PROJECT MANAGEMENT

UNIT 1) INTRODUCTION TO PROJECTS AND

PROJECT MANAGEMENT: Concept of a project;
Need for project management; project life-cycle;
differentiation of project management from
general management; types of projects
UNIT 2) PROJECT CHOICE: Project selection;
feasibility evaluation; estimating time/ cost/
resources; profitability evaluation

Sunday, M 1
 PROJECT MANAGEMENT

UNIT 3) PROJECT ORGANISATION: Organising

the project team; organising systems and
procedures for implementation; use of computers;
managing relationships
UNIT 4) PROJECT PLANNING and
SCHEDULING: Project planning, budgeting and
scheduling;

Sunday, M 2
 PROJECT MANAGEMENT

UNIT 5) PROJECT COORDINATION AND

CONTROL: Project coordinating and directing;
progress monitoring and control
UNIT 6) PROJECT PERFORMANCE: Project
evaluation and auditing; project management
performance; project termination

Sunday, M 3
 PROJECT MANAGEMENT

UNIT 1) INTRODUCTION TO PROJECTS AND

PROJECT MANAGEMENT:
1.1) concept of a project;

Sunday, M 4
Brainstorm - What is a project ?

PM PM PM
Project Management is:
PM
PM
PM PM PM
PM PM
PM
PM
PM PM
PM
PM PM
 Brainstorm - What is a project ?

PM PM
Project is: A temporary endeavor PM
PM
undertaken to create a unique product,
service or result PM
PM
Temporary – Definitive beginning andPM
end
PM – New undertaking, unfamiliar
Unique
ground PM
PM
PM
Generate Examples and Non-Examples
of Projects PM
PM
 What is a project ?

– A series of activities aimed at bringing

about clearly specified objectives within a
defined time period (start and end
deadline), specific scope, and with a
defined budget

– Requires integration of knowledge and

experience from various sources and
organizations
 What is a Project?
An Integrated Definition:
• “Unique process consisting of a set of
coordinated and controlled activities with
start and finish dates, undertaken to
achieve an unique objective conforming to
specific requirements, including
constraints of time, cost, quality and
resources”

Now apply this integrated definition to your

examples and non-examples of a project
 What is a Project?
A project
– has a unique purpose
– is temporary
– Well defined beginning and end
– Is an end in itself resulting in something new in
terms of products, service or any other outcomes
– is developed using progressive elaboration
– requires resources, often from various areas,
and often limited
– should have a primary customer or sponsor
• The project sponsor usually provides the
direction and funding for the project
9
 What is a Project?
• Complex
• Composed of interrelated activities
• May have staff from cross-functional groups
working as a team
• Operate under specific constraints of
resources, time, cost and scope.
• involves uncertainty and risk
• Characterised by change

10
 What is a Project?

what is common across all projects?

What could be ‘uncommon’?

When is a Project Abandoned?

11
Project Triple Constraint

Sc
Tim

op
Quality

e
12

Cost
Triple Constraints …1
The time constraint is the amount of time available to
complete a project. All projects have deadlines or
end dates. This may be the most difficult constraint
to manage.
The cost constraint is the budgeted amount available
for the project. Remember that cost also translates
to resources – people, equipment, and materials.
The scope constraint is what must be done to
produce the project's end result – the system you
need – meeting your requirements!

13
Triple Constraints ..2

These three constraints are often competing

constraints:
Increased scope typically means increased time and
increased cost,
A tight time constraint could mean increased costs
and reduced scope,
A tight budget could mean increased time and
reduced scope, or managing the project over a
longer period of time to take advantage of various
funding opportunities without a loss of continuity!

14
 PROJECT MANAGEMENT

UNIT 1) INTRODUCTION TO PROJECTS AND

PROJECT MANAGEMENT:
1.4) differentiation of project management from
general management;

Sunday, M 15
 Difference between Project and General Mgt
Program
• Strategic Direction setting for achieving something unique e.g.
Setting up a manufacturing plant

Project
• Strategic level action to bring the program alive. A program
could have a number of projects e.g. Plant construction,
Product development

Operations
• Continuous, Repetitive activities to implement and achieve the
objectives e.g. Production, Marketing, Purchasing

Improvement
• Operationally unique activities to bring about efficiency e.g.
Kaizen. Improvement projects then get frozen as Operations

Sunday, M 16
Difference between Project and General Mgt
 Ongoing
Operation  Repetitive
 Sustain the business
Work  Management by Project

 Performed by people
Project  Constrained by limited
resources
 Planned, executed and
 Temporary controlled
Begin ,End
 Unique Market
 Uncertainty Window
Team
 Progressive Elaboration
Disbanded
 Project Management 17
 PROJECT MANAGEMENT

UNIT 1) INTRODUCTION TO PROJECTS AND

PROJECT MANAGEMENT:
1.5) types of projects

Sunday, M 18
Projects

Variety of Projects Reach

– Projects at Personal Level

– Projects in Local Neighborhood
– Organizational projects
– National projects
– Global projects

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Types of Projects

New Project (Green Field Project)

Expansion Project
Modernization Project
Replacement Project
Improvement Projects
Reengineering & restructuring Projects

20
Areas of Project Management

 Prototype developments
 Plant & Machinery installation
 Event management
 Satellite launches
 Missions to Planets
 Holding of General Election
 Film making
 Carrying out Research
 Carrying out Feasibility Studies
 Laying pipelines, cables

21
Forward & Backward Integration Projects

Cotton yarn Textile Mill

Cotton Farming Spinning Mill

Backward Existing Forward

Integration Operation Integration

22
 PROJECT MANAGEMENT

UNIT 1) INTRODUCTION TO PROJECTS AND

PROJECT MANAGEMENT:
1.3) project life-cycle;

Sunday, M 23
Project Life Cycle
Project Life Cycle

Commissioning
Resources

/ End of project
Planning Implementation phase
Conception Phase Phase
Phase

Time
25
Project Life Cycle – Elaborated to 6 Phases

Execution
Initiation Definition Planning Implementation Deployment Closing
Phase Phase Phase Phase Phase Phase
 Project Life Cycle

• Define the need

• Return on Investment Analysis
• Make or Buy Decision
• Budget Development

Sunday, M 31
 32

Initiating is where you formulate your “contract” with

the client/customer /users/management
Lack of agreement about what’s important is the biggest
cause for disagreement and scope creep
Lack of understanding of the impact of changes is the
biggest reason for escalating costs (in cost, time and
quality terms)
 Project Life Cycle
Definition:

• Develop the Project Charter

• Determine goals, scope and project constraints
• Identify Project Manager, members and their roles
• Define communication channels, methods, frequency, content
• Risk management planning
• Conduct a Feasibility Study
• Sign off on the Project Charter

Sunday, M 33
Phase 2 – Definition (Conception)

Preliminary Evaluation of an idea

– A new need
– Or to remedy potential deficiencies in existing
systems
Evaluate the initial Technical, Economic and
Environmental feasibility for:
– What will it do ?
– Alternate ways to meet the need,
– System cost ?
– Returns from it ?
– When will it be completed ?
– How will it be integrated with existing systems ?
– Any environmental issues affecting the project ?
– Risk Analysis

34
 Project Life Cycle

• Resource Planning
• Work Breakdown Structure
• Project Schedule Development
• Quality Assurance Plan
• Organize and staffing
• Sign off on the Project Plan
 Planning/ Design Phase
Preparation of detailed specifications and performance
requirements
Determination of realistic costs
Identification of detailed activities and tasks and their
precedence
Determination of Time Schedules for Implementation &
Commissioning phases
Firm identification of Human and other resources
Detailed study of risks and plans to mitigate those
Definition of interfaces within and external to the organization
Documentation of Policies, procedures, job descriptions,
budget, Time schedules etc.

36
The point of Planning is NOT to blindly follow the
37
plan, but to gain a better understanding of
what needs to be done.
“In preparing for battle, I have always found
that plans are useless, but planning is
indispensable” – Eisenhower
The other purpose of a plan is for
communication – your stakeholders care about
whether you are on-track/late/etc
 Project Life Cycle

(i) Implementation
• Training Plan
• System Build
• Quality Assurance
Implementation Phase

Mobilization of resources;
Actual construction, implementation;
Regular Monitoring of Progress versus Plans
Review meetings for Project progress and/or changes
in needs/specifications,
Carry out Corrective action if the progress is at
variance with Plans
Regular reporting of progress to higher authorities,
customers & interested parties;

39
 Project Life Cycle
Execution (Implementation and Deployment):

(ii) Deployment
• User Training
• Production Review
• Start Using

• Sign off on project’s completion

Commissioning Phase/ Deployment

Test the project for conformance to specifications

Commission the project, ‘pilot-runs’, & fine-tuning,
Develop plans to hand over the responsibility for
Operations to other departments/ organizations,
Document suggestions & lessons learnt during the
Project for “Knowledge Management” data base of
the Organization,
Disband Project organization and transfer of
resources.

41
 Project Life Cycle

• Post Production Transition

• Document the lessons learned during the project
• After-implementation review
• Provide performance feedback
• Close-out contracts
• Complete administrative close-out
• Deliver project completion report
43 Closing is important because go-live is not the end
of your project

Your project is finished when you have sign-off

(agreement) from stakeholders that it is
finished
 Predictive life cycles
(also known as fully plan-driven)

Predictive life cycles (also known as fully plan-

driven) are ones in which the project scope, and
the time and cost required to deliver that scope,
are determined as early in the project life cycle as
practically possible.
These projects proceed through a series of
sequential or overlapping phases, with each
phase generally focusing on a subset of project
activities and project management processes.

44
 Iterative and incremental life cycles

Iterative and incremental life cycles are ones in which

project phases (also called iterations) intentionally
repeat one or more project activities as the project
team’s understanding of the product increases.
Iterations develop the product through a series of
repeated cycles, while increments successively add to
the functionality of the product.
These life cycles develop the product both iteratively and
incrementally.

45
Adaptive life cycles (aka change-driven or
agile methods)

Adaptive life cycles (also known as change-driven or

agile methods) are intended to respond to high
levels of change and ongoing stakeholder
involvement.
Adaptive methods are also iterative and incremental,
but differ in that iterations are very rapid (usually
with a duration of 2 to 4 weeks) and are fixed in
time and cost.
Adaptive projects generally perform several
processes in each iteration, although early
iterations may concentrate more on planning
activities. 46
Product LC – Life of a Product

From idea, design, develop, introduction in market

to product becoming obsolete.
Consists of generally sequential non-overlapping
product phases.
Project LC occurs in one or more phases of a
product LC.
Many facets of Product LC lend themselves to be
run as projects.
One product – Many projects

47
 Organizational Structure & Project Life Cycle Relationship

Top Management
Conception
Senior Management
Planning Managers

Implementation
Staff/Workmen
& Commissioning

48
 PROJECT MANAGEMENT

UNIT 1) INTRODUCTION TO PROJECTS AND

PROJECT MANAGEMENT:
1.2) Need for project management;

Sunday, M 49
50
Need for project management;

Why are Projects taken up ?

• Market demand

• Strategic Opportunity

• Customer request

• Technological advances / Research

• Legal requirements

5
 What is Project Management

Project Management is the application of skills,

knowledge, tools and techniques to meet the needs
and expectations of stakeholders for a project.

– The purpose of project management is prediction

and prevention, NOT recognition and reaction

– It is pro-active and not reactive. Hence Planning

plays a crucial role in Project Management
Why Project Management?

Need for an organized way of accomplishing a

task, which is often unique and non-repetitive,
taking into consideration it’s resource & time
constraints and other characteristics;
Involves the usual tenets of Management:
– Planning
– Organizing
– Scheduling & Implementing
– Monitoring & Controlling
Plus the special dimensions of:
– Complexity: technological & ‘newness’;
– Temporary-ness.

53
Project Set-up in Brief

 Create Project Management Plan (PMP)

 Be clear of scope and objectives
 Establish clear statement of what is to be
done (WBS)
 Establish Risks to be Managed
 Establish Costs and Durations
 Establish Resources Required
Five Phases of Project Management

These steps were seen in Project Lifecycle section

 Additional Areas of PM - Elaborated

Scope Management
Issue Management
Time Management
Cost Management
Quality Management
HR Management
Communications Management
Contract Management
Risk Management
Change Control Management
 Stakeholder Management
 Resources Management
 Procurement Management
 Integration Management
 Scope Management

Project Scope Management is the process to ensure that the

project is inclusive of all the work required, and only the
work required, for successful completion.
Primarily it is the definition and control of what IS and
IS NOT included in the project.
S.M.A.R.T. Objectives Drive Scope

Specific
Measurable
Assignable
Realistic
Time related

Basically, state what you want to do

And do what you have stated
This is the essence of scoping!
 Scoping Effort - Elaborated

Sets the boundary conditions for

• cost and schedule
• Manageable pieces (work breakdown)
• Identifying right people
• Implementation plan
• Identifies items not to be included

Scoping has Maximum influence on

project cost. Poor scope definition is the
CAUTION
major contributing factor to cost overruns
of projects.
The Four Commandments of Good Project Scope

Written

Well defined

Clearly understood

Achievable
 Scope Creep
Scope creep refers to the work scope being enlarged as the project
progresses

Reasons for Scope Creep

• Client wants a different feature or additional functionality
• Project team comes up with a way to improve the project
outcomes
• Senior management wants the project to do something extra
• Engineering enhances a design component
• A new technology becomes available
• A new government regulation is mandated
 Creeping scope

The effect of “creeping scope” is

a major cause of cost overruns

$
 Cornerstone Contraints

Increased Scope = increased schedule + increased cost

Tight Schedule = increased cost + reduced scope

Tight Cost = increased schedule + reduced scope.

In all the above, quality may be compromised!

 To manage creeping scope

• Keep scope documents current

• Freeze design after the estimate has been approved
• Allow only those changes that are justified by benefit
(controlled scope expansion)
• Use an effective change management procedure for
any scope variation
• Watch for unintended scope expansion
 Best Practices for Avoiding Scope Problems

65 1. Keep the scope realistic. Don’t make projects so large that

they can’t be completed. Break large projects down into a
series of smaller ones.
2. Involve users in project scope management. Assign key
users to the project team and give them ownership of
requirements definition and scope verification.
3. Use off-the-shelf hardware and software whenever
possible. Many IT people enjoy using the latest and
greatest technology, but business needs, not technology
trends, must take priority.
4. Follow good project management processes. As described
in this chapter and others, there are well-defined processes
for managing project scope and others aspects of projects.
65
 Suggestions for Reducing Incomplete and
Changing Requirements
66

Develop and follow a requirements management process

Use techniques such as prototyping, use case modeling, and
JAD to get more user involvement
Put requirements in writing and keep them current
Create a requirements management database for
documenting and controlling requirements

66
 Suggestions for Reducing Incomplete and
Changing Requirements (continued)
67

Provide adequate testing and conduct testing throughout

the project life cycle
Review changes from a systems perspective
Emphasize completion dates to help focus on what’s most
important
Allocate resources specifically for handling change
requests/enhancements

67
 Issue Management
Issues are restraints to accomplishing the deliverables of the
project.
Typically identified throughout the project and logged and
tracked through resolution.
Following processes are followed:
– How and where issues are identified and tracked
– Process of escalating issues up the hierarchy
– The process for updating issues status regularly
– The vehicle by which team members can access documented
issues

Issue… already impacting the cost, time or quality

Rope not thick

 Cost Management
This process is required to ensure the project is completed
within the approved budget and includes:
– Resource Planning - The physical resources required
(people, equipment, materials) and what quantities are
necessary for the project
– Budget - Budget estimates, Baseline estimates,
Project Actuals

Resources Budget
people
equipment
materials
Quantities
 Quality Management
– Quality Management is the process that insure the project will meet
the needs through Quality Planning, Quality Assurance, and Quality
Control
• Clearly Defined Quality Performance Standards
• How those Quality and Performance Standards are measured
and satisfied
• How Testing and Quality Assurance Processes will ensure
standards are satisfied
• Continuous ongoing quality control

“conformance to requirements” - Crosby

“fitness for use” - Juran

“the totality of characteristics of an

entity that bear on its ability to
satisfy stated and implied need’ - ISO 8402:1994
 Communications Management
This is necessary to ensure timely and appropriate
generation, collection, dissemination, and storage of
project information. The process involves:
- Communications planning
– Information Distribution
– Performance Reporting
– Define the schedule for the Project Meetings (Team, OSC, ESC),
Status Meetings and Issues Meetings to be implemented
 Risk Management

Risk identification and mitigation strategy

Monitor when\if new risks arise
Risk update and tracking

Risk… POTENTIAL negative impact to project

Tree – location, accessibility,

Weather
ownership
 Change Control Management

Define how changes to the project scope will

be executed
– Formal change control is required for all of the following
Scope Change, Schedule changes, Technical Specification
Changes, Training Changes

Scope Change Technical Specification Changes

Schedule changes

All changes require collaboration and buy in via the project sponsor’s signature
prior to implementation of the changes
Benefits of project management
Project management was developed to save
cost and time by properly planning a project
and considering all relevant factors which
may affect its outcome

• Less overall project cost

• Less strain on working capital
• Effective use of resources
• More timely project completion
• Higher quality of the final product
Benefits of project management
In Project Management
• Decision-making routes and processes are clearly defined
• Deadlines, costs and resources are controlled
systematically
• All processes in the project management activity chain are
coordinated to ensure they remain in harmony with one
another
• The result helps get:
– more speed
– greater flexibility
– improved quality
Benefits of project management
Project Management processes help to:

• Plan tasks in project

• Avoid dependencies problems
• Reduce risks
• Track progress accurately
• Organize project process and timeline
• Improve stakeholder - staff communication
• Improve management of stakeholders’
expectations
• Complete within budget and on time
 Benefits of project management
• goal clarity and measurement
• resources will be coordinated
• risks will be identified and managed
• increased possibilities of time savings
• Increased possibilities of cost savings
• increased possibilities of achieving agreed
outcomes
• increased possibilities to deliver projects
successfully
 Project Success

Customer
Completed within
Requirements
allocated time frame
satisfied/exceeded

Completed within Accepted by the

allocated budget customer
What Helps Projects Succeed?

1. User involvement
2. Executive support
3. Clear business objectives
4. Emotional maturity
5. Optimizing scope
6. Agile process
7. Project management expertise
8. Skilled resources
9. Execution
10. Tools and infrastructure

79
 Project Success Rules
#1 Gain consensus on project outcome.
#2 Build the best team possible.
#3 Develop a comprehensive, viable plan and keep it
up-to-date
#4 Have a realistic schedule.
#5 Don’t try to do more than can be done.
#6 Remember that people count.
#7 Gain the formal and ongoing support of management
and stakeholders.
#8 Be willing to change.
#9 Keep others informed of what you’re up to.
#10 Be willing to try new things.
#11 Become a leader
 Project Failure

Poor Requirements
Scope Creep
Gathering

Unrealistic planning Lack of resources

and scheduling
 Reasons for Project Failure
1. Poor project and program management
discipline
2. Lack of executive-level support
3. No linkage to the business strategy
4. Wrong team members
5. No measures for evaluating the success of the project
6. No risk management
7. Inability to manage change
 Challenges of Global PM
• Cultural Diversity
• Customs
• Language
• Communications
• Non-Verbal Communications
• Time Zones
• Laws – Trade, Financial, Legal,
Environmental
• Cultural Intelligence (CQ) – awareness and
sensitivity to other cultures
 Caveat!

Saves time and money - and generates a

more successful outcome ….
(caveat!) if guidelines are followed.

The horse and water syndrome!