project management - concepts and approach
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Project management - concepts and Approach for Managers simplifiedTRANSCRIPT
Project management
Learning Objective:
Understand the growing need for better project management.
Explain what a project is, list various attributes of projects, describe the triple Constraints
Describe the project management profession, including its history.
Understand the Project Groups , Knowledge areas.
Why companies use Project Management
Better control of financial, physical, and human resources.
Improved customer relations.
Shorter development times.
Lower costs.
Higher quality and increased reliability.
Higher profit margins.
Improved productivity.
Better internal coordination.
Higher worker morale (less stress).
Why (not) Project Management
Companies have also experienced some negatives:
Greater organizational complexity
Increased likelihood of organizational policy violations
Higher costs
More management difficulties
Low personnel utilization
Forces of Project Management
• Forces driving Project Management are:
– Exponential expansion of human knowledge
– Growing demand for a broad range of complex, sophisticated, customized goods and services
– Mass customization of products and services
– Evolution of worldwide competitive markets and services.
– Increasing reliance on systems Engineering
Project Management Framework
Introduction:
What is a Project?
• A project is “a temporary endeavor undertaken to create a unique product, service, or result.”*
• Operations are work done to sustain the business.
• A project ends when its objectives have been reached, or the project has been terminated.
• Projects can be large or small and take a short or long time to complete.
Characteristics of a Project.
• Have a supported purpose/importance
• Performance specifications (form, fit, function)
• Known (bounded) solution
• Have a life cycle with finite due date
• Interdependencies
• Uniqueness
• Resource requirements and tradeoffs
• Stakeholder Conflict
Quasi-Projects and Fuzzy Goals
• Tasks without Specific Targets
– No Who, What, When, Where, How Much
• Implied Performance, Cost, Time Constraints
• “Projects” to Determine Project Scope
• Warning: If these Become Projects, Expect Delays, Cost Overruns, Dissatisfied Customers
Objectives of a Project
• Project Objectives :
– Performance
– Time
– Cost
Meet the Expectations of clients
What is Project Management?
Project management is “the application of knowledge, skills, tools and techniques to project activities to meet project requirements.”*
Project management is the discipline of planning, organizing, securing and managing resources to bring about the successful completion of specific engineering project goals and objectives.
History
Project management has been practiced since early civilization. Until 1900 civil engineering projects were generally managed by creative architects and engineers themselves, among those for example Vitruvius (1st century BC), Christopher Wren (1632–1723) , Thomas Telford (1757-1834) and Isambard Kingdom Brunel (1806–1859).[6] It was in the 1950s that organizations started to systematically apply project management tools and techniques to complex engineering projects.
Henry Gantt (1861-1919), the father of planning and control techniques.
As a discipline, Project Management developed from several fields of application including civil construction, engineering, and heavy defense activity.
Two forefathers of project management are Henry Gantt, called the father of planning and control techniques, who is famous for his use of the Gantt chart as a project management tool; and Henri Fayol for his creation of the 5 management functions which form the foundation of the body of knowledge associated with project and program management.
Both Gantt and Fayol were students of Frederick Winslow Taylor's theories of scientific management. His work is the forerunner to modern project management tools including work breakdown structure (WBS) and resource allocation.
The 1950s marked the beginning of the modern Project Management era where core engineering fields come together working as one. Project management became recognized as a distinct discipline arising from the management discipline with engineering model.
In the United States, prior to the 1950s, projects were managed on an ad hoc basis using mostly Gantt Charts, and informal techniques and tools. At that time, two mathematical project-scheduling models were developed. The "Critical Path Method" (CPM) was developed as a joint venture between DuPont Corporation and Remington Rand Corporation for managing plant maintenance projects. And the "Program Evaluation and Review Technique" or PERT, was developed by Booz-Allen & Hamilton as part of the United States Navy's (in conjunction with the Lockheed Corporation) Polaris missile submarine program; These mathematical techniques quickly spread into many private enterprises.
In 1956, the American Association of Cost Engineers (now AACE International; the Association for the Advancement of Cost Engineering) was formed by early practitioners of project management and the associated specialties of planning and scheduling, cost estimating, and cost/schedule control (project control).
AACE continued its pioneering work and in 2006 released the first integrated process for portfolio, program and project management (Total Cost Management Framework).
The International Project Management Association (IPMA) was founded in Europe in 1967..
In 1969, the Project Management Institute (PMI) was formed in the USA.PMI publishes A Guide to the Project Management Body of Knowledge (PMBOK Guide), which describes project management practices that are common to "most projects, most of the time."
The AAPM American Academy of Project Management International Board of Standards 1996 was the first to institute post-graduate certifications.
International standards
There have been several attempts to develop Project Management standards, such as:
Capability Maturity Model from the Software Engineering Institute.
GAPPS, Global Alliance for Project Performance Standards- an open source standard describing COMPETENCIES for project and program managers.
A Guide to the Project Management Body of Knowledge
HERMES method, Swiss general project management method, selected for use in Luxembourg and international organizations.
The ISO standards ISO 9000, a family of standards for quality management systems, and the ISO 10006:2003, for Quality management systems and guidelines for quality management in projects.
PRINCE2, PRojects IN Controlled Environments.
Team Software Process (TSP) from the Software Engineering Institute.
Total Cost Management Framework, AACE International's Methodology for Integrated Portfolio, Program and Project Management)
V-Model, an original systems development method.
The Logical framework approach, which is popular in international development organizations.
IAPPM, The International Association of Project & Program Management, guide to Project Auditing and Rescuing Troubled Projects.
Relationship to Other Management Disciplines
* Functional departments and supporting disciplines
* Technical elements
* Management specializations
* Industry groups
Much of the knowledge needed to manage projects is unique to project management (e.g., critical path analysis and work breakdown structures).
General management encompasses planning, organizing, staffing, executing and controlling the operations of an ongoing enterprise.
General management also includes supporting disciplines such as law, strategic planning, logistics, and human resources management. The Project Management overlaps or modifies general management in many areas – organizational behavior, financial forecasting, and planning techniques, to name a few.
Application areas are categories of projects that have common elements significant in such projects, but are not needed or present in all projects. Application areas are usually defined in terms of:
Functional departments and supporting disciplines, such as legal, production and inventory management, marketing, logistics and personnel.
Technical elements, such as water and sanitation engineering, or construction engineering, Manufacturing.
Management specializations, such as government contracting, community development, or new product development.
Industry groups, such as automotive, Production, chemicals, agriculture, or financial services
Related Endeavors
• Programs
• Project portfolio management
• Subprojects
• Project managers
Certain types of endeavors are closely related to projects. There is often a hierarchy of strategic plans, programs, projects, and subprojects, in which a program consisting of several associated pro4ejcts will contribute to the achievement of a strategic plan. These related undertakings are described as:
Programs – A program is a group of projects managed in a coordinated way to obtain benefits not available from managing them individually. Many programs also includes elements of ongoing operations.
Subprojects – Projects are frequently divided into more manageable components or subprojects. Subprojects are often contracted to an external enterprise or to another functional unit in the performing organization.
Project Portfolio Management – Project portfolio management refers to the selection and support of projects or program investments. These investments in projects and programs are guided by the organization’s strategic plan and available resources.
Project managers
A project manager is a professional in the field of project management. Project managers can have the responsibility of the planning, execution, and closing of any project, typically relating to construction industry, engineering, architecture, computing, or telecommunications. Many other fields in the production engineering and design engineering and heavy industrial also have project managers.
A project manager is the person accountable for accomplishing the stated project objectives. Key project management responsibilities include creating clear and attainable project objectives, building the project requirements, and managing the triple constraint for projects, which is cost, time, and scope.
A project manager is often a client representative and has to determine and implement the exact needs of the client, based on knowledge of the firm they are representing. The ability to adapt to the various internal procedures of the contracting party, and to form close links with the nominated representatives, is essential in ensuring that the key issues of cost, time, quality and above all, client satisfaction, can be realized.
Project Management Context:
• Project Phases and the Project Life Cycle
• Project Stakeholders
• Organizational Influences
• Key General Management Skills
• Social-Economic-Environmental Influences
Projects and project management operate in an environment broader than that of the project itself. The management team must understand this broader context – managing the day-to-day activities of the project is necessary for success but not sufficient. The project management context consists of:
Project phases and the project life cycle
Project Phases: A project consists of sequential phases. These phases are extremely useful in planning a project since they provide a framework for budgeting, manpower and resource allocation, and for scheduling project milestones and project reviews. The method of division of a project into phases
may differ somewhat from industry to industry, and from product to product.
The generic phases are
o Concept development
o Definitions, Details, Start of design
o Production/Implementation/Realization
o Testing/Operational
o Closing
Archibald’s Project Life Span
Concept Development
• Development of Goals, specifications
• Methods to reach goals
• Cost and budget estimation (%20)
• Formation of organization
• Determination of report periods and dates
Definitions, Details, and Design
• Determination of personnel and resources
• Detailed study on methods to reach goals
• Reviewing cost and budget estimation (%10)
• Reviewing report details, contents and dates
Production/Implementation/Realization
• Prototyping
• Design improvement
• Reviewing cost and budget estimation (%5)
• Documentation and training planning
Operation/Testing/Start
• Combining parts and system tests
• Deliver the product
• Training
• Review project and write a feedback report
Closing
• Documentation
• Review Organization problems
Project Life Cycle: "The sequence of phases through which the project will evolve. It is absolutely fundamental to the management of projects . . . It will significantly affect how the project is structured. The basic life cycle follows a common generic sequence: Concept, Design & Development, Production, Hand-over, and Post-Project Evaluation. The exact wording varies between industries and organizations
Project Life Cycle in Contemporary Organizations
Unconventional Project Life Cycle.
• Unlike the more conventional life cycle, continued inputs of effort at the end of the project produce significant gains in returns
Project Life Cycle: Effort vs. Time
Allens Generic Project Life Span
• Project Stakeholders: Are the people involved in project or affected by the project activities. Every project has a set of stakeholders associated with it. Project stakeholders are individuals or organizations who are somehow connected to the project and can influence the project's outcome. A stakeholder can do the following:
• Be actively involved in the work of the project.
• Exert influence over the project and its outcome (also known as managing stakeholders).
• Have a vested interest in the outcome of a project.
Various Stake Holders are
Project Sponsor
• Project Manager
• Project Management Team
• Suppliers
• Customers
• Performing Organization
• Vendors
• Opponents to the project
Managing stakeholders can influence the planning processes of a project and help set the expectations and assumptions of the project. Sometimes the expectations of different stakeholders conflict with one other. It is the job of the project manager to balance and reconcile these conflicts well before project execution begins. Managing stakeholders might also impose new requirements that require adjustments to the finish date, budget, or scope.
• Organizational influences
Projects are typically part of an organization that is larger than the project.
Even when the project is external (joint ventures, partnering), the project will still be influenced by the organization or organizations that initiated it.
The maturity of the organization with respect to its project management system, culture, style, organizational structure and project management office can also influence the project. The following sections describe key aspects of these larger organizational structures that are likely to influence the project.
It is vital that the organizational structure is clear and known to all for the project to run smoothly.
Project-based organizations are those whose operations consist primarily of projects. These organizations fall into two categories:
• Organizations that derive their revenue primarily from performing projects for others under contract – architectural firms, engineering firms, consultants, construction contractors, and government contractors.
• Organizations that have adopted management by projects. These organizations tend to have management systems in place to facilitate project management. For example, their financial systems are often specifically designed for accounting, tracking, and reporting on multiple, simultaneous projects.
Non-project-based organizations often may lack management systems designed to support project needs efficiently and effectively. The absence of project-oriented systems usually makes project management more difficult. In some cases, non-project-based organizations will have departments or other subunits that operate as project-based organizations with systems to support them. The project management team should be aware of how its organization’s structure and systems affect the project.
Organizational Cultures and Styles
Most organizations have developed unique and describable cultures. These cultures are reflected in numerous factors, including, but not limited to:
• Shared values, norms, beliefs, and expectations
• Policies and procedures
• View of authority relationships
• Work ethic and work hours.
Organizational cultures often have a direct influence on the project. For example:
• A team proposing an unusual or high-risk approach is more likely to secure approval in an aggressive or entrepreneurial organization
• A project manager with a highly participative style is apt to encounter problems in a rigidly hierarchical organization, while a project manager with an authoritarian style will be equally challenged in a participative organization.
Organizational Structure
The structure of the performing organization often constrains the availability of resources in a spectrum from functional to projectized, with a variety of matrix structures in between.
The classic functional organization is a hierarchy where each employee has one clear superior. Staff members are grouped by specialty, such as production, marketing, engineering, and accounting at the top level.
Engineering may be further subdivided into functional organizations that support the business of the larger organization, such as mechanical and electrical.
Functional organizations still have projects, but the scope of the project is usually limited to the boundaries of the function. The engineering department in a functional organization will do its
project work independent of the manufacturing or marketing departments. When new product development is undertaken in a purely functional organization, the design phase, often called a design project, includes only engineering department staff. Then, when questions about manufacturing arise, they are passed up the organizational hierarchy to the department head, who consults with the head of the manufacturing department. The engineering department head then passes the answer back down the hierarchy to the engineering functional manager. These organizations are good for having a clear career path for project team members when the project ends.
Projectized organizations have team members that are often collocated. Most of the organization’s resources are involved in project work, and project managers have a great deal of independence and authority. Projectized organizations often have organizational units called departments, but these groups either report directly to the project manager or provide support services to the various projects.
Matrix organizations are a blend of functional and projectized characteristics. Weak matrices maintain many of the characteristics of a functional organization and the project manager role is more that of a coordinator or expediter than that of a manager. In similar fashion, strong matrices have many of the characteristics of the projectized organization, and can have full-time project managers with considerable authority and full-time project administrative staff. While the balanced matrix organization recognizes the need for a project manager, it does not provide the project manager with the full authority over the project and project funding.
Such a team may have many of the characteristics of a project team in a projectized organization. The team may include full-time staff from different functional departments, may develop its own set of operating procedures and may operate outside the standard, formalized reporting structure.
• Key General Management Skills
• Leading
• Communicating
• Negotiating
• Problem Solving
• Influencing the Organization
• Social-Economic Environmental Influences
• Standards and Regulations
• Internationalization
• Cultural influences
Project Management Processes
• Project Processes
• Process Groups
• Process Interaction
• Project Knowledge Areas
• Mapping of Project Management Processes
Project management is an integrative endeavor – an action, or failure to take action, in one area will usually affect other areas. The interactions may be straightforward and well understood, or they may be subtle and uncertain. For example, a scope change will almost always affect project cost, but it may or may not affect team morale or product quality.
These interactions often require tradeoffs among project objectives-performance in one are may be enhanced only by sacrificing performance in another.
Project Processes
Projects are composed of processes. A process is “a series of actions bringing about a result”. Project processes are performed by people and generally fall into one of two major categories:
Project Management processes : Describe, organize, and complete the work of the project.
Product-oriented processes : Specify and create the project’s product. Product oriented processes are typically defined by the project life cycle
Project management processes can be organized into five groups of one or more processes each:
PROCESS GROUPS
1. Initiating processes—authorizing the project or phase.
2. Planning processes—defining and refining objectives and selecting the best of the alternative courses of action to attain the objectives that the project was undertaken to address.
3. Executing processes—coordinating people and other resources to carry out the plan.
4. Controlling processes—ensuring that project objectives are met by monitoring and measuring progress regularly to identify variances from plan so that corrective action can be taken when necessary.
5. Closing processes—formalizing acceptance of the project or phase and bringing it to an orderly end.
The interaction among five process groups is depicted by the following figure that is derived from a simpler Plan-Do-Check-Act (PDCA) cycle diagram.
Process Interactions
Within each process group, the individual processes are linked by their inputs and outputs. Processes overlap and interact throughout a project or phase. Processes are described in terms of:
Inputs (documents, plans, designs, etc.)
Tools and Techniques (mechanisms applied to inputs)
Outputs (documents, products, etc.)
Project Management Knowledge Areas
Project Integration Management
Project Scope Management
Project Time Management
Project Cost Management
Project Quality Management
Project Human Resource Management
Project Communications Management
Project Risk Management
Project Procurement Management
Each knowledge area contains some or all of the project management processes. For example, Project Procurement Management includes:
Procurement Planning
Solicitation Planning
Solicitation
Source Selection
Contract Administration
Contract Closeout
There are nine Project Management Knowledge Areas. These areas group 44 Project Management Processes. The following list briefly describes each PM Knowledge Area:
Project Integration Management: Deals with processes that integrate different aspects of project management. This knowledge area deals with developing Project Charter, Preliminary Project Scope, and Project Management Plan. It also deals with monitoring and controlling project work, integrated change control, and closing a project.
Project Scope Management: Encapsulates processes that are responsible for controlling project scope. It consists of Scope Planning, Definition, Verification, and Control.
Project Time Management: Includes processes concerning the time constraints of the project. It deals with Activity definition, sequencing, resource estimating, and duration estimating. It also deals with schedule development and control.
Project Cost Management: Includes processes concerning the cost constrains of the project. Some of the processes that are part of this knowledge area are Cost Estimating, Budgeting, and Control.
Project Quality Management: Describes the processes that assure that the project meets its quality obligations. It consists of Quality Planning, Quality Assurance, and Quality Control.
Project Human Resources Management: Includes the processes that deal with obtaining and managing the project team. Some of the processes of this knowledge area are Human Resource Planning, Acquire Project Team, Develop Project Team, and Manage Project Team.
Project Communication Management: Describes the processes concerning communication mechanisms of a project, namely, Communication Planning, Performance Reporting, and Information Distribution.
Project Risk Management: Describes the processes concerned with project-related risk management. It consists of Risk Identification, Quantitative and Qualitative Risk Analysis, Risk Response Planning, and Risk Monitoring.
Project Procurement Management: Includes all processes that deal with obtaining products and services needed to complete a project. It consists of Plan Contracting, Select Seller Responses, Select Seller, and Contract Closer.
Project Management Process Mapping
Project Management is composed of 44 processes that are mapped to one of nine Project Management Knowledge Areas listed in the previous section. The following table maps 44 processes to process groups and knowledge areas.
Knowledge Area Processes
Project Management Process Groups
Initiating Process Group
Planning Process Group
Executing Process Group
Monitoring and Controlling Process Group
Closing Process Group
Project Management Integration
Develop Project Charter
Develop Preliminary Project Scope Statement
Develop Project Management Plan
Direct and Manage Project Execution
Monitor and Control Project Work
Integrated Change Control
Close Project
Project Scope Management
Scope Planning
Scope Definition
Scope WBS
Scope Verification
Scope Control
Knowledge Area Processes
Project Management Process Groups
Activity Definition
Activity Sequencing
Activity Resource Estimating
Activity Duration Estimation
Schedule Development
Schedule Control
Initiating Process Group
Planning Process Group
Executing Process Group
Monitoring and Controlling Process Group
Closing Process Group
Project Quality Management
Quality Planning Perform Quality Assurance
Perform Quality Control
Project Human Resources Management
Human Resources Planning
Acquire Project Team,Develop Project Team
Manage Project Team
Project Communication Management
Communications Planning
Information Distribution
Performance Reporting
Manage Stakeholders
Project Procurement Planning
Plan Purchase and Acquisitions
Plan Contracting
Request Seller Responses
Select Sellers
Contract Administration
Contract Closure
Project Risk Management
Risk Management Planning
Risk Identification
Qualitative Risk Analysis
Quantitative Risk Analysis
Risk Monitoring and Control
Risk Response Planning
Figure : Mapping of 44 processes to process groups and knowledge areas
Process Groups Explained:
Traditionally, project management includes a number of elements: four to five process groups, and a control system. Regardless of the methodology or terminology used, the same basic project management processes will be used.
Major process groups generally include as said before:
Initiation
Planning or development
Production or execution
Monitoring and controlling
Closing
In project environments with a significant exploratory element (e.g., Research and development), these stages may be supplemented with decision points (go/no go decisions) at which the project's continuation is debated and decided. An example is the Stage-Gate model.
Initiation
Initiating Process Group Processes
The initiation processes determine the nature and scope of the project. If this stage is not performed well, it is unlikely that the project will be successful in meeting the business’ needs. The key project controls needed here are an understanding of the business environment and making sure that all necessary controls are incorporated into the project. Any deficiencies should be reported and a recommendation should be made to fix them.
The initiation stage should include a plan that encompasses the following areas:
Analyzing the business needs/requirements in measurable goals
Reviewing of the current operations
Financial analysis of the costs and benefits including a budget
Stakeholder analysis, including users, and support personnel for the project
Project charter including costs, tasks, deliverables, and schedule
Planning and design
Planning Process Group Activities
After the initiation stage, the project is planned to an appropriate level of detail. The main purpose is to plan time, cost and resources adequately to estimate the work needed and to effectively manage risk during project execution. As with the Initiation process group, a failure to adequately plan greatly reduces the project's chances of successfully accomplishing its goals.
Project planning generally consists of
Determining how to plan (e.g. by level of detail or rolling wave);
Developing the scope statement;
Selecting the planning team;
Identifying deliverables and creating the work breakdown structure;
Identifying the activities needed to complete those deliverables and networking the activities in their logical sequence;
Estimating the resource requirements for the activities;
Estimating time and cost for activities;
Developing the schedule;
Developing the budget;
Risk planning;
Gaining formal approval to begin work.
Additional processes, such as planning for communications and for scope management, identifying roles and responsibilities, determining what to purchase for the project and holding a kick-off meeting are also generally advisable.
For new product development projects, conceptual design of the operation of the final product may be performed concurrent with the project planning activities, and may help to inform the planning team when identifying deliverables and planning activities.
Executing
Executing Process Group Processes
Executing consists of the processes used to complete the work defined in the project management plan to accomplish the project's requirements. Execution process involves coordinating people and resources, as well as integrating and performing the activities of the project in accordance with the project management plan. The deliverables are produced as outputs from the processes performed as defined in the project management plan.
Monitoring and controlling
Monitoring and controlling consists of those processes performed to observe project execution so that potential problems can be identified in a timely manner and corrective action can be taken, when necessary, to control the execution of the project. The key benefit is that project performance is observed and measured regularly to identify variances from the project management plan.
Monitoring and Controlling Process Group Processes
Monitoring and Controlling includes:
Measuring the ongoing project activities ('where we are');
Monitoring the project variables (cost, effort, scope, etc.) against the project management plan and the project performance baseline (where we should be);
Identify corrective actions to address issues and risks properly (How can we get on track again);
Influencing the factors that could circumvent integrated change control so only approved changes are implemented
In multi-phase projects, the monitoring and controlling process also provides feedback between project phases, in order to implement corrective or preventive actions to bring the project into compliance with the project management plan.
Project Maintenance is an ongoing process, and it includes:
Continuing support of end users
Correction of errors
Updates of the software over time
Monitoring and Controlling cycle
In this stage, auditors should pay attention to how effectively and quickly user problems are resolved.
Over the course of any construction project, the work scope may change. Change is a normal and expected part of the construction process. Changes can be the result of necessary design modifications, differing site conditions, material availability, contractor-requested changes, value engineering and impacts from third parties, to name a few. Beyond executing the change in the field, the change normally needs to be documented to show what was actually constructed. This is referred to as Change Management. Hence, the owner usually requires a final record to show all changes or, more specifically, any change that modifies the tangible portions of the finished work. The record is made on the contract documents – usually, but not necessarily limited to, the design drawings. The end product of this effort is what the industry terms as-built drawings, or more simply, “as built.” The requirement for providing them is a norm in construction contracts.
When changes are introduced to the project, the viability of the project has to be re-assessed. It is important not to lose sight of the initial goals and targets of the projects. When the changes accumulate, the forecasted result may not justify the original proposed investment in the project.
Closing
Closing Process Group Processes
Closing includes the formal acceptance of the project and the ending thereof. Administrative activities include the archiving of the files and documenting lessons learned.
This phase consists of:
Project close: Finalize all activities across all of the process groups to formally close the project or a project phase
Contract closure: Complete and settle each contract (including the resolution of any open items) and close each contract applicable to the project or project phase.
Project control systems
Project control is that element of a project that keeps it on-track, on-time and within budget. Project control begins early in the project with planning and ends late in the project with post-implementation review, having a thorough involvement of each step in the process. Each project should be assessed for the appropriate level of control needed: too much control is too time consuming, too little control is very risky. If project control is not implemented correctly, the cost to the business should be clarified in terms of errors, fixes, and additional audit fees.
Control systems are needed for cost, risk, quality, communication, time, change, procurement, and human resources. In addition, auditors should consider how important the projects are to the financial statements, how reliant the stakeholders are on controls, and how many controls exist. Auditors should review the development process and procedures for how they are implemented. The process of development and the quality of the final product may also be assessed if needed or requested. A business may want the auditing firm to be involved throughout the process to catch problems earlier on so that they can be fixed more easily. An auditor can serve as a controls consultant as part of the development team or as an independent auditor as part of an audit.
Businesses sometimes use formal systems development processes. These help assure that systems are developed successfully. A formal process is more effective in creating strong controls, and auditors should review this process to confirm that it is well designed and is followed in practice. A good formal systems development plan outlines:
A strategy to align development with the organization’s broader objectives
Standards for new systems
Project management policies for timing and budgeting
Procedures describing the process
Evaluation of quality of change
Project Integration Management :
About keeping everybody working towards the same goal and dealing with changes. This area teaches about following processes
1. Developing Project Charter.
2. Developing Preliminary Scope Statement.
3. Develop Project Management Plan.
4. How to Direct and Manage Project Execution.
5. How to Monitor and Control my project related work.
6. How to deal changes with Integrated Change Control.
7. Finally, about Closing a Project
Project Integration Management includes the processes required to ensure that the various elements of the project are properly coordinated. It involves making tradeoffs among competing objectives and alternative to meet or exceed stakeholder needs and expectations. While all project management processes are integrative to some extent, the processes described here are primarily integrative.
Project Plan Development – Integrated and coordinating all project plans to create a consistent, coherent document.
Project Plan Execution – Carrying out the project plan by performing the activities included therein.
Integrated Change Control – Coordinating changes across the entire project.
Project Plan Development:
.
Project plan development uses the outputs of the other planning processes, including strategic planning, to create a consistent, coherent document that can be used to guide both project execution and project control. This process is almost always iterated several times. For example, the initial draft may include generic resource requirements and an undated sequence of activities while the subsequent versions of the plan will include specific resources and explicit dates.
The project scope of the work is an iterative process that is generally done by the project team with the use of a Work Breakdown Structure (WBS), allowing the team to capture and then decompose all of the work of the project.
All of the defined work must be planned, estimated and scheduled, and authorized with the use of detailed integrated management control plans sometimes called Control Account Plans, or CAPs, in the EVM process.
The sum of all the integrated management control plans will constitute the total project scope.
Project Plan Execution
Project plan execution is the primary process for carrying out the project plan – the vast majority of the project’s budget will be expended in performing this process. In this process, the project manager and the project management team must coordinate and direct the various technical and organizational interfaces that exist in the project. It is the project process that is most directly affected by the project application area in that the product of the project is actually created here. Performance against the project baseline must be continuously monitored so that corrective actions can be taken based on actual performance against the project plan. Periodic forecasts of the final cost and schedule results will be made to support this analysis.
INTEGRATED CHANGE CONTROL
Integrated change control is concerned with:
Influencing the factors that create changes to ensure that changes are agreed upon
Determining that a change has occurred
Managing the actual changes when and as they occur
The original defined project scope and the integrated performance baseline must be maintained by continuously managing changes to the baseline, either by rejecting new changes or by approving changes and incorporating them into a revised project baseline. Integrated change control requires:
Maintaining the integrity of the performance measurement baselines
Ensuring that changes to the product scope are reflected in the definition of the project scope
Coordinating changes across knowledge areas, a proposed schedule change will often affect cost, risk, quality, and staffing
PROJECT SCOPE MANAGEMENT
Project scope management includes the processes required to ensure that the project includes all the work required and only the work required, to complete the project successfully. It is primarily concerned with defining and controlling what is or is not included in the project.
Scope Initiation – authorizing the project or phase
Scope Planning – developing a written scope statement as the basis for future project decisions
Scope Definition – Subdividing the major project deliverables into smaller, more manageable components
Scope Verification – formalizing acceptance of the project scope
Scope Change Control – controlling changes to project scope
Scope Planning
Scope planning is the process of progressively elaborating and documenting the project work that produces the product of the project. Project scope planning starts with the initial inputs of product description, the project charter, and the initial definition of constraints and assumptions. Note that the product description incorporates product requirements that reflect agreed-upon customer needs and the product design that meets the product requirements. The outputs of scope planning are the scope statement and scope management plan, with the supporting detail. The scope statement forms the basis for an agreement between the project and the project customer by identifying both the project objectives and the project deliverables. Project teams develop multiple scope statements that are appropriate for the level of project work decomposition.
Scope Definition
Scope definition involves subdividing the major project deliverables into smaller, more manageable components to:
Improve the accuracy of cost, duration and resource estimates
Define a baseline for performance measurement and control
Facilitate clear responsibility assignments
Proper scope definition is critical to the projects success.
Scope Verification
Scope verification is the process of obtaining formal acceptance of the project scope by the stakeholders (sponsor, client, customer, etc.).
It requires reviewing deliverables and work results to ensure that all were completed correctly and satisfactorily.
If the project is terminated early, the scope verification process should establish and document the leve3l and extend of completion.
Scope verification differs from quality control in that it is primarily concerned with acceptance of the work results while quality control is primarily concerned with the correctness of the work results.
These processes are generally performed in parallel to ensure both correctness and acceptance.
Scope Change Control
Scope change control is concerned with:
Influencing the factors that create scope changes to ensure that changes are agreed upon
Determining that a scope change has occurred
Managing the actual change when and if they occur
Scope change control must be thoroughly integrated with the other control processes.
PROJECT TIME MANAGEMENT
Project Time Management includes the processes required to accomplish timely completion of the project.
Project Time Management Processes include:
Define Activities – The process of identifying the specific actions to be performed to produce the project deliverables.
Sequence Activities – The process of identifying and documenting relationships among the project activities.
Estimate Activity Resources – The process of estimating the type and quantities of material, people, equipment, or supplies required to perform each activity.
Estimate Activity Durations – The process of approximating the number of work periods needed to complete individual activities with estimated resources.
Develop Schedule – The process of analyzing activity sequences, durations, resource requirements, and schedule constraints to create the project schedule.
Control Schedule – The process of monitoring the status of the project to update project progress and managing changes to the schedule baseline.
The very first step in Project Time Management is to Define Activities. This is a very basic project management task which includes identifying all of the specific actions to be performed to produce the project deliverables. This is done by taking the work packages as identified in the work breakdown structure (WBS) which was developed in the Create WBS process of the scope management process and further decomposing the work packages down into more manageable activities. The activities will represent the final outputs rather than deliverables. For example, we may have identified a claims report as part of our new insurance system we are working on. The deliverable is the report, but the activities to actually complete the report may be much more detailed and may require a set of 10 specific activities. Traditionally the process of defining activities is fully detailed out during the planning process. Rolling wave planning however can be used on agile projects. Rolling wave planning is a form of progressive elaboration planning where the work to be accomplished in the near term is planned in detail and future work is planned at a higher level. This is a core principle of agile software development where detailed requirements and activities are completed “just in time” during the early days of each iteration.
The next process in project time management is identifying and documenting relationships among the project activities. You sequence activities by identifying the relationship and dependencies between all your activities and then defining predecessors and successors for each task. This process is made much easier using a project management tool such as Microsoft Project.
Estimate Activity Resources is the process of estimating the type and quantities of material, people, equipment, or supplies required to perform each activity. This process often takes experience and expert judgment to perform well. A deep knowledge of the business domain you are working in is required to be able to identify all the correct resources to complete the project. If the Project Manager does not have this knowledge, they must use guidance from others.
The process of estimating activity durations is one that also requires some expert judgment. This is one process where buy in and collaboration with the project team is critical. There are entire books written on the subject of estimation, but often an estimate from the person who will be doing the work is the most effective. If they develop the estimate they are much more likely to work very hard to complete the work within the estimated time.
Developing the schedule is the process of analyzing activity sequences, durations, resource requirements, and schedule constraints to create the project schedule. It
is the integration of all the previous time management processes into a final cohesive schedule that can be executed by the project team members and managed effectively by the project manager. This is often an iterative process to develop the best schedule possible.
Controlling the schedule is the process of monitoring the status of the project to update project progress and managing changes to the schedule baseline. Every project I’ve ever managed has required changes of some type. Changes to scope and or budget will require adjustments to schedule to ensure the project meets its objectives.
PROJECT COST MANAGEMENT:
Project Cost Management is a group of processes required to ensure the project is completed within the approved budget
There are following processes which are part of Project Cost Management.
Resource Planning: Determining physical resources needed (i.e., material, equipment, and people) and what quantities of each should be used and when they would be needed to perform project activities
Cost Estimating: Process of developing an approximation (or estimate) for the cost of the resources necessary to complete the project activities.
Cost Estimating process is a part of "Project Planning Phase".
Cost Estimating when creating a budget for a job, project management must be able to engage properly in the process of cost estimating. This is a calculated projection of the cost for the materials required by the project. The materials considered in cost estimating can be any resources required for the job such as raw materials or employee wages.
It is critical for a true approximation of the production costs that those in project management take into account all resources which might be used. Neglecting certain materials could result in cost estimating which is too low. This increases the likelihood that the budget will be exceeded.
Accurate cost estimating by project management needs to be done often when creating a bid for the project. Too high of an estimate, and the bid could be lost to another company. A bid which is falsely low will result in unanticipated costs the client will have to pay, and that could damage the chances of future business with that customer. Knowing the true price of the project is important for anyone in management in order to create a budget for the job and to make bids.
Cost Estimating - Tools & Techniques
Analogous estimating : Analogous estimating is also called top-down estimating and uses the actual cost of a previous, similar project as the basis for estimating the cost of the current project. It is frequently used to estimate total project costs when there is a limited amount of detailed information about the project. Analogous estimating is a form of expert-judgment.
Determine Resource Cost Rates: The person determining the rates or the group preparing the estimates must know the unit cost rates, such as staff cost per hour and bulk material cost per cubic yard, for each resource to estimate schedule activity costs.
Bottom-up estimating : Estimating the cost of individual work items and then rolling up the costs to arrive at a project total - more accurate.
Parametric modeling : Using project characteristics (or parameters) in a mathematical model to predict costs (e.g., price per square foot).
Project Management Software: Project management software, such as cost estimating software applications, computerized spreadsheets, and simulation and statistical tools, are widely used to assist with cost estimating.
Vendor Bid Analysis: In cases where projects are won under competitive processes, additional cost estimating work can be required of the project team to examine the price of individual deliverables, and derive a cost that supports the final total project cost.
Reserve Analysis: Many cost estimators include reserves, also called contingency allowances, as costs in many schedule activity cost estimates.
Cost of Quality: Cost of quality can also be used to prepare the schedule activity cost estimate.
Cost Budgeting: Allocating the value of the overall cost estimate to individual work items, in order to establish a cost baseline for measuring project performance.
Cost Budgeting estimating is part of "Project Planning Phase".
To create an effective cost budgeting plan, a total budget for the entire project must first be established. To achieve this, each area of the project must be analyzed and given a particular cost estimate. Once that is done, the total sum of cost assessments, whether those costs are in individual projects or in work packages, are combined to establish a certain parameter to provide a working guideline for the budget. These guidelines are set in place so that the allotted costs are divvied up amongst the appropriate project needs. This will ensure that the budget goals are being accurately met. The process of cost budgeting is a simple, yet necessary process of any successful type of project management.
Cost Budgeting - Tools & Techniques
Cost Aggregation: Schedule activity cost estimates are aggregated by work packages in accordance with the WBS. The work package cost estimates are then aggregated for the higher component levels of the WBS, such as control accounts, and ultimately for the entire project.
Reserve Analysis: Reserve analysis establishes contingency reserves, such as the management contingency reserve, that are allowances for unplanned, but potentially required, changes. Such changes may result from risks identified in the risk register
Parametric Estimating: The parametric estimating technique involves using project characteristics (parameters) in a mathematical model to predict total project costs.
Funding Limit Reconciliation: Large variations in the periodic expenditure of funds are usually undesirable for organizational operations. Therefore, the expenditure of funds is reconciled with the funding limits set by the customer or performing organization on the disbursement of funds for the project.
Cost Control
When it comes to project management, whether or not the management team exercises cost control can make or break a project’s budget. Cost control can best be achieved by setting up a budget which is consistent with plans for actual spending. Although it might sometimes be necessary to make adjustments, it is important to adhere to the budget as closely as possible during the project management process.
Another important aspect of cost control involves collecting actual costs and regularly creating reports for those expenditures. In addition, it is essential to accurately report and regularly assess progress throughout all phases of the project. It is also advisable to keep a close eye on cost trends as well as anticipating costs of work that still remains to be completed. Once determined these figures should be closely compared to estimates for final completion of the project.
Cost variances or approved budget changes must also be accounted for to maintain proper cost control. Any discrepancies that are not within the bounds of budget constraints should be promptly brought to the attention of the project management team.
Project cost control includes:.
Influencing the factors that create changes to the cost baseline
Ensuring requested changes are agreed upon
Managing the actual changes when and as they occur
Monitoring cost performance to detect variances from the plan.
Recording all appropriate changes accurately against the cost baseline
Ensuring that all appropriate changes are recorded.
Preventing incorrect, inappropriate, or unauthorized changes from being included.
Informing the appropriate stakeholders of authorized changes.
Act to bring expected costs within acceptable limits.
Analyzing positive and negative variances
There is significant work that must go into planning the project before costs can be estimated and a budget established. If these inputs are not done well or are not complete, then your cost estimates and budget may simply be wrong.
Project Quality Management:
Project Quality Management is a critical aspect of the performing organization, and integral to project management. It includes the processes and activities, that determine the quality policies, objectives, and responsibilities necessary to assure that project requirements are met. Project Quality Management implements the organization’s Quality Management System via policies, procedures, and continuous improvement activities, as appropriate. Processes critical to the Quality Management System include Quality Planning, Quality Assurance, and Quality Control.
Quality Planning is an integral part of project management. It identifies relevant quality standards and determines how they can best be satisfied.
Quality Assurance ensures that project management utilizes the quality processes needed to meet project requirements in a planned and systematic manner.
.Quality Control monitors specific project outputs and determines compliance with applicable standards. It also identifies project risk factors, their mitigation, and looks for ways to prevent and eliminate unsatisfactory performance.
In summary, Project Quality Management is the foundation for the organization’s
products and services.
Quality Planning
Quality planning refers specifically to the actions of the project management team and or the project management team leader to engage in the action of establishing and conducting a process for the purposes of identifying and determining exactly which standards of quality are in fact relevant to the project as a whole, and also in making an effective determination as to how to satisfy them. The concept of quality refers specifically to the degree or amount toward which an inherent or embedded number of traits fulfills a number of predetermined requirements that have been deemed necessary. In quality planning, it is determined how vigilant to be in regards to monitoring these traits, how stringent to be in the management process in redirecting energies that have lost focus and are causing deviations in the focus from these inherent traits,. Quality planning is typically best done at the onset of the project, but can of course be tweaked as necessary.
Risk management is the systematic process of identifying, analyzing, and responding to project risk. It includes maximizing the probability and consequences of adverse events to project objectives.
These processes interact with each other and with the processes in the other knowledge areas. Each process generally occurs at least once in every project. Although processes are presented here as discrete elements with well-defined interfaces, in practice they may overlap and interact in ways not detailed here.
RISK Management Planning
Risk management planning is the process of deciding how to approach and plan the risk management activities for a project. It is important to plan for the risk management process that follows to ensure that the level, type and visibility of risk management are commensurate with both the risk and importance of the project to the organization.
RISK Identification
Risk identification involves determining which risks might affect the project and documenting their characteristic.
Participating in risk identification generally include the following as possible:
Project Team
Risk management team
Subject matter experts from other parts of the company
Customers
End users
Other project managers
Stakeholder
Outside experts
Risk identification is an iterative process. The first iteration may be performed by a part of the project team, or by the risk management team. The entire project team and primary stakeholders may make a second iteration. TO achieve an unbiased analysis, persons who are not involved in the project may perform the final iteration.
Often simple and effective risk responses can be developed and even implemented as soon as the risk is identified.
Qualitative Risk Analysis
Qualitative risk analysis is the process of assessing the impact and likelihood of identified risks. This process prioritizes risks according to their potential effect on project objectives. Qualitative risk analysis is one way to determine the importance of addressing specific risks and guiding risk responses. The time-criticality of risk-related actions may magnify the importance of a risk. AN evaluation of the quality of the available information also helps modify the assessment of the risk. Qualitative risk analysis requires that the probability and consequences of the risks be evaluated using established qualitative-analysis methods and tools.
Trends in the results when qualitative analysis is repeated can indicate the need for more or less risk-management actions. Use of these tools helps correct biases that are often in a project plan. Qualitative risk analysis should be revisited during the project’s life cycle to stay current with changes in the project risks. This process can lead to further analysis in quantitative risk analysis or directly to risk response planning.
Quantitative Risk Analysis
The quantitative risk analysis process aims to analyze numerically the probability of each risk and its consequences on project objectives, as well as the extent of overall project risk. This process uses techniques such as Monte Carlo simulation and decision analysis to:
Determine the probability of achieving a specific project objective.
Quantify the risk exposure for the project, and determine the size of cost and schedule contingency reserves that may be needed.
Identify risks requiring the most attention by quantifying their relative contribution to project risk.
Identify realistic and achievable cost, schedule or scope targets.
Quantitative risk analysis generally follows qualitative risk analysis. It requires risk identification. The qualitative and quantitative risk analysis processes can be used separately or together. Considerations of time and budget availability and the need for qualitative or quantitative statements about risk and impacts will determine method(s) to use. Trends in the results when Quantitative analysis is
repeated can indicate the need for more or less risk management action.
Risk Response Planning
Risk response planning is the process of developing options and determining actions to enhance opportunities and reduce threats to the project’s objectives. It includes the identification and assignment of individual or parties to take responsibility for each agreed risk response. This process ensures that identified risks are properly addressed. The effectiveness of response planning will directly determine whether risk increases or decreases for the project.
Risk Monitoring and Control
Risk monitoring and control is the process of keeping track of the identified risks, monitoring residual risks and identifying new risks, ensuring the execution of risk plans, and evaluating their effectiveness in reducing risk. Risk monitoring and control records risk metrics that are associated with implementing contingency plans. Risk Monitoring and control is an ongoing process for the life of the project. The risks change as the project matures, new risks develop or anticipated risks
disappear.
Project Procurement Management includes the processes required to acquire goods and services, to attain project scope, from outside the performing organization. For simplicity, goods and services, whether one or many, will generally be referred to as a product.
This procurement process will also help you to:
Identify the goods and services to procure
Complete Purchase Orders and issue to suppliers
Agree on delivery timeframes and methods
Receive goods and services from suppliers
Review and accept the items procured
Approve supplier payments
This Procurement Management Process will enable you to:
Identify supplier contract milestones
Review supplier performance against contract
Identify and resolve supplier performance issues
Communicate the status to management
Procuring goods and services from external suppliers can be a critical path for many projects. Often, the performance of the supplier will reflect on the performance of the overall project team. It's therefore crucial that you manage your supplier’s performance carefully, to ensure that they produce deliverables which meet your expectations.
Project Management Triangle
The Project Management Triangle.
Like any human undertaking, projects need to be performed and delivered under certain constraints. Traditionally, these constraints have been listed as "scope," "time," and "cost". These are also referred to as the "Project Management Triangle", where each side represents a constraint. One side of the triangle cannot be changed without affecting the others. A further refinement of the constraints separates product "quality" or "performance" from scope, and turns quality into a fourth constraint.
The time constraint refers to the amount of time available to complete a project.
The cost constraint refers to the budgeted amount available for the project.
The scope constraint refers to what must be done to produce the project's end result.
These three constraints are often competing constraints: increased scope typically means increased time and increased cost, a tight time constraint could mean increased costs and reduced scope, and a tight budget could mean increased time and reduced scope.
The discipline of Project Management is about providing the tools and techniques that enable the project team (not just the project manager) to organize their work to meet these constraints.
The project triangle: view projects in terms of time, cost, and scope
You can visualize project work in many ways, but our favorite method is what is sometimes called the project triangle or triangle of triple constraints.
This theme has many variations, but the basic concept is that every project has some element of a time constraint, has some type of budget, and requires some amount of work to complete.
Let’s consider these constraints one at a time.
Time
Have you ever worked on a project that had a deadline? (Maybe we should ask whether you’ve ever worked on a project that did not have a deadline.) Limited time is the one constraint of any project with which we are all probably most familiar. If you’re working on a project right now, ask your team members to name the date of the project deadline. They might not know the project budget or the scope of work in great detail, but chances are they all know the project deadline.
The following are examples of time constraints:
You are building a house and must finish the roof before the rainy season arrives.
You are assembling a large display booth for a trade show that starts in two months.
You are developing a new inventory-tracking system that must be tested and running by the start of the next fiscal year.
For many projects that create a product or event, time is the most important constraint to manage.
Cost
You might think of cost simply in monetary terms, but project cost has a broader meaning: costs include all of the resources required to carry out the project. Costs include the people and equipment that do the work, the materials they use, and all of the other events and issues that require money or someone’s attention in a project.
The following are examples of cost constraints:
You have signed a fixed-price contract to deliver an inventory-tracking software system to a client. If your costs exceed the agreed-upon price, your customer might be sympathetic but probably won’t be willing to renegotiate the contract.
The president of your organization has directed you to carry out a customer research project using only the staff and equipment in your department.
For virtually all projects, cost is ultimately a limiting constraint; few projects could go over budget without eventually requiring corrective action.
Scope
You should consider two aspects of scope: product scope and project scope.
Every successful project produces a unique product: a tangible item or service. Customers usually have some expectations about the features and functions of products they consider purchasing. Product scope describes the intended quality, features, and functions of the product — often in minute detail. Documents that outline this information are sometimes called product specifications. A service or event usually has some expected features as well. We all have expectations about what we’ll do or see at a party, concert, or sporting event.
Project scope, on the other hand, describes the work required to deliver a product or service with the intended product scope. Project scope is usually measured in tasks and phases.
The following are examples of scope constraints:
Your organization won a contract to develop an automotive product that has exact requirements — for example, physical dimensions measured to 0.01 mm. This is a product scope constraint that will influence project scope plans.
You are constructing a building on a lot that has a height restriction of 50 feet.
You can use only internal services to develop part of your product, and those services follow a product development methodology that is different from what you had planned.
Product scope and project scope are closely related. The project manager who manages project scope well must also understand product scope or must know how to communicate with those who do
Time, cost, and scope: manage project constraints
Project management gets most interesting when you must balance the time, cost, and scope constraints of your projects. The project triangle illustrates the process of balancing constraints because the three sides of the triangle are connected, and changing one side of a triangle affects at least one other side.
The following are examples of constraint balance:
If the duration (time) of your project schedule decreases, you might need to increase budget (cost) because you must hire more resources to do the same work in less time. If you cannot increase the budget, you might need to reduce the scope because the resources you have cannot complete all of the planned work in less time.
If you must decrease a project’s duration, make sure that overall project quality is not unintentionally lowered. For example, testing and quality control often occur last in a software development project; if project duration is decreased late in the project, those tasks might be the ones to suffer with cutbacks. You must weigh the benefits of decreasing the project duration against the potential downside of a deliverable with poorer quality.
If the budget (cost) of your project decreases, you might need more time because you cannot pay for as many resources or for resources of the same efficiency. If you cannot increase the time, you might need to reduce project scope because fewer resources cannot complete all of the planned work in the time remaining.
If you must decrease a project’s budget, you could look at the grades of material resources for which you had budgeted. For example, did you plan to shoot a film in 35 mm when cheaper digital video would do? A lower-grade material is not necessarily a lower-quality material. As long as the grade of material is appropriate for its intended use, it might still be of high quality. As another example, fast food and gourmet are two grades of restaurant food, but you may find high-quality and low-quality examples of each.
You should also look at the costs of the human and equipment resources you have planned to use. Can you hire less experienced people for less money to carry out simpler tasks? Reducing project costs can lead to a poorer-quality deliverable, however. As a project manager, you must consider
(or, more likely, communicate to the decision makers) the benefits versus the risks of reducing costs.
If your project scope increases, you might need more time or resources (cost) to complete the additional work. When project scope increases after the project has started, it’s called scope creep. Changing project scope midway through a project is not necessarily a bad thing; for example, the environment in which your project deliverable will operate may have changed or become clearer since beginning the project. Changing project scope is a bad thing only if the project manager doesn’t recognize and plan for the new requirements — that is, when other constraints (cost, time) are not correspondingly examined and, if necessary, adjusted.
Work Breakdown Structure
The Work Breakdown Structure (WBS) is a tree structure, which shows a subdivision of effort required to achieve an objective; for example a program, project, and contract. The WBS may be hardware, product, service, or process oriented.
A WBS can be developed by starting with the end objective and successively subdividing it into manageable components in terms of size, duration, and responsibility (e.g., systems, subsystems, components, tasks, subtasks, and work packages), which include all steps necessary to achieve the objective.
The Work Breakdown Structure provides a common framework for the natural development of the overall planning and control of a contract and is the basis for dividing work into definable increments from which the statement of work can be developed and technical, schedule, cost, and labor hour reporting can be established.
Project portfolio management
An increasing number of organizations are using, what is referred to as, project portfolio management (PPM) as a means of selecting the right projects and then using project management techniques as the means for delivering the outcomes in the form of benefits to the performing private or not-for-profit organization.
Project management methods are used 'to do projects right' and the methods used in PPM are used 'to do the right projects'. In effect PPM is becoming the method of choice for selection and prioritizing among resource inter-related projects in many industries and sectors.