PROJECT MANAGEMENT

PROJECT MANAGEMENT INTRODUCTION- EXAMPLE

DELHI METRO PROJECT:244 KM OF METRO RAIL NETWORK. PHASE- I COSTING RS. 10,55 CR. WOULD CARRY 21.8 LACSPASSENGER PER DAY, REDUCE 2500 BUSES I.E RS. 500 CR. FUEL SAVING, LESS POLLUTION AND SAVING OF 20 LACS MAN HOUR PER DAY DUE TO RAPID JOURNEY AS COMPARED JOURNEY BY ROAD TRANSPORT. THE ENTIRE PROJECT IS TO BE COMPLETED IN TIME. THERMAL POWER STATION: A 500 MW THERMAL POWER STATION COSTING RS. 2000 CR. WOULD HAVE TO BE COMPLETED TO ADD TO EVR INCREASING DEMAND-SUPPLY GAPS AND HELP INDUSTRIALISATION OF THE COUNTRY. WATER SUPPLY PROJECTS: INSTALLATION OF WATER SUPPLY SCHEMES TO SUPPLY DRINKING WATER TO REMOTE VILLAGES OF THE COUNTRY. IRRIGATION PROJECTS: A SYSTEM OF DAMS AND BARRAGES FOR STORING WATER AND SUPPLY TO PERCHED LAND THROUGH OUT THE COUNTRY AND HELP IN INCREASING FOOD PRODUCTION. DISTRIBUTION OF ELCTRIC POWER: A SYSTEM OF SUB-STATIONS AND TRANSMISSION LINE FOR DISTRIBUTION OF POWER. HEALTH CARE: A SYSTEM OF HOSPITALS AND HEALTH CARE CENTERS IN VILLAGES, TOWNS AND DISTRICT HEAD QUARTERS. ROADS AND RAILWAYS, AIRPORTS, SEA PORTS.A ROBUST INFRASTRUCTURE TO SUPPORT INDUSTRIALISATION AND GROWTH OF THE COUNTRY. 2
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PROJECT MANAGEMENT INTRODUCTION A PROJECT MAY BE DEFINED AS A SERIES OF RELATED JOBS, REQUIRING A SIGNIFICANT PERIOD OF TIME TO PERFORM, USUALLY DIRECTED TOWARDS SOME MAJOR OUTPUTS. PROJECT MANAGEMENT MAY BE DEFINED AS PLANNING, DIRECTING AND CONTROLLING RESOURCES (MEN, MATERIAL, MACHINES, MONEY) TO MEET THE TECHNICAL, COST, TIME AND OTHER CONSTARINTS OF THE PROJECT. SUCCESSFULLY COMPLETED PROJECTS, APART FROM MEETING THE OBJECTIVES, HELP ORGANISATIONS TO IMPROVE THEIR SYSTEMS AND CULTURE, DEVELOP LEADERS AND TEAMS, BUILDS CREDIBILITY AND BRAND NAME IN THE MARKET. BADLY MANAGED PROJECTS ON THE OTHER HAND LEAD TO LOSS OF RESOURCES AND IMAGE IN THE MARKET AND IN THE LONG RUN PUTS PRESSURE ON THE ECONOMY. PROJECTS COULD BE: DERIVATIVE: INCREMENTAL CHANGES SUCH AS NEW PRODUCT PACKAGE PACKAGING OR NO-FRILLS VERSION; BREAKTHROUGH: MAJOR CHANGES THAT CREATE ENTIRELY NEW PRODUCT; PLATFORM: FUNDAMENTAL CHANGES TO EXISTING PRODUCTS E.G. FROM CONTRACTING TO BOT OR BOOT; RESEARCH AND DEVELOPMENT, AND ALLIANCE AND PARTNERSHIP.
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PROJECT MANAGEMENT INTRODUCTION

MANUF.

START

SYSTEM SPECN

DESIGN

CIVIL WORK

MECH. WORK

ELECT. WORKS & CONTROLS

PROCUREMNT.

TRIALS

COMMISSNG.

COMMERCIAL PRODN.

EXPSN. PLAN

FOUR PHASES CONCEPTUAL PHASE PLANNING PHASE IMPLEMENTATION & CONTROL PHASE FEEDBACK A TYPICAL PROJECT FLOW DIAGRAM

PROJECT MANAGEMENT A FRAME WORK FOR PROJECT MANAGEMENT

HOW WELL?

WHAT?
PROJECT MONITORING & CONTROL, POST PROJECT APPRAISAL WORK BREAKDOWN STRUCTURE (WBS)

WHEN?

NETWORK REPRESENTATION & PLANNING

ORGANISATION BREAKDOWN STRUCTURE (OBS)

WHO?

COST BREAKDOWN STRUCTURE (CBS)

5
HOW MUCH? CONTD.

PROJECT MANAGEMENT STRUCTURING PROJECTS PURE PROJECT, WHERE A SELF-CONTAINED TEAM WORKS FULL TIME. THE PM HAS FULL AUTHORITY, TEAM MEMBERS REPORT ONLY TO THE PM. IT SPEEDS UP COMMUNICATION AND ENHANCES SPEED. MAY, HOWEVER, LEAD TO NARROW MINDEDNESS AND IGNORING ORGANISATIONAL GOALS AS THE TEAM MAY DISSOLVED AFTER THE PROJECT IS COMPLETED. FUNCTIONAL PROJECT, HOUSES THE PROJECT WITHIN THE FUNCTIONING DIVISION. ALLOWS MOBILITY OF TEAM MEMBERS FROM ONE PROJECT TO ANOTHER IF REQUIRED, SHARING OF SPECIALITY / EXPERTISE. PROJECT AND CUSTOMER MAY NOT GET ENOUGH ATTENTION IN ASPECTS NOT DIRECTLY RELATRED TO THE LEAD DIVISION.

PRESIDENT
R&D ENGG MANF

P1

P1

P1

P1

P1

P1

P1

P1

P1

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PROJECT MANAGEMENT STRUCTURING PROJECTS

MATRIX PROJECT, ATTEMPTS TO BLEND PROPERTIES OF FUNCTIONAL AND PURE PROJECT STRUCTURE. WHILE THE PM IS THE BOSS OF THE PROJECT, THE FUNCTIONAL DEPARTMENTS KEEP TRACK AND COMES UP WITH BACK UP AS AND WHEN NEEDED. WORKS BEST IF THE PROBLEMS OF DUAL REPORTING ARE MANAGED LEADING TO POSITIVE RESULTS.
PRESIDENT

R&D

ENGG.

MANF.

MARKTG

MNGR P 1

MNGR P 2

MNGR P 3

PROJECT MANAGEMENT WBS-CBS-OBS

WBS
PROJECT

DESIGN

CIVIL

MECHANICAL

ELECTRICAL

INTEGRATION

FINANCE

CBS
WORKS COMPANY

A TYPICAL WORK PACKAGE

MATERIAL

PROCUREMENT

OBS
DESIGN

LABOUR

TOTAL COST

EQUIPMENT

PROJECT MANAGEMENT WORK BREAKDOWN STRUCTURE (WBS)

STATEMENT OF WORKS CONTAIN THE OBJECTIVES, A BRIEF STATEMENT ON THE WORKS TO BE DONE, A PROPOSED SCHEDULE SPECIFYING THE START AND COMPLETION DATES, PERFORMANCE MEASURES IN TERMS OF BUDGET, MILE STONES, REPORTING SCHEDULES.. TASK IS A SUB-DIVISION OF A PROJECT. SUB-TASKS MAY BE FURTHER MEANINGFUL SUB-DIVISION OF PROJECT FOR CLARITY AND ACTION. A WORK PACKAGE IS A GROUP OF ACTIVITIES COMBINED TO BE ASSIGNABLE TO A SINGLE ORGANISATIONAL UNIT. PROJECT MILESTONES ARE INTERMEDIATE EVENTS OF SIGNIFICANCE E.G. DESIGN COMPLETION, PRODUCTION OF PROTOTYPE.. WORK BREAKDOWN STRUCTURE DEFINES THE HIERARCHY OF PROJECT TASKS, SUB-TASKS AND WORK PACKAGES

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PROJECT MANAGEMENT WORK BREAKDOWN STRUCTURE (WBS)

LEVEL PROGRAM

PROJECT 1

PROJECT 2

TASK 1.1

TASK 1.2

SUB-TASK 1.1.1

SUB-TASK 1.1.2

WORK PACKAGE 1.1.1.1

WORK PACKAGE 1.1.1.1

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PROJECT MANAGEMENT WORK BREAKDOWN STRUCTURE (WBS) - EXAMPLE

LEVEL 1 X X X X X X X X X X 2 3 4

ACTIVITY NO. 1 `1.1 1.1.1 1.1.1.1 1.1.1.2 1.2.1 1.2.1.1 1.2.1.2 1.3.1 1.3.1.1

ACTIVITY DESCRIPTION

DEVELOPMENT OF A TOY GUN IN THE AGE GROUP 5 12 YEARS MARKET SURVEY FOR AGE GROUP 5 8 YEARS FEEDBACK ON OLD PRODUCT IN THE MARKET PREFERENCE ON NEW FEATURES FOR AGE GROUP 8 10 YEARS FEEDBACK ON OLD PRODUCT IN THE MARKET PREFERENCE ON NEW FEATURES FOR AGE GROUP 8 10 YEARS FEEDBACK ON OLD PRODUCT IN THE MARKET

NEW PRODUCT DEVELOPMENT

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PROJECT MANAGEMENT PROJECT CONTROL CHARTS-GANTT CHART OR BAR CHART

ACTIVITY MONTHS

TENDER NOTICE RECD ACTIVITY TENDER SUBMITTED PROGRESS NEGOTIATIONS MILESTONES

ORDER RECEIVED

APPROVAL

DESIGN APPROVAL 1ST PROTOTYPE

THE CHART, NAMED AFTER HENRY L. GANTT, SHOWING BOTH THE AMOUNT OF TIME INVOLVED AND 12 THE SEQUENCE IN WHICH THE ACTIVITIES CAN BE PERFORMED.

PROJECT MANAGEMENT NETWORK PLANNING MODELS CONVENTIONS & TERMINOLOGY

ES = EF =

ACTIVITY ON NODE (AON)

A
CAST FNDN. 4

LS =

LF =

ACTIVITY ON ARROW (AOA)

ES = LS = EF = EF =
CAST FNDN.

A 4

ACTIVITY : TASKS, WHICH MUST BE COMPLETED. HAVE START AND FINISH TIMES. CONSUME RESOURCES, YEILD RESULTS. EVENT: OUTCOME OF ONE OR A SET OF ACTIVITIES. CRITICAL PATH: LONGEST PATH OF INTRRELATED ACTIVITIES. DELAYING ANY ACTIVITY ON THE CRITICAL PATH DELAYS THE POJECT COMPLETION.
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PROJECT MANAGEMENT NETWORK PLANNING MODELS

OPTIMISTIC TIME (t0) : AN ESTIMATE OF TIME, MAY BE UNDER IDEAL CONDITIONS. PESSIMISTIC TIME (tp) : AN ESTIMATE OF TIME, MAY BE UNDER MOST ADVERSE CONDITIONS. MOST LIKELY TIME (tm) : THE BEST GUESS, BASED ON PAST DATA, A REALISTIC ESTIMATE. EXPECTED TIME (te) : THE MEAN ACTIVITY TIME OF THE OPTIMISTIC, PESSIMISTIC AND MOST LIKELY TIME. te = (t0 + 4 * tm + tp ) / 6

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PROJECT MANAGEMENT NETWORK PLANNING MODELS - TERMONOLOGY

EXPECTED START TIME: EXPECTED START TIME FOR A NODE IS THE TIME EXPECTED TO BE CONSUMED BEFORE AN ACTIVITY CAN START. EARLIEST START TIME : ACTIVITY IN QUESTION, CANNOT START EARLIER. MAXIMUM OF ALL START TIMES OF PRECEEDING ACTIVITIES. EARLIEST FINISH TIME : EARLIEST START TIME + ACTIVITY DURATION. LATEST START TIME : LATEST TIME AN ACTIVITY CAN START WITHOUT DISRUPTING THE SCHEDULE. LATEST FINISH TIME : LATEST START TIME + ACTIVITY DURATION. SLACK TIME OR FLOAT: AMOUNT OF TIME AN ACTIVITY CAN BE DELAYED BEYOND ITS EARLIEST START TIME WITHOUT DISRUPTING THE SCHEDULE SLACK OR FLOAT = LATEST START TIME EARLIEST START TIME.

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PROJECT MANAGEMENT NETWORK PLANNING MODELS - EXAMPLE

ACTIVITY A B C D E F G LEASE MALL INTERIOR SURVEY CUSTOMER SURVEY MARKET DECIDE MERCHANDISE BUILD ORGANISATION GET SUPPLIES DESCRIPTION IMMEDIATE PREDECESSOR A C E D B,E DURATION (WEEKS) 20 22 15 20 5 18 13

ES LS

EF LF
0/0

TS/FS
20 20 20 20 0/0 22 INTERIOR

TOTAL SLACK = LS ES = LF EF FREE SLACK = ES (EARLIEST SUCCESSOR) - EF

42 42 40 42

20
LEASE MALL 0

5
42 42

0/0 GET SUPPLIES

A 5

1
2

0 0 2/2

G E
2/0

13
55 55 53 55

2/0 SURVEY CUSTOMER

DECIDE MERCHANDISE 2/0

C 15
15 17 15

18 F 20
35 37 35 37 35 4 37 BUILD ORGANISATION

SURVEY MARKET

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PROJECT MANAGEMENT MANAGING RESOURCES

DEVELOP PROJECT SCHEDULE

COST WITHIN BUDGET ?

NO

NO LEARN I NG
TIME WITHIN SCHEDULE ?

NO
RESOURCES WITHIN CONTROL ?

FEED BACK

REV I EW & UPDATE

SCHEDULE ACCEPTABLE ?

NO

DOCUMENT PLANS/SCHEDULES 17

IMPLEMENT

PROJECT MANAGEMENT TO SUMMARISE

A PROJECT MAY BE DEFINED AS A SERIES OF RELATED JOBS, REQUIRING A SIGNIFICANT PERIOD OF TIME TO PERFORM, USUALLY DIRECTED TOWARDS SOME MAJOR OUTPUTS. PROJECT MANAGEMENT MAY BE DEFINED AS PLANNING, DIRECTING AND CONTROLLING RESOURCES (MEN, MATERIAL, MACHINES, MONEY) TO MEET THE TECHNICAL, COST, TIME AND OTHER CONSTARINTS OF THE PROJECT. SUCCESSFULLY COMPLETED PROJECTS APART FROM MEETING THE OBJECTIVES, HELP ORGANISATIONS TO IMPROVE THEIR SYSTEMS AND CULTURE, DEVELOP LEADERS AND TEAMS, BUILDS CREDIBILITY AND BRAND NAME IN THE MARKET. BADLY MANAGED PROJECTS ON THE OTHER HAND LEAD TO LOSS OF RESOURCES AND IMAGE IN THE MARKET AND IN THE LONG RUN PUTS PRESSURE ON THE ECONOMY. PROJECT SCHEDULING,CRASHING, MONITORING.. ARE DONE WITH A VIEW TO DIRECT AND CONTROL PROJECTS AND FRUITION.
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