Introduction to Project Management

TABLE OF CONTENTS

CHAPTER 1 - INTRODUCTION

1 INTRODUCTION TO PROJECT MANAGEMENT 3

1.1 WHAT IS PROJECT MANAGEMENT 3

1.2 WE CAN DEFINE PROJECT MANAGEMENT AS FOLLOWS: 3

1.3 UNDERSTANDING PROJECT MANAGEMENT 3

1.4 DEFINING PROJECT SUCCESS 5

1.5 THEREFORE PROJECT SUCCESS CAN BE SUMMARIZED AS FOLLOWS: 5

1.6 WHAT IS A PROJECT? 6

1.7 TEN BASIC QUESTIONS TO PROPERLY DESCRIBE A PROJECT: 6

1.8 SUMMARY 6

2 WORK BREAKDOWN STRUCTURE (WBS) 8

2.1 Introduction 8

2.2 A brief description of a WBS 8

2.3 Why is WBS Important? 10

3 PROJECT CONTROL FUNCTIONS 12

3.1 Introduction 12

3.2 What is Cost Control? 12

3.3 What can be controlled? 12

3.4 Project Controls 13

3.5 Defining Projects 14

3.6 Scope Changes 14

3.7 Planning - Establishing The Control Base 14

3.8 Monitoring - Tracking and Reporting 14

3.9 Trending - Analysis and Forecasting 14

3.10 Escalation 16

3.11 Action - Manage Control Base, Take Corrective Action 16

3.12 Deviations 16

3.13 Project Completion 16

4 INTRODUCTION TO ORACLE APPLICATIONS - PROJECT ACCOUNTING MODULE 17

4.1 ORACLE COSTING AND BILLING Overview 17

4.2 About the Publication Documentation 17

4.3 Brief Tour of ORACLE 17

4.4 ORACLE Users 17

4.5 Applications Overview: Components, Definitions and Relationships 18

4.6 Key Components 19

5 WORK BREAKDOWN STRUCTURE (WBS) 20

5.1 General 20

CHAPTER 1 - INTRODUCTION

1 INTRODUCTION TO PROJECT MANAGEMENT

1.1 WHAT IS PROJECT MANAGEMENT

1.1.1 Project management is a specialised management technique to plan and control projects under a strong single point of responsibility.

1.2 WE CAN DEFINE PROJECT MANAGEMENT AS FOLLOWS:

1.3 UNDERSTANDING PROJECT MANAGEMENT

1.3.1 In order to understand project management, one must begin with the definition of a project. A project can be considered to be any series 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)

1.3.2 Project management, on the other hand, involves project planning and project monitoring and includes such items as:

 Project planning

 Definition of work requirements

 Definition of quantity of work

 Definition of resources needed

 Project monitoring

 Tracking progress

 Comparing actual to predicted

 Analysing impact

 Making adjustments

1.3.3 Successful project management can than be defined as having achieved the project objectives:

 Within time

 Within cost

 At the desired performance/technology level

 While utilising the assigned resources effectively and efficiently

1.3.4 The potential benefits from project management are:

 Identification of function responsibilities to ensure that all activities are accounted for, regardless of personnel turnover

 Minimising the need for continuous reporting

 Identification of time limits for scheduling

 Identification of a methodology for trade-off analysis

 Measurement of accomplishment against plans

 Early identification of problems so that corrective action may follow

 Improved estimating capability for future planning

 Knowing when objectives cannot be met or will be exceeded

1.3.5 Unfortunately, the benefits cannot be achieved without overcoming obstacles such as:

 Project complexity

 Customer's special requirements

 Organisational restructuring

 Project risks

 Changes in technology

 Forward planning and pricing

1.3.6 Project management can mean different things to different people. Quite often, people misunderstand the concept because they have ongoing projects within their company and feel that they are using project management to control these activities. In such a case, the following might be considered an appropriate definition:

1.3.7 Although