•Dr. Arun Maity•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• NEED AND IMPORTANCE OF PROJECTMANAGEMENT

• PROJECT LIFE CYCLE

• PROJECT MANAGER

• INTERPERSONAL AND DECISION MAKING SKILLS

• PROJECT INTEGRATION

EVOLUTION AND APPLICATION DEVELOPED IN THE LATE 1950’s TO AID

PLANNING AND SCHEDULING OF LARGEPROJECTS

CONSTRUCTION INDUSTRY 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 ANDPERFORMANCE SPECIFICATIONS DESIGNED TO MEETCUSTOMERS’ NEEDS

A PROJECT CONSISTS OF SERIES OF ACTIVITIES AND A PROJECT CONSISTS OF SERIES OF ACTIVITIES ANDTASKS 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 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 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 MANAGEACTIVITIES

RESULT-ORIENTED MANAGEMENT STYLES

COMPRESSION OF PRODUCT LIFE CYCLES 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 WITHSHORTER LIFE CYCLESSHORTER 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 ANDCONTINUOUS IMPROVEMENT

KNOWLEDGE EXPLOSION

INCREASE COMPLEXITY OF PROJECTS BECAUSE OFADVANCED TECHNOLOGIES

COMPLEXITY IN MATERIALS, SPECIFICATIONS, CODES, 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 OFPROJECT WORK

INCREASED CUSTOMER FOCUS

CUSTOMER : SATISFACTION, DELIGHT, SURPRISE

NEEDS CUSTOMIZED PRODUCTS AND SERVICES

MULTIPROJECT ENVIRONMENT MULTIPROJECT ENVIRONMENT

SHARING AND PRIORITIZING RESOURCES

RISK MANAGEMENT

PROJECT MANAGEMENT IS BEST SUITED FORBUSINESSES REQUIRING ACCOUNTABILITY,FLEXIBILITY, INNOVATION, SPEED ANDCONTINUOUS IMPROVEMENT

PROJECT DRIVEN ORGANIZATION ALL WORK IS CHARACTERIZED THROUGH

PROJECTS WITH EACH PROJECT AS A SEPARATECOST CENTER HAVING ITS OWN PROFIT ANDLOSS STATEMENTLOSS STATEMENT

NON-PROJECT DRIVEN ORGANIZATION

PROJECTS EXIST MERELY TO SUPPORT THEPRODUCT LINES OR FUNCTIONAL LINES

PROFIT AND LOSS ARE MEASURED ON VERTICALOR HORIZONTAL LINESOR HORIZONTAL LINES

PRIORITY RESOURCES ARE ASSIGNED TOREVENUE PRODUCING FUNCTIONAL LINEACTIVITIES 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 PROJECTSMANAGE PROJECTS PROJECTS TEND TO BE DELAYED BECAUSE

APPROVALS MOST OFTEN FOLLOW VERTICAL CHAINOF COMMAND

PROJECT STAFFING IS ON A LOCAL BASIS HEAVY DEPENDENCE UPON SUBCONTRACTORS AND

OUTSIDE AGENCIES FOR PROJECT MANAGEMENTEXPERTISE

PROJECT LIFE CYCLE DEFINING

GOALS

SPECIFICATIONS

TASKS

RESPONSIBILITIES

PLANNING SCHEDULES

BUDGETS

RESOURCES

RISKS

STAFFING

EXECUTING STATUS REPORTS CHANGES / REVISIONS QUALITY FORECASTS 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 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 TECHNOLOGY ASSESSMENT

PRODUCT DESIGN AND DEVELOPMENT

FINANCING

PROCESS PLANNING

QUALITY SPECIFICATIONS

PERSONNEL ASSIGNMENT AND TRAINING

OPERATIONS PLANNING

FACILITIES LAYOUT

SYSTEM INTEGRATION SYSTEM INTEGRATION

PRODUCTION SCHEDULING

PRODUCTION RUN

PRODUCT SHIPMENT

ROLE OF PROJECT MANAGER PROVIDE DIRECTION, COORDINATION AND

INTEGRATION TO THE PROJECT TEAM

MANAGE TEMPORARY, NON-REPETITIVEACTIVITIES TO COMPLETE A FIXED LIFE PROJECTACTIVITIES TO COMPLETE A FIXED LIFE PROJECT

MEET THE CHALLENGES OF EACH PHASE OF THEPROJECT LIFE CYCLE

MANAGE THE TENSION BETWEEN CUSTOMEREXPECTATIONS AND WHAT IS FEASIBLE ORREASONABLE

WORK WITH VENDORS, SUPPLIERS,SUBCONTRACTORS

RESPONSIBLE FOR PERFORMANCE

ENSURE APPROPRIATE TRADE-OFFS BETWEENTIME, COST AND PERFORMANCE REQUIREMENTS

INDUCING THE RIGHT PEOPLE AT THE RIGHT INDUCING THE RIGHT PEOPLE AT THE RIGHTTIME

TO ADDRESS RIGHT ISSUES AND MAKE RIGHTDECISIONS

Categories of Interactions

Superiors or Bosses

Colleagues or Peers

Subordinates or Juniors

Dealing with each category requires definite skillswhich have to be mastered if one is to rise in theorganizational hierarchy

Interaction with Superiors

Boss is always the boss, though he may not be alwaysright

There may be serious differences of opinion with theboss, but ultimately, the will or opinion or decision ofboss, but ultimately, the will or opinion or decision ofthe boss will prevail

Boss is more accountable than the subordinates and willhave to answer the consequences of his decisions andactions

Rather than be a “Yes Man” and agree with everythingthe boss says, the subordinate must definitely expresshis views and opinions for the consideration of thebossboss

If the boss chooses to ignore suggestions or overruledecisions taken by the subordinate, he does so at hisown discretion and risk

Certain bosses who flatly refuses to accept anysuggestions coming from the subordinates, eventhough his suggestions are basically sound andwould be interest of the organizationwould be interest of the organization

Such individuals suffer from a sense of insecurityand are afraid that implementation of thesuggestions would highlight their ownshortcomings and bring credit to the subordinatesat their own expense

What the boss forgets is that credit for achievement orgood performance first goes to the boss for his abilityto get work done

The subordinate only gets a part of the credit received The subordinate only gets a part of the credit receivedby the boss

Boss has greater access to information

By virtue of position in the organization, the boss hasgreater access to vital information affecting the well-being of the organization

Some of the decisions may appear to be ill-conceived Some of the decisions may appear to be ill-conceivedor wrong, however it is more likely that a particulardecision may be based on certain information notavailable to the subordinate

Boss is more Busy

Responsibilities of the boss are considerablygreater than those of the subordinates

The time at his disposal for dealing with particularproblem is naturally less than the time availableproblem is naturally less than the time availablewith the subordinate

Therefore it is the duty of subordinate to do hishomework well, work out options in any givensituation and then put them for consideration andfinal decision with his own recommendation

Boss is under greater pressure

By virtue of his position and responsibility, boss isunder greater pressure to meet targets anddeadlines

Some pressure is bound to get transferred down to Some pressure is bound to get transferred down tolower levels resulting in FIRING

Firing is a part of the game and has to be acceptedas such

One must not be too sensitive to such firings andmust develop a somewhat thick skin in suchmatters

On the other hand, the skin should not be so thickthat firing has no effect at all

On occasion, unpleasant talk may appear to be entirelyunreasonableunreasonable

Outcome of firing of the juniors, who, in turn, maytake 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 ManagerManager

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 andatmosphere of healthy competition

This is easier said than done

Politics is an integral feature of any organization, as Politics is an integral feature of any organization, aseach individual tries to catch the eye of the boss andadvance his own cause for promotion

If the competition leads to confrontation andundermining the position of others, working isbound to suffer

Personal equations can lead to formation of Personal equations can lead to formation ofgroups that adversely affect organizationalworking

Interaction with Subordinates

An engineer in a supervisory position or a manageris responsible not only for his own actions, but alsofor the actions of all those working under hisdirection

Delegation: A successful manager once said, “I Delegation: A successful manager once said, “Inever do anything which I can get done by asubordinate”

This is an excellent way to motivate subordinatesand at the same time freeing the boss from routinematters and giving him time to concentrate onimportant issues

Delegation does not imply that the boss is absolved of responsibilityfor that actions of his subordinates, he should keep a watchful eyeover their activities and issue necessary direction.

Earn the respect of subordinates Earn the respect of subordinates It is easy to get work done if subordinates hold the boss inesteem and respect

Sound knowledge and thorough understanding of plant orprocess are vitally important

Boss should be capable of doing at least 80% of the work doneby each one of its subordinates

20% of his own work should be such that none of hissubordinates 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 Some managers are in the habit of deliberately leavinginstructions vague and then pulling juniors for notacting 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 hisown decisions according to established norms andguidelines

Boss will not be troubled with low level decisions 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 2. THOSE WHO WORK ONLY AFTER RECEIVING DIRECTIVES OR GUIDELINES

3. THOSE WHO DO NOT WORK EVEN AFTER RECEIVING DIRECTIVES AND GUIDELINES

Subordinate Problems areUltimately Bosses’ Problems

ANY DEFICIENCY IN WORKING HAVE TO BEREMOVED BY CONCERTED EFFORT

BOSS CANNOT GET AWAY BY SAYING THATTHESE PROBLEMS HAVE TO BE TACKLED BYJUNIOR STAFF ALONETHESE PROBLEMS HAVE TO BE TACKLED BYJUNIOR STAFF ALONE

BOSS HAS TO GET INVOLVED AND ISSUENECESSARY DIRECTIONS TO SOLVE THEPROBLEMS

IT IS THE BOSS WHO WILL HAVE TO ANSWERFOR THE WORKING OF ALL SECTIONS UNDERHIS CHARGE

Strive to become Redundant

EVERY SUPERVISOR OR MANAGER MUST STRIVETO MAKE HIMSELF REDUNDANT ANDSUPERFLUOUS

EFFORT MUST BE MADE TO EVOLVE SYSTEMSAND PROCEDURES, SO THAT WORKING IS NOTAFFECTED IN THE ABSENCE OF SUPERVISOR /MANAGER

Train supervisor totake your place

ADVANCEMENT IS EASY IF THERE ISSOMEONE WHO CAN ASSUME CHARGE OFTHE VACATED POSITION

MANAGER SHOULD TRAIN HIS MANAGER SHOULD TRAIN HISSUBORDINATES ADEQUATELY, NOT ONLY TOREDUCE HIS WORKLOAD BUT ALSO TOFACILITATE HIS OWN ADVANCEMENT AT THEAPPROPRIATE TIME

SOME MANAGERS ARE UNDULY SECRETIVE ANDHABITUALLY CONCEAL DOCUMENTS ANDINFORMATION FROM SUBORDINATES

MANY ORGANIZATIONS FORCE THEIR EMPLOYEE MANY ORGANIZATIONS FORCE THEIR EMPLOYEETO AVAIL DUE LEAVE AND DO NOT PERMIT LEAVEACCUMULATION TO A CERTAIN LEVEL

EXCELLENT PRACTICE AND SERVES TO MOTIVATE ANDTRAIN SUBORIDNATES FOR HIGHER RESPONSIBILITES

SIMULTANEOUSLY, THE BOSS RETURNS REFERESHEDAFTER LEAVE TO DO GREATER JUSTICE TO HISRESPONSIBILITIES

Be Fair and Appear to be Fair

JUSTICE MUST NOT ONLY BE DONE BUT SEENTO BE DONE

BOSS MUST BE FAIR, BUT ALSO APPEAR TO BEFAIR TO HIS SUBORDINATESFAIR TO HIS SUBORDINATES

ALL SUBORIDNATES SHOULD BE TREATED ONMERITS AS FAR AS DISTRIBUTION OFASSIGNMENTS AND PROSPECTS FORADVANCEMENT ARE CONCERNED

IT IS NATURAL TO DEVELOP LIKING ORDISLIKE FOR VARIOUS SUBORDINATES

ONE MUST NOT GET CARRIED AWAY BYSUBJECTIVE CRITERIASUBJECTIVE CRITERIA

FRIENDSHIP AND PERSONAL RELATIONSWITH SUBORDINATES SHOULD NOT ACT ASOBSTACLES TO ADVANCEMENT

THE RECOMMENDED PERSON SHOULDREDUCE THE WORKLOAD OF THE BOSS ANDMAKE HIS LIFE EASIER

DECISION MAKING

MOST PROBLEMS ADMIT MULTIPLESOLUTIONS

A CONCIOUS AND DELIBERATE DECISION HASTO BE TAKEN TO PURSUE A PARTICULARTO BE TAKEN TO PURSUE A PARTICULARCOURSE OF ACTION

IT IS UNLIKELY THAT ALL DECISIONS TAKENBY A MANAGER WOULD PROVE TO BECORRECT IN THE LONG RUN

SUCCESSFUL MANAGERS ARE THOSE WITHHIGH PERCENTAGE OF CORRECT DECISIONS

ONCE A DECISION IS TAKEN, THE MATTERDOES NOT END

DECISION SHOULD BE MONITORED TOASCERTAIN WHETHER THE DESIRED RESULTSASCERTAIN WHETHER THE DESIRED RESULTSARE BEING OBTAINED OR NOT

IN CASE OF DEVIATIONS FROM THEEXPECTED OUTCOME, THERE SHOULD BE NOHESITATION IN REVERSING THE DECISIONBEFORE THE SITUATION GETS OUT OF HAND

DECISIONS SHOULD BE QUICK AND TIMELY PROCASTINATION LEAD TO DISASTROUS

CONSEQUENCES AND AFFECTSORGANIZATIONAL EFFICIENCY

NORMS AND GUIDELINES SHOULD BE NORMS AND GUIDELINES SHOULD BEESTABLISHED SO THAT DECISION ARE TAKENAT THE LOWEST POSSIBLE LEVEL

SUFFICIENT AUTHORITY SHOULD BEDELEGATED TO THE JUNIOR LEVELS -ACTIVEINVOLVEMENT OF PERSONNEL, GOODMORALE AND FREEDOM OF BOSS FROMROUTINE DECISIONS

INTEGRATED PROJECT MANAGEMENT

FOCUSES ALL PROJECT EFFORT TOWARD THESTRATEGIC PLAN OF THE ORGANIZATION

REINFORCES MASTERY OF PROJECTMANAGEMENT AND INTER-PERSONAL SKILLSMANAGEMENT AND INTER-PERSONAL SKILLS

MAY REQUIRE RENGINEERING OF BUSINEESSMANAGEMENT PROCESS

INTEGRATION OF PROJECTS WITH STRATEGICPLAN OF THE ORGANIZATION

INTEGRATION WITHIN THE PROCESS OFMANAGING ACTUAL PROJECTS

INTEGRATION OF PROJECTS WITH STRATEGIC PLANS

NEED: STRATEGIC PLANS ARE MADE BY ONEGROUP OF MANAGERS, PROJECTS SELECTED BYOTHER AND IMPLEMENTED BY ANOTHER

INDEPENDENT DECISIONS LEAD TO CONFLICTS,CONFUSION ETC. ON UNSATISFIED CUSTOMERS

RESOURCES ARE WASTED IN NON-VALUE ADDEDACTIVITIES/PROJECTS

CHARACTERISTICS ALL THE PARTS ARE INTER-RELATED. A CHANGE

IN ONE OF THE PARTS WILL INFLUENCE THEWHOLE

VISION, MISSION, OBJECTIVES AND STRATEGIES VISION, MISSION, OBJECTIVES AND STRATEGIESNEED TO BE PREPARED CONSIDERING INTERNALAND EXTERNAL ENVIRONMENTAL FACTORS

EXTERNAL FACTORS: POLITICAL, SOCIAL,ECONOMIC AND TECHNOLOGICAL

INTERNAL FACTORS: MANAGEMENT, FACILITIES,CORE COMPETENCIES, FINANCIAL CONDITIONS

IMPLEMENTING STRATEGIES THROUGHPROJECTS

SELECTING PROPOSALS THAT MAKE LARGESTAND MOST BALANCED CONTRIBUTION TO THEAND MOST BALANCED CONTRIBUTION TO THEOBJECTIVES AND STRATEGIES

PRIORITIZING PROJECTS SO THAT RESOURCESARE ALLOCATED TO THE RIGHT PROJECTS

INTEGRATION WITHIN THE PROCESS OF MANAGING ACTUAL PROJECTS

TECHNICAL SIDE OF THE MANAGEMENTPROCESS PLANNING, SCHEDULING, CONTROLLING

SOCIO-CULTURAL SIDE OF THE PROJECT SOCIO-CULTURAL SIDE OF THE PROJECTMANAGEMENT PROCESS SHAPING A PROJECT CULTURE THAT STIMULATES

TEAMWORK AND HIGH LEVELS OF PERSONALMOTIVATION

PROBLEM SOLVING APPROACH

EFFECTIVE COMMUNICATION SESSIONS WITHSTAKEHOLDERS