Introduction to

Project Management

Are the projects driving you

IMPACT ON PROJECT MANAGER

Do you have
projects are they
driving you
crazy?

Did he understanding Project

&
Project Management
Process ????

Programs versus Projects

Program Defined
A series of coordinated, related, multiple projects that
continue over an extended time & are intended to achieve a
goal.
A higher-level group of projects targeted at a common goal.
Example:
Project: completion of a required course in project
management.
Program: completion of all courses required for a
business major.

Synergy of Strategic & Project Management

With Changes in the Organizations Mission & Strategy

Project managers must respond to changes with appropriate
decisions about future projects and adjustments to current
projects.
Project managers who understand their organizations strategy
can become effective advocates of projects aligned with the firms
mission.

Expectations from Project Management?

Reasons to study project management ?????

It is a profession that is always in demand

PM skills is useful and applicable to everyday work
It pays well: In 2003, the average senior project manager in the U.S. earned almost $90,000
per year, and the average Project Management Office (PMO) Director earned more than the
average Chief Information Officer ($118,633 vs. $103,925).

Worldwide IT spending continues to grow

Success rate is still low (about 16-20%)

Why Project Management has become ***

Project Management
Professional - PMP

Compression of the product life cycle

Global competition
Knowledge explosion
Corporate downsizing
Increased customer focus
Small projects that represent big problems

Changing Role of customer..

Increasing Relevance of Projects?
Project Management and Management by Projects
Change in Customer Requirements
Project as a process Structure
Projects

But.

Variety

What is a Project?
A project is a:
Complex,
non-routine and
one time effort
limited by time, budget, resources & performance spec.

PURPOSE
To accomplish some objective or goal

STRUCTURE
A set of interrelated jobs whose accomplishment leads to the completion
of the project
Jobs or activities consume time and resources and are governed by
precedence relations

What is a project?
A Project is an agreed upon set of
resources and activities that have
been designed to produce
predetermined outputs within a
given budget and time limit

Temporary endeavor undertaken to create a unique product or service

(Project Management Institute, 2000)

A Project is an agreed upon set of resources and activities that

have been designed to produce predetermined outputs within a
given budget and time limit

Features of Projects

Part of programs
Multi-disciplinary
Well defined collection of jobs
Generally non-repetitive, one time effort
Jobs interrelated through precedence
Jobs consume time and resources
Constant pressure of conformance to
time/cost /performance goals
Conflicts
Coordination needed between individuals,
groups & organizations

What is true with most projects?

Around ____% of projects face Mgmt.
JNNURM (Projects in Indore
problems

Most of the projects (10) undertaken by MoUD & Mo

Time over
run JNNURM had exceeded the estimated cos
Under
Scope creepOf Rs 476.3 crores. Likely to cross scheduled
Date of completion
Premature closure
Hindustan Times, Apr 26,2008
Projects funded by the World Bank
Poor
quality (post project evaluation)
On average, operations evaluated in 2004 took 37 percent longer
Cost
escalation
to implement
than originally scheduled,
down from
48
percent in
2003,
Of the
projects
inof$0.5-$3mn
range
IT
Challenges
resource
mismatch
& utilisation
and 54 percent in the 1989-99."
92% went over
schedule.
"Evaluation Results for 2004,"
Among
projects
planned
to takeWorld
moreBank, 2005
Operations
Evaluation
Department,

than 1 year 86% went over schedule

(KPMG-2001)

Economic Times, March- 2009

Times of India,NewDelhi, April 8, 2010

Finding from a TCS Study

What will be the managerial

response ???

Business response to failure

Standish Group : IT Project Success

Major Reasons for Failure

(Standish Group 2004)

.. What has become clear people and process have

greater effect on project outcome than technology !

Challenges

Multiple Projects
Complexity
Conflicting objectives
Due Date (time)
Budget (cost)
Content (quality/scope)

Project
Overload

What is Managed in Project Management?

STRUCTURED
PROJECT
MANAGEMENT
Performance Targets,
METHODOLOGY
Cost Targets,

Time Project Targets

What is Project Management?

Project management is the application of knowledge, skills,

tools and techniques to project activities in order to meet or
exceed stakeholder needs and expectations from a project.
Project Management Institute, 2000
By providing tools to aid in :
task sequencing,

dependency analysis,
Project
Management is a process and this process
saves
you allocation,
from the
nightmare
of project failure.
resource
scheduling,
etc.
Finally, track progress relative to plan

Project management is a science or art?

BOTH

Why Need Project Management?

Complex project needs coordination of:
Multiple people
Multiple resources (labs, equipment, etc.)
Multiple tasks some must precede others
Multiple decision points approvals
Phased expenditure of funds
Matching of people/resources to tasks

Motivation
Complexity of Projects
Implementation vs Planning
Conceptualising Project : Involvement
of implementers
Developments in Project Management
Computerised Systems
New concepts in Proj. Mgmt like TOC

Time & Cost Overruns

Increasing Risk

RETHINKING WAYS WE EXECUTE PROJECTS..

Why an course in Project Management

Project Management is a Complex Function
Technical skills
Soft skills communication, negotiation, team work etc..
Effective use of sophisticated methodologies

Risk in Projects
Uncertainty about the results
Time, Cost Overrun
Commitment of resources

Project Management and Knowledge Management

could everything be done twice, everything would be done better
Effective ways of managing the change

Project Management Framework

Role of Project Managers in Project Mgmt.

The Project Manager Manages temporary, nonrepetitive activities and frequently acts independently
of the formal organization.
Marshals resources for the project
Provides direction, coordination, and integration to the project team
Manages a diverse set of project stakeholders
Dependent upon others for technical answers
Is responsible for performance and success of the project
Must induce the right people at the right time to address the right
issues and make the right decisions.

Skill Sets for a Project Manager

Change
Mgmt
Handling
Uncertainty

Team
Work

Projects

Providing
Flexibility

Investment
Mgmt

Focus&
Commitment

PROJECT LIFE CYCLE

Project Phases and the Project Life Cycle

A project life cycle is a collection of project
phases that defines:
What work will be performed in each phase.
What deliverables will be produced and when.
Who is involved in each phase.
How management will control/approve work produced in
each phase.

A deliverable is a product or service produced

or provided as part of a project.

Project Life Cycle Issues

PROJECT SELECTION
Project Identification
(Brainstorming, SWOT analysis,
Project possibilities)
Project appraisal
(Market, Technical,
Financial, Economic
& Ecological Appraisal)

Multi-criteria decision
making for selection

PROJECT
COMPLETION
Accounting
Audit &Report writing
Handing over project to user
Disbanding project team
Disseminating learning's from project.

PROJECT PLANNING
Work breakdown structure
Basic Scheduling
Time/Cost tradeoffs
Resource loading
Resource Leveling
Limited Resource Allocation
Simulation

PROJECT
IMPLEMENTATION
Project Monitoring and control
(Earned value analysis)
Redefining priorities

Typical Project Life Cycle

e.g. A Good Student Project
100

Pe rce nt Com ple tion

Needs Tidying Up
At The End

Gets Very Busy

Starts Slow

Time

Project Life Cycle

FIGURE 1.1

The Project Life Cycle

Project Life Cycle

selection

Follow
Follow up
up
Analysis
Analysis

Project
Project
Identification
Identification
Definition
Definition

Formulation
Formulation
Feasibility
Feasibility

Evaluation
Evaluation
Project Design
Post
Post implementation
implementation
Completion
Completion
Termination
Termination

Project Planning and

Implementation Cycle

Supervision
Monitoring
Monitoring
Control
Control
Implementation
Implementation

Project
Project
Appraisal
Appraisal
Selection
Negotiation
Approval

Project
Project
Activation
Activation
Organisation
Organisation

More on Project Life Cycle Phases

In the early phases of a project life cycle:
Resource needs are usually lowest.
The level of uncertainty (risk) is highest.
Project stakeholders have the greatest opportunity to influence the
project.

In the middle phases of a project life cycle:

The certainty of completing a project increases.
More resources are needed.

In the final phase of a project life cycle:

The focus is on ensuring that project requirements were met.
The sponsor approves completion of the project.

What uncertainties are encountered in

project management?
Time required to complete a project
Availability of key resources
Cost of resources
Timing of solutions to technological problems
Actions taken by competitors

Advantages of Using Formal

Project Management
Better control of financial, physical, and human resources.
Improved customer relations.
Shorter development times.
Lower costs.
Higher quality and increased reliability.
Higher profit margins.
Improved productivity.
Better internal coordination.
Higher worker morale (less stress).

PROJECT IDENTIFICATION

Project Need Identification

Receptive to new ideas: Internal/External source

Vision of future growth
Long term objectives
SWOT analysis
Preliminary project analysis

Projects as an agent of Change

State B

State A

Alternative
Projects
(Paths)

Project Identification
OBJECTIVE

External

BRAINSTORMING
(SWOT, Emerging trends)
Internal
Objectives
To increase profits
To minimize threats of losses
To become more competitive
ALTERNATIVES
To provide
help after a disaster
To train people in a new area
To reduce pollution in Delhi
Screenng
Criteria
To become a successful
entrepreneur
CANDIDATE
PROJECT
SELECTION

SWOT
STRENGTHS
Experience and expertise
Financial position
Capital raising capability
Industrial contacts
Foreign collaborations
THREATS
Competitors
Poor state of the economy
Outdated technology
Unprofessional management skills
New products and services

WEAKNESSES
Newer unfamiliar technologies
Inability to raise huge investments
Lack of experience
Lack of trained personnel
Inability to forecast market trends
OPPORTUNITIES
Emerging technologies
New products with new markets
New processes with better features
Special financing schemes
Government and other incentives

Thankyou

A project is complete when it starts working fo

r you, rather than you working for it.