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Computer Applications in ProjectManagement
Lect#1
Overview and Concepts of ProjectManagement
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Objective of this Course
This course is especially designed for technical managers of all
levels involved in Project Management dealing in todays
engineering and construction market which is highly
competitive, driving profit margins down as risks increase. It
only takes one failed project to wipe out an entire years profit.
As a project-based organization that depends upon theaccuracy of decisions made every day, one needs best-in-class
project management solutions that build a competitive
advantage for the field and office. Primavera offers the most-
specified project management solutions in the industry to help
you profitably manage the business of engineering and
construction. The course will provide the fundamental training
on Primavera and MS Project software to handle different
complex project management activities.
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Mid Term Exam 20 Percent
Final Exam 30 Percent
Assignments/Quizzes 25 Percent (Lect-Summariesfor DLs)
Research Paper/Project 25 Percent
Grade Distribution
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All classes are Smoke and Mobile Free. Timely
submission of Homework /Assignments is mandatory
and if not turned in when due, the student will be
graded negatively. Individual homework meansindividual effort.
Homework may be submitted via E-Mail and
Fax in case individual is out of town/country.
Important: There will be surprise quizzes.
Misc. Instructions
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OUT LINE FOR TODAY
What is a project?
What is Project Management?
The Context for Project Management The Project Management Process
Knowledge areas for project
management
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What is a Project?
A project is a sequence oftemporary, unique,complex and connected activities having one
goal or purpose and that must be completed
by a specific time, within budget, and
according to specifications.
A project is a group of activities that are to beundertaken with limited resources to yield
specific objectives in a specific time in a
specific locality. A project has a specific
starting point, and a specific ending point.
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Contd
An investment on which resources are used
to create assets that will produce benefitsover an extended period of time.
PMI has defined the project as single effortundertaken in order to create unique projector service.
ISO 10006 Standard defines the project as,unique processes, consisting of a set of
coordinated and controlled activities withstart and finish dates, undertaken to achievean objective conforming to specificrequirements, including the constraints oftime, cost and resources.
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Project Inputs Project Output(s)
Time & Cost Limits
Scope Constraint
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What is a Project (Contd) Unique Activities
The project has never happened before and willnever happen again under the same conditions.
Complex Activities
Not simple, repetitive acts, such as mowing thelawn, running the weekly payroll, washing the car,
or loading the delivery truck
Connected Activities
There is some order or sequence
Output from one activity is input to another.
Temporary Activities
Start and Finish Dates
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What is a Project (Contd)
One Goal
Projects must have a single goal.
Specified Time
Projects have a specified completion date
Within Budget
Projects also have resource limits (people, money,
machines)
According to Specification
The customer or recipient expectation
Self-imposed
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What is a Program & Program
Management?
A program is different from a project. Programs are larger in scope
and comprise multiple inter-related projects.
A program is a group of related projects managed in a coordinatedway to obtain benefits and control not available from managing
them individually.
In contrast with project management, program management is the
centralized, coordinated management of a group of projects to achieve
the program's strategic objectives and benefits.
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What is a Program & Program
Management?
There are two different views of how programs differ
from projects.
On one view, projects deliver outputs; programs create outcomes.
On this view, a project might deliver a new factory, hospital orIT
system. By combining these projects with other deliverables and
changes, their programs might deliver increased income from a
new product, shorter waiting lists at the hospital or reduced
operating costs due to improved technology.
The other view is that a program is nothing more than either a large
project or a set of projects. On this second view, the point of having
a program is to reduce coordination costs and risks.
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What is a Program & Program
Management?
Successful projects deliver on time, to budget and to specification,
whereas successful programs deliver long term improvements to
an organization.
Many electronics firms have program managers who areresponsible for both individual product releases (projects) and the
coordination of multiple releases over a period of time (an ongoing
operation).
For example,
Publishing a newspaper or magazine is also a program with each
individual issue managed as a project.
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What is a Project (Contd)
What is a Portfolio & Portfolio Management?
A portfolio is a collection of programs and/or projects and/or other
work that are grouped together to facilitate effective management of
that work to meet strategic business objectives.
The projects and programs in the portfolio may not necessarily be
interdependent or directly related.
Organizations manage their portfolios based on specific goals. One
goal of portfolio management is to maximize the value of the portfolio
by careful examination of candidate projects and programs for
inclusion in the portfolio and the timely exclusion of projects not
meeting the portfolios strategic objectives.
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Portfolio Management Vs. Program
Management
Portfolio Management:
A portfolio comprises a number of programs and/or projects, that are not
necessarily linked by common objectives (other than at highest level), but
rather are grouped together to enable better control to be exercised over
time.
Program Mgmt Vs. Portfolio Mgmt:
Program Management Portfolio Management
Consist of series of projects Consists of number of programs and/or
projects
That are linked by common objectives That are not necessarily linked by
common objectives (other than at highest
level)
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What is a SubProject?Projects are frequently divided into more manageable
components or subprojects, although the individualsubprojects can be referred to as projects and managedas such. Subprojects are often contracted to an external
enterprise or to another functional unit in the performingorganization.
Subprojects according to human resource skill requirements,such as plumbers or electricians needed on a construction
project.
Subprojects involving specialized technology, such as theautomated testing of computer programs in a softwaredevelopment project.
What is a Project (Contd)
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Project Parameters (Constraints)
Cost
Time
Scope
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What is a Project (Contd)Triple Constraint: Trade-off between Time, Cost and Scope
TimeCost
Scope
Quality
The triple constraint is often depicted as
a triangle where one of the sides or one
of the corners represent one of the
parameters being managed by the
project team.
Project managers often talk of a triple
constraintproject scope, time and
costin managing competing project
requirements. Project quality is affected
by balancing these three factors. High
quality projects deliver the requiredproduct, service within scope, on time,
and within budget. The relationship
among these factors is such that if any
one of the three factors changes, at
least one other factor is likely to be
affected.
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What is a Project (Contd)Triple Constraint: Trade-off between Time, Cost and Scope
If the duration (time) of your project schedule decreases, you might need
to increase budget (cost) because you must hire more resources to do
the same work in less time. If you cant increase the budget, you might
need to reduce the scope because the resources you have cant do all
of the planned work in less time.
If you must decrease a projects duration, make sure that overall project
quality is not unintentionally lowered. For example, testing and quality
control often occur last in a software development project; if the project
duration is decreased late in the project, those tasks might be the ones
cut back. You must weigh the benefits of decreasing the project duration
against the potential downside of a deliverable with poorer quality.
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What is a Project (Contd)Triple Constraint: Trade-off between Time, Cost and Scope
If your project scope increases, you might need more time or more
resources (cost) to do the additional work.
If the project scope increases after the project has started, its called
scope creep. Changing project scope midway through a project is notnecessarily a bad thing.
Changing project scope is a bad thing only if the project manager doesnt
recognize and plan for the new requirementsthat is, when other
constraints (cost, time) are not correspondingly examined and, if
necessary, adjusted.
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Project Management
Project Management is an organized venture of managingprojects
Project management is the application of knowledge, skills,tools, and techniques to project activities in order to meet
or exceed stakeholder needs and expectations from aproject
Meeting stakeholder needs and expectations involves
balancing competing demands among:
Scope, time, cost, and quality.
Stakeholders with differing needs and expectations.
Identified requirements (needs) and unidentified
requirements (expectations).
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Modern Tools - Technique
PERT/CPM (Program Eval & Review Tech)
LinearResponsibility Charts
Gantt Charts and Milestone Charts
Work Breakdown Structures
Project Action Plans
Computers
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Operations and Projects
Two may overlap yet they share many characteristics like:
Performed by people.
Constrained by limited resources.
Planned, executed, and controlled.
Operations are ongoing and repetitive while projects aretemporary and unique.
The objectives ofprojects and operations are fundamentallydifferent. The purpose of a project is to attain its objectiveand then terminate. Conversely, the objective of anongoing operation is to sustain the business.
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Operations and Projects (Contd..)
Operations may include activities suchas: Financial management and control
Continuous manufacture
Product distribution
Projects may include activities such as: Developing a new product or service.
Effecting a change in structure, staffing, or styleof an organization.
Developing or acquiring a new or modifiedinformation system.
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1. Projects are Temporary
A project can thus be defined in terms of its distinctivecharacteristics-aproject is a temporary endeavorundertaken to create a unique productorservice.
Temporary means that every project has a definitebeginning and a definite end.
The end is reached: When the projects objectives have been achieved, or
When it becomes clear that the project objectives will not orcannot be met and the project is terminated.
Temporary does not necessarily mean short in
duration: many projects last for several years.
The duration of a project is finite: projects are not ongoing efforts.
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2. Product of a Project is unique
Projects involve doing something that has not beendone before and which is, therefore, unique.
For example, many thousands of office buildings
have been developed, but each individual facilityis uniquedifferent owner, different design,different location, different contractors, and soon.
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The Context for Project
Management The Project Life Cycle
Project Stakeholders
Organizational Influences
Key General Management Skills
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The Project Life Cycle
The project life cycle serves to define the beginningand the end of a project
The life cycle is normally divided into a number of
phases, to provide better management control with
appropriate links to the ongoing operations of the
performing organization.
Each project phase is marked by completion of one
or more deliverables
A deliverable is a tangible, verifiable work product
such as a
feasibility study or a detailed design
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A Generic Life Cycle
The level of uncertainty is highest and, hence, risk of
failing to achieve the objectives is greatest at the start of
the project. The certainty of completion generally gets
progressively better as the project continues.
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Project Stakeholders
Project stakeholders are individuals and organizationswho are actively involved in the project, or whoseinterests may be positively or negatively affected as aresult of project execution or successful projectcompletion.
The project management team must identify thestakeholders, determine what their needs andexpectations are, and then manage and influence thoseexpectations to ensure a successful project.
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Key Stakeholders
Key stakeholders on every project include:Project manager
the individual responsible for managing the project.
Customer
the individual or organization who will use the project product
Performing organization
the enterprise whose employees are most directly involved indoing the work of the project.
Sponsor
the individual or group who provides the financial resources, incash or in kind, for the project.
Project team membersthe people doing the work on the project
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Organizational Influences Conduct of Projects is influenced by:
Organizational Systems
The organizations tend to have management systems in place tofacilitate project management. For example, their financial systemsare often specifically designed for accounting, tracking, andreporting on multiple, simultaneous projects.
Organizational CultureConservative or Aggressive
Participative or Authoritarian
A project manager with a highly participative style is appropriate toencounter problems in a rigidly hierarchical organization, while aproject manager with an authoritarian style will be equallychallenged in a participative organization.
Organizational StructureRange from fully functional to totally project oriented.
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Key General Management Skills
General management encompasses planning, organizing, staffing,executing, and controlling the operations of an ongoing enterprise.
Some general management skills are critical for successful project
management:
Leading
Communicating
Negotiating
Problem Solving
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Leadership
Leadership is about integrity
Transformation leaders interact with team members in a
positive and inspiring manner.
A leader has a vision that is fueled by an overall
confidence and willingness to take risks.
Sharpens and utilizes peoples skills, intelligence, andtalents to attain a goal, create an excellent product,
accomplish a task or mission, or reach goals and
objectives
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Communicating
Exchange of information
Internal & external
Formal & informal
Vertical and horizontal
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Negotiating
Negotiating involves conferring with others
to come to terms with them to reach an
agreement. Negotiations can be on the
following:
Scope, cost and schedule
Changes to scope ,cost and schedule
Contract terms and conditions
Assignments and resources
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Problem solving
A combination of problem definition and
decision making
Problem definition requires distinguishing
between causes and symptoms
Decision making includes analyzing the
problem to identify viable solution
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Assignment #1
Select the organization of your own choice (may be your own) anddevelop:
Organization Chart
And Identify its:
Organizational Structure with proper justification
(For example, if your organization is a matrix org then you wouldspecify which type of matrix org with proper reasoning)
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Project Management Process
The purpose of the Project
Management process is to identify,
establish, coordinate and monitor
activities, tasks and resources
necessary for a project to produce a
product and/or service meeting the
agreed requirements.
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Planning provides documented executing plans and
the updates as the project progresses.
InitiatingProcesses
PlanningProcesses
ControllingProcesses
Executing
Processes
ClosingProcesses
Project Management Process
K l d A f P j t
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Knowledge Areas for Project
Management
Project Integration Management
Project Scope Management
Project Time Management
Project Cost Management Project Quality Management
Project Human Resource Management
Project Communications Management
Project Risk Management Project Procurement Management
M i f th P j t M t P t th
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Mapping of the Project Management Processes to theProject Management Process Groups and the Knowledge
Areas
Click to view
A F k f P j t
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A Framework for Project
Management
O t f P j t
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Outcomes of Project
Management
As a result of successful implementation of the process: the scope of the work for the project will be defined;
the feasibility of achieving the goals of the project with availableresources and constraints will be evaluated;
the tasks and resources necessary to complete the work will besized and estimated;
plans for execution of the project will be developed andimplemented;
progress of the project will be monitored and reported;
actions to correct deviations from the plan and to preventrecurrence of problems identified in the project, will be takenwhen project targets are not achieved.
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Results of Poor Project Management
Original objectives not met
Project cost overruns
Schedule overruns
Project may not be completed
Personal misunderstandings and
differences, often resulting in
conflict
Poor quality project outputs
Failure to deliver anticipated
business benefits, leading to
dissatisfied management and
project members
Insufficient resources
PAIN