1. Welcome to Session 3 – Project Management Process Overview
Project Management Certificate Program
Welcome to Session 3 – Project Management Process Overview
Instructor: Phyllis Sweeney

2. Project Management Certificate Program
Class Outline
Discuss Project Management Processes over the next 3 classes
Processes
Major Activities
Deliverables
Distinguish the difference between a project life cycle and project management process
Project Management Certificate Program

3. Session 3 Learning Objectives
The student will be able to:
Identify the Project Management Processes
Produce a Project Overview Statement
Work within their teams
Project Management Certificate Program

4. Project Management Processes
Projects are composed of processes
Processes are defined as a series of actions bringing about a result
Project processes fall into one of two major categories
Product-oriented Processes
Specify and create the project through the lifecycle – previous exercise
Project Management Processes
Describe and organize the work of the project  
Product-oriented processes – lifecycle – sdlc
Phases --- activities-----milestones---deliverables
Project Management Certificate Program

5. Project Management Processes
Project management processes and product-oriented processes overlap and interact throughout the project.
Project management processes; however, are not discrete, one-time events
Are overlapping activities, which occur at varying levels of intensity through each phase of the project/product lifecycle.
Project Management Certificate Program

6. Project Management Certificate Program
Project Management Processes
Initiation
Planning
Control
Execution
Closeout
Project Management Certificate Program

7. Project Management Processes
Lifecycle
Phase
Phase
Planning
Planning
Planning
Closing
Initiating
Initiating
Closing
Executing
Executing
Monitoring and Control
Monitoring and Control
Project Management Certificate Program

8. Lifecycle or Project Management Processes?
Requirements
Design
Implementation
Stabilization
Release
Project Management Certificate Program

9. Project Management Processes
Initiation
Initiate the Project
Identify Scope Baseline
Establish Basis for Future Decisions
Planning
Execution
Monitoring and Controlling
Initiate = Scope
Close Out the Project
Project Management Certificate Program

10. Project Management Certificate Program
Initiation Process
Recognizes that a project or phase should begin and committing to do so
Authorizes the project or phase
Project Management Certificate Program

11. Project Management Certificate Program
Project Selection
All organizations have more ideas on needs to spend money on than they have money
Needs must be studied and priorities set
Selection of the right project to do is the first and most important decision made
Not doing the project may be the answer!
Is it difficult to stop the project? Russell experience…….with George
Project Management Certificate Program

12. Project Management Certificate Program
Project Selection
Many organizations have a two-step project approval process.
Step 1 – Pick projects to study out of a large list of opportunities.
Step 2 – Final approval to proceed after detailed scoping and planning done
How is it done in your organization?
Formal Process
Informal Process
Project Management Certificate Program

13. Project Management Certificate Program
Project Selection Process
Suppliers
Process
Output
Project Opportunity
Establish Objectives
Gather Data/Identify alternatives
-Select Business Case
Prepare Conceptual
Estimate
-Analyze Risk
Business
Legal
Technical
Environmental
Make go/no go
Decision
Identify key project
team members
Outputs
-Business Objectives
Broad Scope
Estimate & Schedule
Go/No Go Decision
Key Team Members
Input
Business/Product Marketing
Operations/Finance/Planning
Legal/
Environmental/Technical
-Vision
Strategies
Policies
Data
-Resources
TQM – SIPOC === Supplier, Input, Process, Outputs, Customer
Customers
Project Management Certificate Program

14. Project Management Certificate Program
Investment Concerns
Uncertainty and Risk
Future economic conditions
Future Laws
Expected Return on Investments
Accuracy of Resource Estimates
Accuracy of Benefit Estimates
Other examples (by Class)
Future Laws = 508 – Disabilities Act
Project Management Certificate Program

15. Project Management Certificate Program
Investment Concerns
Some Common Evaluation Methods
Depreciation
Net Present Value
IRR
Future Laws = 508 – Disabilities Act
Depreciation – Like a car, software
NPV: Time value of money – conversion of value to the present point in time. How much is $ years from now worth today??? $4,000,000 to save to get a $100,000 annual income.
IRR = NPV in = NPV out: Annual rate of earnings on an investment. IRR equates the value of the cash returns with invested cash and considers the application of compound interest factors.
NPV compares the value of a dollar today to the value of that same dollar in the future, taking inflation and returns into account. If the NPV of a prospective project is positive, it should be accepted. However, if NPV is negative, the project should probably be rejected because cash flows will also be negative. For example, if a retail clothing business wants to purchase an existing store, it would first estimate the future cash flows that store would generate, and then discount those cash flows into one lump-sum present value amount, say $565,000. If the owner of the store was willing to sell his business for less than $565,000, the purchasing company would likely accept the offer as it presents a positive NPV investment. Conversely, if the owner would not sell for less than $565,000, the purchaser would not buy the store, as the investment would present a negative NPV at that time and would, therefore, reduce the overall value of the clothing company.
Project Management Certificate Program

16. STEP 1: Scope the Project
What is the Problem or Opportunity?
Who wants this project complete? Who is the sponsor?
What is to be done?
When must the project be completed by?
You’ve selected your project, now what?
Project Management Certificate Program

17. STEP 1: Scope the Project
State the Problem and/or Opportunity
Establish the Project Goal
Define the Project Objectives
Identify Assumptions, Constraints, Risks, and Success Criteria
Deliverable: PROJECT OVERVIEW STATEMENT (POS)
POS = SOW = Charter : Depends on level of detail
Project Management Certificate Program

18. Identify the Project Goal
Defines the final outcome
Should have only one goal, which may identify several objectives: Goal + Objectives = Scope
Should be understandable to outsider
Build a High Availability System that will enable failsafe scenarios, stateful redundancy ….
Build system that allows recovery which is transparent to the user.
Use husband or friends as sounding board
Project Management Certificate Program

19. Project Management Certificate Program
Objectives: “S.M.A.R.T.”
Specific Be specific in targeting objectives
Measurable Establish a measurable indicator(s) of progress
Assignable Make the objective assignable to one person for completion
Realistic State what can be realistically be achieved with the available resources
Time-related State when the objective can be achieved; i.e. - Duration
"Management by objectives works if you know the objectives. Ninety percent of the time you don't"
Peter Drucker
Project Management Certificate Program

20. Identify Success Criteria
Condition of Satisfaction
State success criteria in terms that senior management will understand - both product and project
Management wants to deal with deliverables and to assign business values
What are some common success criteria?
Product
Project
Product – 1Q
Project – 24 hour turnaround
Condition of Satisfaction – Completion criteria
Project Management Certificate Program

21. Identify Assumptions, Risks, Constraints
What assumptions can be made to avoid delays in completing the project with given resources and constraints?
Decisions
What decisions must be made now?
What decisions cannot be made until work commences on the project?
Resources
What resources are required?
Can a resource be a risk? Must Joe Blow be assigned?
Risk: An occurrence that may or may not effect the project.
Assumption: Are factors that, for planning purposes will be considered true, real, or certain. Generally involve a degree of risk.
Constraint: Absolute
Project Management Certificate Program

22. Identify Assumptions, Risks, Constraints
What risks occur if resources are not obtained in timely manner?
Delays
What problems and delays are likely to occur in this project?
What effects will delays have on the project?
What are the probable budget and schedule overruns to complete this project?
Constraints
What are examples of constraints?
Can a resource be a risk? Must Joe Blow be assigned?
Risk: An occurrence that may or may not effect the project.
Assumption: Are factors that, for planning purposes will be considered true, real, or certain. Generally involve a degree of risk.
Constraint: Absolute/must versus should – will, must, shall – Yr 2000 absolute, resources can only be used at 70%.
A storm may impede completing the project – risk – may or may not make a decision
Difference between risk and issues. Risk is umbrella to issues. Issues have action items associated with them, generally.
Project Management Certificate Program

23. Identify Assumptions, Risks, Constraints
Factors that, for planning purposes, are considered to be true, real, or certain. May involve a degree of “risk.”
Risks
An uncertain event or condition that, if it occurs, has a positive or negative effect on a project’s objectives.
Constraints
Any factor that affects when an activity can be scheduled.
Absolutes
Definitions Adapted from PmBok
Can a resource be a risk? Must Joe Blow be assigned?
Risk: An occurrence that may or may not effect the project. Can be a positive risk: org change, monetary change (if govt provides more money)
Assumption: Are factors that, for planning purposes will be considered true, real, or certain. Generally involve a degree of risk.
Constraint: Absolute – Will the project stop if this occurs. There is NO negotiation.
Project Management Certificate Program

24. Project Management Certificate Program
Other POS Components
Risk analysis
Financial analysis
Feasibility Study
Cost-benefit evaluation
Break-even analysis
Return on investment (ROI)
Preliminary Budget and Schedule
Project Management Certificate Program

25. Project Management Certificate Program
POS Approval
How important is this project?
How does this project relate to our Lines of Business?
Do the objectives relate directly to the problem or opportunity?
Is the relationship between the objectives and success criteria clearly defined?
Are the risks too high, or the business value too low?
Can senior management mitigate the identified risks?
Project Management Certificate Program

26. Project Management Certificate Program
POS Approval
Team Leadership Assignments
Can be used to “sell” the project to management and potential team members
The POS should be used to gain project approval
Project Manager should plan, implement and manage the project as defined in the POS
Project Management Certificate Program

27. ASSIGNMENT # 2: Setting Up Teams and POS Statements
Choose teams of x people. Team Rules:
No individual project assignments
Each team member must present at final presentation
Determine project to work on. Develop a project notebook that demonstrates ability to use the tools and techniques learned from the Project Management Certificate Program. Demonstrate ability to work as a team.
Write POS for project.
36 people: 6 teams 5 people, 1 team 6 people
33 people:: 5 teams, 5 5person teams, 2 4 person teams
34 students 6 teams 5, 1 team 4
Project Management Certificate Program

28. ASSIGNMENT # 2: Setting Up Teams and POS Statements
Turn POS in by Session 4:
1) List of team members with addresses
2) Name of project and names of team members
3) Provide 1 page typed POS statement following format provided (2 pages maximum). Use Word format provided on next page.
4) Provide POS via to by 4:00 p.m. the day of Session 4.
Project Management Certificate Program

29. Project Overview Statement
Project Name: Project Team Name and Members:
Problem/Opportunity Overview: (Provide a short paragraph as to the problem/opportunity the project is addressing.
Project Goal: (Clearly define the scope of the project)
Business Case Justification: (Clearly define how the scope of the project will address the issue/opportunity at hand).
Product Success Criteria: Sales of 50% share in the marketplace.
Project Objectives:
Assumptions: (include any project success criteria i.e. Timely approval by the Executive Sponsor will be provided within 48 hours of the request).
Risks:
Constraints:
Project Management Certificate Program