Methodology of this Course on Project

Management
To acquaint course participants with all the salient
aspects of project management in accordance with the
present body of scientific literature and research on this
challenging and interesting field of management science

To show that the subject of project management has

evolved quite rapidly into a substantive body of
knowledge, a proper understanding of which is
indispensable for sucessfully managing the modern
enterprise

To show and encourage the course participants that the

theoretical knowledge acquired in this course can - with
the appropriate context-related modifications - be applied
to real-life situations in business, public-sector and non-
profit enterprises

To stimulate interest in project management as a

prospective career option
 Evaluation of Course Participants
• acquiring knowledge is good
• applying knowledge is better
• analytical approach, critical thinking, inquisitive nature
• broad subject focus

• Quizez (important definitions)

• Assessment (each course participant is expected to show that he or she has a

broad understanding of project management)
• Text Book: David I. Cleland / Lewis R. Ireland, Project
Management: Design and Strategic Implementation, 4th ed.,
• Optional Literature: 1.Gray, Clifford E. / Larson, Erik W.: Project
Management: The Managerial Process, 2. ed., 2003
• 2.Gregory T. Haughan, Effective Work Breakdown Structures,
Management Concepts, 2002.
• 3. Harold Kerzner, Project Management Workbook to
Accompany Project Management: A Systems Approach to
Planning, Scheduling and Controlling, John Wiley & Sons, 2000.
 Course Highlights
• Introduction to project management

• Strategic relevance of project management

• Organizational aspects

• Selecting projects in a complex environment of influencing factors

• Defining and planning projects

• Mathematical techniques used in project planning and execution

 Course Highlights
Techniques used for evaluating and controlling projects and
managing project information

Leading, communication and teamwork in projects

Cultural aspects of interest in projects

International project management

Insights into various aspects of project management from

the perspective of Pakistani and foreign project
practitioners
 Career Opportunities in Project
Management
• Rising demand for project management experts and practitioners has been observed
as middle management declines

• Complex and dynamic business environment favours a „shift“ towards project

management

• Enterprises are becoming increasingly inclined towards experimenting with, and

adopting project management organizational forms, tools and techniques

• Large number of projects are being executed at any one point in time by local and
international organizations as well as under bi- and multilateral agreements in
developing countries such as Pakistan

• Professional associations (e.g. Project Management Institute) are establishing

themselves in Pakistan
 Indicators of Emerging Interest in
Project Management
• Very large number of publications (books, articles, etc.) and appearance

• of journals on the subject of project management since the 1950‘s

• Adoption by many business schools throughout the world of the subject of project
management as an integral element of their curricula

• Many business corporations, public-sector enterprises and non-profit organizations

are expending large sums of money for project management training courses,
seminars and workshops for their staff

• Comparatively good employment prospects for project management experts and

practitioners

• Associations seeking to promote project management (e.g. The Project Management

Institute with representation in 150 countries - including three chapters in Pakistan -
and with a global membership presently standing in excess of 150,000
(see http://www.pmi.org)
 What is a Project?
A project is a sequence of unique, complex and connected activities having one goal or
purpose that must be completed by a specific time, wthin budget and
according to specification

(Robert K. Wysocki / Robert Beck Jr. / Daniel B. Crane, Effective Project Management, John Wiley &
Sons, 2002, p. 65)

A project is a complex, nonroutine, one-time effort limited by time, budget, resources, and performance
specifications designed to meet customer needs

(Clifford F. Gray / Erik W. Larson, Project Management: The Managerial Process, 2. ed., p. 15)

Projects are ad hoc, resource-consuming activities used to implement organizational strategies, achieve
enterprise goals and objectives, and contribute to the realization of the enterprise‘s mission

(David I. Cleland / Lewis R. Ireland, Project Management: Design and Strategic Implementation, 4th ed., p.
10)
 Examples

• Developing a new product or service

• Effecting a change in structure, staffing or style
of an organization
• Developing or acquiring a new modified
information system
• Constructing a building or infrastructure
• Implementing a new business process or
procedure
 Project – Programme - Process
Programmes are resource-consuming
combinations of organizational
resources which have a common
purpose in supporting the
enterprise‘s purposes
A programme could encompass
several projects
A process is a system of operations in
the design, development and
production of something ... inherent
in such a process is a series of
actions, changes, or operations that
bring about an end result

PROGRAMME X

A B

C D E

David I. Cleland / Lewis R. Ireland, Project Management: Design and Strategic Implementation, 4th ed., pp. 10 & 39.
 The Defining Characteristics of a Project
• ESTABLISHED OBJECTIVE

All projects must have at least one prespecified objective

• UNIQUENESS

No two projects are completely alike. Always there will be at least one unique defining feature

• LIFE SPAN

All projects have a beginning and end point in time

• COST

All projects incur a resource cost in terms of capital expenditure, manpower requirement etc.

• TECHNICAL PERFORMANCE REQUIREMENTS

All projects must meet certain prespecified performance requirements, for e. g. development of a new
product or service having a desired minimum quality standard level
 Project Categories
Projects can be grouped together in categories, of which many kinds have been
proposed in the literatue on project management. Examples:

• Compliance, Strategy and Operational Projects

• Goods, Services and Organizational Processes
• Small, Medium and Large-Scale Projects
• Low, Medium and High-Risk Projects
• Immediate, near and long-term ROI projects
• Low, medium, high as well as mature / immature technology-based projects
• Low, medium, high as well as no margin and loss-making projects
• Priority-based projects defined in terms of urgency of need for business, customer and
meeting market requirements
• Size in terms of capital expenditures, duration, manpower requirement, geographic span or
a combination of these

David I. Cleland / Lewis R. Ireland, Project Management: Design and Strategic Implementation, 4th ed., pp. 92-93.
 Levels of Project Complexity
Examples of „Simple“ Projects Examples of „Complex“ Projects
undertaken by individuals and/or groups undertaken by commercial enterprises
and/or public-sector organizations

• Redesigning your sitting room • Planning and executing construction

of a
• Writing a research paper hydroelectric or atomic power station

• Organizing a disaster relief collection • Erecting a dual-purpose (road, rail)

in your neighbourhood bridge over a major river

• Organizing a painting exhibition at • Organizing a large-scale international

your industrial exhibition
school or university
• Designing an ocean cruise liner
 Selected Factors Which Can
Influence Big Projects
 Nature of the Undertaking
 Scope
 Complexity
 Time
 Capital requirement
 Manpower requirement
 Technology
 Specialization and expertise
 Information
 Planning, Organization,
Optimization
 Priorities
 Strategic „Fit“
 Risk and uncertainty
 Evaluation and controlling
 Adaptibility
 Cultural considerations
(especially in regard to
international project
undertakings)
 Conflict potential,
leadership and motivation
 Stakeholder interests
 Projects in a Historical
Perspective
Projects are presumably as old as mankind and the community

Projects in antiquity and the medieval period tended, by and large, to be architectural in
nature

Selected examples of prominent projects in the historical context:

• The seven wonders of the ancient world

• The gothic cathedrals of western Europe
• The palaces, mosques and mausoleums of the Mughals and Ottomans
• Temple complexes in India and South-East Asia and Central and South America
• Castles, fortresses, military campaigns

Since the medieval period - and in consideration of the industrial revolution, advancements in
technology, enhanced resource availability, knowledge, specialization and managerial capabilities
–
major projects have become more complex and diverse in nature and scope
 Types of Major Contemporary
Projects
• Transport Infrastructure (roads, rail, bridges, canals, air- and seaports)

• Water and Electricity (irrigation Systems, hydroelectric dams, nuclear and

conventional power generation plants)

• Industrial (large factory complexes)

• Architectural (high-rise buildings and „skyscrapers“)

• Military (design and development of major weapon systems, war)

• Health (finding cures for common diseases)

• Education (building universities and schools)

 Selected Examples of Major
Historically „Modern“ Projects
• Transport Infrastructure (Panama and Suez Canals, the channel tunnel between Great
Briain and France)

• Water and Electricity (Three-Gorges River Project in China)

• Industrial (Large factory complexes)

• Architectural (The Empire State Building and World Trade Centers in New York City)

• Military The Manhattan Project

• Health (AIDS, Hepatites Yellow Fever etc)

• Education (Big university complexes)

 Examples of Mega-Projects
Undertaken or Planned in Pakistan
• Tarbela and Mangla dams • Kot Addu power generation plant

• Kalabagh dam (?) • Karachi Nuclear Power Plant

• Indus River basin irrigation • Karachi Steel Mills

projects
• Saindak copper mine
• Karakorum Highway
• Port Qasim
• Islamabad – Lahore Motorway
• Shah Faisal Mosque
• Jinnah International Airport at
Karachi
 Background Information on Project
Management
• Project Management is a comparatively recent addition to management science

• Management, in some manifestation or the other, has in fact been excercised in

the planning and execution of complex project undertakings for thousands of
years

• Project Management tools and techniques were first systematically applied by

large-scale, complex projects by the United States Department of Defence and in
the aerospace industry

• Project Management arose out of the need to effectively and efficiently manage
complex defence-related projects for which conventional managerial techniques
were not sufficiently adequate
 What is „Project Management“ (?)
Project Management is a method and a set of techniques
based on the accepted principles of management used for
planning,
estimating and controlling work activities
to reach a desired end result on time
– within budget and according to specification

Robert K. Wysocki / Robert Beck Jr. / David B. Crane, Effective Project Management, 2. ed., John Wiley & Sons,
2002, p. 79
Phases of Project Management

Defining Closing

PROJECT
X

Planning Controlling

Executing
 The Functions of Project
Management
Control
Who judges results and by what standards?

Directing Planning
Project
Who decides what Resources What are we aiming
and when? for and why?

Motivation Organizing
What brings out the What‘s involved and
best in people? why?
David I. Cleland / Lewis R. Ireland, Project Management: Strategic Design and Implementation, 4th ed., p. 42.
 A „Typical“ Project Life-Cycle
Dollars of Manhours (level of Effort)

Phase 1: Conceptual Phase 2: Planning Phase 3: Execution Phase 3: Termination

• Implement Schedule • Procure Materials • Train functional

• Identify Need
• Conduct Studies and • Build/ test tooling personnel
• Establish Feasibility
• Develop support • Transfer materials
• Identify Alternatives
• Prepare Proposal analyses requirements • Transfer
• Design System • Procure System responsibility
• Develop Basic
• Build/test prototypes • Verify Performance • Release resources
Budget and Schedule
• Analyze results • Modify as required • Reassign project
• Identify Project Team
• Obtain approval for team members
production

David I. Cleland / Lewis R. Ireland, Project Management: Design and Strategic Implementation, 4th ed., p. 50.
 Managerial Actions in the Project Life-Cycle Phases

(1) Conceptual Phase

Determine that a

• project is needed

• Establish goals

• Estimate the resources

• that the organization
• is willing to commit

• Sell the organization

• on the need for a
• project approach

• Make key personnel

• appointments
 (2) Planning Phase
Actions to be taken

• Define the project organization approach

• Define the project targets

• Prepare the schedule For the execution

• Phase

• Define and allocate tasks and resources

• Build the project team

 (3) Execution Phase

• Perform the work of the project i.e.

design, construction, production,
• Site activation,
• testing, delivery etc.
 (4) Termination Phase
• Assist in transfer of Project product

• Transfer human and non-human resources

• to other organizations

• Transfer or complete Committments

• Terminate project

• Reward personnel
 Project Resource Requirements
Over Time
Level of Resource required

Bu
dge
t ($
)
d
g ne
s i En
s gin
e la eer
nn ing
o pe
rs rs on
pe ne
g la
e tin ssi
rk gn
a ed
M

Conceptual Definition Production Operational Divestment

Time

David I. Cleland / Lewis R. Ireland, Project Management: Design and Strategic Implementation, 4th ed., p. 51.