Project Management - : Fundamentals of Business Process Outsourcing 102

Project Management -
Introduction
Fundamentals of
Business Process Outsourcing 102
Session Objectives
At the end of this session, the student should be

able to:
• Define a project and project management

• Describe the goals of project management
• Explain the project phases
What is a Project
• Specific output
– A project is a set of tasks to achieve a specific output (goal)
– Goal is defined by a set of “requirements.” Delivering the
project is akin to delivering the requirements of the goal
– Output can have physical attributes (system, report,
product, a school, a course), an intangible (process), or an
activity (party, concert)
• Unique
– Output is unique (a custom product, process)
– A process that produces a recurring output is an “operation”
What is a Project
• Phases
– A project proceeds in stages. It is NOT a one-action activity
– “Progressive elaboration” [PMBOK], has multiple steps to
complete the output
– Each project phase has a deliverable, “a tangible, verifiable
work product” [PMBOK]
– At the end of each phase, there is a formal sign-
off/acceptance of the deliverables and phase performance
review
– Changes in the plan for the succeeding phases may decided
upon after phase-end review
Project Management
• Using tools/techniques at each stage to deliver

the project
– Application of tools/techniques in the performance of
the processes to deliver the requirement
• Process Groups (PMBOK)

1. Initiation
2. Planning
3. Execution
4. Controlling
5. Closing
Process Groups
• Initiation
– Definition of project goal, named project sponsor, clear
approval, definition of project scope, business areas
impacted, start and finish dates, cost projection and benefit
commitment
• Planning
– Project charter, activity plan, project organization, resource
plan, cost plan, communication plan, test plan,
implementation plan, risk management plan
Process Groups
• Execution
– Execution of all plans (e.g., activity, cost, resource,
communication, testing implementation), quality assurance
activities
• Controlling
– Scope change management, scope verification, schedule
control, cost control, risk review, quality assurance review,
project status reporting
• Closing
– Cost-benefit assessment, project performance review
(success or failure review, lessons learned)
Goals of Project Management
• Meet requirements. Deliver the output as defined/required

by the client
• Achieve efficient delivery. Deliver the output with the

least cost in time, resources, and money
• Minimize risk. Deliver the output with least uncertainty in

scope, timeliness, quality, and cost
Goal: Meet Requirements
• Requirements
– Scope. Output must be well-defined, agreed, authorized
– Cost. Expenditure to achieve output must be understood,
agreed, authorized
– Time. Time required to deliver output must be agreed
– Resource. Resources to be dedicated/provided must be
agreed
• Initiation
– Clear approval to start project
– Approvals for scope, cost, time, resource
– Approvals to continue as phases are completed
Goal: Meet Requirements
• Quality
– Structure of work to assure adherence to requirements
– Review process to verify output per requirement
Goal: Achieve Efficient Delivery
• Plans
– Must have complete project plans for activities, cost, and
resources so that the right resources and tools are
available when needed
– Must have testing and quality assurance plans to minimize

rework
– Must have risk management plans to avoid disruptions or

minimize impact if they occur
– Must have communication and implementation to marshall

resources at the user side and to minimize negative noise
Goal: Achieve Efficient Delivery
• Execution management
– Must have the right tools, right resources for the task
– Must have candid/transparent reviews to catch errors and
issues before they have significant adverse impact
• Change control
– Must have governance to approve changes in scope,
various activities, schedule, resources, cost
Goal: Minimize Risk
• Quality management
– Implement processes to review output against
requirements minimize output function gaps
– Develop test plans and create independent/dedicated test
organization minimize risk of function gaps and errors
• Change governance
– Control changes in scope, schedule, resource, and other
elements to minimize risk
– Provide clear transparency on impact of changes on
project and on risk level
Goal: Minimize Risk
• Communication
– Have clear plan to communicate activities and status to
stakeholders
– Provide structured communication of expected changes in
post-delivery processes to minimize transition risk and
noise
Conceptual Project Phases
1. Approval and scope

– Definition of scope of project, target output in general terms,
explicit project objective declared by the stakeholder
– General parameters on time, cost, and resources
– Approval must be formal/written
– Also called “feasibility phase” or “initial phase”
2. Plans/design
– Functional and technical design of what will be done
– One does not build a mansion without architectural, plumbing,
electrical plans
Discussion: Plans/Design
2. Plans/design
– Case 1. Think about building a big house without a plumbing

plan (no definition at the start where the toilets will be, where
the septic tank will be, where the water piping will pass,
whether there will be flowing hot water). Describe impact to
cost and time
– Can a house be constructed without a plumbing plan?
– Are houses constructed without plumbing plans?
2. Plans/design
– Case 2. Think about an electrical plan that was not signed off
by yourself as the homeowner.
– You want an 5 additional 220-volt outlet in the toilet. What is
the impact to cost and time?
– You want 110-volt outlet beside every 220-volt outlet. What
is the impact to cost and time, why?
– You decide that there will be a box-type 5 horsepower air
conditioner package in 3 areas. Please describe what needs to
be done in the electrical and impact to cost and time
3. Construction
– Development of the system or implementing the process
change
– Includes manufacturing, unit testing
– Signing the contracts with the concert venue, musicians,
security agency, lighting contractor
– Spending the real money
– What happens if the requirements change? --big storm
requires change in open-air concert venue, market changes
and central bank requires different reporting?
– Suppose it is so rush (concert is tomorrow) that you cannot
stop to plan? What will you do?
4. Testing
– Independent review of output against requirements
– Integration test: test over-all flow, performance with plan
volume, peak volume test
– Development of user documentation
– Why test? Just correct when the users flag the error?
– Announcement go-live already made. Can we just go-live
without integration test?
5. Implementation/Benefits Review/Go-Live
– Full process to manage the user adjustment/transition
– Review of planned benefits versus actual benefits after the
period of stabilization
– Formal switch to “live” status so that any changes/fixes are
part of maintenance
– Releasing the development team
– Benefits review is often forgotten. What is the effect of not
validating whether the promised savings were met?
– Project promised to save P10 million in cost. What is the
impact of not checking
Summary
• Definition of project and project management

– Project: specific output, temporary for a unique result, stages
– Project management: Application of tools/techniques in the
performance of the processes to deliver the requirement
• Goal of project management
– Delivery that meets requirements, efficient in time, scope,
resources, and with least risk
• Project phases
– Approval, plans/design, construction, testing, implementation
References
A Guide to the Project Management Body of Knowledge

(referred to as “PMBOK”), Project Management Institute,
2000 Edition. All of the principles/key terms/concepts
presented in this set of sessions on project management
come from PMBOK unless explicitly attributed to other
references.

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Project Management -

At the end of this session, the student should be

• Define a project and project management

• Using tools/techniques at each stage to deliver

• Process Groups (PMBOK)

• Meet requirements. Deliver the output as defined/required

• Achieve efficient delivery. Deliver the output with the

• Minimize risk. Deliver the output with least uncertainty in

– Must have testing and quality assurance plans to minimize

– Must have risk management plans to avoid disruptions or

– Must have communication and implementation to marshall

1. Approval and scope

– Case 1. Think about building a big house without a plumbing

• Definition of project and project management

A Guide to the Project Management Body of Knowledge

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