Project Management Fundamentals. Office of the Senior Associate Vice President for Finance

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1 Project Management Fundamentals

2 Project Management Institute PMI is an aggregation of best practices from thousands of professional project managers Principles in this training are based on PMI methodologies, there are other methodologies Organizations typically use these as a basis for developing custom project management processes For PMPs, this course counts towards PDUs. Page 2

3 GW MS in Project Management business.gwu.edu/mspm/ Page 3

4 Outline 1. Project Issues 2. Project Characteristics Definition of a Project Project vs. Operations Key Elements of Project Management Project Lifecycle Phases Project Management Functions 3. Project Participants Project Stakeholders Project Sponsor & Owner Project Manager Project Team 4. Basic Project Tools Project Charter Project Management Plan WBS / Schedule Action / Risk / Change Tracking Document Management Page 4

5 Project Issues Page 5

6 Project Characteristics Page 6

7 Definition of a Project Project - A temporary endeavor undertaken to create a unique product, service, or result. Temporary / Not Ongoing - Definite beginning and end - Does not mean a short duration - Does not necessarily apply to product, service, or result created by a project Unique - Outcome is a unique deliverable - Could come in the form of either products, services or results Page 7

8 Projects vs. Operations Both Projects and Operations are Performed by teams of people Achieved by means of work Constrained by limited resources Planned, executed, and controlled The primary differences are Projects Purpose of the project is to attain its objective and ends Operations Purpose of an ongoing operation is to sustain the business Ends with transition to operations Project team comes together at beginning and disbands at end Only ends with product, process or service no longer needed Team continues to perform tasks Page 8

9 Key Elements of Project Management Define Establish clear and achievable objectives Plan Develop the specific project management approach Triple Constraints Communicate Keep stakeholders informed Manage Schedule/time, cost/resource & quality/scope control Page 9

10 Effect of Stakeholders & Changes At the start of the project: The level of uncertainty is highest Stakeholders influence is highest Risk of failing to achieve the objectives is greatest Towards the end of the project: Cost of changes increases Stakeholder influence decreases Risk of failing to achieve objectives is reduced High Stakeholder Influence Cost of Changes Low Project Time Page 10

11 Project Life Cycle Initiating The Five Project Phases Planning Monitoring & Controlling Executing Closing Page 11

12 Project Management Functions Scope Management Time Management Cost Management Quality Management HR Management Communications Mgt Risk Management Procurement Mgt Project Integration PMI refers to these as Knowledge Areas. These are the actual functions performed within the life cycle phases. Page 12

13 Project Life Cycle Initiating Planning Monitoring & Controlling Bridge Team Reunion Discuss and list examples of where these processes were used in the bridge project. What additional activities could have been performed? Executing Closing Page 13

14 Project Participants Page 14

15 Project Stakeholders Project Stakeholder People or groups positively or negatively affected by the project outcome. Vendors Functional Managers Project Sponsors Project Team Business Partners Operations Customers / Users Stakeholders may or may not exert direct influence over the project Page 15

16 Project Sponsors / Owners Project Sponsor Champions, charters and funds the project, fosters cross-organizational support, manages escalations, makes key decisions and provides overall direction. In Finance, this is divided into two roles Project Owner Accountable owner of the project objectives and outcome Provides funding and resources for the project, including the PM Manages the overall timeline (at a high-level) and key deliverables Provides regular decision making and direction for the project Approves key deliverables and artifacts Executive Sponsor Champions the project at the executive level Provides approval for the initiating group to fund the project Fosters support amongst other participating organizations Manages very high-level direction and escalations Approves phase and project completions Page 16

17 Project Manager Project Manager Accountable manager of the project, including planning, leading, managing, monitoring, escalating and communicating project status, issues and tasks. Scope Time Cost Risk Communications Project Manager Quality Human Resources Procurement Integration Page 17

18 Project Team Project Team Team members who carry out the work, including the project manager, project management team and team members with specific expertise to carry out the work. Temporary Reporting Matrix Project Management Team ~Coordinate, administer and monitor the project~ Project Leads ~Own deliverables from their areas~ Project managers do not have to be the SMEs for a project to be successful Page 18

19 Basic Project Tools Page 19

20 Project Charter Authorizes the project Defines high-level scope, exclusions, objectives, milestones & timeline Establishes project leadership, including project manager Authorizes the budget Outlines assumptions/constraints Commits general resource availability Prepared by project owner Approved by executive sponsor Page 20

21 Business Requirements Defines the what for the solution to be delivered Breaks overall scope into specific actionable deliverables Allows the team to develop specifications for development of product, process or service Provides traceability of project team activities to project scope Prepared by project team in collaboration with customer / users Approved by project owner Page 21

22 Project Management Plan Establishes the plan for project planning, execution, monitoring and closing Includes all subsidiary plans Defines the project phases and deliverables Establish clear project roles and responsibilities Prepared by project manager Approved by functional & project managers Page 22

23 Work Breakdown Structure Control Account Level Software Implementation Project Stakeholder Communications WBS1 Website Development WBS2 Planning Package Level Posters WBS 1.1 Postcards / Mailings WBS 1.2 Initial announcement WBS WBS1.3 First reminder WBS1.3.2 Meetings / Seminars WBS 1.4 Last reminder WBS Graphics Design WBS2.1 Work Package Level Breaks deliverables into manageable work packages Critical to the ability to determine resources needed, effort levels & cost Page 23

24 Project Schedule Sequences and defines detailed project tasks Monitors status of project against milestones / baselines Guides project team in daily work activities Identifies task and external dependencies Identifies critical path and areas of required escalation Manages resource usage Page 24

25 Action, Risk & Change Tracking To Do List Log and track all actions and issues being worked on by the project team ensure accountability Identify, log and monitor all risks to the project a continual process Log and manage all formal Change Requests any request to modify the project scope (change request process defined in project management plan) Page 25

26 Documentation Management RASI / RACI Matrix Responsible, Approve, Support/Consult, Inform Clearly communicates documentation anticipated as part of project Clearly communicates roles required to complete documentation Page 26

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