The time limit refers to the amount of time to complete the project. Cost constraint refers to the amount budgeted for the project. Scope refers to the restriction, which must be made to the project to produce the final result. These three constraints are often competing constraints: an enlarged usually means more time and increased costs, a tight time constraint could mean increased costs and reduced scope, and tight budget could mean increased time and reduced scope.
Discipline in managing the project is to provide the tools and techniques that enable the project team (not just the project manager) to organize their work, in order to achieve these restrictions.
Time
BROKEN DOWN for analytical purposes to take the time needed to complete the components of the project, which is then divided at the time to perform each task's contribution for each component.
Value
Price development of the project depends on several variables including (primarily): the work-rates, material rates, risk management, plant (buildings, equipment, etc.), equipment and profits. When hiring an independent consultant on the project cost is usually the consultant or the company's per diem rate multiplied by the estimated quantity manufactured.
Scope
Requirements specified for the end result. Common definition of what the project aims to achieve and the specific description of how the end result should be, or will. Is an important part of the scope and quality of the final product. Placed in a time determined by the overall quality of individual project. Some tasks may require a certain period of time to complete adequately, but given more time, can be met in exceptional circumstances. During a large project, quality can have a significant impact on the time and cost (or vice versa).
Project Management activities
Project Management is composed of several different types of activities such as:
1. Planning the work or objectives
2. Analysis & Design of objectives
3. Assessing and mitigating risk
4. Estimating resources
5. Allocation of resources
6. Organizing the work
7. Acquiring human and material resources
8. Assigning tasks
9. Directing activities
10. Controlling project execution
11. Tracking and Reporting progress
12. Analyzing the results based on the facts achieved
13. Defining the products of the project
14. Forecasting future trends in the project
15. Quality Management
16. Issues Management
Project Management artifacts
All successful projects adequately document objectives and deliverables. These documents are a mechanism to align sponsors, clients, and project team's expectations.
1. Project Charter
2. Business case/Feasibility Study
3. Scope Statement / Terms of reference
4. Work Breakdown Structure
5. Change Control Plan
6. Risk Management Plan
7. Communications Plan
8. Governance Model
9. Risk Register
10. Issue Log
11. Resource Management Plan
12. Project Schedule
13. Status Report
14. Responsibility assignment matrix
15. Database of risks
16. Database of lessons learned
17. Stakeholder Analysis
These documents are normally hosted on a shared resource (i.e., intranet web page) and are available for review by the project's stakeholders. Changes or updates to these documents are explicitly outlined in the project's configuration management (or change control plan). Project control variables
Project Management tries to gain control over variables such as risk:
risk
Potential points of failure. Most negative risks (or potential failures) can be overcome or resolved, given enough planning capabilities, time, and resources. According to some definitions (including PMBOK Third Edition) risk can also be categorized as "positive--" meaning that there is a potential opportunity, e.g., complete the project faster than expected.
Customers (either internal or external project sponsors), external organizations (such as government agencies and regulators) can dictate the extent of three variables: time, cost, and scope. The remaining variable (risk) is managed by the project team, ideally based on solid estimation and response planning techniques. Through a negotiation process among project stakeholders, an agreement defines the final objectives, in terms of time, cost, scope, and risk, usually in the form of a charter or contract.
To properly control these variables a good project manager has a depth of knowledge and experience in these four areas (time, cost, scope, and risk), and in six other areas as well: integration, communication, human resources, quality assurance, schedule development, and procurement.
History of Project Management
As a discipline, Project Management developed from several different fields of application, including construction, mechanical engineering, military projects, etc. In the United States, the forefather of project management is Henry Gantt, called the father of planning and control techniques, who is famously known for his use of the "bar" chart as a project management tool, for being an associate of Frederick Winslow Taylor's theories of scientific management, and for his study of the work and management of Navy ship building. His work is the forerunner to many modern project management tools, including the work breakdown structure (WBS) and resource allocation.
The 1950's mark the beginning of the modern project management era. Again, in the United States, prior to the 1950's, 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: (1) the "Program Evaluation and Review Technique" or PERT, developed as part of the United States Navy's (in conjunction with the Lockheed Corporation) Polaris missile submarine program; and (2) the "Critical Path Method" (CPM) developed in a joint venture by both DuPont Corporation and Remington Rand Corporation for managing plant maintenance projects. These mathematical techniques quickly spread into many private enterprises.
In 1969, the Project Management Institute (PMI) was formed to serve the interest of the project management industry. The premise of PMI is that the tools and techniques of project management are common even among the widespread application of projects from the software industry to the construction industry. In 1981, the PMI Board of Directors authorized the development of what has become the The Guide to the Project Management Body of Knowledge, containing the standards and guidelines of practice that are widely used throughout the profession.
Approaches
There are several approaches that can be taken to managing project activities including agile, iterative, incremental, and phased approaches.
Regardless of the approach employed, careful consideration needs to be given to clarify surrounding project objectives, goals, and importantly, the roles and responsibilities of all participants and stakeholders.
The traditional approach
A traditional phased approach identifies a sequence of steps to be completed. In the traditional approach, we can distinguish 5 components of a project (4 stages plus control) in the development of a project:
1. project initiation stage;
2. project planning or design stage;
3. project execution or production stage;
4. project monitoring and controlling systems;
5. project completion stage.
Not all projects will visit every stage as projects can be terminated before they reach completion. Some projects probably don't have the planning and/or the monitoring. Some projects will go through steps 2, 3 and 4 multiple times.
Many industries utilize variations on these stages. For example, in bricks and mortar architectural design, projects typically progress through stages like Pre-Planning, Conceptual Design, Schematic Design, Design Development, Construction Drawings (or Contract Documents), and Construction Administration. In software development, this approach is often know as Rational Unified Process (RUP) traditionally known as 'waterfall development' i.e one series of tasks after another in linear sequence. Waterfall development can work for small tightly defined projects, but for larger projects of undefined or unknowable scope, it is less suited. While the names may differ from industry to industry, the actual stages typically follow common steps to problem solving--defining the problem, weighing options, choosing a path, implementation and evaluation.
Critical chain
Critical chain is an extension to the traditional critical path method.
In critical studies of project management, it has been noted that several of these fundamentally PERT-based models are not well suited for the multi-project company environment of today. Most of them are aimed at very large-scale, one-time, non-routine projects, and nowadays all kinds of management are expressed in terms of projects. Using complex models for "projects" (or rather "tasks") spanning a few weeks has been proven to cause unnecessary costs and low maneuverability in several cases. Instead, project management experts try to identify different "lightweight" models, such as, for example Extreme Programming for software development and Scrum techniques. The generalization of Extreme Programming to other kinds of projects is extreme project management, which may be used in combination with the process modeling and management principles of human interaction management.
Process-based (agile) management
Also furthering the concept of project control is the incorporation of process-based management. This area has been driven by the use of Maturity models such as the CMMI (Capability Maturity Model Integration) and ISO/IEC15504 (SPICE - Software Process Improvement and Capability Determination), which have been far more successful.
Agile project management approaches based on the principles of human interaction management are founded on a process view of human collaboration. This contrasts sharply with traditional approach. In the agile software development or flexible product development approach, the project is seen as a series of relatively small tasks conceived and executed as the situation demands in an adaptive manner, rather than as a completely pre-planned process.
Project systems
As mentioned above, traditionally, project development includes five elements: control systems and four stages.
Project control systems
Project control is that part of the project, which keeps the track, on-time and budget. Project planning, control begins at the beginning of the project and ends late in the project post-implementation review, which involved every step of this process. Each project should be evaluated for appropriate level of control needed, too much control is too time-consuming, too little control is too expensive. Clarification of the cost of the business has not been implemented for the error corrections, and additional audit fees.
It is necessary to control costs, risk, quality, communication, time, change, procurement, and human resources. In addition, auditors should consider how the projects are important to the financial statements, how reliant the stakeholders that are controlled, and how many controls exist. Auditors should check that the development process and procedures, how to implement them. The process of development and the quality of the final product may also be assessed if needed or requested. The company may want the auditing firm should be involved throughout the process to catch problems early, so that they can more easily identified. The auditor may have control of the consultant as part of the development team or as part of an audit by an independent auditor.
Businesses sometimes use formal development processes. These measures will help to ensure that systems are developed successfully. Formal process is more efficient to create a strong monitoring and auditors should be a process to confirm that it is well designed and followed in practice. A good formal systems development plan describes:
* The strategy to lead the development of the organization's broader goals
* Standards for new systems
* Project schedule and budget policy
* Procedures describing the process
Project development stages
Regardless of the methodology used, the project development process will have the same major stages: initiation, development, production or execution, and closing/maintenance.
Initiation
The initiation stage determines the nature and scope of the development. If this stage is not performed well, it is unlikely that the project will be successful in meeting the business’s needs. The key project controls needed here is 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 cohesive plan that encompasses the following areas:
* Study analyzing the business needs in measurable goals.
* Review of the current operations.
* Conceptual design of the operation of the final product.
* Equipment requirement.
* Financial analysis of the costs and benefits including a budget.
* Select stake holders, including users, and support personnel for the project.
* Project charter including costs, tasks, deliverables, and schedule.
Planning and design
After the initiation stage, the system is designed, occasionally a small prototype of the final product is built and tested. Testing is generally performed by a combination of testers and end users, and can occur after the prototype is built or concurrently. Controls should be in place that ensures that the final product will meet the specifications of the project charter. The results of the design stage should include:
* A product that satisfies the project sponsor, end user, and business requirements.
* Functions as it was intended.
* Can be produced within quality standards.
* Can be produced with time and budget.
Production or execution
The execution stage includes the actual implementation of the design or plan. In software systems, this includes conversion (transfer of data from an old system to a new system), documentation, and training. From an auditor's perspective, training is also important because it helps users use the software correctly. The bulk of the project's work and largest capital expenditure is realized in this stage.
Closing and Maintenance
Closing includes the formal acceptance of the project and the ending thereof. Administrative activities include the archiving of the files and documenting lessons learned.
Maintenance is an ongoing process, and it includes:
* Continuing support of end users
* Correction of errors
* Updates of the software over time
In this stage, auditors should pay attention to how effectively and quickly user problems are resolved.
Project Management - Corporate Standards
The are many corporations globally which have developed proprietary as well as open standards for project management. The most prominent corporations include the follow:
* Open Standards Project Management & Consulting Services (The Open Standards Project Management Method (2005-present))
* IBM (RUP)
* HSBC (Risk Based Project Management(RBPM))
Project Management Corporations - Professional Certifications & Designations
The are many corporations globally which have developed proprietary as well as open standards for project management. The most prominent corporations include:
* Open Standards Project Management & Consulting Services (Masters Certificate in Open Standards Project Management; Open Standards Certified Project Manager professional designation)
* IBM (RUP)
* CGI
* ITIL
* PRINCE2
Project Management Associations
Several national and professional associations exist which has as their aim the promotion and development of project management and the project management profession. The most prominent associations include:
* The Association for Project Management (UK) (APM)
* The Australian Institute of Project Management (AIPM)
* The International Project Management Association (IPMA)
* The Project Management Institute (PMI)
* The International Association of Project & Program Management (IAPPM)
* The International Project Management Commission (IPMC)
International Standards
* Open Standards Project Management & Consulting Services (The Open Standards Project Management Method (2005-present))
* A Guide to the Project Management Body of Knowledge (PMBOK Guide)
* APM Body of Knowledge 5th ed. (APM - Association for Project Management (UK))
* PRINCE2 (PRojects IN a Controlled Environment)
* P2M (A guidebook of Project & Program Management for Enterprise Innovation, japanese third-generation project management method)
* V-Modell (German project management method)
* HERMES (The Swiss general project management method, selected for use in Luxembourg and international organisations)
Professional Certifications
There have been several attempts to develop project management standards, such as:
* Open Standards Project Management (The Open Standards Project Management Method (2005-present))
* ISO 10006:1997, Quality management - Guidelines to quality in project management
* CPM ([The International Association of Project & Program Management])
* ISEB Project Management Syllabus
* JPACE (Justify, Plan, Activate, Control, and End - The James Martin Method for Managing Projects (1981-present))
See also: An exhaustive list of standards (maturity models)
So far, there is no known attempt to develop a project management standard available under the GNU Free Documentation License. There was a proposed Project Management XML Schema.
There is an effort by PMI to develop The Practice Standard for Scheduling. (This document is currently (May 2006) in exposure draft, which is near the end of the standards development process.)
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