Exciting new resources for readers:

Dear Readers,

We are excited to announce major updates in this new edition

of the book (fifth edition):

● An entire new chapter giving an overview of Agile concepts

● Improved linkage between project scope and schedule

● Division of the planning chapter into two sections for better

readability and balance

● A new WBS template

● Improved description of RACI matrix for work allocation

If you have any questions or suggestions, feel free to email us

at reachus@vibrantpublishers.com

We hope this book provides you with the most enriching and
fulfilling learning experience.

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SELF-LEARNING MANAGEMENT SERIES

PROJECT
MANAGEMENT
ESSENTIALS
YOU ALWAYS WANTED TO KNOW

FIFTH EDITION

A simple, short, and practical guide on how to

manage all kinds of projects

KALPESH ASHAR
Project Management Essentials
You Always Wanted To Know
Fifth Edition

© 2022, By Vibrant Publishers, USA. All rights reserved. No part of this publication
may be reproduced or distributed in any form or by any means, or stored in a database
or retrieval system, without the prior permission of the publisher.

Paperback ISBN 10: 1-63651-071-X

Paperback ISBN 13: 978-1-63651-071-2

Ebook ISBN 10: 1-63651-072-8

Ebook ISBN 13: 978-1-63651-072-9

Hardback ISBN 10: 1-63651-073-6

Hardback ISBN 13: 978-1-63651-073-6

Library of Congress Control Number: 2012916200

This publication is designed to provide accurate and authoritative information

in regard to the subject matter covered. The Author has made every effort in the
preparation of this book to ensure the accuracy of the information. However,
information in this book is sold without warranty either expressed or implied. The
Author or the Publisher will not be liable for any damages caused or alleged to be
caused either directly or indirectly by this book.

Vibrant Publishers books are available at special quantity discount for sales
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write to bulkorders@vibrantpublishers.com

Please email feedback / corrections (technical, grammatical or spelling) to

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To access the complete catalogue of Vibrant Publishers, visit

www.vibrantpublishers.com
 About the Author
Kalpesh Ashar is a management consultant
and corporate trainer holding an MBA (Dean’s
Award Winner) from SPJIMR, one of Asia’s top
business schools, and an Engineering degree
with honors in Electronics. He has over 24 years
of experience in large organizations and start-
ups in Asia, USA, and Europe.
Kalpesh has worked in several project management roles, like
Senior Project Manager, Delivery Manager, and Program Manager.
He is passionate about writing on management subjects. His
techno-business background gives him a unique position to write
on management topics that are easy to understand for non-MBA
graduates. His books are authored in a simple to understand manner
without unnecessary use of management jargon.
Other contributors
We would like to sincerely thank Brodie Schultz for providing
solutions to all the practice exercises that were unsolved till the third
editions of this book. Brodie is a young aspiring engineer currently
foraying into the areas of marketing, financial management, and
innovative manufacturing processes at Ford Motor Company and
has received his Masters of Business Administration and Bachelor
of Science in Mechanical Engineering. Brodie is also an active board
member for his local Penn State Alumni Association Chapter, an avid
cook, fisherman, and golfer.

We would also like to extend our sincere thanks to Angela J.

Wheaton for providing meaningful insights to improve this edition.
Angela is an enthusiastic project management champion and
instructor with more than 20 years of project management experience
in banking, retail, healthcare and IT. Additionally, she is a Certified
Scrum Master. She has been a PMI certified PMP since 2003. Angela
holds a Master’s Degree in Theology.
 What experts say about this book!
This textbook is an easy-to-read handbook designed to appeal
to a wide audience of learners striving to increase their project
management skills. The book discusses the hard and soft skills of
management and its implication for stakeholders as well as the
topic of communication among various disciplines within a business.
Kalpesh Ashar has put together a comprehensive manual of project
management that can be used by undergraduates, project managers,
team leaders, and plant superintendents alike. The author has tied
together knowledge and understanding from multiple business
disciplines in an understandable format for readers who may not have
advanced degrees.

– Jacqueline R. Jaeger, Adjunct Business Faculty,

MBA, St. Ambrose University, BA, Loras College

Project Management is a skill that we all need in both our work and
home settings. Project Management Essentials takes you through
every step of managing a project, including project initiation,
planning, execution, monitoring and controlling, and finally, project
closure. Filled with easily digestible information and a bonus glossary
of terms, Project Management Essentials is a useful tool for anyone
who is looking to be a better project manager, leader, or learner.

– Marisa Soltz, MLIS,

Reference Supervisor, Canby Public Library
 What experts say about this book!
A quick reference guide for project management
professionals Easy to learn best practices for
effective and successful project delivery Presented in
structured way using a step by step process oriented
approach Key concepts and terminology aligned to
PMI (USA) methodology Ready to use templates enable managing of
projects easier

– Cmde Parambath Prabhakaran,

Adjunct Faculty, Project Management Centre at S.P. Jain
Institute of Management & Research

Thank you for the opportunity to preview this book!

Offering just the right amount of detail balanced with
practical advice, this book is a ‘how to’ resource for
anyone new to project management and an excellent
refresher for the seasoned pro!

– Lindy Williams,
Chief Creative Officer, Talent Dimensions
 What experts say about this book!
Everyone needs project management skills because
everything in this world is essentially a project—
including your career and your life. As a scholar and
practitioner in project management, I found that this
book provides pragmatic knowledge in managing
projects and also prepares you to get a certificate from Project
Management Institute (PMI) if you are interested to become a
professional in project management. You can gain experience by
reading this book and apply more than ten templates to manage
your projects. There are also many well-designed practical examples
to help you have a deep understanding of what you learn. In short, I
recommend this book to people who want to know how to manage
projects and even become a professional in project management.

– Weichu Xu, MBA, Ph.D,

Associate Professor of Business Management,
East Stroudsburg University
This page is intentionally left blank
 Preface
Project Management is a skill that each one of us needs – not just at
work but also at home. We take up several projects in our professional
as well as personal life. Although several project management skills
can be intuitive in nature, others need to be acquired. This will
help one to complete a project successfully and reap the benefits of
doing so.
Project Management Essentials You Always Wanted to Know
provides the set of bare minimum skills that you need in order to
make your projects successful. It is based on the global best practices
of project management as described by the Project Management
Institute (PMI®). The book examines all the dimensions of a project
that need a project manager’s attention. Some of these dimensions—
hard skills, for example—are repeatable, while others, like soft skills,
are context-specific.
This page is intentionally left blank
 Who can benefit from the book
This book can be used by anyone associated with a project, like:

● Project managers or project leaders leading projects

● Team leaders leading small project teams

● Team members working on projects

● Members of the PMO of the organization that guide projects

It can also be beneficial for those interested in the field of project

management, like:

● Students learning project management as part of their

university course

● Anybody else who is interested in learning how projects

should be managed

How to use this book 

The recommended approach to read this book is to start from the
beginning and proceed in sequence, even if you are an experienced
professional in the field of project management. There is a lot of
project management terminology in each chapter that could be new
to you, so  understanding it from the beginning itself will help you
with the latter material. This will ensure that you get a solid base of
the fundamental concepts before you move onto studying complex
theories.
This page is intentionally left blank
 Helpful Templates
The following Templates will help you manage projects more
efficiently:

1. Activity Sequences

2. Cost Budgeting

3. Issues Log

4. Lessons learned

5. Project Charter

6. Project Scope Statement

7. RACI Matrix – RAM

8. Requirements Document

9. Risk Register

10. Stakeholder Register

11. WBS Dictionary

12. WBS

To download these templates, visit www.vibrantpublishers.com and

check the Online Resources section of this book.
This page is intentionally left blank
 Table of Contents

1 Project Management Overview 1

1.1 Project Definition 2
1.2 Reasons for Starting a Project 4
1.3 Project Management 4
1.4 Program & Portfolio 5
1.5 Project Management Office (PMO) 7
1.6 Management by Objectives (MBO) 8
1.7 Constraints 10
1.8 Stakeholders 11
1.9 Organizational Structures 12
1.10 Life Cycles 17
1.11 Project Management Phases 18
Solved Examples 20
Practice Exercises 22
Chapter Summary 23

2 Project Initiation 25
2.1 Project Selection 26
2.2 Project Charter 28
2.3 Identification of Stakeholders 31
Solved Examples 33
Practice Exercises 34
Chapter Summary 35

3 Project Planning – 1 37
3.1 Scope Planning 38
3.2 Time Planning 51
Case Study 70
 Solved Examples 72
Practice Exercises 74
Chapter Summary 75

4 Project Planning – 2 77
4.1 Cost Planning 78
4.2 Quality Planning 82
4.3 Human Resource Planning 85
4.4 Communications Planning 90
4.5 Risk Planning 93
4.6 Procurement Planning 99
4.7 Approval and Kickoff Meeting 104
Case Study 105
Solved Examples 109
Practice Exercises 112
Chapter Summary 113

5 Project Execution 115

5.1 Resource Mobilization 116
5.2 Perform Project Execution 116
5.3 Team Management 117
5.4 Quality Audits and Improvements 123
5.5 Project Communications 126
5.6 Stakeholder Management 126
5.7 Procurement & Contracting 128
Solved Examples 132
Practice Exercises 134
Chapter Summary 135

6 Project Monitoring and Controlling 137

6.1 Monitoring 138
 6.2 Control 139
6.3 Schedule and Cost Tracking 139
6.4 Project Reporting 144
6.5 Quality Control 147
6.6 Risk Monitoring 150
6.7 Gaining Acceptance 151
6.8 Managing Contracts 152
6.9 Handling Changes 153
Case Study 155
Solved Examples 157
Practice Exercises 160
Chapter Summary 161

7 Project Closure 163

7.1 Closing Contracts 164
7.2 Closing Project 165
Solved Examples 166
Practice Exercises 167
Chapter Summary 168

8 Agile Overview 169

8.1 What is Agile? 170
8.2 Need for Agile 171
8.3 Agile Characteristics 174
8.4 Agile Myths 177
8.5 Agile Manifesto 179
8.6 Agile Methodologies 188
Solved Examples 202
Practice Exercises 204
Chapter Summary 205

Glossary 207
This page is intentionally left blank
Chapter 1

Project Management
Overview

I n this chapter, we shall look at the fundamentals of

project management. These will form the pillars of our
understanding of the chapters that come later.

The key learning objectives of this chapter are:

● Understand projects, operations, programs, and

portfolios

● Introduction to project management and PMO

● Understand the various project constraints and the

stakeholders of a project

● Know the different types of project organizational

structures and their impact on a project

● Understand various types of project life cycles and

project management phases applied to a project

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2 Project Management Essentials You Always Wanted To Know

Projects today have become an integral part of our everyday

lives—be it at work or home. All changes in business and in
personal life are brought about by projects.

Although projects have been executed for several centuries

now, it is only much recently that the need to manage projects
using a scientific approach has been felt. This approach ensures
greater chances of success but cannot guarantee it. Much still lies
in how the project manager is able to apply these concepts to a
particular project in the most effective way. Knowing the concepts
in project management and their practical application to real-
life projects is the starting point for any project manager. This
book provides the required knowledge and skills and is written
in a way that should be easy to understand for both experienced
project managers and those with little or no experience in project
management.

1.1 Project Definition

We use the word Project to describe various types of work.

However, all of them have at least two things in common:

1. Start and End / Timeline

2. Unique Outcome

Every project needs to have a planned start date and a planned

end date. A project cannot carry on forever. Every project also
delivers something that is unique or different than the outcome of
any other project. It is possible to deliver similar things but not the
same thing. The output can be a product, service, or a combination
of both.

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Project Management Overview 3

As per Project Management Institute (PMI®), project is defined

as “A temporary endeavor undertaken to create a unique product,
service, or result”.

The above definition of project is actually quite broad in scope

and covers everything that has a timeline and differentiable
outcome. Some examples of projects at work are:

● New product development

● Enhancement in existing product

● Market research

● Feasibility study

● Developing a software application

● Constructing a building

Some examples of projects in personal life are:

● Wedding event management

● Planning a birthday party

● Vacation planning and bookings

● Home improvement

If the above are examples of a project, then what are the

works that are not categorized as projects called? They are called
Operations. They are repetitive in nature where similar activities
are performed on a regular basis. Some examples of operations are:

● Manufacturing unit’s assembly line

● Cleaning a building everyday

● Regular maintenance of servers, and other electrical

equipment

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4 Project Management Essentials You Always Wanted To Know

1.2 Reasons for Starting a Project

Projects are started for one or more reasons. Each project has
certain objectives or goals to achieve. These goals have to be linked
with the organization’s strategic goals and will generally provide
a boost to the company’s top line (revenue) or help in reduction of
costs and, hence, in increasing the bottom line (profit).

Some projects may also be required due to mandatory

regulations, or due to corporate social responsibility (CSR)
activities that every company undertakes these days. Below are
some reasons for starting a project:

● Market / Consumer demand

Example: Project that led to development of Apple’s iPod

● Technology change
Example: Project that led to introduction of 3G mobile
services

● Statutory / legal / social mandate

Example: Project that implemented telecom regulatory
requirements, like Number Portability

● Internal organizational need

Example: Project that implements a new process for
procurement within the company

1.3 Project Management

Every project is started with the intention of meeting certain

objectives. When one applies his/her knowledge, skills and tools

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Project Management Overview 5

and techniques to manage a project in order to achieve these

objectives, it is called Project Management.

Although it is generally felt that only the project manager is

involved in project management, this is usually not true. Every
person working on a project performs activities that help in
achieving the project’s objectives. Hence, every team member
undertakes project management, albeit in lesser proportion than
the project manager. This is because team members also perform
technical work on the project apart from the overall management
of the project.

1.4 Program & Portfolio

Projects are either independent of each other or related to

each other. The ones that are related need to be managed in a
coordinated manner. For example, construction of a building can
be divided into various projects like civil work, plumbing work,
electrical work, interior work etc., as each of these require different
skills. However, all of these projects are closely related and cannot
be managed independently of each other. In such cases, we put
the projects in a program.
A program is a collection of related projects that helps in
managing them in a better way. There is generally a Program
Manager who performs this job of managing the relationship
between projects. The individual projects have their own Project
Manager who is responsible for managing them.

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6 Project Management Essentials You Always Wanted To Know

Figure 1.1

Project 1
Program Inter-Project
Co-or on at
Program Level

Project 2 Project 3

A Portfolio is a collection of all work being done (projects,

programs, operations) with the same strategic objectives. Most
companies designate a person for a large customer account.
Generally, this person is referred to as an Account Manager. All
projects being carried out for that particular customer are clubbed
together and the Account Manager presents them to the customer.
Companies working across numerous geographical regions classify
projects on the basis of regions, like Americas, Europe, Middle East
& Africa, Asia Pacific etc. In such a case, all projects carried out
for a particular geographical area are represented by a Region /
Country Manager for that area. Whatever be the way to define this
engagement, they have one thing in common – strategic objectives
for the portfolio of projects. The generic term for such a person
representing all work done against common strategic objectives is
Portfolio Manager and the projects are said to be part of a portfolio.

The importance of a portfolio comes from the fact that Portfolio

Managers are given targets for the quarter / year by the senior
management of the company. These targets can be based on
revenue increase, market share, profit margin, resource utilization

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Project Management Overview 7

etc. The Portfolio Manager needs to ensure that all the projects
falling under the portfolio are working towards achieving these
objectives. A portfolio may contain programs and even any
operations being carried out apart from projects.

Figure 1.2

Project
Porolio All Work Sharing
Same Strategic
Objec es

Oper ons Program

1.5 Project Management Office (PMO)

Today, most companies that execute several projects have

a centralized department called Project Management Office
(PMO). However, the work performed by the PMO differs. It
generally depends upon the size of the company and whether the
company’s main business deals with projects or operations. Some
companies like auto manufacturers are mainly into the operations
business. Others, like infrastructure companies, are mainly into
the projects business.

Consider a start-up company that undertakes projects. Such a

company may not have a PMO and the few projects are managed
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8 Project Management Essentials You Always Wanted To Know

by the project managers in a way that the individual project

managers think best. As this company matures into a small-sized
company, several projects are carried out and a need is felt to
manage projects in a standardized way. This is when a PMO is
established, generally with a single person running the show. This
person, called the PMO, provides standards, policies, processes
and templates to manage projects and the project managers are
expected to follow these guidelines.

When this company matures into a medium-sized company,

even more projects are performed and new project managers
are hired. Then there is a need to train, coach, and mentor the
project managers and also provide centralized project reporting
(generally referred to as MIS reporting – Management Information
System) to senior management. This additional responsibility is
then taken up by the PMO which now becomes a full-fledged
department.

When the company further grows in size, it may opt for a

more active PMO that takes complete responsibility of managing
all projects in the company. Every time a new project begins,
one person from the PMO department is assigned to it as a
project manager. The PMO head now functions as a manager of
project managers. However, this kind of PMO works best when
the company undertakes projects in the same technical field or
domain so any project can be assigned to any project manager.

1.6 Management by Objectives (MBO)

Companies set targets that they must achieve in the financial

year. These apply directly to the senior management of the

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Project Management Overview 9

company. They then set targets for their sub-ordinates that help
in achieving the company’s target. This continues to the lowest
level in the company where everybody has targets and if all of
them achieve them then the company is able to achieve its targets.
This way of managing a company is known as Management by
Objectives (MBO).

MBO is a top-down approach wherein the targets are first

finalized at the senior management level and are later on refined
as they are assigned to the lower levels of the company. Every
individual gets targets that are based on the company’s targets.
For MBO to work, the senior management has to provide
support and should believe in the targets. The targets have to be
measurable and achievable. Below are the three stages involved
in MBO:

1. Setting of unambiguous and realistic targets / objectives

2. Periodically evaluating if the targets are being met

3. Implementing corrective action, if required, to bring

performance in line with the targets

Companies generally formalize this process in their

performance appraisal system. During the beginning of the year,
targets are set for each and every employee of the company in a
top-down fashion. Later on, the performance is evaluated every
quarter or at the end of half a year to see if the targets are being
met. This is generally done through a mid-term review process
where managers give subjective feedback to subordinates. Any
deviations are corrected by taking appropriate action. Then, at the
end of the year, the employees are appraised objectively to verify
how well they have met the objectives.

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10 Project Management Essentials You Always Wanted To Know

1.7 Constraints

Every project is managed within certain limitations. The project

manager has to keep these factors in mind while planning and
executing the project. These factors are called Constraints. Every
project has six constraints given below:

1. Scope
The project needs to deliver a certain scope and also manage
changes to scope in order to succeed. Scope is the part that
specifies what the project needs to deliver. A project’s scope
is arrived at from the project’s requirements.

2. Time
The project needs to be completed within the stipulated
timeframe.

3. Cost / Budget
The project needs to be done within the stipulated budget.

4. Resources
The work on the project depends a lot on available
resources – human resources, machinery, and raw materials.

5. Quality
The product of the project will only be accepted if it is
within the given range of defined quality parameters.

6. Risk
Several uncertainties could come in the way of successful
project completion, which the project manager needs to
manage.

The above constraints compete against each other and a project

manager needs to juggle between them or perform a trade-off.
For example, if the scope of the project is increased, it could affect
time, cost, resources, quality, and risk of the project. Based on the

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Project Management Overview 11

evaluation of these impacts, a decision will be made on whether

the additional scope should be included or not. Similarly, if the
customer wants an early delivery (changing time constraint), then
it could have an impact on scope, cost, resources, quality, and risk
of the project.

1.8 Stakeholders

Projects are performed in order to deliver certain requirements.

These requirements come from various stakeholders of the
project. Stakeholders are those individuals and organizations that
are impacted by the outcome of the project. Stakeholders also
include those who work on the project, like the project manager
and the project team members. The list below gives examples of
stakeholders:

● Sponsor: One who pays for the project

● Customer: One who takes delivery of the project’s product

● End user: One who uses the product of the project

● Project Manager

● Project Team

● Performing organization: Company executing the project

● Government / statutory bodies: In case any approvals are to

be taken

● Environmental / Social / Political groups: If the project

infringes on the group’s objectives

● Society as a whole: Companies and projects are performed

within our society and hence, have responsibility towards
the society
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12 Project Management Essentials You Always Wanted To Know

Stakeholder Management is extremely important for success of

a project. It includes the following:

● Identifying stakeholders

● Capturing stakeholders’ requirements and expectations

● Managing stakeholders’ influence

● Communicating with stakeholders

All the above responsibilities finally rest with the project

manager, with the first one, identifying stakeholders, being the
most critical. If a project misses out on identifying a stakeholder,
then it may lead to changes required at later stages in the project.
It happens when a stakeholder who was not identified earlier
comes to know that the project would impact him/her and puts
forth their requirements for the project. We often call this Scope
Creep.

1.9 Organizational Structures

Every organization defines its own unique structure. However,

all the structures are based on three underlying structures, using
which every company creates its own unique structure. The
structure largely depends upon the kind of business the company
is into. Manufacturing companies will have a different structure
than consulting companies. Similarly, companies into production
define their structure differently from companies into services. Let
us first look at the three basic blocks with which organizational
structures are formed.

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Project Management Overview 13

Functional Organization
This structure is organized on the basis of functions or
departments. Each department possesses a unique function like
marketing, production, procurement, etc. Each function is led by a
Functional Manager, who is the decision-making authority in the
company. This kind of structure has very few projects that only
run within the function. There are no cross-functional projects.
This structure is depicted in the diagram below:

Figure 1.3

In the above structure, all resources are owned by a

particular function and they perform functional work. Some
resources may also be involved in projects, like Res 2 and Res 3
in production function. They report to the functional manager
of the production function for both their functional work as
well as for their project work. All decision-making authority
lies with the functional manager. Role of a project manager in
this structure is restricted to merely following the instructions
given by the functional manager, who does most of the project

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14 Project Management Essentials You Always Wanted To Know

management in the company. For example, a manufacturing

company has a production department / function. All employees
belonging to this function would undertake production-related
work. If the functional manager wants to investigate ways of
improving their productivity, then some employees would be
picked up and given additional responsibility to make a report
on productivity improvement initiatives as part of the project.
The person designated as the project manager will look after the
day-to-day activities of the project but the functional manager
will take decisions related to the project. The project manager is
merely acting as a person who gets the job done but does not have
authority to take any project-related decisions.

This structure is most suitable for those companies whose main

job is operations, not projects, and who don’t need to perform any
cross-functional projects.

Matrix Organization
This structure is derived from the functional organizational
structure. It allows for cross-functional projects and provides
project managers with greater decision-making authority.

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Project Management Overview 15

It looks similar to the functional organization as shown below:

Figure 1.4

In the above structure there is an additional project shown

that runs across three functions – marketing, production, and
procurement. The resources working in such projects would
now have to report to multiple bosses – their functional manager
and the project manager for the project they work in. Hence,
communication in such a structure might be complex.
Most of the decision-making powers in this structure rest
with the functional manager or project manager. In cases where
the project manager does not have much decision-making
authority, they are referred to as project co-ordinators or project
expeditors instead of project managers. For example, consider
an auto manufacturing company. Although their main business
is to manufacture cars, they need to initiate projects for making
improvement to existing car models or to conceptualize a new
car model. Such projects would need involvement from various

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16 Project Management Essentials You Always Wanted To Know

functions, like marketing, R&D, production, finance, etc. In

such a case a cross-functional project would be initiated and the
organizational structure would be a matrix. It is then up to the
company to decide how much authority is to be given to the
project managers.

Companies who do not have projects as their main business

but need to often run cross-functional projects, or those who need
to build capability in certain functional areas, would prefer this
kind of organizational structure.

Projectized Organization
This structure contains only projects within the company.
There are no functions. Hence, there are no functional manager;
only project managers. All resources work on projects and report
to the project manager as shown below:

Figure 1.5

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Project Management Overview 17

As there are no functions, this structure has project-specific

resources and capability-building could become more difficult.
This is because there are “islands” of knowledge. Once a project
has been completed, the project resources are either absorbed in
other projects or are released from the company as they are not
owned by any function. This is termed as “no home”. Project
managers have complete authority to take project decisions.
Companies whose main job is to perform projects would prefer
this kind of structure.

In reality, most modern organizations use a combination of

these three organizational structures. Those who are into projects
would not only have most part of the organization projectized
but also maintain some fuctions to build capability or for support,
like finance and HR. Such combinations are termed as Composite
Organizational structures.

1.10 Life Cycles

Every product (or service) has a life cycle. Every project also
has a life cycle. These two life cycles are different. A product
(or service) life cycle has the following stages – Start-up, Rapid
Growth, Maturity and Decline. Every product (or service) is
launched at the start-up phase when the market demand and
knowledge about the product is low. Slowly the demand picks
up as more people know about the product and we reach the
second stage of the life cycle – rapid growth. Then, most of the
people possess the product and there are very few new sales and
a few replacement sales. This is the maturity stage. Finally, due to
innovation or technological advance, the product is replaced by a

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18 Project Management Essentials You Always Wanted To Know

new one and the sales start declining. This life cycle stays the same
for every product or service and is depicted in the graph below:

Figure 1.6

As against a standard product life cycle, projects follow

different life cycles based on the industry and company they are
performed in. For example, the life cycle followed in the software
industry could be – requirements gathering, high-level design,
detailed design, implementation, unit testing, integration testing,
user acceptance testing and go-live. In the construction industry
the project life cycle could be – planning, design, mobilisation,
construction, demobilization and handover. Many times we also
refer to the project life cycle as project phases, and this depends on
the industry.

1.11 Project Management Phases

Every project goes through five project management phases.

It starts with Initiation, followed by Planning, Execution,

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Project Management Overview 19

Monitoring & Control, and Closure. Monitoring & Control occurs

parallel with the other phases and helps monitor the particular
phase and take appropriate control action, called corrective or
preventive action.

Figure 1.7

The phases may not always happen one after the other. There is
a certain degree of overlap between phases. Monitoring & Control
is a phase that starts almost at the beginning of the project and
continues almost till the end of the project. The Execution phase
generally takes the most amount of time and consumes the most
resources, hence utilizing most of the project budget.

The next set of chapters describes the project management

phases one by one along with what happens in each of them. Most
of the text follows the processes described in PMBOK® (Project
Management Body of Knowledge) issued by PMI® (Project
Management Institute). It contains the industry best practices in
project management.
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20 Project Management Essentials You Always Wanted To Know

Solved Examples

1. Which ones of the following is a project?

a. Bulk manufacturing a part of a car

b. Construction of a bridge

c. Filling forms in a bank’s back office

d. Running daily jobs on a computer database

Solution:

b. Construction of a bridge is a project. All others are

operations as they are repetitive in nature.

2. What is the difference between a Project, Program, and a

Portfolio?

Solution:
A Project is a set of interrelated tasks carried out within a
stipulated timeframe to achieve a unique objective. A Program
is a set of interrelated projects. A Portfolio is a set of project,
programs, and operations, all of which are tied to the same
strategic goals.

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Project Management Overview 21

3. Which organizational structure is the most appropriate for a

company that has projects as its main business?

Solution:
Projectized organizational structure is the most appropriate
for a projects company. This is because the project manager
has complete decision-making authority in a project. The
company’s managers will be able to make decisions that are in
the best interests of the project and the company.

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22 Project Management Essentials You Always Wanted To Know

Practice Exercises

1. Which of the following is not a reason for starting a project?

a. Increasing market share

b. Development of a new product

c. Interest of managers of the company

d. Identification of cost saving initiatives

2. Identify key stakeholders from the list below:

a. Customer

b. Sponsor

c. Project Manager of another project in a different program

d. Impacted person with only a minor impact

e. Team Member

f. Government official who does not have much interest or

power to impact the project

3. Describe the activities that happen during the five project

management phases – Initiation, Planning, Execution,
Monitoring & Control, Closure.

4. Which one of the six project constraints is the most

important? Why? Is that true for all projects?

Solutions to the above questions can be downloaded

from the Online Resources section of this book on
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Project Management Overview 23

Chapter Summary

¡ A project has a timeline associated with it, and it creates a

unique outcome. Projects are started with a goal in mind—
to either add a business benefit or to complete mandatory
work.

¡ Program is a collection of interrelated projects. Portfolio

clubs the work that shares the same strategic objectives
together.

¡ Project Management Office (PMO) is a centralized

department that works towards project management
excellence in the organization.

¡ Management By Objectives (MBO) is done by setting

realistic goals, tracking against these, and taking
appropriate preventive and corrective actions if one is off-
track.

¡ Constraints are the limitations that could impact a project.

Projects usually have six constraints – scope, time, cost,
quality, risks, and resources.

¡ Stakeholders are those who are impacted by the outcome

of the project, as well as those who have the ability to
influence the project. Stakeholder Management includes
identification of stakeholders, documenting requirements
and expectations, managing stakeholders’ influence, and
communicating with stakeholders.

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24 Project Management Essentials You Always Wanted To Know

¡ Organizations are divided based on three structures –

functional, matrix, and projectized. Functional
organization is divided based on functions, with intra-
functional projects. Matrix extends the functional
organization structure to include cross-functional projects.
The Projectized organizational structure consists of
projects only.

¡ Product Life-cycle starts with Startup, followed by Rapid

Growth, Maturity, and then Decline. Project Management
Phases in a project are Initiation, Planning, Execution,
Monitoring & Control, and Closure.

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