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Project
Management
Professional
  Ahmad H. Maharma
       PMPÂŽ
Project Management
  1. What is Project Management
                j        g
Turn your phones off/ silent
Who wants to be a project
       manager?
Why?
Who wants to work with a
   project manager?
When? Where? How?
Value of PMP Certification
1. One of few certifications for Project Management 
          Adopted by IEEE standards – 1490 
          Run by PMI, non‐profit body, you can participate in PMI activities as  a 
          Run by PMI non‐profit body you can participate in PMI activities as a
          member 

2. Proof of Project Management expertise 
          Not easy to get PMP certified
          Increased Confidence 

3. Better Salary
3. Better Salary
          PMP credential holders earn an average salary of about 100k
          15.6 percent higher than non‐credentialed colleagues with same 
          experience 

4. More Job Opportunities
          Desired requirement for a PM job – gets an edge
         Increasingly essential requirement for a PMO based organization 
                  gy              q                           g

5. Greater respect from management and colleagues
Project Manager Positions

Project Administrator / Coordinator
Assistant Project Manager
Project Manager / Program Manager
Executive Program Manager
Director - PMO
V.P. Program Development
President - CEO




                                      9
Project Manager Skills
Contemporary Project Management requires the following skills:

 • Common sense and an ability to think logically.

 • An ability to work under pressure.

 • Good time management and organizational abilities.

 • Excellent diplomatic and negotiation skills




                                                             10
PMP Exam - Eligibility
3 years / 4500 hours of PM Experience (non-overlapping) with
          a Bachelors or higher education
          5 years / 7500 hours, with high school or equivalent

35 hours of PM Education, e.g.
        Formal college education in Project Management
        Company-sponsored Programs
        Courses offered by training companies or consultants
        Courses by distance education training with end of course
        assessment
        Doesn’t count Self Study PMI Chapter meetings
PMP Exam Structure

PMP Exam Structure Total Questions – 200 (175 + 25
unaccounted)

Total Time – 4 hours (240 mins)

Passing % - 61% (actual 68 5%)
                        68.5%)

Format - multiple choice, one answer

About 80 seconds for each Question Real test of
Patience, Experience and Knowledge
        , p                      g
Question Topics
1.
1    Initiating 11%
2.   Planning 23%
3.   Executing 27%
               g
4.   Monitoring and Controlling 21%
5.   Closing 9%
6.   Professional and Social Responsibility
       9%




                                              13
A walk through the course outline
The textbook


      The PMBOK® Guide — Fourth
      Edition is the preeminent global
      standard for project
      management. Like previous
      editions, it represents generally
      recognized good practices in the
      profession while reflecting
      project management’s
         j t               t’
      continually evolving knowledge
Program Outline




                  16
The 5 Project Management Process
              Groups




Each process is described by (ITTO’s):

Inputs
I   t
Tools & Techniques                       17
Outputs
The 9 Knowledge Areas
       The 9 Knowledge Areas
Project Integration Management
   j        g           g
Project Scope Management
Project Time Management
Project Time Management
Project Cost Management
Project Quality Management
Project Quality Management
Project Human Resource Management
Project Communications Management
Project Communications Management
Project Risk Management
Project Procurement Management
Project Procurement Management
                                    18
7. Project Management Framework
        Time          Cost            Scope
     Management    Management      Management



       Quality     Integration    HR Management
     Management   Management



        Risk      Communication    Procurement
     Management
     M   g    t    Management
                   M   g     t     Management
                                   M    g    t




        The PMBOK’s 9 Knowledge areas
Time            Cost            Scope
Management      Management      Management



  Quality        Integration   HR Management
Management      Management



   Risk        Communication    Procurement
Management
M   g    t      Management
                M   g     t     Management
                                M    g    t




             Time Management
Time            Cost            Scope
Management      Management      Management



  Quality        Integration   HR Management
Management      Management



   Risk        Communication    Procurement
Management
M   g    t      Management
                M   g     t     Management
                                M    g    t




             Cost management
Time             Cost            Scope
Management       Management      Management



  Quality        Integration    HR Management
Management      Management



   Risk         Communication    Procurement
Management
M   g    t       Management
                 M   g     t     Management
                                 M    g    t




             Scope Management
Time          Cost            Scope
Management    Management      Management



  Quality     Integration    HR Management
Management   Management



   Risk      Communication    Procurement
Management
M   g    t    Management
              M   g     t     Management
                              M    g    t




         Quality Management
Time          Cost            Scope
         Management    Management      Management



           Quality
           Q lit       Integration
                       I       i      HR Management
         Management   Management



            Risk      Communication    Procurement
         Management    Management      Management




The next four knowledge areas are Facilitating Processes
Time           Cost            Scope
Management     Management      Management



  Quality       Integration   HR Management
Management     Management



   Risk       Communication    Procurement
Management
M   g    t     Management
               M   g     t     Management
                               M    g    t




             HR Management
Time            Cost            Scope
Management      Management      Management



  Quality       Integration    HR Management
Management     Management



   Risk        Communication    Procurement
Management
M   g    t      Management
                M   g     t     Management
                                M    g    t




             Risk Management
Time          Cost            Scope
Management    Management      Management



  Quality     Integration    HR Management
Management   Management



   Risk      Communication    Procurement
Management
M   g    t    Management
              M   g     t     Management
                              M    g    t




    Communications Management
Time          Cost            Scope
Management    Management      Management



  Quality     Integration    HR Management
Management   Management



   Risk      Communication    Procurement
Management
M   g    t    Management
              M   g     t     Management
                              M    g    t




      Procurement Management
Time           Cost            Scope
    Management     Management      Management



      Quality      Integration    HR Management
    Management    Management



       Risk       Communication    Procurement
    Management
    M   g    t     Management
                   M   g     t     Management
                                   M    g    t




Integration Management – pulling it all together
What if it’s not Integrated?
          it s
                Time                          Scope
                                              S
             Management         Cost       Management
                             Management


                           Integration
                          Management
  Quality
Management                                HR Management


                                          Procurement
                    Communication         Management
                     Management

      Risk
   Management
1. Project Integration
                 Management
effective integration of the processes required t
 ff ti i t       ti    f th                i d to
accomplish project objectives
processes include
   1.   project charter development
   2.   project management plan development
   3.   project execution
   4.   monitoring and control of project work
   5.
   5    Close project




                                                    31
2. Project Scope
                  Management
defines and controls what i and i not i l d d i th
d fi      d    t l h t is d is t included in the
project
processes include
   1.   scope planning
   2.   scope definition
   3.   creation of a Work Breakdown Schedule
   4.   scope verification
   5.
   5    scope control




                                                     32
3. Project Time
                   Management
includes processes required for the timely completion of
a project
p
processes include
   1.   defining activities
   2.   sequencing activities
   3.
   3    estimating resource activities
          ti ti                  ti iti
   4.   estimating duration of activities
   5.   developing the project schedule
   6.   controlling the project schedule



                                                       33
4. Project Cost Management
planning, estimating, budgeting and controlling costs to
ensure the project can be completed within the approved
budget
processes include
   1.   cost estimating
   2.            g
        cost budgetingg
   3.   cost control




                                                       34
5. Project Quality
                 Management
all activities th t d t
 ll ti iti that determine quality policies, objectives
                          i      lit    li i     bj ti
and responsibilities for the project to satisfy the needs for
which it was undertaken
processes include
   1.   quality planning
   2.   performing quality assurance
   3.   performing quality control




                                                           35
6. Project Human Resource
               Management
processes that organize and manage the project team
processes include:
   1.   human resource planning
   2.   acquiring the project team
   3.
   3    developing the project team
   4.   managing the project team




                                                      36
7. Project Communications
               Management
activities to ensure project information is timely and
   ti iti t             j ti f      ti i ti l        d
appropriately generated, collected, distributed, stored,
retrieved and disposed of
                  p
processes include
   1.   communications planning
   2.   information distribution
   3.   performance reporting
   4.
   4    managing stakeholders




                                                           37
8. Project Risk Management
•processes to increase the p
 p                          probability and impact of p
                                      y       p       positive
events and decrease the probability and impact of negative
events
•updated throughout the project
•processes include
    1. risk management planning
    2. risk identification
    3. qualitative risk analysis
    4.
    4 quantitative risk analysis
    5. risk response planning
    6. risk monitoring and control
                       g

                                                                 38
9. Project Procurement
              Management
•processes to purchase/acquire the products services or results
                                   products,
needed to perform the project work
•includes contract management and change control processes to
administer contracts or purchase orders
•processes include:
    1.
    1 planning purchases and acquisitions
    2. contract planning
    3. requesting seller responses
    4. selecting sellers
    5. contract administration
    6.
    6 contract closure
                                                             39
PM Knowledge Areas & Process Groups
PM Process         Initiating Process        Planning Process Group            Executing Process           Monitoring & Controlling           Closing
Groups /           Group                                                       Group                       Process Group                      Process
Knowledge                                                                                                                                     Group
Area Processes
Project            Develop Project Charter   Develop Project Management        Direct and Manage Project   Monitor and Control Project Work   Close Project
Management                                   Plan                              Execution                   Integrated Change Control
Integration

Project Scope                                Collect requirements                                          Verify Scope
Management                                   Define Scope                                                  Control Scope
                                             Create WBS

Project Time                                 Define Activity
                                                           y                                               Schedule Control
Management                                   Sequence Activity
                                             Estimating Resource
                                             Estimating Duration
                                             Develop Schedule

Project Cost                                 Estimating Cost                                               Control Cost
Management                                   Budgeting Cost

Project Quality                              Quality Planning                  Perform Quality Assurance   Perform Quality Control
Management

Project HR                                   Human Resources Planning          Acquire Project Team
Management                                                                     Develop Project Team
                                                                               Manage Project Team


Project
P j t              Identify Stakeholders
                   Id tif St k h ld          Plan Communications
                                             Pl C       i ti                   Distribute Information
                                                                               Di t ib t I f     ti        Performance Reporting
                                                                                                           P f         R    ti
Communications                                                                 Manage stakeholders
Management                                                                     expectations

Project Risk                                 Plan Risk Management                                          Risk Monitoring and Control
Management                                   Risk Identification
                                             Qualitative / Quantitative Risk
                                             Analysis
                                             Risk R
                                             Ri k Response Planning
                                                               Pl   i

Project                                      Plan procurement                  Conduct procurement         Administer Contract                Close
Procurement                                                                                                                                   procurement
Management
We Got People


            41
The Four Project Dimensions

                People

               Process

               Product

              Technology

                         42
Project Phases

All projects are divided into phases

All phases together are known as the Project Life Cycle

Each phase is marked by completion of Deliverables




                                             43
Why Do Projects Succeed?

–   Executive support
–   User involvement
–   Experienced project manager
–   Clear business objectives
–   Minimized scope
–   Standard software infrastructure
–   Firm basic requirements
–   Formal methodology
–   Reliable estimates




                                       44
What are Projects?



                 45
Introduction
 What is PMBOK Guide?
      PMBOK Guide is a recognized standard for the
      project management profession.

 What is a standard?
      A standard is a formal document that describes
      established norms, methods, processes, and practices.

  How did it evolve?
        The knowledge contained in this standard evolved from the
recognized good practices of project management practitioners who
contributed to the development of this standard.
Introduction
The
Th PMBOK G id provides g id li
           Guide      id guidelines f managing
                                    for   gi g
    individual projects.

The PMBOK Guide
     defines project management and related
             p j          g
     concepts, and
     describes the project management life cycle and
     the related processes
1.2 What is a project?
Definition
       A project is a temporary endeavor
       undertaken to create a unique product, service, or result.

  Temporary endeavor with a definite beginning and end.

 The end is reached when
      the project’s objectives have been achieved or
      when the project is terminated because its objectives
      will not or cannot be met or
                            met,
      when the need for the project no longer exists.
1.2 What is a project?
                           p j
Definition – Misconceptions:
  Temporary does not necessarily mean short in duration.
  Temporary does not generally apply to out put of the project (the product,
service, or result created by the p j ); most p j
       ,                    y     project);     projects are undertaken to
create a lasting outcome. [and lasting impact.]

Definition: “create”:
              create :
 – A product that can be either a component of another item or an end item
    in itself,
 – A capability to perform a service (e g a business function that supports
                                     (e.g.,
    production or distribution), or
 – A result such as an outcome or document (e.g., a research project that
    develops knowledge that can be used to determine whether a trend is
    present or a new process will benefit society).
1.2 What is a project?
                         p j

Definition “unique”
D fi iti – “ i      ”
       Every project creates a unique product, service, or result.

      Although repetitive elements may be present in some
project deliverables, this repetition does not change the
fundamental uniqueness of the project work.

 An g i g
 A ongoing work effort i g
                 k ff t is generally a repetitive process
                                  ll        titi
 because it follows an organization’s existing procedures.
1.2 What is a project?
Examples of Projects
      p         j
Examples of projects include, but are not limited to:
  Developing a new product or service,
  Effecting a change in the structure, staffing, or style of an
organization,
  developing or acquiring a new or modified information system
                                                            system,
  Constructing a building or infrastructure, or
  Implementing a new business process or procedure.
1.2 What is a project?
Project Exist in All Organizations
      - Public Sector Organization
      - Business Organization
      - Non Governmental Organizations etc

Why?
  Because organizations are open systems. They have to
                                  systems
  respond to both internal and external changes
  To meet their development agenda
  To satisfy customers
  To survive
  To solve problems and grab opportunities
1.3 What is project management?
            p j         g

What is Project Management?
Project management is the
      application of
             knowledge,
             skills,
             tools, and
             techniques
      to project activities
      to meet the project requirements.
1.3 What is project management?
How is project Management accomplished?
        Project management is accomplished through the
        appropriate application and integration
        of the 42 logically grouped project management processes.

       The 42 project management processes are logically grouped in to
       five “Process Groups”.
                         p

       These Process Groups are:
            Initiating,
            Initiating
            Planning,
            Executing,
            Monitoring and Controlling, and
            Closing.
1.3 What is project management?
What does a project typically include?
            p j      yp     y
 Identifying requirements

  Addressing the various needs, concerns, & expectations of
stakeholders as the project is planned & carried out,

  Balancing the competing project constraints including, but not
limited to:
                 Scope,
                 Quality,
                 Schedule,
                 Budget,
                 Resources, and
                 R            d
                 Risk.
1.3 What is project management?
What is interdependency of constraints?
        The relationship among these factors [the constraints] is
such that if any one factor changes, at least one other factor is
likely to be affected.

Example:
       For example, if the schedule is shortened, often the
                 p ,                             ,
budget needs to be increased to add additional resources to
complete the same amount of work in less time. If a budget
increase is not possible, the scope or quality may be reduced to
                possible
deliver a product in less time for the same budget.
1.3 What is project management?
Constraints – Key points
  Project stakeholders may have differing ideas as to which
factors are the most important, creating an even greater
challenge.
challenge

   Changing the p j
       g g      project requirements may create additional
                          q            y
risks.

  The project team must b able to assess the situation and
   h                    be bl              h              d
balance the demands in order to deliver a successful project.
1.3 What is project management?
Because of the potential for change, the project management plan is iterative
and goes through progressive elaboration throughout the project’s life cycle
                                                                       cycle.

What is iteration?

What is progressive elaboration?
        Progressive elaboration involves
           g
        continuously improving and detailing a plan
        as more-detailed and specific information and more accurate
estimates become available
                   available.

        Progressive elaboration allows a project management team to manage
to a greater level of detail as the project evolves
                                            evolves.
1.4 Relationships B/W Project,
                 p         j ,
    Program, & Portfolio Mgt.

Broader Context of Project Management
      In mature project management organizations,
      p j
      project management exists in a broader context
                   g
      governed by
      program management and portfolio management.
1.4
   1 4 Relationships B/W Project,
                         Project
     Program, & Portfolio Mgt.
         g    ,             g
The Figure focuses/shows that,
      g                        ,
      organizational strategies and priorities are linked, and
      there is relationships between portfolios and programs,
and
      there is relationship between programs and individual
projects.
projects
1.4 Relationships B/W Project,
     Program, & Portfolio Mgt.
Key points:
  Organizational planning impacts the projects by means of
      project prioritization based on risk, funding, and the
organization s
organization’s strategic plan.
                         plan

   Organizational planning can direct the funding and support for
     g            p      g                       g       pp
the component projects on the basis of risk categories, specific
lines of business, or general types of projects, such as
infrastructure and internal process improvement
                                     improvement.
1.4 Relationships B/W Project,
                  p         j ,
     Program, & Portfolio Mgt.
1.4.1 Portfolio Management
What is ‘portfolio’?
       A portfolio refers to a
       collection of projects or programs and other work
       that are grouped together to
       facilitate effective management of that work
       to meet strategic business objectives.
                       g            j

  The projects or programs of the portfolio
       may not necessarily be interdependent or directly
related.
1.4 Relationships B/W Project,
     Program, & Portfolio Mgt.
     P            P f li M
1.4.1 Portfolio Management
                    g
  The projects or programs of the portfolio
        may not necessarily be interdependent or directly related.

         For example, an infrastructure firm that has the
         strategic objective of “maximizing the return on its investments” may
put together a portfolio th t i l d
   t t g th         tf li that includes
         a mix of projects in oil and gas, power, water, roads, rail, and
airports.

       From this mix, the firm may choose to manage related projects as one
program. All of the power projects may be grouped together as a power
program. Similarly, all of the water projects may be grouped together as a
water program.
1.4 Relationships B/W Project,
     Program, & Portfolio Mgt
     P g          P tf li Mgt.
1.4.1 Portfolio Management

What is portfolio management?
It refers to the centralized management of one or more portfolios.

What is portfolio management involve?
It includes identifying, p
                   y g, prioritizing, authorizing, managing, and controlling
                                   g,           g,     g g,                g
projects, programs, and other related work, to achieve specific strategic
business objectives.

What does portfolio management focus on?
It focuses on ensuring that projects and programs are reviewed to prioritize
resource allocation and that the management of the portfolio is consistent
          allocation,
with and aligned to organizational strategies.
1.4 Relationships B/W Project,
     Program, & Portfolio Mgt.
1.4.2
1 4 2 Program Management

Definition of ‘Program’
                  g
       A program is defined as a group of related projects
       managed in a coordinated way to obtain benefits and
control not available from managing them individually.

Key Points:
  Programs may include elements of related work outside the
scope of the discrete p j
   p                  projects in the program.
                                      p g
   A project may or may not be part of a program but a program
will always have projects.
1.4 Relationships B/W Project,
     Program, & Portfolio Mgt
     P g          P tf li Mgt.
1.4.2 Program Management

Definition of ‘Program management’
         Program management is defined as the
         centralized coordinated management of a program to
         achieve the program’s strategic objectives and benefits.

Key Point:
  Projects within a program are related through the
        common outcome or collective capability.

  If t e relationship betwee p ojects is o ly t at o a s a ed cl e t, selle ,
     the elat o s p between projects s only that of shared client, seller,
technology, or resource, the effort should be managed as a portfolio of
projects rather than as a program.
1.4 Relationships B/W Project,
     Program, & Portfolio Mgt.
     P            P f li M
1.4.2 Program Management
         g        g

Focus of Program Management:
        It focuses on the project interdependencies and
        helps to determine the optimal approach for managing them.


       Actions related to these interdependencies may include:
        Resolving resource constraints and/or conflicts that affect multiple
        p j
        projects within the program;
                             p g     ;
        Aligning organizational/strategic direction that affects project and
        program goals and objectives; and
        Resolving issues and change management within a shared
        governance structure.
1.4 Relationships B/W Project,
     Program, & Portfolio Mgt.
1.4.2 Program Management

An Example of a Program :
      An example of a program would be a
            new communications satellite system
                         i ti        t llit    t
      with projects for
            design of the satellite and of the ground stations
                                                      stations,
            construction of each,
            integration of the system, and
                g               y      ,
            launch of the satellite.
1.4 Relationships B/W Project,
     Program, & Portfolio Mgt
     P g          P tf li Mgt.
Difference in approaches
       Projects, programs, and portfolios have different
approaches.

      Table 1-1
      shows the
      comparison of project, program, and portfolio views
      across several domains including
                                     g
                   change,
                   leadership,
                   management, and
                   others.
Project Management Competencies
   j        g         p




                         72
1.4 Relationships B/W Project,
     Program, & Portfolio Mgt
     P g          P tf li Mgt.
1.4.3 Projects and Strategic Planning

        Projects are often utilized as a means of achieving an organization’s
strategic plan
          plan.

        Projects are typically authorized as a result of
        one or more of the following strategic considerations:
            Market demand
            Strategic opportunity/business need
                  g    pp        y
            Customer request
            Technological advance
            Legal requirements
1.4 Relationships B/W Project,
     Program,
     Program & Portfolio Mgt
                          Mgt.
1.4.3 Projects and Strategic Planning
Key Points
  Projects, within programs or portfolios, are a means of achieving
organizational goals and objectives, often in the context of a strategic plan.
  g            g           j                                         g p

  Although a group of projects within a program can have discrete benefits,
they can also contribute to the benefits of the program, to the objectives of
the portfolio, and to the strategic plan of the organization.

  Organizations manage portfolios based on their strategic plan which may
                                                             plan,
dictate a hierarchy to the portfolio, program, or projects involved.
1.4 Relationships B/W Project,
     Program, & Portfolio Mgt.
1.4.3 Projects and Strategic Planning
Key Points
  One goal of portfolio management is to maximize the value of the portfolio
by the careful examination of its components the constituent programs
                                  components—the              programs,
projects, and other related work.
        Those components contributing the least to the portfolio’s strategic
objectives may be excluded. In this way an organization’s strategic plan
                   excluded         way,   organization s
becomes the primary factor guiding investments in projects.

  At the same ti
     th        time, projects provide f db k t programs and portfolios b
                         j t       id feedback to              d     tf li by
means of status reports and change requests that may impact other projects,
programs, or portfolios. The needs of the projects, including the resource
needs,
needs are rolled up and communicated back to the portfolio level which in
                                                              level,
turn sets the direction for organizational planning.
1.4 Relationships B/W Project,
     Program, & Portfolio Mgt.
     P            P f li M
1.4.4 Project Management Office (PMO)
Definition:
   f
         PMO is an organizational body or entity
         assigned various responsibilities related to the
         centralized and coordinated management of those projects under its
domain.

Responsibility of PMO:
        The responsibilities of a PMO can range from providing project
management support functions to actually being responsible for the direct
management of a project.
Key Point:
        The projects supported or administered by the PMO may not be
related, other than by being managed together.
1.4 Relationships B/W Project,
     Program, & Portfolio Mgt.
1.4.4 Project Management Office
Key Points:
  The specific form, function, and structure of a PMO is dependent upon the
needs of the organization that it supports.

  A PMO may be delegated the authority to act as an integral stakeholder and
a key decision maker during the beginning of each project, to make
recommendations, or to terminate projects or take other actions as required
to keep business objectives consistent.
      p            j

  In addition, the PMO may be involved in the selection, management, and
deployment of shared or dedicated project resources
                                           resources.
1.4 Relationships B/W Project,
     Program, & Portfolio Mgt.
1.4.4 Project M
144P j        Management Offi
                           Office
Primary Function:
To support project managers in a variety of ways which may include, but are
not limited to:
  Managing shared resources across all projects administered by PMO
  Identifying & developing p j
         y g          p g project mgt. methodology, best p
                                    g             gy,      practices, &
                                                                    ,
  standards
  Coaching, mentoring, training, and oversight;
  Monitoring compliance with project management standards, policies
                                                   standards policies,
  procedures, and templates via project audits;
  Developing and managing project policies, procedures, templates, and
  other shared documentation , and
  Coordinating communication across projects.
1.4 Relationships B/W Project,
                 p         j ,
    Program, & Portfolio Mgt.
1.4.4 Project Management Office

PMO and Project Managers Pursue Different Objectives:
     Project managers and PMOs pursue different objectives
     and, as such, are d i
        d       h      driven b diff
                              by different requirements.
                                         t     i     t

      All of these efforts, however, are aligned with the
                   efforts however
      strategic needs of the organization.
1.4 Relationships B/W Project,
     Program, & Portfolio Mgt.
     P            P f li M
1.4.4 Project Management Office

PMO and Project Managers have Different Roles:
  The
  Th project manager f
          j t            focuses on th specified project objectives, while th
                                      the    ifi d   j t bj ti        hil the
PMO manages major program scope changes which may be seen as potential
opportunities to better achieve
        business objectives.
        b i         bj ti
  The project manager controls the assigned project resources to best meet
project objectives while the PMO optimizes the use of shared organizational
resources across all projects.
                    ll   j t
  The project manager manages the constraints (scope, schedule, cost, and
quality, etc.) of the individual projects while the PMO manages the
methodologies, standards, overall risk/opportunity, and i t d
   th d l gi      t d d            ll i k/      t it    d interdependencies
                                                                    d    i
among projects at the enterprise level.
1.5 Project Management and
       Operations Management
Definition:
D fi i i
         Operations are an organizational function performing the ongoing
execution of activities that produce the same product or provide a repetitive
service.
    i

Examples:
        Production operations, manufacturing operations, and accounting
operations, etc.

Key Points:
  Though temporary in nature, projects can help achieve the organizational
goals when they are aligned with the organization’s strategy.
                                        organization s strategy
   Organizations sometimes change their operations, products, or systems by
creating strategic business initiatives.
1.5 Project Management and
        Operations Management
Projects require project management while
operations require b i
     ti         i business process mgt. or operations management.
                                     t          ti             t

Projects can intersect with operations at various points during the product
life cycle, such as:
   At each closeout phase;
   When developing a new p
                p g        product, upgrading a p
                                   , pg      g product, or expanding
                                                         ,     p      g
   outputs;
   Improvement of operations or the product development process; or
   Until the divestment of the operations at the end of the product life cycle.
1.5 Project Management and
       Operations Management
Key Points:
        At each point, deliverables and knowledge are
        transferred between the project and operations
        for implementation of the delivered work
                                             work.
        This occurs through a transfer of project resources to operations
toward the end of the project, or through a transfer of operational resources
to the project at the start
                      start.

        Operations are permanent endeavors that produce repetitive outputs,
with resources assigned to d b i ll the same set of tasks according to the
  ih               i   d    do basically h              f    k       di      h
standards institutionalized in a product life cycle. Unlike the ongoing nature
of operations,
        projects are temporary endeavors.
           j                        d
1.7
 1 7 Project Management Body of
            Knowledge
                   g
        The PMBOK Guide is the standard for managing most projects most of
the time across many types of industries
                              industries.

       This standard describes the project management processes, tools, and
techniques used to manage a project toward a successful outcome.
   h i        d                 j         d         f l

        This standard is unique to the project management field and has
interrelationships to other project management disciplines such as program
management and portfolio management.

         Project management standards do not address all details of every
topic.
1.7 Project Management Body of
            Knowledge
            K   l dg
      This standard is limited to single projects and the project
management processes that are generally recognized as good practice.

       Other standards may be consulted for additional information on the
                           y
broader context in which projects are accomplished.

      Management of programs is addressed in The Standard for Program
Management, and
      Management of portfolios is addressed in The Standard for Portfolio
Management.

        Examination of an enterprise’s project management process
capabilities is addressed in Organizational Project Management Maturity
Model (OPM3 ).
1.8 Enterprise Environmental
                Factors
Definition:
         Enterprise environmental factors refer to both internal and external
environmental factors that surround or influence a project’s success.

        These factors may come from any or all of the enterprises involved in
the project.

        Enterprise environmental factors may
        enhance or constrain project management options and
        may have a positive or negative influence on the outcome
                                                         outcome.

        They are considered as inputs to most planning processes.
1.8 Enterprise Environmental
              p
                Factors
Enterprise environmental factors include, but are not limited to:
  Organizational culture, structure, and processes;
  Government or i d t standards (
  G           t    industry t d d (e.g., regulatory agency regulations,
                                                  l t              l ti
codes of conduct, product standards, quality standards, and workmanship
standards);
  Infrastructure (
  I f t t        (e.g., existing f iliti and capital equipment);
                          i ti facilities d        it l   i    t)
  Existing human resources (e.g., skills, disciplines, and knowledge, such as
design, development, law, contracting, and purchasing)
  Personnel administration (e.g., staffing and retention guidelines, employee
performance reviews and training records, overtime policy, and time
tracking);
1.8 Enterprise Environmental
               Factors
– Company work authorization systems;
       p y                       y      ;
– Marketplace conditions;
– Stakeholder risk tolerances;
– Political climate;
– Organization’s established communications channels;
– Commercial databases (e.g., standardized cost estimating data, industry
  risk study i f
   i k t d information, and risk d t b
                     ti     d i k databases); and
                                            )    d
– Project management information systems (e.g., an automated tool, such
  as a scheduling software tool, a configuration management system, an
  information collection and distrib tion s stem or web interfaces to other
                             distribution system,    eb
  online automated systems).
For more information do not hesitate to contact me.


 Ahmad H. Maharma - PMPÂŽ

Ramallah, Palestine
Phone: + (972) (2) 2968644
Ph
Mobile: + (972) (599) 001155
E Mail:
E-Mail: ahmad.maharma@gmail.com

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Pmbok 4th edition chapter 1 - Introduction to Project Management

  • 2. Project Management 1. What is Project Management j g
  • 3. Turn your phones off/ silent
  • 4. Who wants to be a project manager?
  • 6. Who wants to work with a project manager?
  • 8. Value of PMP Certification 1. One of few certifications for Project Management  Adopted by IEEE standards – 1490  Run by PMI, non‐profit body, you can participate in PMI activities as  a  Run by PMI non‐profit body you can participate in PMI activities as a member  2. Proof of Project Management expertise  Not easy to get PMP certified Increased Confidence  3. Better Salary 3. Better Salary PMP credential holders earn an average salary of about 100k 15.6 percent higher than non‐credentialed colleagues with same  experience  4. More Job Opportunities Desired requirement for a PM job – gets an edge Increasingly essential requirement for a PMO based organization  gy q g 5. Greater respect from management and colleagues
  • 9. Project Manager Positions Project Administrator / Coordinator Assistant Project Manager Project Manager / Program Manager Executive Program Manager Director - PMO V.P. Program Development President - CEO 9
  • 10. Project Manager Skills Contemporary Project Management requires the following skills: • Common sense and an ability to think logically. • An ability to work under pressure. • Good time management and organizational abilities. • Excellent diplomatic and negotiation skills 10
  • 11. PMP Exam - Eligibility 3 years / 4500 hours of PM Experience (non-overlapping) with a Bachelors or higher education 5 years / 7500 hours, with high school or equivalent 35 hours of PM Education, e.g. Formal college education in Project Management Company-sponsored Programs Courses offered by training companies or consultants Courses by distance education training with end of course assessment Doesn’t count Self Study PMI Chapter meetings
  • 12. PMP Exam Structure PMP Exam Structure Total Questions – 200 (175 + 25 unaccounted) Total Time – 4 hours (240 mins) Passing % - 61% (actual 68 5%) 68.5%) Format - multiple choice, one answer About 80 seconds for each Question Real test of Patience, Experience and Knowledge , p g
  • 13. Question Topics 1. 1 Initiating 11% 2. Planning 23% 3. Executing 27% g 4. Monitoring and Controlling 21% 5. Closing 9% 6. Professional and Social Responsibility 9% 13
  • 14. A walk through the course outline
  • 15. The textbook The PMBOKÂŽ Guide — Fourth Edition is the preeminent global standard for project management. Like previous editions, it represents generally recognized good practices in the profession while reflecting project management’s j t t’ continually evolving knowledge
  • 17. The 5 Project Management Process Groups Each process is described by (ITTO’s): Inputs I t Tools & Techniques 17 Outputs
  • 18. The 9 Knowledge Areas The 9 Knowledge Areas Project Integration Management j g g Project Scope Management Project Time Management Project Time Management Project Cost Management Project Quality Management Project Quality Management Project Human Resource Management Project Communications Management Project Communications Management Project Risk Management Project Procurement Management Project Procurement Management 18
  • 19. 7. Project Management Framework Time Cost Scope Management Management Management Quality Integration HR Management Management Management Risk Communication Procurement Management M g t Management M g t Management M g t The PMBOK’s 9 Knowledge areas
  • 20. Time Cost Scope Management Management Management Quality Integration HR Management Management Management Risk Communication Procurement Management M g t Management M g t Management M g t Time Management
  • 21. Time Cost Scope Management Management Management Quality Integration HR Management Management Management Risk Communication Procurement Management M g t Management M g t Management M g t Cost management
  • 22. Time Cost Scope Management Management Management Quality Integration HR Management Management Management Risk Communication Procurement Management M g t Management M g t Management M g t Scope Management
  • 23. Time Cost Scope Management Management Management Quality Integration HR Management Management Management Risk Communication Procurement Management M g t Management M g t Management M g t Quality Management
  • 24. Time Cost Scope Management Management Management Quality Q lit Integration I i HR Management Management Management Risk Communication Procurement Management Management Management The next four knowledge areas are Facilitating Processes
  • 25. Time Cost Scope Management Management Management Quality Integration HR Management Management Management Risk Communication Procurement Management M g t Management M g t Management M g t HR Management
  • 26. Time Cost Scope Management Management Management Quality Integration HR Management Management Management Risk Communication Procurement Management M g t Management M g t Management M g t Risk Management
  • 27. Time Cost Scope Management Management Management Quality Integration HR Management Management Management Risk Communication Procurement Management M g t Management M g t Management M g t Communications Management
  • 28. Time Cost Scope Management Management Management Quality Integration HR Management Management Management Risk Communication Procurement Management M g t Management M g t Management M g t Procurement Management
  • 29. Time Cost Scope Management Management Management Quality Integration HR Management Management Management Risk Communication Procurement Management M g t Management M g t Management M g t Integration Management – pulling it all together
  • 30. What if it’s not Integrated? it s Time Scope S Management Cost Management Management Integration Management Quality Management HR Management Procurement Communication Management Management Risk Management
  • 31. 1. Project Integration Management effective integration of the processes required t ff ti i t ti f th i d to accomplish project objectives processes include 1. project charter development 2. project management plan development 3. project execution 4. monitoring and control of project work 5. 5 Close project 31
  • 32. 2. Project Scope Management defines and controls what i and i not i l d d i th d fi d t l h t is d is t included in the project processes include 1. scope planning 2. scope definition 3. creation of a Work Breakdown Schedule 4. scope verification 5. 5 scope control 32
  • 33. 3. Project Time Management includes processes required for the timely completion of a project p processes include 1. defining activities 2. sequencing activities 3. 3 estimating resource activities ti ti ti iti 4. estimating duration of activities 5. developing the project schedule 6. controlling the project schedule 33
  • 34. 4. Project Cost Management planning, estimating, budgeting and controlling costs to ensure the project can be completed within the approved budget processes include 1. cost estimating 2. g cost budgetingg 3. cost control 34
  • 35. 5. Project Quality Management all activities th t d t ll ti iti that determine quality policies, objectives i lit li i bj ti and responsibilities for the project to satisfy the needs for which it was undertaken processes include 1. quality planning 2. performing quality assurance 3. performing quality control 35
  • 36. 6. Project Human Resource Management processes that organize and manage the project team processes include: 1. human resource planning 2. acquiring the project team 3. 3 developing the project team 4. managing the project team 36
  • 37. 7. Project Communications Management activities to ensure project information is timely and ti iti t j ti f ti i ti l d appropriately generated, collected, distributed, stored, retrieved and disposed of p processes include 1. communications planning 2. information distribution 3. performance reporting 4. 4 managing stakeholders 37
  • 38. 8. Project Risk Management •processes to increase the p p probability and impact of p y p positive events and decrease the probability and impact of negative events •updated throughout the project •processes include 1. risk management planning 2. risk identification 3. qualitative risk analysis 4. 4 quantitative risk analysis 5. risk response planning 6. risk monitoring and control g 38
  • 39. 9. Project Procurement Management •processes to purchase/acquire the products services or results products, needed to perform the project work •includes contract management and change control processes to administer contracts or purchase orders •processes include: 1. 1 planning purchases and acquisitions 2. contract planning 3. requesting seller responses 4. selecting sellers 5. contract administration 6. 6 contract closure 39
  • 40. PM Knowledge Areas & Process Groups PM Process Initiating Process Planning Process Group Executing Process Monitoring & Controlling Closing Groups / Group Group Process Group Process Knowledge Group Area Processes Project Develop Project Charter Develop Project Management Direct and Manage Project Monitor and Control Project Work Close Project Management Plan Execution Integrated Change Control Integration Project Scope Collect requirements Verify Scope Management Define Scope Control Scope Create WBS Project Time Define Activity y Schedule Control Management Sequence Activity Estimating Resource Estimating Duration Develop Schedule Project Cost Estimating Cost Control Cost Management Budgeting Cost Project Quality Quality Planning Perform Quality Assurance Perform Quality Control Management Project HR Human Resources Planning Acquire Project Team Management Develop Project Team Manage Project Team Project P j t Identify Stakeholders Id tif St k h ld Plan Communications Pl C i ti Distribute Information Di t ib t I f ti Performance Reporting P f R ti Communications Manage stakeholders Management expectations Project Risk Plan Risk Management Risk Monitoring and Control Management Risk Identification Qualitative / Quantitative Risk Analysis Risk R Ri k Response Planning Pl i Project Plan procurement Conduct procurement Administer Contract Close Procurement procurement Management
  • 42. The Four Project Dimensions People Process Product Technology 42
  • 43. Project Phases All projects are divided into phases All phases together are known as the Project Life Cycle Each phase is marked by completion of Deliverables 43
  • 44. Why Do Projects Succeed? – Executive support – User involvement – Experienced project manager – Clear business objectives – Minimized scope – Standard software infrastructure – Firm basic requirements – Formal methodology – Reliable estimates 44
  • 46. Introduction What is PMBOK Guide? PMBOK Guide is a recognized standard for the project management profession. What is a standard? A standard is a formal document that describes established norms, methods, processes, and practices. How did it evolve? The knowledge contained in this standard evolved from the recognized good practices of project management practitioners who contributed to the development of this standard.
  • 47. Introduction The Th PMBOK G id provides g id li Guide id guidelines f managing for gi g individual projects. The PMBOK Guide defines project management and related p j g concepts, and describes the project management life cycle and the related processes
  • 48. 1.2 What is a project? Definition A project is a temporary endeavor undertaken to create a unique product, service, or result. Temporary endeavor with a definite beginning and end. The end is reached when the project’s objectives have been achieved or when the project is terminated because its objectives will not or cannot be met or met, when the need for the project no longer exists.
  • 49. 1.2 What is a project? p j Definition – Misconceptions: Temporary does not necessarily mean short in duration. Temporary does not generally apply to out put of the project (the product, service, or result created by the p j ); most p j , y project); projects are undertaken to create a lasting outcome. [and lasting impact.] Definition: “create”: create : – A product that can be either a component of another item or an end item in itself, – A capability to perform a service (e g a business function that supports (e.g., production or distribution), or – A result such as an outcome or document (e.g., a research project that develops knowledge that can be used to determine whether a trend is present or a new process will benefit society).
  • 50. 1.2 What is a project? p j Definition “unique” D fi iti – “ i ” Every project creates a unique product, service, or result. Although repetitive elements may be present in some project deliverables, this repetition does not change the fundamental uniqueness of the project work. An g i g A ongoing work effort i g k ff t is generally a repetitive process ll titi because it follows an organization’s existing procedures.
  • 51. 1.2 What is a project? Examples of Projects p j Examples of projects include, but are not limited to: Developing a new product or service, Effecting a change in the structure, staffing, or style of an organization, developing or acquiring a new or modified information system system, Constructing a building or infrastructure, or Implementing a new business process or procedure.
  • 52. 1.2 What is a project? Project Exist in All Organizations - Public Sector Organization - Business Organization - Non Governmental Organizations etc Why? Because organizations are open systems. They have to systems respond to both internal and external changes To meet their development agenda To satisfy customers To survive To solve problems and grab opportunities
  • 53. 1.3 What is project management? p j g What is Project Management? Project management is the application of knowledge, skills, tools, and techniques to project activities to meet the project requirements.
  • 54. 1.3 What is project management? How is project Management accomplished? Project management is accomplished through the appropriate application and integration of the 42 logically grouped project management processes. The 42 project management processes are logically grouped in to five “Process Groups”. p These Process Groups are: Initiating, Initiating Planning, Executing, Monitoring and Controlling, and Closing.
  • 55. 1.3 What is project management? What does a project typically include? p j yp y Identifying requirements Addressing the various needs, concerns, & expectations of stakeholders as the project is planned & carried out, Balancing the competing project constraints including, but not limited to: Scope, Quality, Schedule, Budget, Resources, and R d Risk.
  • 56. 1.3 What is project management? What is interdependency of constraints? The relationship among these factors [the constraints] is such that if any one factor changes, at least one other factor is likely to be affected. Example: For example, if the schedule is shortened, often the p , , budget needs to be increased to add additional resources to complete the same amount of work in less time. If a budget increase is not possible, the scope or quality may be reduced to possible deliver a product in less time for the same budget.
  • 57. 1.3 What is project management? Constraints – Key points Project stakeholders may have differing ideas as to which factors are the most important, creating an even greater challenge. challenge Changing the p j g g project requirements may create additional q y risks. The project team must b able to assess the situation and h be bl h d balance the demands in order to deliver a successful project.
  • 58. 1.3 What is project management? Because of the potential for change, the project management plan is iterative and goes through progressive elaboration throughout the project’s life cycle cycle. What is iteration? What is progressive elaboration? Progressive elaboration involves g continuously improving and detailing a plan as more-detailed and specific information and more accurate estimates become available available. Progressive elaboration allows a project management team to manage to a greater level of detail as the project evolves evolves.
  • 59. 1.4 Relationships B/W Project, p j , Program, & Portfolio Mgt. Broader Context of Project Management In mature project management organizations, p j project management exists in a broader context g governed by program management and portfolio management.
  • 60.
  • 61. 1.4 1 4 Relationships B/W Project, Project Program, & Portfolio Mgt. g , g The Figure focuses/shows that, g , organizational strategies and priorities are linked, and there is relationships between portfolios and programs, and there is relationship between programs and individual projects. projects
  • 62. 1.4 Relationships B/W Project, Program, & Portfolio Mgt. Key points: Organizational planning impacts the projects by means of project prioritization based on risk, funding, and the organization s organization’s strategic plan. plan Organizational planning can direct the funding and support for g p g g pp the component projects on the basis of risk categories, specific lines of business, or general types of projects, such as infrastructure and internal process improvement improvement.
  • 63. 1.4 Relationships B/W Project, p j , Program, & Portfolio Mgt. 1.4.1 Portfolio Management What is ‘portfolio’? A portfolio refers to a collection of projects or programs and other work that are grouped together to facilitate effective management of that work to meet strategic business objectives. g j The projects or programs of the portfolio may not necessarily be interdependent or directly related.
  • 64. 1.4 Relationships B/W Project, Program, & Portfolio Mgt. P P f li M 1.4.1 Portfolio Management g The projects or programs of the portfolio may not necessarily be interdependent or directly related. For example, an infrastructure firm that has the strategic objective of “maximizing the return on its investments” may put together a portfolio th t i l d t t g th tf li that includes a mix of projects in oil and gas, power, water, roads, rail, and airports. From this mix, the firm may choose to manage related projects as one program. All of the power projects may be grouped together as a power program. Similarly, all of the water projects may be grouped together as a water program.
  • 65. 1.4 Relationships B/W Project, Program, & Portfolio Mgt P g P tf li Mgt. 1.4.1 Portfolio Management What is portfolio management? It refers to the centralized management of one or more portfolios. What is portfolio management involve? It includes identifying, p y g, prioritizing, authorizing, managing, and controlling g, g, g g, g projects, programs, and other related work, to achieve specific strategic business objectives. What does portfolio management focus on? It focuses on ensuring that projects and programs are reviewed to prioritize resource allocation and that the management of the portfolio is consistent allocation, with and aligned to organizational strategies.
  • 66. 1.4 Relationships B/W Project, Program, & Portfolio Mgt. 1.4.2 1 4 2 Program Management Definition of ‘Program’ g A program is defined as a group of related projects managed in a coordinated way to obtain benefits and control not available from managing them individually. Key Points: Programs may include elements of related work outside the scope of the discrete p j p projects in the program. p g A project may or may not be part of a program but a program will always have projects.
  • 67. 1.4 Relationships B/W Project, Program, & Portfolio Mgt P g P tf li Mgt. 1.4.2 Program Management Definition of ‘Program management’ Program management is defined as the centralized coordinated management of a program to achieve the program’s strategic objectives and benefits. Key Point: Projects within a program are related through the common outcome or collective capability. If t e relationship betwee p ojects is o ly t at o a s a ed cl e t, selle , the elat o s p between projects s only that of shared client, seller, technology, or resource, the effort should be managed as a portfolio of projects rather than as a program.
  • 68. 1.4 Relationships B/W Project, Program, & Portfolio Mgt. P P f li M 1.4.2 Program Management g g Focus of Program Management: It focuses on the project interdependencies and helps to determine the optimal approach for managing them. Actions related to these interdependencies may include: Resolving resource constraints and/or conflicts that affect multiple p j projects within the program; p g ; Aligning organizational/strategic direction that affects project and program goals and objectives; and Resolving issues and change management within a shared governance structure.
  • 69. 1.4 Relationships B/W Project, Program, & Portfolio Mgt. 1.4.2 Program Management An Example of a Program : An example of a program would be a new communications satellite system i ti t llit t with projects for design of the satellite and of the ground stations stations, construction of each, integration of the system, and g y , launch of the satellite.
  • 70. 1.4 Relationships B/W Project, Program, & Portfolio Mgt P g P tf li Mgt. Difference in approaches Projects, programs, and portfolios have different approaches. Table 1-1 shows the comparison of project, program, and portfolio views across several domains including g change, leadership, management, and others.
  • 71.
  • 73. 1.4 Relationships B/W Project, Program, & Portfolio Mgt P g P tf li Mgt. 1.4.3 Projects and Strategic Planning Projects are often utilized as a means of achieving an organization’s strategic plan plan. Projects are typically authorized as a result of one or more of the following strategic considerations: Market demand Strategic opportunity/business need g pp y Customer request Technological advance Legal requirements
  • 74. 1.4 Relationships B/W Project, Program, Program & Portfolio Mgt Mgt. 1.4.3 Projects and Strategic Planning Key Points Projects, within programs or portfolios, are a means of achieving organizational goals and objectives, often in the context of a strategic plan. g g j g p Although a group of projects within a program can have discrete benefits, they can also contribute to the benefits of the program, to the objectives of the portfolio, and to the strategic plan of the organization. Organizations manage portfolios based on their strategic plan which may plan, dictate a hierarchy to the portfolio, program, or projects involved.
  • 75. 1.4 Relationships B/W Project, Program, & Portfolio Mgt. 1.4.3 Projects and Strategic Planning Key Points One goal of portfolio management is to maximize the value of the portfolio by the careful examination of its components the constituent programs components—the programs, projects, and other related work. Those components contributing the least to the portfolio’s strategic objectives may be excluded. In this way an organization’s strategic plan excluded way, organization s becomes the primary factor guiding investments in projects. At the same ti th time, projects provide f db k t programs and portfolios b j t id feedback to d tf li by means of status reports and change requests that may impact other projects, programs, or portfolios. The needs of the projects, including the resource needs, needs are rolled up and communicated back to the portfolio level which in level, turn sets the direction for organizational planning.
  • 76. 1.4 Relationships B/W Project, Program, & Portfolio Mgt. P P f li M 1.4.4 Project Management Office (PMO) Definition: f PMO is an organizational body or entity assigned various responsibilities related to the centralized and coordinated management of those projects under its domain. Responsibility of PMO: The responsibilities of a PMO can range from providing project management support functions to actually being responsible for the direct management of a project. Key Point: The projects supported or administered by the PMO may not be related, other than by being managed together.
  • 77. 1.4 Relationships B/W Project, Program, & Portfolio Mgt. 1.4.4 Project Management Office Key Points: The specific form, function, and structure of a PMO is dependent upon the needs of the organization that it supports. A PMO may be delegated the authority to act as an integral stakeholder and a key decision maker during the beginning of each project, to make recommendations, or to terminate projects or take other actions as required to keep business objectives consistent. p j In addition, the PMO may be involved in the selection, management, and deployment of shared or dedicated project resources resources.
  • 78. 1.4 Relationships B/W Project, Program, & Portfolio Mgt. 1.4.4 Project M 144P j Management Offi Office Primary Function: To support project managers in a variety of ways which may include, but are not limited to: Managing shared resources across all projects administered by PMO Identifying & developing p j y g p g project mgt. methodology, best p g gy, practices, & , standards Coaching, mentoring, training, and oversight; Monitoring compliance with project management standards, policies standards policies, procedures, and templates via project audits; Developing and managing project policies, procedures, templates, and other shared documentation , and Coordinating communication across projects.
  • 79. 1.4 Relationships B/W Project, p j , Program, & Portfolio Mgt. 1.4.4 Project Management Office PMO and Project Managers Pursue Different Objectives: Project managers and PMOs pursue different objectives and, as such, are d i d h driven b diff by different requirements. t i t All of these efforts, however, are aligned with the efforts however strategic needs of the organization.
  • 80. 1.4 Relationships B/W Project, Program, & Portfolio Mgt. P P f li M 1.4.4 Project Management Office PMO and Project Managers have Different Roles: The Th project manager f j t focuses on th specified project objectives, while th the ifi d j t bj ti hil the PMO manages major program scope changes which may be seen as potential opportunities to better achieve business objectives. b i bj ti The project manager controls the assigned project resources to best meet project objectives while the PMO optimizes the use of shared organizational resources across all projects. ll j t The project manager manages the constraints (scope, schedule, cost, and quality, etc.) of the individual projects while the PMO manages the methodologies, standards, overall risk/opportunity, and i t d th d l gi t d d ll i k/ t it d interdependencies d i among projects at the enterprise level.
  • 81. 1.5 Project Management and Operations Management Definition: D fi i i Operations are an organizational function performing the ongoing execution of activities that produce the same product or provide a repetitive service. i Examples: Production operations, manufacturing operations, and accounting operations, etc. Key Points: Though temporary in nature, projects can help achieve the organizational goals when they are aligned with the organization’s strategy. organization s strategy Organizations sometimes change their operations, products, or systems by creating strategic business initiatives.
  • 82. 1.5 Project Management and Operations Management Projects require project management while operations require b i ti i business process mgt. or operations management. t ti t Projects can intersect with operations at various points during the product life cycle, such as: At each closeout phase; When developing a new p p g product, upgrading a p , pg g product, or expanding , p g outputs; Improvement of operations or the product development process; or Until the divestment of the operations at the end of the product life cycle.
  • 83. 1.5 Project Management and Operations Management Key Points: At each point, deliverables and knowledge are transferred between the project and operations for implementation of the delivered work work. This occurs through a transfer of project resources to operations toward the end of the project, or through a transfer of operational resources to the project at the start start. Operations are permanent endeavors that produce repetitive outputs, with resources assigned to d b i ll the same set of tasks according to the ih i d do basically h f k di h standards institutionalized in a product life cycle. Unlike the ongoing nature of operations, projects are temporary endeavors. j d
  • 84. 1.7 1 7 Project Management Body of Knowledge g The PMBOK Guide is the standard for managing most projects most of the time across many types of industries industries. This standard describes the project management processes, tools, and techniques used to manage a project toward a successful outcome. h i d j d f l This standard is unique to the project management field and has interrelationships to other project management disciplines such as program management and portfolio management. Project management standards do not address all details of every topic.
  • 85. 1.7 Project Management Body of Knowledge K l dg This standard is limited to single projects and the project management processes that are generally recognized as good practice. Other standards may be consulted for additional information on the y broader context in which projects are accomplished. Management of programs is addressed in The Standard for Program Management, and Management of portfolios is addressed in The Standard for Portfolio Management. Examination of an enterprise’s project management process capabilities is addressed in Organizational Project Management Maturity Model (OPM3 ).
  • 86. 1.8 Enterprise Environmental Factors Definition: Enterprise environmental factors refer to both internal and external environmental factors that surround or influence a project’s success. These factors may come from any or all of the enterprises involved in the project. Enterprise environmental factors may enhance or constrain project management options and may have a positive or negative influence on the outcome outcome. They are considered as inputs to most planning processes.
  • 87. 1.8 Enterprise Environmental p Factors Enterprise environmental factors include, but are not limited to: Organizational culture, structure, and processes; Government or i d t standards ( G t industry t d d (e.g., regulatory agency regulations, l t l ti codes of conduct, product standards, quality standards, and workmanship standards); Infrastructure ( I f t t (e.g., existing f iliti and capital equipment); i ti facilities d it l i t) Existing human resources (e.g., skills, disciplines, and knowledge, such as design, development, law, contracting, and purchasing) Personnel administration (e.g., staffing and retention guidelines, employee performance reviews and training records, overtime policy, and time tracking);
  • 88. 1.8 Enterprise Environmental Factors – Company work authorization systems; p y y ; – Marketplace conditions; – Stakeholder risk tolerances; – Political climate; – Organization’s established communications channels; – Commercial databases (e.g., standardized cost estimating data, industry risk study i f i k t d information, and risk d t b ti d i k databases); and ) d – Project management information systems (e.g., an automated tool, such as a scheduling software tool, a configuration management system, an information collection and distrib tion s stem or web interfaces to other distribution system, eb online automated systems).
  • 89. For more information do not hesitate to contact me. Ahmad H. Maharma - PMPÂŽ Ramallah, Palestine Phone: + (972) (2) 2968644 Ph Mobile: + (972) (599) 001155 E Mail: E-Mail: ahmad.maharma@gmail.com