Project Management

MGT-503
What is Project?
• An undertaking or venture to accomplish some objectives or goals. A
project can be defined as a “non-repetitive activity”. In the broadest
sense, a project is a specific, finite task to be accomplished.
• “A temporary endeavor undertaken to create a unique product or
service”
Project Management Institute, 2000
• “A Project is a complex, non-routine, one-time effort, limited by time,
budget, resources and Performance Specifications designed to meet
customers needs.”
Garry & Larson
• “A project is a problem scheduled for solution.” Problem refers to the
gap between where you are and where you want to be, with an
obstacle that prevents easy movement to close the gap.
J. M. Juran
Every project creates a unique product, service, or result. For example,
office buildings are constructed with the same or similar materials or
by the same team, but each location is unique—with a different design,
different circumstances, different contractors, and so on.
A project can create:
• A product that can be either a component of another item or an end item in
itself,
• A capability to perform a service (e.g., a business function that supports
production or distribution), or
• A result such as an outcome or document (e.g., a research project that
develops knowledge that can be used to determine whether a trend is present
or a new process will benefit society).
What is Project Management?
• Project Management is the discipline of organizing and managing
resources in such a way that these resources deliver all the work
required to complete a project within defined scope, time, and cost
constraints. Project Management is the skills, tools and management
processes required to undertake a project successfully.
• Project management provides an organization with powerful tools
that improve its ability to plan, implement, and control its activities as
well as the ways in which it utilizes its people and resources.
Prime Objectives of Project

Triangle constraints
The three prime objectives of
project management are: Performance

1. To meet specified performance

2. To do it within specified costs
3. Complete on schedule (Time)
This is also known as triangle Time Costs

constraints of a project.
Program versus Project
Program is a group of related projects designed to accomplish a
common goal over an extended period of time.
• In practice the terms project and program cause confusion. They are
often used synonymously.
• Each project within a program has a project manager. The major
differences lie in scale and time span. Program management is the
process of managing a group of ongoing, inter- dependent,
related projects in a coordinated way to achieve strategic objectives.
• Program and projects are similar in the sense that they both are
directed toward goal and require plans and resources to reach their
goal. both use similar tools, method and policies to achieve their goal.
Project life cycle
• Some project managers find it useful to use the project life cycle as
the foundation for managing projects.
• The life cycle recognizes that projects have a limited life span and that
there are predictable changes in level of effort and focus over the life
of the project.
• There are a number of different life-cycle models in project
management literature. Many are unique to a specific industry or
type of project.
• For example, a new software development project may consist of
five phases: definition, design, code, integration/test, and
maintenance.
Project life cycle stages
• The project life cycle typically passes sequentially through four
stages:
• Defining stage,
• Planning stage,
• Executing stage, and
• Delivering stage.
• Defining stage:
Specifications of the project are defined; project objectives are
established; teams are formed; major responsibilities are assigned.
• Planning stage:
The level of effort increases, and plans are developed to deter-mine
what the project will entail, when it will be scheduled, whom it will
bene-fit, what quality level should be maintained, and what the
budget will be.
• Executing stage:
A major portion of the project work takes place—both physical and
mental. The physical product is produced (a bridge, a report, a
software program). Time, cost, and specification measures are used
for control. Is the project on schedule, on budget, and meeting
specifications? What are the forecasts of each of these measures?
What revisions/changes are necessary?
 • Delivering stage:
delivaring includes three activities:
i. Delivering the project product to the customer,
ii. Redeploying project resources, and
iii. post-project review.
Delivery of the project might include customer training and transferring
documents.
Redeployment usually involves releasing project equipment/materials
to other projects and finding new assignments for team members.
Post-project reviews include not only assessing performance but also
capturing lessons learned.
• It would be a great source of comfort if one could predict with
certainty ,at the start of a project, how the performance, time and
cost goals would be met. In few cases, we can reasonably accurate
predictions, but often we cannot. There are considerable uncertainty
about our ability to meet project goals.
• A project manager mostly faces uncertainty at the beginning of the
project.Uncertinity decreases as the project moves toward
completion.
 Why Projects are initiated?
Projects are initiated in the following scenarios:
• When starting a new business.
• In order to develop/ modify a product or service.
• For relocating and/or closing a facility.
• For regulatory mandate.
• For some community issues.
• In order to re-engineer the process so as to reduce complaints, reduce
cycle time, and eliminate errors.
• For implementing a new system or process.
• To introduce new equipment, tools or techniques.
Differences between general management
and project management.
General management
• Responsible for managing the
status quo (current situation ).
• Authority defined by
management structure.
• Consistent set of task.
• Responsibility limited to their
own function.
• Works in permanent
organizational structures.
Project management
• Responsible for overseeing change.
• Lines of authority fuzzy (uncertain).
• Ever changing set of tasks.
• Responsibility for cross functional
activities.
• Operates within structures which
exist for the life of the project.
• Predominantly concerned with
innovation.
General management
• Task described as maintenance.
• Main task is optimization.
• Success determined by
achievement of interim targets.
• Limited set of variables.
Project management
• Main task is the resolution of
conflict .
• Success determined by
achievement of stated end
goals.
• Contains intrinsic uncertainties.
Characteristics of Project
• Performance: A project is usually a one-time activity with a
well-defined set of desired end results.
• Life cycle with a predetermined due date: like organic
entities, project have life cycles. From a slow beginning they
progress to a buildup of size, then peak, begin a decline, and
finally must be terminated by some due date.
• Interdependencies: projects often interact with other projects
being carried out simultaneously by their parent organization.
• Uniqueness: Though the desired end results may have been achieved
elsewhere, they are at least unique to this organization. Every project has
some elements that are unique. No two construction projects are precisely
alike.
• Resources: projects have limited budgets, both for personnel as well as other
resources.
• Conflict: Pm lives in a world characterized by conflict. Project compete with
functional departments for resources and personnel.
7’s of project management
• Strategy: High level requirement of the project and the means to
achieve them.
• Structure: The organizational arrangement that will be used to carry
out the project.
• System: The methods for work to be design, monitor, and control.
• Staff: The recruitment, selection management and leadership those
working on the project.
• Skills: The managerial and technical tools available to the project
manager and the staff.
• Style: The underlying way of working and interrelating within the
work team or organization.
• Stakeholder: Individuals or groups who have an interest in the
project process or outcomes.
DIFFERENT TYPES OF PROJECTS
• The principal identifying characteristic of a project is its novelty. It is a step into the
unknown with risk and uncertainty. No two projects are ever exactly alike: even a repeated
project will differ from its predecessor in one or more commercial, administrative or physical
aspects. However, we have found it possible and convenient to classify projects as four
different general types.
• Type 1 projects: civil engineering, construction, petrochemical, mining and
quarrying
• Type 2 projects: manufacturing
• Type 3 projects: IT projects and projects associated with management change
• Type 4 projects: projects for pure scientific research
Type 1 projects: civil engineering, construction,
petrochemical, mining and quarrying
• Projects in this category are those which spring most readily to mind whenever industrial
projects are mentioned. One common feature is that the actual work must be conducted on
a site that is exposed to the elements, and usually remote from the contractor’s head office.
As such they are often open to the public look.

• These projects incur special risks and problems of organization. They may require massive
capital investment, and they deserve (but do not always get) rigorous management of
progress, finance and quality. Operations are often hazardous so that health and safety
aspects demand special attention, particularly in heavy work such as construction,
tunneling and mining.
Type 2 projects: manufacturing
• Manufacturing projects result in the production of a piece of mechanical or
electronic equipment, a machine, ship, aircraft, land vehicle, or some other
product or item of specially designed hardware.
• The finished product might be purpose-built for a single customer but internal
research and development projects for products to be sold in all market
sectors also fall into this manufacturing category.
• Manufacturing projects are usually conducted in a laboratory, factory or other
home-based environment, where the company should easily be able to
exercise on-the-spot management and provide an optimum environment in
which to do and manage the work.
Type 3 projects: IT projects and projects
associated with management change
• This class of project proves the point that every company, whatever its size,
can expect to need project management expertise at least once in its lifetime.
• These are the projects that arise when companies relocate their headquarters,
develop and introduce a new computer system, launch a marketing campaign,
prepare for a trade exhibition, produce a feasibility or other study report,
restructure the organization, mount a stage show, or generally engage in any
operation that involves the management and coordination of activities to
produce an end result that is not identifiable principally as an item of hardware
or construction.
Type 4 projects: projects for pure scientific
research
• Pure scientific research projects are truly a special case.
• They occasionally result in dramatically profitable discoveries. On the other
hand, they can consume vast amounts of money over many years, yet yield
no practical or economic result.
• Research projects carry the highest risk because they attempt to extend the
boundaries of current human knowledge.
• The project objectives are usually difficult or impossible to define and there
may be no awareness of the possible outcome.
• Therefore, pure research projects are not usually amenable to the project
management methods that can be applied to industrial, manufacturing or
management projects.
SUCCESS OR FAILURE FACTORS IN RELATION TO
THE INITIAL PROJECT DEFINITION
Initial project definition leads to the business case on which
the decision to authorize or disallow the project start will
principally depend. This is clearly too early for anyone to
measure the success or failure of the project, but it is the
time in the project’s life history when the foundations for
success or failure are laid(set).
Any of the following shortcomings during this early period can
condemn a project to almost certain failure:
The project scope (the extent of work required) is not clearly stated
and understood.
The technical requirements are vague(unclear).
Estimates of cost, timescale or benefits are too optimistic(hopeful).
Risk assessment is incomplete.
The intended project strategy is inappropriate.
• Insufficient regard is paid to cash flows and the provision of funds.
• The interests and concerns of stakeholders are not taken into
account.
• Undue regard is paid to the motivation and behavior of people who
will execute the project.
• Particularly in management change projects, insufficient thought is
given to how all the managers and workpeople affected by the
project will be motivated to adapt to the changes expected of them.
• Approval to proceed with the project is given for political, personal or
intuitive reasons without due consideration to the business plan.
FACTORS FOR SUCCESS OR FAILURE DURING THE
PROJECT FULFILMENT (EXECUTION) PERIOD
The success of the contractor and the project manager will usually be judged
according to how well they achieve the three primary objectives of cost,
performance and time. Many things need to be in place and many actions taken
during the project execution period to help ensure success. Among other things,
these include:
• good project definition and a sound business case
• appropriate choice of project strategy
• strong support for the project and its manager from higher management
• availability of sufficient funds and other resources
✔a sound quality culture throughout the organization
✔a suitable organization structure
✔appropriate regard for the health and safety of everyone connected
with the project
✔good project communications
✔well-motivated staff
✔quick and fair resolution of conflict.