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TEXTBOOK 2 | Page SPRING 2018 This page is intentionally blank. 3 | Page Table of Contents
INTRODUCTION TO PROJECT MANAGEMENT
CHAPTER 1 MANAGEMENT INFORMATION SYSTEMS
CHAPTER 2 PROJECT INTEGRATION MANAGEMENT
CHAPTER 3 PROJECT SCOPE MANAGEMENT
CHAPTER 4 PROJECT TIME MANAGEMENT
CHAPTER 5 PROJECT COST MANAGEMENT
CHAPTER 6 PROJECT QUALITY CONTROL
CHAPTER 7 HUMAN RESOURCE MANAGEMENT
CHAPTER 8 COMMUNICATIONS MANAGEMENT
CHAPTER 9 RISK MANAGEMENT
CHAPTER 10 PROCUREMENT
CHAPTER 11 STAKEHOLDER MANAGEMENT
CHAPTER 12 ETHICS IN PROJECT MANAGEMENT
REFERENCES 4 | Page Introduction to Project Management Introduction to Project Management
5 | Page The word project, as is stated in the Oxford Dictionary, comes from the Latin word projectum
and from the Latin verb proicere which means "to throw something forward". This in turn comes
from pro, that denotes something which precedes the action of the next part of the word in time
(paralleling the Greek πρό) and iacere, "to throw". The word "project" thus originally meant
"something that comes before anything else happens". Leapfrogging through time, it became
something which is undertaken to achieve a certain something in a finite time. When the English
language initially adopted the word, it referred to a plan of something, not to the act of carrying
this plan. Something performed in accordance with a project became known as an "object".
A modern project is defined as team function that involves meeting specific goals and objectives
and has specific start and end dates. A project is a temporary endeavor that requires certain
amount of background research, modus operandi and a design that symbolize how the project
would evolve. Attributes of a Project
• Unique - Every project has certain attribute or objective that differentiates it from another
• Time based - A project has a definitive time frame; it has a beginning and an end time.
Moreover, there are certain time deadlines that need to be taken care of to maintain the
constraints of the project. (Constraints would be discussed later)
• Requires multi-dimensional resources across organization - A project may be a modular
operation within an organization with predefined time limits. So, a project would require
resources in terms of people, technologies, software from different parts of the organization.
• Sponsor and Customer - A project must have a sponsor from the upper echelons of management
to ensure uninterrupted funding and support from the organization.
New Delhi, India hosted 2010 Commonwealth Games (formerly British Empire Games) with an
estimated initial cost of US$323.19 million which later, escalated to US$11.97 billion. This
shows lack of planning and vision on part of the management undertaking such a huge project of
organizing the games. This incident further explains the importance of better project
management and the triple constraints that involve a project namely cost, scope and time
management. In the above case, scope was an almost immovable constraint and time most
definitely was. So, the cost constraint was the one to be compromised. But an almost 300%
increase in overall cost is a prime example of project management mishap. (Guardian, London
UK, September 22, 2010) A Broad Perspective
Even though a project has a planned duration, the execution time of each project varies. It is said
that the construction of the Great Wall of China began in the 7th century BC and the project was
6 | Page completed by the 16th century AD; roughly 2,300 years (one of the longer projects as we may
say). Every project requires planning in advance, milestone identification, schedule and cost
adherence to make it successful. Project Management Institute (PMI) defines project
management as the application of knowledge, skills, tools, and techniques to project activities to
meet the project requirements.
Let us go through these constraints one by one:
• Scope - This constraint deals with the basic work and the highest achievable outcome
that is possible from this work. Scope mainly includes the features and quality that the
project must deliver. The Great wall of China would not have had this constraint as a
major blockage as the major project sponsor, the Qin dynasty and dynasties subsequent,
took a great deal of interest in the project throughout the two thousand years. If there was
anything like a scope constraint in the building of the wall, we must take a moment and
think what must be the highest possible result that they wanted out of this project.
• Cost - Any project involves money to carry it forward and how much, where, and how
to spend it are some relevant questions that any project manager must answer and plan
for. Dealing with the cost constraint is one of the most important activities in any project
since many projects have been shelved in the past and shall be in the future as no matter
how good or useful the projects are, they simply could not fit into the costing model that
the company developed. The major chunk of the cost spent is on the human resource,
training, labor and procurement of raw materials. Though it can be said that the Great
Wall project managers never had to worry about these aspects as well.
• Time - This was one constraint in front of which the project managers of the Great Wall
of China had to bow down to. Something very specific about this constraint is that time
once lost is lost forever. This constraint determines how long the project would take to
end and the outcome of the project whatever it may be if it would still be relevant after
the outcome of the project. The builders of The Wall of China believed so much in their
endeavor that they never took in account the time constraint.
By now we have understood the definition of a project and why is it necessary to manage
projects effectively, the attributes of a project, and the constraints that are involved. Project
management is a complex task because it involves a lot of people who work during the different
phases of the project. The project team, the support staff, higher management, and customers
contribute heavily towards the successful completion of the project.
All the people involved in the project are called Project Stakeholders. As is evident, project
stakeholders have very different needs and aspirations and it is the job of the project manager to
fulfill those needs or at least cater to their interests partially. To be a successful project manager
one needs to be result oriented and build a good rapport with all the stakeholders. Along with the
hard-technical skills, the soft skills that involve good communication and exemplary leadership
qualities are required to be a good manager and handle all stakeholders including you. 7 | Page A story about Project Management
Probably considered by some as one of the most famous hotels in the world, the Waldorf Astoria
has its roots steeped in catering to the social elite of New York city. The history of the Waldorf
Astoria is interesting in that its first incarnation on 5th avenue and 33rd street was a two-tower
structure, with the first 13-story building built by William Waldorf Astor in 1893 and later
connected via a tunnel to a 17-story tower constructed by his cousin John Jacob Astor IV in
1897. As the largest hotel in the world at the time, the Waldorf Astoria would be the first to
transform the meaning of a hotel into a place to be seen by the social elite of the time.
Eventually, this first structure was demolished in 1929 to make place for the Empire State
building and a second incarnation of the Waldorf Astoria was erected 15 blocks away in 1931,
continuing its legacy as the tallest hotel in the world and maintaining its reputation in hospitality
Throughout its history, the Waldorf Astoria looked towards the customer’s needs first and
incorporated the most advanced technology and innovative services that built its reputation as we
know it today.
Referred to as the true visionaries, the drivers behind the project spared no expense to build the
most opulent hotel of its time. Considering it was the height of the Great Depression, to ensure
its success the project leaders behind the Waldorf Astoria were astutely calculating in envisioning
a top-notch product aimed at its target market.
From an execution point of view, the construction project was a great success. Despite the poor
economic climate, the hotel still managed to maintain its prestige and popularity. For project
managers and business visionaries alike, the Waldorf Astoria’s success can be attributed to the
people behind its success along with their deep understanding of the customers and market they
By the late 1940s, the hotel was purchased by Conrad Hilton and the Waldorf Astoria brand
continued to be associated with the rich and powerful. Some notable guests included President
Herbert Hoover, numerous U.S. Army Generals, the notorious mobster Bugsy Siegel, and the
famous musician Cole Porter.
In more recent years, Hilton hotels (2006) decided to leverage the brand and build various
exclusive Waldorf Astoria’s in Beverly Hills, Orlando and Chicago. For over 110 years, the
Waldorf Astoria has been successful in maintaining its reputation of offering the best product in
the hospitality industry aimed at its exclusive market. This alone is a testament that the recipient
and benefactors of a project can have a long-lasting impact on a project’s success. (PM BoxFamous Stories) History of Project Management and Why It Is Important
History of Project Management
8 | Page Although project management theory and practice seem to be established only a few decades
ago, the applications of the basic project management principles can be found dating back to
ancient times. Projects such as building the Great Wall of China and the Egyptian pyramids,
where people and raw materials were assembled and scheduled temporarily to perform specific
tasks and achieve common goals (Young-Hoon Kwak 2005). These are small examples related to
use of project management practices in the past.
As commerce boomed and became more complex in the 19 th Century, businesspeople began to
realize the advantages and benefits of organizing work and resources for the project. Project
management concepts became increasingly important for large-scale projects which usually
involved making crucial decisions and organizing unprecedented quantities of resources. For
example, the Transcontinental Railroad project was the first large government project requiring
project management practices (Young-Hoon Kwak 2005). In the 1950s, organizations began to
systematically implement project management techniques and tools for projects (Young-Hoon
Kwak 2005). However, one key difference between the ancient marvels of project
management and modern day projects is the ancient marvels did not routinely involve schedule
In the early twentieth century, people thought the only way to make work more productive was
through working harder and for longer hours. However, after systematic study and research,
Frederick Taylor, the father of scientific management, found a scientific way to improve
productivity, which was through working efficiently (A Quick History of Project Management).
His associate, Henry Gantt, continued the study further on the order of work operations to see
how these operations can improve productivity. Henry then established the famous Gantt Chart,
an analytical management tool that can list the task sequence and duration, which made him as
the father of project management tools (Project Management: History and Evolution).
In the mid twentieth century, military and government projects became even more complex to
deal with, and previous tools-techniques were not able to satisfy the project requirements. To
deal with this situation, PERT Chart (Program Evaluation and Review Technique) was
established and Critical Path Method, a mathematical technique, was applied so that managers
had more control over the projects in fast-changing organizational structures (Project
Management: History and Evolution). With time, a sizeable amount of business leaders started to
realize the importance of applying project management techniques to improve productivity and
bring more benefits. Soon, these management techniques were adopted by business leaders in all
kinds of industries. In 1969, the Project Management Institute (PMI) was founded to modernize
and standardize project management techniques and tools.
Nowadays, with globalization, projects tend to be bigger, more challenging and difficult to
manage. For instance, an IT project may need to be accomplished by team members located in
different regions, time zones and with people belonging from different culture backgrounds.
Project management continues to evolve to accommodate this trend. Currently, two popular
methods adopted by many project managers are bottom-up planning and top-down planning and
reviewing (A Quick History of Project Management). Bottom-Up Planning is a method
of planning, defining objectives and ways to achieve them through the bottom up approach. First,
9 | Page relatively close targets at lower levels of the organizational hierarchy are set. They are then
gradually integrated into the framework of global goals and global strategy at progressive higher
levels, thus establishing it as a convergent approach. Whereas, Top-Down Planning is a method
of planning, defining objectives and ways to achieve them through the top down approach. Here,
firstly the global (framework) goals are set, and ways are identified on how to achieve them.
They are gradually moved to further lower levels of the organizational hierarchy to be developed
and specified, thus making it a divergent approach. Why Project Management Is Important
Project management is crucial for projects because it provides strategies and guiding system to
keep the project on track and to meet the stakeholders’ requirements. It can minimize the risks of
project failure and ensure the project execution to meet the corporate strategies.
Without proper and strategic management, projects are vulnerable to many potential threats.
According to the CHAOS® report, in 2009, only 32% of software projects succeed, while others
were either challenged or failed (Jorge Dominguez, 2009). Many factors may challenge the
project to be completed successfully, such as lack of user involvement, scope creep, or lack of
top management support. To best handle these factors and reduce the negative impact generated
from them, project management knowledge and skills should be applied for projects. Project
management provides comprehensive management principles including time, cost, scope,
quality, human resource, procurement, communication, risk and integration management. These
nine management areas cover all concerned aspects for a project. Therefore, understanding these
principles and proper implementation of them can make the project process more controllable
and ensure the project execution correctly. Moreover, project management principles can be
learned through experience, not only through your own experience, but the experience from
project management community. Definition of a Project and Project Management
What is a Project?
The PMI (Project Management Institute) defines a project as a temporary endeavor which has
been undertaken by a group of individuals to create a unique product, service, or result. The term
‘temporary’ is used here as the project is required to have an end date. This helps in defining the
required scope and assigning available resources to appropriate tasks in the allocated timelines. A
project consumes resources in the form of manpower, raw materials, and time. Apart from that, it
has funding limits as well. These factors together decide the degree of success which can be
achieved through the project. The end of such an effort is associated with the event or situation
10 | Page where all set objectives which were set during the beginning of project, have been met. A project
can range from being small and simple to being large and complex. Generally, the larger the
project is, the more time and resources are associated with it.
One should not confuse a project with an operation. An operation is just the basic work done to
sustain businesses. One can say that successful completion of an operation can contribute
towards the success of project. In Non-IT sense, this can be as basic as supplying raw material to
the manufactures or maintenance of payroll aspects in an organization. All projects must be
expertly managed for timely delivery by an efficient leader called the Project manager. With his
or her help, the organization should be able to integrate their needs in a coherent manner. This
way the result delivery will be well within the budget restrictions and the project members will
be presented with valuable learning opportunities.
Example of a project: A small project can be installing anti-virus software on all the computer
laboratories of a specific department in a university. This can involve taking backups, scanning
systems, loading new software and providing training to the personnel involved. On the other
hand, a larger project will deal in cross-functional aspects like selection of an ERP tool or vendor
followed by its company wide application. The reason it is a complex task is that it involves
participation from different departments in the same organization like HR, Sales, Production,
Accounting and so on. Project Management
Project management is the application of knowledge, skills, tools and techniques to project
activities to meet project objects in an effective and efficient manner (PMBOK® Guide). It has
always been practiced informally for a long time, but it began to emerge as a unique and critical
profession in the mid-20th century. Organizations worldwide use this as a strategic competency
to correlate project results to business goals and objectives. A better selection of project
management techniques help them compete in their markets in a better way. Project and Program Managers:
Project Manager is an efficient leader who expertly manages all project activities for timely
delivery. They work with the project sponsors, project teams, stakeholders and all the other
people involved to ensure that the project meets its objectives/goals. Project managers must
coordinate all of the other knowledge areas throughout a project’s life cycle. With the help of the
project manager, the organization should be able to integrate their needs in a coherent manner.
This way the result delivery will be well within the budget restrictions and the project members
will be presented with valuable learning opportunities. On the other hand, Program managers are
the ones who oversee these activities. They act as the bosses for project managers. 11 | Page The associated activities can be anything ranging from organizing the tasks and components for
development of a new product line, launch of a new website or an e-campaign. Project
management processes can be categorized into following five groups:
● Initiating/Definition: It includes recognizing and starting a new phase in a project. It
involves defining the scope of the project/phase and user expectations. Apart from a list
of project deliverables and the results of activities performed, it involves working with
the business sponsor and other stakeholders. Stakeholders are the people who have
invested in the project and are affected by the outcome of project. The reason for a team
entering project initiation phase is if marks the beginning of a new project/business need
or when you have to reevaluate the business requirements. REASONS FOR ENTERING PROJECT INITIATION: KEY OUTPUTS:
• Assigning the project manager.
12 | Page • Identifying key stakeholders.
• Completing a business case.
• Completing a project charter...
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