Fundamentals of Project Management

Project Management Workshop
21 March 2014

Who Am I
• SUTHARTHAN
• Head of Examinations AIMST
University
• 11 years experience in Industry ,
handling projects for MNC and
Minor Projects
• Project Lead for ISO certification for
Faculty of Pharmacy , AIMST Uni.

• Please switch you mobile to silent mode
• You are allowed to take calls if it’s real emergency , but you should do it
outside of this room
• Expect two way interactions , if u got questions please do ask
• You are allowed to go to gents or ladies if you need so..

Agenda for today
• 8.15 to 8.30am – registration of participants
• 8.30 am – session starts
• 10.15 am– breakfast
• 10.30 am – session continues
• 1 -2.30 pm – Lunch break
• 2.30 – 3.45pm – Tea break
• 3.45 – 5pm – session continues
• 5pm – session ends

Introductions and Expectations
• Who are you?
name, job and responsibilities
what do you consider to be your strengths in
the work environment (e.g. decisive, good
communicator, assertive, good at
empathising, good listener, etc)
• What previous experience do you have of
managing projects?
• What are your expectations from today?

Insights for today
• What is Project and Project Management and it’s importance ?
• Role of Project Managers
• Some Project Management Definitions , terminology
• Key techniques in Project Management
• Tools for Project Management
• …and much more …

Some Questions
• How many of you have been involved in a project
• Anyone serve as a project manager ?
• How do projects differ from ordinary work ?
• What makes project work more difficult?
• How important is project management ?
• What is enabler of successful projects and how do we achieve it ?

What is a project ?
• A definitive deliverable (objective and goal)
• Takes time
• Unique
• Consumes resources
• Has start date and end dates
• Is broken up into tasks (activities, steps)
• Consists of processes
• Proceeds through milestones
• Utilizes teams
• Based on personal integrity and trust

Why Projects
Why organize an activity or job as a project?
• It allows you to better structure and organize the
tasks that need to be performed
• Well developed approaches and tools are
available for managing projects
• Easy-to-use software is available for scheduling
and budgeting projects
• Experience has shown that the work/job can be
done faster, cheaper, and better when managed as
a project

Sample Projects
• Can you name a few ?
• - Built a monument
• - Construct a building / plant
• - Baking a cake
• - Wedding
• -Product Launch
• -Making a movie
• - House renovation
• - and much more..

Types of Projects
The mix of projects undertaken should support the
firm’s corporate strategy.
• Derivative projects—small improvements
• Platform projects—develop new line of products
using existing technology
• Breakthrough projects—new generation of products
using new technology
• R&D projects—develop new knowledge

Terms often confused with ‘project
• Process /Operational – a series of steps needed to
perform a routine activity (e.g. purchasing). A project
may contain many processes.
• Programme – work performed towards achieving a
long term goal (e.g. a health awareness programme).
Programmes may never achieve all their goals, and
may comprise a series of projects

What is Project Management
• The initiation, planning, execution, control
and termination of projects in a formal,
directed and intelligent fashion
– According to Project Management Institute
(PMI)

Why is 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

Advantages of Project Management
• Better control of human resources
• Improved customer relations
• Shorter development times, lead times
• Lower costs
• Higher quality
• Higher profit margins
• Improved productivity

About PMI
• The Project Management Institute- www.pmi.org
• Has an established Body of Knowledge-guides and
standards
o PMBOK (1996, 2000, 2002, 2008,)
• Will certify you as a PMP if…..
o You can pass its exam, and
o You have at least 2000 hours of successful PM
EXPERIENCE

9 knowledge Area according to PMI

The Role of Project Managers
• Manage the projects
• Manage shifting priorities
• Manage Changing schedules
• Manage the Big Picture / Overall perspective
• In charge of all aspects of the project including
• - Developing the Project Management Plan
• - Keep project on track
• - Identifying, monitoring & responding to risk
• - Providing accurate & timely reporting of project
matrix

Skills, Competencies of the PM
• 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

Project Selection
• Project selection is the process of evaluating
individual projects or groups of projects,
• and then choosing to implement some set of them so
that the objectives of the parent organization will be
achieved.
• The proper choice of investment projects is crucial
to the long-run survival of every firm.
• Daily we witness the results of both good and bad
investment choices.

Decision Models
• Models abstract the relevant issues about a problem from
the plethora of detail in which the problem is embedded.
• Reality is far too complex to deal with in its entirety.
• This process of carving away the unwanted reality from
the bones of a problem is called modeling the problem.
• The idealized version of the problem that results is called
a model.

Criteria for Project Selection Model
1. Realism
2. Capability
3. Flexibility
4. Ease of use
5. Cost
6. Easy computerization

Numeric and Non-Numeric Models
• Both widely used, Many organizations use both at the same
time, or they use models that are combinations of the two.
• Nonnumeric models, as the name implies, do not use
numbers as inputs. Numeric models do, but the criteria being
measured may be either objective or subjective.
• It is important to remember that:
– the qualities of a project may be represented by numbers,
and
– that subjective measures are not necessarily less useful
or reliable than objective measures.

Nonnumeric Models
• Nonnumeric models are older and simpler and have only a
few subtypes to consider.
• Some Nonnumeric Selection Methods
• Sacred Cow (president’s pet project)
– Do you want to keep your job?
• Operating/Competitive Necessity
– You must do this project to stay in business
• Comparative Benefits
– Examine +/- of each potential project

Factor Scoring Method
Example: 3 projects; 4 factors; 1-5 scale (5=best)
Factor ProjectA ProjectB ProjectC
Cost 2 4 3
Risk 4 3 1
Suitable 4 2 5
Skills 2 2 5
Total Score: 12 11 14

Some Numeric Selection Methods
Common Financial Assessment Methods
– Payback Period
• Simple to use and easy to understand
• Ignores returns beyond payback period and
time value of money
– Discounted Cash Flow (NPV)
• Considers time value of money and all
returns
• Favors short-term projects
• Ignores all non-monetary factors except
risk

Payback Period Example
Expected project costs are $700,000
Expected returns are $200,000 per year
Payback period = 700,000 ÷ 200,000 = 3.5 years
Revenues would cover investment costs in 3.5 yrs.

Discounted Cash Flow
Net Present Value
where
I0 = initial cash investment
Ft = net cash inflow in period t
k = required rate of return or hurdle rate
 

 

n
1t
t
t
0
k1
F
I)project(NPV

What are the criteria for success in Project Management
• Completion on time
• Completion within budget
• Completion with full functionality & Quality
( Meeting the requirement)

The triple Constraint/Quadruple Constraint
• Time
• Cost---- Tradeoffs between these
• Scope //////
• Quality

Scope Creep
• Scope creep can be defined as a process where changes are made to a
projects deliverables, outcomes or requirements/features either without
stakeholder’s approval or without managing the effects this change or
changes could have on the projects schedule, budget or time.
• HOW DOES SCOPE CREEP HAPPEN?
• Scope creep could occur when the project requirements are not well
formed or are not clearly understood by stakeholders. Scope creep could
also occur due to unforeseen circumstances and events, both external
and internal, changes in laws or regulations, technology, market trends
and demands, during the project. Also, incessant change request by
stakeholders to improve the project, if not well managed could also cause
scope creep (Lewis, J. P.)

CONSEQUENCES OF SCOPE CREEP
• Scope creep if not managed properly is every project manager’s
worst nightmare, with several effects on both the project and his
personal life.
• projects will be affected by mismanagement of scope creep might
also suffer decreased return on investment (RIO), additional losses
and increased cost of maintenance

Fundamentals of Project Management

Project Life Cycle
• Conception Phase (The Idea)
• Definition Phase (The Plan)
• Initiation Phase (The Team)
PLAN
• Execution & Ctrl Phase (The Work) DO
• Evaluation Phase/Close (The Wrap-up)
REVIEW

The Conception phase – the idea
• Essentially - What are we going to do?
• For small projects an informal discussion might
adequate
• For larger projects, a more formal review and
discussion processes required.- project Charter
• Key questions to answer should be:
• Should you do it? What is the benefit and do
the benefits outweigh the costs?
• Can you do it? Is it technically feasible and are
there enough resources?

Tool and Technique
BRAINSTORMING

Brainstorming
• Brainstorming was coined in the 1940s by Alex
Osborne a US advertising executive.
• It works by temporarily removing the social blocks
which we all have which prevent us from being
creative. Blocks such as:
o Feeling our ideas will be ridiculed
o Feeling we don’t know enough to voice an opinion
o Focusing on simple solutions rather than taking a
risk

Brainstorming
• Brainstorming is essentially a method for being
creative in groups, particularly useful for creative
problem solving.
• ‘Popcorning’ is the new name for brainstorming

The rules of brainstorming
• No judgement or criticism of an idea
• Quantity of ideas is more important than quality
• Freewheeling - rapid a spontaneous ideas
• Mutating and combining ideas – one person’s idea
stimulates ideas from another person
• No answer or idea belongs to a person, they belong
to the group
• Answers and ideas must be produced rapidly

• 1 question or problem is posed
• 2 people in a group take turns to answer
• 3 each suggestion is written down by a note taker
• 4 repeat the process until the group run out of ideas
• 5 Select, filter and choose the most appropriate
ideas.
Brainstorming how to do it

• That temptation at this point is to get started (after
minimal planning). This is the traditional British
approach.
• It gives the appearance of immediate activity and
progress. We are busy ‘doing’.
• But it leads to mistakes and waste.
• We end up with Plan-Do, Do-Re-Do, Re- plan, Re-Do,
RE-Do, Re-Plan etc

So what we do..
• Consequently…
o Projects over runs
o Cost too much
o Don’t achieve desired result
• So we...
o Hunt for the guilty
o Persecute the innocent
o Promote the uninvolved

But I am too busy to spend time
planning!…Planning allows you to:
• Ensure that people only work on activities which are
needed, and do them correctly the first time, not
waste time doing unnecessary activities.
• Anticipate potential problems and take preventative
action to deal with them before they happen.
• Do things in the right order at the right time, which
should prevent things going wrong later.

Why do so many projects fail to meet
expectations?
A study by Hughes (1986) identified three main reasons
for projects failing.
• 1 a lack of understanding of project management
tools and an over reliance on project management
software
• 2 communication problems
• 3 failure to adequately adjust to changes that occur
during the course of the project

Continued..
• Hughes notes that many managers are apt to lose
sight of the project. By focusing on the project
management software and managing this rather
than the actual project!
• Michalski (2000) observes that
“good communication is the key successful project
management”.

So we will use a Project Life Cycle like this
• Conception Phase (The Idea)
• Definition Phase (The Plan)
• Initiation Phase (The Team)
• Implementation Phase (The Work) DO
REVIEW• Evaluation Phase (The Wrap-up)

• Review the reasons for the project.
• Describing detail what results are to be produced.
• Create a list of all the work to be performed.
• Produce a detailed project schedule.
• Calculate budgets.
• Describe how risk is to be managed.
• Identify any assumptions about the project.
• Identify and define the roles of the project’s team
members.
The Definition phase – the plan

The Initiation phase – start up
• Assign people to project roles, ensure they are available
when needed. Negotiation may be necessary.
• Give and explain all tasks to team members.
• Set up systems and accounts to track personnel
information and financial expenditure.
• Announce the project’s start, what it will produce. When
it will start when it will finish

Important document in Initiation Phase
• Project Charter – statement of Scope , Objectives and participants in a
project and is a critical document to ensure that everyone involved in
project is aware of its purpose and objectives.
• It outlines the project objectives, identifies the main stakeholders , and
defines the authority of the project manager.
• Purpose : Reasons for undertaking the project , Objectives and constraints
of the project , assumptions that influence the project environment,
directions concerning the solution –scope , identifies the main
stakeholders, empowers the Project Manager the authority to carry out
the project

PROJECT CHARTER
Project Name: Team Name:
Product Name: Customer:
Date: Revision Number:
1. PROJECT GOALS
Describe the business need, opportunity or problem that the project was undertaken to address – i.e., the project
justification.
2. DELIVERABLES
Provide a high level list of “what” needs to be done in order to reach the goals of the project. Each deliverable
should be sufficiently detailed so that the Project Team will understand what needs to be accomplished.
Describe the deliverable using action words (verbs) such as “deliver, provide, create, research, etc.
Deliverables should be measurable, so the Project Sponsor and Team can determine whether the deliverable
has been successfully completed at the project’s conclusion.
3. SCOPE DEFINITION
Document the scope of work to be delivered. To assist you in defining scope, use documentation such as RFP’,
sales proposals, business requirements, functional specifications, etc. to set and limit the scope.
In Scope is what the project will include to meet the requirements of the Project goals.
Out of Scope excludes responsibilities, activities, deliverables or other areas that are not part of the Project.
The project will include:
The project will not include:

4. PROJECT MILESTONES
Identify the significant project milestones.
5. ASSUMPTIONS, CONSTRAINTS & DEPENDENCIES
Identify the assumptions that were made to form the basis of defining scope. Also identify any assumptions that
will be made for the purposes of planning the project. The objective here is to set the boundaries and address
how the triple project management constraint (scope, time and cost) are potentially impacted/managed.
List any constraints (potential factors that will impact the delivery or make it difficult to manage the project) on the
project or dependencies on resources or funding to the project. Consider time, cost, dates and regulatory issues
as constraints or dependencies to the project.
6. RELATED DOCUMENTS
Reference any related documents that were used to define scope and assumptions – e.g., RFQ, RFP, Sales
Proposal, etc.
Also reference any product and process related standards and frameworks that constrain the work to be done.
7. PROJECT ORGANIZATIONAL STRUCTURE
Identify the key stakeholders and team members by function, name and role.
Function Name Role

Project Scope Management (Most Important element in
Project Management )
• Scope Management is primarily concerned with defining and
controlling what is & what is not included in the project.
• Processes are presented as discrete components with well
defined interfaces but in practices the will overlap & interact
in ways that may not have been detailed.
• what needs to be accomplish to deliver the product, service /
result with the specified features and functions

Activity – Group
• Develop a Project Charter for your project . It could be any project or
simple project.
• Must contain
• - Project Name , Project Charter Author , Project Manager, Project
Charter status , Proposed Project start & End Date
• - Project details – Project Description , Project Purpose , Project
Goals & Outcomes , Project Scope , Project deliverables , Benefits ,
stakeholders , constraints /risk , Assumptions , Project Team ,
Budget , any dependencies , communication plan , project timeline

Implementation phase – the do
• Doing the tasks as laid out in your plan
• Regularly comparing the actual performance with
the plan, knowing and anticipating when things are
not going according to schedule
• Fixing problems that arise.
• Keeping everyone informed

Progress Tracking
Past
What happened?
What was
supposed to
happen?
Present
What’s going on?
Issues?
Changes?
Future
What’s supposed
to happen?
Risks?

Tools that we use in Projects
• Milestone chart – similar to Gantt chart but they only show major
events and no duration, they simply represent the completion of
activities. Good tools for reporting to management and to the
customer.
• Gantt Chart / Bar Charts – very effective for progress reporting and
control. No interdependencies between activites.

Managing Change
Acknowledge
Assess
Accept
Approve

The Evaluation phase – the wrap up or review
• Get the customer’s approval of final results.
• There may be formal project hand over to the client
• Complete any paperwork.
• Hold a post project evaluation to recognise
achievements and discuss lessons learned

Reviewing Stage Who can
take the
blame?

Reviewing Stage
 Review  KPIs, Metrics, Objectives
 Reflect  Lessons Learned
 Report!

Roles in projects – who is responsible for what?
One of the the benefits of project management
techniques is the opportunity to clarify roles.
• Project sponsor – person who’s paying for it
• Project champion - person who wants to see it
happen
• Project manager – will ensure it happens
• Project team – will make it happen
• Stakeholders – those affected by it and with an
interest in it, but not necessarily part of it.

Stakeholder - definition
• A stakeholder is, for our purposes at the
moment, “a person or organization who
is affected by or impacted by what you
are trying to do”

WHO?
Is paying for it
Is making profit
of it
Is using it
Is with/against it
Influences it
Will be promoted
Will be punished

Who are the STAKEHOLDERS??
• Customers
• Project Sponsor—the guy w/ deep pockets
• Users
• Project team
• Support staff
• Suppliers
• Opponents
• People involved-in or affected by project activities

Stakeholders
4 things to do with them
• List them
• Try to understand their likely perspective - how
might they react to the project?
• Assess their relative importance
• Act appropriately with the stakeholder throughout
the project – identify and decide what action you
may need to take

Organizational Structures
Organizational structure describes the
management reporting relationships in the org.
Organization charts show these relationships.
How do projects fit within an organization?
• Traditional functional organization
• Functional project organization
• Pure project organization
• Matrix project organization

Traditional Functional Organization
Company
President
Marketing
Vice President
Customer
Service
Manager
Domestic
Sales
Manager
International
Sales
Manager
Engineering
Vice President
Systems
Engineering
Manager
Electronics
Engineering
Manager
Software
Engineering
Manager
Mechanical
Engineering
Manager
Technical
Documentation
Manager
Human
Resources
Vice President
Finance &
Administration
Vice President
Manufacturing
Vice President
Fabrication
Manager
Assembly
Manager
Testing
Manager
Production
Scheduling
Manager
Shipping
Manager
Procurement
Vice President
Purchasing
Manager
Receiving &
Inspection
Manager

Functional Project Organization
• Project organized and controlled within a
functional unit or department
• Usually for smaller projects with a narrower focus
• What are the advantages of this structure?
• What are the disadvantages?

Functional Project Organization
Company
President
Marketing
Vice President
Customer
Service
Manager
Domestic
Sales
Manager
International
Sales
Manager
Engineering
Vice President
Systems
Engineering
Manager
Electronics
Engineering
Manager
Software
Engineering
Manager
Engineering
Project A
Engineering
Project B
Human
Resources
Vice President
Finance &
Administration
Vice President
Manufacturing
Vice President
Fabrication
Manager
Assembly
Manager
Testing
Manager
Shipping
Manager
Manufacturing
Project 1
Procurement
Vice President
Purchasing
Manager
Receiving &
Inspection
Manager

Pure Project Organization ( Projectized Org.)
• Each project is organized as a separate division
reporting to senior management
• Effective for large projects, not small. Why?
• Each project owns its resources/personnel
• Each project may not have much depth of
technical expertise, but it should have breadth
• Project Manager has full authorities to assign
priorities

Matrix Project Organization
• Most common organizational structure
• Has many advantages of functional project and
pure project structures
• Project team members have two bosses
• Team members may be assigned part-time to
project and may have less loyalty to the project

Matrix Project Organization
3
1
0
1 1/2
4
1/2
1/2
1/4
3
4
1 1/2
1/2
1/2
1/4
1

The 7 Steps to Project Success

The 7 Steps..
• Project Success Chart ( Project Charter )
• Work Breakdown Structure ( WBS )
• Task Assignment Matrix
• Task Duration Table
• Project Network Diagram
• Gantt Chart Schedule
• Project Budget Chart

• To illustrate these steps, I will use a simple small project,
making a birthday cake as an example

Step 1 – Project Success Chart
• List the factors vital to the success of the project – the project
objective, the project deliverable (s) and the project success criteria.
• Project Objective is what will be achieved by when. In our example
project objective is “Bake a cake in time for my mother’s birthday
party.”
• The project deliverable (s ) are what will be delivered by when . In
our case project deliverable is one-2 layer chocolate cake with
Pokemon decorations, in time for the birthday party.
• The project success criteria is what will meet or exceed the
expectations of each stakeholders. The first step is to list all of the
stakeholders. In our case it consists of my mother, her parents and
the birthday party guests

Step 1 Continued..
• The expectations of her parents are that the cake be reasonable cost,
and that it be available on time. The expectations of the guests are
that the cake be available in sufficient quantity, that it taste good,
and that it be available in time.
• The advantage of the Project Success Chart – the elements of the
project that enable its success can be communicated to the project
team members in a very short period of time.

Project Objective ( What will be achieved by when )
 Bake a cake in time for my daughter’s birthday party
Project Deliverables ( What will be delivered by when )
 One 2 layer chocolate cake with Pokemon Decorations, in time for the
birthday party.
Success Criteria ( what will meet or exceed the expectation of each
stakeholder
Stakeholders Success Criteria
Mother Chocolate cake, Pokemon deco on time
Husband Reasonable cost, on time.
Birthday party guests Sufficient quantity, taste , on time.

Step 2 – Work Breakdown Structure
• WBS is a way organizing all of the tasks in the project. The method
used is to break the project objective into sub-objectives. For each
Sub-Objective I list the tasks necessary to achieve the sub-objective.
• In this case , the Make Cake sub objective consists of 1) Look in cake
recipe book, 2) Measure / mix cake ingrdients, 3) Cool cake , and 4)
Bake cake. Tasks do not have to be listed in the correct time
sequence.
• The Make Frosting sub –Objective consists of 1) Looking in frosting
recipes book, and 2) Measure / Mix frosting ingredients . The
purchase Ingredients sub-Objective consists of 1) Drive to Store, 2 )
Buy Decorations.
• In many projects, there is an Integration function. In this case we
must put the cake and decorations together. Perform integration
subjective of 1) Put deco on cake and 2) Slather frosting on cake.

Step 3 – Task Assignment Matrix
• Will list the tasks and task owners .

Step 4 – Task Duration Table
• List three estimates for each task – Optimistic , Most likely , and
Pessimistic . The optimistic values usually have a probably have the best
case estimate , Most Likely – medium estimates , Pessimistic- the worst
case estimate.

Step 5 – Project Network Diagram
• Shows the logical flow of tasks in the project.
• From our Task Assignment Matrix, we can do all task
simultaneously, because we have assigned different resources to
each of these tasks.
• Critical Path is the longest path of the project. To determine the
Critical Path , we combine the results above with our Task Duration
Table from step 4. From the table we use the most likely estimates
of task duration to determine the longest path in project or Critical
Path.

Step 6 – Gantt Chart Schedule
• We will use the information from Step 4 to determine a contignency
to protect the project due date from schedule overruns.
• Project buffer is placed at the end of the Critical Path to protect
against overruns in the duration of the tasks on the critical path

• We see that pessimistic estimates for the Critical Path tasks total to
300 minutes, and the most likely estimates total to 200 minutes.
• We take half of the difference between the total of the pessimistic
and most likely estimates as the project buffer , which in this case
would be 50 minutes.
• Gantt Chart constructed , including the 50 minute project buffer.
• If we start the birthday cake project by 8am, we should have it ready
for the birthday party scheduled for 12.30 pm in the afternoon.

Step 7 Project Budget Chart
No item Plan Actual Priceperunit Cost(RM)
1 egg 20 25 0.3 7.5
2 bakingpowder 1box 1box 2.5 2.5
3
Total XX
BudgetChart

Summary
• Identify what is project and project management
• Project life cycle
• How to select a project
• Skills needed to be a good Project Manager
• Able to do a simple project
• Identifying stakeholders and their importance in
Project Management

Fundamentals of Project Management

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