INTRODUCTION TO PROJECT

MANAGEMENT
Meaning : Project management is a system of procedures,
practices, technologies and know how that enables the planning,
organising, staffing, directing and controlling of project
activities to successfully manage a project.

It is defined as The application of knowledge, skills, tools and
techniques to project activities in order to meet project
requirement.

The art of directing and coordinating human and material
resources throughout the life of a project by using modern
management techniques to achieve predetermined objectives of
scope, cost, time, quality and participation satisfaction


ELEMENTS OF A SUCCESSFUL
PROJECT
Has been finished on time.
Is within its cost budget.
Performs to technical/performance standards
which satisfies the end user.
Causes of project failure
The customers conditions or satisfaction have not been
negotiated.
The project no longer has a high priority
The schedule is too optimistic.
The project plan is not used to manage the project.
Sufficient resources have not been committed
Project status is not monitored against the plan
No formal communication plan is in place
The project has lost sight of its original goals.
There is no change management process in place.
3 Ws OF PROJECT
MANAGEMENT
What : Scientific application of modern
techniques and tools.
Whom : in planning, financing, implementing,
monitoring, controlling and coordinating
unique activities of project
Why : to produce desirable outputs in
accordance with predetermined objectives
within constrains of time and cost.
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MANAGEMENT
Knowledge, skills, tools and techniques
PROJECT ACTIVITIES
Conception, design, Implementation, Commissioning
SUCCESSFUL PROJECT
Within planned time, resource, scope and quality
THE SCOPE TRIANGLE
Resources
Project scope and
quality
PROJECT PARAMETERS
Defining project scope
Defining quality
Managing time
Managing cost
Managing resources

Project Management Functions
Project management responsibilities
Integration management
Processes required to ensure that elements of the
project are properly coordinated
Consists of project plan development, project plan
execution, and overall change control
Scope management
Processes required to ensure that all the work required,
and only the work required, is included to complete the
project successfully
Consists of initiation, scope planning, scope definition,
scope verification, and scope change control

Time management
The processes required to ensure the project is completed in
a timely way
Consists of activity definition, activity sequencing, activity
duration estimating, schedule development, and schedule
control
Cost management
The processes required to ensure the project is completed
within the approved budget
Consists of resource planning, cost estimating, cost
budgeting, and cost control

Quality management
The processes required to ensure that the project satisfies
the needs for which it was undertaken
Consists of quality planning, quality assurance, and quality
control
Human resource management
The processes required to most effectively use the people
involved in the project
Consists of organizational planning, staff acquisition, and
team development

Communications management

The processes required to timely and appropriately
generate, collect, disseminate, store, and ultimately
dispose of project information

Consists of communications planning, information
distribution, performance reporting, and administrative
closure

Risk management
The processes concerned with identifying, analyzing,and
responding to project risk

Consists of risk identification, risk quantification, risk
response development, and risk response control

Procurement management
The processes required to acquire goods and
services from outside the organization
Requires good relations with companies and
individuals in the supply chain
It consists of procurement planning, solicitation
planning, solicitation, source selection, contract
administration, and contract closeout
Requires clear understanding of costs and timing
(how quickly goods and services can be
delivered)
Requires common understanding of quality control
issues

BENEFITS OF PROJECT
MANAGEMENT
Clear description of work to be performed
Responsibilities and assessment of tasks
Time limit for task completion
Measurement of accomplishment against plans is possible
Problems are exposed in advance allowing corrective action
Objective that cannot be met are identified early
IMPORTANCE OF PROJECT
MANAGEMENT
Project Management was developed as a result of serving and
fulfilling a special need.

Due to rapid changes in business environment, now it is no
longer a special need management rather it has become a
standard way of doing business.

Increasing %age of firms efforts are now being devoted to
projects

Importance Of Project Mangement
Factors leading to the increased use of project
management:
Compression of the product life cycle
Knowledge explosion
Global Competition (planet, people, profit)
Corporate downsizing
Increased customer focus
Small projects represent big problems

Importance of Project Mangement
Compression of the product life cycle
Significant forces behind Demand for Project management is the shortening of
product life cycle.

Due to world wide flow of information

Which reduces the competitive advantage of new products--- due to
being easily imitated or copied.

Computer Aided Designs (CAD) and CAM

E.g., in high tech industriesPLC is averaging 1.5 to 3 yearssome
30 years ago PLC of 10 to 15 years was not uncommon.
Importance of Project Management
Keeping in view the shorter PLC
it is imperative to keep constant chain of new products in the pipeline.

Place the product in the market before competitor.
Common rule of thumb in High tech product development is that a
6 months delay can cause 33% loss in product revenue share.

Time to market new products is indispensable
Due to the velocity with which technology is changing.

Speed is also becoming a competitive advantage
Because more and more organizations are relying on cross
functional project teams and project management methods to get
new products and services to the market as quickly as possible.
Importance of Project Management
Global Competition

Transformation from national to global economy has led to
dramatic technological changes or innovations.

Which created tremendous pressure on quality improvement and cost
containment.

Open market demands not only cheaper products but also better
products and services

Importance of Project Management
Demand for better as well as low cost products :
led the businesses to get ISO 9000 certifications---a
requirement for doing business.

ISO 9000 certification is family of international standards
for quality management and assurance .

These standards cover design, procurement, quality assurance and
delivery process.
Increased pressure to reduce costs has forced business
organization to migrate their manufacturing plants to less
costly areas.

Importance of Project Management
Knowledge Explosion
Growth and advancement in New Knowledge
Increased the complexity of projects due to latest
advances.
E.g., buliding a road 30 years ago was somewhat simple
process.
Today, the complexity in each area has increased
Including materials, specifications, codes, aesthetic,
equipment and required specialists.

Importance of Project Management
Basic project work has become more complex
requiring greater degree of coordination.

Existing products and services have also become
technologically complex:

In todays digital world, you will hardly find a
product that does not contain at least one micro-chip.

project complexity has increased the need to integrate
divergent technologies.

Importance of Project Management
Corporate Downsizing
Focus in the past on growth and big is better--- organizations
began to realize that big is also more costly.

In the last decade or so, businesses have restructured their
organizational life or structure.

For the survival of firms, downsizing or rightsizing if you
are still employed, and sticking to core competencies have
become necessary.


Importance of Project Management
Now, middle management has just become a skeleton of the
past.
Due to the fact that change is constant, Project management
has replaced the middle management as a way of ensuring that
things get done.
You will rarely or hardly find any major project performed
totally in house.
Companies outsource significant segments of project and
project managers have to manage not only their own people
but also their counterparts in different organizations.

Increased customer focus
Increased competition has placed a premium on
customer satisfaction.

Customer no longer simply settle for generic products
and services.

They want customized products and services that
cater to their specific needs.

This mandate requires a much closer working
relationship between provider and receiver.

Increased customer focus
Account executives and sales reps are assuming more
of Project manager role as they work with their
organization to satisfy the unique needs and requests
of clients.

This change has also prompted the development of
customized products and services.

Project management is critical both to development of
customized products and services and to sustain
lucrative relationship with customers.

Rapid development of third world
and Closed Economies.
The collapse of the soviet empire and gradual
opening of Asian communist countries have created

an expansion in built-up demand within these societies for
all manner of consumer goods and infrastructure
development.

Western firms are scrambling to introduce their
products and services to these new markets

Many firms are using project management techniques
to establish distribution channels and foreign bases of
operations.

Rapid development of third world
and Closed Economies.
Like wise, these historical changes have created a tremendous
market for core project work in the areas of heavy construction
and telecommunications as these countries strive to revitalize
their inefficient industries and decrepit infrastructures.

To reduce some of the risk and maximize individual talents,
more and more firms are entering into joint ventures with
indigenous firms to complete large and small scale foreign
projects.

These foreign ventures have placed a premium on the adaptive
capacity of project management personnel to work in foreign
cultures with vastly different values, work habits and
orientations.

Small projects represent big
problems

The velocity of change required to remain
competitive or simply keep up has created an
organizational climate in which hundreds of projects
are implemented concurrently.

This climate has created a multi project environment
and plethora of new problems.

Sharing and prioritizing resources across a portfolio
of projects is a major challenge for senior
management.

Small projects represent big
problems

Those who manage small projects often face a variety of
problems than do managers of single mega projects.

Frequently, the organizational culture does not support small
projects and control system are non existent.

Thousands of product and service companies are faced with
multiple projects continuously in process.

Many firms have no idea of the problems involved with
inefficient management of small projects.

Small projects represent big
problems
Small projects typically carry the same or more risk as do large
projects.

Small projects are perceived as having little impact on the
bottom line because they not demand large amounts of scarce
resources. Because so many small projects are going
concurrently and because the perception of inefficiency impact
is small, measuring inefficiency is usually non-existent.
Unfortunately many small projects soon add up to large sums
of money.

Many customers and millions of dollars are lost each year on
small projects in product and service organization.