2. 5 STEP PROJECT MANAGEMENT
PLANNING
IMPLEMENTATION
DEFINE
PLAN
ORGANIZE
CONTROL
State the
Problem
Identify
project
activities
Determine
Personnel
Needs
Define
Management
Style
Obtain
Client
Acceptance
Estimate
time and
cost
Sequence
Project
Activities
Recruit
Project
Manger
Recruit
Project Team
Establish
Control Tools
Install
Deliverables
Determine
Preliminary
Resources
Identify
Critical
Activities
Organize
Project Team
Review
Project
Schedule
Issue Final
Report
Identify
Assumptions
and Risks
Write
Project
Proposal
Assign Work
Packages
Issue Change
Orders
Conduct PostImplementation
Audit
Identify
Project
Goals
List the
Objectives
Project overview
WBS
Project network
Critical Path
Recruit Criteria
Define Work packages
Assign Work Packages
Prepare
Status Reports
CLOSE
Document the
Project
Variance Reports
Final Report
Status Reports
Audit Reports
Staff Allocation Reports
2
3. 1.EVERY PROJECT HAS ITS OWN BOUNDARIES AND LIMITS
2.PROJECT WILL FACE ROUGH WEATHER IN THE
BEGINNING
3.PROJECT WILL TAKE QUITE A LONG TIME TO ACQUIRES
ANY SEMBLANCE OF STABILITY
4.IT HAS TO LOOK FOR HELP FROM EXTERNAL
INTERVENTION
5.IF NOT, THEN THE WORK SYSTEM WILL DISINTEGRATE
6.THE SUPPORT WILL NOT BE AVAILABLE AT CRITICAL
MOMENTS
4. TYPES OF EXTERNAL INTERVENTION
1. PROJECT DIRECTION
2.PROJECT COORDINATION
3.PROCT CONTROL
5. CHARACTERISTICS
1.IT CARRIES A STAMP OF AUTHORITY
2.IT FORCE TO GET RESULT
3.IT NEEDS AT DIFFERENT PROPORTIONS AT DIFFERENT
PHASES OF PROJECT
4.THESE ARE THE ESSENCE OF PROJECT MANAGEMENT
6. WHAT IS PROJECT DIRECTION?
PROJECT DIRECTION REFERS TO THE USE OF AUTHORITY
TO CHANNELISE THE VARIOUS ACTIVITIES OF THE PROJECT
ON DESIRED LINES….
1. IT IS MAINLY CONCERNED WITH THE IMPLEMENTATION
PHASE OF THE PROJECT
2.WHEN SCHEDULES ARE AUTHORISED, THEY BECOME
WORKING DOCUMENTS
3.EXECUTIVE AGENCIES OR INDIVIDUALS WILL THEN
STRICTLY FOLLOW THE PLANS AND SCHEDULES
7. PROJECT INITIATION PERIOD
1.SCOPE OF WORK
2.SPECIFICATION OF RESULTS OF COMPLETED WORK
3.BASIS OF WORK
4.DIVISION OF WORK
5.SCHEDULE OF WORK
6.BUDGET OF WORK
7.SYSTEM AND PROCEDURE FOR WORK
8.COORDINATION OF WORK
8.AUTHORITY AND ACCOUNTABILITY OF WORK
9.CONTROL OF WORK
8. PROJECT KICK-OFF MEETING
1. COORDINATION OF THE PROJECT REQUIREMENT AND THAT
OF THE PARTICIPATING AGENCIES
2.ESTABLISHMENT OF DIRECTIVES AND CONTROL
3.TEAM BUILDING
4.COMMUNICATION
9. DIRECTION DURING PRODUCTION PHASE
1.DIRECTION IS PROVIDED ON A CASE TO CASE
BASIS THROUGH FORMAL DOCUMENT
2.DESIGN REVIEW MEETING
3.VALUE ENGINEERING REVIEW
10. DESIGN REVIEW MEETINGS
1.REVIEW MEETINGS PROVIDE A FORUM FOR
PARTICIPATIVE DECISION MAKING AND COMMUNICATION
OF DIRECTION
2.A DESIGN REVIEW MEETINGS ARE HELD TO CRITICALLY
EXAMINE AND AUTHORISE THE BASIC DESIGN WHICH HAS
TO TAKE OF ALL SUBSEQUENT WORK ON PROJECT
HARDWARE
3.SINCE THE BASIC DESIGN IS SO IMPORTANT FOR THE
PROJECT, A CRITICAL REVIEW BY TOP SPECIALISTS AND
APPROVAL FROM APPROPRIATE AUTHORITIES ARE
ESSENTIAL BEFORE IT IS ISSUED DOWN THE LINE FOR
IMPLEMENTATION
11. CONTINUED:
4.A DESIGN REVIEW MEETING CHECKS THE PROJECT
DESIGN FROM ALL ANGLES (FUNCTIONAL UTILITY, ENERGY
OPTIMISATION, HANDLING
MINIMISATION, CONSTRUCTABILITY, SAFETY, ENVIRONMEN
TAL IMPACTS AND ECONOMY)
5.THE RESULTANT EFFECT OF ANY GOOD OR BAD DESIGN
IS COST, THE DESIGN FINALLY TO BE RELEASED FOR
IMPLEMENTATION MUST BE COST EFFECTIVE
12. VALUE ENGINEERING REVIEW
1.A VALUE ENGINEERING REVIEW USES COST AS THE
BASIS OF REVIEW AND ENSURES THAT VALUE IS INCLUDED
IN DESIGN
2.VALUE OF AN ITEM, IN THIS CONTEXT WOULD MEAN THE
MINIMUM COST AT WHICH THE FUNCTION PROVIDED BY
THE ITEM UNDER REVIEW COULD BE OBTAINED FROM ANY
OTHER ITEM. THUS WHEN NON FUNCTIONAL COST IS
REMOVED FROM AN ITEM, ITS VALUE INCREASES
3.IN VALUE ENGINEERING REVIEW ONE WOULD COMPARE
THE HARDWARE COST OF AN ITEM WITH ITS VALUE
14. STAGES OF VALUE ENGINEERING
REVIEW
1.BASIC PACKAGE REVIEW
2.TENDER OR WORK PACKAGE REVIEW
3.POST CONTRACT ENGINEERING REVIEW
15. PURCHASE ORDERS AND WORK ORDERS
1.TECHNICAL DIRECTIONS
2.COMMERCIAL DIRECTION
3.MANAGERIAL DIRECTION
4.ADMINISTRATIVE DIRECTION
16. ONGOING DIRECTIONS
1.UNDERSTANDING THE DECISION ENVIRONMENT.
2.ESTABLISHING THE DECISION ALTERNATIVES.
3.EVALUATION OF ALTERNATIVES AND SELECTION.
4.COMMUNICATING THE DECISION .
5.CHECKING UP IF THE DECISION IS WORKING OR NOT.
17. COMMUNICATIONS MANAGEMENT
Develop the project communication plan
Stakeholder analysis
Information to be shared (to who, what, how, when, why)
Technology
Distribute information
Project databases, filing system, software / hardware
Report up, down and across the firm
17
20. COMMUNICATIONS MANAGEMENT TIPS
If you think you have communicated
enough…go back and do it again
Use different formats
Frequently use modes of communication that
allow you to “see the whites of their eyes”
20
21. Role of MIS in Project Management
Why
Do People Need Information?
Individuals
- Entertainment and
enlightenment
Businesses
- Decision making, problem
solving and control
22.
Information system allows managers to
make effective and timely decisions.
will supply the managers, information from
which to base their decision on.
These are known as Management
Information Systems (MIS).
23. MIS - DEFINITIONS
Definitions – vary in the literature
“…MIS is an integrated computer based usermachine system that provides information for
supporting operations and decision making
functions”
Awad (1988)
24. MIS DEFINED
“..It [MIS] is a system using formalised
procedures to provide management at all
levels in all functions with appropriate
information based on data from both internal
and external sources, to enable them to
make timely and effective decisions for
planning, directing, and controlling the
activities for which they are responsible..”
Lucey (1997)
25. MIS DEFINED
“..Organized approach to the study of information
needs of management at every level in making
operational, tactical, and strategic decisions. Its
objective is to design and implement manmachine procedures, processes, and routines
that provide suitably detailed reports in an
accurate, consistent, and timely manner..”
www.Businessdictionary.com (2009)
26. Terminology Confusion
MIS
= the study of information
technology in business settings
But,
MIS is also a term often used to
refer class of systems which support
operational and tactical decision making
27. Basic Requirements for a Project
Management Information System:
Each project header must be able to
update his project on a monthly basis.
The project leader must be able to
manually device the information needed to
measure the progress of the project.
The analysis reports must be then typed
up for distribution.
29. Components of MIS
Scheduled reports
Produced periodically, or on a schedule
(daily, weekly, monthly)
Key-indicator report
Summarizes the previous day’s critical activities
Typically available at the beginning of each day
Demand report
Gives certain information at a manager’s request
Exception report
Automatically produced when a situation is unusual or
requires management action
30. Optimum Project MIS may be described as follows:
The existing information system are reduced to three
elements
human resources
financial resources
material resources
Direct entry of data is via terminals with CRT’S
Individual reports may be generated for other than
project needs.
Information is formulated along with estimates supplied
by the project leader to display a current summary.
31.
Additional reports could be generated from this
information such as facilities scheduling , work
planning , manufacturing engineering etc…..
Project plans can be transferred by project
leaders to line management via a CRT.
The system will have the capability to access
central pertinent files.
The system will have the capability for data
correction at the original source, thus reducing
the labour required.
32. MIS Should be..
Flexible: for different ways of analysing
data, and evaluating information.
Range of skills and knowledge catered for.
Assist the operational process through
communication between staff.
Easy to extract the relevant information
i.e., it is presented in an appropriate way.
34. •
When do we say that the performance of
any project is good or not ?
The performance of a project is good
when it is completed based on time
constraints, specified budget and project
specifications.
Otherwise the project ends up with failure.
35. Some of the reasons for the poor
performance of a project are:
If it is abandoned at half the way.
If it is not producing a specified quality of a
product.
If it becomes sick soon after going in to the
commercial production.
36. PERFORMANCE INDICATORS:
The investor, project manager and also the
public must be given with some indications
about the management while the project is
still in progress.
37. Some of the performance indicators are:
Time over-run
Cost over-run
Project sickness
Productivity
Value
38. 1) TIME OVER-RUN:
This basically means not sticking to a pre-planned time schedule of
the project. In order to get the job cleared through the approving
authorities, a schedule may be fixed which can be far away from
realistic.
The vendors and contractors may just add to the confusion by
promising deliveries which can make anything possible on paper.
Besides, some subsequent modifications or changes have to be
made to suit the project requirements which in turn increases time
and cost.
2)COST OVER-RUN:
Anything done to a project including time over-run would be reflected
in the cost.
Cost estimates in a project are to be revised at various stages to
improve their accuracy.
Cost over-run is used to represent the variance between the original
cost and the final cost incurred.
40. 3)PROJECT SICKNESS:
An efficient project manager is the one who makes the best possible
use of resources for achieving the project objectives.
What ever the project manager does w.r.t the resources will be
reflected in the cost and what the project manager provides in return
to justify this cost is a plan which is to be called successful and must
provide a saleable output.
The ratio of this output to the cost incurred for putting up the plan
could be an indicator of a project management performance.
4)PRODUCTIVITY:
A productivity indicator reflects how the resources have been utilized
either for production of goods and services or for creation of facilities
for the same.
Productivity is mainly measured to ensure the profitability of the
plant and to ward of the sickness.
41. 5)VALUE:
Value in this context, indicates the quality of the
products or services that are the final outcome of a
project.
If the product or services do not meet customers
requirement, then the ideas such as time overrun, cost over-run, high productivity, all become
redundant.
PROGRESS CONTROL:
It requires a continuous monitoring during the
production phase.
There must be a right contractual stipulations
regarding warranties and guarantees.
42. PERFORMANCE PARAMETERS:
These are the parameters which are required to
be identified in a project.
• Some of the critical performance parameters are;
Raw materials
Power consumption per unit of production
Outcome etc….
How ever the design and specifications must be
made to meet these performance requirements.
Thus the critical performance parameters must be
tracked through all the stages of project execution
till the final performance guarantee confirms the
achievement of the performance.
43. COST OF A PROJECT
This includes the total amount spent
on all items associated with a project which
are supported by funds, investments etc..
44. The amount spent on the following
constitutes the project cost:
Land and site development
Building and civil works
Plant and machinery
Technical know-how & engineering fees
Pre-operative costs
Maintenance costs & others
45.
COST CONTROL
This involves the monitoring of costs,
recording information in different areas
and analyzing these massive quantities of
data – in order to take the corrective
action before it is too late.
46. Anything done to a project including time
& performance factors, will be reflected in
the cost - they are interrelated.
Hence, the cost control is of prime
importance in the success of a project.
If the project cost can be brought down
without compromising on the time and
performance parameters, then that would
indicate an excellent cost management.
47. It includes the following factors Cost estimation
When creating a budget for a job, project
management must be able to engage properly in
the process of cost estimating. This is a calculated
projection of the cost for the materials required by
the project. The materials considered in cost
estimating can be any resources required for the job
such as raw materials or employee wages. Too high
an estimate, and the bid could be lost to another
company.
48.
Cost accounting
“ The language of business “
it is the art of recording, classifying and
summarizing the transactions of money
and different events in a significant manner.
Maintenance of project ledgers
- showing WBS budget-line items
- expenditures & forecasts.
49.
Direct costs
The costs that are directly attributed to the
project work. These are also called
variable costs because their rate of
expenditure depends on the intensity of
the project activity.
If no work is done, then no direct costs.
50.
Indirect costs
-these are the costs that must be incurred
by the organization to provide
heat, light, rent, insurance, maintenance
costs and others. These costs do not vary
from day to day, hence they are called
Fixed costs, also known as Overhead
costs.
51.
Cost escalation
- increase in all costs above their original
estimate in case of national cost inflation
and increase in wages & salaries.
This is expressed as a percentage
and only significant in times of high
inflation and for projects planned to last for
several years.
52. COST CONTROL METHODS:- cost can be
controlled under the following stages of a
project (ex:construction project)
At zero date
- control estimate, budgeting & network
plan should be implemented. Time control
and hence cost control by budgetary
restrictions.
During detailed engg.
- the cost control estimates prepared
before zero date will soon overrun unless
design & engineering procedures are cont.
reviewed. It includes-
53. - Over all plot plan
- Building designs
-Specifications & drawings
During procurement phase : - competitive bidding is
the most common practice for procuring a technically
feasible item at lowest cost. In addition to this, following
steps are taken for cost control :
1.
2.
3.
4.
Vendor association in specification
Detailed scope and specifications
General conditions of contract (GCC)
Delivery in erectable sequence
54. During construction:- less scope for
cost reduction. However there are certain
items for cost control:
1. Extra items
2. Idle charge
3. Inventory costs
4. Cash flow planning
5. Cost of operating staff and administrative
expenses.
