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Chapter 1 Introduction

The document outlines the fundamentals of advanced project management, covering key concepts such as project identification, feasibility analysis, planning, scheduling, implementation, and termination. It emphasizes the importance of understanding project characteristics, the triple constraint of scope, time, and cost, and the role of stakeholders and project managers. Additionally, it discusses the project life cycle and the various phases a project undergoes from conception to evaluation.

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0% found this document useful (0 votes)
10 views

Chapter 1 Introduction

The document outlines the fundamentals of advanced project management, covering key concepts such as project identification, feasibility analysis, planning, scheduling, implementation, and termination. It emphasizes the importance of understanding project characteristics, the triple constraint of scope, time, and cost, and the role of stakeholders and project managers. Additionally, it discusses the project life cycle and the various phases a project undergoes from conception to evaluation.

Uploaded by

gebremedhn
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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1

Advanced Project
Management
Contents of the course

 Understanding the essence of project


and project management
 Project Identification
 Project feasibility analysis
 Project planning
 Project scheduling: CPM and PERT
 Project implementation
 Project termination
2
3

Chapter One

Understanding The Essence


of Project and Project
Management
What is Project?

 “Unique process consisting of a set of


coordinated and controlled activities with
start and finish dates, undertaken to
achieve an objective conforming to
specific requirements, including constraints
of time, cost, quality and resources” (ISO-
8402)
 “Project is a one shot, time limited, goal
directed, major undertaking, requiring
the commitment of varied skills and
resources” 4

(USA Project Management Institute)


What is project?...Cont’d

 A project is a temporary endeavour undertaken to


create a unique product or service.
 Therefore, a project
 is a planned set of activities
 has a scope
 has time, cost, and quality constraints
 is performed by people
 is planned, executed and controlled, or
 A project should have definite starting and ending
points (time), budget (cost), clearly defined scope or
magnitude of work to be done, and specific
performance requirements that must be met. 5
Example
 Developing a new product or service
 Effecting change in a structure, staffing or
style of an organisation
 Designing new transportation vehicle
 Developing or acquiring new or modified
information system
 Constructing a building or facility
 Building a water system for a community in a
developing country
 Running at campaign for political office
 Implementing a new business procedure or
process 6
Project Features

1. Temporary
 A project has a definite beginning and definite end
 The duration of a project is finite
 The opportunity or market window is usually temporary;
most projects have limited time frame in which to
produce the product or service
 Temporary does not necessarily mean the
duration of the project is short. It refers to the
project’s engagement and its longevity.
 Temporary does not typically apply to the product,
service, or result created by the project; but the
activities; otherwise, most projects are undertaken
7
to
create a lasting outcome.
Project Features…Cont’d

2. Unique result (uniqueness)


 Projects involve doing something that has not been
done before in the same environment
 No two projects are exactly the same even if the
plants are exactly identical or are duplicated.
 The project may require some innovation to be
completed
3. Progressive elaboration
 A project occurs step by step to define the product or
service, in a so called “progressive elaboration”
process.
 For instance, the development of a chemical
processing plant begins with the process engineering
8
to
define the characteristics of the process, and ends with
Project features… Cont’d

4. High level of sub contracting: A high percentage of


work in a project is done through contractors. The more
complex is a project, the more will be the extent of sub-
contracting.

5. Change: A project sees many changes through out its life.


While some of these changes may not have any major impact,
there can be changes which will change the entire course of
the project.

6. Risk and Uncertainty: Every project has a risk


associated with it.
The degree of risk and uncertainty will depend on how
a project has passed through the various stages of
its life cycle. 9
The Triple Constraint
 Every project is constrained in different ways by its
 Scope goals: What is the project trying to
accomplish?
 Time goals: How long should it take to
complete?
 Cost goals: What should it cost?

 It is the project manager’s duty to balance


these three often competing goals.

10
Fig1-1. The Triple Constraint of Project
Management

11
Project Stakeholders
 “A person or group of people who have a vested
interest in the success of the project and the
environment in which the project operates”
 Stakeholders include all members of the project team
as well as all interested entities that are internal or
external to the organization.

 The project team identifies:


 Internal and external,
 Positive and negative, and
 Performing and advising stakeholders in order to
determine the project requirements and the expectations of all
parties involved. 12
13
ensure a successful outcome.
various stakeholders in relation to the project requirements to
The project manager should manage the influences of these
Sponsor,
Environmental Funding body,
agency, Customer and users,
Maintenance team, Suppliers,
Government Sellers,
regulators, Business partners,
Consultants, Neighbours/
Functional Community/
managers Shareholders
Project Stakeholders…Cont’d
Project Vs Program/Plan

A project normally originates from a plan


which can be a national plan or corporate
plan.

Program, in general, is a group of related


projects that are managed in a coordinated
way to achieve certain objective.

Example,
 The national goal: Poverty Eradication
 Strategy: Increase productivity ( in all sectors)
 Development program: Increase agricultural
productivity
14
Project Vs Program (Cont …)

This may result in a number of projects like,


 Construction of dams ( irrigation infrastructure)
 Upgrading the skill of agricultural practices
 Construction of training centers

Health program may have a number of projects


like,
 Construction of hospitals
 Training of health officers
 Expansion of health centres.

A program is thus,
 larger in scope,
15
 not necessarily time bounded and

Difference Between Project and
Program
Project Program
Project includes all A program is defined as
activities to complete a an ongoing process or
given job. ongoing operation
/indefinite/.
It has narrow scope and It has broader scope
has shorter duration. and has longer duration.
Project is a part of It is a main activity.
program.
Project is individual A program is a group of
activity. projects managed in a
coordinated way to
obtain benefits not
available from 16

managing them
17
18

 The art of organising, leading,


reporting and completing a project
through people.
 The initiation, planning, execution,
Project control and termination of projects in a
Manageme formal, directed and intelligent fashion.
nt  Project management is “application of
knowledge, skills, tools, and techniques to
project activities to meet the project
requirements.”
 project management comprises the 5
Process Groups: initiating, planning,
executing, monitoring and
controlling, and closing.
 Therefore, project management is causing
a planned undertaking to happen.
 A project manager is a person who
causes things to happen.
Project management includes

 Managing a project typically includes, but is


not limited to:
 Identifying requirements;
 Addressing the various needs, concerns, and
expectations of the stakeholders in planning and
executing the project;
 Setting up, maintaining, and carrying out
communications among stakeholders that are
active, effective, and collaborative in nature;
 Managing stakeholders towards meeting
project requirements and creating project
deliverables;
 Balancing the competing project
constraints, which include, but are not limited
to:
19
Scope, quality, schedule, budget,
Project management objectives

 Coordinate the various interrelated processes of the


project
 Ensure project includes all the work required and only the
work required to complete the project successfully
 Ensure the project is completed on time and within
budget
 Ensure the project will satisfy the need for which it was
undertaken
 Ensure the most effective use of the people involved
with the project
 Promote effective communication between the project
team and members and key stakeholders
20

 Ensure the project risks are identified, analyzed and


Why Project Management?
 Because companies are organized around projects
(and processes).
 Because project management is recognized as a
core competence.
 Because project management is a discipline in
disarray—we just don’t know how to manage
projects well.
 Because project management differs in significant
ways from ordinary management.
 1/4th of world GDP is generated from projects.
 More than sixteen million people regard project
management as their profession; on average, a
21

project manager earns more than $82,000 per


Advantages of Project Management

 Better control of financial, physical, and human


resources
 Improved customer relations
 Shorter development times, lead times
 Lower costs
 Higher quality
 Higher profit margins
 Improved productivity

22
The criteria for success in
Project management?

Completion on time

Completion within budget


Completion within
expected quality
Completion with full
functionality
With complete Customer
Satisfaction
23
Project Management Knowledge Areas

Project
Integration
Project Project
Management
Scope Quality
Management Management

Project
Risk Project Human
Management Project
Resource
Time
Management
Management

Project
Communications Project
Management Cost Project
Management Procurement
Management

24
Skills, Competencies of the
project management
 Leadership--articulate the vision and hold everyone
accountable to it
 An ability to develop people
 Communication competencies
 Interpersonal competencies
 Able to handle stress
 Problem solving skills
 Time management skills
 Negotiation skills

25
Key role of project manager

 A Good Project Manager


 Takes ownership of the whole project
 Is proactive, not reactive
 Adequately plans the project
 Is Authoritative (NOT Authoritarian)
 Is Decisive
 Is a good Communicator
 Manages by data and facts, not uniformed
optimism
 Leads by example
 Has sound Judgement
 Is a Motivator
 Is Diplomatic 26

 Can Delegate
Project Manager Roles and
Interactions

27
28

 Program management is the


application of knowledge, skills,
tools, and techniques to a program
in order:
 To meet the program requirements
and
 To obtain benefits and control not

Program available by managing projects


individually.
Managem  Projects within a program are
ent related through the common
outcome or collective capability.
 If the relationship between projects
is only that of a shared client, seller,
technology, or resource, the effort
should be managed as a portfolio of
projects rather than as a program.
29

Program management focuses on:


 The project interdependencies and Helps to determine
the optimal approach for managing them.
 Actions related to these interdependencies may
include:
 Resolving resource constraints and/or conflicts that
affect multiple projects within the program,
 Aligning organizational/strategic direction that
affects project and program goals and objectives, and
 Resolving issues and change management within a
shared governance structure.
Project Life Cycle
 A project life cycle is the series of phases that a project passes
through from its initiation to its closure.
 The phases are generally sequential, and their names and numbers
are determined by:
 The management and control needs of the organization or
 Organizations involved in the project,
 The nature of the project itself, and
 Its area of application.
 The phases can be broken down by functional or partial
objectives, intermediate results or deliverables, specific
milestones within the overall scope of work, or financial
availability.
 Phases are generally time bounded, with a start and ending or control
point.
30
31
Project Life Cycle…cont’d

 The generic life cycle structure generally displays the following


characteristics:
 Cost and staffing levels are low at the start, peak as the work is
carried out, and drop rapidly as the project draws to a close.
 The typical cost and staffing curve above may not apply to all
projects. A project may require significant expenditures to secure
needed resources early in its life cycle, for instance, or be fully
staffed from a point very early in its life cycle.
 Risk and uncertainty are greatest at the start of the project. These
factors decrease over the life of the project as decisions are reached
and as deliverables are accepted.
 The ability to influence the final characteristics of the project’s
product, without significantly impacting cost, is highest at the start
of the project and decreases as the project progresses towards
completion.
 The cost of making changes and correcting errors typically
increases substantially as the project approaches completion.
32
Project Life Cycle…Cont’d

33
Project Life Cycle…Cont’d

 Regardless of the scope or complexity, any project goes through a


series of stages during its life.
Four stages in the life of a project
 Phase I : Conception and selection
 Phase II : Planning and Scheduling
 Phase III : Implementation, Monitoring and
Control
 Phase IV : Evaluation and Termination

34
35

Functions performed in:


Phase I Phase II Phase III Phase IV
Conception & Planning & Implementation, Evaluation
selection Scheduling Monitoring & and
Control
Termination
• Identify a need • Set up • Procuring • Training
for a project technical teams materials operational

be achieved by
Functions performed
Establish goals to •
to decide on in: Building and
testing the tools
staff
how the project • Transfer of
the project • Developing
• Estimating the can be support system materials
amount that the implemented. • Producing the • Transferring the
firm will have to • Plan for the system that is responsibilities
commit for the requirements of aimed at. • Releasing
project personnel, • Verifying whether surplus that
• Presenting the finance, the performance remain after
project idea or materials etc. is up to the laid use.
various down standard
• Prepare a • Releasing the
alternative ideas • Making
to the schedule modifications if project staff for
management and required. the next
get their approval assignment.
Project Management
Process Groups

36
Process Groups Interact in a
Phase or Project

37
Project Boundaries

38
Thank you

39

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