PROJECT UNIT - 1

MANAGEMENT
 • Projects are the specific schemes or action units
designated for the investment of given resources
and skills with an aim of attaining some
CONCEPT AND predetermined objectives
DEFINITION
OF PROJECT: • . A project starts from the scratch. It has a
specific objective. It has a well-defined life span
divided into a life cycle. It involves a set of
activities within a schedule and budget. It
integrates human and non human resources.
• A plan is an image, map or vision to represent the forms and/or features
of desired situation(s).
• It is a process of setting future goals for country or organization and
choosing the actions to achieve these goals.
PROGRAMME:
A Programme is the extensive and consistent set of action units stating the
needs of interrelated activities to achieve the plan’s objectives and goal.
There could be several programmes within a plan or development plan.
PROJECT
A project is a unique group of tasks designed to attain a specific objective
within the constraints of time, cost and quality based on planning and
control through the use of a variety of resources in a dynamic
environment.
CONSTRAINTS OF PROJECT
Quality.

• Quality is one of six major constraints of every project, as depicted in the classic
triple constraint triangle, which also includes scope, time, and cost
• Quality sits slightly apart from the other three project constraints appearing inside the triangle
because it is almost always affected by any change to the other three. At the same time, changing
quality expectations will most certainly impact the project’s time, scope, and cost.
 If you are unable to meet a sudden rise in cost, the project scope may shrink and the quality may
decline
 If the project scope extends due to scope creep, you may not have the time or resources to deliver
the promised quality
 If delivery time is cut or rushed, project costs may rise and quality will very likely decline
Time.
• One of the most important stakeholder considerations, project time (how long it will take to deliver), is a
vital measure of project success. Your task is to estimate project time as accurately as possible, which
requires a blend of research and experience.
• Planning
• Scheduling
• Monitoring
• Control

When considering time constraints of a project, you may want to consider:

 The project timeline

 The number of hours worked on each stage of the project
 Use of internal calendars and the goals set for each team member
 Use of time for planning and strategy building
 The number of project phases included within the plan.
Cost.

 Market rates — give costs for all for goods and services you need, as well as vendor bids and
ranges.
 Hourly costs — how much is your time worth? Provide clear estimates for this.
 Overall budget — consider costs from labor, material, factory, equipment, administrative,
software, contractors and more.
• Cost management will be an ongoing project management task.
• Historical data
• Resources
• Parametric
• Vendor bid
SCOPE.
• Since a project scope is not an estimate but a guaranteed set of deliverables, it’s
difficult to imagine creating a range for this project constraint. However, you can
consider that stakeholders may be invested in scope risk and scope tolerance
ranges.
• For example, you may list a set of deliverables that could be created if budget and
schedule allow, a wish list that your stakeholders can choose from if there’s money
and time left over after mandatory deliverables are completed.
• If your project involves IT that you are upgrading or implementing and your project
scope is expanded due to new software that your competitors have implemented that
now must become part of your project scope, you will have to increase both the
project cost and timeline.
RISKS.

• Here, we usually think of threats — the things that might go wrong when we plan for risks. A project
manager must be able to reasonably foresee failures at every step of a project, and prepare for them
accordingly.

• This can involve playing out what-if scenarios and formulating contingency plans.

• For example, what if:

 a supplier fails to deliver?

 we lose any number of resources due to illness or transfer?
 the market takes a huge swing?
 our competitor launches a similar product at the same time?
CLASSIFICATION OF SCHEDULING PROBLEM
Static Schedule
• The STATIC schedule ensures that the same logical iteration
numbers are assigned to threads in two work-sharing loop
regions if the following conditions are satisfied: Both loop
regions have the same number of loop iterations. Both loop
regions either have the same value of n specified, or have no n
specified.
Deterministic schedule
• In deterministic scheduling the risks are handled as static
entities. The task and project duration are fixed values. This
type of scheduling is mostly used where the projects done are
similar in nature and the project manager has an end to end
visibility of the projects.
Proactive scheduling
• Proactive scheduling requires a coordinated effort of the
project management staff to actually plan the work for the
project and then utilize the scheduled plan in performing
and overseeing the work in the field. Updates are performed
to measure how the plan is going and to make necessary
adjustments. The process of planning and scheduling is
never complete until the project is done. In other words, the
plan and schedule drives the project.
Dynamic Scheduling
• Dynamic Scheduling is a technique in which the hardware
rearranges the instruction execution to reduce the stalls,
while maintaining data flow and exception behavior. The
advantages of dynamic scheduling are: • It handles cases when
dependences are unknown at compile time.
TERMINOLOGY AND DEFINITIONS:

• A project is an interrelated set of activities that has a definite

starting and ending point and results in the accomplishment of a
unique, often major outcome. "Project management" is,
therefore, the planning and control of events that, together,
comprise the project. Project management aims to ensure the
effective use of resources and delivery of the project objectives
on time and within cost constraints.

• An activity or task is the smallest unit of work effort within the

project and consumes both time and resources which are under
the control of the project manager. A project is a sequence of
activities that has a definite start and finish, an identifiable goal
and an integrated system of complex but interdependent
relationships.
CHARACTERISTICS OF PROJECT:

1. Objective: Each and every project needs to be guided to achieve an objective or a

set of objectives. It ceases to exist when the objective is achieved.
2. Life Span: A project has beginning and end. It cannot continue forever.
3. Constraints: A project has a schedule. It operates within the constraints of time, cost
and quality. Every project requires certain investment of resources.
4. Unique: Every project is unique. No two projects are exactly similar.
5. System: All projects need to undergo a system of inputs-process - Outputs.
6. Life Cycle: Every project will have its own phase-based cycle.
7. Teamwork: A project has many participants. It requires teamwork under the
leadership of the Project Manager.
8. Organization Structure: A project is a temporary organization. A project usually
has its own budget and management.
9. Planning and Control System: A project requires information, planning and control
system. The actual performance is compared with the planned targets.
10. Collection of Activities: A project is a collection of activities that are linked
together to constitute a system.
OBJECTIVES OFPM
Types of Project
PROJECT ORGANIZATION

There are three major organizational forms commonly used to

house the projects.
1. Functional Organization
2. Pure Project Organization
3. Matrix Organization

1 Functional Organization
 Organization structure is broken into different functional units.
 The project tasks are performed through functional units.
2 Pure Project Organization
 The project is separated from the rest of the parent system.
 A self- contained unit with its own technical staff/ administration.

3. Matrix Organization
 A combination of pure project organization and functional Organization
 It is a pure project organization overlaid on the functional divisions of the
parent firm.
 1. To plan thoroughly all aspects of the project, soliciting
the active involvement of all functional areas
involved, in order to obtain and maintain a realistic
RESPONSIBI plan that satisfies their commitment for performance.
LITIES OF 2. To control the organization of manpower needed by
THE the project.
PROJECT 3. To control the basic technical definition of the project,
MANAGER: ensuring that "technical" versus "cost" trade-offs
determine the specific areas where optimisation is
necessary.
4. To lead the people and organizations assigned to the
project at any given point in time. Strong positive
leadership must be exercised in order to keep the
many disparate elements moving in the same direction
in a co-operative.
5. To monitor performance, costs and efficiency of all
elements of the project and the project as a whole,
exercising judgement and leadership in determining
the causes of problems and facilitating solutions.
 STEPS IN DEFINING THE PROJECT

STEP 1: DEFINING THE PROJECT SCOPE

STEP 2: ESTABLISHING PROJECT PRIORITIES
STEP 3: CREATING THE WORK BREAKDOWN STRUCTURE
STEP 4: INTEGRATING THE WBS WITH THE ORGANIZATION
STEP 5: CODING THE WBS FOR THE INFORMATION SYSTEM
DEFINING THE PROJECT SCOPE

Defining the project scope sets the stage for developing a project plan. Project
scope is a definition of the end result or mission of your project—a product or
service for your client/customer. The primary purpose is to define as clearly as
possible the deliverable(s) for the end user and to focus project plans.

Employing a Project Scope Checklist

Clearly, project scope is the keystone interlocking all elements
of a project plan. To ensure that scope definition is complete,
you may wish to use the following checklist:
Project Scope Checklist
1. Project objective
2. Deliverables
3. Milestones
4. Technical requirements
5. Limits and exclusions
6. Reviews with customer
ESTABLISHING PROJECT PRIORITIES

Quality and the ultimate success of a project are traditionally defined as

meeting and/or exceeding the expectations of the customer and/or upper
management in terms of cost (budget), time (schedule), and performance
(scope) of the project. The interrelationship among these criteria varies.

Constrain. The original parameter is fixed. The project must

meet the completion date, specifications and scope of the
project, or budget.
Enhance. Given the scope of the project, which criterion should
be optimized? In the case of time and cost, this usually means
taking advantage of opportunities to either reduce costs or
shorten the schedule. Conversely, with regard to performance,
enhancing means adding value to the project.
Accept. For which criterion is it tolerable not to meet the
original parameters? When trade-offs have to be made, is it
permissible for the schedule to slip, to reduce the scope and
performance of the project, or to go over budget?
 CREATING THE WORK BREAKDOWN
STRUCTURE

Major Groupings Found in a WBS

Once the scope and deliverables have been identified, the work of the project
can be successively subdivided into smaller and smaller work elements. The
outcome of this hierarchical process is called the work breakdown structure
(WBS).

To review, each work package in the WBS

1. Defines work (what).
2. Identifies time to complete a work package (how long).
3. Identifies a time-phased budget to complete a work package
(cost).
4. Identifies resources needed to complete a work package (how
much).
5. Identifies a single person responsible for units of work (who).
6. Identifies monitoring points for measuring progress (how
well).
INTEGRATING THE WBS WITH THE ORGANIZATION

The WBS is used to link the organizational units responsible for performing the
work. In practice, the outcome of this process is the organization breakdown
structure (OBS). The OBS depicts how the firm has organized to discharge work
responsibility.

The purposes of the OBS are to provide a framework to summarize organization

unit work performance, identify organization units responsible for work packages,
and tie the organizational unit to cost control accounts.

As in the WBS, the OBS assigns the lowest organizational unit the responsibility for
work packages within a cost account. Herein lies one major strength of using WBS
and OBS; they can be integrated as shown in Figure 4.5. The intersection of work
packages and the organizational unit creates a project control point (cost account)
that integrates work and responsibility.
CODING THE WBS FOR THE INFORMATION SYSTEM
6 QUICK STEPS TO CREATE A WORK
BREAKDOWN STRUCTURE

1. Create a list of all tasks

Start with a decomposition of a project and create a complete list of all tasks that
need to be completed within the project. Keep in mind that this isn’t a job for a
project manager alone – gather your entire team for brainstorming or mind-
mapping session.

2. Create task clusters

After defining the complete list of tasks, it’s time to cluster them according to the
project timeline or subject area. Deciding which tasks are assigned to different
clusters depends on the project, and needs to be done on a case-by-case basis.

3. Define work packages

The next step is to summarize clusters in work packages. This is usually done by
defining the work packages in the form of headings and organizing them into a
hierarchy.
4. Assign responsibilities
After you have defined all the work packages, it’s time to assign responsibilities.
Make sure all the assigned team members have the necessary know-how and time
to complete the task.

5. Define timelines for the work packages

Once the work packages have been determined and assigned to responsible
parties, project managers need to define the start and end dates. To do so,
consider where the priorities lie and whether any of the work packages are
interdependent.

6. Document the work breakdown structure

The last step of creating a work breakdown structure is documentation. It can be
done in multiple ways and depends on the type of project and nature of the team.
For example, whiteboards are an excellent option for smaller teams working in
the same office. At the same time, distributed teams need to have information
available online to assure everyone has a good overview of the project.
 PROJECT PORTFOLIO MANAGEMENT

 Project portfolio management is the systematic process of selecting,

supporting, and managing a firm’s collection of projects.
 Projects are managed concurrently under a single umbrella and may be either
related or independent of one another.

OBJECTIVES AND INITIATIVES:

Portfolio management necessitate decision making, prioritization, review, realignment, and reprioritization
of a firm’s projects. Let’s consider each of these tasks in more detail.

A] DECISION MAKING:
 The decision whether or not to proceed in specific strategic directions is often influenced by market
conditions, capital availability, perceived opportunity, and acceptable risk.
 A variety of project alternatives may be considered reasonable alternatives during portfolio
development.

B] PRIORITIZATION:
Since firms have limited resources, they typically cannot fund every project opportunity and they must
have to prioritize. For this task, several criteria may be used:
• Cost: Projects with lower development costs are more favorable because they come with less upfront
risk.
• Opportunity: The chance for a big payout is a strong inducement for funding.
• Top management pressure: Political pressure from top management (say, managers with pet projects)
can influence decisions.
C] REVIEW:
All project alternatives are evaluated according to the company’s prioritization
scheme. Projects selected for the firm’s portfolio are the ones that, based on
those priorities, offer maximum return.

D] REALIGNMENT:
 When portfolios are altered by the addition of new projects, managers must
reexamine company priorities.
 In the wake of new project additions, a number of important questions
should be considered.
 Does the new project conform to strategic goals as characterized by the
project portfolio, or does it represent a new strategic direction for the firm?
 Does a new project significantly alter the firm’s strategic goals?
 Does the portfolio now require additional rebalancing?
 The decision to change a portfolio by adding new projects restarts the
analysis cycle in which we must again reexamine the portfolio for signs of
imbalance or updating.
KEYS TO SUCCESSFUL PROJECT PORTFOLIO
MANAGEMENT:

A] FLEXIBLE STRUCTURE AND FREEDOM OF

COMMUNICATION

B] LOW-COST ENVIRONMENTAL SCANNING

C] TIME-PACED TRANSITION

PROBLEMS IN IMPLEMENTING PORTFOLIO

MANAGEMENT
A] CONSERVATIVE TECHNICAL COMMUNITIES

B] OUT-OF-SYNC PROJECTS AND PORTFOLIOS

C] UNPROMISING PROJECTS
D] SCARCE RESOURCES
WORK BREAKDOWN STRUCTURE

 A Work Breakdown Structure (WBS) is a decomposition of all the work

necessary to complete a project.
 A WBS is arranged in a hierarchy and constructed to allow for clear and
logical groupings, either by activities or deliverables. \
 The WBS should represent the work identified in the approved Project
Scope Statement and serves as an early foundation for effective schedule
development and cost estimating.
 Project managers typically will develop a WBS as a precursor to a
detailed project schedule. The WBS should be accompanied by a WBS
Dictionary, which lists and defines WBS elements.

WBS
WBS (Diagram
(Diagram or
or List)
List) WBS
WBS Dictionary
Dictionary Detailed
Detailed
Schedule
Schedule

Goal Goals
Define comprehensive list of project Describe task
activities Sequence activities
Estimate duration
Estimate resources
Identify constraints
1. WBS NUMBERING
In a WBS, every level item has a unique assigned number so that work can be
identified and tracked over time. A WBS may have varying numbers of
decomposition levels, but there is a general scheme for how to number each
level so that tasks are uniquely numbered and correctly summarized. Below is
the general convention for how tasks are decomposed:
 Level 1 – Designated by 1.0. This level is the top level of the WBS and is
usually the project name. All other levels are subordinate to this level.
 Level 2 – Designated by 1.X (e.g., 1.1, 1.2). This level is the summary
level.
 Level 3 – Designated by 1.X.X (e.g., 1.1.1, 1.1.2). This third level
comprises the subcomponents to each level 2 summary element. This
effort continues down until progressively subordinate levels are assigned for
all work required for the entire project.

If tasks are properly subordinated, most project scheduling tools will

automatically number tasks using the above convention.
RESPONSIBILITY MATRIX FOR MARKET
RESEARCH
 Here are some other participation types and definitions that may be useful
for your project:
 Informed - These people need to be kept in the picture. They need
updates on the progress but they do not need to be formally consulted,
nor do they contribute directly to the task.
 Input Required - Those who should be consulted as work is prepared,
VARIATIONS OF i.e. the driving input.
PARTICIPATION  Notify – Those who need to be notified about some aspect of the task,
TYPES such as the completion of the task. Those who are impacted by the
project, are provided status, are informed of decisions, and with whom
there is one-way communication (informational only).
 Provides Input – Those who should be consulted as work is prepared
in order to provide information.
 Support – These are resources allocated to Responsible in order to
assist in completing the task.
 Verifier - Those who check whether the product meets the
acceptance criteria set forth in the product description.
THANK
YOU