Lecture 01

Concept of Project Management

1
 Agenda

1. Definitions 2. Project 3. Classification

Management

4. Parameters 5. Project lifecycle 6. Project manager’s

role 2
Definition and scope of a project

A new unique endeavor

Unique means it is not
New means it is done before (at the
different from same location and with
routine the same resources)
operations and it is subject to
risks and uncertainties

3
Definition and scope of a project

01 PMBOK Guide
6th ed.
“A project is a temporary endeavor undertaken to create
a unique product, service or result”

ISO 9000:2000 02
“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 the constraints of time, cost and
resources”
4
Definition and scope of a project

03 Chitkara 4th ed.,

2015
In construction context, project management is the art
and science of managing all aspects of the project to
achieve the project mission objectives, within the
specified time, budgeted cost and predefined quality
specification; working efficiently and effectively in the
changing project environments with due regard to
construction workers’ safety and health

5
 Examples

05 01
Developing a Constructing a
commercial highway
complex 06 02
Running an
Setting up a electioneering
factory campaign
07 03
Developing a
Developing a new
new software
weapon system
04
Building a
housing
Examples complex 6
Definition and scope of a project

Management of the routine operations in an organization

falls in the category of operations management.

7
Project Management Functions
Provisioning
• Prepare resource
resources
procurement schedules
• Sourcing of resources
• Budgeting, arranging
approval for resources
• Preventing wastage
• Ensuring adequate quantity
and quality of resources at
required times
Directing or leadingDirecting
• Commanding respect and
authority
• Motivating participants
• Communicating clear
instructions
• Providing suitable working
environment
Planning
• Crystallizing objectives
• Collecting and synthesizing
Provisioning information
resources Planning • Developing alternative
courses of action within the
specified constraints
Controllin • Comparing alternatives in
g terms of objectives,
feasibility and consequences
Organizin
• Selecting and scheduling
optimum course of action
or
leading
g Organizing
• Breaking up of work
• Setting performance targets
Controlling • Allocating resources
• Specifying performance
parameters
• Developing method of
measurement
• Monitoring performance 8
parameters
 Program vs
Project
• A program comprises of one or
more related projects.
• All projects strategically
contributing to the objectives of the
whole program.
• For example – A government
decision to provide compulsory
education to all its citizen is a
strategic program. This program
may consist of various projects like
construction of new schools,
procurement of new books.
• Program management involves
allocating and managing funds and
others resource between these 9
projects.
Program vs Project

Projec
Projec t
t

Projec
t

Program 10
Types of project
Project type

Need-based Business Focus

Projects Projects
Public Need
Projects Industrial Project
New Product
Development
Corporate Need Projects
Projects
Re-engineering
Projects
Government
Infrastructure Information System
Projects Projects 11
 Project Maturity Levels
Poor maturity Highly matured
• Ill-defined objectives
projects projects
• Unclear delivery process Highly • Clearly defined requirements
• Eg – R&D projects Poor matured
maturity • Well-established methods
• Have high risk of projects
projects and processes
achieving/changing • Eg – Most construction
objectives project
• Risks are comparatively less
Low Moderatel
maturity y matured
projects projects
Moderately
Low maturity
• Clear requirements matured
projects • Clearly defined requirements
• Delivery process unknown
• Eg – New product
projects
• Delivery process not clear
development • Eg – Development and
• Medium risks consultancy projects
• Low value risks
12
 Classification of Construction
Projects
Source: Chitkara 4th ed. (2015)
Project Classification Basis
Nature of construction facility
Nature of work
Mode of execution
Nature of construction contract
Completion time
Classification Breakdown
‘Building construction’,
‘Infrastructure construction’,
‘Industrial construction’, or
‘Special-purpose projects’.
Repetitive Works or Non-repetitive works
Departmental or Contractual
Cost plus, Item Rate, Lump-sum, Turnkey or BOT
Long duration program (over 5 years),
Medium duration project (3-5 years),
Normal duration projects (1-3 years),
Special short-term projects (less than 1 year)
13
 Classification of Construction
Projects
Source: Chitkara 4th ed. (2015)
Project Classification Basis
Budgeted cost (Indian public
sector)
Maturity level
Need based projects
Classification Breakdown
Mega value program/projects (>Rs. 1000 crores)
Large value projects (Rs. 100 crores to 1000 crores)
Medium value projects (Rs. 20 crores to 100 crores)
Small value project less than Rs. 20 crores
Insignificant risk,
Low value risk,
Medium value risk,
High value risk.
Public need projects,
Corporate need projects,
Commercial projects,
Re-engineering projects.
14
Parameters affecting a project
• Following are some common characteristics of construction
projects which make planning of construction project difficult
• Details of work are not precisely defined
• Scope of work gets modified during execution
• Nature of work varies from job to job
• Site of works is located in remote areas
• Places of works are spread out
• Resource requirements and organization of works differ with each task
• Investments involved are large and the decisions entail risks
• Sites are prone to unexplored site geology, uncertain weather and
unforeseen natural calamities
• Rapidly changing technology, fast moving economic conditions and
susceptible environments add new dimension to the complexity

15
 Objectives of a project

• Objective of a project is to create a product or service

or a specified outcome within specified constraints
• A construction project’s objective is to create a desired
facility like a housing complex or a fertilizer plant with
constraints like quality specifications, completion time,
budgeted costs and other specified constraints
• A project after achieving its objectives, ceases to be.
They have defined end.

16
Performance Objectives

17
Success Factors affecting a
Project
1. Project formulation – related factors
• Proper goals and organisational philosophy
• Accurate initial cost estimates
• Clarity of goals by each team members
• Participation of key stake holders
• Clarity of scope and work definition
• Clarity in end user needs
• Preparation of project plans, determine milestones

18
Success Factors affecting a
Project
2. Project management – related factors
• Scheduling
• Planning and review
• Control systems and responsibilities
• Control and information mechanics
• Planning and control techniques

19
Success Factors affecting a
Project
3. Top management – related factors
• Organize and delegate authority
• Select project team
• Absence of bureaucracy
• Management support
• Logistic requirement
• Financial and facility support
• Appoint competent PM

20
Success Factors affecting a
Project
4. Project Manager – related factors
• Onsite project manager
• Previous experience has minimal impact on the project
• Size of previous project does affect the manager’s
performance
• Technical knowledge of project manager
• Competent manager

21
Success Factors affecting a
Project
5. Resources – related factors
• Sufficient resources
• Better HR management
• Adequate funding
• Latest technology and equipment

22
Success Factors affecting a
Project
7. Project Team – related factors
• Continuing involvement in project
• Goal commitment
• Team motivation
• Project team commitment

23
Success Factors affecting a
Project
8. Client – related factors
• Involvement of Client
• Competence of Client
• Client consultation, personnel selection and training

24
Success Factors affecting a
Project
9. Monitoring and feedback – related factors
• Daily monitoring of project
• Regular project progress review meetings
• Control mechanism

25
Success Factors affecting a Project

10. Stakeholder’s - related factors

• Contractor's competency

11. Communication Co-ordination

26
26
Success Factors affecting a Project

12. Other factors

• Organisational politics
• Environmental events
• Urgency of project
• Political stability
• Community involvement

27
27
 Causes of failure

• Jha (2011) cited in Chitkara 4th ed. (2015), highlighted

following critical failure causes of adverse schedule,
cost, quality and contract performance
• Poor human resource management
• Negative attitude of PM and project participants
• Conflict between internal and external stakeholders
• Inadequate planning
• Slow or poor decision-making
• Contractor’s unrealistic tendered cost estimate can also
be another important cause of project failure
28
Project planning and implementation
cycle

29
Project planning and implementation
cycle

30
 Role of project manager

• Governance
• Leadership
• Liaison
• Monitoring
• Disseminator
• Entrepreneur
• Conflict resolution
• Negotiator

31
Responsibilities of Project Manager

• Worker’s safety and health

• Technical management
• Work scope
• Product quality
• Resource control
• Cost management
• Schedule management
• Contract management
• Risk management
• Ethics
32
Types of Organization for
Construction Project

Functional Pure
Weak Balanced Strong
Organizatio Project-ised
Matrix Form Matrix Form Matrix Form
nal Form Form

Project Manager’s control

33
 Types of
Organization for
Construction Project
• The organizational structure
will dictate the level of
power, authority, and
resources available to a
project manager. A
traditional functional
organization gives the
project manager very little, if
any, authority, whereas a
projectized organization will
34
provide the project manager
 Types of Organization
for Construction Project
• A functional organization is a
traditional structure where the
organization is divided based
on the functions performed by
that particular group of people,
such as Human Resources,
Information Technology,
Marketing, Service, etc.
• The project management is one
of the function and project
manager’s role is more of a
coordinator

35
 Types of Organization
for Construction Project
• In projectized organizations, the
project manager has authority
and control of the budget and
any escalation of issues would
be made to the sponsor and
potentially the PMO leadership.
Given that the project resources
report into the project manager
versus the functional area, there
may be a decrease in the
subject matter expertise of the
team members.

36
Types of Organization for Construction
Project
FUNCTIONA WEAK BALANCED STRONG PROJECTIZE
L MATRIX MATRIX MATRIX D

PM's None Limited Low to Moderate High to

Authority Moderate to High Complete

Availability Very Low Limited Low to Moderate High to

of Moderate to High Almost Total
Resources

Project Functional Functional Mixed Project Project

Budget Manager Manager Manager Manager
Control

PM's Role Part-Time Part-Time Full-Time Full-Time Full-Time

PM None Part-Time Part-Time Full-Time Full-Time

Administrat 37
ive Staff
Exercise

38
What is the difference between a Program and a
Project?

39
What is the difference between Functional and
Projectized organization?

40
What are the responsibilities of a Project Manager?

41
What is the difference between Planning and
Controlling?

42
Why cost to change increases with project
progress?

43
What are the common causes of project failure?

44
What is BOT type of contract?

45
What is TurnKey type of contract?

46
What is Cost Plus type of contract?

47
Thank You...

48