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Project Management

Lecture#01

Presented by: Umer Ghauri

Umer Ghauri

Education

Master of Science (Project Management) KTH (Royal


Institute of Technology), Stockholm, Sweden.
Master of Business Administration (MIS) SZABIST,
Pakistan.
Bachelor of Science (Computer Sciences) SZABIST,
Pakistan.
Masters Thesis: The Role of Effective
Leadership in Managing Innovation and
Change.
Also published as a book.

ISBN-10 3844386076
ISBN-13 9783844386073

The Royal Institute of Technology

Umer Ghauri
Experience

Permanent Faculty (Air University)


Business Analyst/Operations Manager
(Sofnix Pvt Ltd)
Assistant Manager Operations
(Kestral Trading)
BSS Engineer /Regional Manager
(Nokia/Telenor)
Team Lead (Technical Support)
(Medical Transcription & Billing Corp.)

Contents of the Lecture

Introduction

Introduce yourself.
Who are you?
Your goals
Your plans about achieving those goals.
One thing no one knows about you.

Try to Solve this Puzzle!!

Place 10 balls in 5 lines in such a way that


each line has exactly 4 balls on it.

*Also , youll get a special bonus mark if youre


a Black Sabbath or Metallica fan.!! =)

Rules for PM Course Participants: The DOs


Do listen to my lectures very attentively and
carefully. Listening is the basis for comprehension
which is the prerequisite for performing well in this
course. If you are having comprehension problems,
inform me immediately. Do not hesitate otherwise it
may be too late for me to help you.
Do ask questions or bring up relevant points for discussion in the classroom. You will not be punished
for this! There is no such thing as a stupid question
or discussion and I am very patient with students.
Be inquisitive, analytical, critical and creative
in your approach to learning project
management!

Rules for PM Course Participants: The DOs

Do read the prescribed course literature. It is the


basic requirement for comprehending project
management and for you to perform well in this
demanding course!
Please note that using only my PowerPoint slides for
your exam preparation is NOT sufficient! YOU MAY
FAIL IF YOU DO SO! The questions in your midterm
and final examinations may relate to

material contained in the recommended course text books and handouts which may not have been discussed in detail, or at all, in class!
Some good advice for you: Read from the beginning of the course and
NOT towards the end! You wont regret it.

Rules for PM Course Participants: The DOs


Do visit me at my office in the China Block building, individually
or as a group, if you have a course-related problem or
problems and seek counseling. Im usually in my office from
Mondays to Fridays (9.30 AM onwards) . You can also contact me
at my tel. extension 511 or by eMail at omarghauri@gmail.com
Do fill out the anonymous course evaluation form which will
be distributed to all MPM participants at the end of the semester.
Our department is striving hard to continuously and significantly
improve the quality of all its undergraduate and graduate level
courses and your critical feedback and constructive criticism in
this connection is always welcome and very valuable to us.

Rules for PM Course Participants: The DONTs


Dont be late to class. 11.30 PM means 11.30 PM sharp
and not a second later! Two roll calls will be taken (at the
beginning of class and after the break). Course participants
who are late will be marked absent!
Dont ask me to mark you present if you are going to
be absent in that class. I dont care what events in your
personal or professional lives prevent you from coming to
my class. Visiting family and friends, engagements,
weddings, hospitalizations, funerals, official committments
etc. are your issues, not mine. If you are absent in my
class, youll simply be marked absent. Period!
Dont come to class just to get marked present and then
wander of to the canteen for gossip, meals or
refreshments, or leave the campus, outside the 15-minute
customary pause. Anyone doing this will have their
attendance revoked.

Rules for PM Course Participants: The DONTs


Dont use cell phones in my class. They must be
switched OFF prior to entering the classroom and no
SMS messages may be sent while the class is in
progress! Do not run in and out for making or answering
calls. Such behaviour distracts the class and disrupts my
presentation. If making or answering calls is so important
to you, stay at your home or office and do them there, but
do not come to my class!
Dont chit-chat among yourselves, distract the
attention of other MPM participants or behave
immaturely in the class. You are only hurting yourself
and your colleagues, not me. As educated adults, I
expect you all without exception to behave as such from
the minute you enter my class to the minute you leave it!

Rules for PM Course Participants: The DONTs


Dont procrastinate on your weekly class assignments. Start
work immediately after receiving your topics. Many students do
nothing until the last day before the submission deadline and then
run frantically to me at the eleventh hour complaining about the
problems they are having in getting the required information. My
usual response: Tough, Dear, Tough! You should have started
work promptly and then you wouldnt need to stress yourself out.

Dont pester me for more marks. I evaluate my students


objectively and actually devote considerable time to read line
by line through each examination paper and class assignment.
From nothing comes nothing if your work is crap, be
prepared to get a crappy evaluation from me! And dont whine
about it.

Rules for Course Participants: The DONTs


Dont miss out on your weekly assignments and
examinations. Setting repeat examinations is a big
nuisance for me and some marks are normally deducted
by our department as a disincentive for being absent! In
the event that PM participants have missed out on their
examinations due to compelling circumstances, I will
schedule a single repeat examination, but NO second or
third repeats. If the student also misses the repeat
examination, he or she will be considered as having
scored zero marks which will be final.

It is the responsibility of the PM participants concerned to immediately


contact me if they have missed out on a weekly assignment or examination! Do so as soon as possible.

Rules for PM Course Participants: The DONTs


Dont cheat in the sessional, midterm
or final examinations. If caught, you
may have your paper cancelled by the
department or, at the very least, you may
lose a percentage of your marks.

NO CHEATING & PLAGIARISM!

If I find that your class assignments have,


in full or in part, been plagiarized or copypasted from the World Wide Web without
referencing, I will give you zero marks
and reassign you another topic.
I routinely check to ensure that written
material submitted to me for evaluation is
not plagiarized. We at AU have the
technical means for ensuring this and we
dont hesitate to use it.

ZERO TOLERANCE!

Rules for PM Course Participants: The DONTs


Dont follow the rote (Learning by
Memorization) approach which you
may have grown accustomed to since
your schooldays. It is the WORST thing
you can do in my class apart from
outright misbehaviour and cheating /
plagiarism.
My PowerPoint slides are meant to
serve as a subject guideline only and
are NOT meant to be memorized. DO
NOT reproduce the contents of the
slides in any of your weekly assignments or in any examination.
In case of reproduction, marks will be heavily deducted and your
precious GPA will drop like a stone from the sky.

Look at Projects in Their Broader Context!

Mittelalterlicher Stadt am Fluss Karl Friedrich Schinkel, 1815

The
Essence of
Knowledge
Is Having
It To Apply
It
(Chinese Philiosopher Confucious)
551 B.C 479 B.C

Recommended Course Text Books

Project Management: Strategic Design and implementation


David I. Cleland & Lewis R. Ireland
McGraw Hill, 4th edition, 2002
ISBN: 0-07-139310-2

Project Management: The Managerial Process


Clifford F. Gray & Erik W. Larson
MGraw Hill, 3rd edition, 2006
ISBN: 0-07-060093-7
Project Management: A Managerial Approach
Jack R. Meredith & Samuel J. Mantel, Jr.
John Wiley & Sons, 6th edition, 2006
ISBN: 0-471-74277-5

Assessment of Course Participants


(The A-Student)
The A-Student demonstrates a very high level of
motivation to learn project management. Punctual and
attentive, bright, ambitious and hardworking, he or
she is an avid reader and grasps the subject matter
easily. The A-Student is also inquisitive and often
likes to discuss in detail issues raised by the teacher
who finds it a pleasure and an inspiration to work with
such students.
The A-Students confidently acquire a holistic
perspective and in-depth knowledge of project
management concepts, display excellent analytical
and critical thinking skills, are creative, and have the
ability to easily apply the theoretical knowledge they
acquired from their teacher to real-life case situations
which are presented to them in class or which they
encounter at their workplaces.

Assessment of Course Participants


(The Average Student)
The averagestudent is generally a
good student whose work , though, does
exhibit some noticeable qualitative
deficiencies.
Shortcomings may arise in different
ways. For example, average students
may understand the underlying concepts
of project management and they may
have familiarized themselves with most
or all important aspects of the subject,
but they encounter difficulty in applying
their knowledge to real-life situations.
They may also not properly comprehend
the holistic perspective of project management on which this course is based.

Assessment of Course Participants


(The Horror Student)
These students are a BIG PAIN in my A**!
Typical qualities of a horror student are, among
other irritants, disinterest in attending class and
listening to the lectures, constant fidgeting,
chatting and eagerness to run outside the lecture
hall, poor command over the English language,
unwillingness to read the recommended project
management course literature and do his or her
assignments, and a tendency to rote learn. Not
surprisingly, these students have great difficulty
grasping the subject course material or may
have understood virtually nothing of it at all by the end of semester. They
usually find it highly challenging to apply the concepts and material they
were exposed to in this course, both in class examinations and at their
workplaces. I try to avoid this type of student like the plague!

Terminology

What is a Project? (Definition #1)

A project is a
temporary
endeavour undertaken
to create a unique
product, service, or
(Guide to the Project Management Body of Knowledge,
result
the Project Management Institute, 3 . Ed., 2004, p. 5)
rd

What is a Project? (Definition #2)

A project is a sequence of
unique, complex and connected
activities having one goal or
purpose that must be completed
by a specific time, within budget
and according to specification
(Robert Wysocki / Robert Beck Jr. / Daniel B. Crane: Effective
Project Management, John Wiley & Sons, 2002, p.65)

What is a Project? (Definition #3)

A project is a complex,
nonroutine, one-time effort
limited by time, budget,
resources, and performance
specifications designed to
meet customer needs
(Clifford F. Gray / Erik W. Larson, Project Management:
The Managerial Process, 2. ed., p. 15)

What is a Project? (Definition #4)


A project is an endeavour in which
human, material and financial
resources are organized in a novel
way, to undertake a unique scope
of work of given specification,
within constraints of cost and time,
so as to achieve unitary, beneficial
change, through the delivery of
quantified and qualitative
(J.R. Turner, The Handbook of Project-Based Management:
Improving Processes
for Achieving Your Strategic Objectives,
objectives
Mcgraw Hill: New York, 1992)

What is a Project? (Definition #5)

Projects are ad hoc, resourceconsuming activities used to


implement organizational
strategies, achieve enterprise
goals and objectives, and
contribute to the realization of
the enterprises mission
(David I. Cleland / Lewis R. Ireland, Project Management:
Design and Strategic Implementation, 4th ed., p. 10)

What are Subprojects?


Subprojects are smaller, more
manageable components of larger, more
complex projects
Subprojects have their own goals and
outputs or deliverables which together
constitute the final deliverable.
Subprojects have, analogous to the
main project in which they are
integrated, their own scope, schedules,
costs, human resources, risks etc.
Subprojects are comprised of project team members and are headed by
subproject managers who, similar to the project manager, must have
excellent decision-making, communication and other requisite skills, and
be in a position to manage the implementation of the subproject work
effectively and efficiently.

Subprojects
Example: The Sydney Olympic Games 2000
Events

Human Resources
and Volunteers

Test Games and


Trial Events

Venues, Facilities
Accommodation

Cultural Olympiad

Sponsorship
Management

Transport

Pre-Games Training

Media Facilities
and Coordination

IT-Projects

Telecommunications

Opening and Closing


Ceremonies

Security
Arrangements

Public Relations

Medical Care

Financing

The Sydney Olympic


Games 2000 was a highly
complex project which
comprised several
distinct work areas, each
of which could be considered as subprojects,
in their own right, and
which all had to be integrated and coordinated
within the framework of
the overall olympic
project.

What is a Program?

Immunization
Immunization

S
PL
LE
ES
EX
XA
AM
MP
E

Poverty
Poverty Alleviation
Alleviation

OF
F
O

A programme is basically a group


of related projects managed in
a coordinated way to obtain
benefits and control not
available from managing them
individually

Afforestation
Afforestation
Primary
Primary Education
Education Promotion
Promotion
Electrification
Electrification

Project D

Project A
Project B

Program
X

Project E

Space
Space Exploration
Exploration
Urban
Urban Regeneration
Regeneration
Water
Water Resource
Resource Development
Development

Project C

Project F

Weaponization
Weaponization

S
MM
ME
ES
OG
GR
RA
AM
PR
RO
P

Privatization
Privatization

Program Management
Program Management is defined as a group of
related projects managed in a coordinated
way to obtain benefits and control not
available from managing them individually.
Programs may include elements of related work
outside the scope of the discrete projects in
the program
A program will always have projects.

Example of a Program
Project
Projectfor
forUpgrading
UpgradingEquipment
Equipment
A CAPITAL
INVESTMENT
PROGRAMME

may
comprise
following
projects

Project
Projectfor
forTraining
TrainingPersonnel
Personnel

Project
Projectfor
forExpanding
Expanding
Production
ProductionLines
Lines

Project
Projectfor
forAcquiring
AcquiringLarge-Scale
Large-Scale
Funding
Funding

Example of Program Management


A new communication satellite system:
Designing of a satellite and ground system
Construction of a satellite and ground station
Integration of the system
Launching of the satellite

Programmes & Projects: Similarities


Programmes

and projects have goals and objectives which define


their purpose of existence

Programmes

and projects have life-spans defining a starting and


ending point in time

Programmes

and projects consume resources and necessarily

incur a cost
Programmes

and projects require application of a methodo-logy


and must be managed properly to bolster their chances of success

Programmes

and projects aim at helping organizations achieve


their mission and adding value to them.

Programmes & Projects: Differences


X

Programmes may have multiple overarching goals whereas


projects have one prime goal

A programme has a comparatively longer life-span, and


obviously costs more than the combination of all the projects
which constitute it

A programme is inherently more complex than a constituting


project it has a broader scope and may require extensive
coordination between its various constituting projects

Whereas a project results in the creation of an output and is then


ended, a programme must integrate and maintain the
operationality of that output for a specified period of time

The Project Portfolio

The project portfolio is the set of


projects which an organization is
undertaking. Projects usually differ in
their type, complexity, cost, time
requirement, risk level, priority, etc.

Some portfolios may be quite large,


comprising dozens or hundreds of single
projects,and consume a large chunk of
an organizations resources

The projects comprising the portfolio


may be in various stages of initiation,
planning, and implementation

Portfolios are dynamic. Their


composition will change over time as
some projects end or are prematurely
terminated and new projects are added

A major challenge for organizations is to


devise a system for identifying,
selecting and monitoring projects which
are aligned with its mission, goals and
objectives and add value to them

What is a Project?
A project is a sequence of unique, complex
and connected activities having one goal or
purpose that must be completed by a
specific time, within budget and according
to specification.

A project is a temporary endeavor undertaken


to create a unique product, service or result.

A Project Can Create

A product that can be either a


component of another item or an end
item in itself

A capability to perform a service(e.g., a


business function that supports
production or distribution)

A result such as an outcome or a


document (e.g., a research project that
develops knowledge that can be used to
determine whether a trend is present or
a new process will benefit society).

Main Features of a Project


An

established objective.

To create a unique product, service or result

defined lifespan with a beginning and an end.


End is reached when

Objectives have been achieved


When objectives will not or cannot be met
Need for the project does no longer exist

Specific

Time, Cost and Performance requirements.

What can be the duration of a project?


What about the outcome of a project?

Why Projects?

To

meet strategic business goals and


objectives
Strategic opportunity
Business needs
Customer request
Technological advance
Legal requirements

Types of Projects

Large or Small
Installing a new subway system, which may
cost more than $1 billion and take 10 15
years to complete, is a project.
Preparing a report of monthly sales figures,
which may take you one day to complete.

Involving many people or just You


Training all 10,000 employees of your
organization.
Rearranging the furniture and equipment in
your office.

Types of Projects

Defined by a legal contractor or informal


agreement
A signed contract between you and a
customer that requires you to build a house.
An informal promise you make to install a new
software
package
on
your
colleagues
computer.

Business-related or Personal
Conducting your companys annual
drive.
Having a dinner party for 15 people

blood

Examples of Projects
Developing a new product or service. (Why)
Effecting a change in the structure, staffing or
style of an organization.
Developing or acquiring a new modified
information system.
Constructing a building or infrastructure.
Implementing a new business process or
procedure.
Organizing an annual dinner party for your
employees.
Organizing a fun fair, workshop or seminar.
Etc.

Why do we care?

Projects over budget and behind schedule*


70% of IT projects finish over budget and behind
schedule.
52% finish at 189% of their initial budget.
18% are simply never completed.

Need

for accurate and consistent status information

*Source: The Standish Group

And sometimes.. Its sad, but true

But Why do Projects Fail?

Poorly defined project scope


Inadequate risk management
Failure to identify key assumptions
Lack of effective communication at all levels
Lack of detailed documentation
Failure to track progress
Lack of planning
Inaccurate time and effort estimates
Cultural differences in global projects.

What is Project Management?

The process of successfully guiding a project


from its beginning through its execution to its
closure.

It is the application of:


Knowledge
Skills
Tools
Techniques
To

do project activities to meet project


requirements

What is Project Management?

A
method
and
a
set
of
techniques
based
on
the
accepted
principles
of
management
used
for
planning,
estimating
and
controlling work activities to
reach
a desired end result on
(Robert K. Wysocki / Robert Beck Jr. / David B. Crane, Effective Project
2. ed., John Wiley &
Sons, 2002, p. 79). and
timeManagement,
within
budget
according to specification

What is Project Management?

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 the constraints of
time, cost and resources
[ISO 9001:2000]

What is Project Management?


Project management is the planning,
organizing, directing, and controlling of
company resources for a relatively
short-term objective that has been
established to complete specific goals
and objectives.
(Harold Kerzner, Project Management: A Systems Approach to
Planing, Scheduling and Controlling, John Wiley & Sons, Inc., New
York et. al., 7. ed, 2001, p. 4)

Essential Functions of Project Management

Project

Management

helps

organizations tackle the pressure of


change in environments

global,

economic, market, social, political,


regulatory, technological and others
which are characterized by a high
and increasing degree of complexity,
dynamism and uncertainty.

Essential Functions of Project Management

Project Management offers a focused,


systematic, integrated and processdriven framework of application of an
organizations resources for effective
and

efficient

projects,

realization

and

therewith

its

of

its

goals,

objectives and mission. It is, hence,


an

important

indispensible

for

strategic
an

tool

organizations

Essential Functions of Project Management

Project
about

Management

leadership,

is

primarily

integrating

work

occurring in all project areas, steering the project in the right direction
and

effectively

stakeholders

and

managing
complexity.

Specialized technical tasks and the


tools used in project management often the prime focus of interest by

Essential Functions of Project Management

Project

Management

practices
experience

based
with

teaches
on

years

projects

fields across the globe.

best

in

of

diverse

It should be

kept in mind, though, that what works


well in one project situation may not at
all work well in another.
Use good judgement and always be
cognizant of the context-sensitivity of

Essential Functions of Project Management

Using Project Management is no


guarantee that the project will be
sucessful i.e. that it achieves its
goal within time and allocated
budget to the satisfaction of all
stakeholders
concerned.
What
Project
Management
essentially
does, though, is offer a systematic
but flexible framework which can
increase the chances of the project

Essential Functions of Project Management

The intensity with which Project


Management is applied must be
proportional
to
the
need
and
complexity of that project. Just as one
wouldnt commission a bazooka or a
flame thrower to kill a cockroach, it
would be an error of judgment to apply
the full gamut of project management
processes and tools to a project which
can probably be successfully managed

Essential Functions of Project Management

Project Management seeks at least to


meet - and pre-ferably to exceed stakeholder needs (i.e. the identi-fied
requirements) as well as stakeholder
expecta-tions
(i.e.
unidentified
requirements) from a given project
within the constraints of scope, cost,
time and quality.
Project

Management

is

an

evolving

Benefits of Project Management

Project management was developed to save


time by properly planning a project and
considering all relevant factors which may
affect its outcome.

The benefits have been proven it saves


time and money and generates a more
successful outcome. If guidelines are
followed.

History of Project Management


If you think Im going to tell you a flashy story
while you can conveniently sleep in the class,
youre WRONG!!
Go online, Google History of Project
Management and read it YOURSELF.
You should at least know how it all started.

How does PM benefit you?

You will have goal clarity and measurement


Your resources will be coordinated
Your risks will be identified and managed
You will increase the possibility of time saving
You will increase the possibility of cost saving
You will increase the possibility of achieving
the agreed outcome
You will increase the possibility to deliver
projects successfully.

Project Lifecycle Management

Is a methodology for the preparation,


implementation and evaluation of projects based
on the principles of the logical framework
approach

It describes management activities and decisionmaking procedures used during the life cycle of a
project (key tasks, roles and responsibilities, key
documents and decision options)

Project Lifecycle Management


Is useful in designing, implementing and
monitoring a plan or a project
A clear concise visual presentation of all
the key components of a plan and a basis
for monitoring
It clarifies:

How the project will work


What it is going to achieve
What factors relate to its success
How progress will be measured

The project lifecycle

1. Project Initiation

2. Project Planning

3. Project Execution

4. Project Closure

Role of a Project Manager


The role of a project manager is affected
by the one-shot nature of the project
The role of a project manager is difficult
when team members are still linked to
their permanent work areas

Members may be assigned to several projects


simultaneously

Managers must rely on their


communication skills and powers of
persuasion

Project Manager Attributes

Leader & manager


Facilitator,
coordinator
Communicator
Credibility: Technical/
Administrative
Work under pressure
Goal-oriented
Innovator
Versatilist

Knowledgeable
about the
organization
Political sensitivity
Conflict: sense,
confront, resolve
Can deal with stress,
chaos, ambiguity
Planning and followthrough

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