Project management
Overview
 
Project management is the discipline of planning, organizing, securing, and managing resources to achieve specific goals. A project
Project
A project in business and science is typically defined as a collaborative enterprise, frequently involving research or design, that is carefully planned to achieve a particular aim. Projects can be further defined as temporary rather than permanent social systems that are constituted by teams...

 is a temporary endeavor with a defined beginning and end (usually time-constrained, and often constrained by funding or deliverables), undertaken to meet unique goals and objectives, typically to bring about beneficial change or added value. The temporary nature of projects stands in contrast with business as usual (or operations)
Business operations
Business operations are those ongoing recurring activities involved in the running of a business for the purpose of producing value for the stakeholders...

, which are repetitive, permanent, or semi-permanent functional activities to produce products or services.
Encyclopedia
Project management is the discipline of planning, organizing, securing, and managing resources to achieve specific goals. A project
Project
A project in business and science is typically defined as a collaborative enterprise, frequently involving research or design, that is carefully planned to achieve a particular aim. Projects can be further defined as temporary rather than permanent social systems that are constituted by teams...

 is a temporary endeavor with a defined beginning and end (usually time-constrained, and often constrained by funding or deliverables), undertaken to meet unique goals and objectives, typically to bring about beneficial change or added value. The temporary nature of projects stands in contrast with business as usual (or operations)
Business operations
Business operations are those ongoing recurring activities involved in the running of a business for the purpose of producing value for the stakeholders...

, which are repetitive, permanent, or semi-permanent functional activities to produce products or services. In practice, the management of these two systems is often quite different, and as such requires the development of distinct technical skills and management strategies.

The primary challenge of project management is to achieve all of the project goals and objectives while honoring the preconceived constraints. Typical constraints are scope
Scope (project management)
In project management, the term scope has two distinct uses: Project Scope and Product Scope.Project Scope"The work that needs to be accomplished to deliver a product, service, or result with the specified features and functions."Product Scope...

, time, and budget. The secondary—and more ambitious—challenge is to optimize
Operations research
Operations research is an interdisciplinary mathematical science that focuses on the effective use of technology by organizations...

 the allocation
Resource allocation
Resource allocation is used to assign the available resources in an economic way. It is part of resource management. In project management, resource allocation is the scheduling of activities and the resources required by those activities while taking into consideration both the resource...

 and integrate the inputs necessary to meet pre-defined objectives.

History

Project management has been practiced since early civilization. Until 1900 civil engineering projects were generally managed by creative architects, engineers, and master builder
Master Builder
Master Builder can refer to:* Master builder, also "master mason", a central figure leading construction projects in pre-modern times .* The Master Builder, a play by Henrik Ibsen....

s themselves, among those for example Vitruvius
Vitruvius
Marcus Vitruvius Pollio was a Roman writer, architect and engineer, active in the 1st century BC. He is best known as the author of the multi-volume work De Architectura ....

 (1st century BC), Christopher Wren
Christopher Wren
Sir Christopher Wren FRS is one of the most highly acclaimed English architects in history.He used to be accorded responsibility for rebuilding 51 churches in the City of London after the Great Fire in 1666, including his masterpiece, St. Paul's Cathedral, on Ludgate Hill, completed in 1710...

 (1632–1723), Thomas Telford
Thomas Telford
Thomas Telford FRS, FRSE was a Scottish civil engineer, architect and stonemason, and a noted road, bridge and canal builder.-Early career:...

 (1757–1834) and Isambard Kingdom Brunel
Isambard Kingdom Brunel
Isambard Kingdom Brunel, FRS , was a British civil engineer who built bridges and dockyards including the construction of the first major British railway, the Great Western Railway; a series of steamships, including the first propeller-driven transatlantic steamship; and numerous important bridges...

 (1806–1859). It was in the 1950s that organizations started to systematically apply project management tools and techniques to complex engineering projects.
As a discipline, Project Management developed from several fields of application including civil construction, engineering, and heavy defense
Defense (military)
Defense has several uses in the sphere of military application.Personal defense implies measures taken by individual soldiers in protecting themselves whether by use of protective materials such as armor, or field construction of trenches or a bunker, or by using weapons that prevent the enemy...

 activity. Two forefathers of project management are Henry Gantt
Henry Gantt
Henry Laurence Gantt, A.B., M.E. was an American mechanical engineer and management consultant who is most famous for developing the Gantt chart in the 1910s....

, called the father of planning and control techniques, who is famous for his use of the Gantt chart
Gantt chart
A Gantt chart is a type of bar chart that illustrates a project schedule. Gantt charts illustrate the start and finish dates of the terminal elements and summary elements of a project. Terminal elements and summary elements comprise the work breakdown structure of the project. Some Gantt charts...

 as a project management tool; and Henri Fayol
Henri Fayol
Henri Fayol was a French mining engineer and director of mines who developed a general theory of business administration. He and his colleagues developed this theory independently of scientific management but roughly contemporaneously...

 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
Frederick Winslow Taylor
Frederick Winslow Taylor was an American mechanical engineer who sought to improve industrial efficiency. He is regarded as the father of scientific management and was one of the first management consultants...

's theories of scientific management
Scientific management
Scientific management, also called Taylorism, was a theory of management that analyzed and synthesized workflows. Its main objective was improving economic efficiency, especially labor productivity. It was one of the earliest attempts to apply science to the engineering of processes and to management...

. His work is the forerunner to modern project management tools including work breakdown structure
Work breakdown structure
A work breakdown structure , in project management and systems engineering, is a deliverable oriented decomposition of a project into smaller components. It defines and groups a project's discrete work elements in a way that helps organize and define the total work scope of the project.A work...

 (WBS) and resource allocation
Resource allocation
Resource allocation is used to assign the available resources in an economic way. It is part of resource management. In project management, resource allocation is the scheduling of activities and the resources required by those activities while taking into consideration both the resource...

.

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 Chart
Gantt chart
A Gantt chart is a type of bar chart that illustrates a project schedule. Gantt charts illustrate the start and finish dates of the terminal elements and summary elements of a project. Terminal elements and summary elements comprise the work breakdown structure of the project. Some Gantt charts...

s, and informal techniques and tools. At that time, two mathematical project-scheduling models were developed. The "Critical Path Method
Critical path method
The critical path method is an algorithm for scheduling a set of project activities. It is an important tool for effective project management.-History:...

" (CPM) was developed as a joint venture between DuPont Corporation
DuPont
E. I. du Pont de Nemours and Company , commonly referred to as DuPont, is an American chemical company that was founded in July 1802 as a gunpowder mill by Eleuthère Irénée du Pont. DuPont was the world's third largest chemical company based on market capitalization and ninth based on revenue in 2009...

 and Remington Rand Corporation
Remington Rand
Remington Rand was an early American business machines manufacturer, best known originally as a typewriter manufacturer and in a later incarnation as the manufacturer of the UNIVAC line of mainframe computers but with antecedents in Remington Arms in the early nineteenth century. For a time, the...

 for managing plant maintenance projects. And the "Program Evaluation and Review Technique
Program Evaluation and Review Technique
The Program ' Evaluation and Review Technique, commonly abbreviated PERT, is a statistical tool, used in project management, that is designed to analyze and represent the tasks involved in completing a given project...

" or PERT, was developed by Booz Allen Hamilton
Booz Allen Hamilton
Booz Allen Hamilton Inc. , or more commonly Booz Allen, is an American public consulting firm headquartered in McLean, Fairfax County, Virginia, with 80 other offices throughout the United States. Ralph Shrader is its Chairman and Chief Executive Officer. The firm was founded by Edwin Booz in...

 as part of the United States Navy
United States Navy
The United States Navy is the naval warfare service branch of the United States Armed Forces and one of the seven uniformed services of the United States. The U.S. Navy is the largest in the world; its battle fleet tonnage is greater than that of the next 13 largest navies combined. The U.S...

's (in conjunction with the Lockheed Corporation
Lockheed Corporation
The Lockheed Corporation was an American aerospace company. Lockheed was founded in 1912 and later merged with Martin Marietta to form Lockheed Martin in 1995.-Origins:...

) Polaris missile submarine program; These mathematical techniques quickly spread into many private enterprises.
At the same time, as project-scheduling models were being developed, technology for project cost estimating, cost management, and engineering economics was evolving, with pioneering work by Hans Lang and others. In 1956, the American Association of Cost Engineers (now AACE International
AACE International
AACE International was founded in 1956 by 59 cost estimators and cost engineers during the organizational meeting of the American Association of Cost Engineering at the University of New Hampshire in Durham, New Hampshire. AACE International Headquarters is located in Morgantown, West Virginia, USA...

; the Association for the Advancement of Cost Engineering
Cost engineering
Cost engineering is an area of engineering practice concerned with the "application of scientific principles and techniques to problems of cost estimating, cost control, business planning and management science, profitability analysis, project management, and planning and scheduling."- Overview...

) 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
Total cost management
Total cost management is the name given by AACE International to a process for applying the skills and knowledge of cost engineering. It is also the first integrated process or methodology for portfolio, program and project management. AACE first introduced the concept in the 1990s and published...

 Framework).

The International Project Management Association
International Project Management Association
The International Project Management Association is a non-profit, Swiss registered organization for the promotion of project management internationally...

 (IPMA) was founded in Europe in 1967, as a federation of several national project management associations. IPMA maintains its federal structure today and now includes member associations on every continent except Antarctica. IPMA offers a Four Level Certification program based on the IPMA Competence Baseline (ICB). The ICB covers technical competences, contextual competences, and behavioral competences.

In 1969, the Project Management Institute
Project Management Institute
The Project Management Institute is a not-for-profit professional organization for the project management profession with the purpose of advancing project management.- Overview :...

 (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." PMI also offers multiple certifications.

Approaches

There are a number of approaches to managing project activities including agile
Agile Project Management
Agile Project Management: Creating Innovative Products by Jim Highsmith discusses the management of projects using the agile software development methodology. The book has been recommended by different reviewers....

, interactive, incremental, and phased approaches.

Regardless of the methodology employed, careful consideration must be given to the overall project objectives, timeline, and cost, as well as 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", five developmental components of a project can be distinguished (four stages plus control):
  • initiation;
  • planning
    Project planning
    Project planning is part of project management, which relates to the use of schedules such as Gantt charts to plan and subsequently report progress within the project environment....

     and design;
  • execution and construction;
  • monitoring and controlling systems;
  • completion.


Not all the projects will visit every stage as projects can be terminated before they reach completion. Some projects do not follow a structured planning and/or monitoring stages. Some projects will go through steps 2, 3 and 4 multiple times.

Many industries use variations on these project stages. For example, when working on a brick and mortar design and construction, projects will typically progress through stages like Pre-Planning, Conceptual Design, Schematic Design, Design Development, Construction Drawings (or Contract Documents), and Construction Administration. In software development
Software development
Software development is the development of a software product...

, this approach is often known as the waterfall model
Waterfall model
The waterfall model is a sequential design process, often used in software development processes, in which progress is seen as flowing steadily downwards through the phases of Conception, Initiation, Analysis, Design, Construction, Testing, Production/Implementation and Maintenance.The waterfall...

, i.e., one series of tasks after another in linear sequence. In software development many organizations have adapted the Rational Unified Process
Rational Unified Process
The Rational Unified Process is an iterative software development process framework created by the Rational Software Corporation, a division of IBM since 2003...

 (RUP) to fit this methodology, although RUP does not require or explicitly recommend this practice. Waterfall development works well for small, well defined projects, but often fails in larger projects of undefined and ambiguous nature. The Cone of Uncertainty
Cone of Uncertainty
In project management, the Cone of Uncertainty describes the evolution of the amount of uncertainty during a project. At the beginning of a project, comparatively little is known about the product or work results, and so estimates are subject to large uncertainty...

 explains some of this as the planning made on the initial phase of the project suffers from a high degree of uncertainty. This becomes especially true as software development is often the realization of a new or novel product. In projects where requirements have not been finalized and can change, requirements management
Requirements management
Requirements management is the process of documenting, analyzing, tracing, prioritizing and agreeing on requirements and then controlling change and communicating to relevant stakeholders. It is a continuous process throughout a project...

 is used to develop an accurate and complete definition of the behavior of software that can serve as the basis for software development. While the terms may differ from industry to industry, the actual stages typically follow common steps to problem solving
Problem solving
Problem solving is a mental process and is part of the larger problem process that includes problem finding and problem shaping. Consideredthe most complex of all intellectual functions, problem solving has been defined as higher-order cognitive process that requires the modulation and control of...

—"defining the problem, weighing options, choosing a path, implementation and evaluation."

Critical chain project management

Critical chain project management (CCPM) is a method of planning and managing projects that puts more emphasis on the resources (physical and human) needed in order to execute project tasks. The most complex part involves engineering professionals of different fields (Civil, Electrical, Mechanical etc.) working together. It is an application of the Theory of Constraints
Theory of Constraints
The theory of constraints adopts the common idiom "A chain is no stronger than its weakest link" as a new management paradigm. This means that processes, organizations, etc., are vulnerable because the weakest person or part can always damage or break them or at least adversely affect the...

 (TOC) to projects. The goal is to increase the rate of throughput (or completion rates) of projects in an organization. Applying the first three of the five focusing steps of TOC, the system constraint for all projects is identified as are the resources. To exploit the constraint, tasks on the critical chain are given priority over all other activities. Finally, projects are planned and managed to ensure that the resources are ready when the critical chain tasks must start, subordinating all other resources to the critical chain.

Regardless of project type, the project plan should undergo Resource leveling
Resource Leveling
Resource leveling is a project management technique used to examine unbalanced use of resources over time, and for resolving over-allocations or conflicts....

, and the longest sequence of resource-constrained tasks should be identified as the critical chain. In multi-project environments, resource leveling should be performed across projects. However, it is often enough to identify (or simply select) a single "drum" resource—a resource that acts as a constraint across projects—and stagger projects based on the availability of that single resource.

Extreme project management

In critical studies of project management it has been noted that several 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 currently 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 Agile Project Management
Agile Project Management
Agile Project Management: Creating Innovative Products by Jim Highsmith discusses the management of projects using the agile software development methodology. The book has been recommended by different reviewers....

 methods including Extreme Programming
Extreme Programming
Extreme programming is a software development methodology which is intended to improve software quality and responsiveness to changing customer requirements...

 for software development and Scrum techniques.

The generalization of Extreme Programming to other kinds of projects is extreme project management
Extreme project management
Extreme project management refers to a method of managing very complex and very uncertain projects.Extreme project management differs from traditional project management mainly in its open, elastic and undeterministic approach. The main focus of XPM is on the human side of project management...

, which may be used in combination with the process modeling
Process modeling
The term process model is used in various contexts. For example, in business process modeling the enterprise process model is often referred to as the business process model. Process models are core concepts in the discipline of process engineering....

 and management principles of human interaction management
Human interaction management
Human Interaction Management is a set of management principles, patterns and techniques complementary to Business process management...

.

Event chain methodology

Event chain methodology
Event chain methodology
Event chain methodology is an uncertainty modeling and schedule network analysis technique that is focused on identifying and managing events and event chains that affect project schedules...

 is another method that complements critical path method
Critical path method
The critical path method is an algorithm for scheduling a set of project activities. It is an important tool for effective project management.-History:...

 and critical chain
Critical chain
Critical chain project management is a method of planning and managing projects that puts the main emphasis on the resources required to execute project tasks. It was developed by Eliyahu M. Goldratt. This is in contrast to the more traditional critical path and PERT methods, which emphasize task...

 project management methodologies.

Event chain methodology is an uncertainty modeling and schedule network analysis technique that is focused on identifying and managing events and event chains that affect project schedules. Event chain methodology helps to mitigate the negative impact of psychological heuristics and biases, as well as to allow for easy modeling of uncertainties in the project schedules.
Event chain methodology is based on the following principles.
  • Probabilistic moment of risk: An activity (task) in most real-life processes is not a continuous uniform process. Tasks are affected by external events, which can occur at some point in the middle of the task.
  • Event chains: Events can cause other events, which will create event chains. These event chains can significantly affect the course of the project. Quantitative analysis is used to determine a cumulative effect of these event chains on the project schedule.
  • Critical events or event chains: The single events or the event chains that have the most potential to affect the projects are the “critical events” or “critical chains of events.” They can be determined by the analysis.
  • Project tracking with events: Even if a project is partially completed and data about the project duration, cost, and events occurred is available, it is still possible to refine information about future potential events and helps to forecast future project performance.
  • Event chain visualization: Events and event chains can be visualized using event chain diagrams
    Event Chain Diagrams
    Event chain diagrams are visualizations that show the relationships between events and tasks and how the events affect each other.Event chain diagram are introduced as a part of event chain methodology...

     on a Gantt chart
    Gantt chart
    A Gantt chart is a type of bar chart that illustrates a project schedule. Gantt charts illustrate the start and finish dates of the terminal elements and summary elements of a project. Terminal elements and summary elements comprise the work breakdown structure of the project. Some Gantt charts...

    .

PRINCE2

PRINCE2
PRINCE2
PRojects IN Controlled Environments 2 is a structured project management method endorsed by the UK government as the project management standard for public projects. The methodology encompasses the management, control and organisation of a project...

 is a structured approach to project management, released in 1996 as a generic project management method. It combined the original PROMPT methodology (which evolved into the PRINCE methodology) with IBM's MITP (managing the implementation of the total project) methodology. PRINCE2 provides a method for managing projects within a clearly defined framework. PRINCE2 describes procedures to coordinate people and activities in a project, how to design and supervise the project, and what to do if the project has to be adjusted if it does not develop as planned.

In the method, each process is specified with its key inputs and outputs and with specific goals and activities to be carried out. This allows for automatic control of any deviations from the plan. Divided into manageable stages, the method enables an efficient control of resources. On the basis of close monitoring, the project can be carried out in a controlled and organized way.

PRINCE2 provides a common language for all participants in the project. The various management roles and responsibilities involved in a project are fully described and are adaptable to suit the complexity of the project and skills of the organization.

Process-based management

Also furthering the concept of project control is the incorporation of process-based management
Process-based management
Process-based management is a management approach that governs the mindset and actions in an organization. It is a philosophy of how an organization manages its operations, aligned with and supported by the vision, mission and values of the organization. The process is the basis on which decisions...

. This area has been driven by the use of Maturity models such as the CMMI (capability maturity model integration; see this example of a predecessor) and ISO/IEC15504
ISO 15504
ISO/IEC 15504 Information technology — Process assessment, also known as SPICE , is a set of technical standards documents for the computer software development process and related business management functions...

 (SPICE – software process improvement and capability estimation).

Agile project management

Agile project management
Agile Project Management
Agile Project Management: Creating Innovative Products by Jim Highsmith discusses the management of projects using the agile software development methodology. The book has been recommended by different reviewers....

 approaches based on the principles of human interaction management
Human interaction management
Human Interaction Management is a set of management principles, patterns and techniques complementary to Business process management...

 are founded on a process view of human collaboration. This contrasts sharply with the traditional approach. In the agile software development
Agile software development
Agile software development is a group of software development methodologies based on iterative and incremental development, where requirements and solutions evolve through collaboration between self-organizing, cross-functional teams...

 or flexible product development
Flexible product development
Flexible product development is the ability to make changes in the product being developed or in how it is developed, even relatively late in development, without being too disruptive...

 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.

Processes

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:
  • initiation
  • planning or development
  • production or execution
  • monitoring and controlling
  • closing


In project environments with a significant exploratory element (e.g., research and development
Research and development
The phrase research and development , according to the Organization for Economic Co-operation and Development, refers to "creative work undertaken on a systematic basis in order to increase the stock of knowledge, including knowledge of man, culture and society, and the use of this stock of...

), 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
Stage-Gate model
A stage–gate model, also referred to as a phase–gate process, is a project management technique in which an initiative or project is divided into stages separated by gates. At each gate, the continuation of the process is decided by a manager or a steering committee...

.

Initiating

The initiating 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 initiating stage should include a plan that encompasses the following areas:
  • analyzing the business needs/requirements
    Requirement
    In engineering, a requirement is a singular documented physical and functional need that a particular product or service must be or perform. It is most commonly used in a formal sense in systems engineering, software engineering, or enterprise engineering...

     in measurable goals
  • reviewing of the current operations
    Business operations
    Business operations are those ongoing recurring activities involved in the running of a business for the purpose of producing value for the stakeholders...

  • financial analysis
    Financial analysis
    Financial analysis refers to an assessment of the viability, stability and profitability of a business, sub-business or project....

     of the costs and benefits including a budget
    Budget
    A budget is a financial plan and a list of all planned expenses and revenues. It is a plan for saving, borrowing and spending. A budget is an important concept in microeconomics, which uses a budget line to illustrate the trade-offs between two or more goods...

  • stakeholder analysis
    Stakeholder analysis
    Stakeholder analysis in conflict resolution, project management, and business administration, is the process of identifying the individuals or groups that are likely to affect or be affected by a proposed action, and sorting them according to their impact on the action and the impact the action...

    , including users, and support personnel for the project
  • project charter
    Project charter
    In project management, a project charter or project definition is a statement of the scope, objectives and participants in a project. It provides a preliminary delineation of roles and responsibilities, outlines the project objectives, identifies the main stakeholders, and defines the authority of...

     including costs, tasks, deliverable
    Deliverable
    Deliverable is a term used in project management to describe a tangible or intangible object produced as a result of the project that is intended to be delivered to a customer . A deliverable could be a report, a document, a server upgrade or any other building block of an overall project.A...

    s, and schedule

Planning and design

After the initiation stage, the project is planned to an appropriate level of detail (see example of a flow-chart). 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
Project planning
Project planning is part of project management, which relates to the use of schedules such as Gantt charts to plan and subsequently report progress within the project environment....

 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
New product development
In business and engineering, new product development is the term used to describe the complete process of bringing a new product to market. A product is a set of benefits offered for exchange and can be tangible or intangible...

 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 consists of the processes used to complete the work defined in the project 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 and other frameworks that might be applicable to the type of project at hand.

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 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 control 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

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 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 controlling and project control systems

Project controlling should be established as an independent function in project management. It implements verification and controlling function during the processing of a project in order to reinforce the defined performance and formal goals. The tasks of project controlling are also:
  • the creation of infrastructure for the supply of the right information and its update
  • the establishment of a way to communicate disparities of project parameters
  • the development of project information technology based on an intranet or the determination of a project key performance index system (KPI)
  • divergence analyses and generation of proposals for potential project regulations
  • the establishment of methods to accomplish an appropriate the project structure, project workflow organization, project control and governance
  • creation of transparency among the project parameters


Fulfillment and implementation of these tasks can be achieved by applying specific methods and instruments of project controlling. The following methods of project controlling can be applied:
  • investment analysis
  • cost–benefit analyses
  • value benefit Analysis
  • expert surveys
  • simulation calculations
  • risk-profile analyses
  • surcharge calculations
  • milestone trend analysis
  • cost trend analysis
  • target/actual-comparison


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
Audit
The general definition of an audit is an evaluation of a person, organization, system, process, enterprise, project or product. The term most commonly refers to audits in accounting, but similar concepts also exist in project management, quality management, and energy conservation.- Accounting...

 fees.

Control systems are needed for cost, risk
Risk
Risk is the potential that a chosen action or activity will lead to a loss . The notion implies that a choice having an influence on the outcome exists . Potential losses themselves may also be called "risks"...

, quality, communication, time, change, procurement, and human resources. In addition, auditors should consider how important the projects are to the financial statements
Financial statements
A financial statement is a formal record of the financial activities of a business, person, or other entity. In British English—including United Kingdom company law—a financial statement is often referred to as an account, although the term financial statement is also used, particularly by...

, 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
    Strategy
    Strategy, a word of military origin, refers to a plan of action designed to achieve a particular goal. In military usage strategy is distinct from tactics, which are concerned with the conduct of an engagement, while strategy is concerned with how different engagements are linked...

     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 managers

A project manager
Project manager
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, architecture, computer networking, telecommunications or software...

 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
Computing
Computing is usually defined as the activity of using and improving computer hardware and software. It is the computer-specific part of information technology...

, and telecommunications. Many other fields in the production engineering and design engineering and heavy industrial 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
Project management triangle
The Project Management Triangle is a model of the constraints of project management. It is often used to illustrate that project management success is measured by the project team's ability to manage the project, so that the expected results are produced while managing time and cost.- Overview...

 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 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
Project management triangle
The Project Management Triangle is a model of the constraints of project management. It is often used to illustrate that project management success is measured by the project team's ability to manage the project, so that the expected results are produced while managing time and cost.- Overview...

", 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.

Work breakdown structure

The work breakdown structure
Work breakdown structure
A work breakdown structure , in project management and systems engineering, is a deliverable oriented decomposition of a project into smaller components. It defines and groups a project's discrete work elements in a way that helps organize and define the total work scope of the project.A work...

 (WBS) is a tree structure
Tree structure
A tree structure is a way of representing the hierarchical nature of a structure in a graphical form. It is named a "tree structure" because the classic representation resembles a tree, even though the chart is generally upside down compared to an actual tree, with the "root" at the top and the...

 that 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
Business process
A business process or business method is a collection of related, structured activities or tasks that produce a specific service or product for a particular customer or customers...

-oriented (see an example in a NASA reporting structure (2001).

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 management framework

The Program (Investment) life cycle integrates the project management and system development life cycles
Systems Development Life Cycle
The systems development life cycle , or software development life cycle in systems engineering, information systems and software engineering, is a process of creating or altering information systems, and the models and methodologies that people use to develop these systems.In software engineering...

 with the activities directly associated with system deployment and operation. By design, system operation management and related activities occur after the project is complete and are not documented within this guide (see an example of an IT project management framework).

For example, see figure, in the US United States Department of Veterans Affairs
United States Department of Veterans Affairs
The United States Department of Veterans Affairs is a government-run military veteran benefit system with Cabinet-level status. It is the United States government’s second largest department, after the United States Department of Defense...

 (VA) the program management life cycle is depicted and describe in the overall VA IT PROJECT MANAGEMENT FRAMEwork to address the integration of OMB Exhibit 300 project (investment) management activities and the overall project budgeting process. The VA IT Project Management Framework diagram illustrates Milestone 4 which occurs following the deployment of a system and the closing of the project. The project closing phase activities at the VA continues through system deployment and into system operation for the purpose of illustrating and describing the system activities the VA considers part of the project. The figure illustrates the actions and associated artifacts of the VA IT Project and Program Management process.

International standards

There have been several attempts to develop project management standards, such as:
  • Capability Maturity Model
    Capability Maturity Model
    The Capability Maturity Model is a development model that was created after study of data collected from organizations that contracted with the U.S. Department of Defense, who funded the research. This model became the foundation from which CMU created the Software Engineering Institute...

     from the Software Engineering Institute
    Software Engineering Institute
    The Carnegie Mellon Software Engineering Institute is a federally funded research and development center headquartered on the campus of Carnegie Mellon University in Pittsburgh, Pennsylvania, United States. SEI also has offices in Arlington, Virginia, and Frankfurt, Germany. The SEI operates...

    .
  • GAPPS, Global Alliance for Project Performance Standards
    Global Alliance for Project Performance Standards
    The Global Alliance for Project Performance Standards is a nonprofit organization who provides independent reference benchmarks for project management standards and assessments...

     – 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
    ISO 9000
    The ISO 9000 family of standards relates to quality management systems and is designed to help organizations ensure they meet the needs of customers and other stakeholders . The standards are published by ISO, the International Organization for Standardization, and available through National...

    , a family of standards for quality management systems, and the ISO 10006
    ISO 10006
    ISO 10006:2003, Quality management systems - Guidelines for quality management in projects, is an international standard developed by the International Organization for Standardization....

    :2003, for Quality management systems and guidelines for quality management in projects.
  • PRINCE2
    PRINCE2
    PRojects IN Controlled Environments 2 is a structured project management method endorsed by the UK government as the project management standard for public projects. The methodology encompasses the management, control and organisation of a project...

    , PRojects IN Controlled Environments.
  • Association for Project Management
    Association for Project Management
    The Association for Project Management is a registered charity in the United Kingdom, which aims to develop and promote the professional disciplines of project management and programme management, through a programme called the "Five Dimensions of Professionalism"...

     Body of Knowledge
  • Team Software Process
    Team Software Process
    In combination with the Personal Software Process , the Team Software Process provides a defined operational process framework that is designed to help teams of managers and engineers organize projects and produce software products that range in size of sizes beyond from small projects of several...

     (TSP) from the Software Engineering Institute
    Software Engineering Institute
    The Carnegie Mellon Software Engineering Institute is a federally funded research and development center headquartered on the campus of Carnegie Mellon University in Pittsburgh, Pennsylvania, United States. SEI also has offices in Arlington, Virginia, and Frankfurt, Germany. The SEI operates...

    .
  • Total Cost Management
    Total cost management
    Total cost management is the name given by AACE International to a process for applying the skills and knowledge of cost engineering. It is also the first integrated process or methodology for portfolio, program and project management. AACE first introduced the concept in the 1990s and published...

     Framework, AACE International's Methodology for Integrated Portfolio, Program and Project Management.
  • V-Model, an original systems development method.
  • The Logical framework approach
    Logical framework approach
    The Logical Framework Approach is a management tool mainly used in the design, monitoring and evaluation of international development projects. It is also widely known as Goal Oriented Project Planning or Objectives Oriented Project Planning .-Background:The Logical Framework Approach was...

    , which is popular in international development organizations.
  • IAPPM, The International Association of Project & Program Management, guide to project auditing and rescuing troubled projects.

Project portfolio management

An increasing number of organizations are using, what is referred to as, project portfolio management
Project Portfolio Management
Project portfolio management is a term used by project managers and project management organizations, , to describe methods for analyzing and collectively managing a group of current or proposed projects based on numerous key characteristics...

 (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.

See also

Lists
  • Glossary of project management
    Glossary of project management
    A glossary of terms relating to Project management.- A :* Agile software development is a set of fundamental principles about how software should be developed based on an agile way of working in contrast to previous heavy handed software development methodologies.* Aggregate planning is an...

  • List of project management software
  • List of project management topics
  • Timeline of project management
    Timeline of project management
    Timeline of project management. There is a general understanding that the history of modern project management started around 1950. Until 1900 projects were generally managed by creative architects and engineers themself, among those for example Christopher Wren, Thomas Telford and Isambard Kingdom...



Related fields
  • Architectural engineering
    Architectural engineering
    Architectural engineering, also known as building engineering, is the application of engineering principles and technology to building design and construction...

  • Construction management
    Construction management
    Construction Project Management is the overall planning, coordination and control of a project from inception to completion aimed at meeting a client’s requirements in order to produce a functionally and financially viable project that will be complete mingement is project management that applies...

  • Cost engineering
    Cost engineering
    Cost engineering is an area of engineering practice concerned with the "application of scientific principles and techniques to problems of cost estimating, cost control, business planning and management science, profitability analysis, project management, and planning and scheduling."- Overview...

  • Facilitation (business)
    Facilitation (business)
    Facilitation in business, organizational development and in consensus decision-making refers to the process of designing and running a successful meeting.Facilitation concerns itself with all the tasks needed to run a productive and impartial meeting...

  • Industrial engineering
    Industrial engineering
    Industrial engineering is a branch of engineering dealing with the optimization of complex processes or systems. It is concerned with the development, improvement, implementation and evaluation of integrated systems of people, money, knowledge, information, equipment, energy, materials, analysis...

  • Project management software
    Project management software
    Project management software is a term covering many types of software, including estimation and planning, scheduling, cost control and budget management, resource allocation, collaboration software, communication, quality management and documentation or administration systems, which are used to...

  • Project portfolio management
    Project Portfolio Management
    Project portfolio management is a term used by project managers and project management organizations, , to describe methods for analyzing and collectively managing a group of current or proposed projects based on numerous key characteristics...

  • Project workforce management
    Project workforce management
    Project workforce management is the practice of combining the coordination of all logistic elements of a project through a single software application . This includes planning and tracking of schedules and mileposts, cost and revenue, resource allocation, as well as overall management of these...

  • Software project management
    Software project management
    Software project management is the art and science of planning and leading software projects. It is a sub-discipline of project management in which software projects are planned, monitored and controlled.-History:...

  • Systems engineering
    Systems engineering
    Systems engineering is an interdisciplinary field of engineering that focuses on how complex engineering projects should be designed and managed over the life cycle of the project. Issues such as logistics, the coordination of different teams, and automatic control of machinery become more...



Related subjects
  • Earned value management
    Earned value management
    Earned value management is a project management technique for measuring project performance and progress in an objective manner. EVM has the ability to combine measurements of scope, schedule, and cost in a single integrated system. Earned Value Management is notable for its ability to provide...

  • Human factors
    Human factors
    Human factors science or human factors technologies is a multidisciplinary field incorporating contributions from psychology, engineering, industrial design, statistics, operations research and anthropometry...

  • Process architecture
    Process architecture
    Dualistic Petri nets are a process-class variant of Petri nets.Like Petri nets in general and many related formalisms and notations, they are used to describe and analyze process architecture.-Process Modeling with dPNs :...

  • Project accounting
    Project accounting
    Project accounting is the practice of creating financial reports specifically designed to track the financial progress of projects, which can then be used by managers to aid project management....

  • Project governance
    Project governance
    Project governance is the management framework within which project decisions are made. Project governance is a critical element of any project since while the accountabilities and responsibilities associated with an organization’s business as usual activities are laid down in their organizational...

  • Program management
    Program management
    Program management or programme management is the process of managing several related projects, often with the intention of improving an organization's performance...

  • Small-scale project management
    Small-scale project management
    Small-scale project management is the specific type of project management of small-scale projects. These projects are characterised by factors such as short duration; low person hours; small team; size of the budget and the balance between the time committed to delivering the project itself and the...

  • Software development process
    Software development process
    A software development process, also known as a software development life cycle , is a structure imposed on the development of a software product. Similar terms include software life cycle and software process. It is often considered a subset of systems development life cycle...

  • Systems Development Life Cycle
    Systems Development Life Cycle
    The systems development life cycle , or software development life cycle in systems engineering, information systems and software engineering, is a process of creating or altering information systems, and the models and methodologies that people use to develop these systems.In software engineering...

    (SDLC)


External links

The source of this article is wikipedia, the free encyclopedia.  The text of this article is licensed under the GFDL.
 
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