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![Portfolio Management
i. Centralized management of one or more portfolios [identifying,
prioritizing, authorizing, managing and controlling projects,
programs and other related work to achieve strategic business
objectives]
ii. Aims to prioritize resource allocation
iii. Consistent and align with organizational strategies](https://image.slidesharecdn.com/topic2introductiontoprojectmanagement-231215145039-9fa62c98/75/Topic-2-Introduction-to-Project-Management-pptx-21-2048.jpg)
Topic 2 Introduction to Project Management.pptx
- 1. BPM1313 – Introduction toProject Management
- 2. Contents – Introductionto Project Management i. Defining Project ii. Defining Project Management iii. Project, Programs and Portfolio iv. Project Management, Operation Management, General Management v. Benefits of Project Management vi. Challenges of Project Management
- 3. What is project? “Uniqueprocess consisting of a set of coordinated and controlled activities with start and finish dates, undertaken to achieve an objective conforming to specific requirements, including constraints of time, cost, quality and resources” A project is a planned set of activities A project has a scope A project has time, cost, quality and resource constraints
- 4. What is project? Acomplex, non-routine, one-time effort limited by time, budget, resources, and performance specifications designed to meet customer needs.
- 5. What is project? Aseries of activities and tasks that • Have a specific objective to be completed within certain specifications; • Have defined start and end dates; • Have funding limits (if applicable); • Consume resources (i.e., money, people, & equipment)
- 6.
- 7. Characteristics of aProject • Temporary endeavor • Definite start date and end date • Unique services or product • Projects end when objectives are met or NOT MET • No two projects are the same • A project is divided into phases • Pieces of work are deliverables • Deliverable is tangible and verifiable
- 8. Common Project Terms i.Deliverables – Tangible things that the project produces ii. Milestone – Dates by which major activities are performed iii. Tasks – Also known as activities. Activities undertaken during the project execution iv. Risks – Potential problem that may arise v. Issues – Risks that have already happened
- 9. Common Project Terms i.Stakeholder – Any person or group of people who may be affected by/may affect the project ii. Gantt Chart – A specific type of chart showing time and tasks. Usually created by a project management program
- 10. Defining Project Management Projectmanagement is the application of knowledge, skills and techniques to the project activities in order to meet or exceed stakeholders’ needs and expectations from a project. It invariably involves balancing competing demand among: Scope, time, cost, quality, risk, customer satisfaction Stakeholders with differing needs and expectations Identified needs & unidentified needs
- 11. Defining Project Management Theart of organising, leading, reporting and completing a project through people
- 12. Defining Project Management ISODefinition: A project is a unique process consisting of a set of co-ordinated and controlled activities with start and finish dates, undertaken to achieve an objective conforming to specific requirements including the constraints of time, cost and resources.
- 13. Advantages Project Management I.About 97% respondents say it adds value II. Return on Investment (ROI) is 28% III. Improvement in time to market by 22% IV. Improvement in customer satisfaction by 38% V. Improvement in productivity by 23%
- 14. Advantages Project Management I.Improvement in cost performance by 24% II. Improvement in schedule performance by 32% - Center for Business Practices (CBP) (PM Solutions Whitte Paper Series, 2002)
- 15. Project Management: Historical perspective 1960-1970Traditional Project Management Construction, Aerospace, Defense Technology and schedule driven 1970-1985 Focused Project Management High tech businesses, multi- discipline developments Software engineering, matrix management 1985-1993 Renaissance of Project Management All organizations, developing formal methods Total quality management, concurrent engineering 1993- present Modern Project Management Accept by top management, Recognize as a discipline System engineering, change and risk management
- 16. Is there anysignificant difference among project, program and portfolio?
- 17. Program A series ofcoordinated, related, multiple projects that continue over an extended time and are intended to achieve a goal. A higher level group of projects targeted at a common goal. Example: • Project: completion of a required course in project management. • Program: completion of all courses required for a business major.
- 18. Program i. Programs aregroups of related projects that are managed using the same techniques in a coordinated fashion – PMP Exam study guide ii. A group of related projects managed in a coordinated way to obtain benefits and control but not available from managing them individually – PMBOK sixth Edition
- 19. Program i. A projectmay or may not be part of a program but a program will always have projects ii. Centralized coordinated management of a program to achieve the program’s strategic objective and benefits iii. Focuses on the project interdependencies and helps to determine the optimal approach for managing them
- 20. Portfolio Management i. Portfoliosare a collection of programs and projects that support a specific business goal or objective – PMP Exam study guide ii. Collection of projects or programs and other work that are grouped together to facilitate effective management of that work to meet strategic business objective – PMBOK sixth Edition
- 21. Portfolio Management i. Centralizedmanagement of one or more portfolios [identifying, prioritizing, authorizing, managing and controlling projects, programs and other related work to achieve strategic business objectives] ii. Aims to prioritize resource allocation iii. Consistent and align with organizational strategies
- 22. Portfolio Management i. Keythemes include Strategic Alignment, Value Management, Risk Management, Resource Management and Performance Management
- 23. Why and whenPortfolio Management? i. No prioritization process for business request ii. Intense competition internally with regard to financing / staffing projects iii. Many projects are not adding “strategic value” to the organization iv. Project benefits not captured and tracked v. Excessive project delays due to lack of resources
- 24. Why and whenPortfolio Management? i. Teams overworked / under appreciated ii. Too many small projects are underway iii. Seek accurate estimates based on firm’s history & lesson learned
- 25. Benefits of PortfolioManagement i. Prioritizes project proposal across a common set criteria, rather than on politics or emotion ii. Allocates resources to projects that align with strategic decision iii. Link project selection to strategic metrics iv. Justifies killing projects that do not support organization strategy
- 26. Benefits of PortfolioManagement i. Balance risks across all projects ii. Improves communication and supports agreement on project goals
- 27. Project Management, Operation Management,and General Management
- 28. Operation Management i. Operationsare an organizational functions performing the ongoing execution of activities that produce the same product or provide a repetitive service ii. Operations require business process management or operation management iii. Operations are permanent endeavor, produce repetitive outputs, resources assigned to do the same set of tasks
- 29. Operation Management i. Projectscan intersect with operations at various points during the product life cycle; • Each close out phase • Developing new product, upgrading a product or expanding outputs • Improvement of operations • Product development process • Divestment or getting rid of operations at the end of a product life cycle
- 30. Project Operation vsOperation Management PROJECTS OPERATIONS Unique Repetitive Definite start and end Continuous Project resources Permanent resources Effectiveness Efficiency Goals Roles
- 31. Project Operation vsGeneral Management PROJECTS OPERATIONS Absolutely depend on planning Dependent on good planning Newly created budget Modified budget Unique Fix sequence of activities Trans-disciplinary Well-defined structure Relatively low in the hierarchical chain in command Well-defined managerial hierarchy
- 32. Project Management Bodyof Knowledge i. PMBOK Guide is the standard for managing most projects most of the time across many types of industries. ii. It has a standard describing the project management processes, tools and techniques used to manage a project toward a successful outcome. iii. The standard is unique to the PM field and has inter-relationship with other project management discipline.
- 33. Project Management Bodyof Knowledge i. PM standards do not address all details of every topic. ii. The standards are limited to a single project and the PM processes that are generally recognized as good practice.
- 34. Project Management Bodyof Knowledge