From Wikipedia, the free encyclopedia
Project management is the discipline of defining and achieving targets while optimizing the use of resources (time, money, people, materials, energy, space, etc) over the course of a project (a set of activities of finite duration).
Project Management is quite often the province and responsibility of an individual project manager. This individual seldom participates directly in the activities that produce the end result, but rather strives to maintain the progress and productive mutual interaction of various parties in such a way that overall risk of failure is reduced.
In contrast to on-going, functional work, a project is "a temporary endeavor undertaken to create a unique product or service." The duration of a project is the time from its start to its completion, which can take days, weeks, months or even years. Typical projects include the engineering and construction of various public or consumer products, including buildings, vehicles, electronic devices, and computer software.
In recent years, the Project Management discipline has been applied to Marketing and Advertising endeavors as they become more technologically oriented and multiple communication channels become part of the marketing mix.
Project Management activities
Project Management is composed of several different types of activities such as:
- Planning the work
- Assessing risk
- Estimating resources
- Organizing the work
- Acquiring human and material resources
- Assigning tasks
- Directing activities
- Controlling project execution
- Reporting progress
- Analyzing the results based on the facts achieved
Project control variables
Project Management tries to gain control over five variables:
- time - The amount of time required to complete the project. Typically broken down for analytical purposes into the time required to complete the components of the project, which is then further broken down into the time required to complete each task contributing to the completion of each component.
- cost - Calculated from the time variable. Cost to develop an internal project is time multiplied by the cost of the team members involved. When hiring an independent consultant for a project, cost will typically be determined by the consultant or firm's hourly rate multiplied by an estimated time to complete.
- quality - The amount of time put into individual tasks determines the overall quality of the project. Some tasks may require a given amount of time to complete adequately, but given more time could be completed exceptionally. Over the course of a large project, quality can have a significant impact on time and cost (or vice versa).
- scope - Requirements specified for the end result. The overall definition of what the project is supposed to accomplish, and a specific description of what the end result should be or accomplish.
- risk - Potential points of failure. Most risks or potential failures can be overcome or resolved, given enough time and resources.
Three of these variables can be given by external or internal customers. The value(s) of the remaining variable(s) is/are then set by project management, ideally based on solid estimation techniques. The final values have to be agreed upon in a negotiation process between project management and the customer. Usually, the values in terms of time, cost, quality and scope are contracted.
History of Project Management
Project Management was used as an isolated concept before the Sputnik crisis of the Cold War. After this crisis, the United States Department of Defense needed to speed up the military project process. New tools (models) for achieving this goal were invented. In 1958 they invented the Program Evaluation and Review Technique or PERT, as part of the Polaris missile submarine program. At the same time, the DuPont corporation invented a similar model called CPM, critical path method. PERT was later extended with a work breakdown structure or WBS. The process flow and structure of the military undertakings quickly spread into many private enterprises.
There are several approaches that can be taken to managing project activities including agile, iterative, incremental, and phased approaches.
A traditional phased approach identifies a sequence of steps to be completed. This contrasts with the agile software development or flexible product development approach at the other end of the spectrum, in which 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.
Regardless of the approach employed, careful consideration needs to be given to clarity surrounding project objectives, goals, and importantly, the roles and responsibilities of all participants and stakeholders.
The traditional approach
In the traditional approach, we can distinguish 5 components of a project (4 stages plus control) in the development of a project:
- project initiation (Kick-off)
- project planning
- project production or execution
- project monitoring or controlling
- project completion
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. 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.
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.
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) are far more successful.
Agile project management approaches based on the principles of human interaction management are founded on a process view of HUMAN collaboration..
Auditors may be involved in projects to varying degrees, from a post-implementation review to thorough involvement of each step in the process. Each project should be assessed for risk to determine the appropriate level of review needed. In addition, auditors should consider how important the projects are to the financial statements, the degree of reliance on controls, and the existence of manual controls.
Process risks include:
- Lack of a formal development process
- Unclear strategy
- Lack of concrete standards
- Poor management control
Application risks include:
- High complexity of the project
- Larger projects
- Lack of end-user involvement
- Inadequate personnel
Auditor Review and Recommendations
Auditors should review the development process and procedures, even if they are not involved in a particular project. This review should evaluate the procedures and 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.
In making recommendations, auditors should consider the cost of implementing controls and alternatives such as manual controls. Recommendations should be forwarded to the development team leader, management, or the audit committee depending on the business. Clarifying the cost to the business if the control is not implemented in terms of errors, fixes, and additional audit fees.
Auditing Formal Software Development Processes
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:
- An information systems strategy to align development with the organization’s broader objectives
- Standards for new systems
- Project management policies for timing and budgeting
- Procedures describing the process
Auditing The System Development Process
Regardless of the methodology used, the development process should have the same major steps: planning, development, implementation, and maintenance.
The planning phase 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 auditor’s key role in this phase is to understand the business environment and to make sure that all necessary controls are incorporated into the design. Any deficiencies should be reported and a recommendation should be made to fix them.
In this planning stage, auditors look for a cohesive plan that encompasses the following areas:
- Study analyzing the business needs in measurable goals
- Review of the current system
- Conceptual design of the operation of the new system
- Equipment requirements
- Financial analysis of the costs and benefits including a budget
- Select programmers, users, and support personnel for the project
- Project plan including tasks, deliverables, and schedule
After the planning phase, the system is built and tested. Testing is generally performed by a combination of testers and end users. Testing can occur after the product is built or concurrently. Auditors should review the construction and testing procedures and results to ensure that the product will process data accurately, that errors are minimized, and that it meets specifications. Testing verifies these factors:
- The product satisfies the user and business requirements
- Functions as it was designed
- Works with hardware and other software
- Is free of errors
The implementation phase includes:
In software systems, conversion is the transfer of data from an old system to a new system. This process is often difficult and should be tested carefully for errors. Documentation is prepared both for implementers and end users to facilitate their different needs in understanding the system. Training increases user efficiency. From an auditor's perspective, training is also important because it helps users use the software correctly.
In software products, 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 and professional certification
There have been several attempts to develop project management standards, such as:
- ISO 10006:1997, Quality management - Guidelines to quality in project management
- A Guide to the Project Management Body of Knowledge (PMBOK Guide)
- P2M (A guidebook of Project & Program Management for Enterprise Innovation, japanese third-generation project management method)
- PRINCE2 (PRojects IN a Controlled Environment)
- V-Modell (German project management method)
- HERMES (The Swiss general project management method, selected for use in Luxembourg and international organisations)
- ISEB Project Management Syllabus
- Salvage of the Port of Massawa, Eritrea, 1942. The port was a chaotic mess. Access had been blocked with scuttled ships and port facilities had been wrecked. Captain Edward Ellsberg, a US Navy salvage expert, rapidly salvaged scuttled ships for service in the Allied merchant fleets. He also salvaged a large floating dry dock and returned port shops and facilities to operation. Ellsberg had very limited resources. Ellsberg's efforts show that a project oriented expert can accomplish a nearly insurmountable task. Interestingly, Ellsberg had virtually no support staff and few skilled workers. He planned and managed the entire project by himself. Ellsberg, an accomplished author, documented this case in Under the Red Sea Sun (New York: Dodd, Mead & Company, 1946). That is a World War II memoir with a difference.
- Operation Mincemeat, 1943. A highly successful deception operation which confused the German High Command about Allied intentions in the Mediterranian. British Intelligence created a "Major William Martin" by dressing and outfitted a dead body so that it would look like the victim of a plane crash into the ocean. They launched the body from a submarine so that it floated ashore in Spain. The Germans were allowed to examine Major Martin and his effects. They believed the body and the secret documents found with it to be authentic and made troop deployments accordingly. The project is described in more detail in the Wikipedia article on Operation Mincemeat. Ewen Montagu, the officer in charge, wrote a book describing Operation Mincemeat called, The Man Who Never Was (Philadelphia: Lippincott, 1954). In 1956, The Man Who Never Was was made into a movie staring Clifton Webb as Montagu.
- The Great Escape, 1944. The escape from Stalag Luft III in 1944 is documented in The Great Escape (New York: Norton, 1950) by Paul Brickhill. In this case, a large, highly-decentralized organization worked toward the goal of a mass escape over a long period of time. This shows how an ad hoc group can use diverse talents to accomplish a difficult task under very adverse circumstances. This highly dramatic episode lent itself dramatization in the movie, The Great Escape, in 1963. The Longest Tunnel by Alan Burgess is another excellent account of this event.
- Building engineering
- Building construction
- Capability Maturity Model
- Critical chain
- Critical path
- Dependency Structure Matrix
- Earned value management
- Flexible project management
- Functionality, mission and scope creep
- Gantt chart
- Human Interaction Management
- Project accounting
- Program management
- Project management software (List of project management software)
- RACI diagram
- Software project management
- The Mythical Man-Month
- Work Breakdown Structure
- Brooks, Fred (1995). The Mythical Man-Month, 20th Anniversary Edition, Adison Wesley. ISBN 0201835959.
- Project Management Institute (2003). A Guide To The Project Management Body Of Knowledge, 3rd ed., Project Management Institute. ISBN 193069945X.
- Jack R. Meredith, Samuel J. Mantel (2002). Project Management : A Managerial Approach, 5th ed., Wiley. ISBN 0471073237.
- Lewis, James (2002). Fundamentals of Project Management, 2nd ed., American Management Association. ISBN 0814471323.
- Scott Berkun (2005). Art of Project Management, Cambridge, MA: O'Reilly Media. ISBN 0596007868.
- Andrew Stellman, Jennifer Greene (2005). Applied Software Project Management, Cambridge, MA: O'Reilly Media. ISBN 0596009488.
- Heerkens, Gary (2001). Project Management (The Briefcase Book Series), McGraw-Hill. ISBN 0071379525.
- Richard H. Thayer, Edward Yourdon (2000). Software Engineering Project Management, 2nd Ed., Wiley-IEEE Computer Society Press. ISBN 0818680008.
- Harold Kerzner (2003). Project Management: A Systems Approach to Planning, Scheduling, and Controlling, 8th Ed., Wiley. ISBN 0471225770.
- American Academy of Project Management
- Association for the Advancement of Cost Engineering, International
- Effective Project Management & Project Implementation
- International Research Network on Organizing by Projects
- International Project Management Association
- Association for Project Management
- The Project Management Institute
- The Australian Institute of Project Management
- The Institute of Project Management of Ireland
- Business Analyst Resources
- Analyzing the Deliverables Produced in the Software Development Life Cycle, Mitchell H. Levine, Audit Serve Inc. (2000)
- Project Management Research
Open Workbench Open Source Project Scheduling Software