TOPIC- GROWTH OF PROJECT MANAGEMENT – INDIAN

SCENARIO

TITLE- Project Management Dynamics in the Indian Context

SAYARI SARKAR- A90821523018

RUPSA KARAR- A90821523037
ARPON BANERJEE- A90821523005
KALLORIN BHADRA- A90821523014
 INTRODUCTION

Project management entails the systematic planning and meticulous execution of strategies to
achieve objectives. In today's dynamic business landscape, effective management is vital for
project success and business accomplishment. Recent advancements have elevated project
management to a crucial managerial domain, essential for navigating economic shifts,
globalization, technological progress, and stakeholder expectations. It involves skillfully
balancing time, budget, quality, and meeting consumer demands. Surprisingly, research
indicates that around two-thirds of projects fail in organizations lacking a strategic focus on
project management. Conversely, India anticipates a significant surge in demand for project
managers, with a projected need for over 7 million professionals in the next decade.
 INDIAN SCENARIO

Looking ahead to 2020 and beyond, the real estate industry is poised for significant changes
amidst a resurgence in confidence. This sector will play a central role in responding to rapid
economic and social transformations, reshaping the built environment. Project management
consultants will encounter a wider array of opportunities, accompanied by increased risks and
emerging value drivers. Given the lengthy development cycles in real estate—from planning
to construction spanning several years—preparing for these shifts is imperative.

In India, the real estate sector stands as one of the most prominent industries globally, ranking
second in employment after agriculture, and projected to grow by 30% in the coming decade.
It encompasses housing, retail, hospitality, and commercial sub-sectors, benefiting from the
expansion of corporate environments and the demand for office and residential spaces in
urban and semi-urban areas.

Industry Outlook:

The Indian construction industry is experiencing growth, and effective project management
implementation could propel it to new heights of success and excellence. There is already
some awareness and appreciation of project management methodologies and their
advantages, including enhanced transparency, productivity, and efficiency, aligning with
industry modernization efforts. These attributes are poised to reshape industry perceptions
and gain recognition from clients, stakeholders, and end-users.

While there is a recognition of current methodological drawbacks and anticipation of future

challenges, the traditional and labor-intensive nature of the industry poses implementation
obstacles. Efforts are required to boost productivity and efficiency to meet market demands
and adapt to changing trends. With the growing economy, foreign investments, and potential
infrastructure development, the industry must evolve its approach to remain competitive
globally.
The construction process involves various complex elements, necessitating cohesive
coordination and communication among materials, equipment, subcontractors, clients, and
inspectors. Project managers play a crucial role in overseeing and facilitating this process,
ensuring adherence to designs, timeliness, and budget constraints. To effectively manage
these tasks, project managers rely on project management techniques and systems for
planning and control.

REVIEW OF LITERATURE

The Project Management Institute (PMI) defines a project as a temporary endeavor aimed at
creating a unique product, service, or outcome. This study adopts PMI's definition. Larson
and Gray (2011) emphasize that, like most organizational endeavors, the primary objective of
a project is to fulfill a customer's need. However, projects possess distinct characteristics that
set them apart from ongoing organizational activities. Nicholas and Steyn (2008) outline
several common characteristics of projects, including having a singular purpose with well-
defined deliverables and being unique endeavors not to be exactly replicated. Projects are
temporary, often requiring the assembly of personnel, materials, and facilities for a specific
goal within a set timeframe before disbanding. They also involve cross-functional
collaboration and entail unfamiliarity and risk, often requiring special attention due to the
potential impact on the organization's goals. Additionally, projects undergo distinct phases
known as the project life cycle, involving changes in tasks, resources, and organizations
involved as the project progresses.
 RESEARCH DESIGN

Benefits of project management approach

The justification for adopting a project management approach is as follows:

- Utilizing a project management approach facilitates the management of complex,

expensive, and risky tasks by integrating interdisciplinary methods. For instance, this is
evident in research and development (R&D) organizations.

- Project management methodologies assist in managing tasks within a defined timeframe,

with clear start and end points. An example of this can be seen in industries involved in the
production of capital goods, which handle customer orders.

- Project management methodologies offer a task-focused approach for personnel within an

organization when dealing with assignments. This is illustrated by organizations in the IT
sector managing software development projects for clients.

Project formulation

"Project formulation" refers to the process of presenting a project idea in a structured format
that allows for comparative evaluations. This is done to determine the priority of a project
within resource limitations.

1.Opportunity studies

Opportunity studies aim to identify potential investment opportunities and are typically
conducted at a macro level by organizations involved in economic planning and development.
These studies generally fall into three categories: Area Studies, Sectoral and
Sub-sectoral Studies, and Resource-Based Studies. Opportunity studies, along with
supporting studies, form a solid foundation for project identification.

2.Pre-feasibility studies

A pre-feasibility study serves as an intermediary step between a project opportunity study and
a detailed feasibility study, differing mainly in the level of detail of the information gathered.
It involves collecting facts and opinions related to the project, which are then evaluated to
tentatively determine whether pursuing the project idea is justified. Pre-feasibility studies
focus on assessing market potential, investment size, technical viability, financial analysis,
and risk assessment. The scope and depth of pre-feasibility studies depend on available time
and the confidence level of decision-makers. These studies assist in creating a project profile
for presentation to various stakeholders, including funding agencies, to garner support for the
project. They also highlight critical aspects of the project that require further investigation
through functional support studies.

3. Feasibility studies

The feasibility study is the cornerstone of project formulation, providing a comprehensive

overview that considers all potential areas of concern. It examines practicalities, strategies for
achieving goals, various options, methodologies, and forecasts potential outcomes, risks, and
consequences associated with each possible course of action. This study serves as the
groundwork upon which project definition and justification are built, ensuring that
subsequent project activities maintain a high level of quality. A thorough feasibility study
offers a solid foundation for decision-making, clarifying objectives, strategic planning,
minimizing risks, and ultimately ensuring the success and cost-effectiveness of the project.

4. Economics and Market analysis

In recent years, there has been a significant shift in market analysis methods. Simply
extrapolating past trends using statistical tools is no longer sufficient for forecasting demand
and identifying demand-supply gaps for products or services. Market analysis now requires
considering multiple factors that influence the market, with projections made in anticipation
of all potential developments. Analysis of past projects reveals that many failures stem not
from technological or financial issues, but from neglecting customer needs and market
dynamics. Market analysis entails evaluating various factors such as product specifications,
pricing, distribution channels, trade practices, competition from substitutes, both domestically
and internationally, and export opportunities. The aim is to provide insights into future market
scenarios, enabling objective decision-making regarding project investments while
considering market risks and uncertainties.

5. Technical analysis

Technical analysis involves describing the product and its specifications, as well as adhering
to quality standards. This analysis includes evaluating various available technologies,
selecting the most suitable one based on the optimal combination of project components,
assessing the implications of acquiring technology, and examining licensing contracts.
Emphasis is placed on technical aspects during project selection. The chosen technology must
also consider the quality requirements of raw materials and other inputs, while ensuring
competitive production costs.

Milestone chart

The milestone chart is an enhancement of the bar chart, also known as the Gantt chart, by
introducing the concept of milestones. A milestone, denoted by a circle placed on a task
within the bar chart, signifies the completion of a specific phase of that task. For instance, in
the case of land preparation (Task A), which includes activities like ploughing and leveling, it
can be challenging to track the progress of ploughing using a simple bar chart. By introducing
a milestone on day 3, it indicates that ploughing will be completed by that day, which is June
3rd in the project timeline. In a milestone chart, tasks are divided into specific phases or
activities, and a milestone is reached after each activity is accomplished, marking an event.
The chart illustrates the sequential relationship among milestones or events within the same
task, but it doesn't show the relationship among milestones across different tasks. For
example, in Task A, milestone 2 can only be reached after milestone 1 is achieved and the
activity between milestones 1 and 2 is completed. Similarly, in Task B, milestone 4 can
commence only after milestone 3 is accomplished. However, the relationship between
milestones in Task A and Task B is not indicated in the milestone chart. Additionally, this
chart has other limitations:

Project management techniques

Project management encompasses decision-making processes for planning, organizing,

coordinating, monitoring, and controlling a series of interconnected, time-bound activities.
Project managers rely on tools and techniques not only to create the best initial plan but also
to instantly assess the impact of deviations and take corrective action as needed
•Bar chart

Bar charts serve as visual representations of the tasks necessary for achieving project
objectives. They have laid the foundation for the creation of numerous other project
management techniques.

•Gantt chart

Henry L. Gantt, around 1917, developed a system of bar charts to schedule and track the
progress of projects, later known as Gantt Charts. These charts visually depict the start and
end times for various tasks within a project on a horizontal time-scale. Each project is divided
into identifiable and manageable units called tasks, represented by bars placed equidistantly
on the vertical axis, with time plotted on the horizontal axis. For example, "Task A" could be
land preparation and "Task B" could be procurement of inputs. Land preparation, for
instance, might span five days starting from day one. However, in practice, the time scale is
aligned with a calendar, meaning if land preparation begins on June 1st, it would conclude by
June 5th. The length of each bar signifies the duration of the task, while the width holds no
significance. Although bar charts are comprehensive, convenient, and highly effective, they
have certain limitations:

- Like many other graphical techniques, they can be challenging to handle with a large
number of tasks, particularly in complex projects.

- They do not illustrate the relationships between tasks, such as the potential impact on
project completion if one activity exceeds its allotted time.
Network

Network analysis is an advancement of Gantt's milestone chart, designed to illustrate the

interrelationships among all milestones within a project. The two primary techniques for
network analysis are Program Evaluation and Review Technique (PERT) and Critical Path
Method (CPM), both developed around 1956-1958. PERT originated from the US Navy for
scheduling research and development activities for the Polaris missile program, while CPM
was created by E.I. du Pont de Nemours & Company for construction projects. Although
developed simultaneously, these techniques share similarities, with the main difference being
that CPM assumes deterministic time estimates for activities, whereas PERT uses
probabilistic estimates.

The process of network analysis involves the following steps:

1. Creating a list of activities

2. Establishing the relationships between activities

3. Estimating the duration of each activity

4. Organizing the activities into a flow diagram

5. Constructing the network diagram

6. Analyzing the network, which includes calculating Early Start Time (EST) and Late Start
Time (LST), identifying critical events, determining the critical path, and recognizing critical
activities.

Limitations of Project Management:

1. Lack of Flexibility: Project management methodologies often lack flexibility in adapting to

different stages of a project.

2. Inability to Adhere to Project Scope: Project management struggles to adhere to the

original project scope due to constant change requests, leading to budget overruns, delays,
and sometimes project cancellations.

3. Alignment with Business Strategy: Project managers focus on managing projects rather
than aligning them with organizational strategy. Program management was introduced to
address this limitation by ensuring alignment between project objectives and the company's
strategy.

4. Management of Projects with Undefined Budget and Schedule: Traditional project

management imposes budgets and deadlines on projects, potentially compromising quality
and forcing resources to prioritize finishing on time over delivering high-quality outcomes.

5. Dependence on Functional Management: Project managers often lack authority over

resources, as functional managers own and control resources. This dependence can hinder
project success and lead to compromises.
6. Exclusive Methodology: Project management requires adherence to a specific
methodology, whether traditional or agile, limiting flexibility in adopting alternative
approaches even when proven to be more effective for a particular project.

THE STUDY

Sectors that entail diverse or complicated projects, such as IT, or capital-intensive industries
like Power, Steel, and EP&C, have a higher degree of maturity in their project management
methods.

Compared to the public sector, the private sector reported a higher level of project
management induction.

By 2012, there will be about 215,187 project managers employed in India, up from an
anticipated 96,399 at present. It is anticipated that the IT industry will employ about 78% of
this people.

The global penetration rate of 2% is less than India's 16.41% certification intensity.

The market for project management-related training was projected to be worth approximately
Rs 800 million in 2015 and is projected to reach Rs 1692 million by 2024.

At the recently held first-ever one-day National Consultative Meet on Project Management at
Vigyan Bhavan, New Delhi, the Government of India's public project monitoring watchdog,
Shri Sriprakash Jaiswal, the Minister of State for Statistics and Program Implementation
(MoSPI), released a report titled "Project Management Practices in India." The goal of the
conference was to redefine project benchmarking and execution standards in India, setting the
country up for double-digit growth.

Many businesses, both in the public and commercial sectors, used some type of project
management in the past without any formal training. It was seen to be an intuitive and
internal process. Project management, however, needs to be viewed as a specialized field.
This will require establishing institutional frameworks and government policy backing. The
present study has contributed to the formulation of a policy framework aimed at improving
project management in India.
The Project Management Institute, a prestigious international organization leading
professional project management in the public and private sectors, with its headquarters
located in the USA, carried out the study. A wide range of industries, including retail,
banking, hospitality, power, automotive, and IT, have been addressed. "The study aims to
direct focus on the application of proper professional management, in accordance with
established international models and guiding principles," stated Mr. Raj Kalady, MD of PMI
(India), in adding his thoughts. "This will help reduce time and cost overruns that have been a
hallmark of Indian projects."

The timely completion of projects within the allocated budget and business impacts, as
demonstrated by revenue growth once projects are successfully implemented, are the main
advantages of project management techniques. The infrastructure boom, client-led demand in
the IT sector, procurement practices and rules, the growing trend of large infrastructure
projects being sponsored by donor agencies, and projects carried out under the PPP mode are
the growth drivers for the need for project management specialists.

International businesses will play a crucial role in the growth of the Indian economy as it
grows. It is therefore desirable to develop a policy to direct project planning, execution, and
accountability. Thus, it appears that the conference will reveal the direction India Inc. wants
to take.

The investigation produced a lot of intriguing facts. The report's conclusions include the
prediction that in the upcoming years, the IT industry would be one of the biggest employers
of project management professionals (PMPs). The primary reason India's 16.41%
certification intensity exceeds the 2% global penetration rate is the greater inclination of
certified professionals towards the IT sector. About 37,500–38,000 individuals receive project
management training and materials each year, with PMI holding a lion's share of the market.
It has been determined that investing in infrastructure is the key to returning the nation to an
8–9% economic trajectory. India's growth story therefore depends largely on how well it
manages its big-spend infrastructure program over the next five years, especially on the
timely and successful completion of all major projects.
 CONCLUSION

In summary, project management has experienced impressive growth due to

changing business environments, technological progress, and its recognized
importance in achieving success. Starting from modest beginnings, it has
evolved into a critical discipline essential for organizational prosperity. As
projects become more intricate and global collaboration increases, the need for
competent project managers has surged, leading to the professionalization and
standardization of the profession. Additionally, the introduction of
methodologies like Agile and Lean has transformed project execution,
emphasizing adaptability, efficiency, and continuous enhancement. As
businesses aim for enhanced efficiency and competitiveness, project
management will continue evolving, embracing new tools, methodologies, and
best practices. Ultimately, the expansion of project management underscores its
crucial role in navigating modern business complexities, fostering innovation,
and delivering concrete outcomes in an ever-evolving landscape.