Lec - 2 - Project Mangement Concepts

PROJECT MANAGEMENT
Lecture 2
Project Management Basics & Concepts
Dr. Talal Alharbi, PhD
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Objectives
• Project processes.
• Project management concept.
• Project life cycle.
• Project governance.
• Project management processes.
2
1. PROJECT PROCESSES
Processes used in projects are generally
categorized into three major types:
1. Project management processes, which are
specific to project management and determine
how the activities selected for the project are
managed;
Planning Processes Controlling Processes

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2. Product (Delivery) processes, which are not
unique to project management, which result in
the specification and provision of a particular
product, service or result, and which vary
depending on the particular project
deliverable;
Digging Processes Welding Processes 4

3. Support processes, which are not unique to
project management and which provide
relevant and valuable support to product and
project management processes in such
disciplines as logistics, finance, accounting
and safety.
Accounting Processes
Transporting Processes 5
Project Processes
Project Product Product Supporting

Management Process(1) Process(2) Process(1)
Processes
MGMT 402 Course mainly concerns about the

project management processes. However, it
should be noted that
product, support and project management
processes might overlap and interact throughout
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a project.
2. PROJECT MANAGEMENT CONCEPT
ISO 21500
:2012
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2. PROJECT MANAGEMENT CONCEPT
• The organizational strategy identifies
opportunities.
• The opportunities are evaluated and selected
opportunities are further developed in a
business case which can result in one or more
projects that provide deliverables.
• Those deliverables can be used to realize
benefits.
• The benefits can be an input to realizing and
further developing the organizational strategy.
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2.1 Organizational Strategy
Organizations generally establish strategy based
on their mission, vision, policies and factors
outside the organizational boundary. Projects are
often the means to accomplish strategic goals. An
example of a value creation framework is shown
in the Figure.
Example of a value creation framework

9
3. PROJECT LIFE CYCLE
• Projects are usually organized into phases that
are determined by governance and control
needs. These phases should follow a logical
sequence, with a start and an end, and should
use resources to provide deliverables.
• Project phases are collectively known as the
project life cycle. The project life cycle spans
the period from the start of the project to its
end.
• In order to manage the project efficiently during
the entire project life cycle, a set of activities
should be performed in each phase. 10
3. PROJECT LIFE CYCLE
• By the end of the last phase, the project
should have provided all deliverables.
• To manage a project throughout its life cycle,
project management processes should be
used for the project as a whole or for
individual phases for each team or sub-
project.
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3.1 Generic Project Life Cycle
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Execution and Utilization &
Initiation Planning Close-out
Control
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4. PROJECT GOVERNANCE
 Project governance is the process of project
decision making and the framework, models or
structures that are established to enable this
 It is recognised as a critical success factor for
the delivery of projects.
 Effective project governance positions a
project for success and allows effective and
efficient decision making. That is, the right
people making optimum decisions that meet
the needs of the project and its stakeholders
and making those decisions in a timely manner.
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4. PROJECT GOVERNANCE
 Project governance may include subjects such as the
following:
1.defining the management structure;
2.the policies, processes and methodologies to be used;
3.limits of authority for decision-making;
4.stakeholder responsibilities and accountabilities;
5.interactions such as reporting and the escalation of
issues or risks.
 The responsibility for maintaining the appropriate
governance of a project is usually assigned either to the
project sponsor or to a project steering committee.
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5. PROJECT MANAGEMENT PROCESSES
The project management processes may be
viewed from two different perspectives:
 As process groups for the management of the
project:
Initiating; Planning; Implementing; Controlling
and Closing
 As subject groups for collecting the processes
by subject.
Scope; Time; Cost; Resources; Quality, Risk;
Procurements; Communications;… etc
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5.1 Process Group
Process Groups Interactions

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5.1 Process Group
1. Initiating process group
The initiating processes are used to start a
project phase or project, to define the project
phase or project objectives and to authorize
the project manager to proceed with the
project work. Issues like the following should
be considered:
• Linking the project to the Product
• Balancing competing demand with the
triple constraint
• Contract, negotiating, proposal 19
5.1 Process Group
2. Planning process group
The planning processes are used to develop planning
detail. This detail should be sufficient to establish
baselines against which project implementation can
be managed and project performance can be
measured and controlled. Issues like the following
should be considered:
• Integrated planning
• The work breakdown structure
• Scheduling time, money and resources
• Time estimating and compressing the schedule
• Cost estimating and budgeting
• Project risks 20
5.1 Process Group
3. Implementing process group
The implementing processes are used to perform the
project management activities and to support the
provision of the project’s deliverables in accordance
with the project plans. This may include:
• Building the project team and role of project
management
• Leading people who will work on.
• Organizational design for delivering projects
• Organizing the support team commitment
coordination
• Establishing the theory of motivation and their
implication management by objectives
• Establishing practical tips for management 21
communication
5.1 Process Group
4. Controlling process group
The controlling processes are used to monitor,
measure and control project performance against the
project plan. Consequently, preventive and corrective
actions may be taken and change requests made,
when necessary, in order to achieve project
objectives. This may include:
• Develop a baseline and performance
measurement
• Develop a performance measurement system.
• Managing time, cost, quality, change, risks,
issues, suppliers, customers and communication
• Project reviews 22
5.1 Process Group
5. Closing process group
The closing processes are used to formally establish
that the project phase or project is finished, and to
provide lessons learned to be considered and
implemented as necessary. This may include:
• Closing the contract
• Getting customer acceptance
• Finishing and filling all documentation
• Identifying lesson learned
• Intellectual propriety and ownership rights
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5.1 Process Group
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5.1 Process Group
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5.1 Process Group
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5.2 Process Group versus Subject Group
Processes
Implemen
Subjects Initiation Planning Control Close-Out
tation
Integration     
Stakeholder  
Scope  
Resource    
Time  
Cost  
Risk   
Quality   
Procurements   
Communications   
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Summary
• Project processes.
• Project management concept.
• Project life cycle.
• Project governance.
• Project management processes.
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PROJECT MANAGEMENT

Dr. Talal Alharbi, PhD

Planning Processes Controlling Processes

Digging Processes Welding Processes 4

Project Product Product Supporting

MGMT 402 Course mainly concerns about the

Example of a value creation framework

Process Groups Interactions

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