PROJECT MANAGEMENT

Course Code:10B11PD611 Credits: 3-0-0

The Structure of this Course

Follows the project life cycle Some topics stand-alone Other topics incorporated throughout Exercises Case-studies Tutorials

Part I: Project Initiation

1. 2.

3. 4.

Projects in Contemporary Organizations Strategic Management and Project Selection The Project Manager The Project in the Organizational Structure

Part II: Project Planning

5. 6.

7.
8.

Project Activity Planning Budgeting and Cost Estimation Scheduling Resource Allocation

Part III: Project Execution

9. 10.

11.
12.

Monitoring and Information Systems Project Control Project Auditing Project Termination

Chapter 1

Projects in Contemporary Organizations

Introduction

Much of project management developed by the military

Navys Polaris program NASAs space program Strategic defense initiative

Project management has found wide acceptance in industry It has many applications outside of construction

Managing legal cases Managing new product releases

Introduction

Continued

Main forces in driving the acceptance of project and other forms of management:
1.

2.
3.

The exponential growth of human knowledge The growing demand for a broad range of complex goods and services Increased worldwide competition

All of these contribute to the need for organizations to do more and to do it faster Project management is one way to do more faster

Projects Tend to be Large

Projects tend to be large

The Channel Tunnel, or Chunnel Denver International Airport Panama Canal expansion project Three Gorges Dam, China Flying: balloons planes jets rockets reusable rockets

Projects are getting larger over time

Main Goals of Project Management

1. 2. 3.

Time Cost Performance

Time, cost, and performance are all related on a project

Direct Project Goals: Performance, Cost, Time

Figure 1-1

Project Management Institute (PMI)

The Project Management Institute is the major project management organization Founded in 1969 Grew from 7,500 members in 1990 to over 260,000 in 2007 The Project Management Journal and PM Network are the leading project management journals

Project Manager
Project manager is the key individual on a project Project manager is like a mini-CEO While project manager always has responsibility, may not have necessary authority

The Definition of a Project

A Project is a temporary endeavour, having a defined beginning and end (usually constrained by date, but can be by funding or deliverables). E.g.- hospital, freeways, new website, movie, insurance policy etc.

Project vs Programme
Project is a non repetitive set of activities leading to singular product or service and gets over in a limited / finite time frame Programme is a repetitive array of activities carried out on a longer/ indefinite time frame to accomplish many no of similar / dissimilar projects

Historical Evidence of Monumental Projects

Great wall of China Pyramids of Egypt Suez Canal Taj Mahal Konark Temple

Common Examples of Different types of Projects

Construction Projects (dams/railway lines/buildings /roads/airports etc. Consultancy Projects (Providing service, technological and managerial knowhow) IT Projects (Productions/services/applications) Maintenance or Repair Projects

Not All Projects are Same

Projects do vary widely with respect to their Applicability or Usability (Single user, custom built) (Multi user, Wider usergroup or generic user) Technical Complexity (Radar/satellite comm-veryhigh (ERP implementation - high (New product development-medium (Building construction - low

 Resources Used (Capital/ Labour) A small maintenance project may take one month with only 10 people An O/S development project may take about three years involving somewhere around 500 people

Major Characteristics of a Project

Importance Performance Life cycle with a finite due date Interdependencies Uniqueness Resources Conflict

Project Success or Failure

A A project success is usually measured in terms of whether it is completed within specified time and under stipulated budget If it exceeds uncontrollably it is termed as a failure. However there is more to a projects success than just its completion within time and budget Meeting customer specifications Degree of customer satisfactions Level of success in the market place Result in greater revenue and profits

Why Projects need to be Managed ?

Because resources are limited

Because project has to be delivered within time and budget

Therefore in order to maximise output (with regard to project delivery) with the limited input resource , managerial attention is needed.

Why Project Management?

The main purpose for initiating a project is to accomplish some goal Project management increases the likelihood of accomplishing that goal Project management gives us someone (the project manager) to spearhead the project and to hold accountable for its completion

Negative Side to Project Management Greater organizational complexity Higher probability organizational policy will be violated Says managers cannot accomplish the desired outcome Conflict

The Project Life Cycle

Figure 1-3

Time Distribution of Project Effort

Figure 1-4

Another Possible Project Life Cycle

Figure 1-5

Risk During at the Start of the Life Cycle

Figure 1-6

Risk During the Life Cycle

Figure 1-7