Project Management

Lecture 1
Meaning, Nature and Importance

INTRODUCTION
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Construction Projects have a major role to play in the economic

development of a country.

Since the introduction of planning in our economy, we have been

investing large amount of money in projects related to industry, minerals,
power, transportation, irrigation, education etc. with a view to improve
the socio-economic conditions of the people.

Projects are designed with the aim of efficient management, earning

adequate return to provide for future development with resources. But
experience shows that there are several shortcomings in the ultimate
success of achieving the objectives of the proposed project.

CONCEPT OF PROJECT AND PROJECT MANAGEMENT

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. The construction of a house
consists of many activities like
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digging of foundation pits,

construction of foundation, construction of walls,

construction of roof,

fixing of doors and windows,

fixing of sanitary fitting,

wiring etc.

Another aspect of project is the non-routine nature of activities. Each project

is unique in the sense that the activities of a project are unique and non routine.

A project consumes resources.

The resources required for completing a project are
-

men,

material & equipments

money and

time.

Thus, we can define a project as an organised programme of pre determined

group of activities that are non-routine in nature and that must be completed
using

the available resources within the given time limit.

some definitions of project

a project typically has a distinct mission that it is designed to achieve and a
clear termination point i.e. the achievement of the mission.
project as the whole complex of activities involved in using resources to
gain benefits.
Project management institute, USA defined project as a system involving
the co-ordination of a number of separate department entities throughout
organization, in a way it must be completed with 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
predetermined programme specification.

The period of construction of the Taj Mahal is reported to be during

1626-1648 A.D. It is reported that about 20,000 persons worked for nearly 22
years to complete this structure, which stands today as mankinds proudest
creation. One can imagine the extent of resources and expertise that would
have been put forth for the completion of such magnificent projects.

CHARACTERISTICS OF PROJECT
. (1) Objectives : A project has a set of objectives or a mission. Once the
objectives are achieved the project is treated as completed.
. (2) Life cycle : A project has a life cycle. The life cycle consists of five stages
i.e. conception stage, definition stage, planning & organising stage,
implementation stage and commissioning stage.
. (3) Uniqueness : Every project is unique and no two projects are similar.
Setting up a cement plant and construction of a highway are two different
projects having unique features.
. (4) Team Work : Project is a team work and it normally consists of diverse
areas. There will be personnel specialized in their respective areas and
co-ordination among the diverse areas calls for team work.

. (5) Complexity : A project is a complex set of activities relating to diverse

areas.
. (6) Risk and uncertainty : Risk and uncertainty go hand in hand with project.
A risk-free, it only means that the element is not apparently visible on the
surface and it will be hidden underneath.
. (7) Customer specific nature : A project is always customer specific. It is the
customer who decides upon the product to be produced or services to be
offered and hence it is the responsibility of any organization to go for projects/
services that are suited to customer needs.
. (8) Change : Changes occur through out the life span of a project as a natural
outcome of many environmental factors. The changes may very from minor
changes, which may have very little impact on the project, to major changes
which may have a big impact or even may change the very nature of the
project.

. (9) Optimality : A project is always aimed at optimum utilization of resources

for the overall development of the economy.
. (10) Sub-contracting : A high level of work in a project is done through
contractors. The more the complexity of the project, the more will be the extent
of contracting.
. (11) Unity in diversity : A project is a complex set of thousands of varieties.
The varieties are in terms of technology, equipment and materials, machinery
and people, work, culture and others.

PROJECT FAMILY TREE

A project normally originates from a plan.
Plan
plan with target for growth.
Programme
health programme, educational programme, R&D programme.
Project
Power plant, hospital, housing project etc.
Work Package
Water supply, power supply and distribution package.
Task
Award of water supply contract, construction & foundation.
Activity
Excavation, laying of cable, preparation of drawing

PROJECT LIFE CYCLE

A project is not a one shot activity. Project lifecycle is spread over a period of
time. The principal stages in the life of a project are :
INITIATION
The initiation phase, starting the project, includes all the activities necessary
to begin planning the project. The initiation phase typically begins with the
assignment of the project manager and ends when the project team has sufficient
information to begin developing a detailed schedule and budget. Activities
during the initiation phase include project kickoff meetings, identifying the
project team, developing the resources needed to develop the project plan, and
identifying and acquiring the project management infrastructure (space,
computers). On projects where the scope of work for the project is not well
defined, the project team will invest time and resources in developing a clearer
scope of work. On projects where the major project stakeholders are not aligned,
the project team will expend resources and time creating stakeholder alignment.

Unlike project milestones, some activities associated with project initiation may be
delayed without delaying the end of the project. For example, it is advantageous for
the project to have the major project stakeholders aligned from the beginning, but
sometimes it is difficult to get the commitment from stakeholders to invest the time
and resources to engage in an alignment process. Sometimes it is only after
stakeholders begin observing progress on a project that the project manager can
facilitate the stakeholder alignment processes.

PLANNING
The planning phase, organizing and preparing, includes the development of
more detailed schedules and a budget. The planning also includes developing
detailed staffing, procurement, and project controls plans. The emphasis of the
planning phase is to develop an understanding of how the project will be executed
and a plan for acquiring the resources needed to execute it. Although much of the
planning activity takes place during the planning phase, the project plan will
continue to be adjusted to respond to new challenges and opportunities. Planning
activities occur during the entire life of the project.
EXECUTION
The execution phase, carrying out the work, includes the major activities needed
to accomplish the work of the project. On a construction project, this would
include the design and construction activities. On an information technology (IT)
project, this would include the development of the software code. On a training
project, this would include the development and delivery of the training.

CLOSEOUT
The closeout phaseclosing of the projectrepresents the final stage of a
project. Project staff is transferred off the project, project documents are archived,
and the final few items or punch list is completed. The project client takes control
of the product of the project, and the project office is closed down.
The amount of resources and the skills needed to implement each phase of the
project depends on the project profile. Typically, a project with a highercomplexity profile requires more skills and resources during the initiation phase.
Projects with a profile that indicates problems with alignment among key
stakeholders or political and legal issues will require specialized resources to
develop plans that address these issues early in the project. A project with a lower
complexity level will invest more resources in the execution phase to complete
the project as effectively and efficiently as possible.

THE PROJECT MANAGERS ROLES & RESPONSIBILITIES

. 1 Defining and maintaining the integrity of a project;
. 2 Development of project execution plan;
. 3 Organization for execution of the plan;
. 4 Setting of targets and development of systems and procedures for
accomplishment of project objectives and targets;
. 5 Negotiation for commitments;
. 6 Direction, coordination and control of project activities;
. 7 Contract management;
. 8 Non-human resource management including fiscal matters;
. 9 Problem-solving;
. 10 Man management;
. 11 Satisfaction of customer, Government and the public; and
. 12 Achievement of project objectives, cash surplus and higher productivity.

TOOLS AND TECHNIQUES FOR PROJECT MANAGEMENT

There are several tools and techniques which would contribute significantly towards effective project management these
can be broadly grouped under the following heads :
1. Project selection techniques
(a) Cost benefit analysis and
Costbenefit analysis (CBA), sometimes called benefitcost analysis (BCA), is a systematic approach to
estimating the strengths and weaknesses of alternatives that satisfy transactions, activities or functional
requirements for a business. It is a technique that is used to determine options that provide the best approach
for the adoption and practice in terms of benefits in labor, time and cost savings etc.[1] The CBA is also defined
as a systematic process for calculating and comparing benefits and costs of a project.

(b) Risk and sensitivity analysis

A technique used to determine how different values of an independent variable will impact a particular
dependent variable under a given set of assumptions. This technique is used within specific boundaries that
will depend on one or more input variables. Sensitivity analysis is a way to predict the outcome of a decision if
a situation turns out to be different compared to the key prediction. Sensitivity analysis is very useful when
attempting to determine the impact the actual outcome of a particular variable will have if it differs from
what was previously assumed. By creating a given set of scenarios, the analyst can determine how changes in
one variable(s) will impact the target variable.

2. Project execution planning techniques

(a) Work breakdown structure (WBS) is a deliverable-oriented decomposition of a project into
smaller components. A work breakdown structure element may be a product, data, service, or any
combination thereof. A WBS also provides the necessary framework for detailed cost estimating and
control along with providing guidance for schedule development and control.
(b) project execution plan (PEP) The project execution plan (PEP) is the governing document that
establishes the means to execute, monitor, and control projects. The plan serves as the main
communication vehicle to ensure that everyone is aware and knowledgeable of project objectives and
how they will be accomplished.

(c) Project responsibility matrix In project management, it is very important for all the stakeholders
to understand the responsibilities and accountabilities of each person. This helps reduce confusion
and leads project to faster completion.
RACI Matrix
One of the important tools for tracking roles & responsibilities is the Responsibility Assignment
Matrix (RACI matrix). RACI stands for:

Responsible Who is responsible for the execution of the task?

Accountable Who is accountable for the tasks and signs off the work?
Consulted Who are the subject matter experts who to be consulted?
Informed Who are the people who need to be updated of the progress?

3.

Project scheduling and coordinating techniques

(a) Bar charts : A bar chart or bar graph is a chart that
presents Grouped data with rectangular bars with
lengths proportional to the values that they represent.
The bars can be plotted vertically or horizontally. A
vertical bar chart is sometimes called a column bar
chart.

(b) Life cycle curves : Life cycle curve enables a project

manager to ascertain the state of health of any project
at any point of time.

(c) Line of balance (LOB) : Line of Balance (LOB) Line

of Balance (LOB) is a management control process for
collecting, measuring and presenting facts relating to
time, cost and accomplishment all measured against a
specific plan.

(d) Networking techniques (PERT/CPM) :A PERT

(Program Evaluation Review Technique) chart is a
graphic representation of a project's schedule, showing
the sequence of tasks, which tasks can be performed
simultaneously, and the critical path method (CPM) of
tasks that must be completed on time in order for the
project to meet its completion deadline.

(e)Gantt chart : is one of the most popular and useful ways of showing activities (tasks or events) displayed
against time. On the left of the chart is a list of the activities and along the top is a suitable time scale. Each activity
is represented by a bar; the position and length of the bar reflects the start date, duration and end date of the
activity. This allows you to see at a glance:
What the various activities are
When each activity begins and ends
How long each activity is scheduled to last
Where activities overlap with other activities, and by how much
The start and end date of the whole project

4. Project monitoring and progressing techniques

(a) Progress measurement technique (PROMPT) : PROMPT stands for Project Reporting, Organization &
Management Planning Technique
(b) Performance monitoring technique (PERMIT)
(c) Updating, reviewing and reporting technique (URT)
5. Project cost and productivity control techniques
(a) Value engineering (VE) : Value engineering (VE) is systematic method to improve the "value" of goods or
products and services by using an examination of function. Value, as defined, is the ratio of function to cost.
Value can therefore be increased by either improving the function or reducing the cost.

(b) WBS : Work Breakdown Structure

ASSIGNMENT - 1
1. Define Project Management and outline its features clearly.
2. Discuss the process of generating and screening the project.
3.Describe the concept of project life cycle in terms of construction
projects.
4.Write a detail note on characteristics of construction project.
5.Tools and techniques for project management for architects, project
managers, construction managers.

PROJECT PLANNING