Project Management Chapter 1

A program is?

"a group of related projects, subsidiary programs, and program activities managed in a coordinated manner to obtain benefits not available from managing them individually."

Organizational project management is a?

"framework in which portfolio, program, and project management are integrated with organizational enablers in order to achieve strategic objectives."

A portfolio is defined as?

"projects, programs, subsidiary portfolios, and operations managed as a group to achieve strategic objectives."

Organizations waste $_______ million for every $_________ billion spent on projects (PMI) (PM significantly affects _________ _________)

$97 million for every $1 billion spent, bottom line

Project and program management address questions like:

1. Are we carrying out projects well? 2. Are projects on time and budget? 3. Do project stakeholders know what they should be doing?

Give 3 examples of mega projects throughout the world.

1. Panama Canal Expansion Project 2. Port Mann Bridge, Vancouver 3. Three Gorges Dam, China

The PMBOK® Guide - Sixth Edition now lists tools and techniques based on their purpose, List the 7 areas

1. data gathering 2. data analysis 3. data representation 4. decision-making 5. communication 6. interpersonal and team skills 7. ungrouped

Two important concepts that help projects meet enterprise goals are?

1. the use of programs and 2. project portfolio management

Portfolio management addresses questions like?

Are we working on the right projects? Are we investing in the right areas? Do we have the right resources to be competitive?

Communications management: tools and techniques

Communications management plans, kickoff meetings, conflict management, communications media selection, status and progress reports, virtual communications, templates, project websites

Schedule management& Cost management: tools and techniques

Gantt charts, project network diagrams, critical-path analyses, crashing, fast tracking, schedule performance measurements Net present value, return on investment, payback analyses, earned value management, project portfolio management, cost estimates, cost management, plans, cost baselines

Procurement Management: tools and techniques

Make-or-buy analyses, contracts, requests for proposals or quotes, source selections, supplier evaluation matrices

Who is the project manager in this example?

Normally, the general contractor responsible for building the house. He/she must work with all other project stakeholders to meet their needs and expectations.

There may or may not be __________ to a project.

Opponents project. In this example, there might be a neighbor who opposes the project because the workers are making so much noise that she cannot concentrate on her work at home, or the noise might awaken her sleeping children. She might interrupt the workers to voice her complaints or even file a formal complaint. Alternatively, the neighborhood might have association rules concerning new home design and construction. If the homeowners did not follow these rules, they might have to halt construction due to legal issues.

Project resource management

Project resource management is concerned with making effective use of the people and physical resources that are needed in the project.

Project risk management

Project risk management includes identifying, analyzing, and responding to risks related to the project.

How can you avoid the problems that occur when you meet scope, schedule, and cost goals, but lose sight of customer satisfaction?

The answer is good project management, which includes more than meeting project constraints.

Project Management Process Groups and Knowledge Areas What are the project management process groups?

The five project management process groups include initiating, planning, executing, monitoring and controlling, and closing activities.

Define stakeholders

The people involved in or affected by project activities Project stakeholders include the project sponsor, project team, support staff, customers, users, suppliers, and even opponents to the project.

Who would be the project sponsor for a new home construction project?

The project sponsors would be the potential new homeowners. They would be the people paying for the house. They would also need a realistic idea of when they could move in and what type of home they could afford given their budget constraints. In this example, the project sponsors are also the customers and users for the product, which is the house.

Building a house requires many suppliers. Suppliers would expect details on?

What items they need to provide, where and when to deliver those items, and similar information.

a megaproject is?

a very large project that typically costs over US $1 billion, affects over one million people, and lasts several years.

Most important attribute employers are looking for:

ability to work as a team (interpersonal skills)

How much of the worlds GDP is spent on projects?

about 1/4

To create a successful project, project managers must consider scope, schedule, and cost and __________ these three often-competing goals. They must consider the following:

balance, 1. 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? 2. Schedule: How long should it take to complete the project? What is the timeline? 3. Cost: What should it cost to complete the project? What is the project's budget? What resources are needed? Other people focus on the quadruple constraint, which adds quality as a fourth constraint. 4. Quality: How good does the quality of the products or services need to be? What do we need to do to satisfy the customer?

Project management tools and techniques assist project managers and their teams in?

carrying out work in all ten knowledge areas.

Experienced project managers know that you must decide which _____________ are most ____________ on each particular project. Explain.

constraints, important If time is most important, you must often change the initial scope and/or cost goals to meet the schedule. You might have to accept more risk and lower quality expectations. If scope goals are most important, you may need to adjust schedule and/or cost goals, decrease risk, and increase quality expectations. If communications is most important, you must focus on that. If there are set procurement goals or constraints, that knowledge might be key to the project.

Many organizations support an emerging business strategy of project portfolio management (also called just portfolio management) by?

continuously selecting and managing the optimum set of projects and programs to deliver maximum business value.

As you can imagine, it is often more ________________ to _________ projects together to help _____________ management, staffing, purchasing, and other work.

economical, group, streamline

The main distinction between project or program management and portfolio management is a focus on?

meeting tactical versus strategic goals.

It is also important to learn from the _________ and __________ of past projects.

mistakes, successes

These stakeholders often have very different _________ and ______________.

needs & expectations

Program managers often host?

review meetings with all their project managers to share important information and coordinate important aspects of each project.

The PMBOK® Guide --Sixth Edition suggests these four constraints plus _______ and ____________, but states that there may be _________ as well, depending on the project.

risk and resources, others

Risk Management: tools and techniques

risk management plans, risk registers, probability/impact matrices, risk rankings

Individual projects and programs often address?

tactical goals, whereas portfolio management addresses strategic goals.

For example, the couple may have picked out a certain type of flooring for most of their home early in the design process, but...?

that supplier may have run out of stock, forcing them to choose a different flooring to meet the schedule goal. This issue may affect the cost of the project.

Portfolio managers need to understand how projects fit into? Especially in terms of?

the bigger picture of the organization corporate strategy, finances, and business risks.

What are "super tools"?

those that had high use and high potential for improving project success.

The following are examples of programs

1. A construction firm has programs for building single-family homes, apartment buildings, and office buildings, as shown in Figure 1-5. Each home, apartment building, and office building is a separate project for a specific sponsor, but each type of building is part of a program. There would be several benefits to managing these projects under one program. For example, for the single-family homes, the program manager could try to get planning approvals for all the homes at once, advertise them together, and purchase common materials in bulk to earn discounts. 2. A clothing firm has a program to analyze customer-buying patterns.Projects under this program might include one to send out and analyze electronic surveys, one to conduct several focus groups in different geographic locations with different types of buyers, and a project to develop an information system to help collect and analyze current customers' buying patterns. 3. A government agency has a program for children's services, which includes a project to provide pre-natal care for expectant mothers, a project to immunize newborns and young children, and a project for developmental testing for preschool children, to name a few.

List the 7 primary attributes of a project

1. A project has a unique purpose. Every project should have a well-defined objective. For example, many people hire firms to design and build a new house, but each house, like each person, is unique. 2. A project is temporary. A project has a definite beginning and a definite end. For a home construction project, owners usually have a date in mind when they'd like to move into their new home. 3. A project drives change and enables value creation. A project is initiated to bring about a change in order to meet a need or desire. Its purpose is to achieve a specific objective which changes the context (a living situation, in this house project example) from a current state to a more desired or valued future state. 4. A project is developed using progressive elaboration or in an iterative fashion. Projects are often defined broadly when they begin, and as time passes, the specific details of the project become clearer. For example, there are many decisions that must be made in planning and building a new house. It works best to draft preliminary plans for owners to approve before more detailed plans are developed. 5. A project requires resources, often from various areas. Resources include people, hardware, software, or other assets. Many different types of people, skill sets, and resources are needed to build a home. 6. A project should have a primary customer or sponsor. Most projects have many interested parties or stakeholders, but someone must take the primary role of sponsorship. The project sponsor usually provides the direction and funding for the project. 7. A project involves uncertainty. Because every project is unique, it is sometimes difficult to define the project's objectives clearly, estimate exactly how long it will take to complete, or determine how much it will cost. External factors also cause uncertainty, such as a supplier going out of business or a project team member needing unplanned time off. Uncertainty is one of the main reasons project management is so challenging, because uncertainty invokes risk.

Project managers and their teams must develop knowledge and skills in the following areas:

1. All ten project management knowledge areas 2. The application area (domain, industry, market, etc.) 3. The project environment (politics, culture, change management, etc.) 4. General business (financial management, strategic planning, etc.) 5. Human relations (leadership, motivation, negotiations, etc.)

There can be portfolios for all types of projects. For example:

1. In a construction firm, strategic goals might include increasing profit margins on large projects, decreasing costs on supplies, and improving skill levels of key workers. Projects could be grouped into these three categories for portfolio management purposes. 2. In a clothing firm, strategic goals might include improving the effectiveness of IT, introducing new clothing lines, reducing inventory costs, and increasing customer satisfaction. These might be the main categories for their portfolio of projects. 3. A government agency for children's services could group projects into a portfolio based on strategies such as improving health, providing education, and so on to help make optimum decisions on use of available funds and resources.

How do you define the success or failure of a project? There are several ways to define project success. The list that follows outlines a few common criteria for measuring project success as applied to the example project of building a new 2,000 square foot home within six months for $300,000:

1. The project met scope, schedule, and cost goals. If the home was 2,000 square feet and met other scope requirements, was completed in six months, and cost $300,000, we could call it a successful project based on these criteria. Note that the CHAOS studies mentioned in the What Went Right? and What Went Wrong? examples used this definition of success. 2. The project satisfied the customer/sponsor. Even if the project met initial scope, schedule, and cost goals, the couple paying for the house might not be satisfied. Perhaps the project manager never returned their calls and was rude to them or made important decisions without their approval. Perhaps the quality of some of the construction or materials was not acceptable. If the customers were not happy about important aspects of the project, it would be deemed a failure based on this criterion. Many organizations implement a customer satisfaction rating system for projects to measure project success. 3. The results of the project met its main objective, such as making or saving a certain amount of money, providing a good return on investment, or simply making the sponsors happy. If the couple liked their new home and neighborhood after they lived there for a while, even if it cost more or took longer to build or the project manager was rude to them, it would be a successful project based on this criterion. As another example, suppose the owners wanted to keep the house for just a few years and then sell it for a good return. If that happened, the couple would deem the project a success, regardless of other factors involved. Note that for many projects done to meet ROI objectives, financial success cannot be determined until sometime after the project is completed.

Project communications management

Project communications management involves generating, collecting, disseminating, and storing project information.

Project cost management

Project cost management consists of preparing and managing the budget for the project.

Project integration management

Project integration management is an overarching function that coordinates the work of all other knowledge areas. It affects and is affected by all other knowledge areas.

What do project management knowledge areas describe?

Project management knowledge areas describe the key competencies that project managers must develop. Project managers must have knowledge and skills in all ten of these areas, briefly described as follows:

Project procurement management

Project procurement management involves acquiring or procuring goods and services for a project from outside the performing organization.

Project quality management

Project quality management ensures that the project will satisfy the stated or implied needs for which it was undertaken.

Project schedule management

Project schedule management includes estimating how long it will take to complete the work, developing an acceptable project schedule given cost-effective use of available resources, and ensuring timely completion of the project.

Project scope management

Project scope management involves working with all appropriate stakeholders to define, gain written agreement for, and manage all the work required to complete the project successfully.

Integration management: tools and techniques

Project selection methods, project management methodologies, project charters, project management plans, project management software, change requests, change control boards, project review meetings, lessons-learned reports

Project stakeholder management

Project stakeholder management focuses on identifying project stakeholders, understanding their needs and expectations, and engaging them appropriately throughout the project. Note that PMI renamed project time management to project schedule management and project human resource management to project resource management in the PMBOK®

How do projects differ from operations?

Projects end when their objectives have been reached or the project has been terminated.

Quality management/Resource management: tools and techniques

Quality metrics, checklists, quality control charts, Pareto diagrams, fishbone diagrams, maturity models, statistical methods Motivation techniques, empathic listening, responsibility assignment matrices, project organizational charts, resource histograms, team building exercises

Scope management: tools and techniques

Scope statements, work breakdown structures, mind maps, statements of work, requirements analyses, scope management plans, scope verification techniques, and scope change controls

Stakeholder Management

Stakeholder registers, stakeholder analyses, issue logs, interpersonal skills, reporting systems

Opening case: Doug Milis, the Chief Executive Officer (CEO) of Global Construction, Inc., was summarizing annual corporate highlights to the board of directors. Like many other large construction companies, they had a very difficult year. After having scaled down operations a few years ago, this past year they had trouble finding enough qualified workers to meet the growing demand for new construction. When one of the board members asked what he was most proud of that year, Doug thought for a few seconds, and then replied....

Survival was because of: · Improved ability to quickly select & implement projects that contribute to the organization's success · Cancel projects harmful to growth/redirect projects · All projects align w business strategies · Standardized processes · Respond quickly to market changes

The triple constraint goals—scope, schedule, and cost—often have a specific __________ at the beginning of the project. For example, a couple might initially plan to move into their...?

TARGET new 2,000 square foot home in six months and spend $300,000 on the entire project. The couple will have to make many decisions along the way that may affect meeting those goals. They might need to increase the budget to meet scope and time goals or decrease the scope to meet time and budget goals. The other three constraints—quality, risk, and resources—affect the ability to meet scope, schedule, and cost goals. Projects by definition involve uncertainty and resources, and the customer defines quality. No one can predict with one hundred percent accuracy what risks might occur on a project. Resources (people) working on the house might produce different results at different quality levels, and material resources may vary as well. Customers cannot define their quality expectations in detail for a project on day one. These three constraints often affect each other as well as the scope, schedule, and cost goals of a project.

What is project management?

The application of knowledge, skills, tools and techniques to project activities to meet the project requirements.

Additional stakeholders would include?

The city council & mayor (interested in increasing revenues) They might suggest certain guidelines for the minimum value of the homes for providing adequate property taxes. The city may also have regulations to ensure the safety of the public in the area of the construction site. The local housing inspector would also be a stakeholder, concerned with ensuring that everything meets specific codes and regulations.

Who might the support staff include in this example?

The employers of the homeowners (might expect their employees to complete their work but allow some flexibility so they can visit the building site or take phone calls related to building the house), the general contractor's administrative assistant (would support the project by coordinating meetings between the buyers, the contractor, suppliers, and other stakeholders), and other people who support other stakeholders.

Who is the project team in this example? What must the project team know?

The project team may include several construction workers, electricians, carpenters, etc. These stake holders need to know what work must be completed and when. Will the required materials be in the construction site or must they provide their own? Work must be coordinated (carpenter can't install kitchen cabinets until the walls are completed).

Project constraints Every project is constrained in different ways. Some project managers focus on?

The triple constraint: scope, schedule, and cost constraints

Project managers should also possess general ____________ knowledge and skills. They should understand important topics related to? On some projects, it will be critical for project managers to have substantial experience in ______ or _________ of these general business areas. On other projects, project managers can _________ detailed responsibility for some of these areas to who? Even so, the project managers must be intelligent and experienced enough to know which of these ________ are most __________ and ______ is qualified to do the work. They must also make and/or take ________________ for all ______ project decisions.

business financial management, accounting, procurement, sales, marketing, contracts, manufacturing, distribution, logistics, the supply chain, strategic planning, tactical planning, operations management, organizational structures and behavior, personnel administration, compensation, benefits, career paths, and health and safety practices. one or several delegate to a team member, support staff, or even a supplier areas, important, who responsibility, key

Program managers are responsible for more than the delivery of project results; they are?

change agents responsible for the success of products and processes produced by those projects.

Project managers must not only strive to meet specific scope, schedule, cost, resource, risk, and quality requirements of projects, they must also?

facilitate the entire process to meet the needs and expectations of the people involved in or affected by project activities.

It is most important that portfolio managers have strong?

financial and analytical skills and understand how projects and programs can contribute to meeting strategic goals

Tactical goals are?

generally more specific and short-term than strategic goals, which emphasize long-term goals for an organization.

On the other hand, if the company has too many projects focused on financial performance and not enough focused on improving its work force, the portfolio manager might suggest what? Just like a personal financial portfolio, a business's portfolio should be

initiating more projects to support that strategic goal. diversified to account for risk.

project

is "a temporary endeavor undertaken to create a unique product, service, or result."

Programs are NOT __________ projects.

large

Examples of projects: They can be _______ or ________ and can involve ______ person or _____________. They can be done in ________ day or take ________ to complete.

large or small, one, thousands, one, years 1. A young couple hires a firm to design and build them a new house 2. A retail store manager works with employees to display a new clothing line 3. A college campus upgrades its technology infrastructure to provide wireless Internet access 4. A medical technology firm develops a device that connects to smart phones 5. A school implements new government standards for tracking student achievement 6. A group of musicians starts a company to help children develop their musical talents 7. A pharmaceutical company launches a new drug 8. A television network develops a system to allow viewers to vote for contestants and provide other feedback on programs 9. The automobile industry develops standards for electric cars 10. A government group develops a program to track child immunizations

They create portfolios based on? Such as?

meeting specific organizational goals maximizing the value of the portfolio or making effective use of limited resources

The project environment differs from ________________ to ________________ and ____________ to _____________, but there are some skills that will help in most project environments. These skills include?

organization, organization, project, project understanding change, and understanding how organizations work within their social, political, and physical environments. Project managers must be comfortable leading and handling change, since most projects introduce changes in organizations and involve changes within the projects themselves. Project managers need to understand the organizations they work in and how products are developed and services are provided. For example, it takes different skills and behavior to manage a project for a Fortune 100 company in the U.S. than it does to manage a government project for a new business in Poland or India. It also takes different skills and behaviors to manage a project in the construction industry from one in the entertainment or pharmaceutical industry.

By grouping projects into _______________, organizations can better tie their projects to? Portfolio management can also help organizations do a better job of managing its human resources by? Give an example.

portfolios meeting strategic goals. hiring, training, and retaining workers to support the projects in the organization's portfolio. For example, if the construction firm needs more people with experience in building apartment buildings, they can make necessary adjustments by hiring or training current workers in the necessary skills.

Organizations group projects into _______________ to help them make better? Such as? Give an example

portfolios investment decisions such as increasing, decreasing, discontinuing, or changing specific projects or programs based on their financial performance, risks, resource utilization, and similar factors that affect business value. If a construction firm has much higher profit margins on apartment buildings than single-family homes, for example, it might choose to pursue more apartment building projects. The firm might also create a new project to investigate ways to increase profits for single-family home projects.

PMIAA:

program management improvement and accountability act Dec 2016: designed to enhance best practices in project & program management throughout the gov

In addition to skills required for _________ managers, program managers must also possess strong?

project business knowledge, leadership capability, and communication skills.

List 10 super tools

project management software, change requests, lessons-learned reports, scope statements, work breakdown structures, requirement analyses, Gantt charts, kickoff meetings, status and progress reports

Program managers also coordinate the efforts of?

project teams, functional groups, suppliers, and operations staff supporting the projects to ensure that project products and processes are implemented to maximize benefits.

Many program managers worked as _____________ managers earlier in their careers, and they enjoy sharing their wisdom and expertise with their ____________ managers.

project, project

Program manager

provides leadership and direction for the project managers heading the projects within the program.

In the past, PM has focused primarily on? Today's PM's involve?

providing schedule and resource data to top management in only a few industries (military/construction), Today's PM's involve much more and are present in every industry. New tech= significant factor in many businesses & the use of interdisciplinary & global work teams has radically changed work env.

Project managers also work with the __________ to define ___________ for that particular project. Good project managers do not _________ that their definition of ___________ is the ______ as the sponsors' definition. They take the time to understand their sponsors' _____________.

sponsor, success, assume, assume, success, same, expectations

In any case, ___________ must provide some type of ________ goals for a project's ________, __________, and _________ and define other key _________ for a project. The __________ __________ should be communicating with the sponsor throughout the project to make sure the project meets his or her ____________.

sponsors, target, scope, schedule, and cost, constraints, project manager, expectations

A good project manager contributes to a project's _____________. Project managers work with...?

success the project sponsors, the project team, and the other people involved in a project to define, communicate, and meet project goals.

The ___________ criteria should help you to develop _______ ________________ __________( ) needed to track project __________. A project __________ ___________ plan should be created _______ in the project life cycle and _________ as needed.

success, key performance indicators KPI's, progress benefits management, early, updated

The application area refers to? For example?

the application to which project management is applied. a project manager responsible for building houses or apartment buildings should understand the construction industry, including standards and regulations important to that industry and those types of construction projects. A project manager leading a large software development project must know a lot about that application area. A project manager in education, entertainment, the government, and other fields must understand those application areas. The application area is defined by the product, service, or result. Many organizations have defined their approach to creating specific products. The project is about applying that approach, i.e., the product defines the project.

Figure 1-3 illustrates a framework to help you understand project management. Key elements of this framework include? Each of these elements of project management is discussed in more detail in the following sections.

the project stakeholders, project management process groups, knowledge areas, tools and techniques, project success, and the contribution of a portfolio of projects to the success of the entire enterprise.

Projects rarely finish according to the discrete scope, schedule, and cost goals originally planned. Instead of discrete target goals for scope, schedule, and cost, it is often more realistic to...?

to set a range of goals that allow for uncertainties, such as spending between $275,000 and $325,000 and having the home completed within five to seven months. These goals allow for inevitable changes due to risk, resources, and quality considerations.

It is crucial for project managers and their team members to determine which ________ will be most _________ for their particular projects. Selecting the appropriate _______ and ____________ (as well the processes, inputs, outputs, and life cycle phases, discussed later in this book) is part of project ____________.

tools, useful, tools, techniques, tailoring

Portfolio managers help their organizations make?

wise investment decisions by helping to select and analyze projects from a strategic perspective.

operations

work done in organizations to sustain the business

PROJECT MANAGEMENT PROVIDES THE FOLLOWING BENEFITS TO ORGANIZATIONS:

· Better control of financial, physical, and human resources · Improved customer relations · Shorter development times · Lower costs · Higher quality and increased reliability · Higher profit margins · Improved productivity · Better internal coordination · Higher work morale

1995 "CHAOS" study by: Standish Group

· Overall success rate of IT projects was only 16.2%, 31% of IT projects canceled before completion · Surveyors defined success as meeting project goals on time and on budget

PMP, why are PM skills vital for personal success?

· PMP: project management professional credential: salaries are on average 22% higher than those w/o credential · PM= also a vital skill for personal success (managing a family, budget, planning a wedding, remodeling a house, earning a college degree).

PRINCEWATERHOUSE COOPERS: later study

· Surveyed 200 companies from 30 countries · Found that over half of all projects fail · Only 2.5% of corporations consistently met targets for scope, schedule, and cost goals for all types of projects