introduction gement to project mana

1. CHAPTER ONE
Introduction to
Project
Management

2. What Is a Project?
o Project is a temporary endeavour undertaken to
create a unique product or service or result.
o Project is a unique process, consist of a set of
coordinated and controlled activities with start
and finish dates, undertaken to achieve an
objective confirming to specific requirements,
including the constraints of time cost and
resource.

3. Project characteristics
o Unique in nature
• creation of new product or service
• creation of new process
• product or service new to this group of people
o Have definite objectives (goals) to achieve
o Requires set of resources
o Time-limited
• have a start and end date
• will be complete when a particular objective is
achieved
o Involves risk and uncertainty
o Requires cross-functional teams and interdisciplinary

4.  A project contains a well defined objective.
 The objective is defined in terms of scope schedule,
and cost.
 A project is carried out via a set of interdependent
tasks.
 A project uses various resources to carry out tasks.
 A project has a definite start date and an expected
completion date. The actual completion date may not
always be the same as the expected date.
 A project is a one time or unique endeavor.
Characteristics of projects

5. What is project management?
• The art of organising, leading, reporting and completing a
project through people
• 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
• A The project manager is the individual responsible for
delivering the project. The individual leads and manages
the project team, with authority and responsibility from the
project board, to run the project on a day-to-day basis.

6. A project manager is responsible for:
o Initiating,
o Planning,
o Executing,
o Controlling,
o Monitoring,
o And closing down a project.
The project manager responsibilities

7. Project manager role
A good project manager
• Takes ownership of the whole project
• Is proactive not reactive
• Adequately plans the project
• Is authoritative (NOT authoritarian)
• Is decisive
• Is a good communicator
• Manages by data and facts not uniformed optimism
• Leads by example
• Has sound judgement
• Is a motivator
• Is diplomatic
• Can delegate

8. • Deliverables: Tangible ‘things’ that the project produces
• Milestones: Dates by which major activities are
performed.
• Tasks: Also called Actions. Activities undertaken during
the project
• Risks: Potential problems that may arise
• Issues: Risks that have happened
• Gantt Chart: A specific type of chart showing time and
tasks. Usually created by a Project Management program
like MS Project.
Common project terms

9. Project performance dimensions
• Three major dimensions that define the project
performance are scope, time, and resource.
• These parameters are interrelated and interactive.
• The relationship generally represented as an
equilateral triangle.
• Called also the Project
Management triangle
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10. Project performance dimensions..
 The project scope is the total amount of work that needs
to be done to complete a project.
 Any change in any one of dimensions would affect the
other. For example,
 Increased scope = increased time + increased cost
 Tight budget = increased time + reduced scope
 Tight time = increased costs + reduced scope
 Thus the performance of a project is measured by the
degree to which these three parameters (scope, time and
cost) are achieved.
Mathematically Performance = f(Scope, Cost, Time)
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11. Successful projects
Successful projects are those that
 Meet business requirements
 Are delivered and maintained on schedule
 Are delivered and maintained within budget,
and
 Deliver the expected business value and
return on investment.
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12. What makes a successful project?
Factors that are crucial to the success of any project
include:
• Hiring experienced project managers
• Comprehensive and proper planning
• Adhere to the best practices
• Monitoring & control regularly
• Use a professional software
• Effective communication
• Work with committed people
• Proper risk management
• Stakeholder involvement
• Defined and consistently executed change management

13. • Incomplete and/or vaguely defined requirements or
specifications
• Changing requirements or specifications
• Lack of executive support
• Insufficient planning
• Underestimated time and resources allocated for design and
quality control
• Technological incompetence
• Insufficient resources
• Unrealistic expectations
• Unclear objectives
Why do projects fail?

14. Project Classification
• There is no standard classification of the projects.
• However considering project goals, these can be
classified into two broad groups, industrial and
developmental.
• Each of these groups can be further classified
considering nature of work (repetitive, non-
repetitive), completion time (long term, shot term
etc.), cost (large, small, etc.), level of risk (high, low,
no-risk)
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15. Industrial projects
• Also referred as commercial projects, which are
undertaken to provide goods or services for
meeting the growing needs of the customers and
providing attractive returns to the investors/stake
holders.
• Following the background, these projects are
further grouped into two categories i.e., Demand
based and resource / supply based.
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16. Industrial projects
a) The demand based projects are designed to
satisfy the customers’ felt as well the latent needs
such as complex fertilizers, agro-processing
infrastructure etc.
b) The resource/ supply based projects are those
which take advantage of the available resources
like land, water, agricultural produce, raw material,
minerals and HR.
Examples, oil refineries
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17. Development projects
• Development projects are undertaken to facilitate
the promotion and acceleration of overall economic
development.
• These projects act as catalysts for economic
development providing a cascading effect.
• Development projects cover sectors like irrigation,
agriculture, infrastructure health and education
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18. Differences between industrial projects
and developmental project
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Dimensions Industrial projects Developmental projects
Scale of Project Limited Large
Promoters Entrepreneurs or corporates Government, Public Sectors,
NGOs
Investment Low/moderate High
Source of fund Equity and financial
institutions
International organizations
like World Bank,
IMF and others
mostly as loan and grants.
Interest rates and
repayment
period
Market rate and the
repayment period is generally
7 to 10 years
Very low for borrowed funds
and the repayment period
extends up to 25 years and
even beyond.
Very low for borrowed funds
and the repayment period
extends up to 25 years and
even beyond.

19. Key areas of project management
• Scope management
• Issue management
• Cost management
• Quality management
• Communications management
• Risk management
• Change control management

20. Scope Management
• Scope management is the process of identifying and
controlling the outputs, outcomes , benefits and the work
required to produce the project
• Primarily it is the definition and control of what IS and IS
NOT included in the project.

21. Issue Management
• The process of identifying and resolving factors which
have a negative impact on the project..
• Examples: Problems with staff or suppliers, technical
failures, material shortages etc.

22. Cost Management
• Is the process of planning and controlling the costs
associated with a project .
• It includes collecting, analysing and reporting cost
information
• It involves estimating and allocating financial
resources to given project.

23. Quality Management
• Project quality management is the process of continually
measuring the quality of all activities and taking
corrective action until the team achieves the desired
quality.

24. Communications Management
• Is the process generating, collecting, disseminating, and
storing information timely and appropriately
• It ensures all stakeholders are kept informed about the
project’s progress, issues, and changes, thereby
facilitating effective decision making and collaboration.

25. Risk Management
• Project risk management is the process of identifying,
anticipating, mitigating, preventing, and responding to
potential risk events that may occur during a project.
• Project risk refers to anything in the project that
doesn’t go as planned.
• Examples: possibility for a project to go over budget,
extend beyond their scheduled end time, or require
extra resources, as well as every other circumstance
that could affect its outcome

26. Issue vs. risk
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• An “issue” already has occurred and “risk” is a
potential issue that may or may not happen and can
impact the project positively or negatively.
• We plan in advance and work out mitigation plans
for risks where as, we act immediately to resolve the
issues

27. Change Management
• Is the system a team uses to make major changes
to a previously approved project.
• This can include budget additions and subtractions,
deadlines or goalposts, and even new hiring as
project needs evolve over time.
• Change control process in project management
helps intake, monitor, and resolve change requests

28. Project Life Cycle
• The project life cycle is made up of five project stages:
1) Project initiation
2) Project planning
3) Project execution
4) Project monitoring & control and
5) Project closing.

29. Initiation Phase
• Is the beginning of the project.
• In this phase the idea for the project is explored
and elaborated
• The goal of this phase is to examine the feasibility
of the project.
• it involves deciding who is to carry out the project,
which party (or parties) will be involved and
whether the project has an adequate base of
support among those who are involved.

30. Some steps in the initiation phase
include:
• Communicating with stakeholders to understand the
purpose and desired outcomes of the project
• Identifying project scope
• Determining SMART goals (specific, measurable,
achievable, relevant, and time-bound)
• Clarifying resources like budget and time constraints
• Confirming team size and roles required
• Determining how often and which stakeholders will be
involved throughout the project
• Compiling a project proposal and project charter
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31. Planning phase
• In the planning phase, the project manager works
with the project team to create the technical
design, task list, resource plan, communications
plan, budget, and initial schedule for the project,
and establishes the roles and responsibilities of
the project team and its stakeholders.