Chapter 1  An Overview Of Project Management
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Chapter 1 An Overview Of Project Management






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Chapter 1  An Overview Of Project Management Chapter 1 An Overview Of Project Management Presentation Transcript

  • Chapter 1 An Overview of Project Management
    • Definition of Project
    • What is Project Management?
    • Why Project Management?
    • The Life Cycle of a Project.
    • Managing the Project Scope.
    • Who should be the Project Manager and who should not be?
    • Project Manager v/s Line Managers
    • Project Communication Management
    • The Growth of Project Management
    • Project Management in India
    • Ethics in Project Management
    • Management of International Projects
  • Two Important Questions
    • Managing a project is called Project Management.
    • Q1: What is a project?
    • Q2: Why did project management become a separate branch of study, away from the general management?
  • Definition of Project
    • A project is a
    • Group of unique, inter-related activities that are planned and executed in a certain sequence to create a unique product or service, within a specific time frame, budget and the clients specifications.
    • According to Project Management Institute’s a Project is defined as
    • “ A temporary endeavor undertaken to create a unique product or service”
    • The British standard defines a project as
    • “ A unique set of coordinated activities, with definite starting and finishing points, undertaken by an individual or organization to meet specific objectives within defined schedule, cost and performance parameters”.
    • A project means “ any undertaking that has definite, final objectives representing specified values to be used in the satisfaction of some need or desire”
    • A commercial project involves the following key considerations;
      • What is the cost?
      • What is the time required?
      • What are the capabilities that it provides to the organizations?
      • Whether it will fit into the strategies of the organization?
  • Some Of The Project Initiatives Include:
    • Redesigning or relocating a production facility (Manufacturing Project)
    • Implementing a management information system (MIS Project)
    • Developing a new alloy required for a space vehicle. (Spacecraft Project)
    • Constructing national highways (Infrastructure Project)
    • Organizing the Olympics (Sports project)
    • Constructing a dam for better irrigation facilities. (Infrastructure Project)
    • Launching of new product (Advertising and Marketing Project)
    • Implementing a new computer system (IT project or upgrade)
    • Designing and Implementing a new organizational structure (HR Project)
    • Designing and Constructing a house or colony (Construction Project)
  • Project Parameters
    • Some common constraints that influence a project are:
        • Scope
        • Quality
        • Cost
        • Time
        • Resources
  • Relationship between Project Parameters
    • The scope and quality of a project are influenced by a variety of constraints like
      • Time
      • Cost and
      • Availability of resources
  • The Scope Triangle Resource Availability C A Time B Cost Project Scope and Quality
  • Project Success or Failure formula S = W i r i t=1 Where: 1 to 3 = Time, Cost and Performance Wi = Weight assigned to each factor: time, cost and performance Ri = degree of success in each factor
  • Difference between Project and Program Project Program Project includes all activities to complete a given job. A program is defined as an ongoing process or ongoing operation indefinitely. It has narrow scope and has shorter duration It has broader scope and has longer duration Project is a part of Program It is a main activity Projects is individual activity. A program is a group of projects managed in a coordinated way to obtain benefits not available from managing them individually
  • Types of Projects
    • Project Typology: Uncertainty and Complexity
    • First step in classification of projects is to recognize the class of project involved, so as to determine the type of organization system and leadership style to set up.
    • Next most important is to consider “ How much” project management to apply. This depend upon the level of risk involved and the degree of project complexity.
  • Shenhar(1996) has proposed the following project classification dimensions . Shenhar Classification : Source :
  • 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
    • 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.
  • 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
  • Four Phases in the Life of a Project
    • The Project Life Cycle refers to a logical sequence of activities to accomplish the project’s goals or objectives.
    • Regardless of scope or complexity, any project goes through a series of stages during its life.
    • Phase I : Conception and Selection
    • Phase II : Planning and Scheduling
    • Phase III : Implementation, Monitoring and Control
    • Phase IV : Evaluation and Termination
    Project Life Cycle
  • Functions Performed in Phase I Conception & Selection Phase II Planning & Scheduling Phase III Implementation, Monitoring and Control Phase IV Evaluation & Termination
    • Identifying a need for a project
    • Establishing goals to be achieved by the project.
    • Estimating the amount that the firm will have to commit for the project.
    • Presenting the project idea or various alternative ideas to the management and get their approval
    • Set up a technical team to decide on how the project can e implemented.
    • Plan for the requirements of personnel, finance, materials etc.
    • Prepare a schedule.
    • Procuring materials
    • Building and testing the tools
    • Developing support systems
    • Producing the system that is aimed at.
    • Verifying whether the performance is up to the laid down standard.
    • Making modification if required.
    • Training operational Staff
    • Transfer of materials
    • Transferring the responsibilities
    • Releasing surplus resources, that remain after use
    • Releasing the project staff for the next assignment.
  • Managing the Project Scope
    • The scope of the project determines the boundaries of the project.
    • The scope specifies what features/ a characteristic of the project product is included and what is not included.
    • In project management there are actually two different scopes.
      • Product Scope, which is what the end result of the project will create.
      • The product scope is what customers focus on—what they are envisioning the firm to create.
      • The product scope describes the thing or service that will exist as a result of undertaking the project.
      • Project Scope, on the other hand, describes all the work to create the product scope.
      • It includes all of the work, and only the required work, to complete the project deliverable.
    • Project Manager and the client prepares project scope and deliverables.
    • The project manager then prepares a Project Overview Statement based on the list of deliverables.
    • The POS will be sent to the firms top management for approval.
    • The PM prepares a Project Definition Statement with his team members that can be used as a reference in executing the project.
    Managing the Project Scope Continued….
  • Who should be the Project Manager?
    • In any organization we find two types of people:
    • 1. Those who give excellent ideas from their knowledge and experience but are not very good at getting things done and
    • 2. Those whose are good at handling men and matters, but are not as sound as the former in technical matters.
    • People who have great ideas are not necessarily good implementers.
    • The manager of a project should be one who can work effectively with different groups of people, interact with various departmental heads, and integrate all the functions to get the project move.
    • Harold Kerzner calls the first type of people ‘ Project Champions’ and the Second ‘Project Manager”.
  • Project Manager Vs Line Managers
    • There is always a constant tussle between the line managers and the project manager to share the organizations resources like;
      • Money, Manpower, Equipment, Facilities and Information Technology.
    • Manpower is controlled by Line Managers.
    • Allocation of manpower will be done by Line Managers based on the request made by Project Manager.
    • Employees provided to Project Manager continue to report to Line Manager and give preference to the commands of the Line Manager over the Project Manager.
    • Success of Project depends on good working relationship between PM and LM
  • Project Communication Management
    • Effective communication is crucial for the success of a project.
    • Project communication , which includes both formal and informal communication at various levels, involves all the activities and behavior by which information is exchanged between the project manager and his team members.
    • Project Communication Management includes all those processes that are required to ensure that information pertaining to the project is generated, collected, disseminated, stored and ultimately disposed of, in a timely and appropriate manner.
    • Project communication planning involves determining the information and communication requirements of the various stakeholders of a project.
    • Steps in communication planning are:
      • Identifying information requirements
      • Choosing the appropriate communication technology
      • Stakeholder analysis
      • Communication management plan
  • Growth of Project Management
    • Phase I: Before 1950s
      • PM was only informal
      • Projects were handled on an informal basis by some people chosen from various departments.
      • No formal project management departments.
      • Handling projects was also done by Line Managers
      • Formal Lines of Communication were unnecessary
      • Sophisticated organization structure was non-existent.
    • Phase II : Late Sixties
      • PM gained widespread acceptance.
      • Complexity of the tasks and the sizes of the organizations increased.
      • Formal Project Management Departments came into force
      • Clear cut distinction between the role of Project Manager and Line Manager were established
      • All the departments started involving in the project activities
      • Effective communication system were in place.
      • Resistance from the people involved was very high on account of Pay packets, Power in the organization and visibility to the top management.
  • Phase III - Late Seventies
    • Project Management started spreading further and further and following benefits started to accrue from it.
      • Unhindered flow of work horizontally and vertically
      • Improvement in the orientation towards customer problems.
      • Easier demarcation of responsibilities
      • Better adaptation to a dynamic environment
      • Ability to handle a multi-disciplinary activity within specified constraints.
      • Improvement in organizational design.
  • Project Management Institute(PMI)
    • To meet the industrial requirements , to improve the skills and standards and to make project manager more professional , an international institution the Project Management Institute was set up in 1969.
    • PMI is a non-profitable professional organization dedicated to promoting Project Management.
    • It has more then 150000 members over 150 countries.
    • Role of PMI
      • To Set industry standards
      • Conducts research and provides education
      • Certification Program
      • Conducts Seminars and International Workshops to discuss the present context and improve the standards of project management.
  • Project Management In India
    • Project Management has been adopted in India after Independence.
    • Right from the inception, it has been a failure in India.
    • Severe time and cost overruns have been the characteristic features of projects, particularly in the public sector.
    • Commonly quoted reasons for the overruns are:
      • Internal Reasons
      • External Reasons
  • Internal Reasons
    • Disputes with local people on acquisition of land and compensation.
    • Bad choice of technology
    • Non-availability of skilled personnel
    • Lack of proper planning
    • Non-availability of the equipment of required quality at the required time.
    • Poor quality of the inputs purchased
    • Labor disputes
    • Lack of proper handling of organizational issues such as appointment of the project manager
    • Absence of proper co-ordination between different departments involved, such as customs, sales tax. Etc.
    • Lack of proper monitoring and follow up.
  • External Reasons
    • Funds not being released by the concerned department on time.
    • Changes in foreign exchange rates
    • Inflation
    • Political instability and lack of Political Will to implement projects quickly and efficiently
    • Budget deficits
    • Diversion of funds to other unforeseen uses like meeting a natural calamity.
  • Ethics in Project Management
    • Ethics means science of conduct.
    • Doug Wallace and John Pekel define Ethics as the basic ground rules by which humans live.
      • These ground rules differ from society to society and individual to individual, and similarly from a project executed in one country to one executed in another.
    • Therefore, ethics refer to the moral principles that are accepted by the majority of the members of the society.
    • Project Manager should exercise care when dealing with ethical issues that arise during the development and implementation of a project.
  • Ethics and Project Management
    • The decision taken by project management professionals will have an impact on the quality of life of various stakeholders of the project.
    • Some common ethical mistakes committed by businesses;
      • Taking shortcuts in order to meet the schedule or budget
      • Using inferior quality materials
      • Compromising on safety measures
      • Violation of standards
  • Management of International Projects
    • Globalization has a significant impact on the way the projects are managed.
    • According t Rudd Lubbers,
      • Globalization is a process of minimizing the significance of geographical distance, in developing and maintaining international economic, political and socio-cultural relations.
    • There are 3 basic models of project management based on the project management styles in different geographic locations.
      • The European Model- Fully structured and systematic procedure for handling technical issues
      • The North American Model : The system is not as formal and rigid as it is in Europe.
      • The Japanese Model : They believe that superior technology brings in superior core competency.
  • Impact of the Business Environment on International Projects
    • The fundamental difference between an international project and a domestic project is that international projects require an in-depth analysis of the various constituents of the macro and micro environments.
    • The Major constituents are;
      • Language
      • Culture
      • Political Environment
      • Economic conditions
      • Government regulations
      • Availability of infrastructure
      • Human capital
    • The success or failure of an international project is based on the pre-analysis of the micro and macro environment of the country, where the project is to be implemented.
  • Challenges in International Projects
    • Political disturbances
    • Economic instability
    • Sudden changes in Tax laws
    • Time consuming government procedures
    • Cultural barriers
    • Patent laws
    • Dispute settlements
    • Lack of physical proximity
  • Thank You