PROJECT MANAGEMENT

Prof. Raza Khan

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 Introduction to Project Management Contd.
What is a Project?
{ A project is best defined as one time occurrence with a
well defined beginning and agreed upon deliverable.

{ A project is a complex, nonroutine, one time effort

limited by time, budget, resources, and performance
specifications designed to meet customer needs. – Gray
Larson, 2nd Ed.

{ A project is a temporary endeavor undertaken to create

a unique product, service, or result. – PMBOK®

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Major Project Characteristics Start

„ Temporary Unique
{ Definite beginning and a definite end Performance
{ Duration flexible but finite
{ Obtain objective (what, when, and how much) and close or End
terminate
{ Team of several diverse professionals - disbanded on completion
{ Lasting result
„ Unique
{ Objective (product, service, or result)
{ Time, cost, and performance requirements
{ E.g. seemingly similar construction projects have different owner,
different design, different location, different contractor
„ Progressive Elaboration
„ Proceeding in steps
„ Continuing steadily by increments
„ Word of caution!
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Operations vs. Projects.
„ Overlaps
{ Performed by People
{ Constrained by Limited Resources
{ Planned, Executed, Controlled
„ Differences
{ Ongoing and Repetitive V/S Temporary and Unique

„ Projects end while operations sustain the business by forming new

set of objectives and the work continues

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Routine Work vs. Projects
Routine, Repetitive Work
Taking class notes
Daily entering sales receipts into the
accounting ledger
Responding to a supply-chain request
Routine manufacture of an Apple iPod
Attaching tags on a manufactured
product
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Projects
Writing a term paper
Setting up a sales kiosk for a
professional accounting meeting
Developing a supply-chain information
system
Designing an iPod that is
approximately 2 X 4 inches, interfaces
with PC, and stores 10,000 songs
Wire-tag projects for GE and
Wal-Mart
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 Introduction to Project Management Contd.
Project Need
„ Projects are means to achieving strategic goals of
an organization. They can result from:
{ A market demand
{ An organizational need
{ Customer request
{ A technological advance
{ A legal requirement

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Project Examples
„ Some examples of types of projects:
{ Developing a new product or service
{ Designing a new transportation vehicle
{ Constructing a building or facility
{ Effecting a change in structure, staffing or style of an
organization
{ Developing or acquiring a new or modified information
system
{ Building a water system for a community
{ Running a campaign for political office
{ Implementing a new business procedure or process

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Characteristics of a Successful Project
„ High quality projects deliver the required product:
{ Primary
„ On time
„ Within budget
„ Within Scope
„ Secondary
{ Follow on work from this customer
{ Using the customer name as reference
{ With minimum or mutually agreed upon changes
{ Lessons learnt
{ Team developed
{ Reusable parts identified for future use

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Project Management Defined
„ “Project management is the application of knowledge,
skills, tools and techniques to project activities to meet
project requirements.” - PMBOK®

„ “Project Management is the process: partly management

science and partly art: of defining an objective or goal, for
a one time undertaking and planning (or re-planning) the
work to accomplish that goal, organizing resources and,
monitoring progress, and completing all the work to
achieve the performance goal in time and within
budget…”

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The Triple Constraint
ƒ Managing projects requires:
ƒ Knowledge of key areas and their integration
ƒ Skills for managing all elements
ƒ Tools and techniques to support processes
Project Management Tradeoffs
ƒ Requires a balance between
ƒ Time, cost, quality and scope
ƒ Stakeholder needs
ƒ Project requirements

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Why Project Management
„ Project Management helps organizations meet customers’ /
stakeholders’ needs by
{ Reducing uncertainty
{ Obtaining a better understanding of the objective
{ standardizing routine tasks
{ ensuring that available resources are used in most effective and
efficient manner
{ Providing a basis for monitoring and controlling

„ The application of project management principles enables

senior executives to:
{ establish measure of success
{ enables customer focus and alignment
{ quantify value of the work
{ optimize the use of organizational resources
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{ ensure quick response-to-market
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 Introduction to Project Management Contd.
Factors Leading to Increased Use of Project
Management

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 Project Management Context
„ A project management team must understand the
broader context in which the projects are
undertaken and completed.

{ Project Phases and Life Cycle

{ Project Stake Holders
{ Organizational Influences
{ Social-Economic-Environmental Influences
{ Role of Project Manager

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Project Phases and Life Cycle

„ Project are unique with degrees of uncertainty,

therefore are divided into phases for better control
{ Usually three or four phases, ( Gray and Larson suggest Definition,
Planning, Execution and Delivery)
{ Phases; Initial, Intermediate( one or more) & Final
{ Concept (initiation), Development (planning), Implementation
(execution, construction), Termination (finishing, completion)

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Example - Simple Generic Life Cycle

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 Project Management Context Contd.
Project Lifecycle – Gray and Larson

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 Project Management Context Contd.
Characteristics of Phases
„ Completion of Deliverables (a tangible, verifiable work
product such as a feasibility study, a detail design, or a
working prototype)
„ Phase-End Reviews (both project performance and key
phase deliverables)
„ Phase Exits
„ Stage Gates
„ Kill Points

„ Phase transitions
{ A project is a system. A system can be broken into subsystems
with interaction between the subsystems. Each subsystem is itself a
system which can be further broken down. A project then can be
thought of as being composed of interacting subprojects. In general
each phase would correspond to a subproject

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Project Life Cycle Characteristics
„ Project Life Cycle
{ Together the project phases, activities and tasks in a specified order are
referred as the project life cycle
{ It represents a framework which can be used to proactively manage the
projects through a sequence of defined events that are disciplined, orderly
and methodical.
„ Characteristics of Project Life Cycle
{ Define the beginning and the end with three distinct parts: Initiation (start
up), Intermediate (Manage), Final (Close)
{ Links the project to on-going operations of the performing organization
{ Phase overlaps – Fast Tracking
{ What technical work should be done
{ Who should be involved in each phase
{ Cost and Staffing level are low at the start, higher during intermediate
phases and drop rapidly as the project draws to a conclusion
{ Uncertainty and risks are higher in the beginning
{ Ability of the stakeholders to influence the project scope, deliverable and
cost is higher in the beginning and gets progressively lower as project
continue
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Project Management
Cost of repair is much lower in the25beginning
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Example: Construction Project Life Cycle

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Example: Defense Project Life Cycle

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Example: Pharmaceutical Project Life Cycle

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Example: Software Project Life Cycle

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Class Exercise

Question?
„ Based on projects with which you have
been involved with, identify the phases
that the projects went through?

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Project Stakeholders
„ Involved or interested individuals
{ Project Manager
{ Customer
{ Performing Organization
{ Project Team Members
{ Sponsor
{ Department Manager (Originator)
{ R & D, Manufacturing
{ Owner
{ Community

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Organizational Influences
„ A project is part of something bigger in the organization
and is therefore influenced by culture, style, structure
and maturity level of performing organization’s PM
systems. Higher levels of PM maturity often have
management and financial systems in place to facilitate
management by projects.
„ Organizational systems:
{ Two types of project-based organizations.
„ Derive revenue from projects e.g. Building and Construction
Company
„ Management by project (adopted PM systems and processes)
{ Non-project based organizations

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Project Management Structures

„ Challenges to Organizing Projects
{ The uniqueness and short duration of projects relative
to ongoing longer-term organizational activities – e.g.
allocation of resources.
{ The multidisciplinary and cross-functional nature of
projects creates authority and responsibility dilemmas.
{ Eventual integration with organization’s operations.
„ Choosing an Appropriate Project Management
Structure
PROJECTIZED
{ The best system balances
the needs of the project
with the needs of the
organization. FUNCTIONAL
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Project Management Structures
„ Organizing Projects: Functional organization
{ A functional organization is a hierarchy (with one clear
superior)
{ Different segments of the project are delegated to
respective functional units.
{ Coordination is maintained through normal management
channels.
{ When the interest of one functional area dominates the
project, responsibility for project coordination is assigned
to a high ranking manager from that area.

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Functional Organizations

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Functional Organization of Projects
„ Advantages „ Disadvantages
{ No Structural { Lack of Focus
Change
{ Poor Integration
{ Flexibility
{ Slow
{ In-Depth Expertise
{ Lack of Ownership
{ Easy Post-Project
Transition

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Project Management Structures
„ Organizing Projects: Projectized Organization
{ Teams operate as separate units under the
leadership of a full-time project manager.
{ In a projectized organization where projects are
the dominant form of business, functional
departments are responsible for providing support
for its teams.
{ In a projectized organization team members are
often collocated. PM has a great deal of
independence and authority.
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Project Organizational Structure

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Dedicated Project Team

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Project Organization: Dedicated Team
„ Advantages „ Disadvantages
{ Simple { Expensive
{ Fast { Internal Strife
{ Cohesive { Limited
Technological
{ Cross-Functional
Expertise
Integration
{ Difficult Post-
Project Transition

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Project Management Structures (cont’d)
„ Organizing Projects: Matrix Structure
{ Hybrid organizational structure (matrix) is overlaid
on the normal functional structure.
„ Provides dual focus - two chains of command (functional
and project)
„ Project participants report simultaneously to both functional
and project managers.
{ Matrix structure optimizes the use of resources.
„ Allows for participation on multiple projects while
performing normal functional duties.
„ Achieves a greater integration of expertise and project
requirements.

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Matrix Organization Structure

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Division of Project Manager and Functional
Manager Responsibilities in a Matrix Structure

Project Manager Negotiated Issues Functional Manager

What has to be done? Who will do the task? How will it be done?

When should the task be done? Where will the task be done?

How much money is available to Why will the task be done? How will the project involvement
do the task? impact normal functional activities?

How well has the total project Is the task satisfactorily How well has the functional
been done? completed? input been integrated?

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Different Matrix Forms
„ Functional (also Weak or Lightweight) Form
{ Matrices in which the authority of the functional
manager predominates and the project manager has
indirect authority.
„ Balance (or Middleweight) Form
{ The traditional matrix form in which the project
manager sets the overall plan and the functional
manager determines how work to be done.
„ Strong (Heavyweight) Form
{ Resembles a project team in which the project
manager has broader control and functional
departments act as subcontractors to the project.
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A Comparison of Organization Structures

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Project Organization: Matrix Form
„ Advantages „ Disadvantages
{ Efficient { Dysfunctional
Conflict
{ Strong Project
Focus { Infighting
{ Easier Post-Project { Stressful
Transition
{ Slow
{ Flexible

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Organization Culture
„ Culture and style:
{ Reflected in shared values, norms, beliefs and
assumptions which binds people together,
thereby creating shared meaning.
{ Implications for the project management team
{ More in the text – chapter 3

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Role of Project Manager
„ Project manager is responsible for the project from cradle
to grave. Project Manager:
{ Marshals resources to complete a project on-time, on budget, and
within specifications
{ Provides a direct link to the customer and must manage the
interface between the customer expectations and what is feasible or
reasonable
{ Acts as intermediary between the top management and the project
team
{ Provides training, direction, coordination, and integration to the
project team
{ Builds trust
{ Inducts right resources at the right time to address the right issues
and make the right decisions
{ Manages all project stakeholders
{ Builds social networks (MBWA)
{ Ensures ethical behavior
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Role of Project Manager
„ Qualities of an Effective
Project Manager
{ Systems thinker
{ Personal integrity
{ Proactive
{ Problem Solver
{ High tolerance of stress
{ General Business perspective
{ Good Communicator
{ Effective time management
{ Skillful politician
{ Good Negotiator
{ Team Leader
{ Optimist
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Role of Project Manager
„ Key General Management Skills for Project Managers
{ Strategic Planning, Tactical Planning, Operational Planning
{ Managing work relationships through motivation, delegation,
supervision, team building, conflict management
{ Organizational Structures, Organizational Behavior, Personnel
Administration, Compensation, Benefits, Career Paths
{ Finance & Accounting, Sales & Marketing, R&D, Manufacturing
& Distribution
{ Managing oneself through time and stress management

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