Professional Documents
Culture Documents
Project Management Module Chapter 01
Project Management Module Chapter 01
1 Definitions of Project
The term “project” has a wider meaning. A project is a collection of works or activities which are
expected or planned to be completed in a predetermined period of time and within an acceptable
budget.
A project is characterized by a work or job content, also called scope, an expected completion
time and a budget allocated for its successful completion.
32
1.2 Characteristics of a project:
A project is a collection of works or activities which are expected or planned to be completed in
a predetermined period of time and within an acceptable budget. Any project can be
characterized by these characteristics:
1. Objectives: A project has a set of objectives or a mission. Once the objectives are
achieved the project is treated as completed.
2. Temporary: Every project has a set of objectives or mission. Once the objectives are
achieved the project is treated as completed.
3. Life cycle: A project has a life cycle. The life cycle consists of five stages i.e.
conception stage, definition stage, planning & organizing stage, implementation stage
and commissioning stage.
4. Uniqueness: Every project is unique and no two projects are similar. Setting up a
cement plant and construction of a highway are two different projects having unique
features.
5. Team Work: Project is a team work and it normally consists of diverse areas. There
will be personnel specialized in their respective areas and co-ordination among the
diverse areas calls for team work.
6. Complexity: A project is a complex set of activities relating to diverse areas.
7. Risk and uncertainty: Risk and uncertainty go hand in hand with project. A risk-free,
it only means that the element is not apparently visible on the surface and it will be
hidden underneath.
8. Customer specific nature: A project is always customer specific. It is the customer
who decides upon the product to be produced or services to be offered and hence it is
the responsibility of any organization to go for projects/services that are suited to
customer needs.
9. Change: Changes occur throughout the life span of a project as a natural outcome of
many environmental factors. The changes may vary from minor changes, which may
have very little impact on the project, to major changes which may have a big impact or
even may change the very nature of the project.
32
10. Optimality: A project is always aimed at optimum utilization of resources for the
overall development of the economy.
11. Sub-contracting: A high level of work in a project is done through contractors. The
more the complexity of the project, the more will be the extent of contracting.
12. Definite time limit: A project has a definite time limit. It can’t continue forever.
13. Progressive Elaboration: With the progress of a project continuous investigation and
improvement become available and all this allows producing more accurate and
comprehensive plans.
14. Response to environment: Projects take shape in response to environments.
15. Forecasting: Forecasting the demand for any product or service that the project is
going to produce is an important aspect. Only if the forecast gives positive indications,
the project is taken up for further study.
16. Rational choice: Since a project is a scheme for investing resources the choice of a
project is done after making a study of all the available avenues for investing resources
and a rational choice among the available avenues is made.
17. Principle of succession: How a project is going to be implemented is not fully known
beforehand. More about a project is known and project intricacies come to light only
with the passage of time and hence project components get modified and finalized
successively with the passage of time as the project progresses.
18. Control Mechanism: All projects will have pre-designed control mechanisms in order
to ensure completion of projects within the time schedule within the estimated cost and
at the same time achieving the desired level of quality and reliability.
32
BASIS FOR
PROJECT PROGRAM
COMPARISON
Though projects, programs, work package and tasks are similar words yet there slide difference
between them. These are discussed below:
32
1. Project: The term project can be defined as one-time undertaking to create a new product
or service having a certain beginning and ending point. It is an organizational unit which
is explicit dedicated to the pursuance of a goal i.e. satisfactory accomplishment of
developing a product in time within the budget in accordance with the desired
performance level.
A project comprises a set of routine and interlinked activities with a goal which has a definite
goal and requires to be completed with a stipulated time and resources. The projects may
vary regarding size i.e. small, medium, large and very large. After the accomplishment of the
project a final product is received. The basic features of a project are:
It has a purpose.
It is unique.
It is time bound.
It is undertaken by a team.
It is dynamic in nature.
2. Program: The program can be defined as a framework of plans of work which comprises
of a set of projects that are complementary to one another and aligned in proper sequence
to achieve economies of scale. Projects are grouped into a single program when the
resultant benefit of the collection supersedes the benefits of managing individual projects.
It consists of various projects which are started to reach organizational goals.
It is undertaken to improve the overall performance of the organization as it is related to
business process re-engineering change management etc. Implementation of programs
requires laying down of policies, procedures and methods in a coordinated manner.
3. Task: In project management, a task is an activity that needs to be accomplished within a
definite period of time or by a deadline to work towards work-related goals. A task can
be broken down into assignments which should also have a defined start and end date or a
deadline for completion. One or more assignments on a task puts the task under
execution. Completion of all assignments on a task normally renders the task completed.
Tasks can be linked together to create dependencies.
32
Tasks completion generally requires the coordination of others. Coordinated human
interaction takes on the role of combining the integration of time, energy, effort, ability
and resources of multiple individuals to meet a common goal. Coordination can also be
thought of as the critical mechanism that links or ties together the efforts on the singular
level to that of the larger task being completed by multiple members. Coordination allows
for the successful completion of the otherwise larger tasks that one might encounter.
4. Work Package: A work package is the smallest unit of a Work Breakdown Structure.
When preparing a work breakdown structure using the decomposition technique
deliverables are generally broken down into smaller, more manageable chunks of work.
This process of deconstruction continues until the deliverables are small enough to be
considered work packages. Each of these packages should be small enough to help the
project manager estimate the duration and the cost. Work packages can be scheduled,
cost estimated, monitored and controlled.
A. Classification based on duration: It can be long term, medium term and short term.
Long-term projects have a life of more than 10 years whereas mid-term projects have a
life of 5 to 10 years. Short-term projects last only for less than 5 years.
B. Classification based on investments: It is based on how much initial investment is
needed to start the project. In India, investment outlay of above 20crore is considered
high investment whereas an investment outlay between? 5crore to 20crore is considered
medium sized industry. And investment below 5crore is considered low investment
industry. Industry with initial outlay below 7.50 lac is considered cottage industry.
C. Classification based on ownership: A project can be owned by government, public
sector, corporate, cooperative, partnership firm or proprietorship firm.
D. Classification based on risk: This is the most commonly used basis of project
classification. Projects are basically classified as green field project, brown field project,
32
divestment project and modernization or replacement project. The classifications and
sub-classifications on the basis of risk are depicted in the following figure:
Projects
Vertical
Expansion Diversification
Intigration
Project Project
Project
32
with seasonal or cyclic demand factors such as cotton industries and wheat floor
mill. It is of two types.
a. Concentric diversification project: Concentric diversification occurs when a firm
adds related products or markets. The goal of such diversification is to achieve
complete range of products. This allows an organization to achieve synergy.
b. Conglomerate diversification: Conglomerate diversification occurs when a firm
diversification into areas that are unrelated to its current line of business. Synergy
may result through the application of management expertise or financial resources but
the primary purpose of conglomerate diversification is to reduce the risk.
3. Divestment Project: Divestment project is another important strategy which involves
retrenchment of some or all of the activities in a given business of the firm or sells out
some of the businesses as such. It involves redefining of business. There are various
causes for a company going for divestment.
4. Modernization/Replacement Project: In recent times, technology up gradation has been
very rapid. Only those organizations can survive which cope up with the ongoing
technological changes. Firms need to upgrade their technology. Such projects up
gradation of technology may need capital investments and are called modernization
projects.
The project management institute (PMI) was founded in 1969 to foster the growth and
professionalism of project management. Project management is a methodical approach to
planning and guiding project processes from start to finish. It is the method of planning the plan.
It starts from project definitions and ends with goal achievement.
Project Management Institute, USA defines project as, “Project management is the process
and activity of planning, organizing, motivating and controlling resources, procedures and
protocols to achieve specific goals in scientific or daily problems.”
32
PMBOK defines project management as, “The application of knowledge, skill, tool and
techniques to project activities in order to meet stakeholder’s needs and expectations from a
project.”
Bridge group defines it as, “The methods and disciplines used to define goals, plan and monitor
tasks and resources, identify and resolve issues and control costs and budgets for a specific
project.”
According to M.R. Gupta, “Project managements can be defined as an art of managing new
challenges coming frequently and breaking the whole challenge into smaller, comfortable
activities to accomplish them in an effective and efficient way.”
There are three major interdependent objectives / constraints for every project; time, cost and
scope which are known as triple constraints. This is also known as project Management Triangle.
Time Cost
Quality
Scope
Let’s try to understand each of the element of project triangle (Triple Constraints) and then
how to face challenges related to each.
1. Time: A project’s activities can either take shorter or longer amount of time to complete.
Completion of tasks depends on a number of factors such as the number of people working on
the project, experience, skills, etc.
Time is a crucial factors which is uncontrollable. On the other hand, failure to meet the deadlines
in a project can create adverse effects. Most often, the main reason for organizations to fail in
32
terms of time is due to lack of resources. There are so many tools and techniques which can be
used to manage time in a project.
2. Scope: Scope looks at the outcome of the project undertaken. This consists of a list of
deliverables, which need to be addressed by the project team.
A successful project manager will know to manage both the scope of the project and any change
in scope which impacts time and cost. Shortage of skills, funds or time may lead to reduced
scope of any project.
3. Cost: It’s imperative for both the project manager and the organization to have an estimated
cost when undertaking a project. Budgets will ensure that project is developed or implemented
below a certain cost.
Sometimes, project managers have to allocate additional resources in order to meet the deadlines
with a penalty of additional project costs.
Quality: Quality is not a part of the project management triangle, but it is the ultimate objective
of every delivery. Hence, the project management triangle represents implies quality.
Many project managers are under the notion that ‘high quality comes with high cost’, which to
some extent is true. By using low quality resources to accomplish project deadlines does not
ensure success of the overall project.
Like with the scope, quality will also be an important deliverable for the project
Project Management is the process and activity of planning, organizing, motivating, and
controlling resources, procedures and protocols to achieve specific goals in scientific or daily
problems.
32
2. Improved / increased / Enhance Customer Satisfaction: Whenever you get a project done
on time under budget, the client walks away happy. And a happy client is one you’ll see again.
Smart project management provides the tools that enable this client/ manager relationship to
continue.
3. Enhanced Effectiveness in Delivering Services: The same Strategies that allowed you to
successfully complete one project will serve you many times over.
4. Improved Growth and Development within your Team: Positive results not only command
respect but more often but more often than not inspire your team to continue to look for ways to
perform more efficiently.
5. Greater Standing and Competitive Edge: This is not only a good benefit of project
management within the workplace but outside of it as well; word travels fast and there is nothing
like superior performance to secure your place in the marketplace.
7. Better Flexibility: Perhaps one of the greatest benefits of project management is that it allows
for flexibility. Sure project management allows you to map out the strategy you want to take see
your project completed. But the beauty of such organization is that if you discover a smarter
direction to take, you can take it. For many small-to-midsize companies, this alone is worth the
price of admission.
8. Increased Risk Assessment: When all the players are lined up and your strategy is in place
potential risks will jump out and slap you in the face. And that’s the way it should be. Project
management provides a red flag at the right time: before you start working on project
completion.
10. Increase in Quality: I save the best for last. An increase in quality is often the result of
better efficiency, a simple reminder regarding the benefits of project management.
32
Loss of control, Coordination breakdowns, security issues and interpersonal conflicts are major
disadvantage of project management. The disadvantages of project management are given below:
1. High Cost: Project management is a costly and difficult process. Project management may
need proper training.
2. Increased Complexity: Project management is a complex process with multiple stages. Some
experts have a tendency to complete everything, which may confuse the team and cause delays in
project delivery. They can also become too rigid or precise in their plans, creating a stressful
environment within the organization.
3. Communication Overhead: When a project management team is the haired new employees
joined in the company. This adds an extra layer of Communication and may not always match
your organizational culture. That’s expert recommend keeping your team as small as possible.
The larger a team is, the higher the communication overhead.
4. Lack of Creativity: Sometimes project management leaves little or no room for creativity.
Team leaders either focus excessively or the management processes or set tight deadlines,
forcing their staff to work within strict parameters. This can discourage creative thinking and
hamper innovation.
1. Undefined Goals- When goals are not clearly identified, the whole project and team can
suffer. When upper management cannot agree to or support undefined goals, the project in
question typically has little chance of succeeding. The project manager must ask the right
questions to establish and communicate clear goals from the outmost.
2. Scope Changes- Also known as scope creep, this occurs when project management allows the
project’s scope to extend beyond its original objective. Clients and supervisors may ask for
changes to a project, and it takes a strong project manager to evaluate each request and decide
how and if to implement it, while communicating the effects the on budget and deadlines to all
stakeholders.
32
3. Inadequate Skills for the project- A project sometimes requires skills that the project’s
contributors do not possess. Project management training can help a project leader determine the
needed competencies, asses the available workers and recommend training, outsourcing or hiring
additional staff.
4. Lack of Accountability- A project manager’s leadership qualities can shine when each
member of the team takes responsibility for his or her role in achieving project success.
Conversely, a lack of accountability can bring a project to a complete halt. Finger-pointing and
avoiding blame are unproductive, but all-too-common features of flawed project management.
Learning to direct teams toward a common goal is an important aspect of project management
training.
5. Improper Risk Management- Learning to deal with and plan for risk is another important
piece of project management training. Risk tolerance is typically a desirable project manager trait
because projects rarely go exactly to plan. Gathering input, developing trust and knowing which
parts of a project are most likely to veer off course are aspects of the project manager’s job.
6. Ambiguous Contingency Plans- It’s important for project managers to know what direction
to take in pre-defined “what-if” scenarios. If contingencies are not identified, the entire project
can become mired in an unexpected set of problems. Most likely to identify potential problem
areas can lead to a smoother and successful project.
7. Poor Communication- Project managers provide direction at every step of the project, so
each team leader knows what’s expected. Effective communication to everyone involved in the
project is crucial to its successful completion.
32
Managing Expectation: An Important Project Manager Attribute
8. Impossible Deadlines- A successful project manager knows that repeatedly asking a team for
the impossible can quickly result in declining morale and productivity. The odds of successfully
completing a project under unreasonable deadlines are generally not feasible expectations.
10. Lack of stakeholder Engagement- A disinterested team member, client, CEO or vendor can
destroy a project. A skilled project manager communicates openly and encourages feedback at
every step to create greater engagement among participants.
The Project Manager is responsible for delivering the project and has all the authority to plan and
the project on daily basis. She /He delegates their duties in following manner and covers
following duties in their task delegation:
A. Planning: Project Managers needs to deeply understand what the project requirements are
and then accordingly plan
B. Organization: In this stage project manager’s needs to plan the team structure based on
organization resources. Here the human infrastructure is defined for the project where the main
task is to identify roles and responsibilities of each person is defined to meet the project delivery.
It covers all the personal resources required either as a full-time or part time.
C. Leading: Project Manager once they have planned and set up the project organizational
structure now needs to ensure every entity involved in project are functioning as per the pre-
defined plane to attain the desired objective.
32
D. Controlling: As we discussed that project can sometime go off-track due to some
unexpected demand of the situation or due to chaos arising because of the dynamism. To bring
the project on track project managers needs to implement the project control mechanism which
involve.
Finding Faults and take corrective measure to overcome loop holes causing the project delay.
Project management entails having the following attributes that are essential in becoming an
effective project manager:
One of the qualities of a good manager is being a good communicator so that he can connect
with people at all levels. The project manager must clearly explain the project goals as well as
each member’s tasks, responsibilities, expectations and feedback.
Effective project management means having strong leadership qualities such as being able to
motivate his team and drive them to maximum performance so that they can achieve their goals.
An effective project manager needs to have decision-making skills because there will always be
decisions that need to be acted on
Technical expertise
Project manager needs to have sound technical knowledge to understand the issues that are
related to the technical aspect. Knowledge of theory as well as the technical side can greatly help
the manager in taking strategic initiatives when needed.
An effective project manager can articulate the vision to his team members very well. A
visionary person can lead his people to the right direction as well as easily adapt to the changes
that come in the way.
32
Team-building skills
Project managers need to know how to give each of them the importance they need by focusing
on their positive traits. He has to be fair and just in the way he treats them.
Although an effective leader is said to share problem-solving responsibilities with the team, we
expect our project leaders to have excellent problem-solving skills themselves.
As the project goes on, certain incidents could take a toll on the project’s momentum and test the
project manager’s patience. It is essential that a project manager keeps his calm at all times and
be consistently grounded so as not to lose himself and adversely affect his relationship with the
team
One of the qualities needed for effective project management is the ability to negotiate. In times
that conflict arise due to differences in opinion, project managers need sheer negotiating skills to
settle the issue and maintain harmony in the team.
Empathetic
Understanding and caring for people as well as being grateful for their help are a few of the
things that an empathetic leader shows to his members. It includes understanding the needs of
the project and its stakeholders
Integrity
Leadership based on integrity represents nothing less than a set of values others share, behavior
consistent with values and dedication to honesty with self and team members. In other words the
leader "walks the talk" and in the process earns trust.
Competence.
32
A good manager knows what he is doing, can initiate new projects as well as face the challenges
that come with them.
Accountability
Accountability makes projects successful. When the manager is accountable for his/her decisions
and actions, the project is likely to be delivered according to the expectations of the executive
staff.
The project Life Cycle refers to a series of activities which are necessary to fulfill project goals.
Some of the important definition of project life cycle are given below.
1. According to Mark Hazletion, “The project life cycle refers to a logical sequence of
activities to accomplish the project’s goals or objectives.”
3. According to M.R Gupta, “A project has a beginning and an end and passes through several
phases of development known as life cycle phases.”
Every project has certain phases of development. A clear understanding of these phases allows
managers and executives to maintain control of the project more efficiently. The project life
cycle defines the phases that connect the project from the beginning to its end. The phases are
described differently authorities, but the generic phases remain the same and are
1. Project initiation
2. Project planning
3. Project execution, monitoring and control
4. Project closure
The schematic representation of a project life is shown in the following life of cycle.
1. Project
Initiation Project
Post
implementation definition
32
2. Project
4. Project Project planning
closure
Communication
Monitoring Detailed
and control planning
3. Project
execution
1.13 Project life cycle with effort level: representation of a project life
A schematic
The project life cycle typically passes sequentially through four stages: defining, planning,
executing, and delivering. The starting point begins the moment the project is given the go-
ahead. Project effort starts slowly, builds to a peak, and then declines to delivery of the project to
the customer.
Defining stage: Specifications of the project are defined; project objectives are established;
teams are formed; major responsibilities are assigned.
1. Goals
32
2. Specifications
3. Tasks
4. Responsibilities
Planning stage: The level of effort increases, and plans are developed to determine what the
project will entail, when it will be scheduled, whom it will be at quality level should be
maintained, and what the budget will be.
1. Schedules
2. Budgets
3. Resources
4. Risks
5. Staffing
Executing stage: This is a major portion of the project where work takes place, both physical
and mental. The physical product is produced (a house, Technology application, new device).
Time, cost, and specification measures are used for control and question like these below need to
be answered:
Closing stage: Closing a project includes three main activities: delivering the project product to
the customer, redeploying project resources, and post project reviews. Delivery of the project
might include customer training and documentation transfer. Redeploying resources usually
involves releasing project equipment or materials to other projects and finding new assignments
for team members. Prost project reviews often include assessing the project’s performance as
well as capturing lessons learned.
1. Train customer
32
2. Transfer documents
3. Release resources
4. Evaluation
5. Lessons learned
In practice the project lifecycle is used be some project groups to depict the timing of major tasks
over the life of the project. One example might be, the design team might plan a major
commitment of resources in the defining stage, while the quality team would expect their major
effort to increase in the later stages, while the quality team would expect their major effort to
increase the later stages of the project. Because most organizations have a portfolio of projects
going on concurrently, each at a different stage of each project’s life cycle, careful planning and
management at the organization and project levels is imperative.
What would be the collective demand of the planned product / service in future?
To answer the above questions, the market analyst needs a broad variety of information and
suitable forecasting methods. The kinds of data required are:
Formation of competition
32
Cost structure
Flexibility of demand
1.15 Whether the availability of raw materials, power, and other inputs has been
recognized?
1.18 Whether the supplementary equipment’s and auxiliary engineering works have been
given for?
1.20 Whether the planned layout of the site, building, and plant is sound?
32
1.22 Whether the technology planned to be employed is suitable from the social plant of
view?
Financial analysis tries to ascertain whether the planned project will be financially feasible in the
sense of being able to meet the saddle of servicing debt and whether the planned project will
convince the return expectations of those who provide the capital. The feature that have to be
looked into while conditioning financial appraisal are the following:
Economic analysis is also referred to as social cost benefit analysis and is concerned with
evaluating a project from the larger social point of view. In such a judgment the focus is on the
social costs and benefits of a project which may usually be different from its economic costs and
benefits. The questions sought to be answered in social benefit analysis are the following
1.15 What are the direct economic benefits and costs of the project measured in terms of
efficiency prices and not in terms of market prices?
1.16 What would be the impact of the project on the allocation of income in the society?
32
1.17 What would be the outcome of the project on the level of savings and investment in the
society?
1.18 What would be the involvement of the project towards the achievement of certain merit
wants like self-sufficiency, employment, and social order?
In recent years, environmental concerns have assumed a great deal of importance – and rightly
so. Ecological analysis should be done particularly for major projects which have significant
ecological inference like plants and irrigation schemes, and environmental – polluting industries
like bulk drugs, chemicals and leather processing. The key questions raised in ecological analysis
are the following
1.14 What is the likely harm caused by the project to the environment?
1.15 What is the cost of reinstatement measures needed to make sure that the damage to the
environment is contained within acceptable limits?
Project stakeholders are entities that have an interest in a given project. These stakeholders may
be inside or outside an organization which:
1. Sponsor a project, or
32
The following are examples of project stakeholders:
Project leader
Senior management
Project team members
Project customer
Resource Managers
Line Managers
Project testers
32
Following are 13 factors in project management for choosing technology. Keep in mind that a
poor selection will yield a poor result.
1. Financial stability: Tough it might feel awkward to question a candidate about its
financial stability; it is an essential part of the due diligence process. For one thing, you
want assurances that the provider will be around for the long term. For another, if you are
signing a sizable contract, you’ll need to ascertain that the provider has adequate financial
resources to provide the support you require.
2. Business experience: How much experience does the candidate have in providing
logistics technology services in general? How about in your particular industry? Finding
a partner that already knows something about your industry shortens the learning curve.
3. Management depth and strength: When you sign an outsourcing agreement, you’re not
just purchasing a service; presumably you’re also purchasing expertise. Make it a point to
check out the people at the top.
4. Reputation: Seek out some of the provider’s clients and talk to them about their
experience with the company. One question to ask: Does the provider simply do what it’s
told or does it constantly seek out ways to improve its capabilities and service to clients?
5. Strategic direction: Just as your company should have a business strategy, so should the
technology provider. Surprisingly, many do not- and a large percentage of those that do
seem to have a planning horizon of one afternoon! You might argue that the provider’s
strategy should be the same as the client’s, and that’s true to a point. But a well-managed
service firm should have its own goals and objectives as well. It should also have
commitment and direction.
6. Technology: There’s no substitute for a careful, in-depth evaluation of the provider’s
products and current operations. Assign a qualified person or team to assess the quality
and efficiency of the candidate’s technology and services. Don’t accept any excuses here.
State-of the-art technology such as blade server and storage area network capacity and
24/7 worldwide accessibility will be critical.
7. Global capability: Can the candidate meet all of your global needs either by itself or
through existing alliances? Be careful on this one. It’s not enough to be able to locate
china on the map!
32
8. Commitment to continuous improvement: Is the provider committed to ongoing
performance enhancement? Does it have a formal procedure for continuous
improvement?
9. Growth potential: If, like most companies, you anticipate growth in sales volumes,
product lines or markets, you need a partner who will be able to keep up. Make sure the
service provider is in a position to support your growth.
10. Security: Today, it’s essential to secure your technology against not only compromise or
interruption, but also against infiltration by strangers. Make sure the candidate has
backup systems and the latest security protection methods.
11. Chemistry and compatibility: Chemistry isn’t just a factor in picking a spouse. It’s also
something to consider when choosing a software partner. Follow your instincts and heed
your intuition. If you have concerns about personal chemistry and compatibility at the
outset, think twice about going ahead with the deal. The situation is unlikely to improve
over time.
12. Ethics: If we’ve learned one thing from Enron and Bernie Madoff, it’s this: You need to
be extremely careful about whom you deal with. Ask candidates about their codes of
ethics. Though only the larger providers are likely to have formal ethics policies, even the
smaller players should at least have some kind of code of ethics for their employees. But
keep in mind that a written policy is no guarantee of ethical conduct. In the words of
Mason Cooley, “Reading about ethics is about as likely to improve one’s behavior as
reading about sports is to make one into an athlete.”
13. Cost: Though price need not necessarily be the least important of your selection criteria,
neither should it be the foremost consideration. The manager who selects a provider
based solely on cost has committed to a technology strategy that has little chance of
success. Ideally, cost should be a factor only in deciding among candidates that meet all
other criteria.
When Project Managers plan implementations, they often do not adequately anticipate failure
despite the risks associated with any project. Rather, they plan for the best case scenarios driven
32
by the budget, deliverables, sponsor expectations and deadlines. And despite their best efforts at
project management, failure rates remain high.
Effective project steering has the following prerequisites:
The nature of the implementation processes will depend on the type and size of the project.
Scope, time, cost, risk, quality, project organization, human resources, communications and
procurement must be managed.
One of the characteristics of a project is that there is a define starts and end date. The following
options can be considered when determining the project start date.
1. When the idea is generated: Some company seriously consider this option. The
definition you choose can depend on what the implication is and some companies try to
focus on the time between when an idea is generated and when the idea is fulfilled
through a project. Their concern is that there is too much time to implement good ideas.
Tracking a project from the time the original idea was surfaced provides visibility on this
total length of time.
2. When a budget is approved: This definition is a little more concrete than the prior idea.
In this definition, an idea has been generated and has made it far enough along that a
cost/benefit statement has been prepared. The project has also made it through the
prioritization process and an actual budget has been approved. Keep in mind that the
32
budget may have been approved during the prior year’s business planning process. The
actual work may not start until the following year. Therefore, this definition again seems
to start the clock too early.
3. When a project manager is assigned: This one is more common. It’s hard to say that a
project has started before a project manager is assigned. When the project manager is
assigned, the project planning and definition begins and the meat of the project starts.
4. When the project charter is approved: In some organizations, the project officially
starts when the customer approves the project charter document. Some companies require
an approved project charter and schedule before the project team can be allocated. They
do this to ensure that the upfront agreement is in place before project work begins.
5. When the project kickoff meeting is held: Using this definition, the planning and
definition work is considered to be “pre-project” work. All projects start with a formal
kickoff meeting between the client and the project team. When the kickoff meeting is
held, the planning has been completed, the client has approved starting the work, and the
project team has been allocated. The kickoff meeting is the time to tell everyone that the
project is ready to begin.
32
objectives change evolve. Without redirection, project & deliverables end up failing to
meet expectations.
2. Later & delayed projects: Late projects wreak havoc, delaying the time at which a
company can start reaping business benefits, thwarting precise payback period
calculating & disrupting the long term return on investment.
5. Overlapping & redundant projects: Overlapping projects are responsible for major
inefficiencies & wasted budgets, time & resources. At their worst, they undermine each
other progress & potential benefits. Redundant & duplicative projects are also
unprofitable, increasing costs, prolonging schedules & diverting resources from more
deserving projects.
6. Resource conflicts: companies rarely have sufficient resources to staff all projects
concurrently. As such, project complete against each other for resources & people are
often assigned to several projects at the same time. Those with special expertise of scarce
skills may be in high demand, causing bottlenecks.
8. Diffused decision making: Many executives are unable to obtain the right information at
the right time to effectively understand the present position of the business in order to
communicate unwelcome surprise and communicate potential opportunities before the
competition.
9. No accountability: Failure to continuously monitor & communicate project milestones
in real time, & budget performance, dilutes project accountability & responsibility.
10. Fragmentation: Fragmented planning & resources processes & tolls lead to an inability
to systematically communicate & fine tune multiple project scenarios resulting in regular
unforeseen slippages & problems.
32
1.20 The societal forces of project management.
There are many societal forces involve in the development of new methods of management, but
three forces are most important:
1. The exponential expansion of human knowledge: it allows the increasing number of
people studying how they can resolve problems with development, production, and
distribution of goods and services.
2. The growing demand for a broad range of complex, sophisticated, customized goods
and services: How they can resolve problems with satisfying the continuing demand for
more complex and customized products and services.
3. The evolution of worldwide competitive markets for the production and consumptions
of goods and services: Through this market competition, the companies, profit or not-for-
profit, need to use quality tools becoming more complex, the responses must come faster
and decisions as sooner as possible.
32
Let’s try to understand each of element of project triangle & then how to face challenges related
to each.
1. Time: A project’s activities can either take shorter or longer amount of time to complete.
Completion of tasks depends on a number of factors such as the number of people working
on the project, experience, skills etc.
Time is a crucial factor which is uncontrollable. On the other hand, failure to meet the
deadlines in a project can create adverse effects. Most often, the main reason for
organizations to fail in terms of time is due to lack of resources. There are so many tools &
techniques which can be used to manage time in a project.
2. Scope: Scope looks at the outcome of the project undertaken. This consists of a list of
deliverables, which need to be addressed by the project team.
A successful project manager will know to manage both the scope of the project & any
change in scope which impacts time & cost. Shortage of skills, funds or time may lead to
reduced scope of any project.
3. Cost: It’s imperative for both project manager & the organization to have an estimated cost
when undertaking a project. Budgets will ensure that project developed or implemented
below a certain cost.
Sometimes, project managers have to allocate additional resources in order to meet the
deadlines with a penalty of additional project costs.
32
2. The time at which the outcome is available is itself a part of the outcome, as is the
3. The cost entailed in achieving the outcome
1.23 Difference between Direct project goals & Ancillary Project goals:
32
32