Project Management

Processes
 Common project management
process interactions
Monitoring & Controlling
Processes
Planning

Enter phase/ Initiating Closing Exist phase/

start project Processes Processes End project

Executing

Project Management Process Groups

Project cycle – ODA project in
Vietnam
Process groups interact in a phases
of project
Initiating process
 Initiating process
• Consists of those processes performed to
define (1) a new project or (2) a new
phase of an existing project by obtaining
authorization to start the project or
phase.
• First stop of initiating process is to develop
the project charter
• Second stop is stakeholder identification
1. Project Charter
 Project charter input
• Contrast
• Project statement of work
• Business case
• Organizational process assets
• Enterprise environmental factors
 Project charter input
• Contrast
• Project statement of work
• Business case
• Organizational process assets
• Enterprise environmental factors
 Project charter input
• Contrast
• Project statement of work
• Business case
• Organizational process assets
• Enterprise environmental factors
 Project statement of work
• The statement of work (SOW) is a
narrative description of products or
services to be delivered by the project
– Internal project: SOW is provided by project
initiator/sponsor, based on (1) business
needs, (2) product, (3) service requirements
– External project: SOW can be received from
the customer as part of a bid document (e.g.,
request for proposal/ information/ bid/ part of
a contract)
 Project statement of work
• The content of SOW should contain or consider
all of the following elements:
– Business need
– Product scope description
– Strategic Plan
 Project charter input
• Contrast
• Project statement of work
• Business case
• Organizational process assets
• Enterprise environmental factors
 Business case
• The business case or similar document
provides the necessary information from a
business standpoint to determine whether
or not the project is worth the required
investment.
 Business case
– The business case is created as a result of
one or more of the following
• Market demand
• Organizational need
• Customer request
• Technological advance
• Legal requirement
• Ecological impacts
• Social need
 Business case
• A business case is a document which
justifies the start-up of a project. It
includes:
• problem or opportunity that exists in the business;
• a list of the available options for delivering a
solution to resolve the problem;
• a list of the costs and benefits associated with
each solution option;
• a recommended solution option for approval.
 Project charter input
• Contrast
• Project statement of work
• Business case
• Organizational process assets
• Enterprise environmental factors
 Organizational process assets
• Organization process assets refers to the
organization’s policies, guidelines,
procedures, plans, approaches, or
standards for conducting work and
including project work
• Organization process assets includes the
information the organization has learned
on previous projects
 Project charter input
• Contrast
• Project statement of work
• Business case
• Organizational process assets
• Enterprise environmental factors
 Enterprise environmental
factors
• Enterprise environmental factors refer to
the factors outside of the project itself that
have (or may have) significant influence on
the success of the project
• Environmental factors include:
– Organizational or company culture and
structure
– Governmental or industry standards
– Infrastructure
 Enterprise environmental
factors
– Human resources
– Personnel administration
– Organization’s work authorization system
– Marketplace conditions
– Commercial databases
– Project management information systems
2. Stakeholder identification
 Stakeholder identification
• In the initiation phase, all stake holders
should be identified.

• Stakeholders interested in value of IT

– Investors
– Requirement decision makers
– Users of IT services
• Providers of IT services
– Managers
– Developers or vendors
– Operators
• Other
– Security, privacy and/or risk officers
– Assurance advisors
Content of project
charter
 Minimum elements of project
charter
• Purpose or justification for the project
• Business need for the project
• Business justification for the project, including
return on investment analysis
• High-level project description or product
description
• Requirements that must be completed
satisfactorily according to stakeholder,
sponsor, and customer expectations
 Minimum elements of project
charter
• Stakeholder influences
• Involvement of other departments (in the
functional organization) and the level of
participation needed
• Constraints
• Assumptions
• Summary milestone schedule (preliminary)
• Summary budget (preliminary)
• Name of the project manager and their authority
levels
Project charter sign-off
 Project charter sign-off
• Project charter isn’t complete until you’ve
received sign-off from sponsor, senior
management, and key stakeholders
Developing a Preliminary
Project Scope Statement
 Input
• Project charter
• Project SOW
• Enterprise environmental factors
• Organizational process assests
 Preliminary scope statement
should contain
• Project objectives
• Characteristics of the project or service of
the project
• Product objectives
• Project deliverables
• Requirements (both product and project)
• Exclusions from scope (project
boundaries)
 Preliminary scope statement
should contain
• Constraints
• Assumptions
• High – level risk list and definition
• Milestones
• Initial WBS (work breakdown structure)
• Cost estimate
• Configuration management requirements (
• Project acceptance criteria
Planning process
 1

2
Develop
3
Project
4
Management
Plan 5
- Data Flow 6
Diagram
7

10

11
 1

Define
Scope -
Data Flow
Diagram
2

Create WBS - Data Flow Diagram

 Characteristic of an output structure

An example of output
structure for a road-
building project
An example of process structure for a road-building project
Level of detail – Examples of output and process structure
Selecting appropriate time-frame for process evaluation
4

Collect Requirements - Data Flow Diagram

5

Determine Budget - Data Flow Diagram

6

Develop Schedule - Data Flow Diagram

7

Plan Quality - Data Flow Diagram

8

Develop Human Resource Plan - Data Flow Diagram

9

Plan Communication - Data Flow Diagram

10

Plan Risk Management - Data Flow Diagram

 11

Plan
Procurements
Data Flow
Diagram
9

Develop Human Resource Plan - Data Flow Diagram

 Selecting and prioritizing projects
• Selection methods vary depending on
– The company
– The people serving on the selection committee
– Criteria used
– The project

– Can be purely financial

– Can be purely marketing
– Can be based on public perception (let’s customers
or affected people talk) or political perception.
– Most cases, the decision is based on a combination
of all of these and more
 Selection methods
Mathematical models

Benefit measurement
Cost - benefit
methods

Scoring models

Cash flow
Net present value
analysis techniques

Payback period

Discounted cash flow

Internal rate return

 Sequence of initiating process

Develop a Under take Establish the Appoint the

business case a feasibility study terms of reference project team

Known as Set up a
project office
Develop Project
project charter definition report
Perform phase
review