Project management is the application of processes, skills, tools, and techniques to meet project requirements. A project is a temporary endeavor undertaken to create a unique product or service. There are four phases in a project life cycle: conception and selection, planning and scheduling, implementation, monitoring and control, and evaluation and termination. Key aspects of project management include managing project scope, communication, and stakeholders. The field of project management has grown over time due to increasing project complexity. Managing international projects presents additional challenges due to differing business environments, cultures, and political/economic conditions across countries.

1. 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

2. 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?

3. 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”.

4. • 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?

5. 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)

6. Project Parameters
Some common constraints that influence a
project are:
1. Scope
2. Quality
3. Cost
4. Time
5. Resources

7. 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

8. The Scope Triangle
Project Scope and Quality
Resource
Availability
C
A
Time
B Cost

9. Project Success or Failure formula
S = Wi ri
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

10. 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

11. 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.

12. Shenhar(1996) has proposed the following project classification dimensions.
Shenhar Classification :
Source : http://www.maxwideman.com/papers/improvingpm/fig2.gif

13. 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.

14. 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.

15. 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

16. 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

17. 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.

18. 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.

19. • 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….

20. 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”.

21. 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

22. 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.

23. • 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

24. 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.

25. • 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.

26. 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.

27. 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.

28. 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

29. 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.

30. 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.

31. 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.

32. 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

33. 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.

34. 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.

35. 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

36. Thank You