CONCEPTS OF PROJECT MANAGEMENT

OBJECTIVES
1. To explain the nature and scope of Project management.
2. To give an over view about system approach and Project management.
3. To give an outline about the factors influencing effective Project management.
INTRODUCTION
Projects are the building blocks to meet the enterprise objectives. Project
management is essentially involved in executing the projects. t is recogni!ed as a
management philosophy in the recent past in addition to that of discipline. Project
management has always been central to the existence of industries like construction"
aerospace and defense" where schedule and cost goals are contract fundamentals.

The new design of maruti !en" concord supersonic jet aircraft" ship vasundhara"
#odrej puff refrigerator" compa$ue computer" %&T crane steel rolling mill of the Tatas"
'ew oil base for the ())*+ refinery" new production line of ,.- cement" highway roads
of the country.s capital city" new fly over in metropolitan cites etc have one thing
common/ indeed they are all purposefully uni$ue and they are project. The basis logic
behind on the these projects are/ a. nvestment of resources for a specific objective and b.
a cause of irreversible change.
What is a project
Project is a scientifically evolved work plan devised to achieve a specific
objective within a specific period of time. t can be considered as proposal involving
capital investment for the purpose of developing facilities to provide goods a and
services.
* project is a blue for print action oriented activities of an organi!ation. * project
reflected the plan for action in its totality. %ike a movie film it is projection oriented
process. The project has beginning middle and an end.
0or example" cement project" manufacturing
Power project" refinery projects
1ealth project" (ducational projects
)ocial project" construction projects etc.
DEEINITION OF PROJECT
* Project is a one2shot" time limited" goal directed" major undertaking" re$uiring
the commitment of varied skills and resources. t has also been described a s a
combination of human and non human resources pooled together in a temporary
organi!ation to achieve a specific purpose. The purpose and the set of activities which
can achieve that purpose distinguish one project form another.
!Project Ma"a#e$e"t I"stit%te& U'S&A
3.4e mean by a project any scheme" or part of sachem" for investing resources
which can reasonably be analy!ed and evaluated as an independent unit. The definition is
thus arbitrary. *lmost any project could be broken down into parts for separate
consideration/ each of these parts would then by definition a project5.
! I'M'D' (itt)e a"* J'A' Mirr)ess'
6* specific activity with a specific starting point and a specific ending point
intended to accomplish a specific objective. t is something you draw a boundary around
at least a conceptual boundary and say this is the Project5.
!J' Price Getti"#er'
67ompilation of data which will enable an appraisal to be made of the economic
advantages and disadvantages attendant upon the allocation of country.s resources to the
production of specific goods and services.5
!U"ite* Natio"s'
FEATURES OF A PROJECT
* project can be identified by its features. The special features of a project that
would differentiate from any other on going activity are given below8
* project fixed set of objectives. 9nce the objectives have been achieved" the
project ceases to exist.
t has a specific life span.
Project has for a teamwork"
Project has a life cycle reflected by growth" maturity and decline similar.
7hange is an inherent feature in any project out its life.
Project is based on successive principle and hence it is difficult to learn fully the
end results at any stage.
* project works for a specific set of goals with the complex set of diversified
activities.
1igh level of sub2contraction of work can be done in a project.
(very project has risk and uncertainty associated with it.
Project needs feasibility any appraisal studies. )o that the sponsors sweet dream
becomes reali!able.
T+pes o, projects
:uch of what the project will comprise and conse$uently its management will
depend on the category it belongs to. The location" type" technology" si!e" scope and
speed are normally the factors which determine the effort needed in executing a project.
Though the characteristics of all projects are the same" they cannot be treated alike.
+ecognition of this distinction is important for management. 7lassification of project
helps in graphically expressing and highlighting the essential features of the project.
Projects are often categori!ed in terms of their speed of implementation as
follows8
'9+:*% P+9,(7T)
*de$uate time is allowed for implementation.
*ll the phases in a project are allowed to take their normal time.
:inimum re$uirement of capital.
'o sacrifice in terms of $uality.
7+*)1 P+9,(7T)
+e$uires additional costs to gain time.
:aximum overlapping of phases is encouraged.
;)*)T(+ P+9,(7T)
*nything needed to gain time is allowed in these projects. *round the clock work
is done at the construction site. 7apital cost will go will go up very high. Project time will
get drastically reduced.
<esides that" projects in general are classified on several basis as give in the
following illustrative list.
2 =nited 'ations *sian and Pacific ;evelopment nstitute.
7ategories of Projects
PROJECT
'ational nternational
'on ndustrial ndustrial
'on 7onventional
+ & ;
1igh Technology 7onventional %ow Technology
:ega :ajor :edium :ini
#ross +oot (xpansion :odification
'ormal 7rash ;isaster
C(ASSIFICATION OF PROJECT
The project can be classified on several basis. :ajor classification of the projects are
given below8
-' O" the .asis o, E/pa"sio"0
1. Project expanding the capacity
2. Project expanding the supply of knowledge.
1' O" the .asis o, Ma#"it%*e o, the reso%rces to .e i"2este*0
1. #iant projects affecting total economy
2. <ig projects affecting at one sector of the economy
3. :edium si!e projects
>. )mall si!e projects ?depending on si!e" investment & impact@
3' O" the .asis o, Sector0
1. ndustrial project
2. *gricultural project
3. (ducational project
>. 1ealth project
A. )ocial project
4' O" the .asis o, o.jecti2e0
1. )ocial objective project
2. (conomic objective project
5' O" the .asis o, pro*%cti2it+0
1. ;irectivity productive project
2. nteractively productive project
6' O" the .asis o, "at%re o, .e"e,its0
1. Buantifiable project
2. 'on2$uantifiable project
7' O" the .asis o, #o2er"$e"t priorities0
1. Project without specific priorities
2. Project with specific priorities
8' O" the .asis o, *epe"*e"c+
1. ndependent project
2. ;ependent project
9' O" the .asis o, o:"ership
1. Public sector project
2. Private sector project
3. ,oint sector project
-;' O" the .asis o, )ocatio"
1. Project with determined location
2. Project with future impact
-- O" the .asis o, socia) ti$e 2a)%e o, the project
1. Project with present impact
2. Project with future impact
12. O" the .asis o, Natio"a) po)ic+
1. Project determined by inward looking policy
2. Project determined by outward looking policy
-3' O" the .asis o, ris< i"2o)2e* i" the project
1. 1igh risks project
2. 'ormal risks project
3. %ow risks project
-4' O" the .asis o, eco"o$ic )i,e o, the project
1. %ong term project
2. :edium term project
3. )hort tern project
-5' O" the .asis o, tech"o)o#+ i"2o)2e* i" the project
1. 1igh sophisticated technology project
2. *dvance technology project
3. 0oreign technology project
>. ndigenous technology project
-6' O" the .asis o, reso%rces re=%ire* .+ the projects
1. Project with domestic resources
2. Project with foreign resources
-7' O" the .asis o, e$p)o+$e"t opport%"ities a2ai)a.)e i" the project
1. 7apital intensive project
2. %abour intensive project
-8' O" the .asis o, $a"a#e$e"t o, project
1. 1igh degree of decision making attitude
2. 'ormal degree of decision making attitude
3. %ow degree of decision making attitude
-9' O" the .asis o, so%rces o, ,i"a"ce
1. Project with domestic financing
2. Project with foreign financing
3. Project with mixed financing
>. Project with financial institutions
1;' O" the .asis o, )e#a) e"tit+
1. Project with their own legal entity
2. Project without their own legal entity
1-' O" the .asis o, ro)e p)a+e* .+ the project
1. Pilot project
2. ;emonstration project
11' O" the .asis o, spee* re=%ire* ,or e/ec%tio" o, the project
1. 'ormal project
2. 7rash project
3. ;isaster project
PROJECT (IFE C>C(E
(very programme" project or product has certain phases of development. The
different phases of development in an investment proposal or project is called life cycle.
* clear understanding of these phases permits entrepreneurs" managers and executives to
have better control over existing and potential resources in the achievement of the desire
goals.
P?ASES OF PROJECT (IFE C>C(E
Project life cycle is complex process consisting of different steps arranged in a
se$uential order. ;ifferent authors have described these steps different se$uential
manner but the concept of the cycle is almost similar in each case.
*ccording to =nited 'ations #uidelines for +ural 7entre Planning" there are C
steps in the project life cycle such as project identification and appraisal" pre2feasibility
study" feasibility study detailed design project implementation" operation maintenance"
monitoring and evaluation.
+ondinelli" ;ennis & *psy Palia in their book 6Project Planning and
implementation in ;eveloping countries5 identified the following 12 steps in the project
life cycle. Project identification and definition" project formation" preparation and
feasibility analysis" project design" project analysis" project selection" project activation
and organi!ation" project implementation and operation" project supervision ?monitoring
and control@ project completion or termination" output diffusion and transition to normal
administration" project evaluation follow2up and action.
4orld <ank #uidelines reveals the following six major steps in the project life
cycle. 7onception ?identification@" 0ormation ?preparation@" *nalysis ?appraisal@"
mplementation ?supervision@" operation and evaluation.
*ll the steps given in different studies can be grouped into three main phases vi!."
2 Pre2investment phase
2 mplementation phase and
2 9perational phase
* brief description of each of these phases in given below8
PRE!INVESTMENT P?ASE
The first phase of the cycle describes the preliminary evaluation of an idea. t
consists of identification of investment opportunities" preliminary project analysis"
feasibility study and decision2making. Project idea emanates from the following
problems/ potential and the needs of the people of an area/ plan priorities when planning
is done by the government demand and supply projection of various goods and services/
Pattern of imports and exports over a period of time/ natural resources which can serve as
the base for potential manufacturing activity/ scope of extending existing lines of activity/
consumption pattern in other countries at comparable stages of economic stages of
economic development.
9n the basis of the investment opportunities" it is possible to conceive a number of
projects out of which a particular project may be consistent with development objectives
of the area. ;uring this phase" the following aspects of a project must be carefully
designed so as to enable implementation.
Project infrastructure and enabling services
)ystem design and basic engineering packages
9rgani!ation and manpower
)chedule and budgets
%icensing and government clearances
0inance
)ystems and procedure
dentification of project manager
;esign basis" general condition for purchase and contracts
7onstriction resources and materials
4ork packaging
This phase is involved with preparation for the project to take out smoothly.
9nce a project opportunity is conceived" it needs to be examined. Preliminary
project analysis concerns with marketing" technical" financial and economic aspects of
the project. t seeks to determine whether the project is prima facie worthwhile to justify
a feasibility study and what aspects of the projects are critical to its viability and hence
call for an in depth investigation.
:ore details" through and complete feasibility study results in a reasonably
ade$uate formulation of the projects in terms of location" production capacity production
technology and material inputs. The feasibility study contains fairly specific estimates of
projects cost" means of financing sales revenues" production costs" financial profitability
and social profitability.
<ased on the thorough feasibility study the project owner or sponsors or
financiers can decide whether to accept or reject particular project. n other words" the
decision whether investment on the project should be made or not has to made at this
stage.
IMP(EMENTATION P?ASE
The implementation phase of an industrial project involves setting up of
manufacturing facilities. *fter judging the worthiness" project needs to be designed for
implementation. ;rawing" blue prints and the se$uences in which the various activities
concerning the project need to be carried out. The main activities under this phase are8
Project and engineering design8 t consists of site probing and prospecting"
preparation of blue prints" plant design" plant engineering" selection of machinery"
e$uipment.
'egotiations and contractions8 t covers the activities like project financing"
ac$uisition of technology" construction of building and civil works" provision of utilities
supply of machine and e$uipment" marketing arrangement etc.
7onstruction8 This step involves the activities like site preparation" construction
of building" erection and installation of machinery and e$uipment.
Training engineers" technicians and workers.
Plant commissioning
OPERATION P?ASE
t is the longest phase in terms of time span. t begins when the project is
commissioned and ends when the project is wound up. This is a transition phase in which
the hardware built with the active involvement of various agencies is physically handed
over for production. This phase is basically a clean up phase for project personnel. The
main concern of this phase is on smooth and uninterrupted operation of machinery and
plant" development of suitable norms of productivity" establishment of a good $uality fo
rhte product and securing the market acceptance of the product. t aims to reali!e the
projection made in the project regarding sales" production" cost and profits. Project
monitoring and project evaluation are two vital activities under this phase.
Project monitoring is a step towards achieving properly identified objectives
through a carefully laid down strategy. (ach activity in the project implementation should
be carefully watched so that" the progress may be measured and any deviation from the
expected progress be identified in time.
Project evaluation refers to post2investment analysis. t aims at finding out
whether the project has achieved the objectives for which it was taken up and whether it
has created the anticipated or intended impact. This helps in developing an insight for
future investment and better planning.
Thus the life cycle of a project narrates the methodology of developing"
maintaining nd controlling an investment proposal at its various phases in the life cycle.
The various steps in the project life cycle are given in the following diagram.
Dia#ra$ -
PROJECT (IFE C>C(E
1. nformation input 2. nvestigation of
technology" feasibility etc. 3. 7ompetition
>. Preliminary evaluation
1. Post2mortem
2.0inal de2manning
3. 0inal reports
>. 7ommissioning
aftermath
7onception 1. 9bjectives
2. (stablish goals
3.TB: procedures
>. )etting up control
systems
(valuation
*pplication
;efinition
Planning &
;esigning
;evelopment & 7onstruction
1. nstall and field test
2. Buality control
3. *dvertising begins
>. ;e2bug and
redesign
1. (stablish
structure
2. (ngineering
3. :odel building
>. ;esign review
1. Prototype development
2. 0irst units to test marked
3. <egin campaign
>. Progress report
PROJECT (IFE C>C(E CURVES
The project life cycle phases from an interesting pattern indicative of growth"
maturity and decline almost similar to product life cycle. The following figure shows the
typical project life cycle curve.
;iagram 2
TIME
t can be seen from that curve that effort built up in a project is very slow but
effort withdrawals is very sharp. t can also be seen that time taken in the formative and
clean up stages together is more than the implementation stage. This parabolic patterns of
growth" maturity and decline itself in all phases of the project life. This curve enable a
project manager to ascertain the state of health of any project at any point of time.
Project $a"a#e$e"t
Project management is an existing new profession which receives much attention
in these days. t is concerned with the management of resources successfully to complete
the project" the resources being time" money" materials and e$uipment and the most
expensive resources of all2 namely the human resources.
Project management is concerned with achieving a specific goal in a given time
using resources available for that period only.
Project management can mean different thing to different people. Project
management as regard ongoing project within a company refers the art of creating that
illusion that any outcome is the result of a series of predetermined" deliberate acts when"
in fact" it was dumb luck t is designed to make better use of existing resources by getting
work to flow hori!ontally as will as" vertically within a company.
*n overview definition of project management is the planning" organi!ing"
directing and controlling company resources for a relatively short term objective that has
been established to complete specific goals and objective. 0urther more" project
management utili!es the system approach to management by having function personnel
assigned to a specific project
Project :anagement has been evolved as a distinct discipline ever since the
)econd 4orld 4ar. Though it is special discipline it got elevated only in the recent
times" it has been in practice ever since the times of construction activities in this world.
7onstructions such as <ritish *isles" the Taj :ahal" (iffel Tower" %ondon <ridge etc."
stand testimony to the fact that the doctrine of Project :anagement are not new.
Project management resembles functional management in all aspects for all
practical purposes with a little difference. t is concerned with the management of
resources successfully to complete the project" the resources being time" money" materials
and e$uipment and the most expensive resource of all D namely the human resource. To
understand the project management one must first understand the basic concepts and
different approaches to the study of management. *n overview of different management
approaches with specific emphasis on )ystem approach to management approaches with
specific emphasis on )ystem approach to management and its relevance to project
management" brief mention about the steps in project management" benefits and
limitation of project management" and also an outline about effective project management
are discussed in this lesson.
Thus" the project management is designed to manage or control company
resources on a given activity" within time" within cost and within performance. This has
been depicted in the following diagram.
OVERVIEW OF PROJECT MANAGEMENT
GOOD CUSTOMER RELATIONS
TIME
COST
RESOUCES
PERFORMANCE
Project management involves project planning and project monitoring and
includes such item as
Project planning
;efinition of work re$uirements
;efinition of $uantity of work
;efinition of resources needed
Project monitoring
Tracking progress" comparing actual to predicated
*nalysis impact and making adjustments.
Thus" the successful project management can be defined as the process of
achieving the project objectives within the cost ?budget@" at the desired performance and
within the allocated time.
De2e)op$e"t o, a Project s+ste$
The three major groups of management theorists D the structuralists" the
functionalists and the behavioruists D differ some what on how the project manager deals
with problems shifting job environments but they are unanimous on the utility of the task
force as a useful device in group problem solving situations.
The structuralists argue that the project manager" as a unifying agent" integrates
the parochial interests of autonomous organi!ational elements towards a common
objective through the formation of some standard organi!ation instead of functional or
product departmentali!ation.
The funtionalists argue that project management is in reality simply the
application of the systems concept to organi!ational problems. They visuali!e integration
into a separate organi!ational system of activities related to particular projects or
programmes" :anagement science techni$ues" computer simulation approaches and
information decision systems are just a few of the tools that will make it possible for
management to visuali!e the firm as a total system.
The behaviouralists see the task force as organi!ed around problems ?not
products" programmes" projects or tasks@ arranged in an organic rather than a mechanical
model in which the executive becomes the link pin or coordinator but human speaking
the diverse languages or research and who has skills to realay information and mediate
between groups. People will be differentiated not vertically according to rank and status
but flexibly and functionally according to skill and professional training and replacing
bureaucracy as we know it.
Co$po"e"ts o, a Project Ma"a#e$e"t S+ste$
The vital components of a project from the systems perspective are8
9bjective8 The fundamental rationale of a system that must be accomplished.
+e$uirement8 * sine $ua non or a fundamental and irreducible constident of a
whole system that may even satisfy the objective to some extent.
*lternative8 * surrogate" a secondary course of action" if one fails out the other
will substitute and fulfill the needs of a system
)election criteria8 The matter of 3carrying out. is focused on assessing the choice
and selecting the best course of action.
7onstrain8 * demarcation point which describes the frontiers of a system within
which the alternatives must move and devote their resources.
t can be inferred that the basic theories and philosophies" governing the age2old
corps and projects had a stormy attack by the systems approach to management. 9wing
to the fact that project management is a subset of total management cult" it would be
comforting oneself to describe the principles of general systems theory. The general
systems approach can be s$uared with a management approach which attempts to
integrate and unify scientific information across many fields of knowledge. )ystems
theory attempts to strike at problems with a holistic view rather than through and analysis
of the individual components.
STEPS IN PROJECT MANAGEMENT
Project :anagement basically consist of the following steps.
#rouping work into packages which ac$uires the properties of a project. This
means that the works so grounded are related on each other" contribute to the same goals
and can be bound by definite time" cost and performance targets.
(ntrusting the whole project to a single responsibility centre known as the project
manager" for coordinating directing and controlling the project.
)upporting and servicing the project internally within the organi!ation by
matrixing or through total projectisation" and
<uilding up commitment through negotiations" coordinating and direceing
towards goals through schedules" budgets and contracts.
(nsuring adherence through negotiations" coordinating and directing towards
goals through schedules" budgets and contracts.
;efining what is to be done" maintaining its integrity and ensuring that it is done
and performed as desired" within time and cost budgets fixed for it through a modular
work approach" using organi!ational and extra2organi!ational resources is what is project
management.
PROJECT MANAGEMENT ENVIRONMENT
Project management performance will largely depend on the real2world
environment. The project management environment in ndia" is very different from any
other country. There are many problems which are peculiar to our country and these are
experienced by all those who are concerned in the execution of both small and big
projects. 9ne has to aware of these problems in order to be able to cope with the same for
successful implementation of a project.
The most important problem is lack of mutual trust and respect amongst the
participating agencies8 owner" financial institutions" consultants" vendors and contractors.
The owner believes that the agenciesEcontractors would take his for a ride and" therefore"
he should" as far as possible" do things himself. 4hen consultants are not appointed"
projects are likely to have congenial weakness such as wrong selection of technology"
wrong site" high risk element" etc. )ometimes the owner may appoint a consultant for a
nominal fee and ask him to prepare a report which he can sell to the bank. These reports
often do not reflect reality as they are made without any in2depths study" and if cleared"
would give birth to defective projects. This" doubt" reflects on a consultant.s lack of
professional ethics and can be avoided if the financial institutions use a proper
accreditation" system for consultants.
1owever" accreditation of consultants may not set everything right. * site may
often be selected purely on personal rather than on techno2economic considerations. The
same may happen with the selection of technology or even with the selection of the
consultant.
t is often suggested that besides technical and financial appraisal of a project the
financial institutions should appraise the entrepreneur himself. t is also suggested that
the financial institutions should introduce an on2going audit system to prevent diversion
of funds and other forms of financial irregularities. n other words" the financial
institutions may not trust the ownerEpromoter since an owner may disown a project and
the financial institutions have more stake in the project than the owner himself.
)ometimes a promoter may intentionally underestimate the project cost with the
intention of reducing his contribution. This would inevitably lead to cost overrun which
normally the financial institutions are expected to finance. 9f course" the financial
institutions can insist on proportional overrun finance by the owner" but since the
promoter.s stake is low" the institutions take their own time to decide to finance the
overrun" meanwhile the project cost undergoes further overrun. * project" thus faces a
fund crisis leading to extension of project completion time. 4ith the extension of the
project schedule further fund problems occur. 0inancing cost and inflation overtake the
revised cost estimate. )ince contingency provisions are too inade$uate to meet the
inflationary conditions of the economy" institutions have to provide further funds. <ut
this again is not easily sanctioned.
:ost vendors and contractors" do not trust the owner regarding payment. *t the
very first sign of delay in payment" they start slackening. They cannot also be expected to
be too enthusiastic about a project where fund problems are foreseen. * vendor" in such
circumstance" may not start the work at all. This not only delays the project but sours the
relationship between the owner and the vendor.
9ver the years" a number of projects have been affected by enormous increase in
prices of cement" steel and transport and energy costs. These are non2controllable costs as
far as the owner is concerned and" therefore" the owner looks towards the financial
institutions for relief. <ut the overruns even in such cases do not get automatically
sanctioned as the financial institutions do not trust the promoter and would first like to be
satisfied about the reasons for overrun.
0inancial institutions often hesitate to disburse their term loans unless the
promoters bring their entire contribution. )ometimes they withdraw their commitments
due to temporary resource constraint" or when the find a project facing serious technical
problems. Thus" due to financial insecurity some projects cannot progress as desired and
end up with huge time and cost overruns.
The problems discussed above can broadly be grouped into four classes of
environmental problems8 social" economic" technical and managerial. *s discussed
before" if these problems are not tackled" time and cost overruns cannot be stopped. Fet
management of environment is beyond the scope of project management. There is no
point" therefore" in discussing these problems in any further detail as they are beyond the
scope of this book.
4hile one cannot change the environment for the duration of a project" one can
definitely project oneself from its adverse influences adverse influences. This can be
done by creating a strong shield which will not only resist the adverse effect of the
environment but also influence the environment marginally" at least" along the boundary.
This is referred to as boundary management.
* project can shield itself effectively against the environment only if it engages good
agencies" used good system and has ade$uate funds to meet the re$uirements of the
project. #ood system and good agencies will re$uire good funds. 1owever" the funds
must be used properly otherwise a project cannot be completed at least cost which is the
ultimate criteria for measuring the efficiency of project management. =nfortunately" at
the moment" we are unable to provide such a shield to all our projects that must be the
only reason for our poor performance in the execution of the project.
Projects in ndia have to be executed in a highly unfavorable environment but
project management must cope with the situation. t has been suggested that project must
be insulated adverse environmental influences by mobili!ing good agencies" good system
and all ade$uate funds.
Be"e,its o, project $a"a#e$e"t
Project management helps to avail the following benefits8
dentification of functional responsibilities to ensure that all activities are accounted for
regardless of personnel turnover.
:inimi!ing the need for continuous reporting.
dentification of time limits for scheduling.
dentification of a methodology for trade2off analysis.
:easurement of accomplishment against plans.
(arly identification of problems so that corrective action may follow.
mproved estimating capability for future planning.
-nowing when objectives cannot be met or will be exceeded.
O.stac)es i" project $a"a#e$e"t
To enjoy the various benefits of project management given above" the following
obstacles be overcome carefully.
Project complexities
(xecution of customer.s special re$uirements
9rganisation restructuring is a typical task
Project risks
7hanges in technology
0orward planning and pricing.
Project :anagement D * Profession
Project management has been evolved as a distinct ever since the )econd 4orld
4ar. t has got elevation the recent times.
'ovelty is the hallmark of every project" hence it should exhibit fascination and
dynamism. This re$uires professional approach in conceiving" implementing and
controlling projects. Though the functional management and project management are
related" the degree of professional approach is highly essential for the efficient
management of project. The project management is mainly driven by intellectual
operation and skilled and mechanical operations. Project management is covered by the
matrix form of organi!ation structure where a roles are defined according to a
combination rather than functional speciali!ation.
9nly managers with sufficient spirit and dynamism can withstand the over
whelmin di!!iness in these incessant operations.
1ence" the project management re$uires sound expertise and exposure" which
may not be possessed by the project promoter. )o they have to resort the assistance from
projects consultants and project managers. * brief description about the role of project
manager and need functions of project consultants are given below.
Project Ma"a#er a"* his ro)e
This is to signify a person who has the overall control of the project and shoulders
responsibilities for its execution and performance. Therefore" he is thoroughly involved
in planning the work and monitoring" directing and leading the participants and seeks to
reach the project goal in time2cost2$uality conundrum. The project manager is either a
specialist or having predominantly technical background with sufficient experience"
exposure" expertise on multifaceted" multidimensional and multi disciplinary project. t is
well evident from the monumental constructions and project that have been around us
since heydays" that the role of a project manager is $uite distinct and demands an all
round performance.
* project manager is always found shard in the enternal circle of doing" learnig
and changing. 9nly managers with sufficient spirit and dynamism can with stand the
overwhelming di!!iness in these incessant operations. *n ideal candidate for project
managership should have some prominent personal characteristics as out lined by +
*rchibald.
0lexible and adaptable
Preference for significant initiative and leadership
*ggressiveness" confidence" persuasiveness" verbal fluency/
*mbition" activity" forcefulness/
(ffectiveness as communicator and integrator/
<road scope of personal interests/
Poised with enthusiasm" in agitation" spontaneity/
*ble or willing to devote most of his time to planning and controlling"
*ble to identify problems/
4illing to make decisions that are acceptable/
*ble to maintain a proper balance in the use of time"
This ideal project manager would probably have doctorates in engineering
business and psychology" sustained with a handful years of experience on similar natured
project officer occupying different positions" and should have physical fitness to
undertake such :achiavellian tasks with feeling of positive stress. #ood project
managers in industry today would probably be lucky to have GHI to JHI these traits.
good project managers are willing to identify their shortcoming and know heavy traffic"
they have to balance between the wheels that are mutually exclusive and yet engineering
to run coherently" they ensure that goal is reached by properly accelerating the vehicle the
vehicle to manager the traffic avoiding.
Project Co"s%)ta"t
0or any developing country" project management hols the key for development.
4ithout efficient project management neither cost control nor time control is possible.
The basis ingredient of successful project management is a happy integration of three
factor" appropriate estimate" competent contractor and effective project management. The
other important ingredient of successful project management is an effective management
team.
7onsultant provide guidance as well as direction to the projects. 0rom the
formulation stage to the completion and post project evaluation stage" consultants
services are essential ant are also available. nfect" the consultant is the part of the project
management team" though as a paid member on contractual terms and conditions.
4hen a project is taken up for execution" the first task would be to assess the
re$uirements of the service of an outside consultant or the in2house expertise available
would be sufficient for the project.
Nee* o, co"s%)ta"ts
'eed of consultant arises8
i@ 4hen a project of new technology is undertaken.
ii@ 4hen the in2house consultant is incapable of meeting the re$uirements
of the project.
iii@ 4hen there is no in2house facility available in the organi!ation.
iv@ 4hen the project is executed on the basis of imported technology and
know how.
v@ To avail the advantages of expertise available with the outside
consultants.
7onsultants may be of8
a@ n2house consultants
b@ 9utside consultants
ndigenous
0oreign consultants.
*s regards 3in2house consultant." it may be stated that in many organi!ations a
separate department is maintained in the total orgainisation structure. This department
looks after the work of detailed engineering " drawings and preparation of technical
specifications" etc. *n office order shall be issued assigning the jobs along with scope of
work" time schedule and job responsibilities to carried out.
4hen the jobs cannot be done my the in2house consultants" the appointment of
outside consultants would become unavoidable. 4hile assigning jobs to the outside
consultants the following steps should carried out effectivel8
*pproval from the competent authority.
;ecide about ndigenous or foreign consultants.
Preparation of list of consultants.
)cope of services of consultants
Preparation of tender documents
nviting offers from leading consultants
(valuation of offers
*ward if contract to the consultant
4hile selecting outside consultants the various factors to be considered are 8 job
re$uirements" facilities available in their organi!ations" experience" performance" their
organi!ation structure" fees" the terms and conditions" pre and post commissioning
services etc.
Jo. o, co"s%)ta"ts
The functions of a project management consultant have been identified as 1@
*ssisting the agency in appropriate site investigation and sourcing of materials. 2@
*ssisting the agency in selecting the appropriate contractor/ 3@ 7hecking the $uality of
work" supervision control" testing monitoring and progress reporting" checking
measurements and of bills.
The project management consultant has to give periodic reports to the client on
the progress" trend and completion date" likely slippage in time" ade$uacy of resources
with the contractor and $uality awareness of the contractor" and recommend measures for
better control and management" including additional input to correct slippages in future.
f it is necessary" they can also recommend termination of a contractor" after examining
the legal implications. n ndia" engaging project management consultants for selection of
contractors and supervision of work is somewhat new. The project management
consultant concept makes available for project management the latest developments in
technical" engineering" management and information fields.
:ain jobs of the consultants are8
i@ Preparation of feasibility report
ii@ Techno2economic report
iii@ Preparation of detailed project report
iv@ ;etailed engineering and consultancy services
v@ Project monitoring and control
vi@ )upervision of erection and commissioning of project.
vii@ Provide pre and post commissioning services.
4ith the passage of time" there has been progress in ndianisation in the spheres f
technology" know how etc. :any firms in public sector as well s in private sector have
come up in have consultancy services. * few well known consultancy firms are8
T*T* 7onsultancy )ervices %td.
<irla Technical )ervices
;astur & 7o. %td.
(ngineer ndia %td.
:etallurgical & (ngineering 7onsultants ?ndia@ %td.
-irloskar 7onsultancy %td.
Power 7onsultancy )ervices ndia Pvt. %td.
)mall ndustries )ervices nstitute.
Technical 7onsultancy 9rganisation
)cience and Technology (ntrepreneurship Park etc.
CONC(USION
Thus" this chapter has explained the various aspects of projects and project
management. This conceptual knowledge will certainly helps you to know about the
features of project and project managements" which is an emerging uni$ue discipline.
*nd this chapter has also explained the various stages of project life cycle" which helps
the project manager to ascertain the strength and weakness of any project at any point of
time.
SE(F ASSESSMENT @UESTIONS
1. (xplain the significance of project approach for the economic development of
the country.
2. #ive an outline about the project opportunities available in different sectors of
the economy.
3. ;escribe the various resource potentials of out country.
>. (xplain the latest trend in the infra2structural project in ndia.
A. #ive a brief note about the various on2going social2welfare sector projects.
G. (xplain the role of project manager in successfully administering a project
C. ;escribe the need and functions of project consultants.
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