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Lecture 2 Basics of Project Management

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Lecture 2 Basics of Project Management

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trynosk
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MANAGEMENT OF

ENGINEERING PROJECTS
MSCEPM601
LECTURE 2
Basics of project management
Dr Eng. ZJ Chihambakwe
Definition of project management
In order to understand project management, one must begin with the
definition of a project. A project can be considered to be any series of
activities and tasks that:
• Have a specific objective, with a focus on the creation of business value, to
be completed within certain specifications
• Have defined start and end dates
• Have funding limits (if applicable)
• Consume human and nonhuman resources (i.e., money, people,
equipment)
• Are multifunctional (i.e., cut across several functional lines)
Definition of project management
There is no general consensus on the definition of project management
• Project management is defined as the process of steering a project from the start
through its lifecycle (https://kissflow.com/project/project-management-basics/)
• A project is an endeavour in which human, financial and material resources are
organised in a novel way to undertake a unique scope of work, of given
specification, within constraints of cost and time, so as to achieve beneficial
change defined by quantitative and qualitative objectives (Turner, 1999)
• 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. Furthermore, project management
utilizes the systems approach to management by having functional personnel (the
vertical hierarchy) assigned to a specific project (the horizontal hierarchy)
(Kerzner, 2017)
Definition of project management
• Project management is a distinct area of management that helps in
handling projects.
• It has three key features to distinguish it from other forms of
management and they include:
❖a project manager,
❖the project team and
❖the project management system
Definition of project management
Project management is the application of knowledge, skills, and tools
necessary to achieve the project’s requirements. The knowledge, skills,
and tools are usually grouped into activities or processes . Some of the
activities within these groups include:
1. Project initiation
• Selection of the best project given resource limits
• Recognizing the benefits of the project
• Preparation of the documents to sanction the project
• Assigning of the project manager
Definition of project management
2. Project planning
• Definition of the work requirements
• Definition of the quality and quantity of work
• Definition of the resources needed
• Scheduling the activities
• Evaluation of the various risks
3. Project execution
• Negotiating for the project team members
• Directing and managing the work
• Working with the team members to help them improve
Definition of project management
4. Project monitoring and control
• Tracking progress
• Comparing actual outcome to predicted outcome
• Analyzing variances and impacts
• Making adjustments

5. Project closure
• Verifying that all of the work has been accomplished
• Contractual closure of the contract
• Financial closure of the charge numbers
• Administrative closure of the paperwork
Importance of managing projects
According to a survey by the Project Management Institute (PMI), only
58% of organizations realize the actual importance of project
management and how it allows them to effectively tackle the issues
they face.
Importance of managing projects
Successful project management can then be defined as achieving a continuous stream of project
objectives within time, within cost, at the desired performance/technology level, while utilizing the
assigned resources effectively and efficiently, and having the results accepted by the customer and/or
stakeholders.
The potential benefits from effective project management are:
• Clear identification of functional responsibilities to ensure that all activities are accounted for, regardless
of personnel turnover
• Minimizing the need for continuous reporting
• Identification of time limits for scheduling
• Identification of a methodology for trade-off analysis
• Measurement of accomplishment against plans
• Early identification of problems so that corrective action may follow
• Improved estimating capability for future planning
• Knowing when objectives cannot be met or will be exceeded
Defining success of a project
Project success is the completion of an activity within the constraints of
time, cost, and performance
More recently, the definition of project success has been modified to
include completion:
• Within the allocated time period
• Within the budgeted cost
• At the proper performance or specification level
• With acceptance by the customer/user
• With minimum or mutually agreed upon scope changes
• Without disturbing the main work flow of the organization
• Without changing the corporate culture
Defining success of a project
Apart from stimulating productivity, improving project transparency,
and providing a clear vision to the team, project management can bring
the following advantages to the table:
• Effective communication
• Efficient resource management
• Improved customer satisfaction
• Flexibility and higher risk tolerance
• Improved team morale
• Better quality of the output
• Retrospective learning
ENGINEERING PROJECT MANAGEMENT STAGES
An engineering project can be defined as a non-repetitive engineering
activity of any size, from any aspect of industry; projects will frequently
require a multi-disciplinary solution (Stone, 1988)
The main stages associated with a typical project are illustrated as follows
PROJECT MANAGEMENT LIFE CYCLE
Every project, from conception to
completion, passes through various phases
of a life cycle synonym to life cycle of living
beings. There is no universal consensus on
the number of phases in a project cycle.
Typical project consists of four phases-
Conceptualization, Planning, Execution and
Termination
A project management life cycle starts
when the project is initiated and ends
when the project is either completed or
terminated in one way or another.
PROJECT MANAGEMENT LIFE CYCLE STAGES
Project management life cycle – 5 Steps
Step 1. Initiation project life cycle
• Building a business case
• Conducting feasibility reports
• Involving stakeholders
• Creating a project initiation document
Step 2. Planning project life cycle
• Scope
• Resources
• Time
• Communication
PROJECT MANAGEMENT LIFE CYCLE STAGES
Step 3. Execution project life cycle
• share the vision
• plan for the project
• delegating tasks to team members, and
• send everyone on their way to get things done
Step 4. Monitoring project life cycle
• periodically checking your KPIs, you can catch issues and make corrections
quickly
Step 5. Closure project life cycle
• delivering the product to customers and
• submitting final reports
Project Life Cycle path
• The life cycle of a project from start
to completion follows either a “S”
shaped path or a “J “ shaped path
• In “S” shape path the progress is
slow at the starting and terminal
phase and is fast in the
implementation phase
• In “J” type cycle path the progress in
beginning is slow and as the time
moves on the progress of the
project improves at fast rate
How project management tools can help you
A well-designed project management software can help you execute well
through all the project management stages
• In the initiation stage, you meet with all the stakeholders to map out what
the workflow should look like and what data everyone needs along the way.
• In planning, you actually build the board and the form using the Kanban
board and test it.
• Execution happens when you are actually working on items and moving
them to different steps and stages in the workflow.
• Monitoring happens when the project manager takes an overall look at
where items are getting stuck. You can also create reports to show how long
items take to move from being worked on and how long they take to
complete.
• Closing happens when items are moved to the completed state and are
finished.
REASONS FOR FAILURE
• Resource deficiency – insufficient resources to complete the project.
• Inadequate time frame – having trouble completing the project on
time.
• Unclear goals – lack of detailed documentation can lead to
inappropriate results.
• Poorly managed stakeholder expectations – project scope changes
that are not agreed upon by stakeholders causing varying views of
quality, time, or budget.
• Inadequate risk management – failing to establish the risk associated
with each project can cause your project to fail.
REASONS FOR FAILURE
• Lack of resource planning
• Unclear Goals and Objectives
• Lack of project visibility
• Communication gaps
• Scope creep
• Unrealistic expectations
Popular project management approaches
• Phased approach in project
management
In this approach, each phase goes
through all five process areas from
initiation to closure. At the end of
every phase, all the work is
assessed and handed off to the
next phase in a sequential way.
• Lean project management
a data-driven approach that focuses
on improving the process and
eliminating waste through efficient
use of resources (cost, time, and
people)
Popular project management approaches
• Iterative and incremental project
management
a change-driven project management
methodology that was developed to
handle change and reduce inherent
project risks
• Critical chain project management
Critical chain project management
(CCPM) is used to plan and manage
projects while allowing room for
resource constraints (personnel,
equipment, and more)
Popular project management approaches
• Product-based planning
Product-based planning is a
structured project management
approach that focuses on outputs and
project deliverables (including
intermediate products), unlike
traditional approaches that focus on
activities and tasks
• Process-based management
Process-based project management
allows project managers to create,
manage, and improve projects that
align with the vision, mission, and
core values of a business
Popular project management approaches
• Project production management
Project production management (PPM) is a strategic approach that
applies theories and principles of operations science to better
understand and optimize project delivery
How to streamline project management
effectively
• Set a clear scope and seek stakeholder approval
• Build the best team
• Create a realistic project schedule
• Define project rules and responsibilities clearly
• Develop a comprehensive plan
• Delegate tasks and prioritise them accordingly
• Get sufficient resources to complete project
• Communicate well and often with all stakeholders
• Set clear milestones to measure success
• Anticipate change and maintain a flexible strategy
• Manage project risks proactively
• Invest in a project management software
Various types of project management structures
Knowledge areas of project management
• Project integration management
• Project scope management
• Project time management
• Project cost management
• Project quality management
• Project human resource management
• Project communication management
• Project risk management
• Project procurement management
• Project stakeholder management
Roles and responsibilities a project manager
1. Interpersonal
• Work with a diverse range of professionals
• Solve team disputes
• Build positive relationships
• Motivate
2 Information
• Communicate with all stakeholders effectively
• Keep people up-to-date
• Organize team meetings frequently
• Provide
Roles and responsibilities a project manager
3 Decisional and
• Make a range of decisions at each stage
• Stay clear and focused
• Balance scope, time, and resources
• Prevent scope creep and budget slippage

4 Management roles.
• Recruit and manage employees
• Manage finances
• Respond well to ambiguity
• Adhere to business priorities
How teams benefit from project management
• Organizations expect their teams to deliver more results with fewer
resources. These seemingly impossible expectations can not only be
fulfilled but also be exceeded if they take a project management
approach towards their work.
• the teams can benefit hugely by implementing some of the best
project management practices which includes utilising various project
management software
How teams benefit from project management
The rationale for following project management approach is as follows.
• Project management approach will help in handling complex, costly
and risky assignments by providing interdisciplinary approach in
handling the assignments. Example: R&D organizations.
• Project management approaches help in handling assignments in a
specified time frame with definite start and completion points
.Example handling customer orders by Industries involved in
production of capital goods.
• Project management approaches provide task orientation to personnel
in an Organization in handling assignments. Example: Organizations in
IT sector handling software development assignments for clients.

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