PROJECT MANAGEMENT: PLANNING, EXECUTION,

EVALUATION AND CONTROL

Prof. Sanjib Chowdhury

Vinod Gupta School of Management
IIT Kharagpur

Module 01: Project Management - Basic Concepts

Lecture 01: Basic Concepts and Introduction
Concepts Covered:
• Importance of Project Management
• Characteristics of Project, Program and Portfolio
• Project Life Cycle
• Role of Project Manager vis-à-vis Functional Manager
• Traditional and Agile Project Management
• Current Drivers of Project Management
• Project Management: A Socio-Technical Approach
Basic Concepts of Project Management
• Project Approach

• Growth of Project Management

• What is a Project?
– What is not a project?

• Major Characteristics of a Project

(objective, lifespan, x-functional participation, unique, specific time,
cost, performance)
Basic Concepts of Project Management

• What is a Program?

• Differences between Project, Program and Portfolio

• What’s the difference between Project and Product Life Cycles?

 Project Life Cycle

Source: Project Management, Gray and Larson

 Project Life Cycle

• Phase I: Feasibility / Define Phase II: Design / Plan

• Phase III: Execution Phase IV: Termination/Closure
Basic Concepts of Project Management
• Role of a Project Manager vis-à-vis Functional Manager

• Temporary, non-repetitive, acts independently

• Marshals resources
• Customer interface
• Direction, coordination, and integration
• Responsible for performance and success of the project

• …. induce .… people at .… time to address .… issues and make .…

decisions
Conclusion:
• Project approach has become the way of doing business in the present day
business world. This introductory module discusses the evolution, growth and
importance of modern day project management.
• It further explains the characteristics of project, program and portfolio; project life
cycle with typical phases like define, plan, execute, and close; and the role of
Project Manager for successful completion of project.
References:
1. Project Management – The Managerial Process, Gray, C.F., Larson, E.W., and
Joshi, R., McGraw Hill Education, 8th edition.
2. Project Management – Achieving Competitive Advantage, Jeffrey K. Pinto, Pearson
Publishing Ltd., 5th edition.
3. Project Management: A Managerial Approach, Meredith, J.R. and Mantel, S.J.,
Wiley, PMBOK Guidelines Book
4. Project Management for Business and Technology – Principles and Practice, John
M. Nicholas, Prentice-Hall of India Ltd.
PROJECT MANAGEMENT: PLANNING, EXECUTION,
EVALUATION AND CONTROL
Prof. Sanjib Chowdhury
Vinod Gupta School of Management
IIT Kharagpur

Module 01: Project Management - Basic Concepts

Lecture 02: Drivers of Project Management
Concepts Covered:
• Importance of Project Management
• Characteristics of Project, Program and Portfolio
• Project Life Cycle
• Role of Project Manager vis-à-vis Functional Manager
• Traditional and Agile Project Management
• Current Drivers of Project Management
• Project Management: A Socio-Technical Approach
Traditional and Agile Project Management

• What’s the difference between Traditional and Agile Project Management?

Current Drivers of Project Management

• Factors leading to the increased use of project management:

• Compression of PLC
• Knowledge explosion
• Triple bottom line
• Corporate downsizing
• Increased customer focus
• Small projects represent big problems
Technical and Socio-cultural dimensions of Project Management Process

Source: Project Management, Gray and Larson

Stakeholders’ Control over Project Parameters

Relationship between Project Parameters

Project Scope
and Quality

Time

• Cost and resource level  ?

• Resource level and work schedule  ?
• Scope, quality and delivery date  ?
Factors Constraining Project Success
Conclusion:
• Further to the previous lecture, this class discusses the difference between
traditional and agile project management. Agile project management employs an
incremental, iterative process refereed to as “rolling wave”; instead of trying to
plan for everything up front, the scope of the project evolves. Agile methods are
used upfront in defining phase to establish specifications and requirements, the
traditional methods are used to plan, execute and close the project.
• It also elucidates the current drivers of project management, socio-technical
approach of project management, stakeholders’ control over project parameters,
and factors constraining project success.
References:
1. Project Management – The Managerial Process, Gray, C.F., Larson, E.W., and
Joshi, R., McGraw Hill Education, 8th edition.
2. Project Management – Achieving Competitive Advantage, Jeffrey K. Pinto, Pearson
Publishing Ltd., 5th edition.
3. Project Management: A Managerial Approach, Meredith, J.R. and Mantel, S.J.,
Wiley, PMBOK Guidelines Book
4. Project Management for Business and Technology – Principles and Practice, John
M. Nicholas, Prentice-Hall of India Ltd.
PROJECT MANAGEMENT: PLANNING, EXECUTION,
EVALUATION AND CONTROL
Prof. Sanjib Chowdhury
Vinod Gupta School of Management
IIT Kharagpur

Module 02: Organization Strategy and Project Selection

Lecture 03: Linkages between Organization Strategy and Projects
Concepts Covered:
 Linkages between Strategy and Projects
 Integrated Management of Project
 Project Portfolio Management System – need for and major functions
 Project Governance - An Integrative Approach
 Design of project portfolio system
• Classifications of projects
• Financial criteria of project selection
(Financial Metrics – NPV, IRR, Payback period)
• Non-financial criteria of project selection
• Multi-criteria selection models
• Managing Portfolio system
Organization Strategy and Project Selection

• Linkages between strategy and project?

‒ What is strategy and SM process?
‒ What is a Project and its characteristics?

• Necessity of project selection?

 Strategic Management Process and Project Management Linkage

Review and define the

organizational mission

Set long term goals

and objectives

Analyze and formulate

strategies to reach
objectives

Implement strategies
through projects

Source: Project Management, Gray and Larson

Integrated Management of Project

Source: Project Management, Gray and Larson

Strategic Alignment

Problems arising from uncoordinated PMS

‒ Projects that do not support the organization’s overall strategic plan and goals
‒ Independent managerial decisions that create internal imbalances, conflicts and
confusion
‒ Failure to prioritize projects resulting in wastage of resources on non-value-added
activities
Integrated Management of Project

• Major functions of Portfolio Management

• Oversee project selection
• Monitor resource usages
• Encourage Best practices
• Balance projects to optimize risk
• ↑communication among stakeholders
• Prevail org. perspective over silo thinking
• Continuous ↑of management of projects
Need for a Strong Project Portfolio Management System

• The Implementation Gap

• Organization Politics

• Resource Conflicts and Multitasking

Conclusion:
• Projects are the modus operandi to achieve long term strategy of an organization. Therefore,
selection of project is an important issue, which needs to be aligned with the organization
objectives. This module discusses the linkages between strategy and projects, and integrated
management of project.
• It further explains the need for and major functions of project portfolio management system.
• It further elaborates the project governance – and its need for an integrative approach, design
of project portfolio system, classifications of projects, reduction of portfolio risk, developing
project selection criteria, and promoting transparency for selection of project.
• This module also elucidates economic (financial) criteria of project selection viz. payback
period, net present value (NPV), and internal rate of return (IRR).
• It also illustrates non-financial criteria of project selection which is necessary for strategic
projects. The module further discusses multi-criteria selection models such as check list
model, and multi-weighted scoring model to design and manage a robust portfolio system.
References:
1. Project Management – The Managerial Process, Gray, C.F., Larson, E.W., and
Joshi, R., McGraw Hill Education, 8th edition.
2. Project Management – Achieving Competitive Advantage, Jeffrey K. Pinto, Pearson
Publishing Ltd., 5th edition.
3. Projects Planning, Analysis, Selection, Implementation, and Review, Prasanna
Chandra, McGraw Hill Education, 8th edition.
4. Project Management, Pradeep Pai, Pearson India Education Services Pvt Ltd.,
2019, 1st edition.
PROJECT MANAGEMENT: PLANNING, EXECUTION,
EVALUATION AND CONTROL
Prof. Sanjib Chowdhury
Vinod Gupta School of Management
IIT Kharagpur

Module 02: Organization Strategy and Project Selection

Lecture 04: Project Governance and Design of Project Portfolio System
Concepts Covered:
 Linkages between Strategy and Projects
 Integrated Management of Project
 Project Portfolio Management System – need for and major functions
 Project Governance - An Integrative Approach
 Design of project portfolio system
• Classifications of projects
• Financial criteria of project selection
(Financial Metrics – NPV, IRR, Payback period)
• Non-financial criteria of project selection
• Multi-criteria selection models
• Managing Portfolio system
Project Governance - An Integrative Approach

• Creation of PMO
• Monitor and control PM activities
• Monitor resource usage
• Assess Risk of projects
• Suggest ↑ measures
• Apprise Sr. mgmt
• Linkage between Sr. mgmt & PM

• What is EPMO and its role?

Portfolio Management System

• Design of a project portfolio system:

• Classification of a project
• Selection criteria
• Sources of proposals
• Evaluating proposals
• Managing the project portfolio
Portfolio Management System
• Design of a project portfolio system:
• Classification of a project

Project Portfolio by Type

 Program prioritization methodology: 2-step approach Best practices
Illustrative
Step 1 Step 2
Investment classification by objective Objective-specific prioritization methodology

• Prioritization based on quantitative

-
metric
Retrofitting – economics (profitability index– PI)

• Prioritization based on quantitative

metrics1
Strategic – economics
– risk
Funding – contribution to strategic targets
Priority

resource • Prioritization based on urgency

– Urgency/Ability to postpone
Operational evaluation based on implication of
delay (e.g. strategic targets, NPV)

• Prioritization based on urgency

– Urgency/Ability to postpone
Compliance evaluation based on implication of
+

delay (e.g. strategic targets, NPV)

Ongoing programs are considered with higher priority than

new programs regardless of objective
Portfolio Management System

• Selection Criteria
• Financial criteria
• Non-financial criteria
• Multi-criteria selection models
• Checklist model
• Multi-weighted scoring model
Portfolio Management System

Financial Models
• The Payback Model – pros and cons
• Net Present Value (NPV) model
• Internal rate of return (IRR)
(Why discount the future cash flows and its underlying principle)
 Activity/Problem Solving
1. Alpha Co. is evaluating two similar projects whose initial investment and expected
future cash flow are shown in the following table:
Project X Project Y
Year Cash flow ($) Cash flow ($)
Y0 (800,000) (850,000)
Y1 100,000 200,000
Y2 200,000 300,000
Y3 300,000 400,000
Y4 500,000 500,000
Y5 300,000 -

The company expects to earn at least 14 percent on its investment. The Financial
Advisor of the company has informed that inflation would remain stable at 2
percent for the entire period. Based on financial consideration, determine the
Payback period, NPV, and Profitability index of both projects, which project the
company would fund?
Conclusion:
• In continuation with the previous lecture, this class discusses the project governance – and its
need for an integrative approach; design of project portfolio system, classifications of projects,
reduction of portfolio risk; developing project selection criteria, and promoting transparency
for selection of project.
• This module also elucidates financial criteria of project selection viz. payback period, net
present value (NPV), Profitability index, and internal rate of return (IRR).
References:
1. Project Management – The Managerial Process, Gray, C.F., Larson, E.W., and
Joshi, R., McGraw Hill Education, 8th edition.
2. Project Management – Achieving Competitive Advantage, Jeffrey K. Pinto, Pearson
Publishing Ltd., 5th edition.
3. Projects Planning, Analysis, Selection, Implementation, and Review, Prasanna
Chandra, McGraw Hill Education, 8th edition.
4. Project Management, Pradeep Pai, Pearson India Education Services Pvt Ltd.,
2019, 1st edition.