UNIT 1 - PROJECT MANAGEMENT - INTRODUCTION

Defining a 'Project" and "Project management”

A project involves a single, definable purpose, end- item, or result, usually specified in terms of cost, schedule, and performance.
Every project is unique in that it requires doing something different than was done previously. Even in ‘routine’ projects…..some
factor makes each project different.
A project is a one -time activity, never to be exactly repeated again.
Projects are temporary activities. An ad-hoc organization of personnel, material, and facilities is assembled to accomplish a goal,
usually within a specified time frame.
Projects cut across organizational lines because they need the skills and talents from multiple professions and organizations.
Since every project is different, it involves unfamiliarity. It may mean new technology, and for the organization – risk and
uncertainty.
A project is the process of working to achieve a goal; during the process, the project passes through distinct phases called the
project life cycle. The tasks, people, organisations, and other resources change as the project moves from one phase to the next.
Projects are characterized by teamwork. The teams are temporary, work for the duration of the project and are disbanded when
the project is completed.
Projects are also characterized by outsourced or contractual work. Since organizations might not have the capability for all types
of work, some portion of the project work could be outsourced or completed through contracts.
Definitions
PMI Definition: A project can be defined as a temporary endeavour undertaken to create a unique product or service.
A project is defined as the achievement of a specific objective which involves a series of activities and tasks that consume
resources.
Project management is defined as the process of controlling the achievement of project objectives
The British Standard for Project Management defines Project Management as
“The planning, monitoring, and control of all aspects of a project and the motivation of all those involved in it to achieve the
project objectives on time and to the specified cost, quality and performance”
The Need of Project Management
Mankind has been involved in projects since the beginning of recorded history, the nature of projects and environments have
changed.
Many modern projects involve great technical complexity and require much diversity of skills.
Managers are faced with the problem of putting together and directing large temporary organizations, constrained resources,
limited time schedules, and environmental uncertainty.
To cope with complex kinds of activities and great uncertainty, new forms of project organizations and new practices of
management have evolved.
Examples
 A new product launch
 Installation of a new employee benefits plan
 Installation of new equipment
 A new web-site for an organisation
Efforts such as these require more than the traditional management approaches for planning, organisation and control.
They represent activities that require modern methods of project management to fulfill difficult technological or market related
performance goals in spite of limitations on time and resources.
The Importance of Project Management
Factors Leading to the Increased Use of Project Management:
 Compression of the product life cycle
 Global competition
 Knowledge explosion
 Corporate downsizing
 Increased customer focus
 Small projects that represent big problems
The scope of project management
Composing a song, writing a novel, making a sculpture or a painting, are one-person projects.
Organizing a family function, a wedding, moving house, renovating own house, are examples of group efforts.
A conference, a product launch, a merger/ acquisition, are projects for larger groups.
Efforts at saving human life and recovering from man-made or natural disasters become projects.
Examples are Soviet nuclear disaster, earthquake in Bhuj (Gujarat) and then in Kashmir, the tsunami….
There is large diversity in the kinds of project efforts.
The degree of complexity and uncertainty in terms of time, cost and performance is different.
Complexity is measured by magnitude of effort, number of groups and organizations that need to be coordinated, and diversity
in skills or expertise needed to accomplish the work. Time and resource commitments tend to increase with complexity
Uncertainty is measured with by difficulty in predicting the final outcome in terms of time, cost and technical performance.
Most projects have uncertainty in one or two dimensions. Complex projects have uncertainty in all three dimensions. (ISRO’s
Chandrayaan)
More frequently something is done, less uncertainty is there.
Project Goals
 Nearly every project has three major goals- to work for the client/ end-user in accordance with budget, schedule, &
performance requirements.
 The budget is the specified/ allowable/ target cost for the work to be done (project)
 The schedule is the time period over which the work will be done and the target date for completion
 The performance requirements specify what is to be done to reach the end-item or final result.
Project management has evolved as an efficient way to maintain focus on all three goals and control the necessary trade-offs
between them. It integrates resources and puts emphasis on the ‘wholeness’ of the project
The Key Features: Three key features distinguish project management from earlier traditional forms of mgmt:
The Project Manager
The Project Team
The Project Management System
The Project Manager
He is the person with the single, overriding responsibility to plan, direct, and integrate the work efforts of participants to achieve
project goals.
He is the person who is accountable for the project and is totally dedicated to achieve its goals.
The project manager coordinates efforts across the functional areas and integrates the planning and control of costs, schedules,
and work tasks.
 Manages temporary, non-repetitive 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.
The Project Team
Projects are team-work, perhaps more than any other human endeavor.
A single cohesive team of individuals and groups is formed which works towards a common goal.
The work is accomplished by a group of people, often from different functional areas and organizations.
Depending on resource requirements of the project, the size and composition of the team may fluctuate, and the team may
disband after completion.
The Project Management System
The system is composed of organisation structure, information processing, and practices and procedures that permit integration
of the ‘vertical’ and ‘horizontal’ elements of project organizations.
‘Vertical’ elements – break down of project tasks
‘Horizontal’ elements – the functional units
The ‘system’ provides for integrative planning & control.
Integrative planning and control
As projects move from one phase to next, resource requirements and responsibilities change.
The Project Mgmt system provides the means for:
Identification of tasks; Identification of resource requirements and costs; establishing priorities; Planning and updating
schedules; monitoring and controlling end-item quality and performance; measuring project performance
The Technical and Socio-cultural Dimensions of the Project Management Process
The Technical Dimension –
Scope, WBS, Schedules, Resource Allocation, Baseline Budgets, Status Reports.
The Socio-Cultural Dimension –
Leadership, Problem Solving, Teamwork, Negotiation, Politics, Customer Expectations.

The Key Terms

Project
Project Management
Program
Project life cycle
The Manager
The Team
Integrated Management of Projects
Socio-technical dimensions of project management