Project Management

A Managerial Approach
EVALUATION CRITERIA
Exam % of Marks Duration Coverage
T-1 15 1 hr Syllabus covered up till T-1
T-2 25 1hr 30 min. Mainly syllabus covered after
T-1, plus some questions from
Test 1 also.

T-3 35 2 hr Mainly syllabus covered after

Test-2, and up to Test-3 Plus
some questions from Test-1
and Test-2.
Internal 25 Entire
assessment Project : 15 Semester
Attendance: 10
 BOOKS

Text Book:
Project Management-A Managerial approach,
Jack R. Meredith, Samuel Mantel.

    Reference Books-

“PROJECT MANAGEMENT” by HARVEY MAYLOR

“PRACTICAL PROJECT MANAGEMENT” by R.G.GHATTAS & SANDRA L.
MCKEE
“PROJECT MANAGEMENT” BY NICOLAS
“PRACTICES IN PROJECT MANAGEMENT” by DAVID OLSON
“PROJECT MANAGEMENT” by Harold Kerzner
“ADVANCED PROJECT MANAGEMENT” by Harold Kerzner
 COURSE OBJECTIVES
At the end of this course you will be
able to
•Define project
•Apply the concepts of Project management
•Apply financial techniques in comparing & selecting projects
•Develop a project charter
•Describe the elements of a statement of work & WBS
•Perform a network analysis (PERT/CPM)
•Develop schedules using a Gantt Chart
•Develop a risk management plan
•Control project budgets & schedules
•Implement a project
Chapter 1

Projects in Contemporary
Organizations
Project management

Project management is the discipline of organizing and

managing resources in such a way that these
resources deliver all the work required to complete a
project within defined scope, time, and cost
constraints.

It is the planning, scheduling & controlling of integrated

tasks such that the objectives of the project are achieved
successfully and in the best interest of the stakeholders.

Most of the PM techniques & practices are emerged form Military

Projects in Contemporary Organizations

 Project Management has emerged

because the characteristics of our turn-
of-the-century society demands the
development of new methods of
management
 Many forces have fostered the
emergence and expansion of Project
Management
Forces Of Project Management

3 Paramount Forces driving Project

Management:
1. The exponential expansion of human knowledge
2. The growing demand for a broad range of complex,
sophisticated, customized goods and services
3. The evolution of worldwide competitive markets for the
production and consumption of goods and services
 All 3 forces combine to mandate the use
of teams to solve problems that used to
be solvable by individuals
Objectives of a Project

3 Project Objectives:
o Performance
o Time
o Cost
 Expectations of clients are not an
additional target, but an inherent part of
the project specifications
Objectives of a Project

3 Project Objectives:

The primary job

of the Project Manager
is to manage the
trade-offs between
Time, Cost and
Performance..
The Professionalism of Project
Management
 Complexity of problems facing the project manager
 Growth in number of project oriented organizations
 The Project Management Institute (PMI) was
established in 1969
 By 1990 it had 7,500 members
 5 years later, over 17,000 members
 And by 2001, it had exploded to 86,000 members
 This exponential growth is indicative of the rapid
growth in the use of projects
 Also reflects the importance of PMI as a force in the
development of project management as a profession
Project Management Institute
www.pmi.org
The PMI was founded
in 1969 to foster the
growth and
professionalism
of Project Management.
Recent Changes in Managing
Organizations
 The process of managing organizations has been
impacted by three revolutionary changes:

1. Accelerating replacement of traditional, hierarchical

management by participatory management
2. Currently witnessing the adoption of the “systems
approach” (sometimes called “systems engineering”)
3. Organizations establishing projects as the preferred
way to accomplish their goals.
The Definition of a Project”

 “A temporary endeavor undertaken to create a

unique product or service” ….PMI
 Must make a distinction between terms:
 Program - an exceptionally large, long-range
objective that is broken down into a set of projects
 Task - set of activities comprising a project
 Work Packages - division of tasks
 Work Units - division of work packages

 In the broadest sense, a project is a specific,

finite task to be accomplished
Origin
 May have begin with Egyptian pyramid or Tower of
Babel.

 Modern Project management begun with the famous

Manhattan Project.

 The Manhattan Project was the codename for a

project conducted during World War II to develop the
first atomic bomb by the Allied powers (US, UK,
Canada). The Project eventually employed more than
130,000 people and cost nearly US$2 billion ($22
billion in current value).
Manhattan Project Timeline: 1939 - 1947

1939: Letter to president to fund the research project

1941: Discovery of Plutonium
: Japan attacked Pearl Harbor
: US & Germany declared war against each other
1943: Construction begins
1945: May- Germany surrenders to allied powers
July- First nuclear explosion (Trinity Test)
Aug6: Bomb Little boy dropped on Hiroshima
Aug 9: Bomb Fat Man dropped on Nagasaki
Aug 15: Japan surrenders
1947: Manhattan Project officially complete.
Characteristics of a Project

 Have a purpose
 Have a life cycle
 Interdependencies
 Uniqueness
 Conflict
Why Project Management?
 Companies have experienced:
 Better control
 Better customer relations
 Shorter development times
 Lower costs
 Higher quality and reliability
 Higher profit margins
 Sharper orientation toward results
 Better interdepartmental coordination
 Higher worker morale
Why Project Management?

 Companies have also experienced some

negatives:
 Greater organizational complexity
 Increased likelihood of organizational policy
violations
 Higher costs

 More management difficulties

 Low personnel utilization

The Project Life Cycle

 Stages of a Conventional Project:

 Slow beginning
 Buildup of size

 Peak

 Begin a decline

 Termination
The Project Life Cycle
The Project Life Cycle
 Time distribution of project effort is characterized by
slow-rapid-slow
The Project Life Cycle

 Other projects also exist which do not

follow the conventional project life cycle
 These projects are comprised of
subunits that have little use as a stand
alone unit, yet become useful when put
together
The Project Life Cycle

 Unlike the more conventional life cycle, continued inputs of

effort at the end of the project produce significant gains in
returns
The Project Life Cycle

 Itis essential for the Project Manager to

understand the characteristics of the life
cycle curve for his project

 The distinction between the two life

cycles plays a critical role in the
development of budgets and schedules
for the project
Risk During Project Life Cycle

 Risk during project life cycle

 With most projects there is some
uncertainty about the ability to meet project
goals
 Uncertainty of outcome is greatest at the
start of a project
 Uncertainty decreases as the project moves
toward completion
Risk During Project Life Cycle
 Uncertainty decreases as the project moves toward
completion
The Project Model
Inputs
(A project brief describing the nature of the work to be undertaken)

Constraints
(Legal, ethical, environmental, logic, activation, indirect effects)

Outputs
In the form of Converted information (eg. Set of specifications for a new
product.), a tangible product or changed people (participants receiving
knowledge through a training project)

Mechanisms
People (those involved directly/indirectly)
Knowledge and expertise
Financial resources
Tools and techniques
Technology
 CONSTRAINTS
Financial, legal, ethical, environmental,logic,
activation, time,quality, indirect effects.

INPUT
OUTPUT
Want/Need PROJECT
satisfied needs

MECHANISMS
People, knowledge & expertise,capital,
tools & techniques, technology
The 7-S of Project Management (Maylor)

 The 7-S framework provides a comprehensive

set of issues that need to be considered.
 It allows classification of tasks within the remit
of the project manager which reduces the
complexity of the role.
 In addition, classifying issues in this manner
ensures that the project manager will know
where to look to find sources of help if novel
situations arise.
These are-
1. Strategy-The high level requirements of the project and
the means to achieve them.
2. Structure-The organizational arrangement that will be
used to carry out the project.
3. Systems-The methods for work to be designed,
monitored and controlled.
4. Staff-The selection, recruitment, management, and
leadership of those working on the project.
5. Skills-The managerial and technical tools available to
the project manager and the staff.
6. Style/culture-The underlying way of working and inter-
relating within the work team or organisation.
7. Stakeholders-Individuals or groups who have an
interest in the project process or outcome.
The project environment
 Projects have become more complex- It is becoming more
difficult, but vital to innovate.
 Businesses are becoming more complex
 Projects are moving towards turnkey contracts.
 Changes in competitive environment-Value of time, Human
Resource Management, Rates of change in technology and
methods, Organizations are becoming customer focused,
Integration and openness between customers and suppliers,
changes in management philosophy, growth in the service
sector.
----------------------------------------------------------------------------------

The 4 C’s of the project environment-

Complexity, Completeness, Competitiveness, Customer focus.
 Market External environment
trends Customers
Project
Team
Complexity
Simplest ideas exploited first,
barriers to entry increasing,
Completeness Technology rate rising Customer Focus
move to integrated solutions, New standards emerging of
not just products or services requirements of products and
Competitiveness services and flexibility
Reduced
monopolies
on technology ,
work can be
done almost
anywhere, time
and quality are
Competitive
resources.

Other project organizations who could do the same task
Competition
Web based project management

 Benefits  Features
 Specially helpful where team  Task tracking
members are located at  Automated emailing
different sites  Threaded discussions
 Improves communication
between employees spread
 Document sharing
across the globe  Project reports
 It helps share information
and work jointly on projects
and efficiently use all
available resources.
Better team management
 Cost effectiveness
 Access to talent across the
globe
 Enhance group productivity
The four phases of Project Management
Phase Key issues Fundamental
Questions
Define the project Project and organizational What is to be done. Why
strategy, goal definition is it to be done?
Design the project Modeling, planning, How will it be done, who
process estimation, resource will be involved in each
analysis, conflict resolution, part, when can it start
justification and finish?
Deliver the project Organization, control, How should the project
leadership, decision making, be managed on a day to
problem solving. day basis?
Develop the process Assessment of process and How can the process be
outcomes, evaluation, continually improved?
changes for future.
 Cumulative expenditure

Design it

Do it

Time 
Project life cycle

Develop 
it