Project Management

Introduction to Project Management

Learning Objectives
¾ To understand concepts of project, project
leadership and identify the key activities in
leadership,
the project life cycle
¾ Understand the role of the “triple constraint”
in project management and apply it in
determining project scope

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Project Management

Learning Objectives
¾ Learn to select various techniques and
leadership actions that keep projects on track
by managing project risks and effectively
using a communication plan
¾ Learn to evaluate project feasibility and make
it workable using various techniques like
earned value analysis
analysis.

Reference Books
(As prescribed by MU)

PMP – Project Management Professional – Study

Guide
- By Kimi Heldman
Project Management
- By S. Choudhary
Text Book Of Project Management
- By P. Gopalakrishnan
Project Management
- By Prasanna Chandra

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Project Management

Evaluation Schedule
Sr No. Assessment details Total Marks

01 Class Participation 10

02 Case Analysis and Class 15

Work
04 Test 15

Internal Assessment 40

05 Sem. End Exam 60

Total 100

What is a project?
¾ A project is a temporary endeavor undertaken
to produce a unique product or service
¾ What are the differences between projects and
operations?
¾ Characteristics of Operations
¾ Ongoing – Continuous cycle
¾ Repetitive – Expected inputs and outputs
¾ Characteristics of Projects
¾ Temporary – Definitive beginning and end
¾ Unique – New undertaking, unfamiliar ground
¾ Combination of projects can be called
Programme

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Project Management

Project, Defined
¾ A project is an endeavor to accomplish a specific objective
through a unique set of interrelated tasks and the effective
utilization
tili ti off resources.
¾ It has a well-defined objective stated in terms of scope,
schedule, and costs.
¾ Projects are “born” when a need is identified by the customer –
the people or organization willing to provide funds to have the
need satisfied.
¾ It is the people (project manager and project team), not the
procedures and techniques, that are critical to accomplishing
the project objective.
¾ Procedures and techniques are merely tools to help the people
do their jobs.

Examples of Projects
¾ Planning a wedding
¾ Designing and implementing a computer system
¾ Hosting a holiday party
¾ Designing and producing a brochure
¾ Executingg an environmental clean-upp of a contaminated site
¾ Planning a class picnic
¾ Performing a series of surgeries on an accident victim

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Project Management

Is this a Project or an Operation

• The
YourVP
company
of marketing
manufactures
approaches
small
you
kitchen
and requests
appliances.
that It
you
i iintroducing
is tchange
hd i th
the
a new
visitor
i it product
llogon
d t screen
li off appliances
line on th
the
li iin
designer
company'scolors
website
with
to distinctive
include a username
features for
with
kitchens
at in
small
least six
spaces.
characters.
These new products will be offered
indefinitely starting with the spring catalog release.

London 2012 Olympics

Project or Programme?
The Olympic Stadium Construction Project

SMART Objective:

To design and build a world class multi-sporting venue with

capacity for 80,000 spectators for the London 2012 Olympic
Game in Stratford (East London), to be completed between
2007 and 2011, with an estimated budget of £ 496 million

Scope
p – Build the Olympic
y p Stadium for the 2012 g
games

- Includes: Design and plans, Clearing Land, Setting

foundation, all construction works, and fittings

- Excludes: Decoration, insurance deals, staging of game

and event planning, source funding

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Project Management
Contrast Projects and Operations
Projects
– Create own charter,
organization, and goals
– Catalyst for change
– Unique product or service
– Heterogeneous teams
– Start and end date
11
Project Manager
- Role ends with project
- Temporary team
- Many different skills
- Work not done before
- Time, cost and scope
constraints
- Difficult to estimate time
and budget
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Operations
– Semi-permanent
p
charter, organization,
and goals
– Maintains status quo
– Standard product or
service
– Homogeneous teams
– Ongoing
Operational Manager
- Routine
- Stable organisation
- Specialist skills
- Work repeatable
- Annual planning cycle
- Budgets set and fixed
events
6
Project Management

What is Project Management?

¾ Project Management is the application of skills,
k
knowledge,
l d tools
l andd techniques
h i to meet the
h
needs and expectations of stakeholders for a
project
¾ The purpose of project management is prediction
and prevention, NOT recognition and reaction
¾ Effective Management of the Triple Constraints
¾ Requirements – Needs Identified or Unidentified
Expectations
¾ Cost/Resources – People, Money, Tools
¾ Schedule/Time

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Project Management

“Laws” of Project Management

¾ Projects progress quickly until they are 90%
complete. Then they remain at 90% complete
forever.
¾ When things are going well, something will go wrong.
¾ When things just can’t get worse, they will.
¾ When things appear to be going better, you have
overlooked something.
¾ If project content is allowed to change freely
freely, the
rate of change will exceed the rate of progress.
¾ Project teams detest progress reporting because it
manifests their lack of progress.

Key areas of Project Management

¾ Scope Management
¾ Issue Management
¾ Cost Management
¾ Quality Management
¾ Communications Management
¾ Risk Management
¾ Change Control Management

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Project Management

Scope Management
¾ Project Scope Management is the process to ensure
that the project is inclusive of all the work required
required,
and only the work require, for successful completion.
¾ Primarily it is the definition and control of what IS and
IS NOT included in the project
¾ This component is used to communicate
¾ How the scope was defined
¾ How the project scope will be managed
¾ Who will manage the scope (e.g., PM, QA)
¾ Change Control

Issue Management
¾ Issues are restraints to accomplishing the deliverables
of the project.
project
¾ Issues are typically identified throughout the project
and logged and tracked through resolution.
¾ Issues not easily resolved are escalated for resolution.
¾ In this section of the plan the following processes are
depicted:
¾ Where issues will be maintained and tracked
¾ The process for updating issues regularly
¾ The escalation process
¾ The vehicle by which team members can access documented
issues

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Project Management

Cost Management
¾ The processes required to ensure the project is
completed within the approved budget and
includes:
¾ Resource Planning - The physical resources required
(people, equipment, materials) and what quantities
are necessary for the project
¾ Full Time Employees, Professional Services, Cost, and
Contingency
¾ Budget
¾ Budget estimates
¾ Baseline estimates
¾ Project Actuals

Quality Management
¾ Quality Management is the processes that
i
insure the
h project
j will
ill meet the
h needs
d via:
i
¾ Quality Planning, Quality Assurance, and Quality
Control
¾ Clearly Defined Quality Performance Standards
¾ How those Quality and Performance Standards are
measured and satisfied
¾ How Testing anddQQuality
l Assurance
A Processes will
ll ensure
standards are satisfied
¾ Continuous ongoing quality control

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Project Management

Communications Management
¾ The processes necessary to ensure timely and
appropriate generation, collection, dissemination, and
storage of project information using:
¾ Communications planning: Determining the needs (who needs
what information, when they need it, and how it will be
delivered)
¾ Information Distribution: Defining who and how information
will flow to the project stakeholders and the frequency
¾ Performance Reporting: Providing project performance
updates via status reporting.
¾ Define the schedule for the Project Meetings, Status
Meetings and Issues Meetings to be implemented

Risk Management
¾ Risk identification and mitigation strategy
¾ When\if new risks arise
¾ Risk update and tracking

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Project Management

Change Control Management

¾Define how changes to the projects scope
will be executed
¾ Formal change control is required for all of the following
1.Scope Change
2.Schedule changes
3.Technical Specification Changes
4.Training Changes

¾ All changes require collaboration and buy in via the

project sponsor’s signature prior to implementation of
the changes

A Balanced Project

Time Cost

Quality

Scope

24

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Project Management

Project Objectives & Functions

Performance: This is to satisfy the specified standards

of performance/function reliability and safety
Containment of expenditure within budget
Time scale: Timely implementation of project to be
proven at the time of launch

Project Management Institute (PMI) identifies six basic

function that project management must address:

1. Manage the project’s scope to define the goals and the

work to be done in sufficient detail to facilitate
understanding and correct performance by participants
2. Manage the human resources involved in a project
effectively
3. Managing communications to see that appropriate parties
are informed and sufficient information to keep the project
coordinated
4. Manage time by planning and meeting schedules
5. Manage quality so that project results are satisfactory
6. Manage cost to see that project is performed at the
minimum possible cost and within the budget, if possible

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Project Management

Project Classification
• Based on scope & significance: Location - National,
International
• Based on size and scale: Large, medium small scale
• Based on degree of change: Inventive, discovery, innovation,
adaptation
• Based on ownership and control: Public, private, joint sector
• Based on technology involved: Conventional, new, high, low
technology
• Based on speed: Normal
Normal, crash
crash, disaster
• Based beneficiary: Industrial, ancillary, consumers
• Based on purpose: New projects, merger, diversification,
modernization,

London 2012 Olympics: Stadium

Project Triggers?
• Change Driven – Transformation of East London
• Market Driven – Provide huge investment opportunities for the city,
tourism
• Innovation Driven – Sustainabilityy practices,
p , waste,, energy,
gy, social
inclusion and green building
• Crisis Driven – Regenerate a highly impoverished area with high
criminality that was being excluded from the rest of the capital.

Stakeholders:
Internal:
UK Govt, Olympic Authority, Mayor of London, Contractors and suppliers,
all employees in the project team
team.

External:
Londoners, participating sporting nations, athletes, inhabitants of the
neighbouring community, UK residents and the (world) community at
large.

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Project Management

Defining Your Project

Goal Scope Deliverables Risks & Issues Stakeholders

What you
need to
do

Objectives Exclusions Dependencies & Uncertainties & Project team

Constraints Assumptions
Time What you
Cost will not do
Quality or is not in
scope

Planning Your Project

Detailed Project Definition Tools

Scope Deliverables Time Budget Quality

Work Specification
p Milestone Cost Qualityy Plan
Q
Breakdown Sheets Chart or table Breakdown Q.A
Structure Structure A.C
(WBS) (CBS

Implementation Planning Tools

Schedule Resourcing Communication Governance Risk

Gantt Chart Organizational Stakeholder Terms of Risk Register

or Network Breakdown communication Reference
Chart Structure Plan
OBS

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Project Management

Project Success

Customer Requirements Completed within allocated

satisfied/exceeded time frame

Completed within allocated Accepted by the customer

budget

Why Projects Succeed!

¾ Project Sponsorship at executive level
¾ Good project charter
¾ Strong project management
¾ The right mix of team players
¾ Good decision making structure
¾ Good communication
¾ Team members are working toward common
goals

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Project Management

Why do projects fail?

¾ Scope creep
¾ Poor requirements gathering
¾ No Functional input in planning
¾ Lack of sponsorship
¾ Unrealistic planning and scheduling/Impossible
schedule commitments
¾ Lack of resources

Reasons Why Project Fail

Poorly managed Undefined objectives and Lack of management
goals commitment
Lack of a solid project Lack of user input Lack of organizational
plan
l support
Team weakness Insufficient resources Competing priorities
Poor communication Estimates for cost and Business politics
schedule are erroneous
Overruns of schedule and Inadequate or vague Bad decisions
cost requirements
Scope creep No change control Lack of prioritization and
process project portfolio
management
Lack of proactive Unrealistic timeframes Stakeholder conflict
management initiatives to and task
combat project risk

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Project Management

Examples

Airbus SAS - France

Project name : A380
Project type : Commercial aircraft development
Date : Dec 2000 – Oct 2007
Cost : $6.1B in additional costs due to project delays

The root of the problem can be traced back to a single

decision: the decision to proceed with the project despite
the fact that ttwo
o design tools were
ere in use.
se
That decision resulted in design inconsistencies,
mismatched calculations and configuration management
failures.

Examples

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Project Management

Examples
Worli Sea link
The sea link was to be completed by 2003. The original cost
of this 5.6 km sea bridge was Rs.400 crore which shot up to
nearly Rs
Rs. 1400 core.
core
The principal reasons for delay were changes in
scope/design of work coupled with contractual disputes.
Instead of initially envisaged single cable stay tower, new
design of separate cable stay towers for each carriageway
was introduced.
introduced
Payment related disputes between the contracting agency &
the client

Project termination
¾ Project success means that the project has met
it cost,
its t schedule,
h d l and d ttechnical
h i l performance
f
objectives and has been integrated into the
customer's organization to contribute to the
customer's mission.
¾ Project failure means that the project has
failed to meet its cost
cost, schedule
schedule, and technical
performance objectives, or it does not fit in the
organization's future.

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Project Management

When Do Projects Terminate?

¾ Upon successful completion, or . . .
¾ When the organization is no longer willing to
invest the time and cost required to complete
the project, given its current status and
expected outcome.

Project termination reasons

1. The project results have been delivered to the customer
2 The project has overrun its cost and schedule objectives
2.
3. The project owner's strategy has changed
4. The project's champion has been lost
5. Enviromental changes that affect the project
6. Advances in the state of the art hoped for in the project
has not been realized
7. The project's priority is not high enough to survive in the
competition

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Project Management

Example
¾ Chrysler scrapped a development project for a
new luxury
l car. Code
C d named d LX
LX, th
the car wouldld
have been the flagship of the Chrysler fleet.
After much consideration they saw that the
competition on the market would be much more
higher than anticipated rendering the project
unprofitable according to their project planning
planning.

Why Terminate?
¾ The termination decision usually does not come
up att any specific
ifi iinstant
t tb butt rather
th d develops
l
slowly during the life cycle of the project
¾ Project termination should not be considered a
failure, but a strategic decision implemented
when a project does not or may not support the
organizational
g i ti l strategies
t t gi
¾ People often cloud their judgement in the site
of failure

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Project Management

Example of strategic decision

¾ The Boeing Company canceled a project to build
a pair of ”superjumbo”
superjumbo jet models in favor of
shifting a strategy to battle archival Air Bus
Industry in offering smaller and higher-
performance versions of its existing aircraft.
The jet would be a 747 version which could
carry 500 more passengers and travel distances
of as many as 10,000 miles.
¾ Another reason for cutting out the project was
insufficient customer interest to justify the
development expenditure.

Emerging Trends in Project

Management
Project managers are increasingly asked to lead
the organization in transformative ways
ways. Among the trends
that project managers have noticed are

• An increased emphasis on project management

soft skills
• Viewing the project management office (PMO) as a
potential profit center (vs. a cost center)
• Aggressively planning sustainability into projects
and an increased emphasis on corporate social
responsibility

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Project Management

Increased Emphasis on Project

Management Soft Skills
A project manager understands the “hard skills” of project
management: earned value management, development
of the work breakdown structure,
structure project schedule
schedule, project
budget, and risk management plan.
However, there is another set of skills a project manager must
master to reach his or her full potential: “soft skills,”
such as
• interpersonal communication,
• leadership,
• negotiation skills,
• influencing, and
• personnel management.

Challenges in Project Management

In this ever changing environment retaining competitive edge
means being able to anticipate and respond quickly to changing
business conditions. Projects are inevitably important tools in
providing facts and figures for national planning
planning.
The nature and problem of implementation of large investment
projects in sectors such as
¾ industry,
¾ minerals,
¾ power,
¾ transport,
¾ construction
¾ communication
differ from those concerned with development, rural industries,
social welfare, health etc.

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Project Management

Challenges in Project Management

In many of the developing countries the projects are often set

p with the p
up purpose
p of receiving
g technical assistances or
finance from foreign countries or international financial
institutes.

Hence the modalities of formation and implementation for

programmes and project are different.

Social Responsibility and Planning for

Sustainability in Projects
Creating value through sustainability has become
increasingly important in business today, and its importance
will
ill continue
contin e to grow
gro in the ffuture.
t re
Worldwide, as companies and societies become more
attuned to the necessity of reducing waste, increasing
recycled content, and integrating sustainability into the supply
chain, the importance of planning sustainability into projects
will get increased focus.
Sustainability in project management can be viewed as
equalizing the business benefits of your project with the
environmental and societal impacts that the project will have.
In a nutshell, it is being able to meet today’s project needs
while securing the ability to meet the needs of the future

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Project Management

Sustainability
Many organizations are beginning to plan sustainability into their
projects in a variety of different ways.
- planning sustainability on the front end of a project (materiel
procurements)) or
p
- on the back end (reducing landfill waste),
The United States Department of Defence has strongly
encouraged the implementation of “green” procurements and
has been aggressively funding programs and projects that are
designed to reduce waste and increase renewable energy
initiatives.
initiatives
Embracing and understanding the concept of sustainability will
enable project team and the organization to reap the benefits of
the growing drive toward sustainability-based project
management.

Social Responsibility
Along with sustainability, there is an emerging trend to
conduct business in a socially responsible manner.
There has been eever
er increasing scr
scrutiny
tin placed on
companies that exploit foreign workers, waste the natural
resources of under-regulated countries, or damage the
environment through negligence or in the name of increased
profit.
In terms of project management, corporate social
responsibility (CSR)
(CS ) can be defined
f as project planning to
ensure that profits are not generated through cost savings
that result from the maltreatment of workers or by channelling
business to countries that do not enforce accepted
environmental standards

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Project Management

Five Characteristics of a Project

Projects differ, but they have some commonalities.
Some characteristics of a project are

1. Change
Projects are a way to introduce change.
Example: A new sales website will change how clients
purchase items.
2. Temporary
Th
There is
i always
l a specific
ifi start
t t and
d end
d tto a project,
j t and
d it
should cease once the mandatory products are created.
Ongoing maintenance of a product occurs after the project
and is not considered part of the project.
Example: The production of a software to manage sales.

Five Characteristics of a Project

3. Cross- Functional
A project engages people from different seniority and
business departments that work together for the period of the
project.
Example: To develop sales software, people from marketing
and sales departments should work closely with the IT
department.
4. Unique
Every project is unique.
Example: Building a fiftieth school is different from building
the forty-ninth one. The location is different, the design is
different, and there are different categories of students.

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Project Management

Five Characteristics of a Project

5. Uncertainty
Parts of the project are unique, which brings uncertainty. The
project manager is not 100% sure how this is going to work
out.
Example: The owners might keep changing their minds about
the components and functionalities of the sales software.

Key Elements

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Project Management

A project plan can be considered to have five key elements

that have to be managed:
Scope: defines what will be covered in a project.
Resource: what can be used to meet the scope.
Time: what tasks are to be undertaken and when.
Quality: the spread or deviation allowed from a desired
standard.
Risk: defines in advance what may happen to drive the plan
off course, and what will be done to recover the situation.

Balanced Plans

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Project Management

Bad Plan Example

As an example this diagram
shows what can happen.
The scope is so large that there is
no wayy the time,, resource,, and
quality constraints can result in the
project delivering, which means
there are enormous risks.

To salvage this plan, requires reducing the scope, increasing

the time, or resource, or lowering the quality standard.
Any of which will reduce the risk of failure.
The key lesson is that plans have to be balanced within the
project constraints if they are to deliver.

The Phases, Stages & Objectives of

various projects
Phase Stage Objective
Preparation or 1. Identification of
1 Project &
Initiation a project idea programme goal
are identified &
analysed
2. Preliminary Project objectives
selection & preliminary
global schedule &
cost esimated
3. Feasibility Ideas for possible
studies solutions developed
into alternative
concepts

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Project Management

The Phases, Stages & Objectives of

various projects
Phase Stage Objective
4. Evaluation & Feasibility of
decision making envisaged concepts
(post-feasibility) relevant alternatives
assessed, evaluated
5. Initial project All detailed drawings,
Implementation
planning, specification, BOM,
or construction
scheduling, schedules & other
designing documents approved
6. Contracting & Appropriate
Procurement manpower, machine,
facilities mobilized

The Phases, Stages & Objectives of

various projects
Phase Stage Objective
7. Facility Complete, tested, de-
construction and bugged, and accept
pre-operations product
8. Operations Product facility or
system operational at
Operation
all times and at
optimum cost.

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Project Management

TYPICAL LIFE CYCLE PROFILE

Level of Effort
TOTAL PROJECT LIFE CYCLE
TIME
PLAN ACCOMPLISH
PHASE I PHASE 2 PHASE 3 PHASE 4
CONCEPT DEVELOPMENT IMPLEMENTATION TERMINATION
CONCEIVE DEVELOP EXECUTE FINISH
(C) (D) (E) (F)

Phases in Project

Define Planning Closing

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Project Management

4% effort 8% effort 80% 3% effort

Project phases

Each stage
g
consists of
multiple
phases

Characteristics of a phase Specific function

Specific deliverables
Phase exit/kill point

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Project Management

Level of Activity and Overlap of Process

Groups Over Time

ACCOMPLISH

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Project Management

ACCOMPLISH

Project Life Cycle

Initiation Definition Planning Implementation Deployment

Closing Phase
Phase Phase Phase Phase Phase

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Project Management

Initiation Phase
¾ Define the need
¾ Return on Investment
Analysis
¾ Make or Buy Decision
¾ Budget Development

Definition Phase
¾ Determine goals, scope and project
constraints
¾ Identify members and their roles
¾ Define communication channels,
methods, frequency and content
¾ Risk management planning

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Project Management

Planning Phase
¾ Resource Planning
¾ Work Breakdown Structure
¾ Project Schedule Development
¾ Quality Assurance Plan

Implementation Phase
¾ Execute project plan and
accomplish project goals
¾ Training Plan
¾ System Build
¾ Quality Assurance

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Project Management

Deployment Phase
¾ User Training
¾ Production Review
¾ Start Using

Closing Phase
¾ Contractual Closeout
¾ Post Production Transition
¾ Lessons Learned

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Project Management

Application in Project Execution and

Controlling
¾ A project schedule empowers a Project
Manager to:
¾ Manage the time, cost, and resources of the project
¾ Assess the progress of the project against the
baseline
¾ Assess and communicate the impact of issues and
change management
¾ Forecast and what-If scenarios
¾ Issue Management

Project Scheduling and Tracking

¾ Scheduling is the process of deciding:

¾I what
¾In h t sequence a sett off activities
ti iti will
ill b
be
performed.
¾When they should start and be completed.
¾ Tracking is the process of determining how well you
are sticking to the cost estimate and schedule.

80

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Project Management

Some Basic Project Management

Terminology
•Deliverable: some concrete thing which is to be delivered, to the
client or internally to the development team; e.g.
¾ Specifications reports
¾ Executable program
¾ Source
S code
d
•Task/Activity: something we have to do during the project; e.g.
¾ Defining user requirements
¾ Coding a module
¾ Doing system testing
•Each task or activity will take some length of time
¾ Referred to as duration of task
¾ Sometimes measured in days
days, weeks
weeks, etc
etc.
¾ Sometimes measured in person-days, person-weeks, etc.
¾ Person-day = number of people X number of days
¾ Example: 12 person days for writing all code could mean 1
person 12 days or 4 people 3 days
¾ Note: not always true that a task that takes 1 programmer 12
days would take 12 programmers 1 day

Dependencies and Milestones

•For a given task or activity, may be impossible to start it without
some other task(s) or activity(ies) having been completed; e.g.
¾ Cannot start coding without completing design
¾ Cannot start system testing without completing code
integration and test plan
•If task B cannot start without A being completed, we say
¾ B depends on A
¾ There is a dependency between A and B
•Milestone: some achievement which must be made during the
project; e.g.
¾ Delivering some deliverable
¾ Completing some task
•Note, delivering a deliverable may be a milestone, but not all
milestones are associated with deliverables

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Project Management

Setting and Making Deadlines

•Deadline time by which milestone has to be met
¾ Some deadlines are set by the client
¾ Others are set by us on project to make sure project stays on
track
• To set a deadline for completing task T, we must consider how
long it will take to:
¾ Complete the tasks that task T depends on
¾ Complete task T itself
• If we miss a deadline, we say (euphemistically) “the deadline has
slipped”
¾ This is virtually inevitable
•Important tasksk ffor project managers
¾ Monitor whether past deadlines have slipped
¾ Monitor whether future deadlines are going to slip
¾ Allocate or reallocate resources to help make deadlines
• PERT chart and Gantt charts help project managers do these things
(among others)

References:
¾ Project Management Institute – http://www.PMI.org
¾ Project Management Body of Knowledge - PMI
¾ Project Management A Systems Approach to Planning,
Scheduling and Controlling – Harold Kerzner, PHD
¾ Gantthead - http://www.gantthead.com/
¾ Project – Planning, Analysis, Financing,
Implementation, and Review [5th Edition,] by Prasanna
Chandra [CFM – TMH Series]
¾ Project Management – A managerial approach by J.R.
Meredith and S.J. Mental, Jr. [Wiley India]
¾ Project Management – By R C Mishra, Tarun Soota

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Project Management

Questions?

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