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Introduction to Project Management

Are the projects driving you crazy?

IMPACT ON PROJECT MANAGER

Did he understanding Project & Project Management Process ????

Programs versus Projects


Program Defined A series of coordinated, related, multiple projects that continue over an extended time & are intended to achieve a goal.

A higher-level group of projects targeted at a common goal.


Example:

Project: completion of a required course in project management. Program: completion of all courses required for a business major.

Synergy of Strategic & Project Management

With Changes in the Organizations Mission & Strategy


Project managers must respond to changes with appropriate decisions about future projects and adjustments to current

projects.
Project managers who understand their organizations strategy can become effective advocates of projects aligned with the firms mission.

Expectations from Project Management?


Reasons to study project management ?????

It is a profession that is always in demand

PM skills is useful and applicable to everyday work


It pays well: In 2003, the average senior project manager in the U.S. earned almost
$90,000 per year, and the average Project Management Office (PMO) Director earned more than the average Chief Information Officer ($118,633 vs. $103,925).

Worldwide IT spending continues to grow Success rate is still low (about 16-20%)

Why Project Management has become ***

Project Management Professional - PMP

Compression of the product life cycle Global competition

Knowledge explosion Corporate downsizing Increased customer focus Small projects that represent big problems

Changing Role of customer..


Increasing Relevance of Projects? Project Management and Management by Projects Change in Customer Requirements Project as a process Structure But. Projects

Variety

What is a Project?
A project is a:
Complex, non-routine and one time effort limited by time, budget, resources & performance spec.

PURPOSE
To accomplish some objective or goal

STRUCTURE
A set of interrelated jobs whose accomplishment leads to the completion of the project Jobs or activities consume time and resources and are governed by precedence relations

Projects can be at Various Levels


Personal:
Preparing for an examination Getting dressed A birthday function / / / Writing a book Wedding in the house A family vacation

Local/ neighborhood:
A school function Cleanliness drive Tree plantation exercise / / / Welcoming a dignitary to the colony Construction of clubs Establishment of a park

Organizational:
Construction of building, highway A turnaround in a refinery Conducting a marketing survey / / / Planning & launching a new product A training for managers in the organization Completing a financial audit

National:
Launching a new satellite Poverty removal drive / / Literacy campaign Organizing general elections, annual budget

Global:
Organizing peace missions (UN) Conducting World Trade / / Space exploration Environment protection

What is a project?
A Project is an agreed upon set of resources and activities that have been designed to produce predetermined outputs within a given budget and time limit
A Temporary endeavor undertaken to create a unique product or service
(Project Management Institute, 2000)
Huge but limited Budget
Te r m temporary endeavor to create unique product Me ans that a Pr ojeLife ct Specific Fixed Has a beginning and end objective(s) Span

Involves effort, work Has an intention to produce something (project Scope Budget (Cost) "deliverables" Due Date (Time) than a collection of identical items One of a kind, rather

objects, includeand things like A Project Tangible is an agreed uponbut set could of resources activities that computer software, film or stage works have been designed to produce predetermined outputs within a service Might include the establishment of a day-care center, for instance, but not its daily operations. given budget and time limit

Features of Projects
Part of programs Multi-disciplinary Well defined collection of jobs Generally non-repetitive, one time effort Jobs interrelated through precedence Jobs consume time and resources Constant pressure of conformance to time/cost /performance goals Conflicts Coordination needed between individuals, groups & organizations

What is true with most projects?


Around ____% of projects face Mgmt. JNNURM (Projects in Indore problems

Time over run Under JNNURM had exceeded the estimated cost Of Rs 476.3 crores. Likely to cross scheduled Scope creep Date of completion Premature closure Hindustan Times, Apr 26,2008 Projects funded by the World Bank Poor quality (post project evaluation) On average, operations evaluated in 2004 took 37 percent longer Cost escalation to implement than originally scheduled, down from 48 percent in 2003, Of the projects in $0.5-$3mn range IT Challenges of resource mismatch & utilisation and 54 percent in the 1989-99." 92% went over schedule. "Evaluation Results for 2004," Among projects planned to takeWorld moreBank, 2005 Operations Evaluation Department, than 1 year 86% went over schedule (KPMG-2001)

Most of the projects (10) undertaken by MoUD & MoUEPA

Typical Project Outcomes


More than 200% Late 6% 101-200% Late 16% Cancelled 29%

51-100% Late 9%

21-50% Late 8% Less than 20% Late 6% On-Time 26%

Source: Standish Group Survey, 1999 (from a survey of 8000 business systems projects)

Standish Group Report


In 2006 35% projects are successful 19% are outright failures 46% are challenged

Why?

www.standish.org

Finding from a TCS Study

What will be the managerial response ???

Business response to failure

Standish Group : IT Project Success

Economic Times, March- 2009

Times of India,NewDelhi, April 8, 2010

BS Reporter | Bangalore February 06, 2013 Last Updated at 07:10 IST

Antony slams DRDO over project delays


Defence Minister A K Antony minced no words on Tuesday when he came down heavily on the Defence Research & Development Organisation (DRDO) over delays in various defence projects. Terming the time slippages as a real problem for the defence forces, Antony said he was impatient to see the Light Combat Aircraft (LCA) project completed. While speaking at an international seminar as part of the ninth edition of Aero India here, he said: I am happy for the achievements of the DRDO, but not fully happy. The delays in delivery is a real problem. Try to speed up your process and reduce time for research, development and production. Delays should be avoided. On the LCA Tejas project, he said the DRDO was preparing for the second Initial Operational Clearance (IOC) of the indigenous fighter. He, however, added: I am impatient for the Final Operational Clearance (FOC). The LCA is about 20 years behind its schedule. After getting the FOC, the aircraft would be ready for operational deployment by the IAF. The minister also expressed anguish over the delay in the Intermediate Jet Trainer (IJT) programme being developed by the Hindustan Aeronautics Limited (HAL). That (IJT) project is delayed, delayed, delayed... You must focus on that project and by the next conference, that should be ready, he said. Speaking on the occasion, Air Chief Marshal N A K Browne, too, expressed his unhappiness over delays in projects, which have affected the modernisation plans of the Indian Air Force .

DRDO Projects

Kaveri Engine for LCA is running late by 16 years and the cost has escalated by around 800 per cent

Major Reasons for Failure

(Standish Group 2004)

.. What has become clear people and process have greater effect on project outcome than technology !

PMI Study

Challenges

Multiple Projects Complexity Conflicting objectives


Due Date (time) Budget (cost) Content (quality/scope)
Project Overload

What is Managed in Project Management?

Performance Targets, Cost Targets, Time Project Targets

STRUCTURED PROJECT MANAGEMENT METHODOLOGY

What is Project Management?

Project management is the application of knowledge, skills, tools and techniques to project activities in order to meet or exceed stakeholder needs and expectations from a project. Project Management Institute, 2000 By providing tools to aid in :
task sequencing,

Project Management is a process and this process dependency analysis, saves you from the nightmare of project failure.
resource allocation, scheduling, etc.

Project management is a or art? Finally, track progress relative toscience plan

BOTH

Why Need Project Management?


Complex project needs coordination of:
Multiple people
Multiple resources (labs, equipment, etc.) Multiple tasks some must precede others Multiple decision points approvals Phased expenditure of funds Matching of people/resources to tasks

Motivation
Complexity of Projects Implementation vs Planning

Conceptualising Project : Involvement


of implementers Developments in Project Management
Computerised Systems
New concepts in Proj. Mgmt like TOC

Time & Cost Overruns

Increasing Risk

RETHINKING WAYS WE EXECUTE PROJECTS..

Project Management Framework

Role of Project Managers in Project Mgmt.


The Project Manager Manages temporary, nonrepetitive activities and frequently acts independently

of the formal organization.


Marshals resources for the project Provides direction, coordination, and integration to the project team Manages a diverse set of project stakeholders

Dependent upon others for technical answers


Is responsible for performance and success of the project Must induce the right people at the right time to address the right

issues and make the right decisions.

Skill Sets for a Project Manager

Change Mgmt Handling Uncertainty

Team Work Investment Mgmt

Projects

Providing Flexibility

Focus& Commitment

PROJECT LIFE CYCLE

Project Phases and the Project Life Cycle


A project life cycle is a collection of project phases that defines:
What work will be performed in each phase. What deliverables will be produced and when. Who is involved in each phase. How management will control/approve work produced in each phase.

A deliverable is a product or service produced or provided as part of a project.

Project Life Cycle Issues


PROJECT SELECTION
Project Identification (Brainstorming, SWOT analysis, Project possibilities) Project appraisal (Market, Technical,
Financial, Economic & Ecological Appraisal)

PROJECT PLANNING
Work breakdown structure Basic Scheduling Time/Cost tradeoffs Resource loading Resource Leveling Limited Resource Allocation Simulation

Multi-criteria decision making for selection

PROJECT COMPLETION
Accounting Audit &Report writing Handing over project to user Disbanding project team Disseminating learning's from project.

PROJECT IMPLEMENTATION
Project Monitoring and control (Earned value analysis) Redefining priorities

Typical Project Life Cycle e.g. A Good Student Project


100
Needs Tidying Up At The End

Percent Completion

Gets Very Busy

Starts Slow

Time

Project Life Cycle

FIGURE 1.1

The Project Life Cycle

Project Life Cycle


selection

Follow up Analysis Evaluation

Project Identification Definition

Formulation Feasibility Project Design

Post implementation
Completion Termination

Project Planning and Implementation Cycle


Project Activation Organisation

Project Appraisal Selection Negotiation Approval

Supervision Monitoring Control

Implementation

More on Project Life Cycle Phases


In the early phases of a project life cycle:
Resource needs are usually lowest. The level of uncertainty (risk) is highest. Project stakeholders have the greatest opportunity to influence the project.

In the middle phases of a project life cycle:


The certainty of completing a project increases. More resources are needed.

In the final phase of a project life cycle:


The focus is on ensuring that project requirements were met. The sponsor approves completion of the project.

What uncertainties are encountered in project management?


Time required to complete a project
Availability of key resources

Cost of resources
Timing of solutions to technological problems

Actions taken by competitors

Advantages of Using Formal Project Management


Better control of financial, physical, and human resources.

Improved customer relations.


Shorter development times. Lower costs. Higher quality and increased reliability. Higher profit margins.

Improved productivity.
Better internal coordination.

Higher worker morale (less stress).

PROJECT IDENTIFICATION

Project Need Identification

Receptive to new ideas: Internal/External source


Vision of future growth

Long term objectives


SWOT analysis

Preliminary project analysis

Projects as an agent of Change

State B

State A

Alternative Projects (Paths)

Project Identification
OBJECTIVE

External

BRAINSTORMING (SWOT, Emerging trends) Internal Objectives To increase profits To minimize threats of losses To become more competitive ALTERNATIVES To provide help after a disaster To train people in a new area To reduce pollution in Delhi Screenng entrepreneur Criteria To become a successful CANDIDATE PROJECT SELECTION

SWOT

STRENGTHS Experience and expertise Financial position Capital raising capability Industrial contacts Foreign collaborations THREATS Competitors Poor state of the economy Outdated technology Unprofessional management skills New products and services

WEAKNESSES Newer unfamiliar technologies Inability to raise huge investments Lack of experience Lack of trained personnel Inability to forecast market trends OPPORTUNITIES Emerging technologies New products with new markets New processes with better features Special financing schemes Government and other incentives

Thankyou

A project is complete when it starts working for you, rather than you working for it.