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Effective of Project Management 2012




    Effective of Project
    Management
    Chapter-1 Notes
    Made By Badar-e-Alam –Anwar

    Study Program: MBA E (3.5years)

    Reg-no.1432-212048

    Contact No: 0344-9074432

    Y-mail: Darkshade00@yahoo.com




Chapter-1 notes                                      Page 1
Effective of Project Management 2012

                              Project Management
What is Project?
Projects have a purpose: projects have clearly-defined aims and set out to produce clearly
defined results. Their purpose is to solve a “problem”, and this involves analysing needs
beforehand. Suggesting one or more solutions, it aims at lasting social change.

Projects are realistic: their aims must be achievable, and this means taking account both of
requirements and of the financial and human resources available.

Projects are limited in time and space: they have a beginning and an end, and are
implemented in a specific place and context.

Projects are complex: projects call on various planning and implementation skills, and
involve various partners and players.

Projects are collective: projects are the product of collective endeavour. They are run by
teams, involve various partners and cater for the needs of others.

Projects are unique: all projects stem from new ideas. They provide a specific response to a
need (problem) in a specific context. They are innovative.

Projects are an adventure: every project is different and ground-breaking; they always
involve some uncertainty and risk.

Projects can be assessed: projects are planned and broken down into measurable aims,
which must be open to evaluation.

Projects are made up of stages: projects have distinct, identifiable stages.

What is Project Management?

Project management is the science (and art) of organizing the components of a project,
whether the project is development of a new product, the launch of a new service, a
marketing campaign, or a wedding. A project isn't something that's part of normal business
operations. It's typically created once, it's temporary, and it's specific. As one expert notes, "It
has a beginning and an end." A project consumes resources (whether people, cash, materials,
or time), and it has funding limits.




Project Management Basics

Chapter-1 Notes                                                                              Page 2
Effective of Project Management 2012

No matter what the type of project, project management typically follows the same pattern:

   1. Definition
   2. Planning
   3. Execution
   4. Control
   5. Closure

Projects are singular, but non-routine, events with precise objectives which must be achieved
within a set timeframe. Projects are broken into a set of activities designed to fulfil the stated
objectives. Examples of projects include the building of a house, the holding of an event like
a party or even something as simple as completing a school assignment.

Project Management requires the organisation of people, equipment and procedures in an
appropriate way to get a project completed within a set timeframe and budget. A Project
Manager is responsible for the coordination of all these resources in order to achieve the
project objectives.

The following need to be considered when planning a project

   •   Purpose and aim of the project

   •   Resources available both human and material

   •   Costing, human and time constraints

   •   The tasks, procedures or activities required to complete the project

Project management techniques are used by organisations because they ensure that
organisational objectives and system objectives are being met in a timely, accurate, relevant
and complete manner. They provide a way of controlling people, resources and procedures,
and clearly identify the tasks that must be completed and the desired completion time.

What is a program?
A program is a portfolio comprised of multiple projects that are managed and coordinated as
one unit with the objective of achieving (often intangible) outcomes and benefits for the
organization.

Difference between a Project and a Program
The following table summarizes the main areas of difference between a project and a
program.




Chapter-1 Notes                                                                             Page 3
Effective of Project Management 2012

                  Project                                      Program

   1. A project is a collaborative enterprise,   •   A program on the other hand is the act
      frequently involving research or               of creating and managing multiple
      design that is carefully planned to            projects where in most cases the
      achieve a particular aim.                      projects are related.
   2. A project is usually short term with       •   A program is an ongoing process in
      time constraints.                              order to achieve major objectives.
   3. Outputs – tangible; relatively easy to     •   Outcomes – often intangible; difficult
      describe, define and measure; tending          to quantify; benefits often based on
      towards objective.                             changes to organizational culture and
                                                     behaviors; introducing new
                                                     capabilities into the organization;
                                                     tending towards subjective.
   4. Strictly limited; tightly defined; not     •   Not tightly defined or bounded; likely
      likely to be subject to material change        to change during the life cycle of the
      during the life of the project.                program.
   5. Relatively short term; typically three     •   Relatively long term typically
      to six months.                                 eighteen months to three years.
   6. Project risk is relatively easy to         •   Program risk is more complex and
      identify and manage. The project               potentially the impact on the
      failure would result in relatively             organization if a risk materializes will
      limited impact on the organization             be greater relative to project risk.
      relative to program risk.                      Programme failure could result in
                                                     material financial, reputational or
                                                     operational loss.
   7. A relatively limited number of             •   Ill-defined; often disagreement
      potential solutions.                           between key stakeholders on the
                                                     nature and definition of the problem.
   8. A relatively limited number of             •   A significant number of potential
      stakeholders.                                  solutions with often with
                                                     disagreement between stakeholders as
                                                     to the preferred solution.
   9. Environment within which the project       •   Environment is dynamic; and
      takes place is understood and                  programme objectives need to be
      relatively stable.                             managed in the context of the
                                                     changing environment within which
                                                     the organization operates.
   10. Environment within which the project      •   Resources are constrained and
       takes place is understood.                    limited; there is competition for
                                                     resources between projects.




Chapter-1 Notes                                                                       Page 4
Effective of Project Management 2012

                                Project Parameters
Five constraints operate on every project:

           -   Scope

           -   Quality

           -   Cost

           -   Time

           -   Recourses

Scope

Scope is the agreed scope of the work to be performed. Scope is rather subjective and needs
to be carefully defined if it is to be clearly understood and agreed.

Scope looks at the outcome of the project undertaken. This consists of a list of deliverables
which need to be addressed by the project team. A successful project manager will know to
manage both the scope of the project and any change in scope which impacts time and cost.

Quality

Quality is the agreed quality of the project outcomes everything from the requirements and
design documents to the project products or services e.g., a new computer system, a bridge,
or whatever is being produced.

Quality is not a part of the project management triangle, but it is the ultimate objective of
every delivery. Hence, the project management triangle represents implies quality.

Time

Time in this perspective represents the total time to deliver a project, based on the agreed
Scope and Quality constraints. As such time is very easy to measure, once the Scope and
Quality is agreed and understood.

                                               OR

Time is a crucial factor which is uncontrollable. On the other hand, failure to meet the
deadlines in a project can create adverse effects. Most often, the main reason for
organizations to fail in terms of time is due to lack of resources.



Cost

Chapter-1 Notes                                                                            Page 5
Effective of Project Management 2012

Cost is the total cost to deliver the project. Again, cost is very easy to define and measure and
is a function of the project management effort required to deliver the Scope of work to the
Quality required in the Time agreed.

                                               OR

It's imperative for both the project manager and the organization to have an estimated cost
when undertaking a project. Budgets will ensure that project is developed or implemented
below a certain cost.

Sometimes, project managers have to allocate additional resources in order to meet the
deadlines with a penalty of additional project costs.

Resource
Resources are required to carry out the project tasks. They can be people, equipment,
facilities, funding, or anything else capable of definition (usually other than labour) required
for the completion of a project activity. The lack of a resource will therefore be a constraint
on the completion of the project activity. Resources may be storable or non storable. Storable
resources remain available unless depleted by usage, and may be replenished by project tasks
which produce them. Non-storable resources must be renewed for each time period, even if
not utilised in previous time periods.
Resource scheduling, availability and optimisation are considered key to successful project
management.
Allocation of limited resources is based on the priority given to each of the project activities.
Their priority is calculated using the Critical path method and heuristic analysis. For a case
with a constraint on the number of resources, the objective is to create the most efficient
schedule possible - minimising project duration and maximising the use of the resources
available.


What is Creep?
Creep (as in functionality-creep, feature-creep, mission-creep and scope-creep) is a problem
in project management where the initial objectives of the project are jeopardized by a gradual
increase in overall objectives as the project progresses.
The need to achieve the new objectives can overwhelm the capacity of the resources allocated
to the project resulting in the project missing deadlines, budgets or failing completely.




Write a note on following.

           1. Scope creep

Chapter-1 Notes                                                                            Page 6
Effective of Project Management 2012

           2. Hope creep

           3. Effort creep

           4. Future creep

   1. Scope Creep
       Scope creep is defined as adding features and functionality (project scope) without
       addressing the effects on time, costs, and resources, or without customer approval.
       (PMBOK)

       Other definitions:

       “Scope creep is the piling up of small changes that by themselves are manageable, but
       in aggregate are significant.”

       “Scope creep refers to the change in a project's scope after the project work has
       started. Typically, the scope expands by the addition of new features to an already
       approved feature list.”

   •   Poor implementation of change control.

   •   Incomplete gathering of requirements before project execution begins.

   •   Insufficient involvement of critical stakeholders (including customer)

       Lack of support from executive sponsor and enforcement power in project manager

   •   Scope Creep is one of the main reasons why projects fail.

   •   A variety of reasons can be responsible for scope creep.

   •   Scope verification is key.

   2. Hope creep
Yes hope creep is different from scope creep. In short, hope creep is lying about the status of
the project/task until you're caught.
For project managers, hope creep happens when the project manager starts lying about the
status of the project (which is behind schedule and over-budget) to the stakeholders and the
client, while hoping that he will be able to get the project on track before anyone discovers
the truth. Since hope creep involves lying to important people either inside or outside the
company, the project manager will always be in panic mode because he knows that he'll most
likely be fired when the truth comes out, and it usually does.

Similarly to scope creep, nothing good comes out from hope creep. In fact, it is nearly

Chapter-1 Notes                                                                           Page 7
Effective of Project Management 2012

impossible for the project manager to get the project on track (schedule and budget wise)
once he starts lying.

   3. Effort creep
It is not really related to scope creep with the exception that they're both creeps and they both
negatively affect the project.

Effort creep is when one of your team members makes a huge effort on a task that is nearly
done, but cannot finish it. For example, a task is 80% done in one week, and the team
member is working on the remaining 20% for several weeks, with no end in sight. This is
very common in software projects, and the perfect remedy for effort creep is to assign the
remainder of the task to someone else who has more experience in the particular area of the
task.
Alternatively, the project manager can talk to the team member about the difficulties facing
him while working on this task, although this is normally useless, as the reason is always
related to the team member's inexperience and inadequacy for the task, and most team
members are reluctant to admit it.

   4. Future creep
Feature creep, also called scope creep, refers to the tendency of project requirements to
exceed their original estimations. It is common with the development of major computer
projects, in which engineers decide that additional features should be added to the product
before release to make it more usable and enjoyable for the target market. It can also happen
when the client contracting the project keeps adding to the wish list. Feature creep can affect
the overall budget for a project, as well as delaying the release time considerably, causing
frustration to company executives. It can also ultimately weaken a product by clogging it
with interesting but unneeded features, so companies need to take care to avoid it.
The problem can be mitigated by having a tightly organized project team which recognizes
the exact requirements of the project and works together to meet them. A
project manager who is aware of the risks of feature creep can help to head it off at the pass
by refocusing the team or reminding the client of the original goals of the project. On
occasion, feature creep is actually necessary, especially with large projects in which
engineers are exploring new concepts. In these instances, several team members should meet
together to evaluate the feature creep which is occurring and decide whether or not it is a
valid result of the direction in which the project is moving.


Q: Write a note on the Scope of Triangle?
Answer:

Scope Triangle


Chapter-1 Notes                                                                            Page 8
Effective of Project Management 2012

Called the ‘Scope Triangle’ or the ‘Quality Triangle’ this shows the trade-offs inherent in any
project.

The triangle illustrates the relationship between three primary forces in a project. Time is the
available time to deliver the project, cost represents the amount of money or resources
available and quality represents the “fit-topurpose” that the project must achieve to be a
success.

In reality the normal situation is that one of these factors is fixed and the other two will vary
in inverse proportion to each other. For example “Time” is often fixed in a project and the
“Quality” of the end project will depend on the “Cost” or resources available. Similarly if you
are working to a fixed level of “Quality” then the “Cost” of the project will largely be
dependent upon the “Time” available (if you have longer you can do it with fewer people).

A phenomenon known in project management circles as “scope creep” can be linked to the
triangle too. Scope creep is the almost unstoppable tendency a project has to accumulate new
functionality. Some scope creep is inevitable since early on, your project will probably be
poorly defined and will need to evolve. A large amount of scope creep however can be
disastrous.

When the scope starts to creep new functionality must be added to cover the increased scope.
This is represented by the quality arm of the triangle, representing the ability of the ‘product’
to fulfil users’ requirements. More requirements fulfilled = a better quality product.

In this situation you have three , and only three options:

1. Add time – delay the project to give you more time to add the functionality

2. Add cost – recruit, hire or acquire more people to do the extra work

3. Cut quality – trade off some non-essential requirements for the new requirements

If the art of management lies in making decisions, then the art of project management lies in
making decisions quickly! When faced with such a dilemma you should not hesitate to take
one of the three options listed above. Delaying raises the risk of your project failing.




Chapter-1 Notes                                                                           Page 9

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Project management chapter 1 notes

  • 1. Effective of Project Management 2012 Effective of Project Management Chapter-1 Notes Made By Badar-e-Alam –Anwar Study Program: MBA E (3.5years) Reg-no.1432-212048 Contact No: 0344-9074432 Y-mail: Darkshade00@yahoo.com Chapter-1 notes Page 1
  • 2. Effective of Project Management 2012 Project Management What is Project? Projects have a purpose: projects have clearly-defined aims and set out to produce clearly defined results. Their purpose is to solve a “problem”, and this involves analysing needs beforehand. Suggesting one or more solutions, it aims at lasting social change. Projects are realistic: their aims must be achievable, and this means taking account both of requirements and of the financial and human resources available. Projects are limited in time and space: they have a beginning and an end, and are implemented in a specific place and context. Projects are complex: projects call on various planning and implementation skills, and involve various partners and players. Projects are collective: projects are the product of collective endeavour. They are run by teams, involve various partners and cater for the needs of others. Projects are unique: all projects stem from new ideas. They provide a specific response to a need (problem) in a specific context. They are innovative. Projects are an adventure: every project is different and ground-breaking; they always involve some uncertainty and risk. Projects can be assessed: projects are planned and broken down into measurable aims, which must be open to evaluation. Projects are made up of stages: projects have distinct, identifiable stages. What is Project Management? Project management is the science (and art) of organizing the components of a project, whether the project is development of a new product, the launch of a new service, a marketing campaign, or a wedding. A project isn't something that's part of normal business operations. It's typically created once, it's temporary, and it's specific. As one expert notes, "It has a beginning and an end." A project consumes resources (whether people, cash, materials, or time), and it has funding limits. Project Management Basics Chapter-1 Notes Page 2
  • 3. Effective of Project Management 2012 No matter what the type of project, project management typically follows the same pattern: 1. Definition 2. Planning 3. Execution 4. Control 5. Closure Projects are singular, but non-routine, events with precise objectives which must be achieved within a set timeframe. Projects are broken into a set of activities designed to fulfil the stated objectives. Examples of projects include the building of a house, the holding of an event like a party or even something as simple as completing a school assignment. Project Management requires the organisation of people, equipment and procedures in an appropriate way to get a project completed within a set timeframe and budget. A Project Manager is responsible for the coordination of all these resources in order to achieve the project objectives. The following need to be considered when planning a project • Purpose and aim of the project • Resources available both human and material • Costing, human and time constraints • The tasks, procedures or activities required to complete the project Project management techniques are used by organisations because they ensure that organisational objectives and system objectives are being met in a timely, accurate, relevant and complete manner. They provide a way of controlling people, resources and procedures, and clearly identify the tasks that must be completed and the desired completion time. What is a program? A program is a portfolio comprised of multiple projects that are managed and coordinated as one unit with the objective of achieving (often intangible) outcomes and benefits for the organization. Difference between a Project and a Program The following table summarizes the main areas of difference between a project and a program. Chapter-1 Notes Page 3
  • 4. Effective of Project Management 2012 Project Program 1. A project is a collaborative enterprise, • A program on the other hand is the act frequently involving research or of creating and managing multiple design that is carefully planned to projects where in most cases the achieve a particular aim. projects are related. 2. A project is usually short term with • A program is an ongoing process in time constraints. order to achieve major objectives. 3. Outputs – tangible; relatively easy to • Outcomes – often intangible; difficult describe, define and measure; tending to quantify; benefits often based on towards objective. changes to organizational culture and behaviors; introducing new capabilities into the organization; tending towards subjective. 4. Strictly limited; tightly defined; not • Not tightly defined or bounded; likely likely to be subject to material change to change during the life cycle of the during the life of the project. program. 5. Relatively short term; typically three • Relatively long term typically to six months. eighteen months to three years. 6. Project risk is relatively easy to • Program risk is more complex and identify and manage. The project potentially the impact on the failure would result in relatively organization if a risk materializes will limited impact on the organization be greater relative to project risk. relative to program risk. Programme failure could result in material financial, reputational or operational loss. 7. A relatively limited number of • Ill-defined; often disagreement potential solutions. between key stakeholders on the nature and definition of the problem. 8. A relatively limited number of • A significant number of potential stakeholders. solutions with often with disagreement between stakeholders as to the preferred solution. 9. Environment within which the project • Environment is dynamic; and takes place is understood and programme objectives need to be relatively stable. managed in the context of the changing environment within which the organization operates. 10. Environment within which the project • Resources are constrained and takes place is understood. limited; there is competition for resources between projects. Chapter-1 Notes Page 4
  • 5. Effective of Project Management 2012 Project Parameters Five constraints operate on every project: - Scope - Quality - Cost - Time - Recourses Scope Scope is the agreed scope of the work to be performed. Scope is rather subjective and needs to be carefully defined if it is to be clearly understood and agreed. Scope looks at the outcome of the project undertaken. This consists of a list of deliverables which need to be addressed by the project team. A successful project manager will know to manage both the scope of the project and any change in scope which impacts time and cost. Quality Quality is the agreed quality of the project outcomes everything from the requirements and design documents to the project products or services e.g., a new computer system, a bridge, or whatever is being produced. Quality is not a part of the project management triangle, but it is the ultimate objective of every delivery. Hence, the project management triangle represents implies quality. Time Time in this perspective represents the total time to deliver a project, based on the agreed Scope and Quality constraints. As such time is very easy to measure, once the Scope and Quality is agreed and understood. OR Time is a crucial factor which is uncontrollable. On the other hand, failure to meet the deadlines in a project can create adverse effects. Most often, the main reason for organizations to fail in terms of time is due to lack of resources. Cost Chapter-1 Notes Page 5
  • 6. Effective of Project Management 2012 Cost is the total cost to deliver the project. Again, cost is very easy to define and measure and is a function of the project management effort required to deliver the Scope of work to the Quality required in the Time agreed. OR It's imperative for both the project manager and the organization to have an estimated cost when undertaking a project. Budgets will ensure that project is developed or implemented below a certain cost. Sometimes, project managers have to allocate additional resources in order to meet the deadlines with a penalty of additional project costs. Resource Resources are required to carry out the project tasks. They can be people, equipment, facilities, funding, or anything else capable of definition (usually other than labour) required for the completion of a project activity. The lack of a resource will therefore be a constraint on the completion of the project activity. Resources may be storable or non storable. Storable resources remain available unless depleted by usage, and may be replenished by project tasks which produce them. Non-storable resources must be renewed for each time period, even if not utilised in previous time periods. Resource scheduling, availability and optimisation are considered key to successful project management. Allocation of limited resources is based on the priority given to each of the project activities. Their priority is calculated using the Critical path method and heuristic analysis. For a case with a constraint on the number of resources, the objective is to create the most efficient schedule possible - minimising project duration and maximising the use of the resources available. What is Creep? Creep (as in functionality-creep, feature-creep, mission-creep and scope-creep) is a problem in project management where the initial objectives of the project are jeopardized by a gradual increase in overall objectives as the project progresses. The need to achieve the new objectives can overwhelm the capacity of the resources allocated to the project resulting in the project missing deadlines, budgets or failing completely. Write a note on following. 1. Scope creep Chapter-1 Notes Page 6
  • 7. Effective of Project Management 2012 2. Hope creep 3. Effort creep 4. Future creep 1. Scope Creep Scope creep is defined as adding features and functionality (project scope) without addressing the effects on time, costs, and resources, or without customer approval. (PMBOK) Other definitions: “Scope creep is the piling up of small changes that by themselves are manageable, but in aggregate are significant.” “Scope creep refers to the change in a project's scope after the project work has started. Typically, the scope expands by the addition of new features to an already approved feature list.” • Poor implementation of change control. • Incomplete gathering of requirements before project execution begins. • Insufficient involvement of critical stakeholders (including customer) Lack of support from executive sponsor and enforcement power in project manager • Scope Creep is one of the main reasons why projects fail. • A variety of reasons can be responsible for scope creep. • Scope verification is key. 2. Hope creep Yes hope creep is different from scope creep. In short, hope creep is lying about the status of the project/task until you're caught. For project managers, hope creep happens when the project manager starts lying about the status of the project (which is behind schedule and over-budget) to the stakeholders and the client, while hoping that he will be able to get the project on track before anyone discovers the truth. Since hope creep involves lying to important people either inside or outside the company, the project manager will always be in panic mode because he knows that he'll most likely be fired when the truth comes out, and it usually does. Similarly to scope creep, nothing good comes out from hope creep. In fact, it is nearly Chapter-1 Notes Page 7
  • 8. Effective of Project Management 2012 impossible for the project manager to get the project on track (schedule and budget wise) once he starts lying. 3. Effort creep It is not really related to scope creep with the exception that they're both creeps and they both negatively affect the project. Effort creep is when one of your team members makes a huge effort on a task that is nearly done, but cannot finish it. For example, a task is 80% done in one week, and the team member is working on the remaining 20% for several weeks, with no end in sight. This is very common in software projects, and the perfect remedy for effort creep is to assign the remainder of the task to someone else who has more experience in the particular area of the task. Alternatively, the project manager can talk to the team member about the difficulties facing him while working on this task, although this is normally useless, as the reason is always related to the team member's inexperience and inadequacy for the task, and most team members are reluctant to admit it. 4. Future creep Feature creep, also called scope creep, refers to the tendency of project requirements to exceed their original estimations. It is common with the development of major computer projects, in which engineers decide that additional features should be added to the product before release to make it more usable and enjoyable for the target market. It can also happen when the client contracting the project keeps adding to the wish list. Feature creep can affect the overall budget for a project, as well as delaying the release time considerably, causing frustration to company executives. It can also ultimately weaken a product by clogging it with interesting but unneeded features, so companies need to take care to avoid it. The problem can be mitigated by having a tightly organized project team which recognizes the exact requirements of the project and works together to meet them. A project manager who is aware of the risks of feature creep can help to head it off at the pass by refocusing the team or reminding the client of the original goals of the project. On occasion, feature creep is actually necessary, especially with large projects in which engineers are exploring new concepts. In these instances, several team members should meet together to evaluate the feature creep which is occurring and decide whether or not it is a valid result of the direction in which the project is moving. Q: Write a note on the Scope of Triangle? Answer: Scope Triangle Chapter-1 Notes Page 8
  • 9. Effective of Project Management 2012 Called the ‘Scope Triangle’ or the ‘Quality Triangle’ this shows the trade-offs inherent in any project. The triangle illustrates the relationship between three primary forces in a project. Time is the available time to deliver the project, cost represents the amount of money or resources available and quality represents the “fit-topurpose” that the project must achieve to be a success. In reality the normal situation is that one of these factors is fixed and the other two will vary in inverse proportion to each other. For example “Time” is often fixed in a project and the “Quality” of the end project will depend on the “Cost” or resources available. Similarly if you are working to a fixed level of “Quality” then the “Cost” of the project will largely be dependent upon the “Time” available (if you have longer you can do it with fewer people). A phenomenon known in project management circles as “scope creep” can be linked to the triangle too. Scope creep is the almost unstoppable tendency a project has to accumulate new functionality. Some scope creep is inevitable since early on, your project will probably be poorly defined and will need to evolve. A large amount of scope creep however can be disastrous. When the scope starts to creep new functionality must be added to cover the increased scope. This is represented by the quality arm of the triangle, representing the ability of the ‘product’ to fulfil users’ requirements. More requirements fulfilled = a better quality product. In this situation you have three , and only three options: 1. Add time – delay the project to give you more time to add the functionality 2. Add cost – recruit, hire or acquire more people to do the extra work 3. Cut quality – trade off some non-essential requirements for the new requirements If the art of management lies in making decisions, then the art of project management lies in making decisions quickly! When faced with such a dilemma you should not hesitate to take one of the three options listed above. Delaying raises the risk of your project failing. Chapter-1 Notes Page 9