Project Management <ul><li>By </li></ul><ul><li>Dr. P.K. Gupta </li></ul>
What is a Project? <ul><li>An activity for satisfaction of need or desires </li></ul><ul><li>A flow of resources (energy) ...
PMI Definition <ul><li>A project is a one-shot, time limited, goal directed, major undertaking, requiring the commitment o...
Project Defined <ul><li>a project is a one-time effort, non-repetitive in nature, undertaken in fulfilment of a specific o...
Special Characteristics of Projects <ul><li>Definite Objective </li></ul><ul><li>Uniqueness(unfamiliarity, one-time effort...
Projects & Strategy Projects are resource consuming sets of activities through which strategies are implemented and goals ...
Why to worry about capital expenditures (projects)?   <ul><li>Irreversibility of investment </li></ul><ul><li>Huge Outlays...
Projects and Business Models <ul><li>A clear business model is must for the success of a project.  </li></ul><ul><li>Busin...
Why do projects fail? <ul><li>Dissonance between the organizational strategy and project goals </li></ul><ul><li>Lack of v...
Why do projects fail? <ul><li>Projects fail because of the failure of the underlying assumptions </li></ul>
Identifying White-elephant Projects <ul><li>White-elephant projects usually have some glamorous appeal, which passes for r...
Characteristics which make them fail (visible in informative stage) <ul><ul><ul><li>Unnecessarily risky </li></ul></ul></u...
The Characteristics of Sound Projects <ul><ul><ul><li>They have a market , either home or abroad </li></ul></ul></ul><ul><...
PROJECT DEVELOPMENT CYCLE <ul><li>Pre-investment Phase </li></ul><ul><li>Identification of Investment Opportunities </li><...
Project Development Cycle(Contd....) <ul><li>Implementation Phase </li></ul><ul><li>Project Engineering </li></ul><ul><li>...
Project Development Cycle(Contd...) <ul><li>Operational Phase </li></ul><ul><li>Performance Review </li></ul><ul><li>Cover...
Generating Project Ideas <ul><li>Study Imports and exports </li></ul><ul><li>Study Available Skills </li></ul><ul><li>Make...
Project Rating Index Factor   Weight  Rating   Factor    (Numerical Scale)   Score Rating Index Decision Rule :  If Calcul...
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  1. 1. Project Management <ul><li>By </li></ul><ul><li>Dr. P.K. Gupta </li></ul>
  2. 2. What is a Project? <ul><li>An activity for satisfaction of need or desires </li></ul><ul><li>A flow of resources (energy) to achieve a specific objective </li></ul><ul><li>A conversion process(I-O) </li></ul>
  3. 3. PMI Definition <ul><li>A project is a one-shot, time limited, goal directed, major undertaking, requiring the commitment of varied skills and resources. </li></ul>
  4. 4. Project Defined <ul><li>a project is a one-time effort, non-repetitive in nature, undertaken in fulfilment of a specific objective, expected to be completed within a specified schedule and requiring the commitment of varied skills and resources </li></ul>
  5. 5. Special Characteristics of Projects <ul><li>Definite Objective </li></ul><ul><li>Uniqueness(unfamiliarity, one-time effort) </li></ul><ul><li>Commitment of varied skills and resources </li></ul><ul><li>A life cycle (specified schedule) </li></ul>
  6. 6. Projects & Strategy Projects are resource consuming sets of activities through which strategies are implemented and goals are pursued. Project deploy as well as contribute to the Organizational Strategy
  7. 7. Why to worry about capital expenditures (projects)? <ul><li>Irreversibility of investment </li></ul><ul><li>Huge Outlays </li></ul><ul><li>Long-term effects </li></ul><ul><li>Uncertain cost and revenues </li></ul><ul><li>Cause and effect relationship with the organizational mission, objectives and strategies </li></ul>
  8. 8. Projects and Business Models <ul><li>A clear business model is must for the success of a project. </li></ul><ul><li>Business model is a business concept put into practice. </li></ul><ul><li>The competition is not between the products or companies but between the business models </li></ul><ul><li>Therefore, in a competitive environment , Business Concept innovation is essential to imagine dramatically different business concepts or new ways of differentiating existing business concepts. </li></ul>
  9. 9. Why do projects fail? <ul><li>Dissonance between the organizational strategy and project goals </li></ul><ul><li>Lack of vision to view projects as being strategic </li></ul><ul><li>Poor resource coordination in project implementation </li></ul>
  10. 10. Why do projects fail? <ul><li>Projects fail because of the failure of the underlying assumptions </li></ul>
  11. 11. Identifying White-elephant Projects <ul><li>White-elephant projects usually have some glamorous appeal, which passes for real worth, thus blinding those involved as to their inherent unsoundness. </li></ul><ul><li>Often they are overambitious schemes which are too grandiose for the situation, projects which are too large for the market to they can realistically hope to serve, projects which are too fancy in their housing, their equipment, or their organisation. </li></ul><ul><li>Fortunately, the seriously unsound projects are not usually disguised. </li></ul>
  12. 12. Characteristics which make them fail (visible in informative stage) <ul><ul><ul><li>Unnecessarily risky </li></ul></ul></ul><ul><ul><ul><li>Weak /Unreliable financing </li></ul></ul></ul><ul><ul><ul><li>Rash / Inexperienced Management </li></ul></ul></ul><ul><ul><ul><li>Inadequate size </li></ul></ul></ul><ul><ul><ul><li>Uncertain market </li></ul></ul></ul><ul><ul><ul><li>Requiring consumers be induced to make a great change in their buying habits or tastes </li></ul></ul></ul><ul><ul><ul><li>Lack prospective cost-advantages </li></ul></ul></ul>
  13. 13. The Characteristics of Sound Projects <ul><ul><ul><li>They have a market , either home or abroad </li></ul></ul></ul><ul><ul><ul><li>They have a prospective advantage in production costs compared to foreign or domestic competitors </li></ul></ul></ul><ul><ul><ul><li>Because of above, they have a prospect of high commercial profitability to attract private lenders or investors.(and therefore financing problem is solved) </li></ul></ul></ul>
  14. 14. PROJECT DEVELOPMENT CYCLE <ul><li>Pre-investment Phase </li></ul><ul><li>Identification of Investment Opportunities </li></ul><ul><li>Pre-feasibility Study </li></ul><ul><li>Feasibility Study </li></ul><ul><li>Decision-making </li></ul>
  15. 15. Project Development Cycle(Contd....) <ul><li>Implementation Phase </li></ul><ul><li>Project Engineering </li></ul><ul><li>Negotiations and Contracting </li></ul><ul><li>Construction </li></ul><ul><li>Training </li></ul><ul><li>Plant Commissioning </li></ul>
  16. 16. Project Development Cycle(Contd...) <ul><li>Operational Phase </li></ul><ul><li>Performance Review </li></ul><ul><li>Covers the longest part of the life of the project </li></ul><ul><li>Provides basis for further capital budgeting decisions </li></ul>
  17. 17. Generating Project Ideas <ul><li>Study Imports and exports </li></ul><ul><li>Study Available Skills </li></ul><ul><li>Make Industry Studies </li></ul><ul><li>Apply Technology </li></ul><ul><li>Examine Inter-industry Relationships </li></ul><ul><li>Evaluate Development Plans </li></ul><ul><li>Review Old Projects </li></ul><ul><li>Observe Experience Elsewhere </li></ul><ul><li>Use Industry Lists </li></ul>
  18. 18. Project Rating Index Factor Weight Rating Factor (Numerical Scale) Score Rating Index Decision Rule : If Calculated Index > Pre-determined Value : Accept Else : Reject

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