Introduction to Project Management

Contributors Pathfinder Group Email: pathfinder.sust@gmail.com Members of pathfinder:

Md. Maksu Miah (Jihan) Moshiur Rahman Titan Hiranmaya Shib Roni Ariful Islam Sohel Amina Begum Helen Tarjina Jahan Taha

4th Year 1st Semester Department of Public Administration Shahjalal University of Science and Technology, Sylhet

Introduction to Project Management

Project Management is of fast growing importance to organisations because it deals effectively with the management of change. Both contemporary and project-based organisations are beginning to realise that the traditional form of management cannot deal with the dynamics and resulting chaos of the modern economic, social and business environment. Project management is now seen to be the modern approach in handling change; it is believed by many that project managements time has now arrived and we are witnessing a silent revolution, the transition from conventional functional management to project management. Whilst the 1980's were about quality and the 1990's were all about globalisation, the 2000's are about velocity. That is, to keep ahead of their competitors, organisations are continually faced with the development of complex products, services and processes with very short time-to-market windows combined with the need for cross-functional expertise. In this scenario, project management becomes a very important and powerful tool in the hands of organisations that understand its use and have the competencies to apply it. Macro level organisations are motivated to implement project management techniques to ensure that their undertakings small or major are delivered on time, within the cost budget and to the stipulated quality. 1.0 What is a Project? Any plan, scheme or task - including the writing of this book can be referred to as a project. Naturally the management and accomplishment of the task is then termed as project management. Project is defined by the Body of Knowledge as: ....a temporary endeavour undertaken to create a unique product or service. 1 Turner defines a project as: .....an endeavour in which human, material, and financial resources are organized in novel way, to undertake a unique scope of work, of given specification, within constraints of cost and time. 2

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The Project Management Institute, A Guide to the Project Management Body of Knowledge (PMBOK), 3rd edition, 2004 Rodney Turner, Hand Book of Project-Based Management, McGraw-Hill, 1993.

It is perhaps more helpful to look at a few of the characteristics that make projects different from other work. Projects are usually characterized by being:

Have a defined timescale. Projects have a clearly specified start and end date within which the product or service must be produced to meet a specified customer requirements. A life-cycle (a beginning and an end, with a number of phases in between). Have an approved budget. Projects are unique in nature. They do not involve repetitive processes. Have limited resources. At the start of a project an agreed amount of labour, time, money, equipment and materials are allocated to the project. A single point of responsibility (i.e. the project manager). Team roles and relationship that are subject to change and need to be developed defined and established (team building). Involve an element of risk. Projects entail a level of uncertainty and therefore carry the business risk. Have an outcome. A project has a specific outcome such as new highway, a new office building, a new piece of software, and so on. (Burke, 1992)

Examples of projects could include:

Developing a new product or service. Developing a new or modified information system. Planning a wedding Holding a university reunion

Projects are initiated to achieve a specific objective, which involves a set of coordinated and interrelated activities. There may be many reasons for initiating a project such as developing a new information system. All projects have a beginning and an end. A projects duration might be just one week or it might go on for years, but every project has an end date, and this feature makes a project different from an ongoing operations or activities. Project produces unique product or service by utilizing the limited resources allocated. Projects are designed to promote change and innovation and thus its objective or main elements can be described as completion of task within defined cost, time, and scope. 2.0 Project Management Generally, Project management is concerned with the overall planning and coordination of a project from conception to completion. It aimed at meeting the stated requirements of project and ensuring completion on time, within cost and to meet the expectations of stakeholders by maintaining required quality standards.

Project Management is defined by the Body of Knowledge as the application of knowledge, skills, tools, and techniques to project activities to meet stakeholders needs and expectations from a project. 3 Peter Morris defines Project Management as: ....the process of integrating everything that needs to be done as the project evolves through its life cycle in order to meet the project objectives. 4 Features of Project Management

Aimed to meet the stakeholders needs and expectations. Planning what needs to be done, when, by whom, and to what standards. A set of skills - specialist knowledge, skills and experience. A suite of tools - document templates, planning software, and review forms. A series of processes - time management, cost management, risk management, change management. Building and motivating the team. Coordinating the work of different people. Monitoring work being done. Managing any changes to the plan. Delivering successful results. (APMs BOK)

Project management can be considered as the process of bringing together all the project activities, resources and people necessary to carry out the project goals and objectives successfully. It utilizes the existing organizational structures and resources and applies a set of tools and techniques to accomplish the task within the constraints of time, cost and scope. 3.0 Project Management Triangle Projects need to be controlled to meet their objectives and deliver benefits. The objectives of project are defined in terms of triple project constraints scope, time, and cost. A further modification of the constraints separates product quality from scope, and turns quality into a fourth constraint.

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The Project Management Institute, A Guide to the Project Management Body of Knowledge (PMBOK), 3rd edition, 2004

Peter Morris, The Managements of Projects, Thomas Telford, 1994

Cost

Cost

Quality

Quality

Expectations constraints

Time

Scope

Time Scope

Figure-1: The tripe constraints

Figure-2: The project management diamond

The time constraint refers to the amount of time available to complete a project. For example: we are arranging for a stall in Boishakhi Mela that starts in five days.

Performance Required performance

Target

Cost Budget limit

Due date

Time

Figure-3: Direct project goals performance, cost, time

The cost constraint refers to the budgeted amount available for the project. For example: arranging the stall must not spend more than 12000 Tk. The quality constraint refers that the project will satisfy the needs for which it was intended. For example: developing a searchable and informative website. All the work that has to be done to achieve the time, cost and quality objectives defines the project scope. The scope constraint refers to what must be done to produce the project's

end result. The scope can change over time, and it is the project managers responsibility to ensure the project will still deliver its defined benefits. For example - you are constructing a building on a lot that has a height restriction of 50 feet. (APM BOK, 2006) 4.0 Types of Project Much of what the project will comprise and consequently its management will depend on the category it belongs to. Generally projects can be classified into the followings. Construction Projects The project produces an artefact. The value generated by the project is embedded in the artefact. The artefact may be a complex system with human and mechanical components. For example: customer call centre, IT system, method guidebook, and warship. Research Projects The project produces knowledge. The knowledge may be formally represented as models, patterns or patents or the knowledge may be embedded in a working process or artefact. For example: business modelling, developing a new species of wheat, developing novel approaches to project management. Reengineering Projects The project produces a desired change in some system or process. For example: renumbering the BD telephone system, designing and installing a WiFi system. Procurement Projects The project produces a business relationship contractually based with a selected supplier for a defined product or service based on a fixed specification and/or a defined specification process. For example: imposing new rules and measures on a regulated industry, outsourcing a specific construction or research project. Business Implementation Projects The project produces an operationally effective process. The value generated by the project is embedded in the process. For example: developing a new business process to repackage and exploit existing assets, installing ecommerce. Some projects are difficult to classify under this scheme e.g. Moving offices, putting a man on the moon by the end of the decade, new Labour and this difficulty arises from an ambiguity about the purpose of the project. (Project Types, veryard.com) On the basis of geographical segmentations projects can be classified into followings.

International MDG, PRSP, Regional - SAFTA National Padma Bridge. Provincial or Divisional FIVDB

Area Public University Urban Waste Management Community Mother and Child Health Care. (Chadha, 1989)

5.0 Project Manager A project manager is a professional in the field of project management. He is responsible for accomplishing the stated project objectives. Key project management responsibilities include creating clear and attainable project objectives, building the project requirements, and managing the triple constraint for projects, which is cost, time, and scope. 5 Derivative responsibilities of a project manager include:

identifying the project requirements; establishing clear and achievable objectives; adapting the specifications, plans, and approach to the different concerns and expectations of the various stakeholders.

The project manager can be considered as the person who is responsible for integrating and coordinating all the activities of a project and directs them to complete the projects successfully. Project managers must not only strive to meet specific scope, time, cost, and quality goals of projects, they must also facilitate the entire process to meet the needs and expectations of the people involved in or affected by project activities. Qualities of a Project Manager The success of a project greatly depends on a project manager. As a single point of responsibility project manager must have a range of qualities including: Leadership It gives a project manager complete control on the project activities and it includes decision-making ability, problem-solving ability, communication skills etc. People management It helps to hold the project team, customers and suppliers together in common purpose towards the right objectives. Effective communication It keeps the smooth flow of information about goals, performance, responsibility, expectations and feedback. It supports individuals and team achievements by creating explicit guidelines. Influencing It requires an understanding of the formal and informal structure of all organization involved in the project.

Project Management Institute, A Guide to the Project Management Body of Knowledge, 3rd Edition, Newtown Square, Pennsylvania, 2004

Negotiation It helps a project manager to bargain in a rational way and settle required activities as well as the cost. Conflict management There is a great propensity of conflict in project management and a project leader must have the capability to mitigate them in a rational manner to keep the smooth flow of work. Planning It includes schedule planning, technical planning, cost planning, individual and team planning and these are required to perform by a project leader efficiently to achieve the goals and objectives of the project. Contract management A project leader must have the capability to direct its team to fulfil the contractual obligations in an efficient manner. Estimating It includes estimating the project duration, cost and the more one can estimate accurately the more chances of success of a project. Problem solving A project leader must come up with innovative solutions to conflicts that arise instantly. Creative thinking It enables a project manager to generate new ideas, concepts and alternative solutions in order to solve problems and achieve successful project outcomes. Time management It is one of the most important duties of a project manager to complete the project within defined time to meet the customer requirements. (Haughey, projectsmart.co.uk) 6.0 Project Management Body of Knowledge (PMBOK) The Project Management Body of Knowledge (PMBOK) is a collection of processes and knowledge areas generally accepted as best practice within the project management discipline. The BOKs currently available are:

The APMs BOK- Association of project Managers (UK) The PMIs BOK project management institute (USA) The IPMIs BOK International Association of Project Managers.

The PMBOK describes project management under the following nine knowledge areas which is also known as functions of project management are described below and as illustrated in figure-4 below.

Project Management

Project Integration Management Project Plan Development Project Plan Execution Integrated Change Control

Project Scope Management Initiation Scope Planning Scope Definition Scope Verification Scope Change Control

Project Time Management Activity Definition Activity Sequencing Activity Duration Estimating Schedule Development Schedule Control

Project Cost Management Resource Planning Cost Estimating Cost Budgeting Cost Control

Project Quality Management Quality Planning Quality Assurance Quality Control

Project Human Resource Management Organizational Planning Staff Acquisition Team Development

Project Communication Management Communications Planning Information Distribution Performance Reporting Administrative Closure

Project Risk Management Risk Management Planning Risk Identification Qualitative Risk Analysis Quantitative Risk Analysis Risk Response Planning Risk Monitoring and Control

Project Procurement Management Procurement Planning Solicitation Planning Solicitation Source Selection Contract Administration Contract Closeout

Figure-4: Overview of project management knowledge areas and project management processes

Project Integration Management describes the processes required to ensure that the various elements of the project are properly coordinated. Project Scope Management describes the processes required to ensure that the project includes all the work required, and only the work required, to complete the project successfully.

Project Time Management describes the processes required to ensure timely completion of the project. Project Cost Management describes the processes required to ensure that the project is completed within the approved budget. Project Quality Management describes the processes required to ensure that the project will satisfy the needs for which it was undertaken. Project Human Resource Management describes the processes required to make the most effective use of the people involved with the project. Project Communications Management describes the processes required to ensure timely and appropriate generation, collection, dissemination, storage, and ultimate disposition of project information. Project Risk Management describes the processes concerned with identifying, analyzing, and responding to project risk. Project Procurement Management describes the processes required to acquire goods and services from outside the performing organization. (PMBOK, 2004) 7.0 Project Management Environment Today, there is a growing awareness and concern for the impact of infrastructure and facility construction on the physical environment. Fortunately, today's technological disciplines responsible for such work are becoming attuned to the idea of mitigating the adverse impacts of their projects. This applies to both the implementation and shorter term practical construction impacts of the project as well as its conceptual development and consequent long term impacts. However, today's project manager also needs to be attuned to the cultural, organizational and social environments of the project. Understanding this environment includes a number of issues:

Stakeholders (all interested parties) Client requirements Companys organization structure Market requirements Competitors New Technology Rules and regulations Economic cycle

For project management to be effective they must have a thorough understanding of the project environment which may will be changing and so continually shifting the goal posts. The project environment consists of the numerous stakeholders and players that have an

input or are affected by the project. All must be managed as any one person could derail the product. (Burke, 1992) 8.0 Barriers of a Project Many things can go wrong in project management. These things are often called barriers. Here are some possible barriers:

Poor communication; Disagreement; Misunderstandings; Bad weather; Union strikes; Personality conflicts; Poor management; and Poorly defined goals and objectives. (Haughey, projectsmart.co.uk)

9.0 Development of Project Management as an Alternative Approach of Management Project management has been practiced since early civilization. Until 1900 civil engineering projects were generally managed by creative architects, engineers, and master builders themselves, for example Vitruvius (first century BC), Christopher Wren (1632 1723), Thomas Telford (17571834) and Isambard Kingdom Brunel (18061859). It was in the 1950s that organizations started to systematically apply project management tools and techniques to complex engineering projects. As a discipline, project management developed from several fields of application including civil construction, engineering, and heavy defence activity. Two forefathers of project management are Henry Gantt, called the father of planning and control techniques, and Henri Fayol for his creation of the five management functions that form the foundation of the body of knowledge associated with project and program management. Both Gantt and Fayol were students of Frederick Winslow Taylor's theories of scientific management. His work is the forerunner to modern project management tools including work breakdown structure (WBS) and resource allocation. During 1950's two mathematical project-scheduling models "Critical Path Method" (CPM) and "Program Evaluation and Review Technique" (PERT) were developed. These mathematical techniques quickly spread into many private enterprises. Because of technology revolution (1958 to 1979), facilitated the emergence of several project management software companies including Artemis (1977), Oracle (1977), and Scitor Corporation (1979). In the 1970s other project management tools such as Material Requirements Planning (MRP) were also introduced.

Between the middle 1960s executives began searching for new management techniques & tools and organizational structure that could be quickly adapted to a changing environment. In 1969, the Project Management Institute (PMI) was formed to serve the interests of the project management industry. By the 1980 companies began using the principles of PM for the implementation of TQM. In 1981, the PMI Board of Directors authorized the development of what has become A Guide to the Project Management Body of Knowledge (PMBOK Guide), containing the standards and guidelines of practice that are widely used throughout the profession. During 1990s companies had realized that implementation of project management was essential for their organizations because of different factors and driving forces like competitiveness and customer expectations. Finally, companies began to recognize the benefits of implementation of project management. Many new concepts had developed for the support of project management. The concept was concurrent engineering, empowerment, re-engineering, and scope change control and risk management. In this era mergers and acquisitions create more multinational companies and multinational project management became a major challenge. It is difficult to achieve maturity as quickly as possible then maturity models for project management provide corporation with the basis of strategic planning for project management. Concept of Six Sigma is being applied to project management for continuous improvement in PM methodology. Virtual project teams and virtual project management become more common in this era. As project management continuous to grow and mature, many tools & techniques and worldwide standards will be established. 6 10.0 Relationship between Project Management and General Management General management encompasses planning, organizing, staffing, executing, and controlling the operations of an ongoing enterprise. General management also includes supporting disciplines such as legal contracts, computer system, sales and marketing, personnel and human resource management. General management skills provide much of the foundation for building project management skills. Some general management skills that are highly likely to affect most projects are leading, communicating, negotiating, problem solving, and influencing the organization. These skills are well documented in the general management literature, and their application is fundamentally the same on a project.
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Harold Kerzner, Project management A system approach to planning scheduling and controlling, Wiley, 2009 Evolution of Project Management part 1 & 2, www.projectsmart.co.uk Dennis Lock, Project Management, 9th edn., Gower Publishing Ltd., 2007

The Project Management Body of knowledge Generally accepted project management Knowledge and practice

General Management Knowledge and practice

Application Area Knowledge and practice

Figure-6: Relationship of Project Management to Other Management Disciplines

Application areas are categories of projects that have common elements significant in such projects, but are not needed or present in all projects. Such as management specializations which is government contracting, community development, or new product development.

Now we will compare general management and project management on the basis of concept of project and non-project. Project management differs from general management largely because projects differ from non projects. Projects have a defined timescale. The major differences between general management and project management are in the nature of projects, and the fact that most general managers have a full time team that reports to them, whereas project managers often have teams assigned only for the duration of project. Each project is unique. Project managers must be creative and flexible, and have the ability to adjust rapidly to changes. When managing non-projects the general manager does almost everything is routine and is handled routinely by subordinates. For the project manager, almost everything is an exception.

Projects are temporary in nature. One more difference that is self evident between project management and operation management is that operations have permanence while projects are rather temporary in nature. Projects are carried out in a transient organization. The organization is spread over different geographical areas. The project target can, over the years of implementation change. Thus project management is hitting a moving target from a moving platform whereas operation management is hitting a merely shifting target from a stationary platform. Projects have a higher potential for conflict than non-projects. General management has direct control over the staff whereas the control by project management over the staff is limited. Naturally they will also not to be bound by the organizations own work ethics and discipline. Many may find this uncomfortable, as it would require a lot of patience and skilled listening and negotiating capability. Projects involve an element of risk. Another difference between projects management and general management is that project managers are often to work with which is very difficult to estimate duration, costs, and resources required, because the work is new or it has been done only a few times. The general management, on the other hand, is often associated with repetitive tasks that have enough history for times and costs to be known. Project budgets and schedules are constructed differently from standard, nonproject budgets and schedules. Budgets for non-projects are primarily modifications of budgets for the same activity in the previous quarter or year. By contrast, project budgets are newly created for each project and often cover several periods in the future. A project budget is derived directly from the project plan that calls for specific activities. Projects often dont fit into traditional managerial hierarchy. A reasonably welldefined managerial hierarchy still exists in general management; subordinates report to superiors and the lines of authority are clear. In project management, this is rarely the case. The project manager may be relatively low in the hierarchical chain of command and still have a high level of responsibility for completing a project successfully. Responsibility without the authority of rank or position is so common in project management that it is the rule, not the exception. Project involves a single point of responsibility. New product development is seen as a project management and should be entrusted to a man other than operations manager. If management persists with the operations manager and his team, innovations and successful completion of the task is less likely than if the job is given to a project manager. (PMBOK, 2004 and Stanley, 2007)

References 1. Association for Project Management, APM Body of Knowledge, website, accessed 10:13pm, 22 April 2012, http://www.apm.org.uk. 2. Burke, Rory, Project Management Planning and Control Techniques, 2nd edn., John Wiley & Sons, Australia, 1992. 3. Chadha, Skylark, Managing Projects in Bangladesh, University Press Limited, Dhaka, 2nd revised edn., 1989. 4. Evolution of Project Management part 1 & 2, website, accessed 8:35pm, 25 April 2012, http://www.projectsmart.co.uk. 5. Haughey, Duncan, An Introduction to Project Management, website, accessed 8:35pm, 25 April 2012, http://www.projectsmart.co.uk. 6. Types of Project, website, accessed 10:13pm, 25 April 2012, http://www.veryard.com. 7. The Project Management Institute., A Guide to the Project Management Body of Knowledge (PMBOK), 3rd edition, 2004. 8. Wiley Pathways Project Management, Stanley E. Portny, Samuel J. Mantel, Jr., Jack R. Meredith, Scott M. Shafer, Margaret M. Sutton, 1st edn., Wiley, 2007.