Make up Lecture

Introduction To Project Management Initiation of Projects Project Life Cycle Project Management Processes

Topics:
Evolution of Project Management Project and Project Management Project Management Office Project Vs Operations Why Project Management? Role of Project Manager Project Organisational Structures

Topics

Project Initiation and Selection Models Project life cycle Project Management Processes Initiation Process Planning Process Execution Process Monitoring and Control Process Closing Process

Evolution of Project Management

In early 1970s it was stated in project management community that project management is the accidental profession. Its a common belief that project management as a new profession had been defined in the late twentieth century. However; Project management as a separate discipline exists from several thousand of years. Project management techniques has been used either formally or informally for centuries to plan for, implement, and meet changes. In 1950s, Project Management was formally recognized as distinct contribution arising from the management discipline. Since early 1950s, names and labels have been given to the elements of the project management discipline, helping to facilitate its further development as a profession.

Project Management Development Era-wise:

Stage Era Characteristics

Pre 1950s

Informal, No generally accepted or defined Methods

1950s

Formal tools and techniques were developed to manage complex projects Focus is shifted to the strategic role of projects, processes must be put in place to deliver the end objective of the project.

1990s

Project Management Growth history

Modern day project management is associated with Henry Gantts development of the bar chart (early 1900s)- planning and controlling of projects CPA, EV,VE, WBS, CPM, PDM and PERT developed by military and aerospace projects 1950s and 60s era of usa and uk. Typical projects of this era Apollo space programme , Construction of nuclear stations 1970s boundaries expanded from construction and military to other disciplines. APM and PMI become strong by establishing links with the industry 1980s increase stake holder influence, integration of time, cost and quality was initiated then extended to scope and organisational break down structure extending the boundaries and looking into broader picture addressing the needs of all stakeholders First project management body of knowledge (PMBOK) was established in 1987, offered an integrated and structured approach rather than an ad-hoc collection of tools and techniques. 1990s project manager becomes integrator, 1990s and 2000s management by project approach leads more leaner, effective organisation, client importance concept, more innovative, TQM, Risk Management, PMO develops project management culture.

Leading Projects through Human Civilisation:

Examples of some of the leading projects from ancient times to present:

The Great Pyramids of Egypt (circa 2700 to 2500 B.C.) The Grand Canal of China (486 B.C. to the present) The Great Wall of China (221 B.C. to 1644 A.D.) The first steam engine (1704) The first Trans- Atlantic cable (1866) The Suez Canal (1859 to 1869) The Manhattan Project (1942 to 1946) Channel Tunnel (1988 to 1994) Burj Khalifa (2004 to 2009)

A project is a temporary endeavor undertaken to create a unique product, service or result.

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

Characteristics of Project
Temporary Characteristics of Projects Unique

Temporary Definitive beginning and end Unique New undertaking, unfamiliar ground
Composed of a series of interdependent tasks Has a risk, uncertainty

 Designing and constructing a building, a road or a ship. Designing and testing a new prototype (New car) Launching new product (advertising and marketing project) Implementing a new computer system (IT Project) Olympics, tour de France (Sports Project) World tour, One time outing (Entertainment Project) Moving house or going on holiday (Domestic Project) Planning a wedding Executing an environmental clean up of a contaminated site

Application of knowledge, skills, tools, and techniques to project activities to meet stakeholders needs and expectations from project.
Project Management in practice consists of managing people, anticipating problems, utilising resources, and pulling all parts together.

Project Success Criteria

Key Performance Indicators for projects included, but not limited to:

Scope

Time Cost Quality Environment Risk Value Customer Satisfaction

Project Success Criteria

Projects are broadly categorized into one of these three types:

Market Driven such as (Focused on Customer trends) Crises Driven such as (Response to emergency) Change Driven such as (Technology upgrades)
Understanding the purpose of the project is essential so that appropriate trade-offs in time, cost, scope, quality and customer satisfaction could be done while managing the project.

Overview of Project Management

 Identifying requirements Addressing the various needs, concerns, and expectations of the stakeholders as the project is planned and carried out. Balancing the competing project constraints including, but not limited to:
Scope Quality Schedule Budget Resources Risk

 A Project Management Office (PMO) is an organizational body or entity assigned various responsibilities related to the centralized and coordinated management of those projects under its domain. The responsibilities of a PMO can range from providing project management support functions to actually being responsible for the direct management of a project. The projects supported or administered by the PMO may not be related other than by being managed together. A PMO can be delegated authority to act as an integral stakeholder and a key decision maker during the beginning of each project, to make recommendations, or to terminate projects or take other actions as required to keep business objectives consistent. A PMO may be involved in selection, management, and deployment of shared or dedicated project resources.

 Operations are an organizational function performing the ongoing execution of activities that produce the same product or provide a repetitive service. Examples include: production operations, manufacturing operations, and accounting operations

Though temporary in nature, projects can help achieve the organizational goals when they are aligned with the organizations strategy.
Projects require project management while operations require business process management or operations management

Why Project Management?

Project management application is becoming more and more important in today's business environment.

Compression of the Product Life cycle Global Competition (Quality Based. Cost reduction, Meet Deadlines) Knowledge explosion (Complexities due to rapid development in technology ) Corporate Downsizing (Effective Resource Management) Increased Customer Focus Multi dimensional stakeholders Complexities of Modern Businesses (Effective Risk Management)

Continuously changing scenarios

Benefits of Project Management

Client Satisfaction Single point of responsibility Estimating Network Analysis (CPM) Fast Track Schedule Bar chart Project Integration Reporting interfaces Trends Analysis Procedures to suit project Project office Closeout Reports Marketing Address the need of Environment (EIAs)

 The role of project manager is distinct from a functional manager or operations manager. A Project Manager is the person assigned by the performing organization to achieve the project objectives. A Functional Manager is focused on providing management oversight for a administrative area.

An Operations Manager is responsible for a facet of the core business.

Project Manager

The Project Manager is responsible for managing the project within the constraints of scope, quality, time and cost to deliver specified requirements and meet or exceed! customer satisfaction.

Role of a Project Manager

As a single point of responsibility for the project, the role of project manager is very crucial for the successful outcome of project. Project manager is responsible for following important aspects of project: To integrate all the components of the project Responsible for developing plans and ensuring their practicality (Time, cost, quality, scope etc) Planning and arrangement of resources for project Project team building Motivation and direction of project team members Establishment and maintenance of effective communication system

Role of a Project Manager

Continuous monitoring of project progress Identification and correction of deviations from baselines (time, cost, scope, quality etc) To resolve any project Conflicts Effective liaison between various stake holders and build working relation between them Procurement aspects of the project Development of effective project culture Preparation of progress reports for top management and client

Role of a Project Manager

 Effective project management requires that the project manager possess the following characteristics:

Knowledge What PM knows about project

management?

Performance What PM is able to do or

accomplish while applying the Knowledge?

Personal How PM behaves when performing

project?

Skills and Personality Traits of Project Manager

Leadership Team Building Conflict resolution Excellent Communication skills Organisational Skills Operational flexibility (Change Management skills) Decision making Project Management Expertise Technical Know how Ability to keep the client happy

 Organizational structure is an enterprise environmental factor which can affect the availability of resources and influence how projects are conducted. Organizational structures range from functional to projectized, with a variety of matrix structures between them. Functional Structure Weak Matrix Structure Balanced Matrix Structure Strong Matrix Structure Projectized Structure

Organization Structure Project Characteristics Project Manager's Authority Resource Availability Who controls the project budget Project Manager's Role

Matrix Functional Weak Matrix Little or None Little or None Functional Manager Part-Time Limited Balanced Matrix Low to Moderate Low to Moderate Mixed Strong Matrix Projectized

Moderate to High to High Almost Total Moderate to High to High Almost Total Project Manager Full-Time Project Manager Full-Time

Limited Functional Manager Part-Time

Full-Time

Project Management Administrative Staff

Part-Time

Part-Time

Part-Time

Full-Time

Full-Time

Initiation of Projects:
Projects are typically authorized as a result of one or more of the following strategic considerations:

Market demand Organizational need Customer request Technological advancement Legal requirements Ecological Impacts Social Needs

Project Selection
The selection of the right project for future investment is a crucial decision for the long term survival of the company. Project selection is making commitment for the future. Selection methods help organizations decide among alternative projects and determine the tangible/nontangible benefits to the company of choosing or not choosing the project. Project selection methods will vary depending on the company, the people serving on the selection committee, the criteria used, and the project.

Most organizations have a formal, or at least semiformal, process for selecting and prioritizing projects.