Dr.

Arun Maity
Associate Professor
BITS OFF- CAMPUS CENTRE
KOLKATA

INTRODUCTION TO PROJECT
MANAGEMENT
EVOLUTION AND APPLICATION
PROJECT
PROJECT MANAGEMENT
NEED

AND
IMPORTANCE
OF
PROJECT
MANAGEMENT
PROJECT LIFE CYCLE
PROJECT MANAGER
INTERPERSONAL AND DECISION MAKING SKILLS
PROJECT INTEGRATION

EVOLUTION AND APPLICATION

DEVELOPED

IN THE LATE 1950s TO AID

AND SCHEDULING OF LARGE

PLANNING
PROJECTS
CONSTRUCTION INDUSTRY
U.S. DEPARTMENT OF DEFENSE
AUTOMAKERS TOYOTA, NISSAN, BMW
INFORMATION TECHNOLOGY
STEEL INDUSTRY
FERTILISER INDUSTRY

PROJECT
A PROJECT IS A COMPLEX , NON ROUTINE, ONE-TIME

EFFORT LIMITED BY TIME, BUDGET, RESOURCES AND

PERFORMANCE SPECIFICATIONS DESIGNED TO MEET
CUSTOMERS NEEDS
A PROJECT CONSISTS OF SERIES OF ACTIVITIES AND
TASKS THAT
HAVE

A SPECIFIC OBJECTIVE TO BE COMPLETED

WITHIN CERTAIN SPECIFICATIONS
HAVE DEFINITE START AND END DATES
HAVE FUNDING LIMITS
CONSUME RESOURCES
MEET AND EXCEED CUSTOMERS NEEDS

PROJECT MANAGEMENT
PROJECT MANAGEMENT INVOLVES
PROJECT PLANNING
PROJECT SCHEDULING
PROJECT MONITORING & CONTROL
PROJECT PLANNING
DEFINITION OF WORK REQUIREMENTS
DEFINITION OF QUANTITY OF WORK
DEFINITION OF RESOURCES NEEDED

 PROJECT SCHEDULING
LIST OF ACTIVITIES TO BE COMPLETED
ACTIVITY RELATIONSHIPS
GANTT CHARTS
CRITICAL, NON-CRITICAL ACTIVITIES, MILESTONES
RESOURCE LOADING, LEVELLING, ALLOCATION
PROJECT MONITORING & CONTROL
TRACKING PROGRESS
COMPARING
ANALYZING IMPACT
MAKING ADJUSTMENTS
TIME, COST, QUALITY CONTROL

NEED AND IMPORTANCE OF

PROJECT MANAGEMENT
ABILITY TO PLAN, IMPLEMENT AND MANAGE

ACTIVITIES
RESULT-ORIENTED MANAGEMENT STYLES
COMPRESSION OF PRODUCT LIFE CYCLES
GLOBAL COMPETITION
KNOWLEDGE EXPLOSION
CORPORATE DOWNSIZING
INCREASED CUSTOMER FOCUS
MULTI-PROJECT ENVIRONMENT

 COMPRESSION OF PRODUCT LIFE CYCLE

SHORTENING OF PRODUCT LIFE CYCLE
TIME TO MARKET FOR NEW PRODUCT WITH
SHORTER LIFE CYCLES
SIX MONTH PROJECT DELAY CAN RESULT IN 33%
LOSS IN PRODUCT REVENUE SHARE
GLOBAL COMPETITION
CHEAPER AND BETTER PRODUCTS AND SERVICES
USE OF QUALITY MANAGEMENT PRACTICES AND
CONTINUOUS IMPROVEMENT

 KNOWLEDGE EXPLOSION
INCREASE COMPLEXITY OF PROJECTS BECAUSE OF
ADVANCED TECHNOLOGIES
COMPLEXITY IN MATERIALS, SPECIFICATIONS, CODES,
AESTHETICS, EQUIPMENT AND REQUIRED SPECIALISTS
CORPORATE DOWNSIZING
NECESSITY OF DOWNSIZING OR RIGHTSIZING
NECESSITY OF CORE COMPETENCIES FOR SURVIVAL
PROJECT MGMT REPLACING MIDDLE MANAGEMENT
OF SIGNIFICANT SEGMENTS OF
OUTSOURCING
PROJECT WORK

 INCREASED CUSTOMER FOCUS

CUSTOMER : SATISFACTION, DELIGHT, SURPRISE
NEEDS CUSTOMIZED PRODUCTS AND SERVICES
MULTIPROJECT ENVIRONMENT
SHARING AND PRIORITIZING RESOURCES
RISK MANAGEMENT
PROJECT MANAGEMENT IS BEST SUITED FOR

BUSINESSES
REQUIRING
ACCOUNTABILITY,
FLEXIBILITY,
INNOVATION,
SPEED
AND
CONTINUOUS IMPROVEMENT

PROJECT DRIVEN ORGANIZATION

ALL

WORK IS CHARACTERIZED THROUGH

PROJECTS WITH EACH PROJECT AS A SEPARATE
COST CENTER HAVING ITS OWN PROFIT AND
LOSS STATEMENT

NON-PROJECT DRIVEN
ORGANIZATION
PROJECTS EXIST MERELY TO SUPPORT THE

PRODUCT LINES OR FUNCTIONAL LINES

PROFIT AND LOSS ARE MEASURED ON VERTICAL
OR HORIZONTAL LINES
PRIORITY RESOURCES ARE ASSIGNED TO
REVENUE PRODUCING FUNCTIONAL LINE
ACTIVITIES RATHER THAN THE PROJECTS

LIMITATIONS OF NON-PROJECT
DRIVEN ORGANIZATIONS
PROJECTS MAY BE FEW AND FAR BETWEEN
NOT ALL PROJECTS HAVE THE SAME PROJECT

MANAGEMENT REQUIREMENTS
EXECUTIVES DO NOT HAVE SUFFICIENT TIME TO
MANAGE PROJECTS
PROJECTS TEND TO BE DELAYED BECAUSE
APPROVALS MOST OFTEN FOLLOW VERTICAL CHAIN
OF COMMAND
PROJECT STAFFING IS ON A LOCAL BASIS
HEAVY DEPENDENCE UPON SUBCONTRACTORS AND
OUTSIDE AGENCIES FOR PROJECT MANAGEMENT
EXPERTISE

PROJECT LIFE CYCLE

DEFINING
GOALS
SPECIFICATIONS
TASKS
RESPONSIBILITIES
PLANNING
SCHEDULES
BUDGETS
RESOURCES
RISKS
STAFFING

 EXECUTING
STATUS REPORTS
CHANGES / REVISIONS
QUALITY
FORECASTS
DELIVERING
DELIVERING
THE PROJECT PRODUCT
CUSTOMER
REDEPLOYING PROJECT RESOURCES
TRAIN CUSTOMER
TRANSFER DOCUMENTS
RELEASE STAFF
LESSONS LEARNED

TO

THE

LIFE CYCLE PHASES

ENGINEERING
START UP
DEFINITION
MAIN
TERMINATION
MANUFACTURING
FORMATION
BUILDING
PRODUCTION
PHASE-OUT
FINAL AUDIT

 SOFTWARE DEVELOPMENT
CONCEPTUAL
PLANNING
DEFINITION AND DESIGN
CODE
INTEGRATION / TESTING
CONVERSION
MAINTENANCE
CONSTRUCTION
PLANNING, DATA COLLECTION AND PROCEDURES
STUDIES AND BASIC ENGINEERING
MAJOR REVIEW
DETAIL ENGINEERING
CONSTRUCTION
TESTING AND COMMISSIONING

NEW PRODUCT INTRODUCTION

FEASIBILITY STUDY
MARKET SURVEY
COST ESTIMATION
TECHNOLOGY ASSESSMENT
PRODUCT DESIGN AND DEVELOPMENT
FINANCING
PROCESS PLANNING
QUALITY SPECIFICATIONS

 PERSONNEL ASSIGNMENT AND TRAINING

OPERATIONS PLANNING
FACILITIES LAYOUT
SYSTEM INTEGRATION
PRODUCTION SCHEDULING
PRODUCTION RUN
PRODUCT SHIPMENT

ROLE OF PROJECT MANAGER

PROVIDE

DIRECTION, COORDINATION AND

INTEGRATION TO THE PROJECT TEAM
MANAGE
TEMPORARY,
NON-REPETITIVE
ACTIVITIES TO COMPLETE A FIXED LIFE PROJECT
MEET THE CHALLENGES OF EACH PHASE OF THE
PROJECT LIFE CYCLE
MANAGE THE TENSION BETWEEN CUSTOMER
EXPECTATIONS AND WHAT IS FEASIBLE OR
REASONABLE
WORK
WITH
VENDORS,
SUPPLIERS,
SUBCONTRACTORS

 RESPONSIBLE FOR PERFORMANCE

ENSURE APPROPRIATE TRADE-OFFS BETWEEN

TIME, COST AND PERFORMANCE REQUIREMENTS

INDUCING THE RIGHT PEOPLE AT THE RIGHT
TIME
TO ADDRESS RIGHT ISSUES AND MAKE RIGHT
DECISIONS

Categories of Interactions
Superiors or Bosses
Colleagues or Peers
Subordinates or Juniors
Dealing with each category requires definite skills

which have to be mastered if one is to rise in the

organizational hierarchy

Interaction with Superiors

Boss is always the boss, though he may not be always

right
There may be serious differences of opinion with the

boss, but ultimately, the will or opinion or decision of

the boss will prevail
Boss is more accountable than the subordinates and will
have to answer the consequences of his decisions and
actions

 Rather than be a Yes Man and agree with everything

the boss says, the subordinate must definitely express

his views and opinions for the consideration of the
boss
If the boss chooses to ignore suggestions or overrule
decisions taken by the subordinate, he does so at his
own discretion and risk

 Certain bosses who flatly refuses to accept any

suggestions coming from the subordinates, even
though his suggestions are basically sound and
would be interest of the organization
Such individuals suffer from a sense of insecurity
and are afraid that implementation of the
suggestions
would
highlight
their
own
shortcomings and bring credit to the subordinates
at their own expense

 What the boss forgets is that credit for achievement or

good performance first goes to the boss for his ability

to get work done
The subordinate only gets a part of the credit received
by the boss

Boss has greater access to

information
By virtue of position in the organization, the boss has

greater access to vital information affecting the wellbeing of the organization

Some of the decisions may appear to be ill-conceived
or wrong, however it is more likely that a particular
decision may be based on certain information not
available to the subordinate

Boss is more Busy

Responsibilities of the boss are considerably
greater than those of the subordinates
The time at his disposal for dealing with particular
problem is naturally less than the time available
with the subordinate
Therefore it is the duty of subordinate to do his
homework well, work out options in any given
situation and then put them for consideration and
final decision with his own recommendation

Boss is under greater pressure

By virtue of his position and responsibility, boss is
under greater pressure to meet targets and
deadlines
Some pressure is bound to get transferred down to
lower levels resulting in FIRING
Firing is a part of the game and has to be accepted
as such
One must not be too sensitive to such firings and
must develop a somewhat thick skin in such
matters

 On the other hand, the skin should not be so thick

that firing has no effect at all

On occasion, unpleasant talk may appear to be entirely
unreasonable
Outcome of firing of the juniors, who, in turn, may
take it to out on their wives and children

Interaction with Colleagues

Individuals who are more or less at the same level in

the hierarchy
Engineers performing shift duty and reporting to
Manager
Department heads reporting to the Production
Manager
Functional Heads reporting to Unit Head
Project Engineers reporting to Project Managers
Project Managers reporting of Head, Projects

 Feeling of cordiality, cooperation, mutual trust and

atmosphere of healthy competition

This is easier said than done
Politics is an integral feature of any organization, as
each individual tries to catch the eye of the boss and
advance his own cause for promotion

 If the competition leads to confrontation and

undermining the position of others, working is
bound to suffer
Personal equations can lead to formation of
groups that adversely affect organizational
working

Interaction with Subordinates

An engineer in a supervisory position or a manager
is responsible not only for his own actions, but also
for the actions of all those working under his
direction
Delegation: A successful manager once said, I
never do anything which I can get done by a
subordinate
This is an excellent way to motivate subordinates
and at the same time freeing the boss from routine
matters and giving him time to concentrate on
important issues

 Delegation does not imply that the boss is absolved of responsibility

for that actions of his subordinates, he should keep a watchful eye

over their activities and issue necessary direction.

Earn the respect of subordinates

It is easy to get work done if subordinates hold the boss in

esteem and respect

Sound knowledge and thorough understanding of plant or
process are vitally important
Boss should be capable of doing at least 80% of the work done
by each one of its subordinates
20% of his own work should be such that none of his
subordinates can do so effectively

 Issue clear instructions

Instructions have no meaning if they are vague and
likely to be misinterpreted
Some managers are in the habit of deliberately leaving
instructions vague and then pulling juniors for not
acting one way or the other
Descend to the level of subordinates
Boss must express himself in a language which the
subordinates can understand

Define Jurisdiction
Areas wherein the subordinate is free to take his
own decisions according to established norms and
guidelines
Boss will not be troubled with low level decisions
Subordinate must have clear idea about
what he can do without informing the boss at all
what he can do first and inform later
what he can do only after getting approval

Categorize Subordinates
1. THOSE WHO WORK ON THEIR OWN INITIATIVE

2. THOSE WHO WORK ONLY AFTER RECEIVING

DIRECTIVES OR GUIDELINES

3. THOSE WHO DO NOT WORK EVEN AFTER

RECEIVING DIRECTIVES AND GUIDELINES

Subordinate Problems are

Ultimately Bosses Problems
ANY DEFICIENCY IN WORKING HAVE TO BE
REMOVED BY CONCERTED EFFORT
BOSS CANNOT GET AWAY BY SAYING THAT
THESE PROBLEMS HAVE TO BE TACKLED BY
JUNIOR STAFF ALONE
BOSS HAS TO GET INVOLVED AND ISSUE
NECESSARY DIRECTIONS TO SOLVE THE
PROBLEMS
IT IS THE BOSS WHO WILL HAVE TO ANSWER
FOR THE WORKING OF ALL SECTIONS UNDER
HIS CHARGE

Strive to become Redundant

EVERY SUPERVISOR OR MANAGER MUST STRIVE

TO
MAKE
HIMSELF
SUPERFLUOUS

REDUNDANT

AND

EFFORT MUST BE MADE TO EVOLVE SYSTEMS

AND PROCEDURES, SO THAT WORKING IS NOT

AFFECTED IN THE ABSENCE OF SUPERVISOR /
MANAGER

Train supervisor to
take your place
ADVANCEMENT IS EASY IF THERE IS
SOMEONE WHO CAN ASSUME CHARGE OF
THE VACATED POSITION

SHOULD
TRAIN
HIS
MANAGER
SUBORDINATES ADEQUATELY, NOT ONLY TO
REDUCE HIS WORKLOAD BUT ALSO TO
FACILITATE HIS OWN ADVANCEMENT AT THE
APPROPRIATE TIME

 SOME MANAGERS ARE UNDULY SECRETIVE AND

HABITUALLY
CONCEAL
DOCUMENTS
INFORMATION FROM SUBORDINATES

AND

MANY ORGANIZATIONS FORCE THEIR EMPLOYEE

TO AVAIL DUE LEAVE AND DO NOT PERMIT LEAVE

ACCUMULATION TO A CERTAIN LEVEL

EXCELLENT PRACTICE AND SERVES TO MOTIVATE AND

TRAIN SUBORIDNATES FOR HIGHER RESPONSIBILITES

SIMULTANEOUSLY, THE BOSS RETURNS REFERESHED
AFTER LEAVE TO DO GREATER JUSTICE TO HIS
RESPONSIBILITIES

Be Fair and Appear to be Fair

JUSTICE MUST NOT ONLY BE DONE BUT SEEN
TO BE DONE
BOSS MUST BE FAIR, BUT ALSO APPEAR TO BE
FAIR TO HIS SUBORDINATES
ALL SUBORIDNATES SHOULD BE TREATED ON
MERITS AS FAR AS DISTRIBUTION OF
ASSIGNMENTS
AND
PROSPECTS
FOR
ADVANCEMENT ARE CONCERNED

 IT IS NATURAL TO DEVELOP LIKING OR

DISLIKE FOR VARIOUS SUBORDINATES
ONE MUST NOT GET CARRIED AWAY BY
SUBJECTIVE CRITERIA
FRIENDSHIP AND PERSONAL RELATIONS
WITH SUBORDINATES SHOULD NOT ACT AS
OBSTACLES TO ADVANCEMENT
THE RECOMMENDED PERSON SHOULD
REDUCE THE WORKLOAD OF THE BOSS AND
MAKE HIS LIFE EASIER

DECISION MAKING
PROBLEMS
ADMIT
MULTIPLE
MOST
SOLUTIONS
A CONCIOUS AND DELIBERATE DECISION HAS
TO BE TAKEN TO PURSUE A PARTICULAR
COURSE OF ACTION
IT IS UNLIKELY THAT ALL DECISIONS TAKEN
BY A MANAGER WOULD PROVE TO BE
CORRECT IN THE LONG RUN
SUCCESSFUL MANAGERS ARE THOSE WITH
HIGH PERCENTAGE OF CORRECT DECISIONS

 ONCE A DECISION IS TAKEN, THE MATTER

DOES NOT END
DECISION SHOULD BE MONITORED TO
ASCERTAIN WHETHER THE DESIRED RESULTS
ARE BEING OBTAINED OR NOT
IN CASE OF DEVIATIONS FROM THE
EXPECTED OUTCOME, THERE SHOULD BE NO
HESITATION IN REVERSING THE DECISION
BEFORE THE SITUATION GETS OUT OF HAND

 DECISIONS SHOULD BE QUICK AND TIMELY

PROCASTINATION LEAD TO DISASTROUS

CONSEQUENCES
AND
AFFECTS
ORGANIZATIONAL EFFICIENCY
NORMS AND GUIDELINES SHOULD BE
ESTABLISHED SO THAT DECISION ARE TAKEN
AT THE LOWEST POSSIBLE LEVEL
SUFFICIENT
AUTHORITY
SHOULD
BE
DELEGATED TO THE JUNIOR LEVELS -ACTIVE
INVOLVEMENT
OF
PERSONNEL,
GOOD
MORALE AND FREEDOM OF BOSS FROM
ROUTINE DECISIONS

INTEGRATED PROJECT
MANAGEMENT
FOCUSES ALL PROJECT EFFORT TOWARD THE

STRATEGIC PLAN OF THE ORGANIZATION

MASTERY
OF
PROJECT
REINFORCES
MANAGEMENT AND INTER-PERSONAL SKILLS
MAY REQUIRE RENGINEERING OF BUSINEESS
MANAGEMENT PROCESS
INTEGRATION

OF PROJECTS WITH STRATEGIC

PLAN OF THE ORGANIZATION
INTEGRATION
WITHIN
THE
PROCESS
OF
MANAGING ACTUAL PROJECTS

INTEGRATION OF PROJECTS WITH

STRATEGIC PLANS
NEED: STRATEGIC PLANS ARE MADE BY ONE

GROUP OF MANAGERS, PROJECTS SELECTED BY

OTHER AND IMPLEMENTED BY ANOTHER
INDEPENDENT DECISIONS LEAD TO CONFLICTS,

CONFUSION ETC. ON UNSATISFIED CUSTOMERS

RESOURCES ARE WASTED IN NON-VALUE ADDED

ACTIVITIES/PROJECTS

CHARACTERISTICS
ALL THE PARTS ARE INTER-RELATED. A CHANGE

IN ONE OF THE PARTS WILL INFLUENCE THE

WHOLE
VISION, MISSION, OBJECTIVES AND STRATEGIES
NEED TO BE PREPARED CONSIDERING INTERNAL
AND EXTERNAL ENVIRONMENTAL FACTORS
FACTORS:
POLITICAL,
SOCIAL,
EXTERNAL
ECONOMIC AND TECHNOLOGICAL
INTERNAL FACTORS: MANAGEMENT, FACILITIES,
CORE COMPETENCIES, FINANCIAL CONDITIONS

 IMPLEMENTING

STRATEGIES

THROUGH

PROJECTS
SELECTING PROPOSALS THAT MAKE LARGEST
AND MOST BALANCED CONTRIBUTION TO THE
OBJECTIVES AND STRATEGIES
PRIORITIZING PROJECTS SO THAT RESOURCES
ARE ALLOCATED TO THE RIGHT PROJECTS

INTEGRATION WITHIN THE PROCESS OF

MANAGING ACTUAL PROJECTS
TECHNICAL

SIDE

OF

THE

MANAGEMENT

PROCESS
PLANNING, SCHEDULING, CONTROLLING

SOCIO-CULTURAL

SIDE
MANAGEMENT PROCESS

OF

THE

PROJECT

SHAPING A PROJECT CULTURE THAT STIMULATES

TEAMWORK AND HIGH LEVELS OF PERSONAL

MOTIVATION
PROBLEM SOLVING APPROACH
EFFECTIVE COMMUNICATION SESSIONS WITH
STAKEHOLDERS