SlideShare a Scribd company logo

DISE - Introduction to Project Management

ESOFT Metro Campus - Diploma in Software Engineering - (Module VII) Introduction to Project Management (Template - Virtusa Corporate) Contents: What is a Project? History of the Project Management Attributes of a Project What is Project Management? Why Project Management Important? The Triple Constraints of a Project Project Stakeholders Performing Organizational Structures Project Management Life Cycle Project Management Processes Nine Knowledge Areas Integration Management Scope Management Time Management Cost Management Quality Management Human Resource Management Communication Management Risk Management Procurement Management

1 of 190
Download to read offline
Diploma in Software Engineering
Module VII: Introduction to Project
Management
Rasan Samarasinghe
ESOFT Computer Studies (pvt) Ltd.
No 68/1, Main Street, Pallegama, Embilipitiya.
Contents
1. What is a Project?
2. History of the Project Management
3. Attributes of a Project
4. What is Project Management?
5. Why Project Management Important?
6. The Triple Constraints of a Project
7. Project Stakeholders
8. Performing Organizational Structures
9. Project Management Life Cycle
10. Project Management Processes
11. Nine Knowledge Areas
12. Integration Management
13. Scope Management
14. Time Management
15. Cost Management
16. Quality Management
17. Human Resource Management
18. Communication Management
19. Risk Management
20. Procurement Management
What is a Project?
• A project is a set of related tasks that are
coordinated to achieve a specific objective in a
given time limit.
• A project can be known as a temporary attempt
undertaken to create an unique product or
service.
Examples of Projects
A. Designing a new Product or Service.
B. Moving from one building to another.
C. Designing and building a new Vehicle.
D. Computerizing a Manual System.
E. Building a new Road.
F. Building a new House.
History of the Project Management
History of the Project Management
• For most people the starting point in the History
of Project Management is the Great Pyramid at
Giza, 2550 B.C.
• The 1950s marked the beginning of the modern
project management era, prior to then projects
were managed on an ad-hoc basis using mostly
informal techniques and tools.
Ad

Recommended

Lecture 05:Advanced Project Management PM Processes and Framework
Lecture 05:Advanced Project Management   PM Processes and FrameworkLecture 05:Advanced Project Management   PM Processes and Framework
Lecture 05:Advanced Project Management PM Processes and FrameworkFida Karim 🇵🇰
 
Project Management
Project ManagementProject Management
Project ManagementMark Roman
 
An Introduction to Project Management
An Introduction to Project Management An Introduction to Project Management
An Introduction to Project Management Krishna Kant
 
Introduction to Software Project Management
Introduction to Software Project ManagementIntroduction to Software Project Management
Introduction to Software Project ManagementReetesh Gupta
 
07. Project Integration Management
07. Project Integration Management07. Project Integration Management
07. Project Integration ManagementBhuWan Khadka
 
Project Management Framework
Project Management FrameworkProject Management Framework
Project Management FrameworkRahul Sudame
 

More Related Content

What's hot

Project management basics
Project management basicsProject management basics
Project management basicsPlanning School
 
Fundamentals of Project Management
Fundamentals of Project Management Fundamentals of Project Management
Fundamentals of Project Management Yesica Adicondro
 
1.3 project management process groups & knowledge areas 1
1.3 project management process groups & knowledge areas 11.3 project management process groups & knowledge areas 1
1.3 project management process groups & knowledge areas 1reddvise
 
Project management essentials 3 day training program
Project management essentials   3 day training programProject management essentials   3 day training program
Project management essentials 3 day training programParamjit Arora
 
Episode 20 :PROJECT MANAGEMENT CONTEXT
Episode 20 :PROJECT MANAGEMENT CONTEXTEpisode 20 :PROJECT MANAGEMENT CONTEXT
Episode 20 :PROJECT MANAGEMENT CONTEXTSAJJAD KHUDHUR ABBAS
 
Introduction to Project Management by Javid Hamdard
Introduction to Project Management by Javid HamdardIntroduction to Project Management by Javid Hamdard
Introduction to Project Management by Javid HamdardJavid Hamdard
 
Chapter 3 Lecture Slides
Chapter 3 Lecture SlidesChapter 3 Lecture Slides
Chapter 3 Lecture Slidesdotesch
 
PMP Lecture 3: Project Management Processes
PMP Lecture 3: Project Management ProcessesPMP Lecture 3: Project Management Processes
PMP Lecture 3: Project Management ProcessesMohamed Loey
 
Project Management - Foundation
Project Management - FoundationProject Management - Foundation
Project Management - FoundationShabbeer Zafar
 
Project Management Professional PMI-PMP Based on PMBOK 6th Edition
Project Management Professional PMI-PMP Based on PMBOK 6th EditionProject Management Professional PMI-PMP Based on PMBOK 6th Edition
Project Management Professional PMI-PMP Based on PMBOK 6th EditionJohn Khateeb
 
Project Management for IT-related Projects (Logitrain)
Project Management for IT-related Projects (Logitrain)Project Management for IT-related Projects (Logitrain)
Project Management for IT-related Projects (Logitrain)Logitrain: New Zealand
 
Project Management Fundamentals
Project Management FundamentalsProject Management Fundamentals
Project Management FundamentalsOxfordCambridge
 
Fundamentals of project management
Fundamentals of project managementFundamentals of project management
Fundamentals of project managementMohamed Amin
 

What's hot (20)

Project management basics
Project management basicsProject management basics
Project management basics
 
Fundamentals of Project Management
Fundamentals of Project Management Fundamentals of Project Management
Fundamentals of Project Management
 
1.3 project management process groups & knowledge areas 1
1.3 project management process groups & knowledge areas 11.3 project management process groups & knowledge areas 1
1.3 project management process groups & knowledge areas 1
 
Project management essentials 3 day training program
Project management essentials   3 day training programProject management essentials   3 day training program
Project management essentials 3 day training program
 
Episode 20 :PROJECT MANAGEMENT CONTEXT
Episode 20 :PROJECT MANAGEMENT CONTEXTEpisode 20 :PROJECT MANAGEMENT CONTEXT
Episode 20 :PROJECT MANAGEMENT CONTEXT
 
PMP PMBOK 6th
PMP PMBOK 6thPMP PMBOK 6th
PMP PMBOK 6th
 
Introduction to Project Management by Javid Hamdard
Introduction to Project Management by Javid HamdardIntroduction to Project Management by Javid Hamdard
Introduction to Project Management by Javid Hamdard
 
Chap04 project integration management
Chap04 project integration managementChap04 project integration management
Chap04 project integration management
 
Chapter 3 Lecture Slides
Chapter 3 Lecture SlidesChapter 3 Lecture Slides
Chapter 3 Lecture Slides
 
PMP Lecture 3: Project Management Processes
PMP Lecture 3: Project Management ProcessesPMP Lecture 3: Project Management Processes
PMP Lecture 3: Project Management Processes
 
Project Management - Foundation
Project Management - FoundationProject Management - Foundation
Project Management - Foundation
 
Adaptive Project Management
Adaptive Project ManagementAdaptive Project Management
Adaptive Project Management
 
Project Management Professional PMI-PMP Based on PMBOK 6th Edition
Project Management Professional PMI-PMP Based on PMBOK 6th EditionProject Management Professional PMI-PMP Based on PMBOK 6th Edition
Project Management Professional PMI-PMP Based on PMBOK 6th Edition
 
Project Management for IT-related Projects (Logitrain)
Project Management for IT-related Projects (Logitrain)Project Management for IT-related Projects (Logitrain)
Project Management for IT-related Projects (Logitrain)
 
project management concepts
project management conceptsproject management concepts
project management concepts
 
Project Management Fundamentals
Project Management FundamentalsProject Management Fundamentals
Project Management Fundamentals
 
Project life cycle
Project life cycleProject life cycle
Project life cycle
 
Fundamentals of project management
Fundamentals of project managementFundamentals of project management
Fundamentals of project management
 
Different project management methodologies
Different project management methodologiesDifferent project management methodologies
Different project management methodologies
 
Integrating project life cycle with process groups
Integrating project life cycle with process groupsIntegrating project life cycle with process groups
Integrating project life cycle with process groups
 

Viewers also liked

DIWE - Working with MySQL Databases
DIWE - Working with MySQL DatabasesDIWE - Working with MySQL Databases
DIWE - Working with MySQL DatabasesRasan Samarasinghe
 
DITEC - Programming with C#.NET
DITEC - Programming with C#.NETDITEC - Programming with C#.NET
DITEC - Programming with C#.NETRasan Samarasinghe
 
Esoft Metro Campus - Certificate in c / c++ programming
Esoft Metro Campus - Certificate in c / c++ programmingEsoft Metro Campus - Certificate in c / c++ programming
Esoft Metro Campus - Certificate in c / c++ programmingRasan Samarasinghe
 
DISE - Windows Based Application Development in Java
DISE - Windows Based Application Development in JavaDISE - Windows Based Application Development in Java
DISE - Windows Based Application Development in JavaRasan Samarasinghe
 
DISE - Software Testing and Quality Management
DISE - Software Testing and Quality ManagementDISE - Software Testing and Quality Management
DISE - Software Testing and Quality ManagementRasan Samarasinghe
 
Esoft Metro Campus - Certificate in java basics
Esoft Metro Campus - Certificate in java basicsEsoft Metro Campus - Certificate in java basics
Esoft Metro Campus - Certificate in java basicsRasan Samarasinghe
 
Esoft Metro Campus - Programming with C++
Esoft Metro Campus - Programming with C++Esoft Metro Campus - Programming with C++
Esoft Metro Campus - Programming with C++Rasan Samarasinghe
 
Introduction to Project Management (workshop) - v.2
Introduction to Project Management (workshop) - v.2Introduction to Project Management (workshop) - v.2
Introduction to Project Management (workshop) - v.2Mena M. Eissa
 
Introduction to Project Management (workshop) - v.1
Introduction to Project Management (workshop) - v.1Introduction to Project Management (workshop) - v.1
Introduction to Project Management (workshop) - v.1Mena M. Eissa
 
Project Management Concepts (from PMBOK 5th Ed)
Project Management Concepts (from PMBOK 5th Ed)Project Management Concepts (from PMBOK 5th Ed)
Project Management Concepts (from PMBOK 5th Ed)Jeremy Jay Lim
 
Introduction project managemen
Introduction project managemenIntroduction project managemen
Introduction project managemenMostafa Elgamala
 
Project Management Introduction
Project Management IntroductionProject Management Introduction
Project Management IntroductionAllan Berry
 
project management introduction
project management introductionproject management introduction
project management introductionahmed hassan
 
DITEC - Expose yourself to Internet & E-mail (second update)
DITEC - Expose yourself to Internet & E-mail (second update) DITEC - Expose yourself to Internet & E-mail (second update)
DITEC - Expose yourself to Internet & E-mail (second update) Rasan Samarasinghe
 
DITEC - Expose yourself to Internet & E-mail (updated)
DITEC - Expose yourself to Internet & E-mail (updated)DITEC - Expose yourself to Internet & E-mail (updated)
DITEC - Expose yourself to Internet & E-mail (updated)Rasan Samarasinghe
 
DITEC - Expose yourself to Internet & E-mail
DITEC - Expose yourself to Internet & E-mailDITEC - Expose yourself to Internet & E-mail
DITEC - Expose yourself to Internet & E-mailRasan Samarasinghe
 
NCV 3 Project Management Hands-On Support Slide Show - Module 8
NCV 3 Project Management Hands-On Support Slide Show - Module 8NCV 3 Project Management Hands-On Support Slide Show - Module 8
NCV 3 Project Management Hands-On Support Slide Show - Module 8Future Managers
 
DISE - Windows Based Application Development in C#
DISE - Windows Based Application Development in C#DISE - Windows Based Application Development in C#
DISE - Windows Based Application Development in C#Rasan Samarasinghe
 

Viewers also liked (20)

DIWE - Working with MySQL Databases
DIWE - Working with MySQL DatabasesDIWE - Working with MySQL Databases
DIWE - Working with MySQL Databases
 
DITEC - Programming with C#.NET
DITEC - Programming with C#.NETDITEC - Programming with C#.NET
DITEC - Programming with C#.NET
 
Esoft Metro Campus - Certificate in c / c++ programming
Esoft Metro Campus - Certificate in c / c++ programmingEsoft Metro Campus - Certificate in c / c++ programming
Esoft Metro Campus - Certificate in c / c++ programming
 
DISE - Windows Based Application Development in Java
DISE - Windows Based Application Development in JavaDISE - Windows Based Application Development in Java
DISE - Windows Based Application Development in Java
 
DISE - Software Testing and Quality Management
DISE - Software Testing and Quality ManagementDISE - Software Testing and Quality Management
DISE - Software Testing and Quality Management
 
Esoft Metro Campus - Certificate in java basics
Esoft Metro Campus - Certificate in java basicsEsoft Metro Campus - Certificate in java basics
Esoft Metro Campus - Certificate in java basics
 
Esoft Metro Campus - Programming with C++
Esoft Metro Campus - Programming with C++Esoft Metro Campus - Programming with C++
Esoft Metro Campus - Programming with C++
 
Introduction to Project Management (workshop) - v.2
Introduction to Project Management (workshop) - v.2Introduction to Project Management (workshop) - v.2
Introduction to Project Management (workshop) - v.2
 
Introduction to Project Management (workshop) - v.1
Introduction to Project Management (workshop) - v.1Introduction to Project Management (workshop) - v.1
Introduction to Project Management (workshop) - v.1
 
Project Management Concepts (from PMBOK 5th Ed)
Project Management Concepts (from PMBOK 5th Ed)Project Management Concepts (from PMBOK 5th Ed)
Project Management Concepts (from PMBOK 5th Ed)
 
Introduction project managemen
Introduction project managemenIntroduction project managemen
Introduction project managemen
 
Project Management Introduction
Project Management IntroductionProject Management Introduction
Project Management Introduction
 
project management introduction
project management introductionproject management introduction
project management introduction
 
DITEC - Expose yourself to Internet & E-mail (second update)
DITEC - Expose yourself to Internet & E-mail (second update) DITEC - Expose yourself to Internet & E-mail (second update)
DITEC - Expose yourself to Internet & E-mail (second update)
 
How to Apply PMI PMP Certification Exam
How to Apply PMI PMP Certification ExamHow to Apply PMI PMP Certification Exam
How to Apply PMI PMP Certification Exam
 
DITEC - Expose yourself to Internet & E-mail (updated)
DITEC - Expose yourself to Internet & E-mail (updated)DITEC - Expose yourself to Internet & E-mail (updated)
DITEC - Expose yourself to Internet & E-mail (updated)
 
DITEC - Expose yourself to Internet & E-mail
DITEC - Expose yourself to Internet & E-mailDITEC - Expose yourself to Internet & E-mail
DITEC - Expose yourself to Internet & E-mail
 
NCV 3 Project Management Hands-On Support Slide Show - Module 8
NCV 3 Project Management Hands-On Support Slide Show - Module 8NCV 3 Project Management Hands-On Support Slide Show - Module 8
NCV 3 Project Management Hands-On Support Slide Show - Module 8
 
DITEC - Software Engineering
DITEC - Software EngineeringDITEC - Software Engineering
DITEC - Software Engineering
 
DISE - Windows Based Application Development in C#
DISE - Windows Based Application Development in C#DISE - Windows Based Application Development in C#
DISE - Windows Based Application Development in C#
 

Similar to DISE - Introduction to Project Management

Project Management
Project ManagementProject Management
Project ManagementAtif Rehmat
 
04 project integration management
04  project integration management04  project integration management
04 project integration managementAla Ibrahim
 
Project planning.pptx
Project planning.pptxProject planning.pptx
Project planning.pptxHarsimratDeo1
 
Project planning.pptx
Project planning.pptxProject planning.pptx
Project planning.pptxHarsimratDeo1
 
06. Project Management Process Groups
06. Project Management Process Groups06. Project Management Process Groups
06. Project Management Process GroupsBhuWan Khadka
 
Managing the information system project
Managing the information system projectManaging the information system project
Managing the information system projectalpha1unity
 
Managing the information system project
Managing the information system projectManaging the information system project
Managing the information system projecta23ccb
 
Fundamentalsof PM.pptx
Fundamentalsof PM.pptxFundamentalsof PM.pptx
Fundamentalsof PM.pptxagathamarlinee
 
04 projectintegrationmanagement
04 projectintegrationmanagement04 projectintegrationmanagement
04 projectintegrationmanagementDhamo daran
 
Project management lecture 33.pptx
Project management lecture 33.pptxProject management lecture 33.pptx
Project management lecture 33.pptxFarhanullah46
 
Project Management Cycle and MS Project 2013 By Subodh Kumar PMP
Project Management Cycle and  MS Project 2013  By Subodh Kumar PMPProject Management Cycle and  MS Project 2013  By Subodh Kumar PMP
Project Management Cycle and MS Project 2013 By Subodh Kumar PMPSubodh Kumar
 
2. PAE AcFn621 Ch-2 Principle ppt.pptx
2. PAE AcFn621 Ch-2 Principle ppt.pptx2. PAE AcFn621 Ch-2 Principle ppt.pptx
2. PAE AcFn621 Ch-2 Principle ppt.pptxProfDrAnbalaganChinn
 
CAPM Exam preparation - series 1
CAPM Exam preparation - series 1CAPM Exam preparation - series 1
CAPM Exam preparation - series 1Toe Myint Naing
 
Topic 6 - Project Integration Management.pdf
Topic 6 - Project Integration Management.pdfTopic 6 - Project Integration Management.pdf
Topic 6 - Project Integration Management.pdfHuyNguyen657394
 

Similar to DISE - Introduction to Project Management (20)

Project Management
Project ManagementProject Management
Project Management
 
04 project integration management
04  project integration management04  project integration management
04 project integration management
 
Project planning.pptx
Project planning.pptxProject planning.pptx
Project planning.pptx
 
Project planning.pptx
Project planning.pptxProject planning.pptx
Project planning.pptx
 
Lecture 2.pptx
Lecture 2.pptxLecture 2.pptx
Lecture 2.pptx
 
1. introduction
1. introduction1. introduction
1. introduction
 
06. Project Management Process Groups
06. Project Management Process Groups06. Project Management Process Groups
06. Project Management Process Groups
 
Managing the information system project
Managing the information system projectManaging the information system project
Managing the information system project
 
Managing the information system project
Managing the information system projectManaging the information system project
Managing the information system project
 
Fundamentalsof PM.pptx
Fundamentalsof PM.pptxFundamentalsof PM.pptx
Fundamentalsof PM.pptx
 
04 projectintegrationmanagement
04 projectintegrationmanagement04 projectintegrationmanagement
04 projectintegrationmanagement
 
Proj Mgmt.ppt
Proj Mgmt.pptProj Mgmt.ppt
Proj Mgmt.ppt
 
SPM_UNIT-1(1).pptx
SPM_UNIT-1(1).pptxSPM_UNIT-1(1).pptx
SPM_UNIT-1(1).pptx
 
Project management lecture 33.pptx
Project management lecture 33.pptxProject management lecture 33.pptx
Project management lecture 33.pptx
 
Project Management Cycle and MS Project 2013 By Subodh Kumar PMP
Project Management Cycle and  MS Project 2013  By Subodh Kumar PMPProject Management Cycle and  MS Project 2013  By Subodh Kumar PMP
Project Management Cycle and MS Project 2013 By Subodh Kumar PMP
 
2. PAE AcFn621 Ch-2 Principle ppt.pptx
2. PAE AcFn621 Ch-2 Principle ppt.pptx2. PAE AcFn621 Ch-2 Principle ppt.pptx
2. PAE AcFn621 Ch-2 Principle ppt.pptx
 
2) PMT & PIM.pptx
2) PMT & PIM.pptx2) PMT & PIM.pptx
2) PMT & PIM.pptx
 
CAPM Exam preparation - series 1
CAPM Exam preparation - series 1CAPM Exam preparation - series 1
CAPM Exam preparation - series 1
 
Topic 6 - Project Integration Management.pdf
Topic 6 - Project Integration Management.pdfTopic 6 - Project Integration Management.pdf
Topic 6 - Project Integration Management.pdf
 
Project Management Introduction
Project Management IntroductionProject Management Introduction
Project Management Introduction
 

More from Rasan Samarasinghe

Managing the under performance in projects.pptx
Managing the under performance in projects.pptxManaging the under performance in projects.pptx
Managing the under performance in projects.pptxRasan Samarasinghe
 
Agile project management with scrum
Agile project management with scrumAgile project management with scrum
Agile project management with scrumRasan Samarasinghe
 
Application of Unified Modelling Language
Application of Unified Modelling LanguageApplication of Unified Modelling Language
Application of Unified Modelling LanguageRasan Samarasinghe
 
Advanced Web Development in PHP - Understanding REST API
Advanced Web Development in PHP - Understanding REST APIAdvanced Web Development in PHP - Understanding REST API
Advanced Web Development in PHP - Understanding REST APIRasan Samarasinghe
 
Advanced Web Development in PHP - Understanding Project Development Methodolo...
Advanced Web Development in PHP - Understanding Project Development Methodolo...Advanced Web Development in PHP - Understanding Project Development Methodolo...
Advanced Web Development in PHP - Understanding Project Development Methodolo...Rasan Samarasinghe
 
Advanced Web Development in PHP - Code Versioning and Branching with Git
Advanced Web Development in PHP - Code Versioning and Branching with GitAdvanced Web Development in PHP - Code Versioning and Branching with Git
Advanced Web Development in PHP - Code Versioning and Branching with GitRasan Samarasinghe
 
DIWE - Using Extensions and Image Manipulation
DIWE - Using Extensions and Image ManipulationDIWE - Using Extensions and Image Manipulation
DIWE - Using Extensions and Image ManipulationRasan Samarasinghe
 
DIWE - Programming with JavaScript
DIWE - Programming with JavaScriptDIWE - Programming with JavaScript
DIWE - Programming with JavaScriptRasan Samarasinghe
 
DIWE - Coding HTML for Basic Web Designing
DIWE - Coding HTML for Basic Web DesigningDIWE - Coding HTML for Basic Web Designing
DIWE - Coding HTML for Basic Web DesigningRasan Samarasinghe
 
DIWE - Multimedia Technologies
DIWE - Multimedia TechnologiesDIWE - Multimedia Technologies
DIWE - Multimedia TechnologiesRasan Samarasinghe
 
DISE - Introduction to Software Engineering
DISE - Introduction to Software EngineeringDISE - Introduction to Software Engineering
DISE - Introduction to Software EngineeringRasan Samarasinghe
 

More from Rasan Samarasinghe (20)

Managing the under performance in projects.pptx
Managing the under performance in projects.pptxManaging the under performance in projects.pptx
Managing the under performance in projects.pptx
 
Agile project management with scrum
Agile project management with scrumAgile project management with scrum
Agile project management with scrum
 
Introduction to Agile
Introduction to AgileIntroduction to Agile
Introduction to Agile
 
IT Introduction (en)
IT Introduction (en)IT Introduction (en)
IT Introduction (en)
 
Application of Unified Modelling Language
Application of Unified Modelling LanguageApplication of Unified Modelling Language
Application of Unified Modelling Language
 
Advanced Web Development in PHP - Understanding REST API
Advanced Web Development in PHP - Understanding REST APIAdvanced Web Development in PHP - Understanding REST API
Advanced Web Development in PHP - Understanding REST API
 
Advanced Web Development in PHP - Understanding Project Development Methodolo...
Advanced Web Development in PHP - Understanding Project Development Methodolo...Advanced Web Development in PHP - Understanding Project Development Methodolo...
Advanced Web Development in PHP - Understanding Project Development Methodolo...
 
Advanced Web Development in PHP - Code Versioning and Branching with Git
Advanced Web Development in PHP - Code Versioning and Branching with GitAdvanced Web Development in PHP - Code Versioning and Branching with Git
Advanced Web Development in PHP - Code Versioning and Branching with Git
 
DIWE - Using Extensions and Image Manipulation
DIWE - Using Extensions and Image ManipulationDIWE - Using Extensions and Image Manipulation
DIWE - Using Extensions and Image Manipulation
 
DIWE - File handling with PHP
DIWE - File handling with PHPDIWE - File handling with PHP
DIWE - File handling with PHP
 
DIWE - Advanced PHP Concepts
DIWE - Advanced PHP ConceptsDIWE - Advanced PHP Concepts
DIWE - Advanced PHP Concepts
 
DIWE - Fundamentals of PHP
DIWE - Fundamentals of PHPDIWE - Fundamentals of PHP
DIWE - Fundamentals of PHP
 
DIWE - Programming with JavaScript
DIWE - Programming with JavaScriptDIWE - Programming with JavaScript
DIWE - Programming with JavaScript
 
DIWE - Coding HTML for Basic Web Designing
DIWE - Coding HTML for Basic Web DesigningDIWE - Coding HTML for Basic Web Designing
DIWE - Coding HTML for Basic Web Designing
 
DIWE - Multimedia Technologies
DIWE - Multimedia TechnologiesDIWE - Multimedia Technologies
DIWE - Multimedia Technologies
 
DISE - Database Concepts
DISE - Database ConceptsDISE - Database Concepts
DISE - Database Concepts
 
DISE - OOAD Using UML
DISE - OOAD Using UMLDISE - OOAD Using UML
DISE - OOAD Using UML
 
DISE - Programming Concepts
DISE - Programming ConceptsDISE - Programming Concepts
DISE - Programming Concepts
 
DISE - Introduction to Software Engineering
DISE - Introduction to Software EngineeringDISE - Introduction to Software Engineering
DISE - Introduction to Software Engineering
 
DITEC - E-Commerce & ASP.NET
DITEC - E-Commerce & ASP.NETDITEC - E-Commerce & ASP.NET
DITEC - E-Commerce & ASP.NET
 

Recently uploaded

S. Kim, NeurIPS 2023, MLILAB, KAISTAI
S. Kim,  NeurIPS 2023,  MLILAB,  KAISTAIS. Kim,  NeurIPS 2023,  MLILAB,  KAISTAI
S. Kim, NeurIPS 2023, MLILAB, KAISTAIMLILAB
 
Pre-assessment & Data Sheet presentation template - 2023.pptx
Pre-assessment & Data Sheet presentation template - 2023.pptxPre-assessment & Data Sheet presentation template - 2023.pptx
Pre-assessment & Data Sheet presentation template - 2023.pptxssuserc79a6f
 
Microstrip Bandpass Filter Design using EDA Tolol such as keysight ADS and An...
Microstrip Bandpass Filter Design using EDA Tolol such as keysight ADS and An...Microstrip Bandpass Filter Design using EDA Tolol such as keysight ADS and An...
Microstrip Bandpass Filter Design using EDA Tolol such as keysight ADS and An...GauravBhartie
 
chap. 3. lipid deterioration oil and fat processign
chap. 3. lipid deterioration oil and fat processignchap. 3. lipid deterioration oil and fat processign
chap. 3. lipid deterioration oil and fat processignteddymebratie
 
ROBOT PERCEPTION FOR AGRICULTURE AND GOOD PRODUCTION1.1.pdf
ROBOT PERCEPTION FOR AGRICULTURE AND GOOD PRODUCTION1.1.pdfROBOT PERCEPTION FOR AGRICULTURE AND GOOD PRODUCTION1.1.pdf
ROBOT PERCEPTION FOR AGRICULTURE AND GOOD PRODUCTION1.1.pdfRudraPratapSingh871925
 
Bresenham line-drawing-algorithm By S L Sonawane.pdf
Bresenham line-drawing-algorithm By S L Sonawane.pdfBresenham line-drawing-algorithm By S L Sonawane.pdf
Bresenham line-drawing-algorithm By S L Sonawane.pdfSujataSonawane11
 
MAXIMUM POWER POINT TRACKING ALGORITHMS APPLIED TO WIND-SOLAR HYBRID SYSTEM
MAXIMUM POWER POINT TRACKING ALGORITHMS APPLIED TO WIND-SOLAR HYBRID SYSTEMMAXIMUM POWER POINT TRACKING ALGORITHMS APPLIED TO WIND-SOLAR HYBRID SYSTEM
MAXIMUM POWER POINT TRACKING ALGORITHMS APPLIED TO WIND-SOLAR HYBRID SYSTEMArunkumar Tulasi
 
DOC-20240215-WA0000..pdf class 11 check waves
DOC-20240215-WA0000..pdf class 11 check wavesDOC-20240215-WA0000..pdf class 11 check waves
DOC-20240215-WA0000..pdf class 11 check wavesshreyanshdubey7814
 
Eversendai - HSE Performance Management Systems-R1.pptx
Eversendai - HSE Performance Management Systems-R1.pptxEversendai - HSE Performance Management Systems-R1.pptx
Eversendai - HSE Performance Management Systems-R1.pptxADILRASHID54
 
nervous system ppt pptx anatomy system of nerves
nervous system ppt pptx anatomy system of nervesnervous system ppt pptx anatomy system of nerves
nervous system ppt pptx anatomy system of nervesPhebeLois1
 
PM24_Oral_Presentation_Template_Guidelines.pptx
PM24_Oral_Presentation_Template_Guidelines.pptxPM24_Oral_Presentation_Template_Guidelines.pptx
PM24_Oral_Presentation_Template_Guidelines.pptxnissamant
 
Pointers and Array, pointer and String.pptx
Pointers and Array, pointer and String.pptxPointers and Array, pointer and String.pptx
Pointers and Array, pointer and String.pptxAnanthi Palanisamy
 
Center Enamel is the leading bolted steel tanks manufacturer in China.docx
Center Enamel is the leading bolted steel tanks manufacturer in China.docxCenter Enamel is the leading bolted steel tanks manufacturer in China.docx
Center Enamel is the leading bolted steel tanks manufacturer in China.docxsjzzztc
 
Metrology Measurements and All units PPT
Metrology Measurements and  All units PPTMetrology Measurements and  All units PPT
Metrology Measurements and All units PPTdinesh babu
 
Presentation of Helmet Detection Using Machine Learning.pptx
Presentation of Helmet Detection Using Machine Learning.pptxPresentation of Helmet Detection Using Machine Learning.pptx
Presentation of Helmet Detection Using Machine Learning.pptxasmitaTele2
 
20CE501PE – INDUSTRIAL WASTE MANAGEMENT.ppt
20CE501PE – INDUSTRIAL WASTE MANAGEMENT.ppt20CE501PE – INDUSTRIAL WASTE MANAGEMENT.ppt
20CE501PE – INDUSTRIAL WASTE MANAGEMENT.pptMohanumar S
 
CCNA: Routing and Switching Fundamentals
CCNA: Routing and Switching FundamentalsCCNA: Routing and Switching Fundamentals
CCNA: Routing and Switching FundamentalsDebabrata Halder
 
Introduction and replication to DragonflyDB
Introduction and replication to DragonflyDBIntroduction and replication to DragonflyDB
Introduction and replication to DragonflyDBMarian Marinov
 
【文凭定制】坎特伯雷大学毕业证学历认证
【文凭定制】坎特伯雷大学毕业证学历认证【文凭定制】坎特伯雷大学毕业证学历认证
【文凭定制】坎特伯雷大学毕业证学历认证muvgemo
 
Introduction to the telecom tower industry
Introduction to the telecom tower industryIntroduction to the telecom tower industry
Introduction to the telecom tower industryssuserf5bbfd
 

Recently uploaded (20)

S. Kim, NeurIPS 2023, MLILAB, KAISTAI
S. Kim,  NeurIPS 2023,  MLILAB,  KAISTAIS. Kim,  NeurIPS 2023,  MLILAB,  KAISTAI
S. Kim, NeurIPS 2023, MLILAB, KAISTAI
 
Pre-assessment & Data Sheet presentation template - 2023.pptx
Pre-assessment & Data Sheet presentation template - 2023.pptxPre-assessment & Data Sheet presentation template - 2023.pptx
Pre-assessment & Data Sheet presentation template - 2023.pptx
 
Microstrip Bandpass Filter Design using EDA Tolol such as keysight ADS and An...
Microstrip Bandpass Filter Design using EDA Tolol such as keysight ADS and An...Microstrip Bandpass Filter Design using EDA Tolol such as keysight ADS and An...
Microstrip Bandpass Filter Design using EDA Tolol such as keysight ADS and An...
 
chap. 3. lipid deterioration oil and fat processign
chap. 3. lipid deterioration oil and fat processignchap. 3. lipid deterioration oil and fat processign
chap. 3. lipid deterioration oil and fat processign
 
ROBOT PERCEPTION FOR AGRICULTURE AND GOOD PRODUCTION1.1.pdf
ROBOT PERCEPTION FOR AGRICULTURE AND GOOD PRODUCTION1.1.pdfROBOT PERCEPTION FOR AGRICULTURE AND GOOD PRODUCTION1.1.pdf
ROBOT PERCEPTION FOR AGRICULTURE AND GOOD PRODUCTION1.1.pdf
 
Bresenham line-drawing-algorithm By S L Sonawane.pdf
Bresenham line-drawing-algorithm By S L Sonawane.pdfBresenham line-drawing-algorithm By S L Sonawane.pdf
Bresenham line-drawing-algorithm By S L Sonawane.pdf
 
MAXIMUM POWER POINT TRACKING ALGORITHMS APPLIED TO WIND-SOLAR HYBRID SYSTEM
MAXIMUM POWER POINT TRACKING ALGORITHMS APPLIED TO WIND-SOLAR HYBRID SYSTEMMAXIMUM POWER POINT TRACKING ALGORITHMS APPLIED TO WIND-SOLAR HYBRID SYSTEM
MAXIMUM POWER POINT TRACKING ALGORITHMS APPLIED TO WIND-SOLAR HYBRID SYSTEM
 
DOC-20240215-WA0000..pdf class 11 check waves
DOC-20240215-WA0000..pdf class 11 check wavesDOC-20240215-WA0000..pdf class 11 check waves
DOC-20240215-WA0000..pdf class 11 check waves
 
Eversendai - HSE Performance Management Systems-R1.pptx
Eversendai - HSE Performance Management Systems-R1.pptxEversendai - HSE Performance Management Systems-R1.pptx
Eversendai - HSE Performance Management Systems-R1.pptx
 
nervous system ppt pptx anatomy system of nerves
nervous system ppt pptx anatomy system of nervesnervous system ppt pptx anatomy system of nerves
nervous system ppt pptx anatomy system of nerves
 
PM24_Oral_Presentation_Template_Guidelines.pptx
PM24_Oral_Presentation_Template_Guidelines.pptxPM24_Oral_Presentation_Template_Guidelines.pptx
PM24_Oral_Presentation_Template_Guidelines.pptx
 
Pointers and Array, pointer and String.pptx
Pointers and Array, pointer and String.pptxPointers and Array, pointer and String.pptx
Pointers and Array, pointer and String.pptx
 
Center Enamel is the leading bolted steel tanks manufacturer in China.docx
Center Enamel is the leading bolted steel tanks manufacturer in China.docxCenter Enamel is the leading bolted steel tanks manufacturer in China.docx
Center Enamel is the leading bolted steel tanks manufacturer in China.docx
 
Metrology Measurements and All units PPT
Metrology Measurements and  All units PPTMetrology Measurements and  All units PPT
Metrology Measurements and All units PPT
 
Presentation of Helmet Detection Using Machine Learning.pptx
Presentation of Helmet Detection Using Machine Learning.pptxPresentation of Helmet Detection Using Machine Learning.pptx
Presentation of Helmet Detection Using Machine Learning.pptx
 
20CE501PE – INDUSTRIAL WASTE MANAGEMENT.ppt
20CE501PE – INDUSTRIAL WASTE MANAGEMENT.ppt20CE501PE – INDUSTRIAL WASTE MANAGEMENT.ppt
20CE501PE – INDUSTRIAL WASTE MANAGEMENT.ppt
 
CCNA: Routing and Switching Fundamentals
CCNA: Routing and Switching FundamentalsCCNA: Routing and Switching Fundamentals
CCNA: Routing and Switching Fundamentals
 
Introduction and replication to DragonflyDB
Introduction and replication to DragonflyDBIntroduction and replication to DragonflyDB
Introduction and replication to DragonflyDB
 
【文凭定制】坎特伯雷大学毕业证学历认证
【文凭定制】坎特伯雷大学毕业证学历认证【文凭定制】坎特伯雷大学毕业证学历认证
【文凭定制】坎特伯雷大学毕业证学历认证
 
Introduction to the telecom tower industry
Introduction to the telecom tower industryIntroduction to the telecom tower industry
Introduction to the telecom tower industry
 

DISE - Introduction to Project Management

  • 1. Diploma in Software Engineering Module VII: Introduction to Project Management Rasan Samarasinghe ESOFT Computer Studies (pvt) Ltd. No 68/1, Main Street, Pallegama, Embilipitiya.
  • 2. Contents 1. What is a Project? 2. History of the Project Management 3. Attributes of a Project 4. What is Project Management? 5. Why Project Management Important? 6. The Triple Constraints of a Project 7. Project Stakeholders 8. Performing Organizational Structures 9. Project Management Life Cycle 10. Project Management Processes 11. Nine Knowledge Areas 12. Integration Management 13. Scope Management 14. Time Management 15. Cost Management 16. Quality Management 17. Human Resource Management 18. Communication Management 19. Risk Management 20. Procurement Management
  • 3. What is a Project? • A project is a set of related tasks that are coordinated to achieve a specific objective in a given time limit. • A project can be known as a temporary attempt undertaken to create an unique product or service.
  • 4. Examples of Projects A. Designing a new Product or Service. B. Moving from one building to another. C. Designing and building a new Vehicle. D. Computerizing a Manual System. E. Building a new Road. F. Building a new House.
  • 5. History of the Project Management
  • 6. History of the Project Management • For most people the starting point in the History of Project Management is the Great Pyramid at Giza, 2550 B.C. • The 1950s marked the beginning of the modern project management era, prior to then projects were managed on an ad-hoc basis using mostly informal techniques and tools.
  • 7. Attributes of a Project • A project has a unique purpose • A project is temporary • A project is developed using progressive elevation • The project requires resources from various areas (people, hardware, software) • A project should have a primary customer or sponsor • A project involves uncertainty
  • 8. What is Project Management? Project Management is the application of knowledge, skills, tools and techniques to project activities to meet project requirements.
  • 9. Why Project Management Important? • To avoid the over runs of the project budget constraints • To avoid exceeding the estimated time duration of project • To deliver product or service which satisfying the stated customer and project requirement
  • 10. The Triple Constraints of a Project Every project is constraint in different ways by its scope, time and cost goals.
  • 11. Project Stakeholders • Project manager - the individual responsible for managing the project. • Customer - the individual or organization who will use the project product. • Performing organization - the enterprise whose employees are most directly involved in doing the work of the project. • Sponsor - the individual or group within the performing organization who provides the financial resources, in cash or in kind, for the project.
  • 12. Performing Organizational Structures • Any operating organization should have its own structure in order to operate efficiently. • For an organization, the organizational structure is a hierarchy of people and its functions.
  • 18. Project Characteristics and Organization Structures
  • 20. Project Management Life Cycle 1. Initiation - starting up the project by documenting a business case, feasibility study, terms of reference, appointing the team and setting up a Project Office. 2. Planning - creating the roadmap for the project: project plan, resource plan, financial plan, quality plan and communications plan. 3. Execution - involves building the deliverables and controlling the project delivery, scope, costs, quality, risks and issues. 4. Closure - involves winding-down the project by releasing staff, handing over deliverables to the customer and completing a post implementation review.
  • 21. Project Management Processes • A process is “a series of actions bringing about a result” • Projects are composed of processes.
  • 22. Project Management Processes Processes overlap and interact throughout the project.
  • 23. Project Management Processes We can describe each process by: 1. Inputs 2. Tools and Techniques 3. Outputs
  • 24. Nine Knowledge Areas 1. Integration Management 2. Scope Management 3. Time Management 4. Cost Management 5. Quality Management 6. Human Resource Management 7. Communication Management 8. Risk Management 9. Procurement Management
  • 25. Project Integration Management Project Integration Management includes the processes required to ensure that the various elements of the project are properly coordinated. Processes: Project Plan Development Project Plan Execution Overall Change Control
  • 26. Project Plan Development Process Project plan development uses the outputs of the other planning processes to create a consistent, coherent document that can be used to guide both project execution and project control.
  • 27. Inputs for Project Plan Development Process • Other planning outputs. (WBS) • Historical information - Estimating databases, records of past project performance • Organizational policies. • Constraints - Factors that will limit the project management team’s options.(a predefined budget) • Assumptions - If the date that a key person will become available is uncertain, the team may assume a specific start date
  • 28. Tools and Techniques for Project Plan Development Process • Project planning methodology - Structure approach used to guide the project team during development of the project plan. (project management software, facilitated start-up meetings) • Stakeholder skills and knowledge - Every stakeholder has skills and knowledge which may be useful in developing the project plan. • Project management information system (PMIS) - Consists of the tools and techniques used to gather, integrate, and disseminate the outputs of the other project management processes.
  • 29. Project Plan Development Process Outputs • Project plan - A formal, approved document used to manage and control project execution. – Project charter. – A description of the project management approach or strategy – Scope statement – Work breakdown structure (WBS) – Cost estimates, scheduled start dates, and responsibility assignments to WBS – Performance measurement baselines for schedule and cost. – Major milestones and target dates for each. – Key or required staff. – Key risks, including constraints and assumptions, and planned responses. – scope management plan, schedule management plan, etc. – Open issues and pending decisions • Supporting detail. – Outputs from other planning processes – requirements, specifications, and designs documents
  • 30. Project Plan Execution Process • Project plan execution is the primary process for carrying out the project plan. • The vast majority of the project’s budget will be expended in performing this process.
  • 31. Inputs for Project Plan Execution Process • Project plan. • Supporting detail. • Organizational policies. • Corrective action - Anything done to bring expected future project performance into line with the project plan.
  • 32. Tools and Techniques for Project Plan Execution Process • General management skills - leadership, communicating, and negotiating • Product skills and knowledge. • Work authorization system - formal procedure for sanctioning project work to ensure that work is done at the right time and in the proper sequence. • Status review meetings - regularly scheduled meetings held to exchange information about the project. • Project management information system. • Organizational procedures.
  • 33. Project Plan Execution Process Outputs • Work results - outcomes of the activities • Change requests - expand project scope, modify cost or schedule estimates
  • 34. Overall Change Control Process Overall change control is concerned with 1. Influencing the factors which create changes to ensure that changes are beneficial. 2. Determining that a change has occurred. 3. Managing the actual changes when and as they occur.
  • 35. Inputs for Overall Change Control Process • Project plan. • Performance reports. • Change requests.
  • 36. Tools and Techniques for Overall Change Control Process • Change control system - formal documented procedures that defines the steps by which official project documents may be changed. • Configuration management. – Identify and document the functional and physical characteristics of an item or system. – Control any changes to such characteristics. – Record and report the change and its implementation status. – Audit the items and system to verify conformance to requirements. • Performance measurement. • Additional planning - Because projects seldom run exactly according to plan. • Project management information system
  • 37. Overall Change Control Process Outputs • Project plan updates. • Corrective action. • Lessons learned.
  • 38. Project Scope Management Project scope management involves defining and managing all the work required, and only work required, to complete the project successfully. Processes: Initiation Scope Planning Scope Definition Scope Verification Scope Change Control
  • 39. Initiation Process • Initiation committing the organization to begin the next phase of the project. • In some organizations, a project is not formally initiated after completion of a feasibility study
  • 40. Inputs for Initiation Process • Product description - documents the characteristics of the product or service that the project was undertaken to create. • Strategic plan. • Project selection criteria - financial return, market share, public perceptions • Historical information.
  • 41. Tools and Techniques for Initiation Process • Project selection methods. –Benefit measurement methods –Constrained optimization methods • Expert judgment.
  • 42. Initiation Process Outputs • Project charter - Document that formally recognizes the existence of a project. – The business need that the project was undertaken to address. – The product description • Project manager identified/assigned - project manager should always be assigned prior to the start of project plan execution • Constraints - factors that will limit the project management team’s options. • Assumptions - factors that, for planning purposes, will be considered to be true, real, or certain.
  • 43. Scope Planning Process Scope Planning developing a written scope statement as the basis for future project decisions.
  • 44. Inputs for Scope Planning Process • Product description. • Project charter. • Constraints. • Assumptions.
  • 45. Tools and Techniques for Scope Planning Process • Product analysis - systems engineering, value engineering, value analysis, function analysis, quality function deployment. • Benefit/cost analysis - estimating tangible and intangible costs and benefits • Alternatives identification - any technique used to generate different approaches to the project. • Expert judgment.
  • 46. Scope Planning Process Outputs • Scope statement. – Project justification -business need that the project was undertaken – Project product - summary of the product description – Project deliverables - list of the summary level sub-products – Project objectives - criteria that must be met for the project to be considered successful • Supporting detail - facilitate Scope statement’s use by other project management processes. • Scope management plan - describes how project scope will be managed.
  • 47. Scope Management Plan A Project Scope Management Plan Should Consist A. Introduction B. Scope Management Approach C. Roles and Responsibilities D. Scope Definition E. Project Scope Statement F. Work Breakdown Structure G. Scope Verification H. Scope Control
  • 48. Scope Definition Process Scope definition involves subdividing the major project deliverables into smaller, more manageable components in order to: • Improve the accuracy of cost, time, and resource estimates. • Define a baseline for performance measurement and control. • Facilitate clear responsibility assignments.
  • 49. Inputs for Scope Definition Process • Scope statement. • Constraints. • Assumptions. • Other planning outputs. • Historical information.
  • 50. Tools and Techniques for Scope Definition Process • Work breakdown structure templates - A WBS from a previous project can often be used as a template for a new project. • Decomposition - involves subdividing the major project deliverables into smaller, more manageable components
  • 51. Scope Definition Process Outputs • Work breakdown structure - Dividing complex projects to simpler and manageable tasks is identified as Work Breakdown Structure (WBS).
  • 53. Work Breakdown Structure (WBS) Following are a few reasons for creating a WBS in a project: • Accurate and readable project organization. • Accurate assignment of responsibilities to the project team. • Indicates the project milestones and control points. • Helps to estimate the cost, time and risk. • Illustrate the project scope.
  • 54. Scope Verification Process Scope verification is the process of formalizing acceptance of the project scope by the stakeholders (sponsor, client, customer, etc.).
  • 55. Inputs for Scope Verification Process • Work results - deliverables have been fully or partially completed • Product documentation.
  • 56. Tools and Techniques for Scope Verification Process • Inspection - measuring, examining, and testing undertaken to determine whether results conform to requirements.
  • 57. Scope Verification Process Outputs • Formal acceptance - Documentation that the client or sponsor has accepted the product of the project or phase.
  • 58. Scope Change Control Process Scope change control is concerned with • Influencing the factors which create scope changes to ensure that changes are beneficial. • Determining that a scope change has occurred. • Managing the actual changes when and if they occur.
  • 59. Inputs for Scope Change Control Process • Work breakdown structure. • Performance reports. • Change requests. –An external event (a change in a government regulation). –An error or omission in defining the scope of the product (failure to include a required feature in the design). –An error or omission in defining the scope of the project –A value-adding change (project is able to reduce costs by taking advantage of technology that was not available when the scope was originally defined) • Scope management plan.
  • 60. Tools and Techniques for Scope Change Control Process • Scope change control system - defines the procedures which the project scope may be changed. • Performance measurement. • Additional planning.
  • 61. Scope Change Control Process Outputs • Scope changes. • Corrective action - anything done to bring expected future project performance into line with the project plan. • Lessons learned.
  • 62. Project Time Management Project Time Management includes the processes required to ensure timely completion of the project. Processes: Activity Definition Activity Sequencing Activity Duration Estimating Schedule Development Schedule Control
  • 63. Activity Definition Process Activity Definition identifying the specific activities that must be performed to produce the various project deliverables.
  • 64. Inputs for Activity Definition Process • Work breakdown structure. • Scope statement. • Historical information. • Constraints. • Assumptions.
  • 65. Tools and Techniques for Activity Definition Process • Decomposition - subdividing project elements into smaller, more manageable components in order to provide better management control. • Templates - An activity list from a previous project
  • 66. Activity Definition Process Output • Activity list. • Supporting detail - Supporting detail for the activity list including identified assumptions and constraints. • Work breakdown structure updates.
  • 67. Activity Sequencing Process Activity sequencing involves identifying and documenting interactivity dependencies.
  • 68. Inputs for Activity Sequencing Process • Activity list. • Mandatory dependencies – Ex: impossible to erect the superstructure until after the foundation has been built / a prototype must be built before it can be tested • Discretionary dependencies - dependencies are those which are defined by the project management team. • External dependencies - testing activity in a software project may be dependent on delivery of hardware from an external source • Constraints and Assumptions
  • 69. Dependencies Dependencies are the relationships among tasks which determine the order in which activities need to be performed. Finish to Start Start to Start Finish to Finish Start to Finish
  • 71. Tools and Techniques for Activity Sequencing Process • Precedence diagramming method (PDM) • Arrow diagramming method (ADM) • Conditional diagramming methods.
  • 72. Activity Sequencing Process Outputs • Project network diagram - diagram of project activities that shows the sequential relationships of activities using arrows and nodes. • Activity list updates.
  • 73. Activity Duration Estimating Process Activity Duration Estimating is estimating the number of work periods which will be needed to complete individual activities.
  • 74. Inputs for Activity Duration Estimating Process • Activity list. • Constraints and Assumptions • Resource requirements. • Resource capabilities. • Historical information - Project files, Commercial duration estimating databases, Project team knowledge
  • 75. Tools and Techniques for Activity Duration Estimating Process • Expert judgment. • Analogous estimating. • Simulation - calculating multiple durations with different sets of assumptions.
  • 76. Activity Duration Estimating Process Outputs • Activity duration estimates. • Basis of estimates - Assumptions made in developing the estimates • Activity list updates.
  • 77. Schedule Development Process Schedule Development analyzing activity sequences, activity durations, and resource requirements to create the project schedule.
  • 78. Inputs for Schedule Development Process • Project network diagram. • Activity duration estimates. • Resource requirements. • Resource pool description - Knowledge of what resources will be available at what times (shared resources availability maybe highly variable) • Calendars. • Constraints. – Imposed dates. – Key events or major milestones. • Assumptions. • Leads and lags.
  • 79. Tools and Techniques for Schedule Development Process • Mathematical analysis. –Critical Path Method (CPM) –Graphical Evaluation and Review Technique (GERT) –Program Evaluation and Review Technique (PERT) • Duration compression - shortening the project schedule without changing the project scope • Simulation. • Resource leveling heuristics. • Project management software.
  • 80. Critical Path Method Critical Path Method is a project management technique that lays out those activities that must be completed in a specific order to complete a project successfully on time.
  • 81. Critical Path Method The critical path is the sequence of activities with the longest duration
  • 82. Advantages of Critical Path Method • Tracking of critical activities that must be completed on time in order to complete the whole project on time. • Calculate the minimum amount of time it will take to complete the project. • Shows the earliest and latest dates each activity can start without impacting the overall project schedule.
  • 83. Float Determination Float is the amount of time an activity can slip before it causes your project to be delayed.
  • 85. ES / EF / LS / LF Calculation Early Start & Early Finish Calculation ES of the first activity = 1. EF of an activity = its ES + duration - one. Next Activity ES = Predecessor EF + 1 Late Start & Late Finish Calculation LF for the last activity in every path = last activity's EF in the critical path (14) LS = LF - duration + 1. Predecessor LF = Successor LS - 1
  • 86. Schedule Development Process Outputs • Project schedule - includes planned start and expected finish dates for each detail activity. –Network Diagrams –Gantt Charts • Supporting detail - identified assumptions and constraints • Schedule management plan - defines how changes to the schedule will be managed. • Resource requirement updates.
  • 87. Gantt Charts • A Gantt chart is a type of bar chart, developed by Henry Gantt in the 1910s, that showing activities displayed against time. • Gantt chart provides a graphical illustration of a schedule that helps to plan, coordinate, and track specific tasks in a project.
  • 88. A Sample Gantt Chart
  • 89. Gantt Charts It allows you to see at a glance: • What the various activities are. • When each activity begins and ends. • Activity dependencies. • Where activities overlap with other activities. • The start and end date of the whole project.
  • 90. Schedule Control Process Schedule Control process controlling changes to the project schedule. 1. Influencing the factors which create schedule changes to ensure that changes are beneficial 2. Determining that the schedule has changed 3. Managing the actual changes when and as they occur.
  • 91. Inputs for Schedule Control Process • Project schedule. • Performance reports - information on schedule performance such as which planned dates have been met and which have not. • Change requests. • Schedule management plan.
  • 92. Tools and Techniques for Schedule Control Process • Schedule change control system - defines the procedures by which the project schedule may be changed. • Performance measurement - assess the magnitude of any variations which occur. • Additional planning. • Project management software.
  • 93. Schedule Control Process Outputs • Schedule updates. • Corrective action. • Lessons learned.
  • 94. Project Cost Management Project Cost Management includes the processes required to ensure that the project is completed within the approved budget. Processes: Resource Planning Cost Estimating Cost Budgeting Cost Control
  • 95. Resource Planning Process Resource Planning determining what resources (people, equipment, materials) and what quantities of each should be used to perform project activities.
  • 96. Inputs for Resource Planning Process • Work breakdown structure. • Historical information. • Scope statement. • Resource pool description - Knowledge of what resources (people, equipment, material) are potentially available is necessary for resource planning. • Organizational policies.
  • 97. Tools and Techniques for Resource Planning Process • Expert judgment. • Alternatives identification.
  • 98. Resource Planning Process Outputs • Resource requirements.
  • 99. Cost Estimating Process Cost estimating involves developing an approximation (estimate) of the costs of the resources needed to complete project activities.
  • 100. Inputs for Cost Estimating Process • Work breakdown structure. • Resource requirements. • Resource rates - staff cost per hour, cost per cubic yard • Activity duration estimates. • Historical information - Project files, Commercial cost estimating databases, Project team knowledge
  • 101. Tools and Techniques for Cost Estimating Process • Analogous Estimating - uses the experience from previous projects and extrapolates that onto the current project. • Bottom Up Estimating - estimates of small activities are added up into subgroups and finally into the project total. • Top Down Estimating - A fixed budget is the broken down using the WBS to determine the number or of activities that can be achieved with the budget. • Parametric Estimating - use standardized parameters that define the costs of an activity or task for a specific rate or output.
  • 102. Cost Breakdown Structure Cost Breakdown Structure is a system of dividing a project into cost categories to provide more effective cost management
  • 103. Cost Estimating Process Outputs • Cost estimates - quantitative assessments of the likely costs of the resources required to complete project activities. • Supporting detail. – description of the scope of work estimated. – Documentation of the basis for the estimate – Documentation of any assumptions made. – An indication of the range of possible results, for example, $10,000 ± $1,000 • Cost management plan - how cost variances will be managed.
  • 104. Cost Budgeting Process Cost budgeting involves allocating the overall cost estimates to individual work items in order to establish a cost baseline for measuring project performance.
  • 105. Inputs for Cost Budgeting Process • Cost estimates. • Work breakdown structure. • Project schedule.
  • 106. Tools and Techniques for Cost Budgeting Process • Cost estimating tools and techniques.
  • 107. Cost Budgeting Process Outputs • Cost baseline - time-phased budget that will be used to measure and monitor cost performance on the project.
  • 108. Cost Control Process Cost control includes: • Monitoring cost performance to detect variances from plan. • Ensuring that all appropriate changes are recorded accurately in the cost baseline. • Preventing incorrect, inappropriate, or unauthorized changes from being included in the cost baseline. • Informing appropriate stakeholders of authorized changes.
  • 109. Inputs for Cost Control Process • Cost baseline. • Performance reports. • Change requests. • Cost management plan.
  • 110. Tools and Techniques for Cost Control Process • Cost change control system - defines the procedures which the cost baseline may be changed. • Performance measurement. • Additional planning. • Computerized tools - project management software and spreadsheets
  • 111. Cost Performance Analysis Cost Categories Benefit Categories Direct - A cost directly related to producing goods or performing a service Better - which products or activities will be better Indirect - A cost to a project that is not directly related to making a product Faster - how much faster they will be Opportunity - A benefit or profit that must be given up to acquire or achieve something else Cheaper - how much less they will cost
  • 112. Cost Control Process Outputs • Revised cost estimates - modifications to the cost information • Budget updates - changes to an approved cost baseline. • Corrective action. • Estimate at completion - forecast of total project costs based on project performance. • Lessons learned.
  • 113. Project Quality Management Project quality management is all of the processes and activities needed to determine and achieve project quality (meeting the needs of customers). Processes: Quality Planning Quality Assurance Quality Control
  • 114. Project Human Resource Management Project Human Resource Management includes the processes required to make the most effective use of the people involved with the project. Processes: Organizational Planning Staff Acquisition Team Development
  • 115. Organizational Planning Process Organizational planning involves identifying, documenting, and assigning project roles, responsibilities, and reporting relationships.
  • 116. Inputs for Organizational Planning Process • Project Interfaces – Organizational interfaces - formal and informal reporting relationships – Technical interfaces - relationships among different technical disciplines – Interpersonal interfaces - relationships among individuals on the project • Staffing Requirements - kinds of competencies and individuals needed and in what time frame • Constraints - factors that limit a project team’s options such as: – Organizational structure – Collective bargaining agreements – Preferences of the project management team – Expected staff assignments
  • 117. Tools and Techniques for Organizational Planning Process • Templates - Often prior projects role and responsibility definitions or reporting relationships can help expedite the process • Human Resource Practices - Knowledge of HR policies, guidelines, and procedures can help with organizational planning • Organizational Theory - Understanding organizational theory will better enable the PM to respond to project requirements • Stakeholder Analysis - Identification and analysis of needs of stakeholders will ensure that their needs will be met
  • 118. Organizational Planning Process Outputs • Role and responsibility assignments – A responsibility Assignment Matrix is often used to closely link assignments to the project scope definition • Staffing management Plan – describes when and how human resources will be brought onto and taken off of the project team • Organization chart – Any graphic display of project reporting relationships • Supporting detail - includes such detail as: – Organizational impact – Job descriptions – Training needs
  • 120. Staff Acquisition Process Staff acquisition involves getting the human resources needed (individuals or groups) assigned to and working on the project.
  • 121. Inputs for Staff Acquisition Process • Staffing management plan. • Staffing pool description - considering characteristics such as previous experience, personal interests, personal characteristics, availability, competencies and proficiency . • Recruitment practices.
  • 122. Tools and Techniques for Staff Acquisition Process • Negotiations - with responsible functional managers, with other project management teams • Pre-assignment - usually in the case of a competitive proposal and staff was promised, or for an internal service project • Procurement
  • 123. Staff Acquisition Process Outputs • Project staff assigned • Project team directory
  • 124. Team Development Process Team development includes both enhancing the ability of stakeholders to contribute as individuals as well as enhancing the ability of the team to function as a team.
  • 125. Inputs for Team Development Process • Project staff • Project plan • Staffing management plan • performance reports - provide feedback to the project team about performance against the project plan. • external feedback - periodical measure against the expectations of those outside the project.
  • 126. Tools and Techniques for Team Development Process • Team building activities • General management skills • Reward and recognition systems • Collocation • Training
  • 127. Team Development Process Outputs • Performance improvements - can come from many sources and affect many areas of project performance; for example: –Improvement in individual skills –Improvements in team behaviors –Improvements in either individual or team competencies • Input to performance appraisals
  • 128. Project Communication Management Communication Management involves generating, collecting and storing the project information. Processes: Communications Planning Information Distribution Performance Reporting Administrative Closure
  • 129. Communications Planning Process Communications planning involves determining the information and communications needs of the stakeholders: • Who needs what information. • When will they need it. • How will it be given to them.
  • 130. Inputs for Communications Planning Process • Communications requirements - Communications requirements are the sum of the information requirements of the project stakeholders. • Communications technology - The technologies or methods used to transfer information • Constraints - Constraints are factors that will limit the project management team’s options. • Assumptions - Assumptions are factors that, for planning purposes, will be considered to be true, real, or certain.
  • 131. Tools and Techniques for Communications Planning Process • Stakeholder analysis - The information needs of the various stakeholders should be analyzed.
  • 132. Communications Planning Process Outputs A communications management plan is a document which provides: • Which details and what methods will be used to gather and store information. • A distribution structure which information (status reports, data, schedule, technical documentation) will flow, and what methods(written reports, meetings) will be used. • A description of the information to be distributed. • Production schedules showing when each type of communication will be produced. • Methods for accessing information. • A method for updating and refining the communications management plan
  • 133. Information Distribution Process Information distribution involves making needed information available to project stakeholders in a timely manner.
  • 134. Inputs for Information Distribution Process • Work results. • Communications management plan. • Project plan.
  • 135. Tools and Techniques for Information Distribution Process • Communications skills. –Written and oral, listening and speaking. –Internal (within the project) and external (to the customer, the media, the public) –Formal (reports, briefings, etc.) and informal (memos, ad hoc conversations, etc.). –Vertical (up and down the organization) and horizontal (with peers) • Information retrieval systems –manual filing systems, databases, project management software, engineering drawings • Information distribution systems. –project meetings, hard copy document, databases, fax, electronic mail, voice mail, video conferencing
  • 136. Information Distribution Process Outputs • Project records - Project records may include correspondence, memos, reports, and documents describing the project.
  • 137. Performance Reporting Process Performance reporting involves collecting and disseminating performance information • Status reporting - describing where the project now stands. • Progress reporting - describing what the project team has accomplished. • Forecasting - predicting future project status and progress.
  • 138. Inputs for Performance Reporting Process • Project plan. • Work results. –which deliverables have been fully or partially completed, what costs have been incurred or committed • Other project records.
  • 139. Tools and Techniques for Performance Reporting Process • Performance reviews - Performance reviews are meetings held to assess project status or progress. • Variance analysis - Variance analysis involves comparing actual project results to planned or expected results. • Trend analysis - Trend analysis involves examining project results over time to determine if performance is improving or deteriorating. • Earned value analysis. • Information distribution tools and techniques.
  • 142. Performance Reporting Process Outputs • Performance reports • Change requests
  • 143. Administrative Closure Process • The project or phase, after either achieving its objectives or being terminated for other reasons, requires closure. • Administrative closure consists of verifying and documenting project results to formalize acceptance of the product of the project by the sponsor, client, or customer.
  • 144. Inputs for Administrative Closure Process • Performance measurement documentation. • Documentation of the product of the project.
  • 145. Tools and Techniques for Administrative Closure Process • Performance reporting tools and techniques.
  • 146. Administrative Closure Process Outputs • Project archives - A complete set of indexed project records • Formal acceptance - Documentation that the client or sponsor has accepted the product of the project (or phase) • Lessons learned.
  • 147. Project Risk Management Risk Management includes identifying, analyzing and responding to risk related to the project Processes: Risk Identification Risk Quantification Risk Response Development Risk Response Control
  • 148. Risk Identification Process Risk identification consists of determining which risks are likely to affect the project and documenting the characteristics of each.
  • 149. Inputs for Risk Identification Process • Product description - The nature of the product of the project will have a major effect on the risks identified. • Other planning outputs. – Work breakdown structure – Cost estimates and duration estimates – Staffing plan – Procurement management plan • Historical information.
  • 150. Tools and Techniques for Risk Identification Process • Checklists - Checklists are typically organized by source of risk. • Flowcharting. • Interviewing.
  • 151. Risk Identification Process Outputs • Sources of risk. – Changes in requirements. – Design errors, omissions, and misunderstandings. – Poorly defined or understood roles and responsibilities. – Poor estimates. – Insufficiently skilled staff. • Potential risk events - Potential risk events are discrete occurrences such as a natural disaster or the departure of a specific team member that may affect the project. • Risk symptoms - indirect manifestations of actual risk events. (poor morale may cause to delay) • Inputs to other processes.
  • 152. Risk Quantification Process Risk quantification involves evaluating risks and risk interactions to assess the probability to the happening of a risk.
  • 153. Inputs for Risk Quantification Process • Stakeholder risk tolerances. • Sources of risk. • Potential risk events. • Cost estimates. • Activity duration estimates.
  • 154. Tools and Techniques for Risk Quantification Process • Expected monetary value. – Risk event probability - an estimate of the probability that a given risk event will occur. – Risk event value - an estimate of the gain or loss that will be incurred if the risk event does occur. • Statistical sums. – used to calculate a range of total project costs from the cost estimates for individual work items. • Simulation. – representation or model of a system to analyze the behavior or performance of the system. • Decision trees. • Expert judgment.
  • 155. Risk Quantification Process Outputs • Opportunities to pursue, threats to respond to. • Opportunities to ignore, threats to accept.
  • 157. Risk Response Development Process Risk response development involves defining enhancement steps for opportunities and responses to threats. Responses Categories: Avoidance - eliminating a specific threat, usually by eliminating the cause. Mitigation - reducing the expected monetary value of a risk event by reducing the probability of occurrence Acceptance - accepting the consequences.
  • 158. Inputs for Risk Response Development Process • Opportunities to pursue, threats to respond to. • Opportunities to ignore, threats to accept.
  • 159. Tools and Techniques and Risk Response Development Process • Procurement - acquiring goods or services from outside the immediate project organization • Contingency planning - involves defining action steps to be taken if an identified risk event should occur • Alternative strategies - Risk events can often be prevented or avoided by changing the planned approach. • Insurance.
  • 160. Risk Response Development Process Outputs • Risk management plan - document the procedures that will be used to manage risk throughout the project. • Contingency plans - predefined action steps to be taken if an identified risk event should occur. • Reserves - provision in the project plan to mitigate cost and/or schedule risk. • Contractual agreements - insurance, services, and other items as appropriate in order to avoid or mitigate threats. • Inputs to other processes.
  • 161. Risk Response Control Process Risk response control involves executing the risk management plan in order to respond to risk events over the course of the project.
  • 162. Inputs for Risk Response Control Process • Risk management plan. • Actual risk events - Some of the identified risk events will occur • Additional risk identification.
  • 163. Tools and Techniques for Risk Response Control Process • Workarounds. • Additional risk response development - If the risk event was not anticipated, or the effect is greater than expected
  • 164. Risk Response Control Process Outputs • Corrective action - implementing contingency plans or workarounds • Updates to risk management plan.
  • 165. Project Procurement Management Procurement Management involves acquiring or procuring goods and services for a project from outside in performing organization Processes: Procurement Planning Solicitation Planning Solicitation Source Selection Contract Administration Contract Close-out
  • 166. Procurement Planning Process • Procurement planning is the process of identifying which project needs can be best met by procuring products or services outside the project organization. • It involves consideration of whether to procure, how to procure, what to procure, how much to procure, and when to procure it.
  • 167. Inputs for Procurement Planning Process • Scope statement - describes the current project boundaries. • Product description - The description of the product of the project • Procurement resources - resources and the expertise to support project procurement activities. • Market conditions - what products and services are available in the marketplace, from whom, and under what terms and conditions • Constraints - Constraints are factors that limit the buyer’s options. • Other planning outputs - cost and schedule estimates, quality management plans, cash flow projections, the work breakdown structure, identified risks, and planned staffing. • Assumptions.
  • 168. Tools and Techniques for Procurement Planning Process • Make-or-buy analysis - determine whether a particular product can be produced cost effectively by the performing organization. • Expert judgment. – Other units within the performing organization. – Consultants. – Professional and technical associations. – Industry groups. • Contract type selection. – Fixed price contracts. – Cost reimbursable contracts - allowable and reasonable costs incurred by a contractor are reimbursed (give money back). – Unit price contracts.
  • 169. Procurement Planning Process Outputs • Procurement management plan. – What types of contracts will be used? – If independent estimates will be needed as evaluation criteria, who will prepare them and when? – If the performing organization has a procurement department, what actions can the project management team take on its own? – If standardized procurement documents are needed, where can they be found? – How will multiple providers be managed? – How will procurement be coordinated with other project aspects such as scheduling and performance reporting? • Statement(s) of work - Describes the procurement item in sufficient detail to allow sellers to determine if they are capable of providing the item.
  • 170. Solicitation Planning Process Solicitation planning involves preparing the documents needed to support solicitation (obtaining information from prospective sellers)
  • 171. Inputs for Solicitation Planning Process • Procurement management plan. • Statement(s) of work. • Other planning outputs. (project schedule)
  • 172. Tools and Techniques for Solicitation Planning Process • Standard forms - standard contracts, standard descriptions of procurement items, standardized versions of all or part of the needed bid documents • Expert judgment.
  • 173. Solicitation Planning Process Outputs • Procurement documents. – RFP: A request for proposal – RFI: A request for information – RFQ: A request for quotation – Solicitations: Invitations of bids, requests for quotations and proposals. – Contracts: final signed agreements between clients and suppliers. – Amendments/Modifications: any changes in solicitations, offers and contracts. • Evaluation criteria - used to rate or score proposals. – “the proposed project manager must be a certified Project Management Professional” – “the proposed project manager must have documented, previous experience with similar projects” • Statement of work updates.
  • 174. Solicitation Process Solicitation involves obtaining information (bids and proposals) from prospective sellers on how project needs can be met.
  • 175. Inputs for Solicitation Process • Procurement documents. • Qualified seller lists.
  • 176. Tools and Techniques for Solicitation Process • Bidder (contractor, vendor) conferences - meetings with prospective sellers prior to preparation of a proposal. • Advertising.
  • 177. Solicitation Process Outputs • Proposals – seller prepared documents that describe the seller’s ability and willingness to provide the requested product.
  • 178. Source Selection Process Source selection involves the receipt of bids or proposals and the application of the evaluation criteria to select a provider.
  • 179. Inputs for Source Selection Process • Proposals. • Evaluation criteria. • Organizational policies.
  • 180. Tools and Techniques for Source Selection Process • Contract negotiation - clarification and mutual agreement on the structure and requirements of the contract prior to the signing of the contract. • Weighting system - quantifying qualitative data in order to minimize the effect of personal prejudice on source selection. • Screening system - establishing minimum requirements of performance for the evaluation criteria.(seller might be required to propose a PM who is a PMP before the remainder of their proposal would be considered.) • Independent estimates - checking proposed pricing against procuring organization’s own estimates.
  • 181. Source Selection Process Outputs • Contract - Mutually binding agreement which obligates the seller to provide the specified product and obligates the buyer to pay for it.
  • 182. Contract Administration Process Contract administration is the process of ensuring that the seller’s performance meets contractual requirements.
  • 183. Inputs for Contract Administration Process • Contract. • Work results - The seller’s work results which deliverables have been completed and which have not, to what extent are quality standards being met, what costs have been incurred or committed, etc. • Change requests - include modifications to the terms of the contract or to the description of the product or service to be provided. • Seller invoices - The seller must submit invoices from time to time to request payment for work performed.
  • 184. Tool and Techniques for Contract Administration Process • Contract change control system - paperwork, tracking systems, dispute resolution procedures, and approval levels necessary for authorizing changes. • Performance reporting - provides management with information about how effectively the seller is achieving the contractual objectives. • Payment system - Payments to the seller are usually handled by the accounts payable system of the performing organization.
  • 185. Contract Administration Process Outputs • Correspondence - Contract terms and conditions often require written documentation of certain aspects of buyer/seller communications, such as warnings of unsatisfactory performance and contract changes or clarifications. • Contract changes. • Payment requests.
  • 186. Contract Close-out Process • It involves both product verification (Was all work completed correctly and satisfactorily?) and administrative close-out (updating of records to reflect final results and archiving of such information for future use) • Contract close-out is similar to administrative closure
  • 187. Inputs for Contract Close-out Process • Contract documentation. –Schedules –Requested and approved contract changes, –Seller-developed technical documentation, seller performance reports, –Financial documents such as invoices and payment records
  • 188. Tools and Techniques for Contract Close-out Process • Procurement audits. –structured review of the procurement process from procurement planning through contract administration to identify successes and failures.
  • 189. Contract Close-out Process Outputs • Contract file - A complete set of indexed records should be prepared for inclusion with the final project records. • Formal acceptance and closure - formal written notice that the contract has been completed.

Editor's Notes

  1. shows a classic functional organization where each employee has one clear superior. Groupings occur from at top level down to the bottom level (e.g. accounting, engineering, marketing). Project work of each group is typically performed independently of other groups.
  2. Characteristics of a projectized organization: team members are often colocated most of the organization’s resources involved in project work project managers have a great deal of independence and authority virtual collaboration techniques often used to accomplish benefits of colocated teams organizational units sometimes sometimes called departments team resources can either report directly to the project manager or provide support services to the various projects
  3. Weak matrix organizations: similar to functional organization project manager: functions as expeditor or coordinator project expeditor: works as staff assistant and communications coordinator but does not make or enforce decisions project coordinator: makes some decisions, has some authority, and reports to a higher-level manager
  4. Balanced matrix organization: recognizes the need for a project manager neither provides the project manager with full authority over the project nor over project funding
  5. Strong matrix organizations: similar to projectized organization have full-time project managers with considerable authority full-time project administrative staff
  6. Finish to Start Start to Start Finish to Finish Start to Finish http://www.projectinsight.net/project-management-basics/task-dependencies
  7. http://www.project-management-skills.com/critical-path-method.html
  8. Using the critical path diagram from the previous section, Activities 2, 3, and 4 are on the critical path so they have a float of zero. The next longest path is Activities 1, 3, and 4. Since Activities 3 and 4 are also on the critical path, their float will remain as zero. For any remaining activities, in this case Activity 1, the float will be the duration of the critical path minus the duration of this path. 14 - 12 = 2. So Activity 1 has a float of 2. The next longest path is Activities 2 and 5. Activity 2 is on the critical path so it will have a float of zero. Activity 5 has a float of 14 - 9, which is 5. So as long as Activity 5 doesn't slip more than 5 days, it won't cause a delay to the project.
  9. Early Start & Early Finish Calculation ES of the first activity is one. EF of an activity = its ES + duration - one. Next Activity ES = previous activity's EF + 1 Late Start & Late Finish Calculation LF for the last activity in every path = last activity's EF in the critical path (14) The LS = LF – duration + 1. Predecessor LF = Successor LS - 1
  10. Cost Performance Analysis is assessing the value of a project by comparing its costs to the value of benefits it produces. Cost Performance Analysis is the ways of answering the following questions. "Is this worth doing?" "How will we know whether it was worth it when we're done?“
  11. direct cost A cost that can be directly related to producing specific goods or performing a specific service. For example, the wages of an employee engaged in producing a product can be attributed directly to the cost of manufacturing that product. Certain other costs such as depreciation and administrative expenses are more difficult to assign and are not considered direct costs Opportunity Cost 1. The opportunity cost of going to college is the money you would have earned if you worked instead. On the one hand, you lose four years of salary while getting your degree; on the other hand, you hope to earn more during your career, thanks to your education, to offset the lost wages. Indirect Cost For example, market research is an indirect cost because, while it may assist in making decisions about production, it does not affect the production of any one unit. Another common indirect cost is the purchase of office supplies. Indirect costs are necessary to running a business. (such as for advertising, computing, maintenance, security, supervision)
  12. Procurement resources. If the performing organization does not have a formal con- tracting group, the project team will have to supply both the resources and the ex- pertise to support project procurement activities.