1. Integration Management,
Integration is the management of the overall project scope in the context of schedules, budgets, risk and contracts towards establishing agreed baselines for supplier and client requirements.
Integration involves the management of the other eight areas of project management, and making trade-offs among competing objectives and alternatives in order to meet or exceed project objectives throughout the project life cycle, taking into consideration the often conflicting influences of the internal and external environments.
2. Scope Management,
A fundamental aspect of effective project planning, and therefore of effective project management, is the process of defining the scope of the project and of breaking this into manageable pieces of work (work packages).
This is achieved by first producing a scope definition, then breaking the project scope into a product oriented hierarchy, i.e. a Product Breakdown Structure (PBS) also known as a "Program" or "Campaign", and finally into a task oriented hierarchy, i.e. a Work Breakdown Structure (WBS).
The Scope definition describes what the product deliverables of the project are.
The PBS is a product oriented hierarchical breakdown of the project into its constituent items without the tasks/work packaging being developed.
The WBS is a task oriented detailed breakdown, which defines the work packages and tasks at the level defined in the networks and schedules.
The WBS initiates the development of the Organizational Breakdown Structure (OBS), and the Cost Breakdown Structure (CBS).
It also provides the foundation for generating activity networks and schedules, and determining the Earned Value "Return on Investment" for the Project.
3. Time Management,
The effective planning and accomplishment of activities' timing and phasing is a central skill of project management.
Time scheduling/phasing comprises specifying the processes required to ensure timely completion of the project.
Scheduling comprises activity definition, activity sequencing, activity duration estimating, schedule development, and schedule control.
Phasing is more concerned with the strategic pacing of the project and the overlapping between different activities or blocks of activities. (For example, a decision on whether or not to use Rapid Application Development prototyping, Concurrent Engineering, Simultaneous Design, Fast Track, Phased Hand-over, etc.)
The phasing and overlapping of activities is also an important aspect of the project management team's skills. Properly done, it can have a major impact on the performance of the project.
Activities are normally scheduled using techniques such as Bar charts (Gantt Charts, Milestone Charts) or networks (PERT, CPM, CPA, Precedence, Activity-on-Arrow, Activity-on-Node).
The concept of critical path is central to network scheduling.
Resource Management also significantly affects this item.
4. Cost Management,
The completion of the project within its budget is a central objective of project management.
Budgeting and Cost Management is the process of estimating the proper cost that should reasonably be expected to be incurred against a clear baseline, understanding how and why actual costs occur, and ensuring that the necessary response is taken promptly to ensure that actual costs come under budget.
Successful cost management on a project is forward-looking.
Typical information needed for cost management includes:
- Budgeting (including estimating), generally based on work breakdown structure or chart of accounts;
- Obtaining and recording commitments/accruals;
- Measuring work accomplished and value earned/valuation of work, including treatment of changes (change control) and claims;
- Cash flow;
- Forecasting out-sourced costs;
- Analyzing variance of the trend in forecast versus previous out-turn cost.
5. Quality Management,
Quality refers, obviously, to more than just technical performance.
Quality applies to everything in Project Management: Commercial, Organization, People, Control, Technical, etc.
Quality Management covers Quality Planning, Quality Control and Quality Assurance.
Quality Planning is the preparation, checking, and recording of actions that are necessary to achieve the standard of product or service that the customer requires.
Quality Control is the set of processes for planning and monitoring the project to ensure that quality is being achieved.
Quality Assurance is the set of processes and procedures required to demonstrate that the work has been performed according to the quality plan.
Total Quality Management is a much broader and more ambitious system (philosophy) for identifying what the client really wants, defining the organization's mission, measuring throughout the whole process how well performance meets the required standards, and involving the total organization in the implementation of a deliberate policy of continuous improvement.
6. Resource Management,
Planning, allocating and scheduling resources to tasks, generally including people, machine (plant and equipment), money, and materials, is another fundamental requirement of effective project planning and management.
Resource Management typically covers resource allocation and its impact on schedules and budgets, and resource levelling and smoothing.
7. Communication Management,
Just as the project life cycle is fundamental to structuring the process of project management, communication is fundamental to making it work.
Effective communication with all stakeholders is absolutely mandatory to project success.
Hence a communications plan is often developed at the start of a project.
Communications can cover several media: oral, body language, written (textural, numerical, graphic), paper, electronic, etc.
The content and the manner of delivery are perhaps more important however than simply the medium.
Formal meetings are one important aspect of communication but can, if not managed properly, result in the waste of time, money and energy.
Certain meetings play a structural or process role in projects, for example, the inaugural meeting which is required at project launch.
Other meetings include design reviews, periodic progress reviews, etc.
Information Management is also extremely important to effective communications
8. Risk Management,
Risks are present in all projects, whatever their size or complexity and whatever industry or business sector.
Risks exist as a consequence of uncertainty.
Risk Management covers the process of identification, assessment, allocation, and management of all project risks.
In project management terms, risks are those factors that may cause a failure to meet the project's objectives.
Project risk management recognizes a formal approach to the process as opposed to an intuitive approach.
Risks, once identified, assessed and allocated are managed in order to minimize or completely mitigate their effect on a project.
This is achieved by developing either immediate or contingency responses to the identified risks.
Such responses may remove, reduce, avoid, transfer, or accept the risks or lead to the abandonment of the project.
While risks are, according to the dictionary, associated with the possibility of failure, they may also be associated with opportunities.
The usual definition of a risk in project management is that the risk is the product of the probability of an event occurring times its impact if it did.
Risk management balances the upside opportunities with downside risks, doing so in an open, clear and formal manner.
9. Project Procurement Management.
Procurement is the process of acquiring new services or products.
It covers the financial appraisal of the options available, development of the procurement or acquisition strategy, preparation of contract documentation, selection and acquisition of suppliers, pricing, purchasing, and administration of contracts.
It also extends to storage, logistics, inspection, expediting, transportation, and handling of materials and supplies.
Procurement covers all members of the supply chain.
Operations and maintenance, for example, need to be supported through a supply chain management process.
For many projects, procurement represents the highest percentage of expenditure.
It is essential that value for money is realised.
All major procurements are subject to careful appraisal and management.
As with the business case, all feasible options are considered.
A procurement strategy is prepared very early in the project.
It is often a function of the state of the project definition, and of the supplier market.
The procurement strategy includes potential sources of supply, terms and types of contract/procurement, conditions of contract, the type of pricing, and method of supplier selection.