PROJECT MANAGEMENT AN OVERVIEW What is a Project?

A project is a temporary process, which has a clearly defined start and end time, a set of tasks, and a budget, that is developed to accomplish a well-defined goal or objective. A project is initiated by a person (or group) who realizes that a specific problem needs resolution. When the problem is defined, an initial concept is developed around potential solutions. Once the project concept is defined, then a complete project plan can be developed. It is the execution of a well developed project plan which then leads to project success. Temporary Process A project is considered to be a temporary process because once the end goal is achieved, the project is complete. For this reason, the end point of a project needs to be defined at the very beginning of the project to ensure successful completion. The reason why some projects never end is because no one ever defined what constitutes completion of a project. The basic questions for defining success criteria are: Why are we doing this project? What do we hope to change? How will we measure success? Criteria for project success are quantifiable and measurable, and are expressed in terms of business value. Well-Defined Goals Projects require well-defined goals to determine project completion. Without well-defined goals and objectives, a project lacks purpose.

Project Constraints All projects have constraints and these need to be defined from the onset. Projects have resource limits in terms of people, money, time, and equipment. While these may be adjusted, they are considered fixed resources by the project manager. These constraints form the basis for planning the project. Various other definitions of a Project: A project is a complex of non-routine activities that must be completed with a set amount of resources and within a set interval. -Clifford Gray

A project is a specific activity which uses resources to gain benefits; it has a specific starting point and ending point intended to accomplish a specific objective. It is measurable both in its major costs and returns. - J. Price Gittinger A Project is a temporary endeavor undertaken to create a unique product or service - PM Institute A project is a group of unique, inter-related activities (elements of work performed) that are planned and executed in a sequence to create a unique product or service, within a specified time frame, budget and clients specifications. A project is a unique set of coordinated activities, with definite starting and finishing points, undertaken by an individual or organization to meet specific objectives within the defined schedule, cost and performance parameters. Examples of some projects: 1. Construction of a Dam for better irrigation facilities 2. Construction of National Highway 3. Conducting Afro-Asian Games Nature and Distinctive Characteristics of Projects: Nature:

1. Projects differ from stereotyped business activities and they are unique.
2. Each project is different in itself. 3. Projects are not homogeneous however similar they may be. 4. Two projects can not be compared. 5. To perform unique tasks, organizations adopt project approach. Characteristics 1. Unique Activities: The projects are generally unique and do not repeat. However, there can be some variability in design, completion period, etc. For example, Ship Building is an unique project. 2. Specific Goals: Project undertakes different tasks to attain different specific goals. Every project is goaloriented. 3. Sequence of activities: A project follows particular sequence to deliver the end product. 4. Specified Time: All projects will have a specified time for completion i.e. both starting and ending points.

5. Inter-related Activities: Most of the projects will have technically inter-related input-output (e.g. Hotel, Hospital, etc.). Distinctive Characteristics: activities viz. input-output-

Specific and clear objectives as to time, budget, quality, etc. Temporary establishment
Insurmountable funds. Time-bound Entangled with collaborating groups Focus on risk and uncertainty The above properties determine the concept of project management, which is considered as the task of directing unique and novel undertakings. Characteristics of Successful Projects 1. Clear objectives - The most successful projects clearly define objectives from the outset. 2. A good project plan - A carefully thought-out plan serves two purposes. First, it allows everyone involved to understand and perform their part in the project. It shows who is responsible for what and estimates how much money, people, equipment and time will be required to complete the project. Second, it serves as a monitoring tool, allowing you to take early action if things go wrong. 3. Communication, communication, communication - Project is a collaborative effort between all of the individuals and organizations involved. They need to work together to maintain effective and continual communication between the parties. 4. A controlled scope - Numerous issues will come up throughout the project, and not all of them will contribute to the overall objectives. It is important to stay focused on the priorities, with little wasted time or attention. 5. Stakeholder support - Projects typically involve several stakeholders, who invest time and resources in the project. It is important to maintain stakeholder support throughout the project, so the project team can meet its objectives. Every sponsor of a project shall ask himself: How many of these characteristics does my project have? How can I improve it? Project Parameters: The parameters that influence a project which is generally complex in nature are:-

 Scope (Covers all activities, financial/human resources, end-products, target outcomes,

customers, outputs, work, etc.) Quality (Requires satisfying product and process quality. Tools and techniques of quality management to be used ISO standards SQC, JIT, TQM, etc.) Time (Time is inversely proportional to cost. If time decreases, cost increases. Time is managed by activity scheduling). Cost (Cost is associated with all the activities in both planning and implementation process). Resources (People, fiancs, physical resources, and information required to perform project activities). RELATIONSHIP BETWEEN PROJECT PARAMETERS CONSTRAINTS

Scope & Quality of Project

INFLUENCED BY

1. Time 2. Cost 3. Resources

Success of a Project

DEPENDS UPON PROJECT MANAGERS ABILITY TO KEEP

Dynamic System (Project) in Equilibrium.

RESOURCE ALLOCATION

COST

Project Scope & Quality (Goals)

Scope Triangle Classification of Projects Based on Their Characteristics Project Characteristics Time Span Risk Level Complexity Level Technology I 18 months more High High Break Through II Project Class III 3 to 9 months Low Low Best IV 3 months or less Very Low Very Low Practical
TIME

or 9 to 18 months Medium Medium Contemporary

Probability Problems

of 100 % (Certain)

50% (Likely)

10% (Low)

No Risk

Program: Definition of Program It is a Group of Projects managed in a co-coordinated way to obtain benefits not available from managing them individually. What is Project Management (PM)? All of the processes associated with defining, planning and executing the project are considered part of PM. PM may be considered as Directing the activities associated with executing a project, while controlling limited resources efficiently and effectively, ensuring that the end goal is successfully achieved. In PM, the management prepares a project plan by estimating approximate time, cost and resources to accomplish goals mentioned in scope and quality of project as required by clients/sponsors. Other Definitions of PM: 1. PM is the application of knowledge, skills, tools & techniques to project activities in order to meet or exceed stakeholder needs and expectations. 2. PM is a system of procedures, practices, technologies and know-how that enables planning, organizing, staffing & controlling necessary to successfully manage a project. 3. PM is a carefully planned and organized effort to accomplish one-time effort. E.g.: Constructing a residential complex Implementing a new computerized baking system PM Includes 1. Developing a Project Plan (Project Goals, How they will be accomplished) 2. Specifying how goals will be accomplished 3. Specifying what resources are needed 4. Relating budgets & time for completion PM disciplines are: 1. Finance [Financial Statements, Cost of the Project, etc.] 2. Personnel [Selecting Skilled Personnel, Project Manager, Project Team, etc.] 3. Purchases & Logistics [Identified Resources viz. Materials,

EQMI Services & using logistics for smooth implementation] 4 R& D [New Product Development & Quality Assurance] 5. Marketing [Marketing Project Idea to Sponsors] 6. Operations [Managing Activities/Operations]

Relationship between Project & Line Management Success of a project depends upon good relationship between project manager and various functional managers (line staff). Project Manager should exercise judicious control over resources (money, manpower, machinery, facilities, materials, technology & information) allocated to project by various functional departments. Benefits of Project Management Major Benefits 1. Provides techniques for trade-off between conflicting goals & enterprise priorities. 2. Better control of project. 3. Better co-ordination. 4. Reduces developmental time 5. Lowers cost 6. High order results. Other Benefits 1. Clear description of work. 2. Identification of responsibilities & assignments for specific tasks. & activities 3. Tracking of functional responsibilities. 5. Easy specification of time limits for task completion. 6. Problems are exposed in advance.

7. Improved skills for future planning. 8. Objectives which can not be met or exceeded can be identified easily. 9. Measurement of accomplishment against plans is enabled.

PROJECT MANAGEMENT KNOWLEDGE AREAS, LIFE CYCLE, AND RECURRING ACTIVITIES:

SOURCE: PROJECT MANAGEMENT GUIDELINE, Commonwealth of Virginia. www.vita.virginia.gov/projects/

Project Initiating and Concept Development: What is Project Management Methodology? The objective of project management methodology is to provide common standards to ensure that projects are conducted in a disciplined, well-managed, and consistent manner. The ultimate goals of this methodology are to promote the delivery of quality products that result in projects which are completed on time, within budget and accomplish the stated business objectives.

The methodology is conceptually shown in the figure below.

Project Management is an Iterative Process The arrows indicate that project management is an iterative process. It is not a lock-step sequence of activities. In some instances, process groups overlap. The delineation between initiating and planning can sometimes be difficult to distinguish. Other activities, such as oversight, quality control, and executive review, are ongoing and affect each and every cycle of the project. This methodology represents the coordinating mechanism between strategic planning, program implementation, project implementation and on-going operations, state agencies, Office of Information Technology, Office of Budget and Planning and the legislature. This methodology addresses the management of the project only, not the life cycle of a project development effort. Successful project management requires established processes for organizational planning and communication, availability of tools that support management processes, and a culture that values cooperation, teamwork, and planning. Project management requires general management knowledge. The principles, practices, concepts, techniques, tools, and skills of general management are the foundation for project management. These skills include the ability to work well with people, to take responsibility, to lead a group, and to make decisions. What is Risk in Projects?

Risk is inherent in all projects. In project management terms, risk refers to an uncertain event or condition that has a cause and, that if it occurs, has a positive or negative effect on a projects objectives, and a consequence on project cost, schedule or quality. For example: the cause of a risk may be requiring a classroom with networked computers for the learners in a skills development project. The risk event is that Internet connection is delayed and the classroom is not available for the anticipated start date. This affects the objective of offering computer literacy training to underemployed adults, with the consequence to rent another facility or delay project activities. Naturally, it is preferable to maximize the probability and consequences of positive events and minimize the probability and consequences of events adverse to the project objectives. A risk response plan can help the project. It identifies the risks that might affect the project, determines their effect on the project and includes agreed-upon responses for each risk. The Risk Management Strategy Identifying Risks The first step in creating a risk response plan is to identify risks which might affect the project. The project manager, key staff and project partners should brainstorm referring to the project charter, calendar of activities schedule and budget to identify potential risks. Those involved in the project can often identify risks on the basis of experience. Published information resources are also available that identify risks for many application areas. Common sources of risk in community learning initiatives include: Technical risks such as unproven technology Project management risks such as a poor allocation of time or resources Organizational risks such as resource conflicts with other activities External risks such as changing priorities in partner organizations Developing Risk Response Strategies One cannot prepare for or mitigate all possible risks, but risks with high probability and high impact are likely to merit immediate action. The effectiveness of planning determines whether risk increases or decreases for the projects objectives. Several risk response strategies are available: Avoidance changing the project plan to eliminate the risk or protect the objectives from its impact. An example of avoidance is using a familiar technology instead of an innovative one. Transference shifting the management and consequence of the risk to a third party. Risk transfer almost always involves payment of a premium to the party taking on the risk. An example of transference is using a fixed price contract for a consultants services.

 Mitigation reducing the probability and/or consequences of an adverse risk event to an acceptable threshold. Taking early action is more effective than trying to repair the consequences after it has occurred. An example of mitigation is seeking additional project partners to increase the financial resources of the project. Acceptance deciding not to change the project plan to deal with a risk. Passive acceptance requires no action. Active acceptance may include developing contingency plans for action should the risk occur. An example of active acceptance is creating a list of eligible instructors that can be called upon if last minute replacements are needed for your project. Since not all risks will be evident at the outset of the project, periodic risk reviews should be scheduled at project team meetings. Risks that do occur should be documented, along with their responses. The lessons learned may be useful to others or on future projects. Project Constraints and Success All projects have constraints and these need to be identified at the beginning of the project. Projects have resource limits in terms of people, money, time and equipment. Constraints may be adjusted up or down as the project dictates but they are considered fixed resources by a project manager. These constraints form the basis for managing the project and are discussed throughout this methodology. Well defined goals will ensure a successful project. The basic criteria for defining project success can be found by answering, "Why are we doing this project?". Criteria for project success are quantifiable, measurable, and expressed in terms of business value metrics. They include: Customer. Project (containing a purpose or an objective). Scope. Deliverables. Start and End Dates. Sponsor. Identified Resources. Project Manager. Components to Project Success There are three main component questions that need to be answered to ensure the success of projects. They are: 1. Does the product/system meet the predefined business needs and goals? This includes business objectives of cost reduction, increased revenues, better customer service, improved productivity, etc. 2. Does the completed project match the requirements document? 3. Was the project completed as defined by scope, on time, and on budget?

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Project Phases All projects are unique and take on a different form that presents many degrees of uncertainty. Managing these projects dictate that organizations divide them into manageable pieces called project phases. Collectively these phases are known as the project life cycle. The project life cycle methodology is divided into five project phases that are listed below: 1. Initiation - This phase defines and organizes the project. Project justification is outlined in this phase. 2. Planning - In this phase, a workable project plan is developed that will accomplish the project. 3. Execution - Coordinating and allocating resources and people take place in this phase. 4. Control - Throughout all phases of the project, objectives are monitored and measurements of project progress are computed. If variances are discovered, corrective actions are initiated to overcome the problems. Open communication among all project team members is needed in all phases of the project for success, but in this phase it is imperative. 5. Closeout - This phase formalizes acceptance of the project or product with the customer and documents lessons learned. Iterative Process Project management is an iterative process where the beginning of one phase often overlaps the ending of another phase. In some instances, phases may be repeated throughout the life cycle of the project. Phases may be performed sequentially or simultaneously. For example, planning, execution and control may all be performed in parallel as changes are made to the project baseline. Nine Knowledge Areas Included in the project phases are nine knowledge areas. The knowledge areas are integrated in all phases throughout the project. These tools enable the Project Manger to ensure all projects are conducted in the most organized, efficient manner. They are: 1. Integration Management - Includes the processes required to ensure that various elements of the project are properly coordinated. 2. Scope Management - Includes the processes required to ensure that the project includes all the work required, without additional and unnecessary work, to complete the project successfully. 3. Time Management - Includes the processes required to ensure timely completion of the project. 4. Cost Management - Includes the processes required to ensure that the project is completed within the approved budget. 5. Quality Management - Includes the process required to ensure that the project will statisfy the needs for which it was undertaken. 6. Human Resource Management - Includes the processes required to make the most effective use of people involved in the project.

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7. Communications Management - Includes the processes required to ensure timely and appropriate generation, collection, dissemination, storage, and ultimate disposition of project information. 8. Risk Management - Is the systematic process of identifying, analyzing, and responding to the project task. 9. Procurement Management - Includes the processes required to acquire the goods and services to attain project scope from outside the performing organization. The relationship between the five project management phases and the nine knowledge areas are depicted in the Figure shown below:

Figure: Project Management Phases and Knowledge Areas Software Development Projects The management of a software development project can be viewed in three dimensions as shown in Figure given below. The Product Lifecycle axis describes the work to be done to deliver the

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product. One pass through the four phases is a development cycle; each pass through the four phases produces a generation of the software. These processes are repeated in subsequent cycles that are called evolution cycles. The Project Management Processes axis delineates five project management processes that must be performed for every project and every phase thereof. The Project Management responsibilities axis lists nine areas of responsibility that must be addressed by the project managers during each of the five project management processes for all projects.

Project Management Skills & Techniques Successful project management requires that certain infrastructure components are in an organization. Many of these components are basic people management skills, organization skills, time management and communication skills. Project management also requires the application of these principles with the ability to work well with people, to take responsibility, to make decisions and to lead people. ***

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