Project Management Fundamentals: Definitions and Key Concepts
Project Management Fundamentals
Project: A temporary endeavor undertaken to create a unique product, service, or result. It has a defined start and end date and is designed to achieve a specific goal.
Project Management
Project management: The application of knowledge, skills, tools, and techniques to project activities to meet project requirements.
Key Functions of Project Management:
- Identify project requirements
- Set clear and achievable goals
- Balance demands for quality, scope, time, and cost
- Plan, monitor, and control the project
- Define and estimate resources
- Analyze the impact of changes
Project Lifecycle
Life cycle: Requirements, planning, development, control, and closure.
Organizational Structures
Classical Functional Organization
ADVANTAGES: Grouped by specialties, single supervisor, well-defined career path in each area of specialization.
DISADVANTAGES: Emphasis on functional specialty to the detriment of the project; project manager has no authority, no career path for project management.
Project-Oriented Organization
ADVANTAGES: Efficient project organization, project loyalty, more effective communication.
DISADVANTAGES: Less effective use of resources, lack of professionalization in project disciplines, duplication of functions.
Matrix Organization
ADVANTAGES: Maximum use of scarce resources, greater support from functional areas, greater control of resources by the project manager.
DISADVANTAGES: Increased administrative work, more difficult to monitor and control, multiple bosses.
Project Methodologies
Methodologies: Predictive, documented, fixed scope, leadership based on “command and control”, linear or waterfall development, resistant to change procedures.
Contract Types
Contracts:
FIXED PRICE: Suitable when objectives are well-defined; otherwise, the price will increase.
REIMBURSABLE COSTS: Used when objectives are not well-defined; the client pays costs plus a fee.
CONTRACT FOR TIME AND MATERIALS: A hybrid approach combining elements of fixed price and reimbursable costs.
Project Charter
Project charter: An internal document that formally recognizes a project. It includes:
- Problem statement
- Objectives
- Process owners
- Project sponsor or champion
- Benefits
Project Scope
Scope: A detailed description of the project’s objectives, requirements, and tasks, which is key for project planning. Components include:
- Objectives
- Requirements
- Deliverables
- Limits
- Restrictions
- Assumptions
- Initial organization
- Limitation of funds
- Cost estimation
- Initial risks
- Change control procedures
Project Phases
Project phases: Initiation, planning, execution, and closing.
Activity Duration Estimation
ESTIMATED DURATION OF ACTIVITIES:
Top-down estimation: Uses historical information from similar activities as a basis for estimating the duration of a current activity.
Parametric estimation: Multiplies the amount of work by an effort factor.
Bottom-up estimation: Breaks down an activity into tasks and estimates the effort for each task when the activity cannot be estimated precisely.
Estimates for three values = (O+M+P)/3
PERT (Program Evaluation and Review Technique): Expected duration = (O+4xM+P)/6. Typical deviation = (P-O)/6
Critical Path Method
Critical path method: Determines the duration of the entire project and helps the project manager focus on the most critical tasks. It analyzes different paths between activities.