Understanding Project Management Basics

Although it might overlap with other types of management, project management is a specific management process.

What Is a Project?

There are two types of work performed by organizations: operations and projects. An operation is a series of tasks that are routine, repetitive, and ongoing throughout the life of the organization. Operations are typically necessary to sustain the business. Examples of operations are accounts receivable, employee performance reviews, and shipping and receiving. Employee performance reviews might take place every six months, for example, and although the names and circumstances of employees and supervisors might change, the process of preparing and conducting employee reviews is always the same. In addition, it's expected that there will continue to be employee reviews throughout the life of the organization.

On the other hand, projects are not routine or ongoing. That is, projects are unique and temporary and are often implemented to fulfill a strategic goal of the organization. A project is a series of tasks that will culminate in the creation or completion of some new initiative, product, or activity by a specific end date. Some project examples include an office move, a new product launch, the construction of a building, and a political campaign. It is never the same project twice ”for example, this year's product launch is different from last year's product launch. There's a specific end date in mind for the launch, after which the project will be considered complete. After the project is complete, a new and unique product will be on the market.

Projects come in all sizes. One project might consist of 100 tasks; another, 10,000. One project might be implemented by a single resource; another by 500. One project might take two months to complete; another might take 10 years . There can be projects within projects, linked together with a master project consolidating them all. These subprojects , however, are all unique and temporary, and all have a specific outcome and end date.

What Is Project Management?

Project management is the coordinating effort to fulfill the goals of the project. The project manager , as the leader of the project team, is responsible for this effort and its ultimate result. Project managers use knowledge, skills, tools, and methodologies to do the following:

• Identify the goals, objectives, requirements, and limitations of the project.

• Coordinate the different needs and expectations of the various project stakeholders, including team members , resource managers, senior management, customers, and sponsors.

• Plan, execute, and control the tasks, phases, and deliverables of the project based on the identified project goals and objectives.

• Close the project when completed and capture the knowledge accrued.

Project managers are also responsible for balancing and integrating competing demands to implement all aspects of the project successfully, as follows :

Project scope.       Specifying the specific work to be done for the project.

Project time.       Setting the finish date of the project as well as any interim deadlines for phases, milestones, and deliverables.

Project cost.       Calculating and tracking the project costs and budget.

Project human resources.       Signing on the team members who will carry out the tasks of the project.

Project procurement.       Acquiring the material and equipment resources with which to carry out project tasks.

Project communication.       Conveying assignments, updates, reports , and other information with team members and other stakeholders.

Project quality.       Identifying the acceptable level of quality for the project goals and objectives.

Project risk.       Analyzing potential project risks and response planning.

Inside Out: Microsoft Project and the project management disciplines

Microsoft Project supports many, but not all, of the management areas associated with project management. For example, it provides only minimal support for project procurement and project quality.

The solution is to combine Microsoft Project with other tools and resources. Use Microsoft Project to provide the initial information you need. Then draw upon other tools and resources as needed to more fully handle responsibilities specifically associated with procurement or quality. Finally, come full circle with Microsoft Project by adding notes to tasks or resources, inserting related documents, or linking to other locations.

For example, use Microsoft Project to help estimate your initial equipment and material resource requirements. Work through your organization's procurement process and compile the relevant data. Add notes to the resources or tasks in your project plan, making the information easy to reference. Use a tool such as Microsoft Excel, or another program especially designed for this purpose, to help track the depletion of materials to the point where reorder becomes necessary. Even though Microsoft Project can't manage every aspect of your project, it can still be the repository for all related information.

 

Balancing scope, time, and money is often among the biggest responsibilities of the project manager (see Figure 2-1).

Figure 2-1: The project triangle is an effective model for thinking about your project's priorities.

If you increase the scope, the time or money side of the triangle will also be increased. If you need to reduce time, that is, bring in the project finish date, you might need to decrease the scope or increase the cost through the addition of resources.

Note  

There's some debate about how to accurately describe the key controlling elements that make up a project. Some believe that it's best described as a triangle ”the three sides representing time, money, and resources. Others say that it's a square ”with scope, time, money, and resources being the four sides, each one affecting the others. This book approaches money and resources as synonymous in this context because resources cost money. Adding resources adds money, and the only thing you'd need more money for would be resources. So in this book, the project is conceptualized as a triangle with the three sides being scope, time, and money/resources.

Cross-References  

For information about working with the project triangle to help control your project, see Chapter 11, "Responding to Changes in Your Project."

Project Management Practices: Balancing and Integrating Competing Demands

Depending on the priorities and standards set for your project and by your organization, certain demands carry more weight than others in your project. Knowing these priorities and standards will help you make sound decisions about the project as issues arise. Although scope, time, and cost tend to be the most prevalent demands, the following is the full list of project controls:

• Scope

• Human resources

• Quality

• Time

• Procurement

• Risk

• Cost

• Communications