NewBase 19 April 2024 Energy News issue - 1717 by Khaled Al Awadi.pdf
Project management fundamentals
1. impossible is just an excuse
Fundamentals of Project
Management
Mas Jaffar
2. impossible is just an excuse
Key Concepts
Project Project process groups
Program Project knowledge area
Project manager
Project management office
Project management
Portfolio
Project life cycle
Functional organization Project risk
Matrix organization Stakeholder
Projectized organization Triple constraint
Fundamentals of Project Management Mas Jaffar
3. impossible is just an excuse
Key Techniques
Project management framework
Differences between projects and operational activities
Project management interaction with general management
Project characteristics throughout the life cycle
Stakeholder responsibilities
Triple constraint interactions and dependencies
Project Management knowledge areas (9)
Project Management process groups (5)
Project Management processes (44)
Fundamentals of Project Management Mas Jaffar
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Project: Is a Series of Activities and Tasks that
Have a specific objective to be completed within certain
specifications
Have defined start and end dates
Have funding limits (if applicable)
Consume human and nonhuman resources (i.e., money, people,
equipment)
Are multifunctional (i.e., cut across several functional lines)
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A Project Is Temporary
Unlike day-to-day operation, a project has specific starting and
ending dates. Of the two dates, the ending date is the more
important. A project ends either when its objectives have been met
or when the project is terminated due to its objectives not being
met. If you can’t tell when an endeavor starts or ends, it’s not a
project. This characteristic is important because projects are, by
definition, constrained by a schedule.
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Produces a Product or Service
In addition to having a discrete timeframe, a project must also
have one or more specific products or services it produces. A
project must “do” something. A project that terminates on
schedule might still not be successful—it must also produce
something unique.
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Programs, Portfolios, & PMO
A group of related projects is called a program
A is a collection of projects and programs that satisfy the
strategic needs of an organization is called portfolio
Office primary responsible of managing projects and programs
is commonly called the project management office (PMO)
Fundamentals of Project Management Mas Jaffar
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Project Stakeholders
All people and organizations that have an interest in the project or its
outcome are called project stakeholders. The stakeholders provide
input to the requirements of the project and the direction the project
should take throughout its life cycle
Key stakeholders can include
➤ Project manager—The person responsible for managing the project.
➤ Customer or user—The person or organization that will receive and use the project’s output.
➤ Performing organization—The organization that performs the work of the project.
➤ Project team members—People who are directly involved in performing project work.
➤ Project management team—Members who are directly involved in managing the project.
➤ Sponsor—The person or organization that provides the authority and financial resources.
➤ Influencers—People not directly related to the project’s product but with the ability to affect the
project in a positive or negative way.
➤ Project management office (PMO)—If the PMO exists, it can be a stakeholder if it has
responsibility for the project’s outcome.
Fundamentals of Project Management Mas Jaffar
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The Project Manager
The project manager is the person responsible for managing
the project.
Project manager is the most visible stakeholder.
PM does not have the ultimate authority or responsibility for
any project. Senior management has the ultimate authority for
the project.
PM is granted the authority by senior management to get the
job done and to resolve many issues.
PM is also in charge of the project but often does not control
the resources.
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Project Management
“Project management is the application of knowledge, skills,
tools, and techniques to project activities to meet project
requirements.”
Project management is taking what you know and proactively
applying that knowledge to effectively guide your project
through its life cycle.
The purpose of applying this knowledge is to help the project
meet its objectives.
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Functional Organization
A functional organization structure is a classical hierarchy in
which each employee has a single superior. Employees are then
organized by specialty and work accomplished is generally
specific to that specialty.
Of all the organizational structures, this one tends to be the
most difficult for the project manager.
The project manager lacks the authority to assign resources
and must acquire people and other resources from multiple
functional managers. In many cases, the project’s priority is
viewed lower than operations by the functional manager.
Fundamentals of Project Management Mas Jaffar
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Matrix Organization
A matrix organization is a blended organizational structure.
Although a functional hierarchy is still in place, the project
manager is recognized as a valuable position and is given more
authority to manage the project and assign resources. Matrix
organizations can be further divided into weak, balanced, and
strong matrix organizations. The difference between the three
is the level of authority given to the PM.
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Projectized Organization
In a Projectized organization, there is no defined hierarchy.
Resources are brought together specifically for the purpose of a
project. The necessary resources are acquired for the project,
and the people assigned to the project work only for the PM for
the duration of the project. At the end of each project,
resources are either reassigned to another project or returned
to a resource pool.
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The Triple Constraints
Project scope—How much work is to be done? Increasing the scope
causes more work to be done, and vice versa.
Time—The schedule of the project. Modifying the schedule alters the
start and end dates for tasks in the project and can alter the project’s
overall end date.
Cost—The cost required to accomplish the project’s objectives.
Modifying the cost of the project generally has an impact on the scope,
time, or quality of the project
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Managing Triple Constraints
The key to understanding the triple constraints is that they are
all interrelated.
MP must stay on top of each one to ensure they are balanced.
In addition to managing the triple constraints, the project
manager is also responsible for explaining the need for balance
to the stakeholders. All too often, stakeholders favor one
constraint over another.
Any change to one of the variables will have some effect on
one, or both, of the remaining variables. Likewise, a change to
any of the three variables has an impact on the overall quality
of the project.
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Project Management Process Groups
Process groups serve to group together processes in a project that
represent related tasks and mark a project’s migration toward
completion. The five process groups defined by the PMBOK are
➤ Initiating—Defines the project objectives and grants authority to the project manager
➤ Planning—Refines the project objectives and scope and plans the steps necessary to meet
the project’s objectives
➤ Executing—Puts the project plan into motion and performs the work of the project
➤ Monitoring and controlling—Measures the performance of the executing activities
and compares the results with the project plan
➤ Closing—Documents the formal acceptance of the project’s product and brings all aspects of
the project to a close
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Project Lifecycle and Processes Relationship
The PMBOK defines 44 project processes, grouped into five
process groups. These processes define the path a project
takes through its life cycle.
Throughout the life of a project, different processes are needed
at different times.
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PM Knowledge Areas ˘ (1−5)
(1−
1. Integration Management: Processes and activities that pull the various elements of
project management together, including developing plans, managing project execution,
monitoring work and changes, and closing the project.
2. Scope Management : Processes that ensure the project includes the work required to
successfully complete the project, and no more. This includes scope planning, definition,
verification, and control. This area also includes the work breakdown structure creation
3. Time Management : Processes that ensure the project completes in a timely manner.
Activity sequencing and scheduling activities occur in this area.
4. Cost Management : Processes that ensure the project completes within the approved
budget. Basically, any cost management activity goes here.
5. Quality Management: Processes that ensure the project will meet its objectives. This
area includes quality planning, assurance, and control.
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PM Knowledge Areas ˘ (6−9)
(6−
6. Human Resource Management: Processes that organize and manage the project
team.
7. Project Communication Management: Processes that specify how and when
team members communicate and share information with one another and Management others
not on the team.
8. Risk Management: Processes that conduct risk management activities for the project.
These activities include risk analysis, response planning, monitoring, and control.
9. Procurement Management: Processes that manage the acquisition of products and
services for the project, along with seller and contract management.
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Grouping Processes related to Knowledge Area
Monitoring and
Knowledge Initiating Planning Executing Controlling Closing
Area Process Gp Process Gp Process Gp Process Gp Process Gp
Project Develop Project Charter Develop Direct and Monitor and Close
Management Develop Preliminary Project Manage Control Project
Integration Project Scope Management Project Project Work
Statement Plan Execution Integrated Change
Control
Project Scope Planning Scope Verification
Scope Scope Definition Scope Control
Management Create WBS
Project Time Activity Definition Schedule Control
Management Activity Sequencing
Activity Resource Estimation
Activity Duration Estimating
Schedule Development
Project Cost Cost Estimating Cost Control
Management Cost Budgeting
Project Quality Planning Perform Perform
Quality Quality Quality
Management Assurance Control
Project Human Acquire Manage
Human Resource Project Project
Resources Planning Team Team
Management Develop Project
Team
Project Communication Information Performance
Communications Planning Distribution Reporting
Management Manage
Stakeholders
Project Risk Management Risk
Risk Planning Monitoring and
Management Risk Identification Control
Qualitative Risk Analysis
Quantitative Risk Analysis
Risk Response Planning
Project Plan Purchases Request Contract Contract
Procurement and Acquisitions Seller Responses Administration Closure
Management Plan Contracting Select Sellers
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Initiation Process Group
Formally authorizes new project or project phase. The two processes are
1. Develop project charter—Authorizing project or project phase. The
project charter defines project’s purpose, identifies objectives, and
authorizes the project manager to start the project.
2. Develop preliminary project scope statement— Documents the
project and the deliverable requirements, product requirements, project
boundaries, methods of acceptance, and high level scope control.
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Planning Process Group
Defines objectives and plans course of action required to meet objectives
and project scope. Facilitates project planning across process groups. The 21
processes are
1. Develop project management plan
12. Quality planning
2. Scope planning
13. Human resource planning
3. Scope definition
14. Communications planning
4. Create WBS
15. Risk management planning
5. Activity definition
16. Risk identification
6. Activity sequencing
17. Qualitative risk analysis
7. Activity resource estimating
18. Quantitative risk analysis
8. Activity duration estimating
19. Risk response planning
9. Schedule development
20. Plan purchases and acquisitions
10. Cost estimating
21. Plan contracting
11. Cost budgeting
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Executing Process Group
Integrates resources to carry out project management plan. These seven
processes are
1. Direct and manage project execution
2. Perform quality assurance
3. Acquire project team
4. Develop project team
5. Information distribution
6. Request seller responses
7. Select sellers
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Monitoring and Controlling Process Group
Monitors progress to identify variances from the project management plan
so corrective action can be taken to meet project objectives. The following
12 processes are included:
1. Monitor and control project work 7. Perform quality control
2. Integrated change control 8. Manage project team
3. Scope verification 9. Performance reporting
4. Scope control 10. Manage stakeholders
5. Schedule control 11. Risk monitoring and control
6. Cost control 12. Contract administration
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Closing Group
Formalizes acceptance of product, service, or result and brings
project or project phase to an end. The following two processes are
included:
1. Close project—Finalizing all activities across process groups to
formally close project or project phase.
2. Contract closure—Completing each contract, including
resolution of open items, and closing each contract relevant to
project or project phase.
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PM General Management Skills
Required general management areas of expertise include
➤ Accounting
➤ Health, safety, and regulatory compliance practices
➤ Human resources services
➤ Information technology services and support
➤ Legal issues
➤ Logistics
➤ Manufacturing and distribution
➤ Purchasing and procurement
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PM Interpersonal Skills
Required interpersonal skills includes
➤ Fostering effective communication
➤ Influencing decisions
➤ Developing and providing leadership
➤ Providing individual and team motivation
➤ Managing conflict
➤ Solving problems
Fundamentals of Project Management Mas Jaffar