Project Management

9/15/2013

Prof. K. R. Chari

Major topics

What is a project? Basic attributes of a project Characteristics of a project Project family tree Types of projects Project life cycle phases Concepts of project management Steps in project management Project management vs Functional management
9/15/2013 Prof. K. R. Chari

What is a project?

A project is an interrelated set of activities that has definite starting and ending points and that result in a unique product or service Cuts across organizational lines they need varied skills of different profession Uncertainties like new technology & external environment can change the character of the project Personnel, materials, facilities etc. are temporarily assembled to accomplish a goal within a specified time frame and then disbanded Upon finish, a project releases lot of resources which were engaged in execution of the project
9/15/2013 Prof. K. R. Chari

Basic attributes of a project

Every project has three attributes Input characteristics

What the project will consume?

Output characteristics

Raw material, energy, manpower, finance & organization Necessary to evaluate nature & magnitude of inputs

May generate goods & services

Must have clear idea about quantity & quality Also assess financial aspects

Social cost benefit characteristics

Large projects impacts the equilibrium of the society Careful evaluation of the sacrifice the society will make and benefit that will accrue have to be done

9/15/2013

Prof. K. R. Chari

Feasibility & project appraisal

Feasibility should be evaluated by identifying project characteristics, studying the project implementation & environment Appraisal must be carried out In explicit well defined & standardized terms Should be based on economic logic Informal & cursory treatment should be replaced by systematic & sound evaluation techniques

9/15/2013

Prof. K. R. Chari

Definition of a Project

Project Management Institute, USA A project is a one shot, time limited, goal directed,

major undertaking, requiring the commitment of varied skills & resources It also describes project as a combination of human and non human resources pooled together in a temporary organization to achieve specific purpose

9/15/2013

Prof. K. R. Chari

Characteristics of a Project
A project is a big work basically it is a work one whole thing there can be contributions from many different people Special features that will distinguish a project from any ongoing activity e.g., production, are summarized below Objectives: Fixed set, once achieved the project

ceases to exist Life Span: Has to end, can not go on endlessly

9/15/2013 Prof. K. R. Chari

Characteristics of a Project

Special features Contd Single entity: main responsibility lies with Project

Manager Team work: calls for team work Life cycle: Growth, Maturity & Decay, also has a learning component Uniqueness: No two projects are exactly similar Change: Due to environmental factors or technology a project sees many changes
9/15/2013 Prof. K. R. Chari

Characteristics of a Project

Special features Contd Successive principle: Details of a project are

revealed as the project progresses over time Made to order: Always made to the order of the customer Unity in Diversity: Interrelated set of activity but diverse High level of subcontracting Risk & Uncertainty: Every project has risk & uncertainty; Ill defined projects will have high degree of risk
9/15/2013 Prof. K. R. Chari

Project Family Tree

Plan National plan for growth, Corporate plans Programs Health, Education, Infrastructure Development Project Power plants, Schools, Hospitals, Housing, Roads Work Package Water supply & distribution package, Power distribution Task Award of contract Activity Excavation, Laying of Cables, Preparing drawings

10

9/15/2013

Prof. K. R. Chari

Types of Project - Parameters

Geo Spread National & International Sector Industrial & Non Industrial Technology Non Conventional, High Tech, Conventional Technology, Low Tech Size Mega, Major, Medium, Mini New or Existing Grass Root, Expansion, Modification Trade off (Resource vs Time) Normal, Crash, Disaster

11

9/15/2013

Prof. K. R. Chari

Trade off Resource Vs Time

Normal Adequate time is allowed for implementation, all stages are

allowed such time duration that they would normally require This type of project will require minimum capital cost & no sacrifice in terms of quality

Crash Additional capital costs are incurred to gain time Maximum overlapping of phases is encouraged and
compromises in quality is not ruled out Time is traded with vendors by paying extra money

12

9/15/2013

Prof. K. R. Chari

Trade off Resource Vs Time

Disaster Anything needed to gain time is allowed in this

type of projects Vendors who can supply as of yesterday are selected irrespective of costs

13

9/15/2013

Prof. K. R. Chari

Project Life Cycle Phases

Conception Definition Planning & Organizing Implementation Clean up (Closing)

14

9/15/2013

Prof. K. R. Chari

Project Life Cycle Phases

Conception Phase Germination of ideas Consider all ideas without worrying about associated
problems First formulate a problem

Definition phase Idea is further developed Prepare a document that helps in evaluation If not done properly, risk may increase Often it is repeated during the course of raising fund for the
project
9/15/2013 Prof. K. R. Chari

15

Project Life Cycle Phases

Planning & Organizing phase This can effectively start only after Definition Phase is
over, but in effect it starts after the conception phase Also overlaps with Definition & Implementation phases so much that proper recognition to this phase is not granted In this phase ground work is done so that the project can take off smoothly: like prepare infrastructure, Organize resources manpower, finance, Systems, Budget, Govt. clearances, Site selection etc

16

9/15/2013

Prof. K. R. Chari

Project Life Cycle Phases

Implementation phase Project starts taking shape very heavy load of

17

activities Almost 80 85% volume of work is done Everybody involved in the project wants that this phase be over quickly All techniques of project management are applied to avoid cost & time overrun Requires high degree of coordination
9/15/2013 Prof. K. R. Chari

Project Life Cycle Phases

Project clean up phase Project team officially hands over the output, process, system & other hardware to concerned people All drawings, documents, manuals & files are catalogued before handing over Satisfactory test run has to be conducted Any last minute fulfillment of contractual obligation has to be met to the satisfaction of the customer Most important issue is to plan redeployment of people & other resources who may have been drafted from other departments or recruited afresh for the project
9/15/2013 Prof. K. R. Chari

18

Concepts of Project Management

Success of a project team means Output must be complete project Executed within cost (budget) Completed within allocated time It must perform to the satisfaction of the customer Success can be achieved only through people All principles of management must apply for project management

19

9/15/2013

Prof. K. R. Chari

Steps in managing a project

Consists of five steps Grouping works into packages which acquires the
properties of a project

Works related to each other Contribute to the same goals Bound by specific time, cost & performance targets

Entrusting the project to a single responsibility

centre for planning, organizing, directing & controlling

20

9/15/2013

Prof. K. R. Chari

Steps in managing a project

Supporting & Servicing the project

Internally within the organization (Matrix or Project organization) Externally by vendors & contractors

Build up commitment through negotiations,

coordinating & directing towards goals through schedules, budgets & contracts Ensuring adherence to goals through continuous monitoring & control
9/15/2013 Prof. K. R. Chari

21

Project Vs Functional Management

Project management approach is used If all works are interrelated & interdependent Nothing stands alone as isolated No good decision can be taken without

22

considering the whole Nothing is achieved unless the whole is completed Work & interrelationships can change with time still the end objective does not change
9/15/2013 Prof. K. R. Chari

Project managers problems

Everything is unknown & uncertain at the beginning Scope comes to be clearly known only after some passage of time Even there is no guarantee that the shape & size will be maintained People who are deployed to the project are almost strangers to the project manager. They have never worked with him in the past & may not work with him in future. They are independent bodies, may not be accountable to the project manager
9/15/2013 Prof. K. R. Chari

23

Project managers problems

Finally regarding the success criteria Completion of all tasks Within budget Within time Satisfactory performance
In most cases there is no previous experience

It appears that success depends MORE on the uncertainties of a project & not on the project manager
9/15/2013 Prof. K. R. Chari

24

Project managers problems

At the same time project manager can not be dissociated from the success or failure of a project because he plans & project activities to happen Overall a project manager should plan, organize, direct & control in such a fashion that he anticipates uncertainties that Either he should be able to circumvent Or be ready with a back up plan

25

9/15/2013

Prof. K. R. Chari

Roles & Responsibilities

Companys project Company appoints a Project Manager For the same project company awards two turn key contracts to sub contractors May be one of these subcontractor awards a Work Package to another contractor Objectives for three Project Managers for their respective part of work will differ

26

9/15/2013

Prof. K. R. Chari

Roles & Responsibilities

Owners Manager Maximize the productivity of capital invested With same capital he will try to build more output May economize on all costs that are not adding value to the
process

PM of the work package contract Will try to complete the works contracted to him on time &
within cost His motive will not be to maximize the productivity of capital invested

27

9/15/2013

Prof. K. R. Chari

Roles & Responsibilities

The Roles & Responsibilities of Project Manager can not change In these cases the Project Managers are not performing the full role & responsibilities Twelve components of a Project Managers Role & Responsibilities

28

9/15/2013

Prof. K. R. Chari

Basic Roles & Responsibilities

Defining & Maintaining the integrity of the project Development of a project execution plan Setting organization for the execution of the plan Setting targets & development of systems & procedures for achievement of project objectives Negotiations for commitment Direction, Coordination & Control of project activities
9/15/2013 Prof. K. R. Chari

29

Basic Roles & Responsibilities

Contract Management Non human resource management including fiscal matters Man management Project related problem solving Satisfaction of customer, govt. & public Acknowledgement of project objectives

30

9/15/2013

Prof. K. R. Chari

Activity Name A B C D E F G H I J K L

Duration 3 4 13 11 6 7 15 8 7 7 5 7

Dependency

A A B C D E,F,G C
H,I,K

Dummy Activity
5
2 3

11
6
4 4

14 6

K A 5 3
1

E
9 ,11 28 7

X 0 I 7
J 7

H
5 22 35 8

B 4
13 C

F 7

L 7

42 20 9

G 15
13
5

EARLIEST START
EVENT NO.

EARLIEST FINISH

DURATION

LATEST START

LATEST FINISH

K 5
D 11 A 3 E 6 H 8

B 4
C 13

F 7
G 15 J 7 I 7 L 7

Three Time Estimate

The Most Likely m The Optimistic a The Pessimistic b Mean (Expected Time) : t T = (a+4m+b)/6 Variance Sigma^2 = ((b-a)/6)^2