Project Management

A Managerial Approach (7th Edition)

by

Jack R. Meredith & Samuel J. Mantel, Jr.

Available at: Stationary shop at XC block Bahria University,

MR OLD BOOKS shops in Islamabad and
Bahria University Library.

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Project Management

Zahid Majeed
Assistant Professor
Bahria University
zahidpn@gmail.com
Ph # Ext 310 cell 03005365495

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 Chapter 1

Introduction
The World of Projects
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 Lecture Plan
 The structure of this text book
 What is a Project?
 Introduction
 Why Project Mgmt?
 Growth of Project Mgmt
 Project Management in Pakistan
 PMP Certification
 Activity/Assignment -2
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 The Structure of this Text
 Follows the project life cycle
 Some topics stand-alone
 Other topics incorporated throughout

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 Part I: Project Initiation
Introduction, “The World of Projects”
 Selecting Projects Strategically

 The Project Manager

 Negotiation and the Management of Conflict

 The Project in the Organizational Structure

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 Part II: Project Planning
 Project Activity Planning
 Budgeting and Cost Estimation
 Scheduling
 Resource Allocation

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 Part III: Project Execution
 Monitoring and Information Systems
 Project Control
 Project Auditing
 Project Termination

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 WHAT IS A PROJECT?
 A project is a problem scheduled for
solution. J M Juran

 Problem - The gap b/w where you are &

where u want to be, with an obstacle that
prevents easy movement to close the gap.

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 Additional Definitions
 A project is a unique venture with a beginning
and an end, conducted by people to meet
established goals within parameters of cost,
schedule and quality/performance.
Buchanan & Boddy 92

 Projects are goal-oriented, involve the

coordinated undertaking of interrelated
activities, are of finite duration, accomplished
within allocated budget and are unique to a
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degree.
 Project vs. Process Work
Project Process
• Take place outside the • Ongoing, day-to-day
process world activities
• Unique and separate • Use existing systems,
from normal properties, and
organization work capabilities
• Continually evolving • Typically repetitive

A project is a temporary endeavor undertaken to

create a unique product or service.
PMBoK 2000
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 Elements of Projects
 Complex, one-time processes
 Limited by budget, schedule, and resources

 Developed to resolve a clear goal or set of

goals

 Customer-focused

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 Introduction
 Much of project management developed by the military
 Navy’s Polaris program
 NASA’s space program
 Strategic defense initiative
 Split the atom
 Project management has found wide acceptance in
industry
 Examples of projects
 Channel between England and France
 Introduce Windows Vista
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 Introduction Continued

 Main forces in driving the acceptance of

project and other forms of management:
1. The exponential growth of human knowledge
2. The growing demand for a broad range of
complex goods and services
3. 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
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 Examples of Major Projects Undertaken or
Planned in Pakistan
 • Lahore Rapid Bus Transit project
 •Tarbela and Mangla dams
 •Kalabagh dam (?)
 •Indus River basin irrigation projects
 •Karakorum Highway
 •Islamabad –Lahore Motorway
 •Jinnah International Airport at Karachi
 •Kot Addu power generation plant
 •Karachi Nuclear Power Plant
 •Karachi Steel Mill
 •Saindak copper mine
 •Port Qasim
 •Shah Faisal Mosque
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 •Shaukat Khanum Cancer Hospital
Common Examples of Major Projects
 Energy On-and off-shore oil and gas refineries, mineral oil
storage containers, national and transnational oil and gas
pipelines, hydro-, thermal and nuclear power stations and
power transmission infrastructure.
 Water Resources Irrigation projects, dams, flood protection
systems, desalination plants
 Transport Infrastructure Road, rail and canal networks,
bridges, air-, river-and seaports
 Public Works Sewage and sanitation, urban regeneration
schemes
 Architecture High-rise office buildings and apartment
complexes, important public buildings
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 Projects Tend to be Large
 Projects tend to be large
 The Channel Tunnel, or Chunnel
 Denver International Airport (In 2011 Denver International
Airport - passenger traffic with 52,699,298 passengers.)
 Panama Canal expansion project
 Three Gorges Dam, China
 Projects are getting larger over time
 Flying: balloons  planes  jets  rockets 
reusable rockets
 The more we can do, the more we try to do
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same power as FIFTEEN nuclear reactors

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Project Management Also Getting Smaller
1. More people are seeing the advantages
of project management techniques
2. The tools are become cheaper
3. The techniques are becoming more
widely taught and written about

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 Main Goals of Project Management
1. Time
2. Cost
3. Performance

 Time, cost, and performance are all related on

a project

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Direct Project Goals: Performance, Cost, Time

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Project Management Institute (PMI)
 The Project Management Institute (PMI)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

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 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

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 Trends in Project Management
 Achieving strategic goals
 Achieving routine goals
 Improving project effectiveness
 Virtual projects
 Quasi-projects

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 The Definition of a “Project”
 Modern project management began with the
Manhattan Project
 In the early days, project management was used
mainly for very complex projects
 As the tools became better understood, they began to
“trickle down” to smaller projects
 It has also moved out of just manufacturing to
services

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Major Characteristics of a Project
 Importance
 Performance
 Life cycle with a finite due date
 Interdependencies
 Uniqueness
 Resources
 Conflict

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 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

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

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 Project Life Cycles
 Conceptualization - the development of the initial
goal and technical specifications.
 Planning – all detailed specifications, schedules,
schematics, and plans are developed
 Execution – the actual “work” of the project is
performed
 Termination – project is transferred to the customer,
resources reassigned, project is closed out.

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The Project Life Cycle

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Time Distribution of Project Effort

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Man Hours
Project Life Cycles

Conceptualization Planning Execution Termination

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 Project Life Cycles and Their Effects
Client Interest

Project Stake

Resources

Creativity

Uncertainty

Conceptualization Planning Execution Termination

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 Managerial Actions
in the Project Life-Cycle Phases
 Conceptual Phase  Planning Phase  Execution Phase
 Determine that a  Define the project  Perform the work of
project is needed organization the project (i.e.
 Establish goals  Define the project design, construction,
 Estimate the targets production, Site
resources that the  Prepare the schedule activation, testing,
organization is for the execution delivery etc.)
willing to commit Phase  Termination Phase
 „Sell“ the  Define and allocate  Assist in transfer of
organization on the tasks and resources Project product
need for a project  Build the project  Transfer human and
approach team non-human resources
 Make key personnel to other
Appointments organizations
 Transfer or complete
Commitments
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 Reward personnel
Another Possible Project Life Cycle

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Risk During at the Start of the Life Cycle
Risk During the Life Cycle

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PROJ MGMT IN PAKISTAN

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 Proj Mgmt in Pakistan
 Role of Planning Commission
 Plans, Programmes and Projects
 Types of Plans, Pgms and Proj
 Idea generation and selection – How and why
 Projects Proposal, Formulation, Appraisal, and
Approval
 Sanctioning / Approving Authorities
 Implementation of Projects --- Use of computers
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 PROJ MGMT- WAY FORWARD
 Feasibility studies / Pilot Proj
 Formulation
 Appraisal
 Approval
 Implementation
 Evaluation
 Termination
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 FEASIBILITY STUDIES / PILOT PROJECTS
 Once the idea has been accepted and brainstormed at different
levels of the government, a feasibility or pre-feasibility study (A
formal survey to determine worthiness of the proposed project) is ordered
depending upon the size of the Plan or Programme to be
undertaken. The Feasibility Studies report back the following:
 The size and nature of the demand
 Available alternatives with costs
 Availability of needed manpower
 Costs estimates
 Financial outlay with benefits
 Major constraints (Technological / social / administrative)
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 PROJ FORMULATION
 Based on the feasibility study, the Proj formulation
takes place by filling up PC-1. Here are certain
kinks which need to be taken into account. The PC-
1 is normally filled up very ambitiously by the
person / org who was not involved with the Proj or
the feasibility study. Devoid of requisite data and
keenness to undertake / initiate the Proj usually lays
the first brick of possible failure. Lack of data places
immense burden on the Proj Manager to unearth
relevant data and endeavor to prove to his bosses of
the correctness of the Proj.
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 PROJ APPRAISAL
 It is a complex job to be done by professionals. The purpose of the
appraisal (PC-1) is to facilitate the decision regarding the approval of a
plan for implementation particularly the investment decisions. The
appraisal includes among others:
 Necessary modifications to original ideas to make them look attractive to
foreign donors
 Administrative, managerial and technical capability of the Org.
 Proj costs (Capital, Operational, Maintenance, Recurring, Establishment
expenditures, etc)
 Schedule of Work
 Financial phasing
 Review of the Proj for reasons of Objectives, Costs, and Time
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 PROJECT APPROVAL
 The most lethargic and at times most speedier
action consists of admin Approval and
Financial Approval. Most of the good Projects
never see the day light due absence of
financial approval. At times Projects are
started on the wrong demise that finances
would be made available in due course. In
fact, they never become available.
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 IMPLEMENTATION
 The Projects are implemented by a specially
selected team designated as Proj Team that
works under the guidance of Proj Mgr.

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 PROJECT EVALUATION

 A specially designated team chosen and

authorized by the higher organization usually
inspects and evaluates the Proj as per Proj
Appraisal criteria. This may happen on
completion or during different stages of the
Proj.

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