Project Management What is a Project what would its management mean

Time to think
Project ?

Concepts

Definitions Examples Characteristics Taxonomy

Project -Definition
A Project is a temporary endeavor undertaken to accomplish a unique purpose A project is any undertaking with a defined starting point and defined objectives by which completion is identified: PMI A combination of human and non-human resources pooled together in a temporary organisation to achieve a specific purposePMI

More About Projects

It has a well-defined objective stated in terms of scope, schedule, and costs. Projects are born when a need is identified by the customer the people or organization willing to provide funds to have the need satisfied. It is the people (project manager and project team), not the procedures and techniques, that are critical to accomplishing the project objective. Procedures and techniques are merely tools to help the people do their jobs.

Definitions
Project Management
Planning, directing, and controlling resources to meet the technical, cost, and time constraints of the project.

Program
Synonym for a project, although it also can consist of several interrelated projects.

Examples of Project
Personal Planning a wedding, planning a trip Painting a house, furniture work Entertainment Making a movie or a serial Events Filmfare/ IIFA / Grammy Awards Exhibitions, Fares Workshops, Seminars, Conferences

Examples of Project
Educational Admissions for BBA/BFT course Conducting examinations Infrastructure Build a tunnel, dam, bridge (flyovers) Powerplant, Expressways Industrial New Product Development (TATA Nano) New Production Facility (G M, Talegaon)

Examples of Project
Financial Services Raising money through IPO / Public Issue Launching a New MF Scheme Setup new branch for a bank Loan syndication

CHARACTERISTICS
Mission or Set of Objectives-fixed mission / set of objectives, a project is completed as soon as the mission is accomplished Uniqueness -no two projects are exactly similar Life span-cannot continue endlessly Life cycle- The project lives between the two cut-off points and the time-span is known as Project life cycle (introduction, growth, maturity, decay) Single entity- one responsibility center One Time Activity non-repetitive Team work it calls for team work

CHARACTERISTICS
Risk & Uncertainty -depends on how it has passed through various life-cycle phases, many changes throughout its life, uncertainty of the next stage Customer SpecificMade to order, customer stipulates various requirements Unity in diversity-Variety Subcontracting This is inevitable and is done to a high level

MORE CHARACTERISTICS
Customer Specific nature Change Response to environment Forecasting Rational choice Principle of succession Optimality Control mechanism Multidisciplinary Conflicts Parts of Large Program

Project Performance Parameters

Project Success Criteria

Setting project targets is a key task that defines the process of project decision making and project performance analysis. The usual approach of triple constraints is very complicated, yet it does not include all the necessary considerations for determining if a project is successful.

Project Success Criteria

Is Sydney Opera construction an example of successful project? No, because actual expenses exceeded the planned budget by several times. Yes, because it became one of the most famous Sydney attractions, bringing many tourists and a lot of money.

Project Success Criteria

The Motorola Iridium Project was finished on time and within budget. Can it be considered a successful project? No! Iridium, backed by Motorola Inc. (MOT), sought bankruptcy-court protection in 1999 after its $5 billion low-Earth orbit satellite (LEOS) fleet failed to attract customers or provide the quality service its backers had hoped for.

Project Success Criteria

If project success criteria are set as finishing project on time and under budget then proper decision making will be complicated. It does not allow us to interpret the significance if the project exceeds the planned budget but is finished earlier than expected or if it is finished late but saves some money. It fails to evaluate the consequences if the project was on time and within planned budget but expected revenues were not achieved

Project Success Criteria

How to set one single project success criterion that integrates project schedule, cost and business goals and Quality Establishing this single criterion is complex since it must include project scheduling, project budgeting, estimating of the future business benefits from the project product delivery, and risk analysis and simulation.

Project Success Criteria

If a project is business oriented then this project must have business targets and criteria of its success or failure. The natural choice setting target Internal Rate of Return (IRR). Con: The Product Life Cycle may be too long for reliable IRR estimation, Uncertainties may be too great for proper IRR management

Project Success Criteria

One of the potential alternative options to set a target profit that should be achieved at some point in time based on the forecast of the revenues to be realized after the project results are delivered. If the project profit meets or exceeds the target profit then performance is successful. Such success criterion will permit weighting and balancing of time and money to make reasonable managerial decisions.

Distinguishing Project & Routine Work

1. A project is an exception A project involves investigating, compiling, arranging, and reporting information outside the range of usual activities while routine is defined within the range of a departments function Example: The manager of a customer service department prepares monthly reports identifying customer contact trends (complaints, inquiries, suggestions) as part of her routine. When she is given the task of investigating and comparing automated customer service software, she is responsible for a project.

Project Vs Routine Work

2. Project activities are related Routines for recurring tasks performed in a department are related to the activities that define and distinguish that department only. whereas the activities involved in project phases are related to one another and to a desired end result.

Project activities are related An Example

The customer service manager given the project of investigating automated systems may work with the IT manager, the marketing department, and several suppliers. Collectively, the internal and external information will help him/her identify the points of comparison.

Project Vs Routine Work

3. Project goals and deadlines are specific Recurring tasks may be managed with departmental goals in mind; but these goals tend to remain fixed, or move forward only with time. The same is true of deadlines; one may face weekly or monthly deadlines for completion of reports, processing, and closing. Projects, though, have singular goals that will be either reached or missed. And projects have clear starting points and completion dates.

Project goals and deadlines are specific- An Example

The customer service manager is told to compare prices and features of software, make a recommendation, and complete a report within three months. This project has a clear goal and deadline. In comparison, his/her departments routine goals and deadlines extend from one month to another.

Project Vs Routine Work

4. The desired result is identified Routines are aimed not at one outcome but at maintenance of processes. whereas the research, development of procedures, or construction of systems or buildings on a project produce a tangible, desired result.

The desired result is identified - An Example

Example: For his/her project, the customer service manager is expected to deliver a conclusive report. Its a one-time assignment, not one that will recur each month. the routine reports the department generate will still be produced as a maintenance function of the department.

Projects Vs Routine
Projects are also distinguished from routines by the way in which they must operate under the three constraints of result, budget, and time. To a degree, all management functions operate within these constraints. And these may Routine functions may be mistaken as Project.