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 timeframes.

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

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