This document provides an introduction to project management concepts. It defines a project as a specific, finite activity that produces an observable and measurable result under certain preset requirements. Project management is defined as an approach to management of work within the constraints of time, cost, and performance requirements. The key objectives of a project are scope, performance, time and cost. Projects can be classified based on duration, investment amount, ownership, and risk. The project life cycle consists of initiation, planning, execution/monitoring/control, and closure phases. Effort levels are lowest at the start and end of a project and highest during the intermediate phases.

1. Chapter-01
INTRODUCTION
Outline Syllabus
Meaning and types of projects - Forces fostering project management -
objectives of project-project development life cycle.
1.01 MEANING / DEFINITION OF PROJECT
The term "Project" has a wider meaning. A project is accomplished by performing a set of
activities. For example, construction of a house is a project. Some of the important definitions of
project are given below:
According to Harison, “A project can be defined as a non-routine, non-repetitive, one-off
undertaking, normally with discrete time, financial and technical performance goals.”
Project Management institute, USA defines project as, “a system involving the co-
ordination of a number of separate department entities through out the organization and which
must be completed within prescribed schedules and time constraints.”
According to the Encyclopedia of Management, “Project is 'an organized unit dedicated to
the attainment of goal—the successful completion of a development project on time, within
budget, in conformance with pre-determined program specifications.”
According to Little & Mirrless, “A project is any scheme or part of a scheme for investing
resources which can be reasonably analysed and evaluated as an independent unit.”
From the above definitions we can define a project as a specific, finite activity that produces an
observable and measurable result under certain preset requirements.
How would you define 'project'? BBA (Professional) 2007
What is meant by the term "project"? BBA (Professional) 2010
1.02 PROJECT MANAGEMENT
Project management is a methodical approach to planning and guiding project processes from
start to finish. It is the method of planning the plan. It starts from project definitions and ends
with goal achievement.
Project Management institute, USA defines project as, “Project Management is the process
and activity of planning, organizing, motivating, and controlling resources, procedures and
protocols to achieve specific goals in scientific or daily problems.”
PMBOK defines project management as, “the application of knowledge, skill, tool and

2. Chapter1: Introduction
techniques to project activities in order to meet stakeholder's needs and expectations from a
project.”
Bridge group defines it as, “the methods and disciplines used to define goals, plan and
monitor tasks and resources, identify and resolve issues, and control costs and budgets for a
specific project.”
According to M.R. Gupta, “Project managements can be defined as an art of managing new
challenges coming frequently and breaking the whole challenge into smaller, comfortable
activities to accomplish them in an effective and efficient way.”
In conclusion we can say that project management is an approach to management of work within
the constraints of time, cost, and performance requirements. This definition highlights the
objectives, cost, time and performance in terms of scope and quality.
What do you mean by Project management? Or, Define project management.
Or, How would you define the term Project and Project Management?
BBA (Professional) 2011, 2012, 2014
1.03 TRIPLE CONSTRAINTS
The triple constraint of project management describes the interdependency between the three
cornerstones of a project:
1. Scope: all the work we have to do in order to create the clearly specified product.
2. Schedule: the time we need in order to create that product.
3. Budget: the total amount of money we need in order to create that product.
Applying common sense, it seems obvious that changing one of the three cornerstones implies a
change of the other two.
Explain the term 'triple constraints'.
BBA (Professional) 2014
1.04 TYPES OF PROJECTS
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3. Chapter1: Introduction
Projects are and can be classified on the basis of duration, quantum of investment and the risk
involved.
A. Classification based on duration: It can be long term, medium term and short term. Long-
term projects have a life of more than 10 years, whereas mid-term projects have a life of 5 to 10
years. Short-term projects last only for less than 5 years.
B. Classification based on investments: It is based on how much initial investment is needed to
start the project. In India, investment outlay of above ? 20 crore is considered high investment,
whereas an investment outlay between ? 5 crore to ? 20 crore is considered medium sized
industry. And investment below ? 5 crore is considered low investment industry. Industry with
initial outlay below 7 50 lac is considered cottage Industry.
C. Classification based on ownership: A project can be owned by government, public sector,
corporate, cooperative, partnership firm or proprietorship firm.
D. Classification based on risk: This is the most commonly used basis of project classification.
Projects are basically classified as greenfield project, brownfield project, divestment project and
modernization or replacement project. The classifications and sub-classifications on the basis of
risk are depicted in the following figure.
1. Greenfield Project: Greenfield project is a totally new venture by a fresh entrepreneur /
promoter. It is also known as grass-roots project.
2. Brownfield Projects: In brown field projects, an existing promoter company or existing
project goes for addition of product/capacity. It is of three types.
(i) Expansion Project: In expansion project, there is increase in the capacity of existing plant
without any other change.
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4. Chapter1: Introduction
(ii) Vertical Integration Project: The degree to which a firm owns its upstream suppliers and
downstream customers is called vertical integration. It is of two types.
a. Forward integration project: Downstream expansion is called forward integration. The
product of existing industry becomes raw material for the proposed project, i.e. a steel industry
moves for manufacturing steel pipes.
b. Backward integration project: Upstream expansion is called backward integration. The raw
material needed for the existing industry is proposed to be manufactured by a new project, i.e. a
steel pipe industry plans to manufacture its raw material, steel itself.
(iii) Diversification Project: Financial synergy may be obtained by combining two firms: one
with better financial resources but poor technical capabilities and another firm with strong
technical capabilities but poor financial resources. Firms also try to obtain certainty in businesses
by combining two or more businesses with seasonal or cyclic demand factors such as cotton
industries (October to April) and wheat floor mill (April to September). It is of two types.
(a) Concentric diversification project: Concentric diversification occurs when a firm adds
related products or markets. The goal of such diversification is to achieve complete range of
products. This allows an organization to achieve synergy.
(b) Conglomerate diversification: Conglomerate diversification occurs when a firm diversifies
into areas that are unrelated to its current line of business. Synergy may result through the
application of management expertise or financial resources, but the primary purpose of
conglomerate diversification is to reduce the risk.
3. Divestment Project: Divestment project is another important strategy which involves
retrenchment of some or all of the activities in a given business of the firm or sells out some of
the businesses as such. It involves redefining of business. There are various causes for a company
going for divestment:
4. Modernization/Replacement Project: In recent times, technology up gradation has been very
rapid. Only those organizations can survive which cope up with the ongoing technological
changes. Firms need to upgrade their technology. Such projects up gradation of technology may
need capital investments and are called modernization projects.
1.07 CREATE A NEW PRODUCT OR SERVICE
Project Management determines what work will be completed during the project lifecycle. This
includes identifying the work that won’t be included in the current round of product/service
development. During the planning process, outputs are created to capture and define the work
How will you classify the projects? or
Discuss the classification of project. or
Show a diagram of different categories of project. or
Explain the common types of project. BBA (Professional) 2010
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5. Chapter1: Introduction
that needs to be completed. The controlling and monitoring process is concerned with
managing scope creep , documenting, tracking, and approving/disapproving project changes.
Finally, the closing process includes an audit of project deliverables and assesses the outcomes
against the original plan.
Scope is about product scope and project scope. Project scope includes business requirements,
project requirements and delivery requirements. Product scope includes technological
requirements, security requirements and performance requirements. So we can say that-
"Project Management is a temporary endeavor undertaken to create a new product or
service."
1.05 FORCES FACTORING PROJECT MANAGEMENT
There are 10 the forces which factor project management. The forces which factor project
management are given below:
There are a lot of tips, resources, and guidelines on project management. However, one of the
least discussed topics involves project failure. Very few project managers or companies want to
admit their failure. Yet, it is very rampant especially in ill-defined projects. That’s the reason why
it is important to evaluate all the possible challenges even at the very start. It lets the project
manager, the team members, and the client mitigate risks associated with the work.
In this article, we’ll identify the 10 main causes of project failure. Knowing about these helps you
become more prepared for the tasks ahead:
1. Planning and/or inadequate process: Planning is central to the success of a project. It is
important to define what constitutes project success or failure at the earliest stage of the
process. It is also essential to drill down the big picture to smaller tasks.
2. Inefficient way to document and track progress: This is an oversight on the part of the
project manager. Tracking milestones is a crucial way to see if expectations are being met.
Documentation and tracking also lets the manager identify which areas require more resources
to be completed on time.
3. Poor leadership at any level: The “leader” is usually identified as the project manager.
However, the management-level executive also has a responsibility of ensuring the project’s
success. He/she should work together with the manager to ensure that the company’s exact
requirements are understood.
4. Failure to set expectations and manage them: in working in a team setting, it is critical that
you’re able to manage people. If and when expectations are not met, there should be clearly-
defined consequences. The task should then be prioritized and possibly reassigned to a more
competent individual.
"Project Management is a temporary endeavor undertaken to create a new
product or service"- Evaluate this statement. BBA (Professional) 2013
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6. Chapter1: Introduction
5. Inadequately-trained project managers: The project manager is taking on a heavy
responsibility. It is important to assign management roles only to individuals who have the
capabilities to meet requirements. In some cases, poorly-trained managers are assigned to
complex projects; this is a recipe for failure.
6. Inaccurate cost estimation: There are instances when the cost of an undertaking is grossly
underestimated. When it runs out of resources, the project cannot be completed. This can be
mitigated when the lack of resources is identified early by the project manager.
7. Lack of communication at any level: Communication between the management executive
and the project manager, and between the latter and the team members are always important.
Everyone should feel free to come forward to state their concern or give suggestions.
8. Culture or ethical misalignment: The culture of the company must prize competence, pro-
activeness, and professionalism. If it doesn’t, the team members may not have the motivation
to do their best. In essence, everyone involved must be concerned about the success of their
undertaking.
9. Competing priorities: When a company’s resources are stretched, there will be competing
priorities in terms of manpower and financing. Having good cost estimation at the start will
eliminate this problem.
10. Disregard of project warning signs: when a project is on the verge of failing, there will
always be warning signs. Taking action immediately can save the project. Otherwise, the
whole endeavor can just go down the drain.
1.06 OBJECTIVES OF PROJECT
There are four major objectives of a project / project management:
1 Scope
2 Performance
3 Time
4 Cost
1. Scope: In many sports, there is a clear boundary. Cricket has well-defined boundaries;
badminton players can just play within the court boundaries and so can tennis players. The
boundary of a project is called the scope of the project. Any project remains undefined without its
scope being defined. Scope means what arc the expectations from you as a project manager and
your team. There may be enhanced scope being asked for during the implementation phase of any
project. Shortage of skills, funds or time may lead to reduced scope of any project.
Describe the forces which factor project management. BBA (Professional) 2012
Explain the forces fostering the project management. BBA (Professional) 2013
6
OOBJECTIVES OF PROJECT

7. Chapter1: Introduction
2. Performance: A project is always expected to have a well-defined performance level. If a
project is unable to adhere to the desired performance of a customer, it is certainly an
unsuccessful project.
3. Time: As mentioned earlier, there is always a fixed tenure of any project. There is always an
end to a project. A successful project is the one which is completed within the time limits
perceived during the planning. As cost is dependent on the time (fixed cost), time management
becomes a crucial activity of project management. There are so many tools and techniques which
can be used to manage time in a project.
4. Cost: It is dependent on all the above objectives. Mathematically, we can write as
Cost = f (P,T,S)
Therefore, cost is a function of performance, time and scope. If any of the above increases, it is
surely going to increase the cost of the project. It is generally seen that nearly all government
projects have cost overruns, the major reason for this being the time overrun.
1.07 PROJECT DEVELOPMENT LIFE CYCLE
Like every living organism, products, technologies and projects have a fixed tenure. Any project
goes through various phases during its life cycle. Some of the important definitions of project life
cycle are given below.
According to Mark Hazleton, “The Project Life Cycle refers to a logical sequence of
activities to accomplish the project’s goals or objectives.”
According to project management department of the University of Akron, “The Project
Life Cycle refers to a series of activities which are necessary to fulfill project goals or
objectives.”
According to M.R. Gupta, “A project has a beginning and an end and passes through several
phases of development known as life cycle phases.”
Every project has certain phases of development. A clear understanding of these phases allows
managers and executives to maintain control of the project more efficiently. The project life cycle
defines the phases that connect the project from the beginning to its end. The phases are described
differently by different authorities, but the generic phases remain the same and are
1. Project initiation
2. Project planning
3. Project execution, monitoring and control
4. Project closure
The schematic representation of a project life is shown in the following life of cycle.
Discuss the objective of project. Or,
Explain in brief the objectives of project. BBA (Professional) 2010
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8. Chapter1: Introduction
A schematic representation of a project life cycle.
1.08 PROJECT LIFE CYCLE DIAGRAM WITH EFFORT LEVEL
Every project has certain phases of development. A clear understanding of these phases allows
managers and executives to maintain control of the project more efficiently. The project life cycle
defines the phases that connect the project from the beginning to its end. The phases are described
differently by different authorities, but the generic phases remain the same and are
1. Project initiation
2. Project planning
3. Project execution, monitoring and control
4. Project closure
The phases of a project life cycle are generally sequential. The cost, staffing and resources
required are low at the start, peak during the intermediate phases and taper off as the project
draws to a conclusion, as illustrated in the following figure.
What do you mean by project life cycle?
Define project life cycle with diagram. BBA (Professional) 2007, 2008
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9. Chapter1: Introduction
The level of uncertainty is highest at the beginning of a project and it can be influenced by the
stakeholders. The cost of making changes is also low at the beginning. As the project progresses,
the risk increases and the influence of the stakeholders also decreases. The cost of making
changes at later stages increases. This is shown in the following figure.
Stakeholders influence over time.
The activities associated with each phase of the project life cycle are discussed in the following
paragraphs.
1. Project Initiation: The key question during this phase is what will be covered by the project.
It invokes developing project proposals and selecting a project. Once the project is selected, other
typical activities of this phase are:
1. Slate the problem
2. Establish overall goals
3. Define objectives.
4. Identify success criteria.
5. List assumptions, risks and obstacles.
6. Produce a project definition statement.
2. Project Planning: The plan provides answers to what, where, when, who and how issues. The
typical activities of this phase are:
1. Identify project activities.
2. Estimate activity duration.
3. Develop a schedule.
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10. Chapter1: Introduction
4. Determine resource requirements.
5. Assign tasks and responsibilities.
6. Draw a project network/Gantt chart.
3. Project Execution, Monitoring and Control: The key tasks of this phase arc to organize
people, allocate resources and schedule activities Typical activities of this phase include:
1. Organize the project team.
2. Develop a work breakdown structure.
3. Schedule and document work.
4. Level resources.
5. Establish management control and information systems so that actual progress can be
measured vis-a-vis planned progress.
6. Initiate corrective measures to reduce variations
A good work breakdown structure will ensure that even activity has a well-defined measurable
output, a definite beginning and a definite end, and independent work assignment, and the cost
and lime taken for the deliverable arc easy to determine.
4. Project Closure: A project has a definite beginning and a definite end. Once the project is
completed, it must be closed. The key tasks during this phase arc to evaluate what was done and
to compile information for use in future projects. The main activities of this phase are:
1. Produce project deliverables.
2. Obtain customer acceptance.
3. Complete project documentation.
4. Issue project final report.
On completion, the project is handed over to the customer or sponsor for operations.
1.09 THE IMPORTANT FACTS OF PROJECT ANALYSIS
The important facts of project analysis are as follows
1. Market analysis of a project
2. Technical analysis of a project
3. Financial analysis of a project
4. Economic analysis of a project
5. Ecological analysis of a project
1. Market analysis: Market analysis is associated primarily with two questions:
o What would be the collective demand of the planned product / service in future?
o What would be the market share of the project under evaluation?
To answer the above questions, the market analyst needs a broad variety of information and
suitable forecasting methods.
Explain the project management process briefly.
Explain the project life cycle diagram with its effort level.
BBA (Professional) 2007, 2008
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11. Chapter1: Introduction
2. Technical analysis: Examination of the technical and engineering characteristics of a project
needs to be done repeatedly when a project is made. Technical analysis seek out to decide
whether the fundamentals for the successful commissioning of the project has been considered
and reasonably good options have been made with respect to location, size, process etc.
3. Financial analysis: Financial analysis tries to ascertain whether the planned project will be
financially feasible in the sense of being able to meet the saddle of servicing debt and whether the
planned project will convince the return expectations of those who provide the capital. Cost,
profitability, financing, break-even point, cash flow, level of risk and financial position are the
feature that have to be looked into while conditioning financial appraisal.
4. Economic analysis: Economic analysis is also referred to as social cost benefit analysis and is
concerned with evaluating a project from the larger social point of view. In such a judgement the
focus is on the social costs and benefits of a project which may usually be different from its
economic costs and benefits.
5. Ecological analysis: In recent years, environmental concerns have assumed a great deal of
importance – and rightly so. Ecological analysis should be done particularly for major projects
which have significant ecological inference like plants and irrigation schemes, and environmental
– polluting industries like bulk drugs, chemicals and leather processing.
1.10 STAKEHOLDERS OF PROJECT
PROJECT STAKEHOLDERS
Project stakeholders are entities that have an interest in a given project. A stakeholder is
anybody who can affect or is affected by an organization, strategy or project. They can be internal
or external and they can be at senior or junior levels. Some definitions suggest that stakeholders
are those who have the power to impact an organization or project in some way.
PROJECT STAKEHOLDERS
Project stakeholders are individuals and organizations that are actively involved in the project, or
whose interests may be affected as a result of project execution or project completion. They may
also exert influence over the project’s objectives and outcomes. The project management team
must identify the stakeholders, determine their requirements and expectations, and, to the extent
possible, manage their influence in relation to the requirements to ensure a successful project.
IMPORTANT STAKEHOLDERS OF PROJECT
The following are examples of project stakeholders:
 Project leader
 Project team members
 Upper management
What are the important facts about project analysis? BBA (Professional) 2009
Define technical analysis. BBA (Professional) 2007
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12. Chapter1: Introduction
 Project customer
 Resource Managers
 Line Managers
 Product user group
 Project testers
 Any group impacted by the project as it progresses
 Any group impacted by the project when it is completed
 Subcontractors to the project
 Consultants to the project
1.11 FACTORS FOR CHOOSING TECHNOLOGY
Following are 13 factors in project management for choosing technology. Keep in mind that a
poor selection will yield a poor result.
1. Financial stability
2. Business experience
3. Management depth and strength
4. Reputation
5. Strategic direction
6. Technology
7. Global Capability
8. Commitment to continuous improvement
9. Growth potential
10 Security
11. Chemistry and compatibility
12. Ethics
13. Cost
1. Financial stability. Though it might feel awkward to question a candidate about its financial
stability, it is an essential part of the due diligence process. For one thing, you want assurances
that the provider will be around for the long term. For another, if you are signing a sizable
contract, you’ll need to ascertain that the provider has adequate financial resources to provide the
support you require.
2. Business experience. How much experience does the candidate have in providing logistics
technology services in general? How about in your particular industry? Finding a partner that
already knows something about your industry shortens the learning curve.
Define stakeholders.
Define project stakeholders.
Who are the important Stakeholders of project?
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13. Chapter1: Introduction
3. Management depth and strength. When you sign an outsourcing agreement, you’re not just
purchasing a service; presumably you’re also purchasing expertise. Make it a point to check out
the people at the top.
4. Reputation. Seek out some of the provider’s clients and talk to them about their experience
with the company. One question to ask: Does the provider simply do what it’s told or does it
constantly seek out ways to improve its capabilities and service to clients?
5. Strategic direction. Just as your company should have a business strategy, so should the
technology provider. Surprisingly, many do not – and a large percentage of those that do seem to
have a planning horizon of one afternoon! You might argue that the provider’s strategy should be
the same as the client’s, and that’s true to a point. But a well-managed service firm should have
its own goals and objectives as well. It should also have commitment and direction.
6. Technology. There’s no substitute for a careful, in-depth evaluation of the provider’s products
and current operations. Assign a qualified person or team to assess the quality and efficiency of
the candidate’s technology and services. Don’t accept any excuses here. State-of-the-art
technology such as blade server and storage area network capacity and 24/7 worldwide
accessibility will be critical.
7. Global Capability. Can the candidate meet all of your global needs either by itself or through
existing alliances? Be careful on this one. It’s not enough to be able to locate China on the map!
8. Commitment to continuous improvement. Is the provider committed to ongoing
performance enhancement? Does it have a formal procedure for continuous improvement?
9. Growth potential. If, like most companies, you anticipate growth in sales volumes, product
lines or markets, you need a partner who will be able to keep up. Make sure the service provider
is in a position to support your growth.
10 Security. The events of Sept. 11, 2001, awoke Americans to the realization that security is
more than a theoretical threat. Today, it’s essential to secure your technology against not only
compromise or interruption, but also against infiltration by strangers. Make sure the candidate
has backup systems and the latest security protection methods.
11. Chemistry and compatibility. Chemistry isn’t just a factor in picking a spouse. It’s also
something to consider when choosing a software partner. Follow your instincts and heed your
intuition. If you have concerns about personal chemistry and compatibility at the outset, think
twice about going ahead with the deal. The situation is unlikely to improve over time.
12. Ethics. If we’ve learned one thing from Enron and Bernie Madoff, it’s this: You need to be
extremely careful about whom you deal with. Ask candidates about their codes of ethics.
Though only the larger providers are likely to have formal ethics policies, even the smaller
players should at least have some kind of code of ethics for their employees. But keep in mind
that a written policy is no guarantee of ethical conduct. In the words of Mason Cooley, “Reading
about ethics is about as likely to improve one’s behavior as reading about sports is to make one
into an athlete.”
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14. Chapter1: Introduction
13. Cost. Though price need not necessarily be the least important of your selection criteria,
neither should it be the foremost consideration. The manager who selects a provider based solely
on cost has committed to a technology strategy that has little chance of success. Ideally, cost
should be a factor only in deciding among candidates that meet all the other criteria.
1.12 PRE-REQUISITES FOR SUCCESSFUL PROJECT IMPLEMENTATION
PROJECT IMPLEMENTATION
Project implementation (or project execution) is the phase where visions and plans become
reality. This is the logical conclusion, after evaluating, deciding, visioning, planning, applying for
funds and finding the financial resources of a project.
PRE-REQUISITES FOR SUCCESSFUL PROJECT IMPLEMENTATION
Effective project steering has the following prerequisites:
• Clear description of the project's scope
• Clear project processing targets
• Precisely defined project variables
• Consistent support of the project manager by the management
• Project manager and project team's skills appropriate to the tasks at hand
• Practical use of material
• Exact and comprehensive monitoring
• As much detailed planning as possible
1.13 STARTING OF A PROJECT
The nature of the implementation processes will depend on the type and size of the project.
Scope, time, cost, risk, quality, project organization, human resources, communications and
procurement must be managed.
One of the characteristics of a project is that there is a definite starts and end date. There is no
universally recommended standard for either date. In many respects, it depends on what the
implication of the decision is. We can consider some of the possible options for the start and end
date and see what you think makes most sense. The following options can be considered when
determining the project start date.
1. When the idea is generated: Some companies seriously consider this option. The definition
you choose can depend on what the implication is and some companies try to focus on the time
between when an idea is generated and when the idea is fulfilled though a project. Their concern
is that there is too much time to implement good ideas. Tracking a project from the time the
Mention the factors that have a bearing on the choice of technology. How would you
evaluate the appropriateness of a technology? BBA (Professional) 2013
What do you mean by project implementation? Discuss the prerequisites for successf
ul project implementation. BBA (Professional) 2009
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15. Chapter1: Introduction
original idea was surfaced provides visibility on this total length of time. Unfortunately, it is very
difficult to track exactly when an idea surfaced and there are many variables that might cause
projects to be delayed while still in the idea stage.
2. When a budget is approved: This definition is a little more concrete than the prior idea. In
this definition, an idea has been generated and has made it far enough along that a cost/benefit
statement has been prepared. The project has also made it through the prioritization process and
an actual budget has been approved. Keep in mind that the budget may have been approved
during the prior year's business planning process. The actual work may not start until the
following year. Therefore, this definition again seems to start the clock too early.
3. When a project manager is assigned: This one is more common. It's hard to say that a project
has started before a project manager is assigned. When the project manager is assigned, the
project planning and definition begins and the meat of the project starts.
4. When the project charter is approved: In some organizations, the project officially starts
when the customer approves the Project Charter document. Some companies require an approved
Project Charter and schedule before the project team can be allocated. They do this to ensure that
the upfront agreement is in place before project work begins.
5. When the project kickoff meeting is held: Using this definition, the planning and definition
work is considered to be "pre-project" work. All projects start with a formal kickoff meeting
between the client and project team. When the kickoff meeting is held, the planning has been
completed, the client has approved starting the work, and the project team has been allocated. The
kickoff meeting is the time to tell everyone that the project is ready to begin.
1.14 PROBLEMS AFFECTING PROJECT MANAGEMENT
One of the most common issues facing companies today is that they concentrate their
management efforts on executing individual projects, but fail to understand the impact of these on
the wider business. The result is a sub-optimal performance and lower returns for the business as
a whole. The typical challenges facing business today when managing projects include:
1. Misalignment between projects and their business objectives: The purpose of a project is
to advance one or more business objectives. Most projects start out closely aligned with these
objectives, but gaps inevitably appear. Projects drift and business objectives change and
evolve. Without redirection, projects and deliverables end up failing to meet expectations.
2. Late or delayed projects: Late projects wreak havoc, delaying the time at which a company
can start reaping business benefits, thwarting precise payback period calculations and
disrupting the long term return on investment.
3. Dependency conflicts: Most projects are interrelated, sharing people, equipment, resources
and deliverables. These dependencies mean that a single project delay has a significant ripple
effect on related projects, disrupting schedules, causing resource conflicts and even triggering
expensive contingencies, in order to minimise risks.
In which stage of project life cycle does implementation start?
BBA (Professional) 2008
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16. Chapter1: Introduction
4. Execution difficulties: Problematic execution wastes resources, time and opportunities,
diverts management attention and hinders project delivery.
5. Overlapping and redundant projects: Overlapping projects are responsible for major
inefficiencies and wasted budgets, time and resources. At their worst, they undermine each
other’s progress and potential benefits. Redundant and duplicative projects are also
unprofitable, increasing costs, prolonging schedules and diverting resources from more
deserving projects.
6. Resource conflicts: Companies rarely have sufficient resources to staff all projects
concurrently. As such, projects compete against each other for resources, and people are often
assigned to several projects at the same time. Those with special expertise of scarce skills
may be in high demand, causing bottlenecks.
7. Unrealised business value: A project is a means to an end. Ultimately, every project
generates deliverables that the company uses to derive business value. When those
deliverables arrive late or are incomplete, the business loses opportunities – whether to earn
revenues, acquire customers or perhaps fix a problem.
8. Diffused decision making: Many executives are unable to obtain the right information at the
right time to effectively understand the present position of the business in order to
communicate unwelcome surprises and/or communicate potential opportunities before the
competition.
9. No accountability: Failure to continuously monitor and communicate project milestones in
real time, and budget performance, dilutes project accountability and responsibility.
10. Fragmentation: Fragmented planning and resource processes and tolls lead to an inability to
systematically communicate and fine tune multiple project scenarios, resulting in regular
unforeseen slippages and problems.
Evaluate the problems affecting project management.
BBA (Professional) 2014
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