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What is a project? Project Management Institute, USA A project is a one shot, time limited, goal directed, major undertaking, requiring the commitment of varied skills & resources
A project is an interrelated set of activities that has definite starting and ending points and that result in a unique product or service A project is an endeavor to accomplish a specific objective through a unique set of interrelated tasks and the effective utilization of resources. It has a well-defined objective stated in terms of scope, schedule, and costs. Project s are “born” when a need is identified by the customer – the people or organization willing to provide funds to have the need satisfied.
Every project has three attributes Input characteristics What the project will consume? Raw material, energy, manpower, finance & organization Necessary to evaluate nature & magnitude of inputs
.May generate goods & services Must have clear idea about quantity & quality Also assess financial aspects Social cost benefit characteristics Large projects impacts the equilibrium of the society Careful evaluation of the sacrifice the society will make and benefit that will accrue have to be done EXAMPLES OF PROJECTS • Planning a wedding • Designing and implementing a computer system • Hosting a holiday party • Designing and producing a brochure • Executing an environmental clean-up of a contaminated site • Holding a high school reunion • Performing a series of surgeries on an accident victim CHARACTERISTICS OF PROJECT A project is a big work – basically it is a work – one whole thing – there can be contributions from many different people Special features that will distinguish a project from any ongoing activity e. can not go on endlessly . are summarized below Objectives: Fixed set.g. once achieved – the project ceases to exist Life Span: Has to end. production.
Single entity: main responsibility lies with Project Manager Team work: calls for team work Life cycle: Growth. Conventional Technology. also has a learning component Uniqueness: No two projects are exactly similar Change: Due to environmental factors or technology a project sees many changes Successive principle: Details of a project are revealed as the project progresses over time Made to order: Always made to the order of the customer Unity in Diversity: Interrelated set of activity but diverse High level of subcontracting Risk & Uncertainty: Every project has risk & uncertainty. Major. Medium. High Tech. Maturity & Decay. Modification PROJECT MANAGEMENT . Low Tech Size – Mega. Ill defined projects will have high degree of risk Types of Project Geo Spread – National & International Sector – Industrial & Non Industrial Technology – Non Conventional. Mini New or Existing – Expansion.
Higher profit margins. Execution 4. Improved productivity. physical. Better internal coordination. Controlling and 5. Project Time Management describes the processes required to ensure timely . and human resources. Higher quality and increased reliability. scope verification. Higher worker morale (less stress). scope planning. Closure IMPORTANCE OF PROJECT MANAGEMENT Better control of financial. It consists of initiation. Shorter development times. skills. and scope change control. tools and techniques to project activities to meet project requirements.” Project management is accomplished through the use of the following 5 processes: 1. scope definition. to complete the project successfully. Planning 3. Improved customer relations. Initiation 2. and only the work required. MANAGEMENT PRINCIPLES APPLIED TO PROJECT MANAGEMENT Project Scope Management describes the processes required to ensure that the project includes all the work required. Lower costs. Project management is “the application of knowledge.
quantitative risk analysis. Project Quality Management describes the processes required to ensure that the project will satisfy the needs for which it was undertaken. storage.completion of the project. and schedule control. It consists of resource planning. and team development. Project Communications Management describes the processes required to ensure timely and appropriate generation. and ultimate disposition of project information. It consists of organizational planning. risk identification. It consists of quality planning. and cost control. and quality control. information distribution. Project Risk Management describes the processes concerned with identifying. dissemination. activity duration estimating. cost estimating. staff acquisition. risk response planning. activity sequencing. and responding to project risk. analyzing. Project Cost Management describes the processes required to ensure that the project is completed within the approved budget. cost budgeting. performance reporting. Project Human Resource Management describes the processes required to make the most effective use of the people involved with the project. quality assurance. and risk monitoring and control. collection. . It consists of communications planning. qualitative risk analysis. and administrative closure. schedule development. It consists of activity definition. It consists of risk management planning.
or opportunity.PROJECT MANAGEMENT LIFE CYCLE • The first phase involves the identification of a need. – Different types of resources are utilized – Results in the accomplishment of the project objective . This phase results in the submission of a proposal. The need and requirements are usually written by the customer into a document called a request for proposal • The second phase is the development of a proposed solution to the need or problem. problem. • The third phase is performing the project. The customer and the winning contractor negotiate and sign a contract (agreement).
decreased quality etc. It can also be positive (new valuable product features due to the use of new technology or opening up a new market segment due to some project adjustments). project objectives: the project goals are at stake if a risk occurs. Severe negative risks can lead to the cancellation of a project whereas minor risks may slightly increase the completion time of a project.). IMPORTANCE OF PROJECT RISK MANAGEMENT Project risk management is the art and science of identifying.g. if it occurs. and developing realistic estimates Project Risk Management Processes . somebody becomes ill or the temperature drops below a certain point making a chemical process impossible. has a positive or negative effect on the prospects of achieving project objectives Three aspects of the definition are especially important: uncertain event: something may or may not happen. positive or negative effect: project risk is not necessarily negative (increased costs. but it can help improve project success by helping select good projects.• The final phase is terminating the project. analyzing. determining project scope. and responding to risk throughout the life of a project and in the best interests of meeting project objectives Risk management is often overlooked in projects. e. – Perform close-out activities – Evaluate performance – Invite customer feedback PROJECT RISK A project risk is an uncertain event that.
identifying new risks. and evaluating the effectiveness of risk strategies throughout the life of the project TYPES OF RISK and their MANAGEMENT Schedule Risk – Risk related to timely completion of the project or any time bound activity being a part of project. For ex Not enough people Too much parallelism . Risk management planning: deciding how to approach and plan the risk management activities for the project Risk identification: determining which risks are likely to affect a project and documenting the characteristics of each Qualitative risk analysis: prioritizing risks based on their probability and impact of occurrence Quantitative risk analysis: numerically estimating the effects of risks on project objectives Risk monitoring and control: monitoring identified and residual risks. are called schedule risks.export license Management pushes too much Schedule Risk Management Reduce scope of work Extend schedule Do more work in parallel Jump start project by purchasing technology . carrying out risk response plans.dependencies Equipment delays Information delays Permission delays .
Financial Risks – Any risk that occurs due to limitations of funds or involves mo Additional and unforeseen expenses Inflation issues due to schedule issues Contract penalties . Just can’t be done o equipment availability o technology availability Technology has surpassed your assumptions Availability of technically competent People Technical Risk Management Invest in Research and Development Hire experts Change approach Don’t do it! .technological change in the production process.late on delivery Reduction of funding Availability of necessary equipment Financial Risk Management Find ways to cut corners Less expensive hardware Reduce overheads Negotiate additional funds Change labour mix Technical Risks .Risk due to lackings in operational efficiency of the business caused due to technology for ex.
Sophistication of customer o Too high o Too low Customer Risk Management Formal reviews Specific agreements in writing Major Risk Factors Resources not yet part of project inventory Possibility of changes in project requirements Potential alteration of fixed project dates Unexpected losses of critical personnel Reduction of funding Technological achievements not realized Improper budgets or scheduling factors .Customer Risks – Customer or people risk is created when the expectations and requirements of the customer are not met.
Network Diagramming is a Critical Path Scheduling Technique used for controlling resources. NETWORK DIAGRAM Is a graphical depiction of Project tasks and their inter.TOOLS & TECHNIQUES OF PROJECT MANAGEMENT The Most commonly used methods are :- GANTT CHART NETWORK DIAGRAMS (PERT/ CPM) GANTT CHART A graphical representation of a Project that shows each task as a horizontal bar whose length is proportional to its time for completion.relationships. The distinguishing feature of a Network Diagram is that the ordering of Tasks is shown by connecting with its predecessor and successor tasks. CRITICAL PATH METHOD A scheduling technique whose order and duration of a sequence of task activities directly affect the Completion Date of a Project . the activities of a single worker.. in order of their start dates. A GANTT Chart is a horizontal bar chart that illustrates a Project schedule. GANTT Chart is often more useful to for depicting relatively simple projects or sub projects of a large project. In the GANTT Chart Time is displayed on the horizontal axis and the Tasks/ Activities are arranged vertically from top to bottom. or for monitoring the progress of activities compared to scheduled completion dates.
PERT is a technique that uses Optimistic time (O). BELOW GIVEN ARE THE SAMPLE DIAGRAMS FOR BETTER UNDERSTANDING OF STUDENTS DIAGRAM (a) . PERT is a technique used to calculate the Expected Time for a tasks.PROGRAM EVALUATION AND REVIEW TECHNIQUE One of the most difficult and most error prone activities when constructing a Project Schedule is the determination of the TIME DURATION for each task within a Work Breakdown Structure (WBS).Gantt charts DIAGRAM (b) – Network paths . specially when there is a high degree of complexity and uncertainty about a task. Pessimistic time (P) and Realistic Time (R) estimates to calculate the EXPECTED TIME (ET) or a particular task.
As a result. and then making a choice from among them. However. or interpersonal (personality or style clashes) issues. Decisions can be made or obtained (from the customer. or from a functional manager). Problems may be internal (a key employee is reassigned to another project) or external (a permit required to begin work is delayed). they may pertain to managerial (a functional group is not producing according to plan). the number of processes does not mean that project management is primarily planning—the amount of planning performed should be commensurate with the scope of the project and the usefulness of the information developed. . Problems need not necessarily be technical in nature (differences of opinion about the best way to design a product). Problem definition requires distinguishing between causes and symptoms. from the team.UNIT 1 ( PART 2) PROJECT PLANNING Project Planning – Planning is of major importance to a project because the project involves doing something that has not been done before. Project scope – The scope is what must be done to produce the project's end result – the system you need – meeting your requirements! Project scope deals with following questions – Why this project? • Is it feasible? • Who are possible partners in this project? • What should the results be? • What are the boundaries of this project (what is outside the scope of the project)? Problem Statement: Problem statement involves a combination of problem definition and decision-making. Decision-making includes analyzing the problem to identify viable solutions. there are relatively more processes in this section. Planning is an ongoing effort throughout the life of the project.
Once made.Following are the reasons of success of a project : 1. 4. Decisions also have a time element to them—the “right” decision may not be the “best” decision if it is made too early or too late. Influencing the organization also requires an understanding of the mechanics of power and politics. Both power and politics are used here in their positive senses. decisions must be implemented. to overcome resistance. to change the course of events. 6. SUCCESS CRITERIA . Influencing the organization involves the ability to “get things done. Pfeffer defines power as “the potential ability to influence behavior. customer. studying the project implementation & environment APPROVAL PROCESS – Approval process deals with influencing the organization. partners. 3.” It requires an understanding of both the formal and informal structures of all the organizations involved—the performing organization. and to get people to do things that they would not otherwise do. Sound project management processes Project tied to the organization’s business goals Senior management commitment Good change management Detailed requirements Realistic schedule . as appropriate. and numerous others. Goals help in measuring the actual performance with the desired one. contractors. 5. 2. PROJECT FEASIBILITY – Feasibility should be evaluated by identifying project characteristics.” PROJECT GOALS –Project goals refers to the objectives of the business whether long term and short term for which the business operates.
. Skilled and appropriate team members with defined roles and responsibilities 10. DEPENDING UPON THE MARKS OF THE QUESTION ) SOCIAL COST BENEFIT ANALYSISSocial cost refers to all those harmful consequences and damages which the community on the whole sustains as a result of productive processes. Under social cost benefit analysis the the focus in on social costs and benefits of the project.7. Features of SCBA are – Assessing the desirability of projects in public. The effect of risk and uncertainity in investement. Identification and measurement of costs and benefits. Empowered project manager 9. Availability of funding ( PLEASE EXPLAIN THE ABOVE POINTS IN YOUR OWN WORDS . Good stakeholder relationships 8.
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