Nature- Need for Project Management – types of projects – Project Management Knowledge areas and processes – Project skills – The role of Project Manager – Project Management Processes – Impact of Delays in Project Completions – Essential of Project Management Philosophy – Project Management Principles

1. BASICS OF PROJECT
MANAGEMENT
PROJECT MANAGEMENT AND FINANCE
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2. • Nature
• Need for Project Management
• Types of projects
• Project Management Knowledge areas and processes
• Project skills
• The role of Project Manager
• Project Management Processes
• Impact of Delays in Project Completions
• Essential of Project Management Philosophy
• Project Management Principles
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3. INTRODUCTION
• A farmer taking up crop cultivation
• A construction company constructing a bridge
• Indian Railways changing the meter gauge
railway track to broad gauge
• A company hiring fresh graduates
• A student pursuing MBA
• Movie
A project is not merely establishing an industry or constructing a
building. It is just something new, something unique, planned and
executed for good.
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4. Project is defined as a “planned set of interrelated tasks
to be executed over a fixed period and within certain cost
and other limitations”.
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5. Project management, is the “application of knowledge,
skills, tools, and techniques to project (execute) activities
to meet the project requirements”.
Example:
• Relief effort after a natural disaster,
• Expansion of sales into a new geographic market
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6. • A project is temporary in that it has a defined beginning
and end in time, and therefore defined scope and
resources.
• Project is unique in that it is not a routine operation, but a
specific set of operations designed to accomplish a singular
goal.
• So a project team often includes people who don’t usually
work together – sometimes from different organizations
and across multiple geographies.
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To…. How?
Provide vision and direction • identifies the aims and vision of the project and gives it purpose
and direction
• point of contact for the project
• decreases confusion and increases accuracy.
Increase efficiency • what order they should occur.
• ensures that they are completed efficiently.
Control scope • what has to be delivered and what work has to be done
• by regular monitoring and controlling.
Manage costs • Delivering on time and within budget are two constraints
• controls not only monetary costs but also the people resources and
equipment cost
Manage time • controlling the project schedule by examining milestones, key dates
and the critical path throughout the project life cycle

8. Project Characteristics
1. Fixed set of objectives
2. Tenure
3. Team work
4. Unique
5. Life cycle
6. Made to order
7. Single entity
8. Multi-skilled staff
9. Subcontracting
10.Risk and uncertainty
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9. TYPES OF PROJECT
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According
to complexity
• Easy
• Complicated
According to source
of capital
• Public
• Private
• Mixed
According to project
content
• Construction
• IT
• Business
• Service or product
production
According
to those involved:
• Departmental
• Internal
• Matriarchal
• External
According to
its objective
• Production
• Social
• Educational
• Community
• Research

10. Classification based on risk
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• totally new venture by a fresh entrepreneur
• exposed to very high risk due to lack of expertise
Greenfield project
• existing project goes for addition of product/capacity
• 1. Expansion project
• 2. Vertical integration project
• 3. Diversification project
Brown field project
• strategy used by businesses when they downsize the scope of their
business
• Firms may elect to sell, close, or spin-off astrategic business unit,
major operating division, or product line.
Divestment project
• Firms need to upgrade their technology
• need capital investments and are called modernization projectsModernization or
replacement project

11. PROJECT MANAGEMENT KNOWLEDGE AREAS AND
PROCESSES:
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• a process as “a set of
interrelated actions
and activities
performed to create a
pre-specified product,
service or result.”
• “project management
processes ensure the
effective flow of the
project throughout its
life cycle.”

12. PROJECT MANAGER SKILLS
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13. ROLES OF THE PROJECT MANAGER & PROJECT MANAGEMENT TEAM:
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IMPORTANT DUTIES AND ROLES OF A PROJECT MANAGER

14. PROJECT MANAGEMENT PROCESS:
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THE FIVE BASIC PROJECT
MANAGEMENT PROCESSES ARE AS
FOLLOWS:
• Initiating—a description of the
product of the project, initial
documentation of project objectives,
and assignment of a project manager
• Planning—a documented project
plan and documented updates to the
plan as the project progresses
• Executing—verifiably completed
project deliverables
• Controlling—periodic measurements
of progress vs. plan, corrective action
when needed, and identification of
when the project is done
• Closing-documented acceptance of
the results of the project

15. PROJECT MANAGEMENT PROCESS
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16. Each Project Management process can then be
described in terms of its:
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• Inputs—documents (e.g., a scope
statement) or documentable items
(e.g., task dependencies) that will be
acted upon
• Tools and techniques—mechanisms
(e.g., earned value computations)
applied to the inputs (e.g., task
results) to create the outputs (e.g., a
progress report)
•Outputs—documents or
documentable items that are the
result of the process

17. WHAT IS DELAY?
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• Project Delay is an unplanned
and unexpected deferment of a
project because of some event
or occurrence that impedes the
project’s commencement or
continuation.
• It is the length of time that
extends the project duration and
causes a disruption in the
delivery of project goals and
objectives.

18. IMPACT OF DELAYS IN PROJECT COMPLETIONS:
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• Create barriers to launch and further implementation of project activities.
• When projects are delayed, contractors, consultants and clients could put their public reputations at risk
• Disputes can lead to court cases for resolution especially when large penalties are at stake.
• When project delays are unexpected, they are uncontrollable and have rather a negative impact on project
activities and results.
• Extends the overall duration of project activities and entails an increase in project costs.
• It generates time-associated cost effects that increase resource consumption and require more time for reaching
project success.
• Delays can instigate negative effects such as increased costs, loss of productivity and revenue many lawsuits
between owners and contractors and contract termination.
In order to prevent the negative impact of project delays, it is reasonable to establish
delay allowance at the very beginning of a project. Delay allowance is the length of
time include in the project schedule in advance to cover unpredictable contingencies
and expected minor delays. It is a mechanism of increasing project safety through
preventing activity disruptions and creating time buffers.

19. CAUSES OF PROJECT DELAYS
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1.Clients’ related issues
• Insufficient funding
• Interference with project
performance
• Delay or non-payment for
Completed works
• Impractical allocation of
resources
• Wrong choice of Consultants
&
contractors
• Design alterations & change
orders
2.Contractor related issues
• Poor coordination of
subcontractors
• Inappropriate construction
methods
• Inadequate planning
• Inadequate experience
• Mistakes during construction
stage
• Incompetent site
management.
• Wrong choice of Bankers
3. Labour and
equipment
related issues
• Unskilled site
manpower
• Improper
equipment
selection &
Faulty
equipment
• Labour
disputes
4. Materials-
related issues
Poor quality
materials
Material
shortages
5. Consultant-
related issues
Inappropriate
design
Poor contract
management
Late identification
& resolution of
drawings &
specification errors
& omissions
Late preparation of
drawings and other
contract documents
Improper contract
packaging/delivery
strategy
Over inspection
Long waiting time
for
inspection &
testing.
Inappropriate
coordination of
information
6. Community
related issues
• Lack of
community
buy-in
• Delay or Non-
payment of
Compensation
• Youth unrest,
Militancy &
communal
crises
7. Contractual
relationship
related issues
• Lack of adequate
communication
between the
parties
• Major disputes &
negotiations
• Wrong
organizational
structure
linking to the
project
8. External issues
• Weather conditions
• Change in
government's
leadership &
policies.
• Natural disasters
(e.g. floods,
lightning strikes)
• Interference by
political
leaders

20. EFFECTS OF PROJECT DELAYS
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EFFECTS Description
Time overrun When the stipulated completion time is pushed forward, the project is said to
have experienced time overrun.
Budget overrun When a project is completed at a cost higher than what was budgeted, it is said
to experience a budget overrun.
Poor quality
completed project
As highlighted in the previous section inferior workmanship and/or inferior
quality materials, can lead to issues of project quality
Bad Public Relations When projects are delayed, contractors, consultants and clients could put their
public reputations at risk
Litigation Disputes can lead to court cases for resolution especially when large penalties
are at stake
Arbitration The cost and time related to the engagement of professional arbitrators
Disputes and claims Disputes and claims arise against for the losses incurred through delays
Total abandonment Delays in project execution could lead to total abandonment if issues leading to
the delays are not resolved timeously

21. How to Prevent Delays?
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• Plan/Analyze the requirements in
detail.
• Map available resources
• Perform training and knowledge
transfer
• Identify risks.
• Estimate and allocate
• Modularize work
• Escalate issues.

22. PROJECT TRIPLE CONSTRAINTS:
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23. PROJECT TRIPLE CONSTRAINTS:
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Cost:
• The financial constraints of a project, also known as the project budget.
• There are the resources involved, from materials to people, which include labor costs.
Scope:
• The tasks required to fulfill the project’s goals.
• When managing scope its critical that you prioritize your tasks, enabling you to plan and
assign resources effectively.
Time:
• The schedule for the project to reach completion.
• A Work Breakdown Structure (WBS) is used to take the large project goal and break it down into a series
of more manageable tasks. These tasks are then prioritized, dependencies are linked, and then placed on a
timeline.
• A Gantt chart is one way to visualize the project schedule, with each task a point on that timeline,
with task dependencies linked, and durations determined.

24. Example
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Work Breakdown Structure ( WBS ) Gantt Chart

25. ESSENTIAL OF PROJECT MANAGEMENT
PHILOSOPHY
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Project management is the art and science of making things happen.
• The term philosophy is a bit misleading here.
• A philosophy is how to live one’s life. It does not apply to project management.
• Project management is first an art. There is no one correct way to accomplish any project.
• It often call project management the art of creating order out of chaos.
• This is an art, because not all of the PMBOK applies.
• Then you add in the debate between agile project management and traditional task
based project management.
• It will be interesting to see the scientific research in this debate. Therefore,
the philosophy of project management is getting things to done.

26. THE SIX PRINCIPLES OF PROJECT MANAGEMENT
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Principle 1: Vision and Mission
• In order to be successfully
executed, every project or
initiative should begin with
the end in mind.
Principle 2: Business
Objectives
• it's important to specifically
quantify the amount of
improvement that is
expected, instead of being
vague.
Principle 3: Standards of
Engagement
• What will be the frequency of
meetings? What are the meeting
ground rules? Who is the project
owner? Who is designated to
take notes, and distribute project
meeting minutes and action
steps?
Principle 4: Intervention and
Execution Strategy
• using a gap analysis process to
determine the most suited
intervention (solution) to
resolve the issue you are
working on.
• Ex. Root cause analysis
Principle 5: Organisational
Alignment
• To ensure the success and
sustainability of the new
initiative or process brought
on by this project, everyone it
will directly impact must be
onboard.
Principle 6: Measurement and
Accountability
• A scorecard is an excellent
resource for holding employees,
teams, and leaders accountable
for the implementation,
refinement, and sustainability of
the new initiative or project

27. CASE STUDY
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https://www.youtube.com/watch?v=GBQ7T7m-Doo
A basic project management strategy by a company and the
experience of the students who visited the Company and
analysed how the Project is managed.

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