02 PM Framework - Project Lifecycle & Organization_6th Editon.pdf

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02 Project Management Framework
Welcome to
PMP Exam Preparation Course
Based on “PMBOK” 6th edition
The structure and fundamentals of project management.

The Agenda
 Project: What & Why
 Project Management: What & Why
 Areas of Expertise
 Project Manager Skills
 Project Management Processes for a Project
 Project Management Context
 Project Phases
 Project Life Cycle
 Project Stake Holders
 Organizational Structures & Influence on Projects
 Lessons Learned
 Project Selection Criteria

What is a project?
A project is a temporary endeavor undertaken to
create a unique product, service, or result.
• Temporary
 has a definite beginning and a definite end, not ongoing
efforts.
 Ceases when objectives have been attained.
 Team disbanded upon completion.

What is a project? continue…
 Unique:
 the products or services are different in some way from
other products or services.
 The presence of repetitive element does not change the
fundamental uniqueness of the project work.
 Progressively Elaborated:
 Progressively means “proceeding in steps” containing
steady increments.
 Elaborated means “worked out with care and detail;
developed thoroughly”.

Why project?
 Projects are implemented to achieve Organization
Strategic Plan. Operations are ongoing and repetitive
to sustain the business.
 Projects are means to Organizational requests that
cannot be achieved by normal operations.
 Projects emerge due to: Market demands,
Organizational Needs, Customer Request,
Technological advancement, and Legal Requirements.

Projects versus Operations
 Similarities between project and operations
 Both performed by people, even 1 person.
 Both are constrained by resources.
 Both are planned, executed and controlled.
 Both are done for a purpose and have interrelated
activities.
 Difference between projects and operations
 Operations are ongoing, repetitive, circular
 Projects are temporary, unique, linear

Project >> Exam Tips
On a large project, you may need to spend weeks for
planning communications.
On a small project, if you have a issue, you walk over to a
team member, discuss and resolve the issue.
Example: If you are managing a new project in your organization utilizing
resources from many countries, has more than 200 people on the team,
duration is more than 1 year and costs US100million. There is a big
difference between managing a small versus large projects.
Need to have a large projects in mind, when you answer
questions on the exam

Knowledge
Skills
Techniques
Project Activities
Project Requirements
What is Project Management?
Project management is the application of knowledge, skills,
tools and technique to project activities to meet project
requirements.

9
Advantages of Using Formal Project Management
Higher worker morale (less stress)
Better internal coordination
Improved productivity
Higher profit margins
Higher quality and increased reliability
Lower costs
Shorter development times
Improved customer relations
Better control of financial, physical, and human resources

Areas of Expertise
 Effective Project management requires that project
management team understand and use knowledge and
skills of the following five areas of expertise:
See next slide>>>
 1. The Project Management Body of knowledge
(PMBOK)
 2. Application area knowledge, standards, and
regulations
 3. Understanding the project environment
 4. General management knowledge and skills
 5. Interpersonal skills

Areas of Expertise Needed
Tools & Techniques
Work Breakdown structure,
Critical Path Analysis ,
Earned value management
Project Life Cycle
5 PM Processes
9 Knowledge areas
Cultural, social, political,
physical, international
Legal, marketing,
logistics, personnel
Effective communication,
Influence the organization,
Leadership, Motivation
Financial, Contracts,
strategic planning,
Organizational structure

Areas of Expertise continue….
Project Manager Skills:
 Project Management Technique &
General Management Skills
 Communication Skills
 Organizational Skills
 Problem Solving Skills
 Budgeting Skills
 Negotiation and Influencing Skills
 Leadership Skills
 Team Building Skills

Areas of Expertise continue….
 Each application area generally has a set of accepted standards,
often codified in regulations.
The International Organization for Standardization (ISO)
differentiates between standards and regulations as follows
 A STANDARD is a “document established by consensus and
approved by a recognized body, that provides, for common
and repeated use, rules, guidelines, or characteristics for
activities or their results, aimed at the achievement of the
optimum degree of order in a given context.
Example: The size of computer diskettes”.
 A REGULATION is a government imposed requirement which
specifies product, process or service characteristics,
including the applicable administrative provisions, with which
compliance is mandatory. Example: Building codes.

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

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Managing Projects
 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 demand of quality, scope,
time and cost.
 Adapting the specifications, plans, and approach to
the different concerns and expectations of the
various stakeholders.

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Triple Constraints
The project management team has a professional
responsibility to its stakeholders including customers, the
performing organization, and the public.
Triple constraints are scope,
time and cost in managing
competing project requirements.
Project quality is affected by
balancing these three factors.

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Triple Constraints
 Every project is constrained in different ways by its:
 Scope:
What work will be done as part of the project?
What unique product, service, or result does the
customer or sponsor expect from the project?
 Time:
How long should it take to complete the project?
What is the project’s schedule?
 Cost:
What should it cost to complete the project?
What is the project’s budget?

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Understanding Project Objectives
Project objectives are contained in the project charter.
Project objectives are determined in the initiating
process group and redefined in the planning process
group.
Projects are considered complete when the objectives
are met.
The reasons for terminating a project before completion
is that the project objectives can not be met.
It is the project manager’s role to accomplish the project
objectives .

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Management by Objectives (MBO)
This management philosophy has three objectives…
1. Establish unambiguous and realistic objectives
2. Periodically evaluate if objectives are being met
3. Implement corrective action
Project manager should realize from this
philosophy that if the project is not in line with or
does not support the corporate objectives, the
project is likely to lose resources, assistance and
attention.

Project Management Context

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Programs and Program Management
 A Program is a group of related projects.
 Management is coordinated because:
 they may use the same resources,
 the results of one project feed into another, or
 they are parts of a larger "project that has been broken
down to smaller projects".
 ADVANTAGES
 Decreased risk
 Economies of Scale
 Improved Management

22
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.
The projects or programs in the portfolio may not
necessarily be interdependent or directly related.

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Portfolios and Portfolio Management
Portfolio Management
Program Management
Project Management
Portfolio - A suite of
Programs and Projects
managed to optimize
Enterprise Value
Program - A structured
grouping of related projects
designed to produce clearly
identified business value
Project – A structured set of
activities undertaken to deliver
a defined capability based on an
agreed schedule and budget

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Project, Program and Portfolio Management
Projects Programs Portfolios
Scope Have defined objectives.
Scope is progressively
elaborated.
Programs have larger scope
and provide more significant
benefits.
Have business scope that
changes with strategic
goals of organization.
Change Project Managers expect
change and implement
processes to keep change
managed and controlled.
Program Managers must
expect change from both
inside and outside the
program and be prepared to
manage it.
Portfolio managers
continually monitor
changes in the broad
environment.
Planning Project Managers
progressively elaborate high-
level information into
detailed plans throughout
the project life cycle.
Program Managers develop
the overall program plan and
create high-level plans to
guide detailed planning at
the component level.
Portfolio Managers create
and maintain necessary
processes and
communication relative
to the aggregate portfolio

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Project, Program and Portfolio Management
Projects Programs Portfolios
Management Project Managers
manage the project
team to meet the
project objectives
Program Managers manage the
program staff and the project
managers; they provide vision and
overall leadership
Portfolio managers may
manage or coordinate
portfolio management
staff
Success Success is measured by
product and project
quality, timeliness, cost
effectiveness and degree
of customer satisfaction
Success is measured by degree to
which program satisfies the needs
and benefits for which it was
undertaken
Success is measured in
terms of aggregate
performance of portfolio
components
Monitoring Monitoring and
Controlling of the work
of producing the
project’s products,
services or results
Program Managers monitor
progress of program components
to ensure overall goals, schedules,
budget and benefits of the
program will be met
Portfolio Managers
monitor aggregate
performance and value
indicators

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Project Management Office (PMO)
 An organizational entity
that centralizes and
coordinates the
management of projects.
 Responsibility of a PMO
can range from providing
project management
support functions to
actually being
responsible for the direct
management of a project.

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Functions of a PMO
• A PMO performs a number of functions, for example:
 Managing shared resources across projects.
 Project Management Process/Methodology: Develop
and implement a consistent and standardized
processes.
 Coaching, mentoring, training and oversight.
 Developing and managing project policies, procedures,
templates and other shared documentation
(Organizational Process Assets).
 Monitoring compliance with PM standards, policies,
procedures and templates.

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Home for project managers: In some cases, maintain a
centralized office from which project managers are loaned
out to work on projects.
Project management software tools: Select and maintain
project management tools for use by employees. Also
manage the Project Management Knowledge base.
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.
Project Management Office (PMO)

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Authority of PMO
 Manage the interdependencies between projects
 Help provide resources
 Terminate projects
 Help gather lessons learned and make them available to
other projects
 Provide templates
 Provide guidance
 Provide enterprise project management software
 Be more heavily involved during project initiating than
later in the project.

Project Management Office “PMO” continue...
 PMO tasks include providing Project Managers for different
projects and being responsible for the results of the projects.
All projects are managed by this office.
Project Manager PMO
Focus on specific project Focus on overall business objectives
Manages scope, time, resources,
budget for a specific project
Manages overall risk, overall
opportunities, interdependencies
among multiple projects
Reports project specific information May report on more projects &
from a corporate perspective

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Making PMO Work
 The role of the PMO must be clearly defined.
 Preferably all those who are in the PMO must be qualified
on Project Management. e.g. PMP certified.
 The commitment of executive (top) management is
required.
 The PMO will not improve your project performance
without the use of proper project management processes
and techniques. So professional project management must
be encouraged.

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Enterprise Environmental Factors
 Enterprise environmental factors refer to both internal and
external environmental factors that surround or influence
project’s success. These factors may constraint or enhance
project management options.
 Organizational or company culture and structure
 Governmental or industry standards
 Infrastructure
 Existing Human Resources
 Personnel Administration

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Enterprise Environmental Factors
 Company work authorization system
 Marketplace conditions
 Stakeholder risk tolerances
 Commercial databases
 Project Management Information Systems
 Political climate
 Organization’s established communication channels

34

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Session # 2
Project Life Cycle and
Organization
1. The Project Life Cycle - Overview
2. Project Stakeholders
3. Organizational Influences

36
Project Life Cycle and Organization
 Project Life cycle, Product Life Cycle
 Stake Holder
 Stakeholder management
 Organizational structure
 Matrix >> Strong, Weak, Balanced
 Functional Organization
 Projectized

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The Project Life Cycle
 All projects are divided into phases, and all projects,
large or small, have a similar life cycle structure.
 At a minimum, project will have a beginning or initiation
phase, an intermediate phase or phases, and an ending
phase.
 All the collective phases, the project progresses through
in concert are called the project life cycle.
Construction: Feasibility > Planning > Design > Production > Turnover > Startup
IT Project: Requirement > Design > Program > Test > Implement

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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.

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Phases in Project Life Cycle

Type of Life Cycles
 There are different Life Cycles.
 Project Life Cycle.
 Product Life Cycle
 Management life Cycle
E P C
Initiation EXE M&C Closing
Planning
Project life cycle
Management life cycle
Product life cycle

41
Phase Completion
 You will recognize phase completion because each phase
has a specific deliverable, or multiple deliverables, that
marks the end of the phase.
A deliverable is an output that must be produced, reviewed,
and approved to bring the phase or project to completion.
Deliverables are tangible and can be measured and easily
proved.
A Guide to the PMBOK states that phase ending reviews are
also known by a new other names: Phase Exits, Phase Gates,
or Kill Points.

42
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 may mark the beginning of
the next.
The completion of one phase does not automatically
signals the beginning of next phase.

43
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.

44
More on Project Phases
In early phases of a project life cycle:
 Resource needs are usually lowest
 The level of uncertainty (risk) is highest
 Project stakeholders have the greatest opportunity to
influence the project
In middle phases of a project life cycle:
 The certainty of completing a project improves
 More resources are needed
The final phase of a project life cycle focuses on:
 Ensuring that project requirements were met
 The sponsor approves completion of the project

45
Typical Project Cost and Staffing Level
Across the Project Life Cycle

46
Typical Construction Life Cycle
Percentage
Complete
Feasibility Planning &
Designing
Production Turnover and
Start-up
Project
“GO”
decision
Major
Contracts
Let
Installation
Substantially
complete
Full Operation
100%

47
Project Stakeholders
 A stakeholder is someone whose interest may be
positively or negatively impacted by the project.
 They may also include those who may exert influence
over the project but would not otherwise be considered
stakeholders.
 Key stakeholders
 The project manager
 Customer
 Performing organization
 Project Team
 Project Management Team
 Sponsor
 Influencers
 The Project Management Office

48
Key Stakeholders
Sponsor Person or group that provides the financial
resources for the project
Portfolio Managers/Portfolio Review
Board
Managers responsible for the high-level governance
of a collection of projects or programs
Program Managers Managers responsible for managing related projects
in a coordinated way to obtain benefits and control
not available from managing them individually
Project Management Office It has direct or indirect responsibility for the outcome
of the project
Project Managers Manages the Project
Project team members Group performing the project’s work
Functional (Department/Unit) Managers Key individuals playing a management role within a
functional area of the business

49
Influencers Due to an individual's position can
influence positively or negatively
Sellers/Business Partners External companies that enter into a
contract
Customer Purchases the product or service
User Uses the product or services
Performing Organization Whose employees are most directly
involved in doing the project’s work
Key Stakeholders

50
Relationship between Stakeholders and the Project

51
Stakeholders Grid

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What we do with the Stakeholders?
 Identify ALL of them
 Determine ALL of their requirements
 Determine their expectations
 Communicate with them
 Manage their influence

53
Stakeholders influence over time

54
Organizational System
 Project-based organizations are those whose operations
consist primarily of projects. These organizations falls into
two categories:
 Organizations that derive their revenue primarily from
performing projects for others under contract -
architectural firms, engineering firms, consultants,
construction contractors, and government contractors.
 Organizations that have adopted management by
projects.

Forms of Organization
PMI talks about five types of organizational structure, based
upon project manager’s level of authority.
Organizational structure can be characterized as scanning a
spectrum from functional to projectized as follows:
 Functional Organization .
 Weak, balanced and strong Matrix Organization.
 Projectized Organization.

56
Functional Organization

57
Functional Organization - Key Points
Team members complete project work in
addition to normal department work.
Information required from other department
will be routed through departmental heads.
Projects generally occur within a single
department.
The organization is grouped by areas of
specialization within different functional areas.

58
Functional Organization - Key Points
Job security is guaranteed.
Clear career path in areas of specialty.
Similar resources are centralized and grouped
by specialty.
Team reporting to One supervisor.
Easier Management of specialists.

59
Projectized Organization

60
Projectized Organization – Key Points
Communication generally occurs only within the
project.
Team members complete only project work and
when its over they don't have HOME.
Personnel are assigned and report to a project
manager.
The project manager has control of power and full
authority over project resources
The entire company is organized by projects.

61
Weak Matrix Organization

62
Weak Matrix - Key Points
Project Manager plays a role of:
Project Expediter: Cannot take
decision. Staff assistant and
Communication coordinator.
Project Coordinator: Similar to
Project Expeditor except has some
power to take decision.
Power rests with functional manager
Team members do project work in addition to normal
departmental work
Team members reports to Project Manager and Functional
Manager
Two Bosses

63
Balanced Matrix Organization

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Balanced Matrix Organization - Key Points
Power is shared between the functional and
project manager
Team members do project work in addition to
normal departmental work
Team members reports to Project Manager and
Functional Manager
Two Bosses

65
Strong Matrix
Power rests with the Project Manager
Strong Matrix – Key Point

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Organization Structure influence on Project

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Project Management System
 The project management system is the set of tools,
techniques, methodologies, resources, and procedures
used to manage a project.
 If a PMO exists in the performing organization, one of
the functions of the PMO would be typically to manage
the project management system, in order to ensure
consistency in application and continuity on the various
projects being performed.

68
Organizational Process Assets
Include any or all process related assets from any or
all of the organizations involved in the project that
can be used to influence the project’s success.
Organizational Process Assets
Processes and Procedures
Corporate Knowledge Base
Completed Schedules ,
risk data , & earned value data

69
Lessons Learned (Postmortem)
what was done right, what was done wrong
what would be done
differently if the project
could be redone
Causes of the issues the
project has faced and
the reasoning behind the
changes implemented
The lessons learned
document
includes…

70
Lessons Learned should cover the three areas…
1. Technical aspects of the project
2. Project Management (How did we do with WBS
creation, risk planning, etc.)
3. Management (How did I do with communications
and leadership as a project Manager?)

71
Lessons learned from similar projects are collected and
reviewed before starting the work on a new project
Why make the same mistakes or face the same
problems others faced?
Why not benefit from the other’s experience?
If you are going in to company database and see data
for all projects your company has worked on. How
valuable would that be for developing a project plan for
new project?

72
Once your project is underway,
the project is required to add
lessons learned to the company
database (the organizational
process assets).
Lessons learned are a required
project management practice.
They create a valuable output of
the entire project that makes the
organization better.
Lessons learned may be created
throughout the project and then
finalized during project closing or
project phase ending.
Continuous improvement of the
project management process
can not occur without lessons
learned.
You should not wait until the
project is over to share lessons
learned with other projects.
Lessons learned might be sent
out as they are created, as part
of the distribute information
process on the project.
(Communication management )

Project selection methods
 Project selection methods: project selection methods
are used to determine, which project the organization
will select. These methods generally fall into one of two
broad categories:
 Benefit measurement methods that are comparative
approaches, scoring models, benefit contribution, or
economics models.
 Mathematical models that use linear, nonlinear,
dynamic, integer, or multi-objective programming
algorithms.

Project Selection
Select the project with
HIGHER NET PRESENT VALUE (NPV)
HIGHER INTERNAL RATE OF RETURN (IRR)
HIGHER BENEFIT COST RATIO (BCR)
LESS PAYBACK PERIOD (PBP)

In Summary… today we learnt
 Project: What & Why
 Project Management: What & Why
 Areas of Expertise
 Project Manager Skills
 Project Management Processes for a Project
 Project Management Context
 Project Phases
 Project Life Cycle
 Project Stake Holders
 Organizational Structures & Influence on Projects
 Lessons Learned
 Project Selection Criteria

Thank You
Next Session…# 03
PM Processes - The standard for Project
Management of a Project

Project Framework Management Questions
Q 1: Which of the following is not the feature of a
project?
1. Constrained by limited resources
2. Planned, executed and controlled
3. Creates unique product or service
4. May be ongoing and repetitive
Answer 4:
A project is a temporary endeavor undertaken to create a unique
product, services or result. Temporary means that every project
has definite beginning and definite end.

Q 2: Which of the following is not the responsibility
of a project manager in a Matrix Organization?
1. Do resource planning
2. Manage cost and budget
3. Do performance Appraisal of project team
4. Complete task definitions
Answer 3:
In a matrix organization, Project Manager does not have
authority about doing Personnel Performance Management. This
task is done by Functional Managers.

Q 3: Which of the following are not Project
Management Knowledge Areas?
1. Project Integration Management
2. Project Procurement Management
3. Project Configuration Management
4. Project Communications Management
Answer 3:
Project Configuration Management is not a PMBOK Knowledge
Areas as defined in PMBOK.

Q 4: Project Managers have least power in which
organization structure?
1. Matrix
2. Functional
3. Projectized
4. Balanced
Answer 2:
In classic functional organization each employee has one clear
superior. Staff members are grouped by specialty such as
production, marketing, engineering. Functional organizations still
have projects but the perceived scope of the project is limited
to the boundaries of the function.

Q 5: Which of the following statement related to
Standards and Regulations is not correct?
1. Standard is a document established by consensus and approved
by recognized body
2. Regulations are mandatory but Standards are not mandatory
3. Standards after widespread adaptation may become de facto
regulations
4. The influence of standards and regulations for project is always
known.
Answer 4:
Standards and regulations are not always needed or present
in all projects.

02 PM Framework - Project Lifecycle & Organization_6th Editon.pdf

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