Project Management

Overview
What is a Project?
• A project is a group of unique, interrelated activities that are planned and executed in a
certain sequence to create a unique product or service, within a specific time frame,
budget and the client’s specifications.
• According to Project Management Institute’s a Project is defined as “A temporary
endeavor undertaken to create a unique product or service”
• The British standard defines a project as “ A unique set of coordinated activities, with
definite starting and finishing points, undertaken by an individual or organization to
meet specific objectives within defined schedule, cost and performance parameters”.
• Some of the characteristics of the tasks that qualify to be a project are: -uniqueness,
specificity of goal, sequence of activities, specified time and interrelatedness.
• A project means “ any undertaking that has definite, final objectives representing
specified values to be used in the satisfaction of some need or desire”
• A commercial project involves the following key considerations;
– What is the cost?
– What is the time required?
– What are the capabilities that it provides to the organizations?
– Whether it will fit into the strategies of the organization?
Definition
• “A controlled process of initiating, planning, executing, and closing down a
project.”
• The art of organising, leading, reporting and completing a project through
people.
• “Project management is the application of knowledge, skills, tools and
techniques to a broad range of activities in order to meet the
requirements of the particular project.
• A project is a temporary endeavor undertaken to achieve a particular
aim.
• Project management knowledge and practices are best described in
terms of their component processes. These processes can be placed into
five Process Groups: Initiating, Planning, Executing, Controlling and
Closing.”
Some Examples of Project
• Redesigning or relocating a production facility (Manufacturing Project)
• Implementing a management information system (MIS Project)
• Developing a new alloy required for a space vehicle. (Spacecraft Project)
• Constructing national highways (Infrastructure Project)
• Organizing the Olympics (Sports project)
• Constructing a dam for better irrigation facilities. (Infrastructure Project)
• Launching of new product (Advertising and Marketing Project)
• Implementing a new computer system (IT project or upgrade)
• Designing and Implementing a new organizational structure (HR Project)
• Designing and Constructing a house or colony (Construction Project)
Project Parameters
• Some common constraints that influence a project are:
1. Scope
2. Quality
3. Cost
4. Time
5. Resources
Relationship between Project Parameters
• The scope and Scope Triangle
quality of a project
are influenced by a
variety of
constraints like
1. Time
2. Cost and
3. Availability of
resources
Difference between Project and Program
Project
• Project includes all activities to
complete a given job.
• It has narrow scope and has
shorter duration.
• Project is a part of Program.
• Projects is individual activity.
Program
• A program is defined as an ongoing
process or ongoing operation
indefinitely.
• It has broader scope and has longer
duration.
• It is a main activity.
• A program is a group of projects
managed in a coordinated way to
obtain benefits not available from
managing them individually
What is Project Management
• Managing a project is called Project Management.
• According to PMI - “PM is the application of knowledge, skills, tools
and techniques to project activities in order to meet or exceed
stakeholder needs and expectations”.
• Project Management includes –
• defining project goals,
• specifying how the goals will be accomplished,
• what resources are needed, and relating budgets and time for completion.
What is Project Management …
• Project management is the discipline of organizing and managing
resources in such a way that these resources deliver all the work required
to complete a project within defined scope, time, and cost constraints.
• Project is a temporary and one time endeavor undertaken to create a
unique product or service. This property of being a temporary and one
time undertaking contrasts with processes, or operations, which are
permanent or semi-permanent ongoing functional work to create the same
product or service over-and-over again.
1. A Project is a planned set of activities
2. A Project has a scope
3. A Project has time, cost, quality and resource constraints
Project Management Objectives
• Coordinate the various interrelated processes of the project.
• Ensure project includes all the work required, and only the work required,
to complete the project successfully.
• Ensure that the project is completed on time and within budget.
• Ensure that the project will satisfy the needs for which it was undertaken.
• Ensure the most effective use of the people & resources involved with the
project.
• Promote effective communication between the projects team members
and key stakeholders.
• Ensure that project risks are identified, analyzed, and responded
Why Project Management?
• The decision on whether or not to set up a separate project
management division is subjective as it depends upon various factors
some of them are:
• Interactions or interdependencies between various departments.
• Sharing of common resources
• The importance of the project to the organization of the project
• Degree of unfamiliarity with the work involved and its complexity
• Changes in the market
• The reputation of the organization
Managing the Project Scope
• The scope of the project determines the boundaries of the project.
• The scope specifies what features/ a characteristic of the project product is
included and what is not included.
• In project management there are actually two different scopes.
1. Product Scope, which is what the end result of the project will create.
• The product scope is what customers focus on—what they are envisioning the
firm to create.
• The product scope describes the thing or service that will exist as a result of
undertaking the project.
2. Project Scope, on the other hand, describes all the work to create the
product scope.
• It includes all of the work, and only the required work, to complete the
project deliverable.
Managing the Project Scope …
• Project Manager and the client prepares project scope and
deliverables.
• The project manager then prepares a Project Overview Statement
(POS) based on the list of deliverables.
• The POS will be sent to the firms top management for approval.
• The PM prepares a Project Definition Statement with his team
members that can be used as a reference in executing the project.
Who should be the Project Manager?
• In any organization we find two types of people:
1. Those who give excellent ideas from their knowledge and experience but
are not very good at getting things done .
2. Those whose are good at handling men and matters, but are not as sound
as the former in technical matters.
People who have great ideas are not necessarily good implementers.
• The manager of a project should be one who can work effectively
with different groups of people, interact with various departmental
heads, and integrate all the functions to get the project move.
• Harold Kerzner calls the first type of people ‘ Project Champions’ and
the Second ‘Project Manager”.
Functions of Project Manager
1. Developing a unique product or 10.
process and manage change.
2. Identification of the need for project. 11.
3. Finding different alternatives of the
project. 12.
4. Developing a plan of action.
5. Training operators. 13.
6. Establishment of quality assurance
cell to control quality. 14.
7. Incorporation of changes as and
when needed while implementing
project.
8. Selection of suitable equipment.
9. Finding suitable financial resources.
Assessment of alternatives and
obtaining approval to proceed.
Measuring performance of the
project.
Transfer of material, funds and
settling all accounts after completion
of project.
Monitoring progress and reporting to
higher authorities.
Closing all records, submission of
final report and transfer of
responsibility after completion of
specified project
Project Manager Vs Line Managers
• There is always a constant tussle between the line managers and the
project manager to share the organizations resources like;
• Money, Manpower, Equipment, Facilities and Information Technology.
• Manpower is controlled by Line Managers.
• Allocation of manpower will be done by Line Managers based on the
request made by Project Manager.
• Employees provided to Project Manager continue to report to Line
Manager and give preference to the commands of the Line Manager over
the Project Manager.
• Success of Project depends on good working relationship between PM and
LM
Characteristics of Project Manager
• Flexible and adaptable
• Preference for significant initiative and leadership
• Aggressiveness, confidence, persuasiveness, verbal fluency;
• Ambition, activity, forcefulness;
• Effectiveness as communicator and integrator;
• Broad scope of personal interests;
• Poised with enthusiasm, in agitation, spontaneity;
• Able or willing to devote most of his time to planning and controlling
• Able to identify problems;
• Willing to make decisions that are acceptable;
• Able to maintain a proper balance in the use of time
Project Management Team
• They must be technically competent.
• Senior members of the project team must be politically sensitive. To
ensure cooperation and assistance, there is a delicate balance of power
that must be maintained between the project and the functional
departments, and between one project and others.
• Members of the project team need a strong problem orientation.
• Team members need a strong goal orientation.
• Project workers need high self-esteem. Team members must be sufficiently
self-confident and have sufficient trust in their fellow team members that
they can immediately acknowledge their own errors and point out
problems caused by the errors of other.
Project Life Cycle
• The Project Life Cycle refers to a logical sequence of
activities to accomplish the project’s goals or
objectives.
• Regardless of scope or complexity, any project goes
through a series of stages during its life.
1. Phase I : Conception and Selection
2. Phase II : Planning and Scheduling
3. Phase III : Implementation, Monitoring and Control
4. Phase IV : Evaluation and Termination
Functions Performed in PM
Phase I Phase II Phase III Phase IV
Conception & Selection Planning & Scheduling Implementation, Evaluation &
Monitoring and Control Termination
• Identifying a need for a • Set up a technical team to • Procuring materials • Training operational
project decide on how the project • Building and testing Staff
• Establishing goals to be can be implemented. the tools • Transfer of materials
achieved by the • Plan for the requirements • Developing support • Transferring the
project. of personnel, finance, systems responsibilities
• Estimating the amount materials etc. • Producing the system • Releasing surplus
that the firm will have • Prepare a schedule that is aimed at. resources, that
to commit for the • Verifying whether the remain after use
project. performance is up to • Releasing the
• Presenting the project the laid down project staff for the
idea or various standard. next assignment.
alternative ideas to the • Making modification
management and get if required.
their approval
Phases of Project Management
Initiation Phase
• Idea for the project is explored and elaborated.
• The goal of this phase is to examine the feasibility of the project.
• Decisions are made concerning who is to carry out the project, which party (or parties)
will be involved and whether the project has an adequate base of support among those
who are involved.
• In this phase, the current or prospective project leader writes a proposal, which contains
a description of the above-mentioned matters.
• The prospective sponsors of the project evaluate the proposal and, upon approval,
provide the necessary financing. The project officially begins at the time of approval.
• Questions to be answered in the initiation phase include the following:
(a) Why this project?
(b) Is it feasible?
(c) Who are possible partners in this project?
(d) What should the results be?
(e) What are the boundaries of this project (what is outside the scope of the project)?
Definition Phase
• In this phase, the requirements that are associated with a project
result are specified as clearly as possible.
• This involves identifying the expectations that all of the involved
parties have with regard to the project result.
Design Phase
• The list of requirements that is developed in the definition phase can
be used to make design choices.
• In the design phase, one or more designs are developed, with which
the project result can apparently be achieved.
• The project supervisors use these designs to choose the definitive
design that will be produced in the project.
• This is followed by the development phase.
• As in the definition phase, once the design has been chosen, it cannot
be changed in a later stage of the project.
Development Phase
• During the development phase, everything that will be needed to
implement the project is arranged.
• Potential suppliers or subcontractors are brought in, a schedule is made,
materials and tools are ordered, and instructions are given to the
personnel and so forth.
• The development phase is complete when implementation is ready to
start.
• All matters must be clear for the parties that will carry out the
implementation.
• In some projects, particularly smaller ones, a formal development phase is
probably not necessary.
• The important point is that it must be clear what must be done in the
implementation phase, by whom and when.
Implementation Phase
• The project takes shape during the implementation phase. This phase
involves the construction of the actual project result.
• It is during this phase that the project becomes visible to outsiders, to
whom it may appear that the project has just begun.
• The implementation phase is the doing phase, and it is important to
maintain the momentum.
• At the end of the implementation phase, the result is evaluated
according to the list of requirements that was created in the
definition phase.
• It is also evaluated according to the designs.
Follow-up Phase
• Although it is extremely important, the follow-up phase is often
neglected.
• During this phase, everything is arranged that is necessary to bring
the project to a successful completion.
• The central question in the follow-up phase concerns when and
where the project ends.
• The boundaries of the project should be considered in the beginning
of a project, so that the project can be closed in the follow-up phase,
once it has reached these boundaries.
Mckinsey’s 7S in Project Management
Mckinsey’s 7S in Project Management …
1. Strategy
• Setting project objectives is not enough to achieve success. You should have a plan
and strategy about how to be successful and how to achieve your objectives.
• The project plan and strategy should be well documented and communicated to all
team members. The project strategy should focus on how to build and maintain a
competitive advantage over the competitors. Strategy can change with changes in
situation and external environments: most likely the project sponsor and project.
2. Structure
• This element relates to who will report to whom. Organisational charts for the
project and other related resource documents fall inside the Structure element of
the 7-S model. Irrespective of the scope of the implementation, it is important that
team members are clear about who reports to whom.
Mckinsey’s 7S in Project Management …
3. Systems
• The System element reflects how the tasks will be completed and what process will
be followed. It covers areas related to business operations and the business of
running projects.
• As a project manager, one should probably spend a lot of time removing bottlenecks
for the team to ensure they can fulfil their responsibilities and achieve better results.
4. Shared Values
• Shared values are the first soft element that deals with organisational culture. It is
the shared values that bind the project team together and foster cohesiveness and
teamwork.
• These characteristics runs deep down the organisation; companies never let go of
them, no matter how grave the circumstances. Both the corporate culture and
general work ethic also reflects shared values.
Mckinsey’s 7S in Project Management …
5. Style
• This element relates to leadership style. The leadership style you adopt as a project
manager will directly influence your team. It’s important that you select the style
carefully.
6. Staff
• People are the most valuable assets of a company. Managing the staff efficiently and
getting the best out of them is the core responsibility of a manager, and even project
managers without line responsibility for their teams have a huge influence over the
individuals involved in the project.
7. Skills
• Closely related to the previous point, the Skill element of the 7-S model focuses on
the number of skills and levels of skills the team members have. Good project
managers spend time with every individual to get to know them better and evaluate
their skill levels.
Classification of Projects
• Based on Ownership
• Public Projects
• Private Projects
• Public Private Partnerships
• Based on Investment
• Large Scale Project
• Medium Scale Project
• Small Scale Project
• Based on Research in Academia
• Major Projects (3-5 Years)
• Minor Projects (< 1 Year)
• Based on Sector
• Agricultural Projects
• Industrial Projects
• Service Projects
• Based on Objective
• Commercial Projects
• Social Projects
• Based on Nature
• Conventional Projects
• Innovative Projects (Technology,
Research, New product development)
• Based on Time
• Long term projects (> 5 Years)
• Medium term projects (3-5 Years)
• Short term projects ( 1-3 Years)
• Very short term projects ( Days to an Year)
Classification of Projects …
• Based on Risk
• High Risk Projects
• Low Risk Projects
• Based on Functions
• Marketing Projects
• Financial Projects
• Human Resources
• IT and Technology Projects
• Production Projects
• Strategic Projects
• Based on Investment Decisions
• Independent Projects
• Mutually exclusive Projects
• Contingent Projects
• Based on Output
• Quantifiable projects
• Non-quantifiable projects
• Based on Financial Institutions’
Classification
• Profit-Oriented Projects [(a) New Projects; b)
Expansion Projects or Development projects; c)
Modernization Projects or Technology Projects
and d) Diversification Projects ]
• Service-Oriented Projects [(a) Welfare Projects;
b) Service Projects; c) Research and Development
Projects and d) Educational Projects.)]
Importance of Project Management
• Reduction in the Product Life Cycle
• Innovation and invention becomes the key for success and speed to innovate or
invent becomes a competitive advantage. More and more organizations are
depending on cross-functional project teams to get new products and services to the
market as quickly as possible.
• Global Competition
• In the globally competitive today’s market, customers want cheaper products and
services with better quality at cheaper prices. As the basic elements of project
management concentrate on time, cost and quality, project management has
become style of managing business.
• Knowledge Explosion
• The knowledge explosion world over has increased the complexity of managing
projects. Product complexities have increased and demanded integration of
divergent technologies
Importance of Project Management
• Corporate Downsizing
• Restructuring of organizations in the recent years has resulted into the downsizing or
rightsizing. Downsizing and sticking to core competencies have become essential for survival
for many organizations
• Increased Customer Focus
• The customization of products and services required better understanding of the customers’
needs by project team members. The customers are more aware and their changing needs
are to be taken into account to survive in the market.
• Managing Small Projects
• In today’s competitive world many projects are run concurrently. This resulted into the multi-
project environment and also plethora of new problems. Sharing and prioritizing resources
across a portfolio of projects is a major challenge for top management.
• Upsurge of Third World and Closed Economies
• The gradual opening of emerging economies has created an explosion of demand for goods
and services within these economies for their development. Many firms are using project
management techniques to establish distribution channels and foreign bases of operations
An Integrated Approach to Project Management
• Integrated project management process focuses all project efforts towards
the strategic plan of the firm and reinforces mastery of both the project
management tools or techniques and interpersonal skills necessary to
achieve successful project completion.
• Integration of project management has two key areas.
1. Integration of Projects with Strategic Plan –
• Strategic plans are written by one group of managers, projects are selected by
another group and the projects are implemented by another group. This resulted in
unsatisfied customer. Thus, integration of projects with the strategic plans is very
essential .
2. Integration within the Process of Managing Actual Projects –
• The integration within the process of managing projects has two dimensions. The
first dimension is the technical side of the management process which consists of the
formal, disciplined, pure logic part of the process. The second dimension is the socio-
cultural side and this centers on creating a temporary social system within a larger
organizational environment that combines the talents of a divergent set of
professionals working to complete the project.
Stakeholders of Project Management
Stakeholders of Project Management…
• There are five major types of stakeholders:
• Project manager
• Project team
• Functional management
• Sponsors
• Customers
• Within the stakeholders, you have both internal and external
classifications.
• Internal stakeholders are those directly affected by the project, such as
employees.
• External stakeholders are not a part of the business, such as vendors or
suppliers, but have an interest in its outcome.
Internal and External Stakeholders
• Project managers are internal stakeholders because they are directly
involved in developing the project. They have authority to manage
the project by handling responsibility of work performance,
organizing and planning; effectively ensuring that all phases of the
project are done accurately and efficiently.
• Vendors, suppliers, and outside organizations are external
stakeholders because they supply needed elements for a project’s
success, they need to stay in communication at all times on goals,
milestones and deliverables.
Primary and Secondary Stakeholders
• Primary stakeholders have a major interest in the success of a project because they are
directly affected by the outcome. Customers and end users are primary stakeholders as
well as some project sponsors, project managers, and team members.
• Project sponsors are responsible for the overall success and vision of the project. They
should provide feedback and make decisions regarding project implementation and
assure that the project manager remains on task. Sponsors allocate and supply resources
and finances to fund the project. The sponsor should have a clear understanding of
what’s expected in accordance with the scope, schedule, and resources needed for the
project. Success of a project is largely dependent on the project sponsor’s leadership and
support. The leadership provided by the sponsor helps identify cost overruns and
provides alternatives in order to remain on budget.
• Secondary stakeholders also help to complete the project. Though their role isn’t
primary, they assist with administrative processes, financial, & legalities.
• Communication between primary and secondary types of stakeholders will ensure that
everyone is working toward the same goal. Lack of communication can cause a
breakdown within the project.
Direct and Indirect Stakeholders
• Direct stakeholders are concerned with the day to day activities of a
project. Team members are direct stakeholders as their workloads are
scheduled around the project each workday.
• Indirect stakeholders are not impacted by the project. Those not
affected are your customers and end users, because their concern is
with the finished project. This would be the quality of merchandise,
price, packaging, and availability.
• The management of stakeholder responsibility is very important to
the success of a project. It’s important to define the various types of
stakeholders, their needs or interests, and communicate with them
effectively.
Benefits of project management
Identification of functional responsibilities to ensure that all activities
are accounted for regardless of personnel turnover.
• Minimizing the need for continuous reporting.
• Identification of time limits for scheduling.
• Identification of a methodology for trade-off analysis.
• Measurement of accomplishment against plans.
• Early identification of problems so that corrective action may
follow.
• Improved estimating capability for future planning.
• Knowing when objectives cannot be met or will be exceeded.
Obstacles in project management
To enjoy the various benefits of project management given above, the
following obstacles be overcome carefully.
• Project complexities
• Execution of customer’s special requirements
• Organisation restructuring is a typical task
• Project risks
• Changes in technology
• Forward planning and pricing.