Session 1

INTRODUCTION TO PROJECT
MANAGEMENT
Dr Asif Nawaz
EMM - MSRSAS 2
Session Objectives & Topics
At the end of this session the delegate would have
understood

Definition of a project
Role of Project in Corporate Strategy
Difference between a project & operations
Benefits of Projects
Core processes in a project
MSRSAS 3
Projects An Overview
Changes that are appearing in the global market place
today have no precedence
Changes are taking place all around us in physical
entities, attitudes & mind-sets, disposable incomes
etc., arising from globalized economy
This is leading to demand for innovative products &
services
As a result, product life cycles are shortening
drastically



MSRSAS 4
Strategy & Projects
The primary goal of any business is to increase
shareholder value; organizations meet this need by
developing a strategy & successfully implementing it
Increasing demands for goods and services from the
society provides a means for organizations to grow
& meet the share holders expectations
Projects are executed in order to expand; they form
the primary means for achieving organisational
strategy
Hence they are considered as the building blocks of
organizations strategy
MSRSAS 5
Strategy & Projects
A successful enterprise has a stream of projects
flowing through it at all times in order to sustain
growth
Many ideas are fermenting; as these are evaluated,
many of them will be discarded for a variety of
reasons; only a few will survive this phase
But, if the ideas stop germinating, the organization
will face liquidation in a short time

MSRSAS 6
Project Benefit / Purpose
Corporate strategy is implemented through projects
to increase shareholder value future cash flows
to give sustainable competitive advantage
to increase profitability
by earning more revenue
by reducing costs
by reducing working capital
by improving efficiency & productivity
to remain in business - survival
MSRSAS 7
Definition of a Project
A project can be defined as a non-repetitive
activity. It is a one-shot, time-limited, goal
oriented, major undertaking, requiring the
commitment of varied skills and resources.
A project is a combination of human and non-
human resources pulled together in a temporary
organization to achieve a specified purpose
It is a combination of arts, science, Technology,
HR, Politics etc. Practicing PM as a pure science
is a recipe for failure!
EMM - MSRSAS 8
PM An Overview
Businesses tackle competition by a three pronged
strategy viz.
Cost cutting
Operations improvement
Growth

Projects are the means by which physical growth
takes place


EMM - MSRSAS 9
PM An Overview
This also represents the application of resources to
steer the organization to its intended destination
Projects are the result of high quality solutions
using many techniques such as market survey, R
& D, operations research, bench marking etc.

EMM - MSRSAS 10
What For The objectives of the project
How The process and the internal and
external resources
Who For whom, by whom: partners/
stakeholders
When The time Factor
Where The location
What The activity
EMM - MSRSAS 11
Project Appraisal
Promoters standing
Market Prospects
Technology & Design
Economic/ Financial Viability, Initial investment
Environmental Compatibility
Time Schedule
Procurement
Legal Framework
Eligibility
MSRSAS 12
Strategic Management Process
PROJECTS
OT
SW
GOALS
STRATEGIC CHOICES
STRATEGY IMPLEMENTATION
PROJECT SELECTION
MISSION
Where do
we intend
to be?

What are
we now?

How do
we get
there?
EMM - MSRSAS 13
PM An Overview
EMM - MSRSAS 14
PM An Overview
EMM - MSRSAS 15
PM An Overview
Surprisingly in many cases, decisions are also
based on intangible factors such as intuition,
hunch etc which represents the spirit of
entrepreneurship.
Quality of these decisions often determines the
success of the project (quality of design)
EMM - MSRSAS 16
Project As A Conversion Process
PROJECT
INPUT
Want/ Need Mechanisms
People
Knowledge
Expertise
Capital
Tools
Techniques
Technology




Constraints
Finance
Legal
Ethical
Environmental
Time
Cost
Quality



OUTPUT
Need Satisfied
EMM - MSRSAS 17
PM An Overview
Project is implemented when there is recognition
for a need to change, which can create more value
for the business. Value may be judged by many
criteria such as
Gain in revenue (+)
Cost reduction (+)
Reduction of risks (technical, legal etc) (-)
EMM - MSRSAS 18
Definition of a Project
A project can be defined as a non-repetitive
activity. It is a one-shot, time-limited, goal
oriented, major undertaking, requiring the
commitment of varied skills and resources.
A project is a combination of human and non-
human resources pulled together in a temporary
organization to achieve a specified purpose.
EMM - MSRSAS 19
Project Management
Project management includes planning,
organizing, directing and controlling activities in
addition to motivating the people involved in the
project management.

EMM - MSRSAS 20
Examples of projects
Developing a new product or service
Effecting a change in structure, staffing, or culture
of an organization
Developing a new or modified information system
Constructing a building or facility.
Reconditioning of existing equipment.
Organizing a conference
---- and so on

MSRSAS 21
Project Selection
Objective 1 Objective 2 Objective 3
PROJECT 1
PROJECT 2

PROJECT 3

(STRONG +)
(WEAK +) (STRONG -)
CORELATION
MSRSAS 22
Project Portfolio Matrix

BREAD & BUTTER

PEARL

WHITE ELEPHANT

OYSTER
COMMERCIAL VALUE
HOW
EASY
IS IT?
High
High
Low
MSRSAS 23
Project Portfolio Matrix
Bread & Butter Evolutionary Improvements e.g.
software upgrades/ Operational Improvements
Pearls Revolutionary commercial advances using
proven technical advances e.g. electronic engine
management
Oysters Technological breakthroughs with high
pay-off e.g. new drugs, fuel cells
White elephants Unviable projects whose initial
promise failed to materialize e.g. pagers

MSRSAS 24
Projects Vs Operations

Unique
Finite
Revolutionary change
Disequilibrium
Unbalanced objectives
Transient resources
flexibility
Effectiveness
Goals
Risk and uncertainty
Repetitive
Eternal
Evolutionary change
Equilibrium
Balanced objectives
Stable resources
Stability
Efficiency
Roles
Experience
Change & innovation - Projects Business as usual Operation
EMM - MSRSAS 25
Internal and External Projects
INTERNAL PROJECTS
Done within an existing organization
Not usually main output of the organization
Provides facilities or new products
Overheads absorbed by main output
Functional organization structure





EMM - MSRSAS 26
Internal and External Projects
EXTERNAL PROJECTS
Done for separate client
Usually main output of organization
All overheads passed on to client
Project or matrix organization structure
EMM - MSRSAS 27
Project Types / Benefits
BUSINESS
To give sustainable competitive advantage
To increase profitability, efficiency, productivity
To provide increased employment
SOCIAL
To achieve relaxation, enjoyment
To raise funds for a worthy cause
HUMANITARIAN
To provide disaster relief


EMM - MSRSAS 28
Benefits Realization
Absolute clarity about benefits
Understand which activities deliver benefits
Responsibility for activities that deliver
Clear and committed sponsorship
Steering group of primary beneficiaries
Process to manage benefits over their lifespan


EMM - MSRSAS 29
Project Initiation

Projects are typically authorized as a result of:
A market demand
A business need
A customer request
A technological advance
A legal requirement

EMM - MSRSAS 30
Stakeholders
Any individual, group or organization that has a
demonstrable interest in the outcome of the project
Can be external as well as internal
KEY STAKEHOLDERS
Project manger - individual responsible for project
Customer-user of the project product
Performing organisation - carryout majority of work
Sponsor - provide the financial resources


EMM - MSRSAS 31
Core Processes
Scope
planning
Scope
definition
Activity
definition
Activity
sequencing
Resource
planning
Cost
estimating
Schedule
developing
Cost
Budgeting
Project plan
development
Activity
Duration
estimating
EMM - MSRSAS 32
Core Processes
SCOPE PLANNING
Developing a written scope statement as the basis for
future project decisions
SCOPE DEFINITION
Subdividing the major project deliverables into smaller,
more manageable components
ACTIVITY DEFINITION
Identifying the specific activities that must be
performed to produce the project deliverables
EMM - MSRSAS 33
Core Processes
ACTIVITY SEQUENCING
Identifying and documenting interactivity dependencies
ACTIVITY DURATION ESTIMATING
Estimating the time required to complete individual
activities
SCHEDULE DEVELOPMENT
Analysing activity sequences, activity duration, and
resource requirements to create the project schedule

EMM - MSRSAS 34
Core Processes
RESOURCE PLANNING
Determining what resources and what quantities of
each should be used to complete project activities
COST ESTIMATING
Developing an estimate of the costs of the resources
required to complete project activities
COST BUDGETING
Allocating the overall cost estimate to individual work
items
PROJECT PLAN DEVELOPMENT
Compiling the preceding results into a consistent,
coherent document



EMM - MSRSAS 35
Review
Periodically a strategic review should be carried
out to ensure that

Initial project objectives continue to be valid
Resources needed for the completion are still
economically justified
Any external changes do not affect the initial objectives
Compensate for adverse changes and exploit favourable
changes
EMM - MSRSAS 36
Review

The purpose of review is to decide whether

The objectives of individual modules are achieved
Decide about further course of action
To revise objectives for the next stage and to allocate tasks


EMM - MSRSAS 37
Objective Statement
Defines scope of project
Clarifies boundaries
Should specify a future state
Every objective must be achieved
No objective is superfluous
Smart criteria
EMM - MSRSAS 38
Smart Criteria
SPECIFIC
Be specific in targeting an objective
MEASURABLE
Establish measurable indicators of progress
AGREED
Obtain agreement and consensus for objectives



EMM - MSRSAS 39
Smart Criteria
REALISTIC
What can be realistically done with available resources
TIME RELATED
When can objective be achieved, milestones
EMM - MSRSAS 40
Successful Project Management
Good control mechanisms
Corrective action capabilities
Responsiveness to clients
Trouble shooting mechanisms
Project staff continuity

Ways to Resist Change
Keep a low profile do not openly declare resistance to
change because that gives those driving the change a
clear target to aim at
Divert resources, split budgets, give key staff other
assignments / priorities
Exploit inertia further research, assess other
proposals, evaluate previous projects, postpone to next
meeting, wait for a key player to move first
Keep goals vague & complex, multidimensional,
grandiose, abstract makes it harder to initiate
appropriate action
41
MSRSAS
Ways to Resist Change
Encourage & exploit lack of organisational awareness
insist that we can deal with the people issues later,
knowing these will delay or kill the project
Lets do it properly - Involve so many
representatives or experts that there will be so many
conflicting views & interests that it results in delays &
compromise
42
MSRSAS
Ways to Resist Change
Dissipate energies conduct surveys, collect data,
prepare analyses, write reports, make overseas fact-
finding trips, hold special meetings
Reduce change agents influence & credibility spread
damaging rumours
43
MSRSAS
PM Politics!
Cost & Time Over-runs is not always due to bad
planning
During the project selection stage, cost and time
are deliberately understated by the primary stake-
holder in order to clinch the project
Once the project is sanctioned and it begins to
progress, very little can be done about the over
runs!
Be aware of these political manoeuvres - adopt
countermeasures


MSRSAS 44
EMM - MSRSAS 45
Summary & Conclusions
In this session, following concepts have been
covered
One off nature of project and how it is different from a
routine operations
Project Stake holders
Role played by projects in achieving strategic
objectives of a corporation
Project Objectives and requirements for a successful
project