Intro to Project Management: Introduction to Project Management - What is Project Management PMI, Definition

What This Is

Project Management (PM) is the application of knowledge, skills, and techniques to execute projects effectively and efficiently. It involves planning, organizing, and controlling resources to achieve specific goals and objectives. A project is a temporary endeavor with a defined start and end, creating a unique product, service, or result. For example, building a new hospital wing is a project that requires careful planning, resource allocation, and execution to deliver a functional and safe facility.

Key Terms & Formulas

• Project Management Body of Knowledge (PMBOK): A guide that outlines the standard practices and techniques for project management.
• Project Charter: A document that formally authorizes a project, outlining its objectives, scope, and stakeholders.
• Project Scope Statement: A document that defines the project's objectives, deliverables, and boundaries.
• Triple Constraint: Scope, Time, Cost – changes to one affect the others (e.g., adding scope increases cost and time).
• Earned Value (EV) = % complete × Budget at Completion (BAC): Measures project progress and performance.
• Cost Performance Index (CPI) = EV ÷ AC: Measures cost efficiency (e.g., CPI = 0.8 means 80% of planned costs are being spent).
• Schedule Performance Index (SPI) = EV ÷ PV: Measures schedule efficiency (e.g., SPI = 1.2 means 20% more work is being completed than planned).
• Project Management Information System (PMIS): A system that supports project management activities, such as tracking progress and resource allocation.
• Stakeholder: An individual or group with a vested interest in the project's outcome.
• Risk: An uncertain event or condition that may impact the project's objectives.

Step-by-Step / Process Flow

1. Identify stakeholders: Determine who will be impacted by the project's outcome.
2. Define project scope: Outline the project's objectives, deliverables, and boundaries.
3. Develop a project charter: Formalize the project's authorization and objectives.
4. Create a project schedule: Outline the project's timeline, milestones, and dependencies.
5. Establish a budget: Determine the project's financial resources and constraints.
6. Monitor and control: Track progress, identify and respond to risks, and make adjustments as needed.

Common Mistakes

• Mistake: Failing to identify and document project scope.
• Correction: Clearly define project scope and obtain stakeholder agreement to avoid scope creep.
• Mistake: Not establishing a project budget.
• Correction: Determine the project's financial resources and constraints to ensure realistic expectations.
• Mistake: Ignoring stakeholder needs and expectations.
• Correction: Engage with stakeholders to understand their needs and expectations, and incorporate them into the project plan.

Exam Tips

• Distinguish between project scope and project schedule: Scope defines what is included, while schedule defines when it will be done.
• Understand the difference between Earned Value and Actual Cost: Earned Value measures progress, while Actual Cost measures expenses.
• Be aware of the importance of stakeholder management: Engage with stakeholders to ensure their needs and expectations are met.

Quick Practice Questions

1. If the CPI is 0.8, is the project under or over budget? Answer: Under budget. Explanation: A CPI of 0.8 means 80% of planned costs are being spent, indicating cost efficiency.
2. What is the purpose of a project charter? Answer: To formally authorize a project and outline its objectives, scope, and stakeholders.
3. What is the difference between a project scope statement and a project schedule? Answer: The project scope statement defines what is included, while the project schedule defines when it will be done.

Last-Minute Cram Sheet

• Project Management Body of Knowledge (PMBOK): A guide that outlines standard practices and techniques for project management.
• Project Charter: Formalizes project authorization and objectives.
• Earned Value (EV) = % complete × BAC: Measures project progress and performance.
• Cost Performance Index (CPI) = EV ÷ AC: Measures cost efficiency.
• Schedule Performance Index (SPI) = EV ÷ PV: Measures schedule efficiency.
• Stakeholder: An individual or group with a vested interest in the project's outcome.
• Risk: An uncertain event or condition that may impact the project's objectives.
• Project Scope Statement: Defines project objectives, deliverables, and boundaries.
• Triple Constraint: Scope, Time, Cost – changes to one affect the others.
• Decomposition breaks down work, not activities – it creates the WBS, not the activity list.
• Contingency Reserve is a buffer for unexpected costs, not a management reserve.
• Quality Assurance is a process to ensure quality, not quality control, which is a process to ensure conformance to requirements.