TYPICAL EXAMPLES OF PROJECTS

• Developing a new product or service • Effecting a change in structure, staffing, or style of an

organization • Designing a new transportation vehicle • Developing or acquiring a new or modified information

system • Constructing a building or facility • Building a water system for a community • Running a campaign for political office • Implementing a new business procedure or process • Responding to a contract solicitation.

PROJECT GOAL

Scop

e

Sche

dule

Budg

et

Qua

lity

Project objectives

EFFORTS AND RESOURCES REQUIRED DURING THE PROJECT LIFE

Define project

goal

Plan project

Execute Project

planClose

Project Evaluate Project

FinishStart Project Time Line

Efforts & Resources required

SYSTEMS DEVELOPMENT OVER THE LIFE CYCLE

Planning Analysis Design Implementation

Maintenance &

Support

WATERFALL MODEL OF IT PROJECT DEVELOPMENT

Definerequirements

Design

Build

Test

Implement

Maintain

WHY IS WATERFALL MODEL IS USEFUL?

• One phase is completed before the next is started.

• Sequential and logical flow of software development activities

• Model approach is good as it is more expensive to fix a bug or missing requirement later on.

• Suitable when developing large, more complex systems.

PLC & SDLC

Planning Analysis Design Implementation

Maintenance &

Support

Systems Development Life Cycle (SDLC)

Define project

goal

Plan proje

ct

Execute Project

plan

Close Project Evaluate

Project

Project Life Cycle (PLC)

DEFINITION PHASE

• Determine goals, scope and project constraints

• Identify members and their roles

• Define communication channels, methods, frequency and content

• Risk management planning

PLANNING PHASE - 1

• Resource Planning

• Work Breakdown Structure (WBS)

• Project Schedule Development

• Quality Assurance Plan

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PLANNING PHASE - 2 • Development of:–Detailed specifications– Schematics– Schedules–Other plans

• Breaking down of work packages• Individual assignments are made• Process of completion

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• For defining and organizing the total scope of a project

• First two levels - define a set of planned outcomes that collectively and exclusively represent 100% of the project scope.

• Subsequent levels - represent 100% of the scope of their parent node

WORK BREAKDOWN STRUCTURE

DEPLOYMENT PHASE

• User training

• Production review

• Start using

EXECUTION PHASE - 1

• Execute project plan and accomplish project goals

• Training Plan

• System Build

• Quality Assurance

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EXECUTION PHASE -2• Actual work is performed• System developed• Product created and fabricated• During this phase, bulk of the team work is

performed on various elements of the project.• Testing or checking of the work performed• Project cost is spent mostly in this phase

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TERMINATION PHASE - 1

• Termination occurs when the completed project is transferred to the customer.

• Resources are reassigned.• Project is formally closed out.• As specific sub-activities are completed, the

project shrinks in scope and costs decline rapidly.

TERMINATION PHASE - 2

• Contractual Closeout

• Post Production Transition

• Lessons Learned

PROJECT PHASES AND DELIVERABLES

Conceptualization & initialize project

Develop project plan &

charter

Execute & Control project

Close project

Evaluate project

Business case

Project charter & plan

Implementation Planning

AnalysisDesign

SDLC

Final project report &

presentation

Project evaluation & lesson learned

Information system

Deliverable Deliverable

Deliverable

Deliverable Deliverable

PLC PHASES

SDLC: Systems Development Life Cycle

Project goal &

expectations

Scope Schedule

Budget

SCOPE, SCHEDULE AND BUDGET RELATIONSHIP – THE TRIPLE CONSTRAINT

IMPACT OF TRIPLE CONSTRAINTS

• Increased Scope = increased time + increased cost

• Tight Time = increased costs + reduced scope

• Tight Budget = increased time + reduced scope.

KEY AREAS OF MANAGEMENT IN EXECUTION OF PROJECTS

• Scope Management• Issue Management• Cost Management• Quality Management• Communications Management• Risk Management• Change Control Management

WHY PROJECT MANAGEMENT? - 1

Projects are one of the principal means to bring change. For example:–Construction of roads, bridges, laying down

rail lines, building airport, sea ports etc. for better transportation.–Developing dams, rivers, canals & making

deep wells for bring water in the areas with shortage of water like Kutch in Gujarat and Banglore.

WHY PROJECT MANAGEMENT? - 2

– Hospitals for providing better heath services.–Metro-rail for rapid, energy saving, faster

and convenient.– Power plants for industrial development.– Steel plants, refineries, cement plants for

improving the economy.– Development of human resources by

establishing IITs, IIMs, Regional engineering and medical colleges.

–Malls for convenience

WHY PROJECT MANAGEMENT? - 3

• Project management has become one of the most popular tools for organizations to:– Improve internal operations.–Respond rapidly to external opportunities.–Achieve technological breakthroughs,– Streamlining new product development.–Meet the challenges arising from their

business environment.

WHY PROJECT MANAGEMENT? - 4

• Companies such as General Electric, Noika, Erickssons, Boeing, and Oracle became increasingly good at realizing all the goals of international competition and responding to customer as fast as possible, and maintaining competitive cost and operating level. These companies were successful by using project management as a competitive tool.

• Companies in the fields of construction, heavy manufacturing, insurance, healthcare, and software are all becoming project savvy .

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• Organize your approach• Generate a credible schedule• Track progress and control your project• Identify where to focus your efforts • Identify problems early – before there are crises• Saves you TIME….MONEY

If you fail to plan, PLAN TO FAIL

WHY PROJECT MANAGEMENT? - 5

PROJECT MANAGEMENT OFFICE (PMO)

• PMO is an organizational body or entity assigned various responsibilities related to the centralized and coordinated management of those projects under its domain.

• The responsibilities of a PMO can range from providing project management support functions to actually being responsible for the direct management of a project.

FUNCTIONS OF PROJECT MANAGEMENT OFFICE (PMO)

• A PMO oversees the management of projects, programs, or a combination of both.

• The projects may not be related to each other, other than being managed together.

• Some PMOs, do coordinate and manage related projects.

• The PMO focuses on the coordinated planning, prioritization and execution of projects of the parent organization’s or client’s overall business objectives.

WHO IS A STAKEHOLDER?• Project stakeholders are individuals and organizations

that are actively involved in the project, or whose interests may be affected as a result of project execution or project completion.

• They may also exert influence over the project’s objectives and outcomes.

• Stakeholders have varying levels of responsibility and authority when participating on a project and these can change over the course of the project’s life cycle.

• Their responsibility and authority range from occasional contributions in surveys and focus groups to full project sponsorship, which includes providing financial and political support.

STAKEHOLDERS OF PROJECT

INTERNAL EXTERNALS

Top management Clients

Accountant Competitors

Other functional managers

Suppliers

Project team members Environmental Groups

Political groups

Consumers

KEY STAKEHOLDERS ON A PROJECT - 1• Project manager. • Customer/user: There may be multiple layers of

customers. For example, the customers for a new pharmaceutical product can include:– The doctors who prescribe it, – The patients who take it ,and – The insurers who pay for it.

• Performing organization: The enterprise whose employees are most directly involved in doing the work of the project.

KEY STAKEHOLDERS ON EVERY PROJECT - 2• Project team members. • Project management team. • Sponsor. The person or group that provides the

financial resources, in cash or in kind, for the project. • Influencers. People or groups that are not directly

related to the acquisition or use of the project’s product, but due to an individual’s position in the customer organization or performing organization, can influence, positively or negatively, the course of the project.

• PMO: PMO can be a stakeholder if it has direct or indirect responsibility for the outcome of the project.

OTHER STAKEHOLDERS

• Owners • Investors,• Sellers and contractors, • Team members and their families,• Government agencies • Media outlets, • Individual citizens,• Temporary or permanent lobbying organizations,• Society-at-large.

CONFLICTING INTERESTS OF STAKEHOLDERS OF A NEW PRODUCT

• The vice president of research at an electronics firm may define new product success as state-of-the-art technology,

• The vice president of manufacturing may define it as world-class practices, and

• The vice president of marketing may be primarily concerned with the number of new features.

CONFLICTING INTERESTS OF STAKEHOLDERS OF REAL ESTATE PROJECT

• The owner of a real estate development project may be focused on timely performance,

• The local governing body may desire to maximize tax revenue,

• An environmental group may wish to minimize adverse environmental impacts, and

• Nearby residents may hope to relocate the project.

RELATIONSHIP BETWEEN STAKEHOLDERS AND THE PROJECT

Pr

Project

Pr

Project team

Project Management Team

Project Sponsor

Project Manager

INTERACTION OF PROJECT MANAGER WITH OTHER STAKEHOLDERS

Project Manager

Parent Organization

Other FunctionalManagers

External Environment

Top Management

Project Team

Accountant

Clients

PROJECT STAKEHOLDER MANAGEMENT CYCLE

Project Management

Team

Identify Stakeholders

Gather information on

stakeholders

Identify stakeholder’s Mission

Determine stakeholder’s strengths & weaknesses

Identify stakeholder’s

strategy

Predict stakeholder’s

behavior

Implement stakeholder’s

strategy

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PROJECT LIFE CYCLE STAGES

CONCEPTUALIZATION PLANNING EXECUTION TERMINATION

MANHOURS

WHAT IS DETAILED PROJECT REPORT (DPR)?

• DPR is a blue print of a project with complete details.

• The Detailed Project Report (DPR) is prepared carefully and with sufficient details about the project to ensure:– Appraisal, – Approval, and – Subsequent project implementation in a

timely and efficient manner.

MAJOR SECTIONS COVERED IN DPR • Sector background context • broad project rationale • Project definition, concept and scope • Project cost • Project institution framework • Project financial structuring • Project phasing • Project O&M framework and planning • Project execution• Project evaluation and closing

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VARIOUS FACTORS DURING PROJECT LIFE CYCLE

CONCEPTUALIZATION PLANNING EXECUTION TERMINATION

INTENSITYLEVEL

Client interest

Creativity

Resources

Project stake

Uncertainty Project Life Cycle Man

hours

Time

PROJECT CHARTER• It serves as an agreement between the project

sponsor and project team.• It documents the project’s Measurable

Organizational Values (MOV).• Defines its infrastructure• Summarizes the project plan details.• Defines the roles and responsibilities• Shows the project commitments• Explains the project control mechanisms.

DOCUMENTING THE PROJECT’S MOV

• MOV must be clearly defined and agreed upon before developing or executing the project plan.

• Once agreed upon, MOV for a project should not change.

• MOV drives the project planning process and is fundamental for all project-related decisions.

DEFINING THE PROJECT INFRASTRUCTURE

• Project charter defines:– All the people.– Resources.– Technology.– Method.– Project management processes– Knowledge areas required to support the project.

• Project infrastructure is the base for developing the project plan.

SUMMARIZING THE DETAILS OF THE PROJECT PLAN

• Project charter should summarize:– The scope.– Schedule.– Budget.– Quality objectives.– Deliverables– Milestones of the project.

DEFINING THE ROLES & RESPOSIBILITIES

• Project charter should identify the project sponsor, project manager, and the project team.

• Should specify when and how they will be involved throughout the project life cycle.

• Should specify the line of reporting.• should specify the person/group/department

responsible for specific decisions.

SHOWING EXPLICIT COMMITMENT TO THE PROJECT

• Project charter should detail the resources to be provided by the sponsor.

• Should specify who will take the ownership of the project’s product once the project is completed.

• Approval of project charter gives the project team the formal authority to begin work on the project.

SETTING OUT PROJECT CONTROL MECHANISMS

Project charter should outline a process for requesting and responding to proposed changes in:– Changes to project’s scope.– Changes to schedule.– Changes to budget.

PROJECT CHARTER TEMPLATE - 1(PROJECT NAME OR IDENTIFICATION)

• Project Stakeholders– Names – Titles or roles– Phone numbers– E-mail addresses

• Project Description– Background – Description of the challenge or opportunity– Overview of the desired impact

PROJECT CHARTER TEMPLATE - 2(PROJECT NAME OR IDENTIFICATION)

• Measurable Organizational Value (MOV)– Statement or table format

• Project Scope– What will be included in the scope of this project?– What will be considered outside the scope of this project?

• Project Schedule Summary– Project start date– Project end date– Timeline of project phases and milestones– Project reviews and review dates

PROJECT CHARTER TEMPLATE - 3(PROJECT NAME OR IDENTIFICATION)

• Project Budgetary Summary– Total project budget– Budget broken down by phase

• Quality Issues– Specific quality requirements

• Resources Required– People– Technology– Facilities

PROJECT CHARTER TEMPLATE - 4(PROJECT NAME OR IDENTIFICATION)

• Resources Required (continued)– Other– Resources to be provided• Resources• Name of resource provider• Date to be provided

PROJECT CHARTER TEMPLATE - 5(PROJECT NAME OR IDENTIFICATION)

• Assumptions and Risks– Assumptions used to develop estimates– Key risks, probability of occurrence, and impact.– Constraints.– Dependencies on other projects or areas within or

outside the organization.– Assessment project’s impact on the organization.– Outstanding issues.

PROJECT CHARTER TEMPLATE - 6(PROJECT NAME OR IDENTIFICATION)

• Project Administration– Communication plan– Scope management plan– Quality management plan– Change management plan– Human resources plan– Implementation and project closure plan