork/multi-skill  Projects require a team of people with different skills to get the job done 9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 68
  • 69. 2.3 Types of Project  Projects can be classified in different way based on a. Owner  Public  Private B. Scale  Small,  Medium  Large C. Sector  Agricultural  Industrial  Service 9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 69
  • 70. Types of Project… d. Task (objective) (1) Manufacturing Projects:  Where the final result is a vehicle, ship, aircraft, a piece of machinery etc. (2) Construction Projects:  Resulting in the erection of buildings, bridges, roads, tunnels etc.  Mining and petro-chemical projects can be included in this group. (3) Management Projects:  Which include the organization or reorganization of work without necessarily producing a tangible result. (4) Research Projects:  In which the objectives may be difficult to establish, and where the results are unpredictable. 9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 70
  • 71. Types of Project… e. New resources commitment 1. new investment  designed to establish a new productive process independent of previous lines of production. 2. expansion projects  involve repeating or extending an existing economic activity with the same output, technology & organization. 3. updating projects  involve replacing or changing some elements in an existing activity without major change of output. 9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 71
  • 72. Examples of Project  Constructing a road, building or facility  The expansion of primary education in a given region/locality or reforming school curriculum,  Organizing an event, like a wedding or a party  Case management, like social work or legal issue  Working on solving organizational problems like inefficiency  Renovating an old house  Restructuring a system  Developing a new software application  Creating a new radio/ media advertisement  Conducting marketing research,  Running a campaigning for political office  Building a water system for a community etc. 9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 72
  • 73. Difference between projects One project could be different from another in : 1. Size and number of separate activities 2. Number of various skills, departments and people involved 3. Amount of time involved 4. Number of different activities involved 5. Amount of money involved 6. Impact on the organization and customers 7. Control procedures 8. Communication procedures 9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 73
  • 74. 2.4 Project parameters  Project parameters define the scope, budget, schedule, and quality of the project.  There is an interrelationship among these parameters. If you choose to increase the scope, you must also increase the schedule or budget. If you reduce the budget, you must decrease the schedule, reduce the quality, and/or reduce the scope of the project. 9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 74
  • 75. Parameters… Understanding the relative flexibility of the project parameters helps you make decisions in line with the business requirements. For example, if budget is fixed, it is least flexible. Therefore, you will have to modify your schedule, scope, or quality if things change later on. It is vital, from start of your project planning, to try to define the way in which parameters will affect your project. 9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 75
  • 76. Parameters… When it comes to PM, the following six factors constitute the most important parameters for a given project.  Scope  Quality  Cost/ budget  Time  Resources  Quantity  The set of those parameters form a system that must remain in balance for the project to be in balance. 9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 76
  • 77. Parameters… 1. Scope Is a statement that defines the boundaries of project. It tells not only what will be done but also what will not be done. It can be termed as  functional specification (information systems industry),  statement of works (engineering profession),  document of understanding,  a scoping statement,  a project initiation document, and  a project request form. 9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 77
  • 78. Parameters…  Whatever its name, this document is the foundation for all project work to follow.  It is critical that scope be correct .  Beginning a project on the right foot is important, and so is staying on the right foot.  It is no secret that scope can change.  You do not know how or when, but it will change.  Detecting that change and deciding how to accommodate it in the project plan are major challenges for the project manager 9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 78
  • 79. Parameters… 2. Quality Two types of quality are part of every project: a. Product quality.  This refers to the quality of the deliverable from the project.  The traditional tools of quality control are used to ensure product quality. b. Process quality,  Is quality of the project management process itself.  The focus is on how well the project management process works and how can it be improved . 9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 79
  • 80. Parameters…  Continuous quality improvement and process quality management are tools used to measure process quality.  A sound quality management program with processes in place that monitor the work in a project is a good investment.  Quality management is one area that should not be compromised.  The payoff is a higher probability of successfully completing the project and satisfying the customer 9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 80
  • 81. Parameters…  Here you need to be able to answer "Is this good enough?"  Furthermore quality factors apply to  inputs (the raw materials for the project),  outputs (what the project produces),  outcomes (the results of the project), and  processes (the means used to achieve the outputs).  Example: quality factors for employment training project  training materials (the inputs),  delivery of the training (the process),  number of young people successfully ‘passing’ the training (the outputs), and  kind of work the young people achieve at the end of the project (the outcomes). 9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 81
  • 82. Parameters… 3. Cost /budget  You may have to draw up the project budget (cost plan).  You have to be certainly responsible for ensuring that the budget is not overspent and that income is raised according to the plan.  You may need to ensure that the phasing of income and expenditure is achieved successfully, so that you have enough money for the project’s needs in plenty of time.  How much money do you have, as Project Manager, in moving the project spend from one cost heading to another?  It is the basic question you need to answer for each activity in project implementation 9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 82
  • 83. Parameters…  It is important to be clear:  How much income you must raise to fund the project, if any?  How much you can spend and on what?  How much income the project is intended to generate?  Must you raise the income before you start to spend or not?  How much discretion do you have about changing the details of the budget – for example, moving money from ‘post’ to ‘stationery’ if that’s what you think is needed?  In large organizations, especially in the public sector, it is common for Project Managers to be very vague about the budget for their project. 9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 83
  • 84. Parameters… 4. Time  The customer specifies a time frame or deadline date within which the project must be completed.  To a certain extent, cost and time are inversely related to one another.  The time a project takes to be completed can be reduced, but costs increase as a result.  Time is an interesting resource.  It can’t be inventoried. It is consumed whether you use it or not 9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 84
  • 85. Parameters… The objective for the project manager is to use the future time allotted to the project in the most effective and productive ways possible . Future time (time that has not yet occurred) can be a resource to be traded within a project or across projects. Once a project has begun, the prime resource available to the project manager to keep the project on schedule or get it back on schedule is time. A good project manager realizes this and protects the future time resource jealously 9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 85
  • 86. Parameters… 5. Resources  They are assets, such as people, equipment, physical facilities, or inventory, that have limited availabilities, can be scheduled, or be leased from an outside party.  Some are fixed; others are variable only in the long term.  In any case, they are central to the scheduling of project activities and the orderly completion of the project 9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 86
  • 87. Parameters… 6. Quantity  Some projects have no quantity parameters at all; others are very focused on quantity.  For example, if the project aim is to design a leaflet (pamphlet) informing people about services, then the quantity of leaflets produced is not one of the most important parameters.  The main factors to be monitored will be  the quality of the information given,  its appropriateness to the audience,  the cost involved and the print deadline if any.  In employment training for young, quantity is a key factor.  Funders and other stakeholders will have set clear standards for the number of young people receiving the training and the numbers successfully placed in work. 9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 87
  • 88. 2.5 Project Scope Creep  It refers to unauthorized changes to the scope of a project, that occur after the project scope has been baseline and/or approved.  Its typical manifestation is the addition of new product features or functionalities without considering the impact to the other project constraints such as time, cost, resources, risk, quality, etc.  Many of us get into a trap, saying that change is very small, and routing them through change control procedures may introduce more delays in the delivery.  But you never know, whether the change is small or big, unless you assess the impact to the project constraints.  That is why, it is always recommended to route the change through change control procedures.
  • 89. Project Scope Creep Causes of Project scope creep 1. Gaps in the Requirements  Customers always do not know what they want.  Sometimes certain requirements might have missed out.  stakeholders may not be able to provide the requirement description properly. 2. You have not considered all the stakeholders –  During requirements collection phase, you have missed or not involved some of the stakeholders, because of which some of the requirements are not considered. 3. You are doing this type of project for the first time –  you do not know much on what complexities are hidden in project,  You do not know what to ask and whom to ask.
  • 90. Project Scope Creep 4. Do not have a sophisticated change control system in place  Your project did not establish a proper change control system and approval process. 5. Customer Expectations to do it for FREE or less cost  Sometimes, customers think that this change does not impact much on the project and put more pressure on you to deliver it without any additional cost. 6. Do not have proper (formal) communication channel established with customer.
  • 91. Project Scope Creep 7. Inexperienced Project manager  Project manager is not being able to identify the scope creep situation, until it occurred. 8. Requirements or scope are being subjective instead of objective  Requirements agreed with no measurement criteria to confirm, whether requirements are fulfilled or not. 9. Gold Plating  Project team or the project manager add the extra functionality in the project which is not part of the scope of the project to please the customer or the senior management
  • 92. Project Scope Creep Scope Creep Example  Let us consider an example of developing a software application for a customer in a phased manner.  First phase you have already delivered to the customer successfully.  While the project team is working on the second phase deliverables, customer has come up with a small change, which initially seem like not going to take more than a couple of hours to fulfill the same.  So, you accepted to do it without looking at the impact on the project constraints, as it seems to be a small change.
  • 93. Project Scope Creep  As you progress more on the change implementation, you identified that, it is causing an impact to one or more of existing functionalities in your project.  And these functions must be tested for regression, which eventually takes more time, effort, and cost for the project.  This is exactly what Scope creep is. Effects of Scope Creep  Schedule overruns  Cost overruns  Quality issues  Increase project risks  Resource issues  Other problems triggered by the above issues
  • 94. Project Scope Creep How to Manage Scope Creep Effectively?  Requirements must be gathered from all the required stakeholder timely and objectively  Concrete Scope agreements and understand it by all stakeholders in your organization and the customer side organization  Establish a Concrete Change Management procedure and make sure you and the complete project team follows the same, with no exceptions.  Establish a formal communication channel with the customer side stakeholders, to deal with changes in an accepted and agreed way.  Also make sure all the stakeholders are following the agreed communication plan.  Make sure team members coordinate in terms of project scope and understanding of requirements.
  • 95. 2.4 Project cycle There is general agreement that most projects pass through a number of distinct phases. Project life cycle defines the stages/phases that link the beginning of a project to its end. Project managers of organizations can divide projects into stages to organize better management control with relevant connections to the ongoing functions of the performing organization. The process of planning & managing projects can be drawn as a cycle and each phase leads to next phase. 9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 95
  • 96. Project cycle… The way in which projects are planned and carried out follows a sequence known as the project cycle. The cycle starts with the identification of an idea and develops that idea into a working plan that can be implemented and evaluated. Ideas are identified in the context of an agreed strategy. It provides a structure to ensure that stakeholders are consulted and relevant information is available, so that informed decisions can be made at key stages in the life of a project 9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 96
  • 97. Project cycle According to PMBOK, project life-cycles generally define: What technical work to do in each phase When the deliverables are to be granted in each phase & how each deliverable is reviewed, verified and validated Who is involved in each phase How to control and approve each phase There is no single best way of categorizing an ideal project life cycle These phases can be divided into several equally valid ways, depending on the executing agency or parties. 9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 97
  • 98. Project cycle I. Capital expenditure (project) decision It is a complex decision process, which divided into: 1. Identification 2. Pre-feasibility Study 3. Feasibility (technical, financial, economic) 4. Selection and project design 5. Implementation 6. Ex-post evaluation 9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 98
  • 99. Project cycle… II. Project phase divided it into four broad phases: 1. Identification/Opportunity study/ 2. Project preparation, which include: • Pre-feasibility Study • Feasibility (technical, financial, economic)` • Support study • Appraisal/evaluation/ 3. Implementation/investment 4. Ex-post evaluation 9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 99
  • 100. Project cycle… III. The other alternative phase (UNIDO, 1991): 1. Pre-investment phase; a. Identification/opportunity study/ b. Pre-feasibility study/ pre-selection/ c. Feasibility study d. Support study; e. Appraisal study. 2. Investment phase; a. Negotiating and contracting; b. Engineering design; c. Construction and Procurement d. production and fixing e. Pre production marketing; f. Manning and training. 3. Operation phase. a. Commissioning and hand over and starting of operation b. Post project evaluation/appraisal/ c. Replacement/rehabilitation d. Expansion/innovation 9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 100
  • 101. Project Cycle Management (PCM) It was introduced by the European Commission in the early 1990’s to improve the quality of project design and management and thereby to improve aid effectiveness. It developed out of an analysis of the effectiveness of development aid during the late 1980’s. Evaluation findings from research works indicated that a significant proportion of development projects had performed poorly. 9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 101
  • 102. PCM… The researches identified a number of causes:  Poor project planning and preparation  Many projects not relevant to beneficiaries  Risks were insufficiently taken into account  Factors affecting the longer-term sustainability of project benefits were ignored  Lessons from past experience were rarely incorporated into new policy and practice PCM obliges practitioners in project design to focus on the real needs of the beneficiaries by  requiring a detailed assessment of the existing situation and  applying the logical framework method 9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 102
  • 103. PCM… The strength of PCM is that project documents are structured according to a standardized format dealing with all relevant issues, including the assumptions on which the project is based. At each stage in the project cycle, these issues are examined and revised where necessary and carried forward to the next stage. This system makes the project concept and context in which it operates clear and visible, and enables therefore better monitoring and evaluation. 9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 103
  • 104. PCM… PCM Principles in project cycle stages 1. Structured & informed decision-making  Adherence to the phases of the project cycle to ensure a structured and well-informed decision-making process. 2. Client orientation  It is involvement of stakeholders in decision-making  Client orientation through the use of participatory planning workshops at key phases of the project cycle, and the formulation of the Project Purpose in terms of sustainable benefits to be delivered to beneficiaries 9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 104
  • 105. PCM… 3. Sustainability Incorporation of aspects of sustainability into project design to ensure sustainable benefits. 4. Logframe planning It is to ensure a consistent analytical approach to project design and management. 5. Integrated approach It links the objectives of each project into national and sectorial objectives within the partner country 9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 105
  • 106. 3. Project Management and Affecting Factors What do you mean by project management? What are the main activities that a given manager expected to perform?  What are the expertise that a good manager should acquire ? 9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 106
  • 107. What is Project Management? Project management is the process of leading the work of a team to achieve goals and meet success criteria at a specified time. is the application of knowledge, skills, tools, and techniques to project activities to meet the project requirements. is both people and technical oriented.
  • 108. Project Management… Project management involves  understanding the cause-effect relationships and  interactions among socio-technical dimensions of projects. Improved competency in these dimensions will greatly enhance your competitiveness as a project manager. The field of project management is growing in importance at an exponential rate. It is nearly impossible to imagine a future management career that does not include management of projects.
  • 109. Project Management… Project management is the process of:  defining a project, developing a plan, executing the plan, monitoring the progress against the plan, overcoming obstacles, managing risks, and taking corrective actions.  managing the competing demands and trade-offs between the desired results of the project (scope, performance, quality) and the natural constraints of the project (time and cost ).  leading a team that has never worked together before to accomplish something that has never been done before in a given amount of time with a limited amount of money. 9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 109
  • 110. Project Management… Challenge of project management To achieve the project goal within the given constraints. To optimize the allocation of necessary inputs to meet pre-defined objectives. Types of project management 1. traditional, 2.waterfall, 3. agile, and 4.lean.
  • 111. Project Management… 1. Traditional project management  It is an established methodology where projects are run in a sequential cycle.  It follows a fixed sequence:  initiation,  planning,  execution,  monitoring, and  closure.  This approach puts special emphasis on linear processes, documentation, upfront planning, and prioritization.
  • 112. Project Management… 2. Waterfall Project Management This is similar to traditional project management but includes that each task needs to be completed before the next one starts. Steps are linear and progress flows in one direction—like a waterfall. Because of this, attention to task sequences and timelines are very important in this type of project management. Often, the size of the team working on the project will grow as smaller tasks are completed and larger tasks begin.
  • 113. Project Management… 3. Agile Project Management  It is an iterative process focused on the continuous monitoring and improvement of deliverables.  At its core, high-quality deliverables are a result of  providing customer value,  team interactions, and  adapting current business circumstances.  It does not follow a sequential stage-by-stage approach.  phases of the project are completed in parallel to each other by various team members in an organization.  This approach can find and rectify (correct) errors without having to restart the entire procedure.
  • 114. Project Management… 4. Lean Project Management  This methodology is all about avoiding waste, both of time and of resources.  The principles of this methodology were gleaned (collected) from Japanese manufacturing practices.  The main idea behind them is to create more value for customers with fewer resources.
  • 115. Project Management… Which type of project management have you implemented (implementing) in your organization? Which one is more relevant for our country? 9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 115
  • 116. Project Management… In general, project management refers to: Identifying requirements: the issues the project is attempting to address Establishing clear and achievable objectives Balancing the competing demands for quality, scope, resources, time and cost Adapting the specification, plans, and approach to the different concerns and expectations of the various stakeholders 9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 116
  • 117. 3.1 Area of expertise in PM What do you mean by area of expertise? What are the areas of expertise in PM? 9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 117
  • 118.  Integration Management  Scope Management  Time Management  Cost Management  Quality Management  Human Resource Management  Communications Management  Risk Management  Procurement Management 9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 118 Understanding the project environment  People  Market  Risk tolerance  Databases  company’s big picture Project management body of knowledge Area knowledge, standards & regulations  Operational  Technical  Management specializations  Industry groups Area of expertise in PM Interpersonal skills General management knowledge and skills  planning,  organizing,  staffing,  executing and  controlling  Transparency  Communication  Listening Skills  Appreciating Teamwork  Consistency and Reliability  Trustworthiness  The Drive to Set Goals  Making Decisions  Empathy and Sensitivity  Rewarding and Recognizing  A Willingness to Change  Conflict Resolution  Empowering and Motivating Your Team
  • 119. Area of expertise in PM… 1. Understanding the Project Environment A project should consider how it affects people and how people affect it.  Projects are undertaken in social, economic and environmental contexts.  They also have intended and unintended impacts on the contexts. Therefore, it is very essential to consider projects in their cultural, social, national, international, religious, political, physical environmental and economic contexts. 9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 119
  • 120. Area of expertise in PM… You can’t manage your project in a vacuum Think of enterprise environmental factors: People (the skills and organizational culture where you work) Market (the way your company is performing) performing) Risk tolerance (some companies are highly tolerant, others are not) Databases (where your company stores data) Your company’s big picture (programs, portfolios) 9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 120
  • 121. Area of expertise in PM… 2. Application Area Knowledge, Standards and Regulations These are divisions of projects that possess common significant components in such projects. These divisions or categories are not needed or available in all projects. 9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 121
  • 122. Area of expertise in PM… Areas of application are mostly defined in terms of: a. Operational departments and supporting disciplines (e.g. legal, production, inventory, marketing, logistics, and personnel) b. Technical elements (e.g. software development or engineering, or construction engineering) c. Management specializations (e.g. government contracting, community development and product development) d. Industry groups (e.g. automotive, chemicals, agriculture and financial services) 9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 122
  • 123. Area of expertise in PM… 3. General Management Knowledge and Skills Project management also holds the basic functions of general management: A. planning, B. organizing, C. staffing, D. executing and E. controlling. 9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 123
  • 124. Area of expertise in PM… A. Planning: It involves identifying alternative courses of action/activities and selecting the most efficient course of action to achieve the objective(s); it includes translating long-term organizational goals into short term objectives and targets; It involves  identifying the constraints and resource needs of the specific activities and  risks involved in the achievement of the project objective(s) 9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 124
  • 125. Area of expertise in PM… Example: Consider a cookery manager who manages the use of cooking resources to produce the right number and quality of meals. The manager will be judged by what is achieved.  The number and quality of the meals will determine the manager’s effectiveness (doing the right job or the job you are supposed to be doing)  The way the job was done will determine the efficiency (doing the job right or in the way that consumes fewest resources). Two managers can achieve the same number of meals of the right quality, using different levels of ingredients (resources) but the one who consumes fewer resources will be the more efficient. 9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 125
  • 126. Area of expertise in PM… list the main resources which are available to you in your work and the goods or services that you produce/provide write down the measures by which you are judged and comment on the adequacy of such measures Are you effective or efficient worker? 9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 126
  • 127. Area of expertise in PM… Ways of measuring the success of transforming 1. Measuring inputs: focuses on the efficiency of your use of resources. Did you use the fewest resources possible to achieve the outputs? 2. Measuring the output: focuses on the no. and quality of the product/services that are produced or supplied. How many meals were made, & how appetizing were they? 3. Measuring outcome: include the long term results of the transformation. Outcome measures have assumed new importance in value-based organizations where managers, users and donors are all interested in the long-term benefits of an activity 9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 127
  • 128. Area of expertise in PM… A project’s and hence a project manager’s achievement should be judged by what has been achieved and cost of the achievement. Getting job done remains the project manager’s primary purpose but that manager must keep an eye on the cost achieving objectives at any cost is a rule that is rarely applied Identifying resource needs in planning implies identifying the costs involved. 9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 128
  • 129. Area of expertise in PM… Monetary measurement of costs is being used as the common unit of account for both the inputs & outputs  Such accounting (attaching money value) helps us to answer the question of whether the production of the good or service is worthwhile.  However, it is subjective and provides only a framework for valuation  there are difficulties in attaching monetary values to some  inputs (when the inputs are less directly related to the level of output) and  outputs (services and humanitarian activities involving saving people’s lives which has no market price).  Even with the measurement issues, the project management should focus on the cost minimizing route 9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 129
  • 130. Area of expertise in PM…  How adequate do you think are money values as a measure of the value of the outputs?  What complementary measures can you suggest? 9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 130
  • 131. Area of expertise in PM… B. Organizing: It involves mobilizing the resources necessary for executing the planned activities: People financial inputs/materials other resources: space, equipment, facilities 9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 131
  • 132. Area of expertise in PM… Supporting disciplines in organizing included:  Financial management and accounting  Purchasing and procurement  Sales and marketing  Contracts and commercial law  Manufacturing and distribution  Logistics and supply chain  Strategic, tactical, and operational planning  Organizational structures & behavior, personnel administration, compensation, benefits, and career paths  Health and safety practices  Information technology 9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 132
  • 133. Area of expertise in PM… C. Staffing It include: job design, Job enrichment, staff recruitment, motivation 9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 133
  • 134. Area of expertise in PM… Job design: It may be caused by  introduction of new technology,  implementation of a new policy, move to a new building,  provision of new product or service. It may involve  Job rotation (allowing people to rotate between jobs a regular intervals)  Job enlargement: involves amalgamating several tasks into a single job 9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 134
  • 135. Area of expertise in PM… Job enrichment  It contains change aimed at increasing the level of responsibility of employees concerned to improve job motivation through enhancing responsibility, growth and learning, achievement and recognition. It Involves  Removing some controls  Increasing accountability  Giving a person a complete natural unit of work  Granting additional authority  Introducing new and more difficult tasks not previously handles  Assigning individuals specific or specialized tasks enabling them to become experts 9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 135
  • 136. Area of expertise in PM… Staff recruitment: involves  knowing one’s responsibility and authority in the recruitment process  Job analysis (analyzing the job systematically and in detail),  job description (describing the job and stating what the job holder is responsible for & required to do),  job specification (to specify the kind of person needed to fill the job described: precise about the skills, knowledge, qualifications, attributes required for the job)  identifying sources of recruits and advertising  handling applications,  selection procedures  making decisions 9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 136
  • 137. Area of expertise in PM… Motivation: It is important to understand what people really want and expect from their work It is in order to provide them with  work that is satisfying and rewarding  get the work done effectively and efficiently Our assumptions about people’s motivations affects the way we manage 9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 137
  • 138. Area of expertise in PM… Models of motivation 1. The rational economic model: suggests that people’s efforts can largely be controlled by offering or withholding financial rewards 2. The social model: asserts that people at work are primarily motivated by social needs such as the need for friendship, acceptance and sense of identity 3. The self-actualizing model: assumes that people are primarily motivated to seek a sense of meaning and accomplishment in their work; the mgmt.'s role should be towards enabling staff to make the best use of their abilities; the accomplishment of a meaningful and challenging task provides motivation 9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 138
  • 139. Area of expertise in PM… 4. The complex model: human need and motivations are complex and will vary according to a person’s experiences and expectations and the circumstances s/he faces. 5. Psychological contract: a way of trying to obtain a mutually satisfactory match between a person’s expectations of work and the organization’s expectation of the person; motivation is an outcome of the relationship between an individual & the employing organization 6. Expectancy theory: stresses the importance of the interrelationship b/n effort, performance, outcomes. 9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 139
  • 140. Area of expertise in PM… D. Executing: Here the project plan is put into motion and the work of the project is performed. It is important to maintain communicate as needed during implementation. Progress is continuous, appropriate adjustments are made and recorded as variances from the original plan. During project implementation,  people are carrying out the tasks, and  progress information is being reported through regular team meetings. 9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 140
  • 141. Area of expertise in PM… E. Controlling: It involves  checking project outcomes against initially set objectives,  identifying gaps & challenges, and  taking corrective measures in time We can have three ways of controlling  Reactive: analyzing and taking measures after the problem occurred.  proactive: on-going follow-up of processes and outcomes;  Participatory: when it involves stakeholders at various levels 9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 141
  • 142. Area of expertise in PM… 4. Interpersonal Skills 1. Transparency 2. Excellent Communication 3. Listening Skills 4. Appreciating and Encouraging Teamwork 5. Consistency and Reliability 6. Trustworthiness 7. The Drive to Set Goals 8. Making Decisions (and Accepting Responsibility) 9. Empathy and Sensitivity 10. Rewarding and Recognizing Employees 11. A Willingness to Change 12. Conflict Resolution (than Conflict Avoidance) 13. Empowering and Motivating Your Team 9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 142
  • 143. Area of expertise in PM… 1. Transparency  Employees expect you to be transparent with them.  They want to know what’s going on with their company and how they are doing.  Your employees are adults; you don’t need to protect them.  They want the truth, and good managers know how to be transparent, genuine, and direct.
  • 144. Area of expertise in PM… 2. Excellent Communication  Managers need to be excellent communicators in  maintaining regular contact with employees,  providing frequent feedback,  delivering rewards and  recognition for excellent performance.  Managers need to communicate with employees in comfortable way (face to face, email, chat, body language etc.).  Good managers should let employees know that they can freely discuss anything work-related on a regular tempo.
  • 145. Area of expertise in PM… 3. Listening Skills Employees want to know that their opinions and insights are being heard.  Listening is just as important as writing and speaking  Take the time to focus on your employees and what they are saying. When you get valuable feedback, make a conscious effort to take action based on it.  This will show your employees that when they speak up, they can make a difference in their working environment.
  • 146. Area of expertise in PM… 4. Appreciating and Encouraging Teamwork  Companies that encourage teamwork enjoy  improved efficiency,  work outcomes, and  individual development.  Managers should  support collaboration at every opportunity and  mitigate toxic behavior and unhealthy competition.  Some companies still operate on a “stacked ranking” system  the lowest-performing employees are shown the door  have been shown to be demotivating to employees  Create toxic relationships and  reduces the likelihood that employees will help one another
  • 147. Area of expertise in PM… 5. Consistency and Reliability  Employees need to know that their leader is stable, secure, and reliable.  They will come to you for clarification regarding organizational objectives, views on their work, and advice.  Employees should feel comfortable approaching you when they are struggling and need help.  Employees need to know that their manager is a level- headed person who won’t fly off the handle at a moment’s notice.  Otherwise, they won’t feel able to open up to you and their trust in management will weaken.
  • 148. Area of expertise in PM… 6. Trustworthiness  Employees need to  have faith (trust) in their leaders  assured management is telling them the truth and  know that their managers have their employees’ best interests at heart.  If employees feel like you don’t support them, it’ll  lead to a toxic work environment,  reduced collaboration, and  unhealthy competition in your workplace.  Your trustworthiness is built on  respecting the privacy of your employees and  offering honest advice based on what aligns best with your company’s goals.
  • 149. Area of expertise in PM… 7. The Drive to Set Goals  The new trend in goal setting is empowering employees to determine their own goals.  Doing so gives employees more ownership over their goals, which results in more work being done (and to a better standard).  Good managers need to be able to  to understand how to form motivational and realistic goals,  guide the process to align with organizational objectives.  These goals also need to be challenging to keep employees engaged and motivated.
  • 150. Area of expertise in PM… 8. Making Decisions (and Accepting Responsibility) New managers sometimes struggle to make decisions;  “analysis paralysis” (over-thinking a decision) or  “bike shedding” (focusing on insignificant details)  obsess over possible negative outcomes, no matter how unlikely,  rush into a decision despite lacking the right information. As a managers should  Learn to make decisions and  accept the consequences of your actions Managers need to make decisions  for the benefit of their team and company,  taking a structured, logical approach  keeping a cool head.
  • 151. Area of expertise in PM… 9. Empathy and Sensitivity  Emotional intelligence, which encompasses sensitivity & empathy, is a soft skill all modern managers need to have.  Managers need to pick up on signs that an employee is pushing themselves too far, which can cause burnout, anxiety, depression, and disengagement. Managers need to be able to put right provisions in work:  putting flexible working measures in place,  understanding about mental health breaks, and  mindful of anxiety during the goal setting process.  Those measures shows employees that they are not alone, and that the company is able and willing to help them.
  • 152. Area of expertise in PM… 10. Rewarding and Recognizing Employees A good manager understands the value and time of rewarding and recognizing employees. Be sure to reward and recognize your employees for their hard work to retain your team. Employees don’t just work for a paycheck (salary).  It takes much more than that to keep employees aligned with your company objectives and going that extra mile.  Employees need to know that their work and efforts are acknowledged and appreciated.
  • 153. Area of expertise in PM… 11. A Willingness to Change  The ways we operate in terms of technology, motivating employees, and reviewing performance are processes constantly subject to change.  From year to year, your business will look different and this is a good thing.  It means you’re staying relevant and competitive, which means you’ll be around for years to come. Good managers are adaptable and flexible.  They are ready for change and they plan for it, seeing disruption as an exciting challenge rather than a burden.
  • 154. Area of expertise in PM… 12. Conflict Resolution (than Conflict Avoidance)  Workplace conflict is an ongoing issue in organizations.  personality conflicts being a primary cause.  Good managers need  to be aware of conflict  pick up on signs of bad manners and mistreatment of it nd  to resolve it .  Leaving such issues to aggravate is very bad for employee morale and performance.  Confronting these situations head-on allows managers to arrive at a solution before it escalates and becomes unavoidable.
  • 155. Area of expertise in PM… 13. Empowering and Motivating Your Team  Every generation & individual is motivated by differ things  Good managers can relate to every member of their team, which will help them understand how to empower and motivate employees to get the best out of them and help them become the best they can be.  This can come in the form of sales SPIFFs, competitions, or simply recognizing employees for their hard work.  No matter what motivational technique you adopt, be sure to understand what motivates your team and give them incentives to work toward.
  • 156. Area of expertise in PM…  Which of the stated interpersonal skills do you have?  Which of the stated interpersonal skills do you lack?  How about your boss? 9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 156
  • 157. Area of expertise in PM… 5. Project Management Knowledge Areas It involves project a) Integration Management b) Scope Management c) Time Management d) Cost Management e) Quality Management f) Human Resource Management g) Communications Management h) Risk Management i) Procurement Management 9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 157
  • 158. Other project affecting factors 1. Environmental Enterprise Factors  Internal to the organization  External to the organization 2. Organization Process Asset  Processes, policies, and procedures; and  Organizational knowledge bases 3. Organizational System  Governance frameworks,  Management elements and,  Organizational structure types 9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 158
  • 159. 3.2 Environmental Enterprise Factors  EEFs refer to conditions, not under the control of project team  EEFs considered as inputs to many project management processes, specifically for most planning processes.  These factors may  enhance or constrain project management options.  have a positive or negative influence on the outcome.  internal and/or external to the organization 9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 159
  • 160. EEFs … Based on your experience, sate and explain the internal and external environmental factors which can affect your project/organizational performances? 9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 160
  • 161. EEFs … A. EEFS Internal to the organization The following EEFs are internal to the organization: 1. Organizational culture, structure, & governance.  Examples: vision, mission, values, beliefs, cultural norms, leadership style, hierarchy and authority relationships, organizational style, ethics, and code of conduct. 2. Geographic distribution of facilities & resources. Examples: factory locations, virtual teams, shared systems, and cloud computing. 9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 161
  • 162. EEFs … 3. Infrastructure. Examples: existing facilities, equipment, organizational telecommunications channels, information technology hardware, availability, and capacity. 4. Information technology software. Examples: scheduling software tools, configuration management systems, web interfaces to other online automated systems, and work authorization systems. 9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 162
  • 163. EEFs … 5. Resource availability. Examples: contracting and purchasing constraints, approved providers and subcontractors, and collaboration agreements. 6. Employee capability. Examples: existing human resources expertise, skills, competencies, and specialized knowledge 9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 163
  • 164. EEFs … B. EEFS External to the organization The following EEFs are external to the organization. 1. Marketplace conditions.  Examples: competitors, market share brand recognition, and trademarks. 2. Legal restrictions.  Examples: country or local laws and regulations related to security, data protection, business conduct, employment, and procurement. 9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 164
  • 165. EEFs … 3. Commercial databases. Examples: benchmarking results, standardized cost estimating data, industry risk study information, and risk databases. 4. Academic research. Examples: industry studies, publications, and benchmarking results. 5. Physical environmental elements. Examples: working conditions, weather, and constraints. 9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 165
  • 166. EEFs … 6. Social and cultural influences and issues.  Examples: political climate, codes of conduct, ethics, and perceptions. 7. Government or industry standards.  Examples: regulatory agency regulations and standards related to products, production, environment, quality, and workmanship. 8. Financial considerations.  Examples: currency exchange rates, interest rates, inflation rates, tariffs, and geographic location. 9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 166
  • 167. 3.3 Organization Process Asset Organizational process assets (OPAs)  are the plans, processes, policies, procedures, and knowledge bases specific to and used by the performing organization.  These assets influence the management of the project. OPAs include:  any artifact, practice, or knowledge from any or all of the performing organizations involved in the project that can be used to execute or govern the project.  the organization’s lessons learned from previous projects and historical information.  completed schedules, risk data, and earned value data.  OPAs are inputs to many project management processes. 9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 167
  • 168. OPAs… Since OPAs are internal to the organization, the project team members may be able to update and add to the organizational process assets as necessary throughout the project. They may be grouped into two categories: 1. Processes, policies, and procedures; and 2. Organizational knowledge bases 9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 168
  • 169. OPAs… 1. Processes, policies, and procedures; are not updated as part of the project work. are usually established by the project management office (PMO) or another function outside of the project. These can be updated only by following the appropriate organizational policies associated with updating processes, policies, or procedures. Some organizations encourage the team to tailor templates, life cycles, and checklists for the project. In these instances, the project management team should tailor those assets to meet the needs of the project 9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 169
  • 170. OPAs… 2. Organizational knowledge bases They are updated throughout the project with project information. For example the following are continually updated throughout the project,  information on financial performance,  lessons learned,  performance metrics and issues, and  Defects 9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 170
  • 171. OPAs…  In your organization/ work place is there any organization process asset?  If there how it helps to perform your day to day activities? 9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 171
  • 172. 3.4 Organizational System To operate effectively and efficiently, the project manager needs to understand where responsibility, accountability, and authority reside within the organization. This understanding will help the project manager effectively use his or her power, influence, competence, leadership, and political capabilities to successfully complete the project. Organizational system factors are: 1. Governance frameworks, 2. Management elements and, 3. Organizational structure types 9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 172
  • 173. Organizational System… 1. Governance Frameworks  PMI research reveals that governance refers to organizational or structural arrangements at all levels of an organization designed to determine and influence the behavior of the organization’s members.  This research suggests that the concept of governance is multidimensional and:  Includes consideration of people, roles, structures, and policies; and  Requires providing direction and oversight through data and feedback.  Governance is the framework within which authority is exercised in organizations. 9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 173
  • 174. Organizational System… Governance framework includes but is not limited to:  Rules,  Policies,  Procedures,  Norms,  Relationships,  Systems, and  Processes. Governance framework influences how:  Objectives of the organization are set and achieved,  Risk is monitored and assessed, and  Performance is optimized 9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 174
  • 175. Organizational System… Project governance refers to the framework, functions, and processes that guide project management activities in order to create a unique product, service, or result to meet organizational, strategic, and operational goals. There is no one governance framework that is effective in all organizations. A governance framework should be tailored to the organizational culture, types of projects, and the needs of the organization in order to be effective 9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 175
  • 176. Organizational System… 2. Management Elements are the components that comprise the key functions or principles of general management in the organization. The general management elements are allocated within the organization according to its governance framework and the organizational structure type selected. Key functions /principles of management include:  Division of work using specialized skills and availability to perform work;  Authority given to perform work;  Optimal use of resources; 9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 176
  • 177. Organizational System… Key functions /principles of management…  Responsibility to perform work appropriately assigned based on such attributes as skill and experience;  Discipline of action (e.g., respect for authority, people, and rules);  Unity of command (e.g., only one person gives orders for any action or activity to an individual);  Unity of direction (e.g., one plan and one head for a group of activities with the same objective);  Paid fairly for work performed;  General goals of organization take precedence over individual goals; 9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 177
  • 178. Organizational System… Key functions /principles of management…  Clear communication channels;  Right materials to the right person for the right job at the right time;  Fair and equal treatment of people in the workplace;  Clear security of work positions;  Safety of people in the workplace;  Open contribution to planning and execution by each person; and  Optimal morale 9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 178
  • 179. Organizational System… 3. Organizational Structure Types Determination of the appropriate organizational structure type is a result of the study of tradeoffs between two key variables. 1. organizational structure types existing for use and 2. how to optimize them for a given organization. There is not a one-size-fits-all structure for any given organization. The final structure for a given organization is unique due to the numerous variables to be considered. 9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 179
  • 180. Organizational System…  Factors to consider in selecting organizational structure: Degree of alignment with organizational objectives, Specialization capabilities, Span of control, efficiency, and effectiveness, Clear path for escalation of decisions, Clear line and scope of authority, Delegation capabilities, Accountability assignment, Responsibility assignment, Adaptability of design , Simplicity of design, 9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 180
  • 181. Organizational System…  Factors to consider…  Efficiency of performance,  Cost considerations,  Physical locations, and  Clear communication (e.g., policies, status of work & organization’s vision). Activity  For influences of Organizational Structures on Projects refer “Project Management Body of Knowledge and Agile Practice Guide” book on Page 47 9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 181
  • 182. 4. Project management process groups With the application of knowledge, skills, tools, and techniques in project activities to meet project requirements, project management is accomplished through processes. A process is a set of interrelated actions and activities that are performed to achieve a pre- specified set of products, results, or services  All PM processes are aggregated into five groups: 1. Initiating Process Group 2. Planning Process Group 3. Executing Process Group 4. Monitoring and Controlling Process Group 5. Closing Process Group
  • 183. 9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 183
  • 184. 9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 184
  • 185. 4.1 Initiating/Identification It consists of those processes performed to define a new project or a new phase of an existing project by obtaining authorization to start the project or phase. The purpose of the Initiating Process is to align the stakeholders’ expectations and project purpose, inform stakeholders about scope and objectives, and discuss how stakeholders participation in the project and its associated phases can help to ensure their expectations are met. 9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 185
  • 186. Initiating… How do you initiate (identify) project ideas in your organization Where do you get your project ideas? Have you checked the alignment of stakeholders’ expectations and project purpose, Have you inform and discuss stakeholders about the scope, objectives and their participation 9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 186
  • 187. Initiating… Within the Initiating processes,  the initial scope is defined  initial financial resources are committed  Stakeholders who will interact and influence the overall outcome of the project are identified.  If not assigned, the project manager is appointed. This information is captured in the project charter and stakeholder register. When the project charter is approved,  the project is officially authorized, and  the project manager is lawful to apply organizational resources to project activities.
  • 188. Initiating… The key benefits of this Process Group are that  only projects that are aligned with the organization’s strategic objectives are authorized and  the business case, benefits, and stakeholders are considered from the start of the project. In some organizations, project manager is involved in developing the business case & defining the benefits. In other organizations, pre-project work is done by:  the project sponsor,  project management office (PMO),  portfolio steering committee, or  other stakeholder group. What is your organization trend look a like in this regard ?
  • 189. Initiating… 1.1 Develop Project Charter It is the process of developing a document that formally authorizes the existence of a project and provides the project manager with the authority to apply organizational resources to project activities. The key benefits of this process are that it provides a direct link between the project and the strategic objectives of the organization, creates a formal record of the project, and shows the organizational commitment to the project.
  • 190. Initiating… Project charter input and output 9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 190
  • 191. Initiating… 1.2 Identify Stakeholders It is the process of identifying project stakeholders regularly and analyzing and documenting relevant information regarding their interests, involvement, interdependencies, influence, and potential impact on project success. The key benefit of this process is that it enables the project team to identify the appropriate focus for engagement of each stakeholder or group of stakeholders. This process is performed periodically throughout the project as needed.
  • 192. Initiating…  Internal stakeholders:  Sponsor,  Resource manager,  Project management office (PMO),  Portfolio steering committee,  Program manager,  Project managers of other projects, and  Team members.  External stakeholders:  Customers,  End users,  Suppliers,  Shareholders  Regulatory bodies, and  Competitors 9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 192
  • 193. Initiating… Project stakeholders 9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 193
  • 194. Initiating… Identify Stakeholders: Inputs and Outputs 9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 194
  • 195. 4.2 Planning Planning Process Group consists of those processes that  establish the total scope of the effort,  define and refine the objectives, and  develop course of action required to attain those objectives. Here are expected to develop: the components of the project management plan and the project documents used to carry out the project. The nature of a project may require the use of repeated feedback loops for additional analysis. 9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 195
  • 196. Planning… 2.1 Project Management Plan (PMP)  It is the process of defining, preparing, and coordinating all plan components and consolidating them into an integrated project management plan.  The key benefit of this process is the production of a comprehensive document that defines the basis of all project work and how the work will be performed. Develop PMP: Inputs and Outputs 9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 196
  • 197. 9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 197 Plan Resource Management Project Management Plan Components Plan Quality Management Plan Communications Management Plan Risk Management A. Identify Risks B. Perform Qualitative Risk Analysis C. Perform Quantitative Risk Analysis D. Develop Risk Responses Plan Schedule Management A. Define Activities B. Sequence Activities C. Estimate Durations of Activity D. Develop Schedule Define Scope Plan Cost Management A. Estimate Costs B. Determine Budget Plan Procurement Management Planning… Plan Stakeholder Engagement Crate WBS Estimate activity Resource
  • 198. Planning… 2.2. Plan Scope Management  It is the process of creating documents that determine how the project and product scope will be defined, validated, and controlled.  The key benefit of this plan is that it provides guidance and direction on how scope will be managed throughout the project. 2.3 collect Requirements  It is the process of determining, documenting, & managing stakeholder needs and requirements to meet project or phase objectives.  The key benefit of this process is, it provides the basis for defining the product scope and project scope. 9/2/2023 AMARE MABRIE (ASST. PROFESSOR) 198