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PROJECT

MANAGEMENT
Dr. Arun Maity
Associate Professor
BITS OFF- CAMPUS CENTRE
KOLKATA

INTRODUCTION TO PROJECT
MANAGEMENT

EVOLUTION AND APPLICATION


PROJECT
PROJECT MANAGEMENT
NEED
AND
IMPORTANCE
OF
PROJECT
MANAGEMENT
PROJECT LIFE CYCLE
PROJECT MANAGER
INTERPERSONAL AND DECISION MAKING SKILLS
PROJECT INTEGRATION

EVOLUTION AND
APPLICATION
DEVELOPED IN THE LATE 1950s TO AID

PLANNING AND SCHEDULING OF LARGE


PROJECTS
CONSTRUCTION INDUSTRY
U.S. DEPARTMENT OF DEFENSE
AUTOMAKERS TOYOTA, NISSAN, BMW
INFORMATION TECHNOLOGY
STEEL INDUSTRY
FERTILISER INDUSTRY

PROJECT
A PROJECT IS A COMPLEX , NON ROUTINE, ONE-TIME

EFFORT LIMITED BY TIME, BUDGET, RESOURCES AND


PERFORMANCE SPECIFICATIONS DESIGNED TO MEET
CUSTOMERS NEEDS
A PROJECT CONSISTS OF SERIES OF ACTIVITIES AND
TASKS THAT
HAVE A SPECIFIC OBJECTIVE TO BE COMPLETED WITHIN

CERTAIN SPECIFICATIONS
HAVE DEFINITE START AND END DATES
HAVE FUNDING LIMITS
CONSUME RESOURCES
MEET AND EXCEED CUSTOMERS NEEDS

PROJECT MANAGEMENT
PROJECT MANAGEMENT INVOLVES
PROJECT PLANNING
PROJECT SCHEDULING
PROJECT MONITORING & CONTROL
PROJECT PLANNING
DEFINITION OF WORK REQUIREMENTS
DEFINITION OF QUANTITY OF WORK
DEFINITION OF RESOURCES NEEDED

PROJECT SCHEDULING
LIST OF ACTIVITIES TO BE COMPLETED
ACTIVITY RELATIONSHIPS
GANTT CHARTS
CRITICAL, NON-CRITICAL ACTIVITIES, MILESTONES
RESOURCE LOADING, LEVELLING, ALLOCATION
PROJECT MONITORING & CONTROL
TRACKING PROGRESS
COMPARING
ANALYZING IMPACT
MAKING ADJUSTMENTS
TIME, COST, QUALITY CONTROL

NEED AND IMPORTANCE OF PROJECT


MANAGEMENT
ABILITY TO PLAN, IMPLEMENT AND MANAGE

ACTIVITIES
RESULT-ORIENTED MANAGEMENT STYLES
COMPRESSION OF PRODUCT LIFE CYCLES
GLOBAL COMPETITION
KNOWLEDGE EXPLOSION
CORPORATE DOWNSIZING
INCREASED CUSTOMER FOCUS
MULTI-PROJECT ENVIRONMENT

COMPRESSION OF PRODUCT LIFE CYCLE


SHORTENING OF PRODUCT LIFE CYCLE
TIME TO MARKET FOR NEW PRODUCT WITH
SHORTER LIFE CYCLES
SIX MONTH PROJECT DELAY CAN RESULT IN 33%
LOSS IN PRODUCT REVENUE SHARE
GLOBAL COMPETITION
CHEAPER
AND BETTER PRODUCTS AND
SERVICES
USE OF QUALITY MANAGEMENT PRACTICES AND
CONTINUOUS IMPROVEMENT

KNOWLEDGE EXPLOSION
INCREASE COMPLEXITY OF PROJECTS BECAUSE OF
ADVANCED TECHNOLOGIES
COMPLEXITY IN MATERIALS, SPECIFICATIONS, CODES,
AESTHETICS, EQUIPMENT AND REQUIRED SPECIALISTS
CORPORATE DOWNSIZING
NECESSITY OF DOWNSIZING OR RIGHTSIZING
NECESSITY OF CORE COMPETENCIES FOR SURVIVAL
PROJECT MGMT REPLACING MIDDLE MANAGEMENT
OUTSOURCING
OF SIGNIFICANT SEGMENTS OF

PROJECT WORK

INCREASED CUSTOMER FOCUS


CUSTOMER
:
SATISFACTION,
DELIGHT,
SURPRISE
NEEDS CUSTOMIZED PRODUCTS AND SERVICES
MULTIPROJECT ENVIRONMENT
SHARING AND PRIORITIZING RESOURCES
RISK MANAGEMENT
PROJECT MANAGEMENT IS BEST SUITED FOR

BUSINESSES REQUIRING ACCOUNTABILITY,


FLEXIBILITY,
INNOVATION,
SPEED
AND
CONTINUOUS IMPROVEMENT

PROJECT DRIVEN ORGANIZATION


ALL

WORK IS CHARACTERIZED THROUGH


PROJECTS WITH EACH PROJECT AS A
SEPARATE COST CENTER HAVING ITS OWN
PROFIT AND LOSS STATEMENT

NON-PROJECT DRIVEN
ORGANIZATION
PROJECTS EXIST MERELY TO SUPPORT THE

PRODUCT LINES OR FUNCTIONAL LINES


PROFIT AND LOSS ARE MEASURED ON
VERTICAL OR HORIZONTAL LINES
PRIORITY RESOURCES ARE ASSIGNED TO
REVENUE PRODUCING FUNCTIONAL LINE
ACTIVITIES RATHER THAN THE PROJECTS

LIMITATIONS OF NON-PROJECT
DRIVEN ORGANIZATIONS
PROJECTS MAY BE FEW AND FAR BETWEEN
NOT ALL PROJECTS HAVE THE SAME

PROJECT

MANAGEMENT REQUIREMENTS
EXECUTIVES DO NOT HAVE SUFFICIENT TIME TO
MANAGE PROJECTS
PROJECTS TEND TO BE DELAYED BECAUSE APPROVALS
MOST OFTEN FOLLOW VERTICAL CHAIN OF COMMAND
PROJECT STAFFING IS ON A LOCAL BASIS
HEAVY DEPENDENCE UPON SUBCONTRACTORS AND
OUTSIDE AGENCIES FOR PROJECT MANAGEMENT
EXPERTISE

PROJECT LIFE CYCLE


DEFINING
GOALS
SPECIFICATIONS
TASKS
RESPONSIBILITIES

PLANNING
SCHEDULES
BUDGETS
RESOURCES
RISKS
STAFFING

EXECUTING
STATUS REPORTS
CHANGES / REVISIONS
QUALITY
FORECASTS

DELIVERING
DELIVERING THE PROJECT PRODUCT TO THE CUSTOMER
REDEPLOYING PROJECT RESOURCES
TRAIN CUSTOMER
TRANSFER DOCUMENTS
RELEASE STAFF
LESSONS LEARNED

LIFE CYCLE PHASES


ENGINEERING
START UP
DEFINITION
MAIN
TERMINATION

MANUFACTURING
FORMATION
BUILDING
PRODUCTION
PHASE-OUT
FINAL AUDIT

SOFTWARE DEVELOPMENT
CONCEPTUAL
PLANNING
DEFINITION AND DESIGN
CODE
INTEGRATION / TESTING
CONVERSION
MAINTENANCE
CONSTRUCTION
PLANNING, DATA COLLECTION AND PROCEDURES
STUDIES AND BASIC ENGINEERING
MAJOR REVIEW
DETAIL ENGINEERING
CONSTRUCTION
TESTING AND COMMISSIONING

NEW PRODUCT
INTRODUCTION
FEASIBILITY STUDY
MARKET SURVEY
COST ESTIMATION
TECHNOLOGY ASSESSMENT
PRODUCT DESIGN AND DEVELOPMENT
FINANCING
PROCESS PLANNING
QUALITY SPECIFICATIONS

PERSONNEL ASSIGNMENT AND TRAINING


OPERATIONS PLANNING
FACILITIES LAYOUT
SYSTEM INTEGRATION
PRODUCTION SCHEDULING
PRODUCTION RUN
PRODUCT SHIPMENT

ROLE OF PROJECT
MANAGER
PROVIDE

DIRECTION,
COORDINATION
AND
INTEGRATION TO THE PROJECT TEAM
MANAGE
TEMPORARY,
NON-REPETITIVE
ACTIVITIES TO COMPLETE A FIXED LIFE PROJECT
MEET THE CHALLENGES OF EACH PHASE OF THE
PROJECT LIFE CYCLE
MANAGE THE TENSION BETWEEN CUSTOMER
EXPECTATIONS AND WHAT IS FEASIBLE OR
REASONABLE
WORK
WITH
VENDORS,
SUPPLIERS,
SUBCONTRACTORS

RESPONSIBLE FOR PERFORMANCE


ENSURE APPROPRIATE TRADE-OFFS BETWEEN

TIME,
COST
AND
PERFORMANCE
REQUIREMENTS
INDUCING THE RIGHT PEOPLE AT THE RIGHT
TIME
TO ADDRESS RIGHT ISSUES AND MAKE RIGHT
DECISIONS

Categories of
Interactions
Superiors or Bosses
Colleagues or Peers
Subordinates or Juniors
Dealing with each category requires definite

skills which have to be mastered if one is to


rise in the organizational hierarchy

Interaction with
Superiors
Boss is always the boss, though he may not

be always right
There may be serious differences of opinion

with the boss, but ultimately, the will or opinion


or decision of the boss will prevail
Boss is more accountable than the subordinates
and will have to answer the consequences of
his decisions and actions

Rather than be a Yes Man and agree with

everything the boss says, the subordinate


must definitely express his views and opinions
for the consideration of the boss
If the boss chooses to ignore suggestions or
overrule decisions taken by the subordinate,
he does so at his own discretion and risk

Certain bosses who flatly refuses to accept

any
suggestions
coming
from
the
subordinates, even though his suggestions
are basically sound and would be interest
of the organization
Such individuals suffer from a sense of
insecurity
and
are
afraid
that
implementation of the suggestions would
highlight their own shortcomings and bring
credit to the subordinates at their own
expense

What the boss forgets is that credit for

achievement or good performance first goes


to the boss for his ability to get work done
The subordinate only gets a part of the credit
received by the boss

Boss has greater access to


information
By virtue of position in the organization, the

boss has greater access to vital information


affecting the well-being of the organization
Some of the decisions may appear to be illconceived or wrong, however it is more likely
that a particular decision may be based on
certain information not available to the
subordinate

Boss is more Busy


Responsibilities

of
the
boss
are
considerably greater than those of the
subordinates
The time at his disposal for dealing with
particular problem is naturally less than
the time available with the subordinate
Therefore it is the duty of subordinate to
do his homework well, work out options in
any given situation and then put them for
consideration and final decision with his
own recommendation

Boss is under greater pressure


By virtue of his position and responsibility,

boss is under greater pressure to meet


targets and deadlines
Some pressure is bound to get transferred
down to lower levels resulting in FIRING
Firing is a part of the game and has to be
accepted as such
One must not be too sensitive to such
firings and must develop a somewhat thick
skin in such matters

On the other hand, the skin should not be so

thick that firing has no effect at all


On occasion, unpleasant talk may appear to
be entirely unreasonable
Outcome of firing of the juniors, who, in turn,
may take it to out on their wives and children

Interaction with
Colleagues
Individuals who are more or less at the same

level in the hierarchy


Engineers performing shift duty and reporting
to Manager
Department heads reporting to the Production
Manager
Functional Heads reporting to Unit Head
Project Engineers reporting to Project
Managers
Project Managers reporting of Head, Projects

Feeling of cordiality, cooperation, mutual trust

and atmosphere of healthy competition


This is easier said than done
Politics is an integral feature of any
organization, as each individual tries to catch
the eye of the boss and advance his own
cause for promotion

If the competition leads to confrontation

and undermining the position of others,


working is bound to suffer
Personal equations can lead to formation
of
groups
that
adversely
affect
organizational working

Interaction with Subordinates


An engineer in a supervisory position or a

manager is responsible not only for his own


actions, but also for the actions of all those
working under his direction
Delegation: A successful manager once said,
I never do anything which I can get done by
a subordinate
This is an excellent way to motivate
subordinates and at the same time freeing
the boss from routine matters and giving
him time to concentrate on important issues

Delegation does not imply that the boss is absolved of responsibility for

that actions of his subordinates, he should keep a watchful eye over their
activities and issue necessary direction.

Earn the respect of subordinates


It is easy to get work done if subordinates hold the boss in esteem and

respect
Sound knowledge and thorough understanding of plant or process are
vitally important
Boss should be capable of doing at least 80% of the work done by each
one of its subordinates
20% of his own work should be such that none of his subordinates can
do so effectively

Issue clear instructions


Instructions have no meaning if they are vague
and likely to be misinterpreted
Some managers are in the habit of deliberately
leaving instructions vague and then pulling
juniors for not acting one way or the other
Descend to the level of subordinates
Boss must express himself in a language which
the subordinates can understand

Define Jurisdiction
Areas wherein the subordinate is free to

take his own decisions according to


established norms and guidelines
Boss will not be troubled with low level
decisions
Subordinate must have clear idea about
what he can do without informing the boss at

all
what he can do first and inform later
what he can do only after getting approval

Categorize
Subordinates
1. THOSE WHO WORK ON THEIR OWN

INITIATIVE

2. THOSE WHO WORK ONLY AFTER RECEIVING

DIRECTIVES OR GUIDELINES

3. THOSE WHO DO NOT WORK EVEN AFTER

RECEIVING DIRECTIVES AND GUIDELINES

Subordinate Problems are


Ultimately Bosses Problems
ANY DEFICIENCY IN WORKING HAVE TO BE

REMOVED BY CONCERTED EFFORT


BOSS CANNOT GET AWAY BY SAYING THAT
THESE PROBLEMS HAVE TO BE TACKLED BY
JUNIOR STAFF ALONE
BOSS HAS TO GET INVOLVED AND ISSUE
NECESSARY DIRECTIONS TO SOLVE THE
PROBLEMS
IT IS THE BOSS WHO WILL HAVE TO ANSWER
FOR THE WORKING OF ALL SECTIONS UNDER
HIS CHARGE

Strive to become Redundant


EVERY

SUPERVISOR OR MANAGER MUST


STRIVE TO MAKE HIMSELF REDUNDANT AND
SUPERFLUOUS

EFFORT MUST BE MADE TO EVOLVE SYSTEMS

AND PROCEDURES, SO THAT WORKING IS NOT


AFFECTED IN THE ABSENCE OF SUPERVISOR /
MANAGER

Train supervisor to
take your place
ADVANCEMENT

IS EASY IF THERE IS
SOMEONE WHO CAN ASSUME CHARGE OF
THE VACATED POSITION
MANAGER
SHOULD
TRAIN
HIS
SUBORDINATES ADEQUATELY, NOT ONLY
TO REDUCE HIS WORKLOAD BUT ALSO TO
FACILITATE HIS OWN ADVANCEMENT AT
THE APPROPRIATE TIME

SOME MANAGERS ARE UNDULY SECRETIVE AND

HABITUALLY
CONCEAL
DOCUMENTS
INFORMATION FROM SUBORDINATES

AND

MANY ORGANIZATIONS FORCE THEIR EMPLOYEE TO

AVAIL DUE LEAVE AND DO NOT PERMIT LEAVE


ACCUMULATION TO A CERTAIN LEVEL

EXCELLENT PRACTICE AND SERVES TO MOTIVATE AND

TRAIN SUBORIDNATES FOR HIGHER RESPONSIBILITES


SIMULTANEOUSLY, THE BOSS RETURNS REFERESHED
AFTER LEAVE TO DO GREATER JUSTICE TO HIS
RESPONSIBILITIES

Be Fair and Appear to be Fair


JUSTICE MUST NOT ONLY BE DONE BUT

SEEN TO BE DONE
BOSS MUST BE FAIR, BUT ALSO APPEAR TO
BE FAIR TO HIS SUBORDINATES
ALL SUBORIDNATES SHOULD BE TREATED
ON MERITS AS FAR AS DISTRIBUTION OF
ASSIGNMENTS AND PROSPECTS FOR
ADVANCEMENT ARE CONCERNED

IT IS NATURAL TO DEVELOP LIKING OR

DISLIKE FOR VARIOUS SUBORDINATES


ONE MUST NOT GET CARRIED AWAY BY
SUBJECTIVE CRITERIA
FRIENDSHIP AND PERSONAL RELATIONS
WITH SUBORDINATES SHOULD NOT ACT AS
OBSTACLES TO ADVANCEMENT
THE RECOMMENDED PERSON SHOULD
REDUCE THE WORKLOAD OF THE BOSS
AND MAKE HIS LIFE EASIER

DECISION MAKING
MOST

PROBLEMS
ADMIT
MULTIPLE
SOLUTIONS
A CONCIOUS AND DELIBERATE DECISION
HAS TO BE TAKEN TO PURSUE A
PARTICULAR COURSE OF ACTION
IT IS UNLIKELY THAT ALL DECISIONS TAKEN
BY A MANAGER WOULD PROVE TO BE
CORRECT IN THE LONG RUN
SUCCESSFUL MANAGERS ARE THOSE WITH
HIGH
PERCENTAGE
OF
CORRECT
DECISIONS

ONCE A DECISION IS TAKEN, THE MATTER

DOES NOT END


DECISION SHOULD BE MONITORED TO
ASCERTAIN
WHETHER
THE
DESIRED
RESULTS ARE BEING OBTAINED OR NOT
IN CASE OF DEVIATIONS FROM THE
EXPECTED OUTCOME, THERE SHOULD BE
NO HESITATION IN REVERSING THE
DECISION BEFORE THE SITUATION GETS
OUT OF HAND

DECISIONS SHOULD BE QUICK AND TIMELY


PROCASTINATION
LEAD
TO
DISASTROUS

CONSEQUENCES
AND
AFFECTS
ORGANIZATIONAL EFFICIENCY
NORMS
AND
GUIDELINES
SHOULD
BE
ESTABLISHED SO THAT DECISION ARE TAKEN AT
THE LOWEST POSSIBLE LEVEL
SUFFICIENT AUTHORITY SHOULD BE DELEGATED
TO THE JUNIOR LEVELS -ACTIVE INVOLVEMENT
OF PERSONNEL, GOOD MORALE AND FREEDOM
OF BOSS FROM ROUTINE DECISIONS

INTEGRATED PROJECT
MANAGEMENT
FOCUSES ALL PROJECT EFFORT TOWARD THE

STRATEGIC PLAN OF THE ORGANIZATION


REINFORCES
MASTERY
OF
PROJECT
MANAGEMENT AND INTER-PERSONAL SKILLS
MAY REQUIRE RENGINEERING OF BUSINEESS
MANAGEMENT PROCESS
INTEGRATION OF PROJECTS WITH STRATEGIC

PLAN OF THE ORGANIZATION


INTEGRATION
WITHIN THE
MANAGING ACTUAL PROJECTS

PROCESS

OF

INTEGRATION OF PROJECTS WITH


STRATEGIC PLANS
NEED: STRATEGIC PLANS ARE MADE BY ONE

GROUP OF MANAGERS, PROJECTS SELECTED


BY OTHER AND IMPLEMENTED BY ANOTHER
INDEPENDENT

DECISIONS
LEAD
TO
CONFLICTS, CONFUSION ETC. ON UNSATISFIED
CUSTOMERS

RESOURCES

ARE WASTED
ADDED ACTIVITIES/PROJECTS

IN

NON-VALUE

CHARACTERISTICS
ALL

THE PARTS ARE INTER-RELATED. A


CHANGE IN ONE OF THE PARTS WILL
INFLUENCE THE WHOLE
VISION,
MISSION,
OBJECTIVES
AND
STRATEGIES
NEED
TO
BE
PREPARED
CONSIDERING INTERNAL AND EXTERNAL
ENVIRONMENTAL FACTORS
EXTERNAL FACTORS: POLITICAL, SOCIAL,
ECONOMIC AND TECHNOLOGICAL
INTERNAL
FACTORS:
MANAGEMENT,
FACILITIES, CORE COMPETENCIES, FINANCIAL

IMPLEMENTING

STRATEGIES

THROUGH

PROJECTS
SELECTING PROPOSALS THAT MAKE LARGEST
AND MOST BALANCED CONTRIBUTION TO THE
OBJECTIVES AND STRATEGIES
PRIORITIZING PROJECTS SO THAT RESOURCES
ARE ALLOCATED TO THE RIGHT PROJECTS

INTEGRATION WITHIN THE PROCESS


OF MANAGING ACTUAL PROJECTS
TECHNICAL

SIDE

OF

THE

MANAGEMENT

PROCESS
PLANNING, SCHEDULING, CONTROLLING

SOCIO-CULTURAL

SIDE
MANAGEMENT PROCESS

OF

THE

PROJECT

SHAPING A PROJECT CULTURE THAT STIMULATES

TEAMWORK AND HIGH LEVELS OF PERSONAL


MOTIVATION
PROBLEM SOLVING APPROACH
EFFECTIVE COMMUNICATION SESSIONS WITH
STAKEHOLDERS