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29 views23 pages

Unit 1 PM

Uploaded by

Jatinsingh
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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PROJEC 1.1.1. Concept of a Project LN RO OUSTON TO PROJECT MANAGEMENT Project is a specific tas Rroject specific task, wid well-defined objectives, which req rain times fe ita RH Gat ere which requires certain time and resources for its itopoader woh unk bly planned and appraised in advance aNd also Ean be ye evaluated asa {A project is initiatedto achieve a miss A prec inde achieve a mission-whateer the misson may bg) A project is completed as soon as the Hommane agg HORT it farts from scratch with a definite mission, gemerates activities involving a variety of Hilled, The Key concept of a project is that itis one: time occurrence, Hi OSCurTence bbe repeated daily, weekly or monthly in converting organisational resources into goods or services. ay = ct is cons of i x Projet ee as a cycle because each phase not only grows out of the preceding one, # Jeads into the sequent phase and it is a self-renewing cycle, o that new projects come out of the old ones in a continuous manner. ‘Thus, project is an investment activity where project mana productive tat for ealsing benefits over ine, General "ree a seul on wich we Spend matey nape of returns, which lends itself to planning, financing and implementation as a unit. Tt also refers to specific activity. with specific staring point and specific end point to achieve a specific objective. It should be measurable in costs and returns. It must have priorities for area development and reach specific clientele group”. 1.1.2. Meaning and Definition of Project [A project i$ a temporary and one-time exercise which varies in duration, It is undertaken to address a specific ‘heed in an organization, which may be to create a product or service or to change a business process. This is in direct contrast to how an organization generally works on a permanent basis to produce their goods or services. “According to the Project Management Institute's (PMI) Publication, “A Guide to the Project Management \deavour undertaken to create @ unique Body of Knowledge’ (PMBOK), a project is defined as, “a tetiporary en 1) progiict or service”. According to FL. Harrison, “A project can be defined as a nomrepesiives one” off undertaking, normally with diserets ties {financial and technical performance goals"; aa ng i itis dard, a project is defi “a unique set of co-ordinated: activities, with Acéording to the British Standard, a p vi ober B \ definite starting and finishing points, can an individual or organi within defined schedule, cost and perform eters”, a pre ‘quo nterelted activities that are planned and exeeuted ina cera sequen to ie rela timeframe, budget andthe client’ specications. ‘Thus, a project is a group create a unique product an 1.1.3. Characteristics of Eroleee ist jects are as follows: ’ 4 2 a onal ey see es a set of activities that ar unique, wheh meats itisthe Sst ime tt , Se tion Svc that type of activity. These activites do not in the ject der vivo Y73 - shot by Pandey Ji Nov 06, 2023, 11:57 BVA Noa ay dea plone) ic ale (NVA Uh ps Mn Pd 34 Rk Fak OF vivo Y73.- shot by Pandey Ji Nov 06, 2023, 12:02 moters and investors a ii) ership in the hands of promote rtnership firm of FET EEE es rjecain compon oe te nd pt known as private sector (of such projects ar rimary consideration F projects. The owners ive is not the Pl mr pauTgtty (Private or pubic but noe PSU). While the profit motive i projects. No entrepr oul Public sector projects, it is an important - like to invest in ve him adequate returns ; hi Project which docs not give him adeq! n the State and privay i ip between x foint Sector Projects: Proj ere ownership belongs to a partnership Benen ot expertise e oe rojects: Projects whe: Eee ea iets jocmally the Tea Wien 1s Mor investment in jot (_fpreneurs are known as join sector projets. In such projec 1 talents and marketing fom the private sector and the partner representing the ee Sector putt authorities including large scale funding. The main consideration Seslor projects is the desire on the part of the State to utilize manag’ capabilities of the private entrepreneur. From the entreprer hhe does not have to make all the contribution for its investment | 5 ture facilities in the county) know ne needs eles which are undertaken to provide infrstructre Ta HagenoWn a8 infrastructure projects. These projects provide strong stimulus to the intact hhuge amount of investment and generally belongs to power, roads, telecom sds substanti Projects differ from conventional projects for manufacture of goods and services and nec Fesouroes with long implementation schedule.” nn of such specific need is important for successful management o industrial project which is implemented by a well-established organization may be) Categorized out of the following group of projects: Pp Balancing Project: A project for augmenting or strengthening capacity of a particular area ari within the chain of entire production plant, with the purpose to harmonize production capacity of al Production centers within the plant, is known as a balancing project: Balaneing projects are undertaken in order to harmonize ‘capacities of different production shops within Plant, so that ultimately the plan production of the final product in increased. ii) Modernization Project: Due to continuous up gradation of technology and production processes, oe modemization becomes inevitable for any organization to take advantage of new technologies/processes, new input materials, new production methods, etc, To remain competitive an Produce at reasonable price, the company cannot afford to continue with obsolete technology. iv) Replacement Project: Replacement project is undertaken to replace certai a 7 aie en nd an eh . maintenance cost and reduction in Plant output. With the help of a replacement Project, the relevs of the plant including the old machineries by new one is replaced which reduces the maintemson eat atid increases the level of output of the organization, Maintenance cost Diversification Project: Project undertaken by an organization for activit , <7 its cmon actives s considered as diveriction project. A compaty may sag ntl ferent from RY opportunities in altogether new areas. When a Sompany undertakes a project to b investment is called a diversification project. ‘enter into a new area, it be es vive Y7S - shot by Pandey Ji Nov 06, 2023, 12:03 Thakur's MBA Int sm 3. hee j ent A es of Project Managem The objectives of project management are following te specifi, instead of being vague, Setting Objectives: The objectives in project management Must Be “PE Fig project Specific objectives will enhance the chance of achieving the desi 2) Performance and Quality: one time, quality asroducie st fo the staff at operational level. in expenditure. Financial som 3) Budget: The project must be completed without exceeding the authorised expermNET | NT Not always-inexhaustible-and-a-project might be abandoned moter Od nd wi conipleton. IF it happens, the money and effort invested inthe project. would be forties fe cases, the project contractor could face ruin, Hence, proper attenti rey budgets and financial management. 4) to Completion: Actual progress has to match the planned progress. All the significant stages of th ‘Project must take heir gespective li -place on later than their specified dates and completed on or before 1 fae completion times s0 thatthe entre project is completed of o before the planned finish oo obj is highly important because late completion oF # sponsors. ject is not very likely t6 1.2.4. Importance of. Project Management The importance of project management is as follows: Importance of Project Mar [comes trode yee |_| ) Knowledge Explosion L4 ent fe — [ee err) ceva aac |__| Rapid Development of Third World ores » ‘more.and more.organizations are relying off ¢r jeeto hema as quickly a fate Competition: Today's open market demands not only Thakur's MBA. tna Tools and T. es for Project Management The vaso tool and techniques or eae emeeeaneee eons management are as follows: 1)_Bar/Gantt Chart: The 3 ri ry ago. Their purpose nit charts were developed by Henry L.. Gantt about a century ago. _7'isto provide an immediate comparison between schedule and reality (ic., between planned work and actual his is achieved simply by marking on the chart the planned work and the-metwal actually a modified bar chart in which horizontal bars are drawn for each activity in fon fo the time required for completing it. A cursor attached to the Gantt chart can be moved across the chart to compare between the actual progress and planned work till any particular date, &, Line-of-Balance: LoB is amanual planning and scheduling techniquelsimilar in nature to MRP (material Kad resource planning). LoB is not ‘rectly concerned With the reactive expe but is utilized in determining ver a in terms of per cent of task completion. LoB technique can be fegarded'as a sTightly iss ‘form of the Gantt chart, the objective being to study the progress of jobs at regular = ‘compare progress on each operation with the progress necessary to satisfy the eventual delivery ‘Tequirements, and to identify those operations in which progress is unsatisfactory. is rk. This is a speci of large canals ané elling for industrial effluvium. Similar to id can show clearly the quantum of fegree of complexity. 4) Network Analysis: Network analysis plays an important role in project management. By analysis a network, which is a graphic depiction of ‘activities’ and ‘events’, (aera ee id control of Ayes jroject becomes much easier. The network analysis includes the two type of techniques i.e. PERT and 1M. They aH BS EXPLAINED as under: i) PERT: The Program (or Project) Evaluation and Review Technique, commonly abbreviated PERT, is ‘a model for project rent designed to analyze and represent the ias ing a \ shen project Twas devel oat a primarily to simplify the planning and scheduling of large and complex ee _ ii) CPM: In case of CPM time for each activity can be ascertained wit .séftainty, no averaging of time is involved. 1rtsadeterministic model which does not deal with uncertainty. CPM is or less é. planning volved. applied where the unhing of new produ, sceduling ship cosrction and epi, 1.2.8. Process of Project Management Project management processes can be spit into five groups each consisting of one or more procésses, They Be at 4 voysyer | 4 te : 1) Initiation process; wv ayant 2) Planning process, oe res °, A 3) Implementation process, Y ye en 4), Controlling process, he 5) Closing process. \ hs intetfelated as the output of one process becomes the it : a grape (peas implementation and contra), mes the input for the others. In the central allthe links are looped. The planning process provides (cS ‘ZL ‘S202 ‘SO AON 70: sented Bie ject plan to vies cate yen ein ros hihi jet prouraret_ The figers 1.3 dopa tia arene inidation Process: ret nis the process _of formally identifying the pre of a ne ongoing Project.to the next phase, Fie spes ns pass to be ongoing wenee sas. This phan eles ees Tk of the project o ee 5) Pieoniag eee significant activities of : i is_one_of the most stm nt beeduse-it includes. different teams, eee ? . ae here are two kinds of planning proces - Crone ves hese are.the-processes thi ord nail Seana bese 90s that re-interdependent-and.snust-be-pecfoemed in a sequence in_ ii) Facilitating Process: These ar isthe project planning phase-— activities that were not neladed ae tent processes that are performed as and when they are required 3)’ Implementation Process; Implementati j Ei) Project Plan Inifltmentation Tantetedey seat nee e + eee ‘Process. A major omer o plan is the core, process Iaaiienreeatas Taegan Ne Portion of the project budget is spent or this process. This process requires the project manager, the fop management snd the prjee tam support one another and corns tee ii) Scope Verification: It is the process of gett ie formal is te getting the project scope formally approved by the stakeholders of the project. It ensures the satisfactory accomplishment ofall the project ccvenbie. ‘When the project is terminated before schedule, the scope verification should contain the extent and level f completion. iii) Quality Assurance: It is the process of evaluating the total performance of the project regularly, in order to ensure that the project conforms to the quality standards. Quality assurance goes on the project life cycle. It is usually conducted by the quality assurance department or any other department responsible for quality. Quality assurance is generally done by all the major stakeholders of the project. iv) Team Development: It is the process of in individuals and at the same time increasing the ef y) Information Distribution: It is the process of mal stakeholders. It involves executing the communications management requests for information. : var It is the process of gathering information in the form of bide, anette and re from qualified vendors to satisfy the project needs. Usually, #1 the vendors who pat i ont effort in this process. The process requires procurement dovumentS a creasing the project stakeholders’ ability to contribute as ficiency of the team to function as a group. ‘making the required information available to project plan and also mesting a majority of qualified vendors. . a vin Vendor Selection: eis the proses of sveping Hs, ations proposals and evaluating vendors. ‘ i eee | This cess of ensuring thatthe vendors deliver materials #5 PS ee Contract Aa ag Be projets is big and involve more than one ‘vendor, managing, ig, Tequiremertions and interactions among vendors besomes °° e in agement because it ‘helps to measure project #, ; ass H ae it in project mané e yblems. This strolling Process: Controlling is importint F"F oy the plan and retify the Bi ) Controlting Process 0 a8 10 determine the deviations Ft aineains the overall quality of products. formance regull shedule slippag Ane cost over-runs, time ee ei ailing process Controlling processes ‘too involve core Ze vivo Y73 - shot by Pandey Ji Nov 06, 2023, 12:04 ‘ses. The PMIS) Py : roe Pe rol and closing mena nd tracking all Projest soint of time. steam members and inform the Proje tea all project i he re ‘ r bles the project man , re E in ct stakeholders in i i ee H , ; es. By showing up variations, the PMIS help j bot limits. Thi ne actual and planned performan q he difference (between the actual and planned p ae a MIS should béWesigned in such a way that it facili a very goals} ent standards and tools that work towards achi \e clients pr aring a Project PI used_by the project ng Methodology: Any_of thes . : Meferred ¢ planning to guide the project team during development ofthe projec plans fo wr to guide the project team during de RS fanning thodology. The structure can be a standard form or a templatey¥To}-%" | ‘management software and simple tools like facilitated start-up meetings gies use PROJECT MANAGEME! CoS ue 4 -1. Meaning of Project Management Life Cycle f life cycle is a collection of generally sequential project phases. The suumber, Of Pos — a by the control needs of the project organization, The project life cycle represents the linear progress aject, from defining the project, through developing a plan, implementing the plan and closing the project. roject life cycle usually specifies: technical work that must be carried out in various phases of the project. he list of individuals and their roles in each phase of the project. attention that a particular project receives is again not uniformly distributed throughout its lifespan, but es from phase to phase. At a particular phase of project life, depending on the requirement of that phase, opriate attention has to be paid, Therefore, itis required to know the various phases in the life of a project. vivo Y73 - shot by Pandey Ji bp Nel alot Tal oly Faas J A ey germinates. The idea say. phase during. which the ‘si ovaame uy ts te mia wi i uy ron ot ae Sean problems The. problems. may.-be és stand sound ed talons fo surveys the environment, It eign econ are et i aes i mld. be by Hi eT ES hose workin ay bs the. cassie ecnhepaulene im ina te the eae the ides ne abe putin ac ihn Wire soe idea MY ean be. considered and compa cand eee ion phase of the project wil. i 4 ce aceasta see the "project ‘The areas to be the customer_and/or_finaij¢ial_ institutions. examined durin, § ph ‘ te rials Quatfhive and quantifative evalfation of limestone reserves. 2D ma Size/Capactty: Enumeration of plant capacity forthe entre plot and forthe main departments 2 Laat Et Site: Description of location supported by a map. iv) Technology/Process Selection: Selection of optimum technology, rea i it Tee Jection of optimum technology, reasons for selection and description 'y)_ Project Lay-Out: Selection of optimum lay-out, reasons for selection and appropriate drawings. vi) Plant and Machinery: Selection of optimum equipment, reasons for selestion, desertion of selected equipment and machinery, stating number, type, specifications, capacity, source and cost. ks: Listing the broad features of the major electrical and scheme for power distribution and power grid map. for selection, description of vii) Electrical and Instrumentation Wo) instrumefitation items, suggesting a broad vii) Civil Engineering Works Selection of optimum civil works, reasons selected civil work and cost estimates, Fuel, Power, and Water: Selection and: s, source, availability and unit costs. er and Organizational Pattern: Selection of labor and staff considering ‘organizational Wallrequizement and level of training, availability and cost estimates xi) Financial Analysis: Total investment costs, sources of finance, total production costs and evaluation of financial viability. i si) Implerpentation Schedule: This phase, therefore, leas Si of the ambiguities and uncertainties - ) Tmpljated with the formation made during the conceptual phase. This phase also establishes Us risk «nea with the project in clear terms. A project either Pe accepted or get dropped at involved in going description of utilities stating qualitative properties, x) Manpow structure/lay-out, 8 this stage itself. 3) Planning and Organizing Phase: Th : definition and also with i {recog Ty Soin organizations, ower, pe ; . izations, during this Phase, deal By and large, organi certerresieaion Tee a Frastructure and enabling Services, sign and basic engineering PackaBts ty i). Project in System de iif) Organization and o Iv) Schedules and budgets, ovo ¥) Licensing and governmental clearances, Fr vi) Finance, ok ie ust vii) Systems and procedure, icon vill) Identification of project manager igs an ix) Design basis, general conditions for purchase and ted 3) Site preparation and investigations Set xi) Construction resource and materials, and xii) Work packaging, ‘Thus, this phase is involved with preps 4), Implementation Phase: This is » period of hecti, seth something starts growing itv We eld and people for the sifcatons Tor equipment and snachinry. ordering of equipment, issue of consruction drawings, etc, takes place during this phise- coneemed-80°85% of project work is done in this phase only. This. pits whole project, every tcp ‘h mde to fast track, ie, overlap the various sub-phases ty iS engineer SrooktOibenipecton vad, comndestoing, tobe enaxinmneent. This 1 AIS Fy implementation stage itself in parallel with the earlier phases of the project lifecycle. a sal Se afford the luxury of completing one implementation sub-phase fully before moving on to the nes. 5) Compntioning, Shut-down or Clean-Up Phas mmoothly, is during this period for-the-project. It is, duri mime can sce the project Preparing fining-up construction o far as the volume Of Wor itself being more or le aration forthe project to take off s the wolyement of various agencies gency who. was not So TavOWed earlier. For project personnel 3s, operation and maintenance man customer has to be salsfied with guarantee-test runs. Any change required at the last of contractual obligations in respect of performance has, therefore, to be compl to the satisfaction of the customer. Project accounts are closed, materials reconciliation carr out, outstanding payments made, and dues collected during this phase. ‘The most important issue during this phase is planning ofthe staff and workers involved in execution of the proje ® r ‘Time gare: Projet Life Cycle Curve 1.4.3. Uncertainty in Project Management incertainty management is concerned with clarify Nproeste In an ordinary level:

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