INTRODUCTION TO

PROJECT MANAGMENT

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What is a project?
A project can be defined as ..

..and endeavour in which human (or machine),

material and financial resources are organised in a novel
way, to undertake a unique scope of work, or given
specification, within constraints of cost and time, so as to
deliver beneficial change by quantitative and qualitative
objectives

Unique process consisting of a set of coordinated and

controlled activities with start and finish dates, undertaken
to achieve an objective conforming to specific
requirements, including constraints of time, cost, quality
and resources

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What is a project?
According to Project Management Institute, U.S.A
A Project is a one-shot, time limited, goal directed, major
undertaking, requiring the commitment of varied skills and
resources.
It has also been described a s a combination of human
and non human resources pooled together in a temporary
organization to achieve a specific purpose. The purpose
and the set of activities which can achieve that purpose
distinguish one project form another.
For example:
cement project, manufacturing, Power project, refinery
projects, Health project, Educational projects, Social
project, construction projects etc.

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What is a project? Contd

According to J. Price Gettinger
A specific activity with a specific starting point and a
specific ending point intended to accomplish a specific
objective. It is something you draw a boundary around at
least a conceptual boundary and say this is the Project.
According to United Nations
Compilation of data which will enable an appraisal to be
made of the economic advantages and disadvantages
attendant upon the allocation of countrys resources to
the production of specific goods and services.

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The nature of projects

There are many types of project which we will

identify later in this session
Whatever the nature of the project there are three
core issues which need to be addressed:
Quality
Cost
Time
In addition, projects invariably take place in a
context which includes organizational politics,
individuals personal objectives and external,
commercial or stakeholder pressures.

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The project basics

Organisational
politics

Personal
Objective
s

Cost
Quality
Time

External and stakeholder

issues

Business
Pressures

Features / Characteristics of
Project

A project can be identified by its features. The special features

of a project that would differentiate from any other on going
activity are given below:
1.Objective: A project fixed set of objectives. Once the
objectives have been achieved, the project ceases to exist.
2.Life span: It has a specific life span. It means a project
cannot continue endlessly, it has come to an end.
3.Single Entity: A project is one entity and is normally
entrusted to one responsibility centre while the participants in
the projects are many.
4.Team work: A project calls for team work; the team again is
constituted of members belonging to different disciplines,
organizations and even different countries.

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Contd..
5.

6.

7.

8.

9.

Life Cycle: A project has a life cycle reflected by growth,

maturity and decline similar.
Uniqueness: No two projects are exactly same. The location,
the infrastructure, the agencies and the people make each
project unique.
Change: Change is an inherent feature in any project out its
life.
Successive Principle: Project is based on successive
principle and hence it is difficult to learn fully the end results
at any stage.
Made to Order: A project is always made to the order of its
customers. The customer stipulates various requirements and
inputs constraints with in which the target must be executed.

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Contd..
10)

11)

12)

Unity in Diversity: A project works for a specific set of

goals with the complex set of diversified activities. The
varieties are in the term of technology, machinery etc.
High level of sub-contracting: High level of subcontraction of work can be done in a project. The more
the complexity of the project the more will be the extent
of sub-contracting.
Risk and Uncertainty: Every project has risk and
uncertainty associated with it.

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Types of Project

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Types of Project Contd..

Figure (above) shows the various categories into which

industrial projects may be fitted.
The location, type, technology, size, 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. Classification of project helps in
graphically expressing and highlighting the essential features
of the project. Projects are often categorized in terms of their
speed of implementation as follows:
Normal Projects
Crash Projects
Disaster Projects

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Types of Project: Normal Projects

Features of this category of project are:
Adequate time is allowed for implementation.
All the phases in a project are allowed to take
their normal time.
Minimum requirement of capital.
No sacrifice in terms of quality.

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Types of Project: Crash Projects

Features of this category of project are:
Requires additional costs to gain time.
Maximum overlapping of phases is encouraged.

Types of Project: Disaster

Projects

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Features of this category of project are:

Anything needed to gain time is allowed in
these projects.
Around
the clock work is done at the
construction site.
Capital cost will go up very high.
Project time will get drastically reduced.
No competitive bidding is resorted too.

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Classification of Project
The project can be classified on several basis. Major
classification of the projects are given below:

On the basis of Expansion

1.

1.
2.

Project expanding the capacity

Project expanding the supply of knowledge.

On the basis of Magnitude of the resources to be

invested
2.

n
n
n
n

Giant projects affecting total economy

Big projects affecting at one sector of the economy
Medium size projects
Small size projects (depending on size, investment &
impact).

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Classification of Project contd..

On the basis of Sector

3.
1.
2.
3.
4.
5.

Industrial project
Agricultural project
Educational project
Health project
Social project.

On the basis of Objective

4.
1.
2.

Social objective project

Economic objective project.

On the basis of Productivity

5.
1.
2.

Directivity productive project

Interactively productive project.

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Classification of Project contd..

On the basis of nature of benefits

6.
1.
2.

Quantifiable Project
Non-quantifiable Project.

On the basis of government priorities

7.
1.
2.

Project without specific priorities

Project with specific priorities.

On the basis of dependency

8.
1.
2.

Independent project
Dependent project.

On the basis of ownership

9.
1.
2.
3.

Public sector project

Private sector project.
Joint sector project

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Classification of Project contd..

10.

On the basis of location

1.
2.

11.

On the basis of social time value of the project

1.
2.

12.

Project with determined location

Project with future impact.
Project with present impact
Project with future impact.

On the basis of risk involved in the project

1.
2.
3.

High risks project

Normal risks project
Low risks project.

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Classification of Project contd..

On the basis of economic life of the project

13.
1.
2.
3.

Long term project

Medium term project
Short tern project.

On the basis of technology involved in the project

14.
1.
2.
3.
4.

High sophisticated technology project

Advance technology project
Foreign technology project
Indigenous technology project.

On the basis of resources required by the projects

15.
1.
2.

Project with domestic resources

Project with foreign resources

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Classification of Project contd..

On the basis of employment opportunities available in
the project

16.

Capital intensive project

Labour intensive project.

1.
2.

On the basis of management of project

17.

High degree of decision making attitude

Normal degree of decision making attitude
Low degree of decision making attitude.

1.
2.
3.

18.

On the basis of sources of finance

16.
17.
18.
19.

Project with domestic financing

Project with foreign financing
Project with mixed financing
Project with financial institutions.

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Classification of Project contd..

19.

On the basis of legal entity

1.
2.

20.

On the basis of role played by the project

1.
2.

21.

Project with their own legal entity

Project without their own legal entity.
Pilot project
Demonstration project.

On the basis of speed required for execution of

the project
19.
20.
21.

Normal project
Crash project
Disaster project.

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Measures of Project Success

The resulting information system is
acceptable to the customers (e.g. users,
managers).
The system was delivered on time.
The system was delivered within budget.

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Measures of Project Failures

Failure to establish upper-management

commitment to the project
Lack of organizations commitment to the
methodology
Taking shortcuts through or around the
methodology
Poor Project management:

Feature creep
Scope creep

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Project Life Cycle

What is Project Life Cycle?
The attention that a project receives isnt
uniformly distributed throughout its life span
but varies from phase to phase.
Most projects pass through the following five
phases, which tend to overlap at times:

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Significance of Project Life Cycle

It defines:
The phases of the project (time)
The work performed in each phase (work)
The input and output of each phase (result)
The milestone of each phase (end sign)

Phase I: Conception/Initiation
Phase

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Conception is the phase during which the project

idea finds genesis and germinates, out of:

the need to solve a problem,

the observance of ones environment,
the drive to innovate something new.

This phase is essential and if flawed, it may lead to

defective and dysfunctional projects.

A well conceived project goes a long way towards

successful implementation and operation

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Phase II: Definition Phase

The definition phase of the project involves

developing the idea generated during Conception
phase.

It produces a document describing the project in

sufficient detail, covering all necessary aspects like
the manpower, materials, machinery, layout, utilities
and feasibility.

It clears most of the ambiguities and uncertainties

about the formation made in the previous phase.

Phase III: Planning and Organising

Phase

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This phase starts almost immediately after the

conception phase and overlaps with both definition
and implementation phases.

This phase involves the preparation for the project

to take off smoothly and effects many decisions
related to the project basics.

It involves both Core planning and facilitating

planning.

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Core Planning

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Facilitating Planning

Quality Planning

Organizational Planning

Staff Acquisition

Communications Planning

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Phase IV: Implementation Phase

This phase is a period of hectic activity. During

this period, the idea starts materializing physically
and tangibly and for the first time, the project can
be seen off the paper.
Usually, 80-85 percent of the project work is done
in this phase using all techniques of project
management.
The various sub phases of this phase, which
often overlap, are as following.

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Implementation Phase contd

Project Plan Execution

Complete Work Packages
Information Distribution
Scope Verification
Quality Assurance Team Development
Progress Meetings
Information Distribution
Source Selection
Contract Administration

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Controlling

Controls are performed to regularly measure

project performance, to adjust project plans and
take preventive actions in anticipation of possible
problems

Phase V: Clean-up/Termination
Phase

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This is the transition phase in which the project is

handed over to the operators and/or agencies
responsible for maintaining it.

This phase is a clean up task in which all project

accounts are closed, Outstanding payments are
settled and dues are collected.

All previous phases involve compartmentalized

disposition of the project personnel and that task is
winded - down in this phase.

Clean-up/Termination Phase
contd.

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Administrative Closure generating necessary

information to formally recognize phase or project
completion.
Contract Close-out completion and delivery of
project deliverables and resolving open issues. It
includes:

Purchase Audits
Product Verification
Formal Acceptance
Lessons Learnt
Update of Records
Archives of Records
Releasing the Project Team

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Synopsis of Project Life Cycle

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Types of Project Organizations

Growth of Project Oriented Organizations
There are many reasons for the rapid growth,
but most of them can be grouped in four
general areas:

Speed and market responsiveness have become

absolute requirements for successful competition

The development of new products, processes, or

services regularly requires input from diverse
areas of specialized knowledge

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Contd

Rapid
expansion
of
technological
possibilities in almost every area of
enterprise tends to destabilize the structure
of organizations
A majority of senior managers rarely feel
much confidence in their understanding
and control of the activities in their areas

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Types of Project Organizations

There are two fundamentally different ways of

organizing projects within the parent organization

The project
Organization

as part

of the Functional

The project as a free-standing part of the parent

organization

A third type, called a Matrix Organization is a

hybrid of the two main types

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Functional-Type Organization

Used in businesses that sell and produce

standard products.
Groups consist of individuals performing the
same function.
Periodically undertake in-house projects.
Team members can be assigned to the project.
Team members continue regular functional
jobs.
Project manager does not have complete
authority over team.

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Functional-Type Organization: Advantages

Maximum flexibility in the use of staff

Individual experts can be utilized by many
different projects
Specialists in the division can be grouped to
share knowledge and experience
The functional division also serves as a base of
technological continuity when individuals
choose to leave the project
The functional division contains the normal path
of advancement for individuals whose expertise
is in the functional area
Reduces duplication and overlap of activities

Functional-Type Organization:
Disadvantages

The client is not the focus of activity and concern

The functional division tends to be oriented
toward the activities particular to its function
Occasionally, no individual is given full
responsibility for the project
There are often several layers of management
between the project and the client
There is a tendency to sub-optimize the project
Teamwork is not emphasized.
Decisions may be parochial.
Structure can slow communication, problem
solving and decision making.

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Project Organization

Used in companies in the project

business, not selling products.
Work on multiple projects at a time.
Project team is dedicated to one project.
Project manager has complete authority
over team.
Each project team tends to be isolated.

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Project Organization: Advantages

The project manager has full line authority

over the project
All members of the project work force are
directly responsible to the project manager
When the project is removed from the
functional
division,
the
lines
of
communication are shortened
When there are several successive projects of a
similar kind, the pure project organization can
maintain a permanent cadre of experts who
develop skills in specific technologies

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Contd.

A project team that has a strong and separate

identity and develops a high level of
commitment from its members
Because the authority is centralized, the ability
to make a swift decision is enhanced
Unity of command exists
Pure project organizations are structurally
simple and flexible, which makes them
relatively easy to understand and implement
The organizational structure tends to support a
universal approach to the project
Organization is highly responsive to customer

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Project Organization: Disadvantages

Can be cost inefficient.

Tendency to stretch out work during slow periods.
Potential for duplication on concurrent projects.
Low level of knowledge transfer
Each project tends to be fully staffed which can
lead to a duplication of effort in every area from
clerical staff to technological support
There is a need to ensure access to technological
knowledge and skills that results in an attempt by
project managers to stockpile equipment and
technical assistance

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Contd.

The functional division is a repository of technical

knowledge, but it is not readily accessible to team
members of the pure project team
Pure project groups seem to foster inconsistency in the
way in which policies and procedures are carried out
In a pure project organization, the project takes on a life
of its own
There tends to be concern among team members about
life after the project ends

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Matrix Organization

The matrix organization is a combination

of functional and pure project

A matrix organization can take on a wide

variety of specific forms

Project or strong matrix organization most

resembles the pure project organization

The coordination or functional or weak

matrix most resembles the functional form

The balanced matrix lies in between the others

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Matrix Organization

Rather than being a stand alone

organization, like the pure project, the
matrix project is not separated from the
parent organization:

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Matrix Organization: Advantages

The project is the point of emphasis

Because the project is overlaid on the functional divisions,
the project has reasonable access to the reservoir of
technology in all areas
There is less anxiety about what happens when the project is
completed
Response to clients needs is as rapid as in the pure project
organization
Matrix management gives the project access to
representatives from the administrative units of the parent
firm
The matrix organization allows a better company-wide
balance of resources to achieve goals
There is a great deal of flexibility in precisely how the
project is organized within the matrix

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Matrix Organization: Disadvantages

The balance of power between the project and

functional areas is very delicate
The movement of resources from project to project
may foster political infighting
Problems associated with shutting down projects can
be as severe as in a pure project organization
The division of authority and responsibility in a matrix
organization is complex, and uncomfortable for the
project manager.
Matrix management violates the management
principle of unity of command. Project workers have
at least two bosses, their functional heads and the
project manager.

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What is a Project Management?

The art of organising, leading, reporting and
completing a project through people.
A project is a planned undertaking
A project manager is a person who causes things to
happen
Therefore, project management is causing a planned
undertaking to happen.

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What is Project
Management?
Managing
a project is called Project Management.

According to PMI
PM is the application of knowledge, skills, tools and
techniques to project activities in order to meet or
exceed stakeholder needs and expectations.
PM includes
defining project goals,
specifying how the goals will be accomplished,
what resources are needed, and relating budgets and
time for completion.

Project Management
Objectives

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Coordinate the various interrelated processes of the project.

Ensure project includes all the work required, and only the
work required, to complete the project successfully.
Ensure that the project is completed on time and within
budget.
Ensure that the project will satisfy the needs for which it was
undertaken.
Ensure the most effective use of the people involved with the
project.
Promote effective communication between the projects team
members and key stakeholders.
Ensure that project risks are identified, analyzed, and
responded.

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Why Project Management?

The decision on whether or not to set up a separate

project management division is subjective as it
depends upon various factors some of them are:
Interactions or interdependencies between various
departments.
Sharing of common resources
The importance of the project to the organization
Size of the project
Degree of unfamiliarity with the work involved
and its complexity
Changes in the market and
The reputation of the organization

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Functions of Project
Management

Scoping: setting the boundaries of the project

Planning: identifying the tasks required to
complete the project
Estimating: identifying resources required to
complete the project
Scheduling: developing a plan to complete the
project
Organizing: making sure members understand their
roles and responsibilities
Directing: coordinating the project
Controlling: monitoring progress
Closing: assessing success and failure

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A sample PERT project management

plan
4
1
D
month
1

3
months
A

2
months
E

B
4
months

3
F
months
5

C
3

3 months

There are five milestones 1 to 5 and six activities A to F which are

estimated to take 1,2,3 or 4 months as shown. The minimum time
for project completion is the CRITICAL PATH of 7 months shown
as a thick lines.

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THANK YOU