Functions of project management

Project management involves planning, organizing, and overseeing projects from beginning to end, with the goal of achieving specific objectives within a defined timeline and budget. The following are some of the key functions of project management:

1.Planning: This involves defining the project objectives, scope, timeline, budget, and resource requirements. Project managers develop a project plan that outlines the project’s goals and the steps needed to achieve them.

2.Organizing: Project managers identify the resources required to execute the project, including personnel, equipment, and materials. They also establish a project team and assign roles and responsibilities.

3.Controlling: Project managers monitor the progress of the project against the plan, identify any issues or risks, and take corrective action to keep the project on track.

4.Leading: Project managers provide leadership to the project team, motivating and guiding them to achieve project goals.

5.Communicating: Project managers communicate project progress, risks, and issues to stakeholders, including sponsors, team members, and customers.

6.Risk management: Project managers identify potential risks to the project and develop strategies to mitigate or manage them.

7.Budget management: Project managers are responsible for ensuring that the project stays within budget, and may need to make adjustments to the plan as needed to ensure financial viability.

8.Resource management: Project managers are responsible for managing resources such as personnel, equipment, and materials, to ensure they are used effectively and efficiently.

9.Quality management: Project managers ensure that project deliverables meet the required quality standards and that project outcomes meet customer expectations.

10.Closure: Project managers oversee the final phase of the project, including the delivery of final products or services, documentation of the project, and closure of any outstanding issues or contracts.

 

SMART approach

The SMART approach is a goal-setting framework that is commonly used in business and personal development contexts. It stands for Specific, Measurable, Achievable, Relevant, and Time-bound, and each letter represents a key element of effective goal setting:

Specific: Goals should be clear and well-defined, with a specific outcome or objective in mind. This helps to focus efforts and increase the likelihood of success.

Measurable: Goals should be quantifiable or otherwise measurable, so that progress can be tracked and evaluated over time. This allows for adjustments to be made and helps to maintain motivation.

Achievable: Goals should be challenging but realistic, taking into account available resources, skills, and other factors that may affect the likelihood of success. This helps to avoid setting unrealistic expectations and reduces the risk of failure.

Relevant: Goals should be aligned with broader objectives and priorities, and should support overall strategic plans or personal values. This ensures that efforts are focused on areas that matter and are likely to have a meaningful impact.

Time-bound: Goals should have a specific deadline or timeframe for completion, which helps to create a sense of urgency and motivation. This also helps to track progress and evaluate success.

By following the SMART approach, individuals and organizations can set goals that are more likely to be achieved, and can focus their efforts on areas that are most important and relevant to their broader objectives.

Difference between functional and projectized organizational structure

 

Functional Organizational Structure	Projectized Organizational Structure
Employees are grouped according to functional areas of expertise	Organization is structured around projects
Functional managers are responsible for overseeing the work of employees in their functional areas	Project manager has full authority over project team
Projects are typically managed by a project manager who coordinates the work of multiple functional teams	Project teams are composed of individuals with the necessary skills and expertise to complete the project
Focus is on the efficient and effective functioning of functional areas	Focus is on project outcomes and delivery
Communication channels are primarily vertical, within functional areas	Communication channels are primarily horizontal, within project teams
Resource allocation is based on functional needs	Resource allocation is based on project needs
Decision-making is based on functional priorities and processes	Decision-making is based on project priorities and objectives
Career paths are often based on functional areas of expertise	Career paths may be based on project management and successful project delivery

Overall, the main difference between functional and projectized organizational structures is the emphasis on functional expertise versus project delivery. In a functional structure, the focus is on the efficient and effective functioning of functional areas, while in a projectized structure, the focus is on project outcomes and delivery. This difference is reflected in the reporting structure, communication channels, resource allocation, decision-making processes, and career paths within the organization.

Selection of project management structure

There are several factors that can affect the selection of project management structure, including:

1.Project size: The size of the project can influence the structure selected. Larger projects may require a more complex structure that involves multiple teams or departments.

2.Project duration: The length of the project can also impact the structure chosen. Longer projects may require a more flexible structure that can adapt to changing requirements over time.

3.Project complexity: Projects with high levels of complexity may require a structure that provides more direct oversight and control, such as a project-based organization.

4.Project budget: The budget allocated for the project can influence the structure selected. Limited budgets may require a structure that is more cost-effective, such as a functional organization.

5.Resource availability: The availability of resources, including personnel and equipment, can impact the structure selected. If resources are limited, a more flexible structure may be needed to maximize their use.

6.Organizational culture: The culture and values of the organization may influence the selection of project management structure. For example, if the organization values collaboration and teamwork, a matrix structure may be preferred.

Stakeholder expectations: The expectations of stakeholders, including customers, investors, and other interested parties, can also impact the structure selected. Stakeholders may have specific requirements for the structure that must be taken into account.

Project crashing

Some key points to keep in mind when it comes to project crashing:

1. Identify critical activities:

Before you can decide which activities to crash, you need to identify the critical path through the project. The critical path is the sequence of activities that determines the overall project duration. Any delays in critical activities will delay the completion of the project as a whole.

For example, let's say you're managing a construction project to build a new office building. The critical path might include activities like pouring the foundation, framing the building, and installing the electrical and plumbing systems.

2.Determine crash cost and time savings:

Once you've identified the critical path, you can analyze each activity to determine how much time can be saved by adding resources. This involves calculating the cost of crashing an activity and the corresponding reduction in duration.

For example, let's say you're trying to speed up the construction of the foundation for your new office building. You might find that adding an additional crew to work on the foundation can reduce the duration of the activity from 10 days to 7 days. However, this would come at an additional cost of $5,000.

3.Evaluate benefits and drawbacks: 

After determining the cost and time savings associated with crashing an activity, you need to weigh the benefits against the drawbacks. Crashing an activity can reduce overall project duration and help meet important deadlines, but it can also increase costs and introduce new risks.

For example, crashing the foundation work on your construction project may help you meet an important deadline for the completion of the building. However, it may also result in lower quality work or increase the risk of accidents on the job site if workers are rushed or overworked.

4.Implement crashing plan: 

If you decide to proceed with crashing an activity, you need to implement a plan to add the necessary resources and monitor progress closely to ensure that the activity is completed on time and within budget.

For example, to crash the foundation work on your construction project, you may need to hire additional workers, purchase more equipment, or increase work hours. You would need to closely monitor progress and adjust the plan as needed to ensure that the work is completed on time and within budget.

Overall, project crashing can be an effective technique for accelerating project completion, but it requires careful planning and evaluation of costs and benefits to ensure that it is implemented successfully.

A network diagram

A Network Diagram 

A network diagram is a visual representation of the relationships among project activities, which shows the sequence of activities, their dependencies, and the critical path of the project. It is a useful tool for project management and scheduling, as it helps to identify the order in which activities should be completed, the duration of each activity, and the overall timeline of the project.

The network diagram consists of nodes and arrows. The nodes represent the activities or tasks in the project, while the arrows represent the dependencies or relationships between the activities. The arrows show the flow of work from one activity to another, and they can be of different types, such as finish-to-start, start-to-start, finish-to-finish, or start-to-finish.

Activity on Arrow (AOA)

Activity on Arrow (AOA) is a network diagramming method that represents project activities as arrows, with nodes indicating the start and end points of each activity. The rules for creating an AOA network diagram are as follows:

Activities are represented by arrows, which indicate the dependencies and the flow of work between activities.

1. The start and end points of each activity are represented by nodes, which are drawn as circles or other shapes.
2. Each node is labeled with a unique identifier, which corresponds to the activity that starts or ends at that point.
3. The duration of each activity is represented on the arrow itself, usually in days or weeks.
4. The critical path is identified by finding the longest path through the network diagram, and is shown by highlighting the activities that are on this path.
5. Slack time, which is the amount of time an activity can be delayed without affecting the overall project completion time, is calculated by subtracting the activity duration from the latest start time.
6. Network diagrams can be used to determine the earliest and latest start and finish times for each activity, as well as the total duration of the project.
7. AOA diagrams can be used in conjunction with other project management tools, such as Gantt charts and project schedules, to plan and manage projects effectively.

Overall, the AOA method is a useful tool for project managers to plan and manage complex projects, and provides a clear and visual representation of the project activities and their dependencies. However, AOA diagrams are less commonly used than Activity on Node (AON) diagrams, which represent activities as nodes and arrows, as they can be more complex and difficult to read.

List of common top-down and bottom-up approaches to cost estimation:

Top-Down Approaches:

Differences between top-down and bottom-up approaches to cost estimation:

 

Criteria	Top-Down Approach	Bottom-Up Approach
Focus	Estimates the overall project cost based on high-level information and assumptions	Estimates the cost of individual components or tasks of a project and aggregates them to arrive at the overall project cost
Timing	Used in the early stages of a project when detailed information is not yet available	Used in the later stages of a project when detailed information is available
Basis	Often based on historical data, benchmarking against similar projects, or expert judgment	Based on detailed analysis of specific tasks and components
Accuracy	May not be as accurate as the bottom-up approach	Generally more accurate than the top-down approach
Resource Requirements	Quick and relatively easy to perform	Requires a lot of time and resources
Applicability	Applicable to large projects or those with less details available	Applicable to smaller projects or those with a lot of detailed information available
Cost Breakdown	Provides less detailed information about cost breakdown	Provides detailed information about cost breakdown
Flexibility	May not allow for adjustments to individual components or tasks	Allows for adjustments to individual components or tasks

It's important to note that both approaches have their advantages and disadvantages, and the choice of approach depends on the specific project and available information. Project managers need to carefully consider the pros and cons of each approach and select the one that provides the most accurate estimate given the project's requirements and constraints.

Projectized organizational structure

A projectized organizational 

A projectized organizational structure is a type of organizational structure that is specifically designed to manage and complete projects. In this structure, the organization is divided into project teams that are responsible for executing specific projects. The project team members report directly to the project manager, who is responsible for the overall success of the project.

In a projectized organization, project management is the primary focus, and the organization's resources are allocated based on project needs. This means that the organization is highly adaptable to changing project requirements, and resources can be quickly reallocated from one project to another as needed.

Some key characteristics of a projectized organizational structure include:

1.Project teams are formed around specific projects.

2.Project managers have full authority over project resources.

3.Project teams are highly specialized and focused on project execution.

4.Communication channels are highly streamlined, and communication is focused on project-related issues.

5.Project managers have a high degree of autonomy in decision-making.

The structure is highly adaptable to changing project requirements.

A projectized organization is a type of organizational structure where projects are the dominant form of work and the organization is structured around projects. In a projectized organization, project teams are organized around a specific project, and team members report directly to the project manager. Here is a general structure of a projectized organization:

1.Executive Leadership: The executive leadership team provides strategic direction and oversight for the organization. They define the overall goals and objectives of the organization and ensure that the projects align with the organization's vision and mission.

2.Project Management Office (PMO): The PMO is responsible for managing and coordinating all of the projects within the organization. They provide project management support, best practices, and standards to ensure that projects are delivered on time, within budget, and to the required quality standards.

3.Project Managers: The project managers are responsible for the day-to-day management of individual projects. They are accountable for the successful delivery of their projects, and they manage project schedules, budgets, risks, and resources.

4.Project Teams: The project teams are made up of the individuals assigned to work on a specific project. They report directly to the project manager and work together to complete the project tasks and deliverables.

5.Functional Departments: In a projectized organization, functional departments (e.g. finance, human resources, IT) typically provide support to the project teams. They may provide specialized expertise or services to help the project teams achieve their objectives.

6.Resource Management: Resource management is responsible for managing the allocation of resources (e.g. staff, equipment, materials) across all of the projects within the organization. They ensure that the resources are used effectively and efficiently to support the project goals and objectives.

Overall, the structure of a projectized organization is designed to support the successful delivery of projects by providing a dedicated project management framework, clear project roles and responsibilities, and a focus on project outcomes.

                     

   

Advantages and disadvantages of a projectized organization structure:

Advantages:

Efficient Project Delivery: The projectized structure focuses exclusively on project delivery, which allows for streamlined decision-making, clear project roles and responsibilities, and efficient allocation of resources.

Strong Team Cohesion: Since team members report directly to the project manager, there is a high degree of team cohesion and accountability within the project team. This can lead to better collaboration and a shared sense of purpose.

Improved Knowledge Sharing: Project teams in a projectized organization tend to have specialized knowledge and expertise, which can be shared across projects to improve overall project performance.

Clear Project Metrics: The projectized structure typically emphasizes measurable project outcomes and clear project metrics, which can help project managers make better decisions and track progress more effectively.

Disadvantages:

Limited Functional Expertise: Because the focus is on project delivery, functional departments may have limited expertise in their respective areas. This can create challenges when specialized expertise is required to support project activities.

Lack of Flexibility: The projectized structure can be less flexible than other organizational structures, particularly when it comes to changing project priorities or adapting to changing market conditions.

High Costs: The projectized structure requires dedicated project resources, which can be expensive. This can create challenges in terms of managing budgets and justifying project costs.

Resource Constraints: In a projectized structure, resources are often dedicated to specific projects, which can create resource constraints when competing projects require the same resources.

Overall, a projectized structure can be effective for organizations that have a strong focus on project delivery and can justify the associated costs. However, it may not be the best choice for organizations that require a high degree of flexibility or have limited resources.