Process Flow
- Use SOW, Business Case and Contracts as input to Create Project Charter process to create Project Charter
- Use Project Charter as input to Identify Stakeholder process which uses W.O.T. analysis, S.M.A.R.T. goals, stakeholder power/interest, power/influence matrix techniques to create Stakeholders Register and Stake Holder Management Plan
Key Points
- Project Charter is issued by project sponsor
- Project Charter is important for PM as it officially starts a project
- Stakeholders can be positive and negative recipients
- High IRR and High NPV is better for project selection and Low Payback period is best
- Project process with defined start and end date and produce unique product or system
- Operation is ongoing tasks like running batch process
- Project is approved, or authorized in the charter
- Project Manager is a facilitator and doesn’t do project work
- Different managers:
| Managers | Functions |
| Portfolio manager | defines strategy |
| Operational Manager | keeps light running |
| PMO | provides standards and best practice documents |
| Product Manager | Product management provides content |
| Program Manager | Manages group of related projects |
| Functional Manager | Marketing Manager, Sales Manager, IT manager |
- Different types of Organizations :
Functional Weak Matrix Balanced Matrix High Matrix Projectized
PM authority on <———Weak ————————Balanced —————– Strong————>
resources
PM control over <———Weak ————————Balanced —————– Strong————>
Budget
- Different costs:
| Name | Description |
| Opportunity Cost | Cost of not doing a project from the available list |
| Sunk Cost | Amount already invested or used in the project |
| Salvage Cost | Expected value of the asset at the end of its life |
| Direct Cost | Cost for direct product or service like labor |
| Indirect cost | Indirect cost like insurance |