Beruflich Dokumente
Kultur Dokumente
MANAGEMENT
FACULTY
Prof. M.H.Varma
B.E.(Mech.), DMS,
PGDMM,
MBA (SCM)
Scope of Discussions / Objectives
• Introduction to & Overview of Project Management
• Role of Project Management in Strategy Formulation
• Attribute Requirements of a Project Manager
• Managing Conflict & Art of Negotiations
• Project Organizational Structure & it’s Impact
• Project Activity / Risk Planning & Project Scheduling
• Project Cost Management & Resource Allocation
• Project Procurement & Quality Management
• Project Control and Project Audit
• Project Closure
• Earned Value Analysis – Performance Measurement
• Financial Analysis of Project Management
• Role of Information Technology in Project Management
• Project Management – Case Study and Analysis
PROJECT
MANAGEMENT-
Introduction & Overview
5
Desire
What do Customers look for in
Any Product or Service?
• Importance
• Scope
• Life cycle with a finite due date
• Interdependencies
• Uniqueness
• Resources
• Conflict
Project Management - Basic Questions
Before developing a Project Management Program, consider:
• What is the objective of the Program?
• Who are the Beneficiary?
• Is there a Budget?
Why Project Management?
1-16
Negative Side to Project Management
• Concept Phase
• Organization Phase
• Execution Phase
• Termination Phase
Project Management
Project Management
Project Initiation
Project Planning
Project Execution
Project closure
PAGE 19
Delhi Metro :
— A trend setter project
Project Planning…
Delhi Metro - Ist Phase
1
Line 1 - Shahdara to Rithala
2 - 22.06 Kms
Payback period
Net present value
Internal rate of return
Options models
Investment
Payback Period
Annual Cash Savings
Ft
NPV I o
(1 r pt )t
where Higher NPV
values are better!
Ft = net cash flow for period t
R = required rate of return
I = initial cash investment
Pt = inflation rate during period t
Copyright © 2013 Pearson Education
Internal Rate of Return
A project must meet a minimum rate of return
before it is worthy of consideration.
t
ACFt
IO Higher IRR values
n 1 (1 IRR )t are better!
where
ACFt = annual after tax cash flow for time period t
IO = initial cash outlay
n = project's expected life
IRR = the project's internal rate of return
Saunders, Lewis and Thornhill, Research Methods for Business Students, 5th Edition, © Mark Saunders, Philip Lewis and Adrian Thornhill 2009
Slide 14.36
Saunders, Lewis and Thornhill, Research Methods for Business Students, 5th Edition, © Mark Saunders, Philip Lewis and Adrian Thornhill 2009
Slide 14.37
• Abstract
• Introduction
• Literature review
• Method
• Results
• Discussion
• Conclusions
• References
• Appendices
Saunders, Lewis and Thornhill, Research Methods for Business Students, 5th Edition, © Mark Saunders, Philip Lewis and Adrian Thornhill 2009
Slide 14.38
Report structure
The abstract
Saunders, Lewis and Thornhill, Research Methods for Business Students, 5th Edition, © Mark Saunders, Philip Lewis and Adrian Thornhill 2009
Slide 14.40
Report structure(contd.)
Introduction - includes
Saunders, Lewis and Thornhill, Research Methods for Business Students, 5th Edition, © Mark Saunders, Philip Lewis and Adrian Thornhill 2009
Slide 14.41
Report structure(contd.)
Checklist Box
Saunders, Lewis and Thornhill, Research Methods for Business Students, 5th Edition, © Mark Saunders, Philip Lewis and Adrian Thornhill 2009
Slide 14.42
Report structure(contd.)
Results chapter - purpose
Saunders, Lewis and Thornhill, Research Methods for Business Students, 5th Edition, © Mark Saunders, Philip Lewis and Adrian Thornhill 2009
Slide 14.43
Report structure(contd.)
Saunders, Lewis and Thornhill, Research Methods for Business Students, 5th Edition, © Mark Saunders, Philip Lewis and Adrian Thornhill 2009
Slide 14.44
Report structure(contd.)
References
Appendices
Saunders, Lewis and Thornhill, Research Methods for Business Students, 5th Edition, © Mark Saunders, Philip Lewis and Adrian Thornhill 2009
Slide 14.46
Writing style
Key points:
• Preserving anonymity
Saunders, Lewis and Thornhill, Research Methods for Business Students, 5th Edition, © Mark Saunders, Philip Lewis and Adrian Thornhill 2009
Slide 14.47
Checklist Box
Saunders, Lewis and Thornhill, Research Methods for Business Students, 5th Edition, © Mark Saunders, Philip Lewis and Adrian Thornhill 2009
Slide 14.48
Oral presentation
Saunders, Lewis and Thornhill, Research Methods for Business Students, 5th Edition, © Mark Saunders, Philip Lewis and Adrian Thornhill 2009
Role of Project Mgt
in
Strategy Formulation
Three Project Objectives: The “Triple
Constraint”
• Time
• Cost
• Scope
1-50
Defining the Project Objectives
• The Triangle shows the three
principal aspects of a project: Time, Cost
and Scope.
• The Project manager’s job is to keep these three aspects in
balance.
1-55
The Hows That
Define a Firm's Strategy
How to please customers
1-56
Strategic Management –
Defined
People
Organizational Feedback
Plan Updates and Ideas
Strategy Ideas
Change Projects
Project Portfolio Management
Problems
• More projects
• Inconsistent determination of benefits
• Projects that don’t contribute to the
strategy
• Competing projects
• Costs exceed benefits
• No risk analysis of projects
• Lack of tracking against the plan
• No client for project
Project Portfolio Process Steps
1. Pure or Projectized
2. Functional
3. Matrix
4. Composite
5-70
Structuring Projects – Classification of
Projects
PURE PROJECT – A self contained team works full – time
on the project
Advantages
• The Project Manager has full Authority over the project
• Team members report to one Boss / Team motivation,
commitment are high / Swift Decisions
• Strong and separate Identity
Disadvantages
• Duplication of resources / Life after project is over??
• Organisation goals & Policies are ignored.
11-71 McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved.
FUNCTIONAL PROJECT – Housing the project within a
functional Division
11-72 McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved.
Advantages
• A team member can work on several projects
• The functional area is a home after the project is completed
• Experts can be utilized by many different projects
• Maximum flexibility in the use of staff
Disadvantages
• Motivation of the team members is often weak
• Needs of the client are secondary resulting in slow response.
• No individual is given full responsibility
11-73 McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved.
MATRIX PROJECT - Attempts to blend properties of
pure and functional project structures / projects manager
decides what tasks and when they will be performed, but the
functional managers control which people and technologies
are used.
11-74 McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved.
Advantages
• Communication between functional divisions is enhanced.
• Duplication of resources minimised / Better balance of resources
• Response to Client needs is rapid
Disadvantages
• There are two bosses / who would you listen to – functional
manager or project manager ?
• Power balance is delicate
• PM needs to have strong negotiating skills to secure priority.
• Projects compete for Resources
11-75 McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved.
Virtual Projects
• Project team crosses time, space, organizational, or
cultural boundaries
5-76
11-76 McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved.
Selecting a Project Form
5-77
11-77 McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved.
Attribute Requirements
of
A Project Manager
Why Projects Fail
5. Detailed requirements
6. Realistic schedule
8. Availability of Funding
9. Skilled and appropriate team
members with defined roles and
responsibilities
10. Empowered Project Manager
85
- E.Sreedharan
(former Managing Director / KRC)
Project Management Philosophy
• Plan
• Organize
• Control
Project Manager
Benevolent Team
Leader Leader
(Y) (Z)
concern for
people
Laissez-faire Autocratic
Leader Leader
(L) (X)
Learning Curve
Average Labour hrs required
30
25
20
15
10
5
20 40 60 80 100 120 140 160
Units Produced
Definition: The more often a worker does a particular type of job,
the lesser time it takes to do the same job
(Explanatory note: The per unit cost of production of a new item decreases
as additional units of that product are manufactured)
The Experience Curve
• Formulation Conceptualization
• Buildup Planning
• Main program Execution
• Phase-out Termination
Categories of Conflict
• Interpersonal conflict
Project Formation
• Conflict centers around the confusion of starting
a new project
• Many of the policies and procedures have not yet
been formed
• The objectives of the project are not yet finalized
• Conflict cannot be avoided at this phase
• In fact, much of this conflict is good conflict
Handling Project Formation
Conflict
• Negotiations – Vs – Bargaining
process
Four Corner Stones of Negotiations
Co-operation Conflict
Giving Taking
Objectives of Negotiations
• Sense of Humor
Preparatory
During negotiations
• Keep the initiative
• Use questions effectively
• “Yes- Response” theory (Conceding ground)
• “Door-Knob” method – Purchaser makes it seem as if it is a final
offer – pretending to leave if the offer is refused
• Use diversions
• Do not give free- always trade in
• Learn to anticipate
• Seek while giving information
• Keep the whole package in mind (yours/ theirs)
• Summarize – Minute/ record proceedings always
Negotiating with Foreigners / Across Cultures
• Outcomes include:
• Technical scope
• Areas of responsibility
• Delivery dates or budgets
• Risk management group
Outside Clients
• What is to be done
• Who is going to do it
Starting the Project Plan: The
WBS (Continued)
Level
Program
1 Project 1 Project 2
Drawings Estimate
• Facility Bill
• Services of
WBS Element / Material
s
Work Package
Schedule
Cost
Contracts
Reports
Steps to Create a WBS
Risk Management
Risk Management
Sources of Risk
Technical
Financial
Socio-Economic
Contractual
134
Sources of Help to
Identify Risk
• Site investigations
• Contract documents
• Schedule
• Team brainstorming
• Body of experience
135
Risk Management
Process
Identify Risk
Analyze Risk
Respond to Risk
Document Risk
Elements of Risk Management
Threats Opportunities
• Avoid • Exploit
• Transfer • Share
• Mitigate • Enhance
• Accept • Accept
145
Risk Containment