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1. MANAGEMENT
OF PROJECTS
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PROJECT & PROJECT MANAGEMENT: AN OVERVIEW

2. WHAT IS A PROJECT?
 Projects are unique.
 Projects are temporary in nature and have a definite
beginning and ending date.
 Projects are completed when the project goals are achieved.
 A successful project is one that meets or exceeds the
expectations of your stakeholders.
 Project is Progressively Elaborated
 Distinguishing characteristics of each unique project will be
progressively detailed as the project is better understood
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3. WHAT IS A PROJECT?
1. A complex, non-routine, one-time effort limited
by time, budget, resources, and performance
specifications designed to meet customer
needs.
2. A project is a temporary endeavor undertaken
to create a unique product, service, or result
(PMI Book 4th Edition)
3. A project is a problem that is scheduled for
solution. (Dr. J. M. Juran (Quality Guru))
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4. ELEMENTS OF PROJECTS
 Complex, one-time
processes
 Limited by budget,
schedule, and resources
 Developed to resolve a
clear goal or set of goals
 Customer-focused
 Every project is constrained in different ways by its:
 Scope: What work will be done as part of the project? What unique
product, service, or result does the customer or sponsor expect from
the project?
 Time: How long should it take to complete the project? What is the
project’s schedule?
 Cost: What should it cost to complete the project? What is the
project’s budget?

5. PROJECT STAKEHOLDERS
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 A Project is successful when it achieves its objectives and
meets or exceeds the expectations of the stakeholders.
 Stakeholders are those folks (or organizations) with a
vested interest in your project.
 The PROJECT SPONSOR, generally an executive in the
organization with the authority to assign resources and
enforce decisions regarding the project, is a Stakeholder.

6. PROJECT VS OPERATION
PROJECT
 Take place outside the
process world
 Unique and separate from
normal organization work
OPERATION
 Ongoing, day-to-day activities
 Use existing systems,
properties, and capabilities
A set of interrelated actions and activities that are performed
to achieve a prespecified set of products, results, or services
„Guide to the Project Management – Body of Knowledge,
the Project Management Institute, 4th . Ed., 2010“
Routine, Repetitive Work: Examples
1. Taking class notes
2. Responding to a supply-chain
request
3. Routine manufacture of an Apple
iPod
Projects: Examples
1. Writing a term paper
2. Developing a supply-chain
information system
3. Designing an iPod that is
approximately 2 X 4 inches,
interfaces with PC, and stores
10,000 songs

7. IS IT A PROJECT OR OPERATION?
Consider the following scenario:
You work for a wireless phone provider, and the VP of marketing
approaches you with a fabulous idea – “fabulous” because he’s
the big boss and because he thought it up. He wants to set up
Stalls in local grocery and big–box stores as mini–offices. These
offices will offer customers the ability to sign up for new wireless
phone services, make their wireless phone bill payments, and
purchase equipment and accessories. He believes that the
exposure in grocery stores will increase awareness of the
company’s offerings. After all, everyone has to eat, right? He told
you that the board of directors has already cleared the project,
and he will dedicate as many resources to this as he can. He
wants the new Stalls in place in 12 stores by the end of this year.
The best news is he has assigned you to head up this project.
 Your first question should be “IS IT A PROJECT?”

8. IS IT A PROJECT OR OPERATION?
1. Projects are unique.
2. Projects are temporary in nature and have a definite beginning and ending date.
3. Projects are completed when the project goals are achieved.
4. A successful project is one that meets or exceeds the expectations of your stakeholders.
IS IT UNIQUE? Yes, Because the Stalls don’t exist now in the local grocery
stores. This is a new way of offering the company’s services to its customer base.
Although the service the company is offering isn’t new, the way it is presenting its
services is.
DOES THE PROJECT HAVE A LIMITED TIME FRAME? Yes, the start
date of this project is today, and end date is the end of this year. It is a temporary
endeavor.
IS THERE A WAY TO DETERMINE WHEN THE PROJECT IS
COMPLETED? Yes, the stalls will be installed, and services will be offered from
them. Once all the stalls are intact and operating, the project will come to a close.
IS THERE A WAY TO DETERMINE STAKEHOLDER
SATISFACTION? Yes, the expectations of the stakeholders will be documented in
the form of deliverables and requirements during the Planning processes. Some of the
requirements the VP noted are that customers can sign up for new services, pay their
bills, and purchase equipment and accessories. These deliverables and requirements
will be compared to the finished product to determine whether it meets the
expectations of the stakeholders.

9. PROJECT MANAGEMENT
A method and a set of techniques based on the accepted
principles of management used for planning, estimating and
controlling work activities to reach a desired end result on
time – within budget and according to specification.
„Robert K. Wysocki / Robert Beck Jr. / David B. Crane, Effective Project Management, 2. ed., John Wiley & Sons, 2002, p.
79“
Project management is the planning, organizing, directing, and
controlling of company resources for a relatively short-term
objective that has been established to complete specific goals
and objectives.“
„ Harold Kerzner, Project Management: A Systems Approach to Planing, Scheduling and Controlling, John Wiley
& Sons, Inc., New York et. al., 7. ed, 2001, p. 4“

10. SKILLS EVERY GOOD PROJECT MANAGER
NEEDS
Project manager’s are like small business owners
 Application skills
 Communication skills
 Organizational and planning skills
 Budgeting skills
 Conflict management (Problem Solving) skills
 Negotiation and influencing skills
 Leadership skills
 Team building and motivating skills

11. PROJECT MANAGEMENT PROCESSES
 Based on Plan-do-check-act cycle (as defined by Shewhart and modified
by Deming)
 The project management processes are aggregated into five groups,
defined as the project management process groups
 Initiating
 Planning
 Executing
 Monitoring and Control
 Closing
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12. PROJECT MANAGEMENT
PROCESSES GROUPS
• Initiating
• Defines and authorizes the project or a project phase
• Planning
• Defines and refines objectives, and plans the course of action
required to attain the objectives and scope that the project was
undertaken to address
• Executing
• Integrates people and other resources to carry out the project
management plan for the project
• Monitoring and Control
• Regularly measures and monitors progress to identify variances from
the project management plan so that corrective action can be taken
when necessary to meet project objectives
• Closing
• Formalizes acceptance of the product, service or result and brings
the project or a project phase to an orderly end
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13. 13
Characteristics of the Project Process Groups
Levels
Initiating Planning Executing Monitoring
and
Controlling
Closing
Costs Low Low Highest Lower Lowest
Staffing Low Lower High High Low
Understanding
Chance for
Successful
Completion
Lowest Low Medium High Highest
Stakeholder
Influence
Highest High Medium Low Lowest
risk Prob-
ability of
Occurrence
Lowest Low High High Lower

14. PROJECT VS PRODUCT

15. PROJECT LIFE CYCLE
A deliverable is a
product or service
produced or
provided as part of a
project

16. 16
planning
Definition

17. PROJECT LIFE CYCLE (CONT…)
HANDOFFS:
Project phases evolve through the life cycle in a series of
phases sequences called handoffs, or technical transfers. The
end of one phase sequence typically marks the beginning of the
next.
FAST TRACKING:
 There are times when phases are overlapped to shorten or
compress the project schedule. This is called Fast Tracking.
 Fast tracking means that a later phase is started prior to
completing and approving the phase, or phases, that come
before it.
 This technique is used to shorten the overall duration of the
project

18. PROJECT LIFE CYCLE (CONT…)
PHASE-TO-PHASE RELATIONSHIPS:
There are three basic types of phase – to – phase relationships :
 A Sequential relationship: where a phase can only
start once the previous phase is complete.
 An Overlapping relationship: where the phase starts
prior to completion of the previous one ( Fast tracking ).
Overlapping phase may increase risk and can result in
rework.
 An Iterative relationship: where only one phase is
planned at any given time and the planning for the next is
carried out as work progresses on the current phase and
deliverables

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A program is basically a group of related projects managed in a
coordinated way to obtain benefits and control not available
from managing them individually.
Schools Constuction
Facilities Maintenance
Private schools asst
Elementry
Education
Teachers Hiring
Teachers training
Special Initiatives

20. 20
 A collection of projects or programs and other work that are
grouped togather to facilitate effective managmement of that work
to meet strategic business objecives.
 The projects or program of the portfolio may not necessarily be
interdependent or directly related.

21. 21
 An infrastructure firm with strategic objective of
“maximizing the return on its investments„
 Have mix of projects of oil and gas, power, roads, rail.
 For this mix, the firm may choose to manage related proejects as one
program.
 All of the power projects may be grouped togather as power program.
Similary, all of the water projects may be grouped togather as a water
program.
 The overall company business come under portfolio mgt.

22. ORGANIZATIONAL STRUCTURE
Functional
Weak
Matrix
Balanced
Matrix
Strong
Matrix
Projectized

23. FUNCTIONAL ORGANIZATION
 ADVANTAGES
 Easier management of specialists
 Team member report to only one
supervisor
 Similar resources are centralized
 Clearly defined career path
 DISADVANTAGES
 People put more emphasis on
specialty rather than on the
project
 No career path in project
management
 Project manager has little or no
authority
 The organization is grouped by areas of specialization within different functional
areas.
 Projects generally occur within a single department.
 Information required from other department will be routed through departmental
heads.
 Team members complete project work in addition to normal department work.

24. PROJECTIZED ORGANIZATION
 ADVANTAGES
 Efficient project
organization
 Loyalty to the project
 More effective
communication than
functional
 DISADVANTAGES
 No “home” when project
is completed
 Duplication of facilities
and job functions
 Less efficient use of
resource
 The entire company is organized by projects.
 The project manager has control of projects.
 Personnel are assigned and report to a project manager.
 Team members complete only project work and when its over they don't have
HOME.
 Communication generally occurs only within the project.

25. MATRIX ORGANIZATION
 Organizing Projects: Matrix Structure
– Hybrid organizational structure (matrix) is overlaid on the normal functional structure.
• Two chains of command (functional and project)
• Project participants report simultaneously to both functional and project managers.
– Matrix structure optimizes the use of resources.
• Allows for participation on multiple projects while performing normal functional duties.
• Achieves a greater integration of expertise and project requirements.

26. WEAK MATRIX ORGANIZATION
 Two Bosses
 Team members reports to Project Manager and Functional Manager
 Team members do project work in addition to normal departmental work
 Power rests with functional manager
 Project Manager plays a role of:
 Project Expediter: Cannot take decision. Staff assistant and Communication
coordinator.
 Project Coordinator: Similar to Project Expeditor except has some power to
take decision.

27. BALANCED MATRIX
 Two Bosses
 Team members reports to Project Manager and Functional Manager
 Team members do project work in addition to normal departmental work
 Power is shared between the functional and project manager

28. STRONG MATRIX
Power rests with the Project Manager

30. QUESTIONS
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