Introduction to Project Management

Prof. Anil Mendhi

History of Project ManagementModern project management began with the Manhattan Project, which the U.S. military led to develop the atomic bombIn 1917 Henry Gantt developed the Gantt chart as a tool for scheduling work in job shopsIn 1958, US Navy developed PERT chartsIn the 1970s, the military began using project management software, as did the construction industryBy the 1990s, virtually every industry was using some form of project management

Prof. Anil Mendhi

WEBSTERS DICTIONARYA plan; scheme, an undertaking; specific task, mission, job, assignment, task, endeavor, etc.A special unit of work, research, etc. as in school proposal of something to be, a laboratory, etc.An extensive public undertaking, as in conservation, construction, etc.

Prof. Anil Mendhi

What Is a Project?A project is a temporary endeavor undertaken to accomplish a unique purposeAttributes of projectsUnique definable purpose.Temporary, one time activity, never to be exactly repeated.Require resources, often from various areas.Teams are formed for a purpose and disbanded after achieving the purpose.Projects cut across the organizational lines; many disciplines are involved.Should have a primary sponsor and/or customer / stake holder/sInvolve uncertainty and unfamiliarity, does not fall under the routine category of activityProject is the process of working to achieve a pre-defined goal and during the process, the project may pass through various phases

Prof. Anil Mendhi

EXAMPLESPyramid of Egypt (2500 B.C. 2.3 Mn. Stone blocks weighing 2 to 70 tons each, quarried and carried over the Niles, height equivalent of 40 storey building, 13 acres of land, deviation of less than an inch in levels, stones fixed with accuracy of .04 inch!!)100,000 laborers, 40,000 skilled masons, over 150,000 women & children to be housed & fed!Numerous other examples like Taj Mahal, Eiffel tower, international space station by NASA, anti missile system developed by India, etc.Advantix advanced photo system created by Kodak in one of their most ambitious projects everFrom construction, information technology to research, projects could be conceived in all possible fields.Each project is unique in many ways.

Prof. Anil Mendhi

EXAMPLES contd.AT CORPORATE LEVEL:

- Restructuring - Relocation- Acquisition / Merger- New product or system developmentAT FAMILY / PERSONAL LEVEL:

- Remodeling of a home - Wedding- Moving to another houseMOST ARTISTIC ENDEAVOURS ARE PROJECTS!!

Prof. Anil Mendhi

TYPES OF PROJECTSManufacturing projects Civil engineering, construction, petrochemical, mining, infrastructure and other projects requiring external organisationManagement projects Greenfield Projects for setting up new establishmentsScientific Research ProjectsSystems Development Projects

Prof. Anil Mendhi

EXCEPTIONS..Building a skyscraper is a project; but mass construction of pre-fabricated homes is a scheduled and repetitive task rather than a project.Repetitive work of accounts and audits is not a project.Exploratory mission to Mars or Moon are projects; conducted tours to tourist places are not projects.

Prof. Anil Mendhi

The Triple ConstraintEvery project is constrained in different ways by itsScope goals: Quantity & QualityTime goalsCost goalsIt is the project managers duty to balance these three often competing goals

Prof. Anil Mendhi

The Triple Constraint of Project Management

Prof. Anil Mendhi

What is Project Management? Project management is the application of knowledge, skills, tools, and techniques to project activities in order to meet or exceed stakeholder needs and expectations from a project (PMI)*, *The Project Management Institute (PMI) is an international professional society. Their web site is www.pmi.org.

Prof. Anil Mendhi

CHARACTERISTICS OF PROJECTSProject can also be described as a unique set of co-ordinated and inter-related activities undertaken by an organisation to meet defined objectives; that has an agreed start and finish time; is constrained by cost & resources and has specified performance requirements.Projects are unique in nature. Everything is special and 'one-off'. Designs are new and usually unproven. Every industrial or commercial project is a risk venture. The job of the manager is to identify the risks and, through his project management, contain them. The application of techniques and management practices that have been developed will depend on the size and type of project, and upon the relative priorities, which are assigned to the cost, time and performance objectives.

Prof. Anil Mendhi

CHARACTERISTICS OF PROJECTSProject has a definite start and finish (Time goals and Scope goals quantity and quality and).Project consists of a well-defined and unique collection of jobs, activities, or tasks which when complete; mark the end of project.Project is constrained by cost, time & resources and has specified performance requirements.The jobs may be started or stopped independent of each other, within a overall given sequence.The jobs are ordered - i.e., they must be performed in technological order.

Prof. Anil Mendhi

Project StakeholdersStakeholders are the people involved in or affected by project activitiesStakeholders includeThe project sponsor or promoter, project team, equity / share holderssupport staffCustomers / usersSuppliers / Vendors / Sub-contractorsFinancial Institutions / lenders / bankersGovt. / Approving authoritiesAffected population / opponents to the project

Prof. Anil Mendhi

Project Management Knowledge AreasKnowledge areas describe the key competencies that project managers must developFour core knowledge areas (viz. scope, time, cost, and quality) help in fixing targets / objectives.Four facilitating knowledge areas (viz. human resources, communication, risk, and procurement management) are the means through which the project objectives are achieved.One knowledge area (project integration management) affects and is affected by all of the other knowledge areas

Prof. Anil Mendhi

Project Management FrameworkTT

Prof. Anil Mendhi

Project Management Tools and TechniquesProject management tools and techniques assist project managers and their teams in various aspects of project managementSome specific ones includeProject Charter and Work Breakdown Structure - WBS (scope)Gantt charts, PERT charts, critical path analysis (time)Cost estimates and Earned Value Analysis (cost)

Prof. Anil Mendhi

Advantages of Project ManagementBosses, customers, and other stakeholders do not like surprises.Good project management (PM) provides assurance and reduces risk.PM provides the tools and environment to plan, monitor, track, and manage schedules, resources, costs, and quality. PM provides a history or metrics base for future planning as well as good documentation.Project members learn and grow by working in a cross-functional team environment

Source: Knutson, Joan, PM Network, December 1997, p. 13

Prof. Anil Mendhi

Today, the definition of a project is no more confined to engineering, technology and research; But has expanded to include recurring situations, one time crisis, and dealing with difficult issues.

It has been realised that the solution to majority of corporate problems involves obtaining better control and use of existing corporate resources. Project Management is one of the techniques being considered.

Project management is being used by a wide range of disciplines and corporations that had never previously considered it as a viable method of performing work PROJECTIZING THE ORGANIZATION

Prof. Anil Mendhi

Legal offices, hospitals, banking and other services as well as traditional manufacturing firms have become enthusiastic about the ways in which project management is improving their delivery of services or creation of new products. Some typical examples are: Annual budgeting / auditing exercises Introduction of new systems (ISO 9000) Effecting change in structure, staffing, or style of Organization Software development & implementation Development of new product / Service Campaign for new product launch / election Organizing AGM / sales conference / eventPROJECTIZING THE ORGANIZATION

Prof. Anil Mendhi

TIMETECHNOLOGYCULTURAL SYSTEMSOCIAL SYSTEMPOLITICAL SYSTEMREGULATORY AND LEGAL SYSTEMECONOMIC SYSTEMORGANISATIONAL SYSTEM.

PROJECTS ARE SHAPED BY THEIR ENVIRONMENT

Prof. Anil Mendhi

RESOURCES, BUDGETS,

METHODS AND TOOLS OF PROJECT MANAGEMENT

DEPEND ON ABOVE FACTORS AND CHANGE ACCORDINGLY.IMPACT OF ENVIRONMENT (CONTD.)

Prof. Anil Mendhi

CURRENT PROJECT ENVIRONMENTINCREASING GLOBAL COMPETITIONRAPID TECHNOLOGICAL CHANGERAPID PRODUCT OBSOLESCENCE RATEORGANISATIONAL DOWNSIZINGBUSINESS RE-ENGINEERINGEMPOWERMENTFOCUS ON QUALITY & CONTINUOUS

IMPROVEMENTINFORMATION DELUGEFASTER COMMUNICATIONINTER-ORGANISATIONAL SYSTEMS

Prof. Anil Mendhi

PROJECTS ARE GIVEN MORE IMPORTANCE BY THE MANAGEMENT FOR SURVIVAL OF THE OGANISATIONINCREASING NEED FELT TO DO PROJECTS RIGHT & SUCCESSFUL THE FIRST TIMEMORE LIMITATIONS ON RESOURCES AND LESSER ORGANISATIONAL SUPPORTINCREASING PRESSURE ON PROJECT MANAGEMENT TO ACHIEVE QUICK RESULTS

IMPACT OF CURRENT PROJECT ENVIRONMENT ON ORGANIZATIONS

Prof. Anil Mendhi

PROJECTS ARE TENDING TO GET MORE COMPLEX & LARGE TO HANDLEPROJECTS TO BE COMPLETED AHEAD OF SCHEDULE, ALWAYS.NEED MORE FLEXIBILITY IN DEFINING SCOPE, PLANNING & EXECUTION TO EXPAND PROJECT BENEFITS AND IMPACT

IMPACT OF CURRENT ENVIRONMENT ON PROJECTS

Prof. Anil Mendhi

INFORMATION SHARING- Not just possessingPROCESS ORIENTATION

- Not just system orientationNON-LINEAR THINKING

- As opposed to linearityADOPTING PROJECT MINDSET

Prof. Anil Mendhi

PM RESPONSE TO CHANGING ENVIRONMENTNeed for a managerial approach to deal with problems and take advantage of opportunities.Modern era implies interdependency, complexity, rapid and radical changes and hence elements of uncertainty and risks.PM is different from management of simpler ongoing, repetitive, operations where the market and technology are predictable.More organic forms of organization are now required to ensure quick adaptability and rapid response to changing environment are necessary.

SYSTEMS APPROACH TO MANAGEMENT IS ESSENTIAL!

Prof. Anil Mendhi

STAGES OF A PROJECT P R O P O S A LCONCEPTDEVELOPMENT & DEFINATIONEVALUATIONP L A N N I N GSCOPESCHEDULEBUDGETRESOURCESORGANIZATIONI M P L E M E N T A T I O NDETAIL ENGINEERING & DESIGNPROCUREMENTMANUFACTURING & CONSTRUCTIONTRIALS & COMMISSIONINGC L O S I N GOPERATION & MAINTENANCELEARNINGSDOCUMENTATIONSNAG LIST & FAILURE ANALYSISAUTHORIZATIONSANCTIONHAND OVERPROJECT EFFORTS

Prof. Anil Mendhi

PROJECT MANAGERHis responsibility is to plan, organize, direct and integrate work efforts of all participants to achieve the set project goals (costs, time schedules and scope goals).One person in the organization who is accountable for the project and is totally dedicated to achieving its goals.Leadership qualities are essential.

Prof. Anil Mendhi

DUTIES OF A PROJECT MANAGERAS A RESOURCE MANAGER: Manage and direct project resources to achieve the project objectives.AS A PLANNING & CONTROL MANAGER: Develop the project plan and ensure that the work is completed on time, within given budget and with acceptable quality.AS A CO-ORDINATOR: Interface with higher management regarding project review, approvals and addressing project issues. The must also relate successfully to line managers and staff.

Prof. Anil Mendhi

What does a project manager do?DIRECTING:Project ResourcesMOTIVATING:Project TeamPLANNING: Anticipate and planSUPERVISING:The Project WorkADMINISTERING:Administrative TasksDOING:Doing some tasks directlyTRAINING: Project TeamCOUNSELING:Technical, Business, Project & Personal issuesDELEGATING:Delegate & superviseRESOLVING CONFLICT:Over resources and schedules

Prof. Anil Mendhi

PROJECT TEAMProject work is team work.Project work is accomplished by a group of people from different functional areas and organizations.Size and composition of the team will vary depending on the project requirements. The team may be disbanded after the project work is completed.

Prof. Anil Mendhi

PROJECT MANAGEMENTPROJECT CLOSUREPROJECT IMPLEMENTATIONPROJECT PLANNINGPROJECT SCHEDULINGSCOPEDEFINITIONINVESTMENTDECISIONPROJECT BUDGETINGPROJECT ENVIRONMENTIDEAGENERATIONRISKASSESSMENTFEASIBILITY &APPRAISALNETWORKTECHNIQUESGANTT CHARTS

Prof. Anil Mendhi

PROJECT MANAGEMENTPROJECT CLOSUREPROJECT IMPLEMENTATIONPROJECT PLANNINGPROJECT CONTROLPROGRESSREPORTINGPROJECTMONITORINGCOST TILL DATESCHEDULEUPDATESCOPECHANGEAD-HOCREPORTSPERIODICREPORTS

Prof. Anil Mendhi

PROJECT MANAGEMENT SYSTEM / ORGANIZATIONINFORMAL ORGANIZATIONFORMAL ORGANIZATION

TRADITIONAL PROJECT TEAM APPROACH MATRIX TYPE

Prof. Anil Mendhi

How Project Management (PM) Relates to Other DisciplinesMuch of the knowledge needed to manage projects is unique to PMHowever, project managers must also have knowledge and experience inGeneral managementThe application area of the projectProject managers must focus on meeting specific project objectives

Prof. Anil Mendhi

Project Management and Other Disciplines

Prof. Anil Mendhi

PROJECT MANAGEMENT V/S GENERAL MANAGEMENTPROJECT MANAGEMENTLong term, usually much more than one year.More strategic thinking involved.PROCESS: Has to be developed & designed new each time. Considerable uncertainty and many unknown factorsNew multi-disciplinary team to be created usually from of personnel from other departments. Projects are initiated to bring about change. Substantially Large

GM/MANUFACTURING Short & medium term, usually within one year.Focus on minor day-to day issuesStabilised over a period of time due to experience, minimum uncertainty.Plant & personnel already exist. Direct control over personnel.Minimal change is expected in set routine.Comparatively smaller

Prof. Anil Mendhi

The Project Management ProfessionA 1996 Fortune article called project management the number one career choice.Other authors, like Tom Peters and Thomas Stewart, stress that projects are what add value to organizations.Professional societies like the Project Management Institute have grown tremendously.

Prof. Anil Mendhi

Project Management CertificationPMI provides certification as a Project Management Professional (PMP)A PMP has documented sufficient project experience, agreed to follow a code of ethics, and passed the PMP examThe number of people earning PMP certification is increasing quickly

Prof. Anil Mendhi

Code of EthicsPMI developed a project management code of ethics that all PMPs must agree to abide byConducting work in an ethical manner helps the profession earn confidenceEthics are on the web at www.pmi.org/certification/code.htm

Prof. Anil Mendhi

Discussion / Review Questions

Give three examples of activities that are projects and three examples of activities that are not projectsWhat are the basic functions of a Project Manager? What qualities, qualifications and experience would you recommend for an effective Project Manager? (2000)Discuss Human Aspects of Project Management in relation to Authority, Personnel Orientation, Motivation and Team Building. (2000)How does project management differ from the management of other types of manufacturing activities? (2001)Write short note on main features and advantages of Matrix type organisation for projects. (2001)

Prof. Anil Mendhi

Discussion / Review Questions (contd.)Define Project. What are the main characteristics that identify and differentiate projects? Do you think that the specialised project management techniques can be applied effectively to non-engineering areas of organizational functions? Explain your answer with suitable examples. (2002)Define Project Management. What are the main criteria for assessing success of projects? (2003)How is project management different from general management?Why do you think so many information technology projects are unsuccessful?

Prof. Anil Mendhi

QUESTION PAPER PATTERN100 MARKS PAPER AND FOUR HOURS DURATION.ANY FIVE QUESTIONS FROM USUALLY SEVEN QUESTIONS. EACH QUESTION IS OF 20 MARKSQUESTION PAPER IN TWO PARTS.BOTH WILL HAVE ONE QUESTION ON THEORY (DESCRIPTIVE) 40 MARKSREST OF THE QUESTIONS WILL BE MAINLY ON NUMERICALS OR A MIX OF THEORY AND NUMERICALUSUALLY NUMERICALS ARE ON:

1. Market forecasting,2. Project evaluation techniques (Financial appraisal / discounting techniques, etc.),3. Probability Theory and decision tree techniques,4. Cash Flows5. Gantt charts, Work Flow, PERT, CPM or networking techniques,

Prof. Anil Mendhi