Overview Project Management Body of Knowledge (PMBOK © Guide 2008 Edition) 1-2-3 – Introduction

PMI & PMP The Project Management Institute (PMI) is project management professional association with over 500,000 member. Established in 1969 and located in US. Project Management Professional (PMP) credential recognizes demonstrated knowledge and skill in leading and directing project teams and in delivering project results within the constraints of schedule, budget and resources. PMI, PMBOK, PMP are registered marks of Project Management Institute, Inc.

The Project Management Framework Chapter 1 –Introduction Chapter 2 –Project Life Cycle and Organization Chapter 3 –Project Management Process for a Project

PMBOK Guide Is a standard (formal document that describes established norms, methods, processes and practices) Guidelines for managing individual projects A good practices which are applicable to most project most of the time A common vocabulary within project management profession A foundational project management reference PMI Code of Ethics and Professional Conduct is also requirement for PMP certification

Advantages of Using Formal Project Management Better control of financial, physical, and human resources Improved customer relations  Improved customer relations Shorter development times Lower costs Higher quality and increased reliability Higher profit margins Improved productivity Better internal coordination Higher worker morale (less stress)

What is Project? A Project is a temporary endeavor undertaken to create a unique, product, service, or result. Temporary = a definite beginning and end. Repetitive elements may be present but has fundamental uniqueness Is progressively elaborated. Distinguishing characteristics of each unique project will be progressively detailed as the project is better understood.

Project Attributes A project: Has a unique purpose Is temporary Is developed using progressive elaboration Requires resources, often from various areas Should have a primary customer or sponsor The project sponsor usually provides the direction and funding for the project Involves uncertainty

Project vs. Operational Work Projects • To attain its objectives and terminate • Create own character, organization, and goals • Catalyst for change • Unique product or services • Heterogeneous teams • Start and end date Operations • To sustain the business • Semi permanent charter, organization, and goals • Maintain status quo • Standard product or services • Homogeneous teams • Ongoing Examples • Producing a News letter • Writing and publishing a book • Implementing a LAN • Hiring a sales man • Arrange for a conference • Opening for a new shop • Producing the annual report Examples • Responding to customers requests • Writing a letter to a Prospect • Hooking up a Printer to a computer • Meeting with an employee • Attending a conference • Opening the shop • Writing a progress update memo

What is Project Management? The application of knowledge, skills, tools and technique to project activities to meet project requirements Project Management is accomplished through the application and integration of the processes which are grouped in the 5 process groups: Initiating Planning Executing Monitoring and Controlling Closing Due to the nature of change, managing project is iterative and goes through progressive elaboration throughout the project’s lifecycle

Managing Project The Project Manager is the person responsible for accomplishing the project objectives. Managing a project includes: Identifying requirements. Establishing clear and achievable objectives. Balancing the competing demands of quality, scope, time and cost. Adapting the specifications, plans, and approach to the different concerns and expectations of the various stakeholders. Progressive Elaboration -- definition Continuously improving and detailing a plan as more detailed and specific information and more accurate estimates become available as the project progresses, and thereby producing more accurate and complete plans that result from the successive iterations of the planning process.

Managing Project

The Trade-off Triangle Project Constraints Every project is constrained in different ways by its: Scope Schedule/Time Cost/Budget Quality Resources Risk If any one factor changes, at least one other factor is likely to be affected. It is the project manager’s duty to balance these competing constraints. COST/RESOURCES SCHEDULE/TIME The Triple Constraint or The Trade-off Triangle SCOPE/QUALITY

Project Flexibility Matrix Project Pembuatan Rumah Project Peluncuran pesawat ruang angkasa Project Video Conference Presiden

Projects and Strategic Planning Projects are means of Achieving organization’s strategic plan. Organizing activities that cannot be addressed within the organizations normal operational limits. Projects are typically authorized as a result of one or more of the following strategic considerations: Market demand Strategic opportunity/business need Customer request Technological advancement Legal requirements Ecological Impacts Social need

Project Management Framework

Project Management Knowledge Areas Four core knowledge areas lead to specific project objectives. Project scope management involves defining and managing all the work required to complete the project successfully. Project time management includes estimating how long it will take to complete the work, developing an acceptable project schedule, and ensuring timely completion of the project. Project cost management consists of preparing and managing the budget for the project. Project quality management ensures that the project will satisfy the stated or implied needs for which it was undertaken.

Project Management Knowledge Areas Four facilitating knowledge areas are the means through which the project objectives are achieved. Project human resource management is concerned with making effective use of the people involved with the project. Project communications management involves generating, collecting, disseminating, and storing project information. Project risk management includes identifying, analyzing, and responding to risks related to the project. Project procurement management involves acquiring or procuring goods and services for a project from outside the performing organization. One knowledge area (project integration management) affects and is affected by all of the other knowledge areas.

Project Management Tools and Techniques Project management tools and techniques assist project managers and their teams in various aspects of project management. Note that a tool or technique is more than just a software package. Specific tools and techniques include: Project charters, scope statements, and WBS (scope) Gantt charts, network diagrams, critical path analyses (time) Net present value, cost estimates, and earned value management (cost)

Project Success There are different ways to define project success: The project met scope, time, and cost goals. The project satisfied the customer/sponsor. The project produced the desired results.

Relationships Among Project Management, Program Management and Portfolio Management Project Management Office Portfolio Program Projects & Operation PMO

What is a Program? A program is: “a group of related projects managed in a coordinated way to obtain benefits and control not available from managing them individually.” A program manager provides leadership and direction for the project managers heading the projects within the program. ADVANTAGES Decreased risk Economies of Scale

Comparative Overview

Project Management Compared to Project Portfolio Management

Projects and Strategic Planning Projects are means of organizing activities that cannot be addressed within the organizations normal operational limits. Projects are typically authorized as a result of one or more of the following strategic considerations: A Market Demand & Organizational Need A Customer Request A Technological Advancement A Legal Requirement

Subprojects Projects are frequently divided into more manageable components or subprojects. Subproject are often contracted to an external enterprise or to another functional unit in the performing organization. Subprojects can be referred to as projects and managed as such

PMO A department that centralizes the management of projects. A PMO usually takes one of three roles: Project Support: Provide project management guidance to project managers in business units. Project Management Process/Methodology: Develop and implement a consistent and standardized process. Training: Conduct training programs or collect requirements for an outside company

Primary Function of PMO A Primary function of PMO is to support project managers in a variety of ways which may include, but are not limited to: Managing shared resources across all the projects administered by the PMO Identifying and developing project management methodology, practices & standards Coaching, mentoring , training and oversight Monitoring compliance with project management standard policies, procedures , and templates via project audits . Developing and managing project policies, procedures, templates, and other shared documentation ( organizational process assets); and Co coordinating communication across projects

Project Management Office (PMO) – Cont’d Home for project managers: Maintain a centralized office from which project managers are loaned out to work on projects. Internal consulting and mentoring: Advise employees about best practices. Project management software tools: Select and maintain project management tools for use by employees. Portfolio management: Establish a staff of program managers who can manage multiple projects that are related, such as infrastructure technologies, desktop applications and so on, and allocate resources accordingly.

Role of a Project Manager The Project Manager is the person responsible for accomplishing the project objectives. Project managers strive to meet the triple constraint by balancing project scope, time, and cost goals Depending on the organization structure , a project manager may report to functional manager. In other cases project manager may be one of the several project managers who report to a portfolio or program manager that is ultimately responsible for enterprise wide projects . In this type of structure, the project manager works closely with the portfolio or program manager to achieve the project objectives

Project Expediter and Coordinator Project manager’s role can very limited Project Expediter acts primarily as a staff assistant as communications coordinator. cannot personally make or enforce decisions. Project Coordinator has some power to make decisions Has some authority reports to a higher-level manager

Stakeholders Stakeholders are persons or organizations who are actively involved in the project or whose interests may positively or negatively affected by the performance or completion of the project. Stakeholders have varying levels of responsibility and authority and can change over the project life cycle Project management team must continuously identify both external and internal stakeholders Project manager must manage the influence of various stakeholders in relation to the requirements and balance stakeholders’ interest

Stakeholders Some examples of project stakeholders

Enterprise Environmental Factors Refer to both internal & external environmental factors that surround or influence a project’s success As an input in almost all project management process May enhance or constrain project management options May have positive or negative influence on the outcome Examples: Organizational culture, structure, and processes Organization’s established communications channels Government or industry standards Commercial databases Infrastructure Project management information Existing human resources Personnel administration Company work authorization systems Marketplace conditions Stakeholder risk tolerances Political climate

2 – Project Life Cycle and organization Chapter 2 The Project Life Cycle

The Project Life Cycle The project life cycle is the agglomeration of all phases in the project All projects are divided into phases, and all projects, large or small, have a similar life cycle structure.: Starting the project , organizing and preparing , carrying out the project work and closing the project At a minimum, project will have a beginning or initiation phase, an intermediate phase or phases, and an ending phase. Each phase has a defined endpoint

Characteristics of Project Life Cycle 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. Stakeholder influences, risk, and uncertainty, are greatest at the start of the project. These factors decrease over the life of the project. 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. …or… The cost of changes and correcting errors typically increases substantially as the project approaches completion.

Portfolios and Portfolio Management A portfolio is a collection of projects or programs and other work that are grouped together to facilitate effective management of that work to meet strategic business objectives. Portfolio managers help their organizations make wise investment decisions by helping to select and analyze projects from a strategic perspective

Project Phases and the Project Life Cycle A project life cycle is a collection of project phases that defines: What work will be performed in each phase What deliverables will be produced and when Who is involved in each phase How management will control and approve work produced in each phase A deliverable is a product or service produced or provided as part of a project

Handoffs Project phases evolve through the life cycle in a series of phases sequences called handoffs, or technical transfers. The end of one phase sequence typically marks the beginning of the next.

Phase-to-Phase Relationships There are three basic types of phase–to–phase relationships : A Sequential relationship : where a phase can only start once the previous phase is complete An Overlapping relationship : where the phase starts prior to completion of the previous one (Fast tracking). Overlapping phase may increase risk and can result in rework . An Iterative relationship : where only one phase is planned at any given time and the planning for the next is carried out as work progresses on the current phase and deliverables

Organizational Influences Some organizational aspects that influence how project are performed: Culture and style (Cultural norms) Organizational structure Degree of project management maturity Project management systems

Types of Organizational Structures (1) Functional Organization is grouped by areas of specialization Project generally occur within a single department Projectized Entire company is organized by projects Personnel are assigned and report to a project manager

Types of Organizational Structures (2) Weak Matrix Power rest with the functional manager Power of project manager = coordinator or expediter Balanced Matrix Power is shared between the project manager and the functional manager

Types of Organizational Structures (3) Strong Matrix Power rest with the project manager Composite

Organizational Structure Influences of organizational structure on projects

Organizational Structure

Organizational Process Assets Processes & Procedures Organizational standard processes such as standards, policies Standardized guidelines, work instruction, proposal evaluation criteria, and performance measurement criteria Templates Financial control procedures Procedures for prioritizing, approving, and issuing work authorization Etc. Corporate Knowledge Base Process measurement databases Project files Historical information & lesson learned knowledge bases Issue and defect management databases Configuration management knowledge bases Financial databases

3 – Project Management Process Chapter 3 Project Management Process for a Project

Project Management Process Two categories of project process: Product-oriented process  should be considered in project but not explained in PMBOK Project management process

Process Interaction I E C P M&C Project management processes are represented as discrete elements with well-defined interface In practice, they overlap and interact

Process Groups & Knowledge Areas Mapping

Next topic: Project Integration Management Thank You