PROJECT MANAGEMENT

• Traditional form of organizations with specific departments were effective in handling established operations characterized by repetitive work, specific departments performing specific functions.

• But traditional organizational setup is not suitable for Project Management. Why…

• Project is non-routine & non-repetitive activity mostly surrounded with uncertainties.

• Relationships in project are dynamic, temporary & flexible

• Project requires coordination of different people drawn from different functions including external agencies.

• Major focus of Project Management is on Project Implementation

PROJECT IMPLEMENTATION

• Schedule of Project Implementation• Project Planning• Project Control• Human Aspect of Project Management

Schedule of Project Implementation

A well-designed project implementation schedule clarifies and describes what the project should deliver and within what time-frames.

Key Components of Project Implementation Schedule

• Number and brief descriptions of project phases• Specifying deliverables after completion of each

phase• Highlighting major activities for each

deliverable• Specifying Key milestones• Responsibilities and assignments• Dependencies

Project Planning

• Small size project with less complexities might require an Informal Planning

• Larger Projects with higher complexities require a formal planning.

• Without effective planning there might be chaos

Functions of Planning

• It organizes work on the project and allocates responsibilities to individuals

• Acts as means for Coordination & Communication amongst those working in the project.

• It helps people to look ahead• It develops a sense of urgency & time

consciousness• It establishes the basis for monitoring & control

Areas of Planning• Planning the Project Work: Activities of the

project are spelled out clearly. They are properly scheduled & sequenced.

• Planning the Manpower & Organization: Kind of manpower required and in what quantity. Work being allocated to all those working on the project

• Planning the money: Expenditure of money in a time-phased manner.

• Planning the information system: Kind of information required for monitoring the project must be defined.

Essentials of Planning• Project Objectives and Policies: Well defined

objectives & policies serve as the framework for the decisions to be made by the Project Manager while Planning.

• Work Breakdown Structure: Systematic & logical breakdown of the project into various subparts till manageable units are identified and accordingly job responsibilities are identified for these work units.

• Clarification of Project Objectives & Work Breakdown Structure lead towards effective planning

Human Aspect of Project Management

In order to execute the project smoothly Project Manager must handle issues related to:

• Authority• Orientation• Motivation• Group Functioning

Project Control

It Involves:• Regular comparison of performance against

targets • A search for the cause of deviation

Project Control Ensures:

• Regular Monitoring of Performance

• Motivates Project Personnel to strive and achieve project objectives.

Importance of Project Control

• Inappropriate Planning and Monitoring plays a major role as the cause of project failures

• It has been proved time and again that Project performance can be improved if dedicated Project Controls systems are in place.

• The development of a suitable Project Control system is an important part of the project management effort

Variance Analysis: Traditional Approach

• A traditional approach of project control involves a comparison of actual cost with the budgeted cost to determine the variance.

• It is backward looking approach rather the forward looking.

Performance Analysis: Modern Approach

• Performance Analysis a forward looking approach seeks to know systematically whether the expenditure incurred was in proportion to the progress made in the project.

This analysis is made by employing an analytical framework based on 5 components:

1) BCWS (Budgeted Cost for Work Scheduled): Includes the budget for all the work that has been scheduled to be completed within a prescribed time frame.

2) BCWP (Budgeted Cost for Work Performed): This includes budgets for work performed under the defined work packages.

3) ACWP (Actual Cost of Work Performed): This represents the actual cost incurred for accomplishing the work performed during a prescribed time frame.

4) BCTW (Budgeted Cost for Total Work): It is the total budgeted cost for the entire project work.

5) ACC (Additional Cost for Completion): This would give an estimate of any additional cost that might be required to complete the project