1 Project Intro

PROJECT MANAGEMENT: INTRODUCTION

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TOPICS Project

Definition Examples Characteristics

Project management challenges Program vs. projects Routine work vs. projects Project life cycle Integrated management of projects Technical & socio-cultural dimensions Overview

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PROJECT An undertaking or venture to accomplish

some objective or goal A set of interrelated jobs whose

accomplishment leads to the completion of the project

Jobs consume time and resources and are governed by precedence relationships

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PROJECT A complex, non-routine, one-time effort

limited by time, budget, resources, and performance specifications designed to meet customer needs

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PROJECT Unique process Consists of a set of coordinated and

controlled activities with start and finish dates

Undertaken to achieve an objective conforming to specific requirements

Including the constraints of time, cost and resources

(ISO 10006)

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EXAMPLES OF PROJECTS Projects at personal level Projects at local neighborhood Organizational projects National projects Global projects

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PROJECTS AT PERSONAL LEVEL Preparing for an examination Writing a book Getting dressed Wedding in the family A birthday function Organizing a family vacation

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PROJECTS AT LOCAL NEIGHBORHOOD A school function Cleanliness drive Construction of clubs

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ORGANIZATIONAL PROJECTS Construction of building, highway Planning & launching a new product A turnaround in the refinery

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NATIONAL PROJECTS Launching a new satellite Literacy campaign/ poverty removal Preparation of national budget

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GLOBAL PROJECTS Organizing peace mission Space exploration Environment protection

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PROJECT CHARACTERISTICS Has an established objective

Simple Measurable Achievable Realistic Time-related

Well defined collection of jobs Generally involves non-repetitive one-time effort Jobs interrelated through precedence

relationships Jobs otherwise independent Jobs consume time & resources

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PROJECT CHARACTERISTICS Coordination required between individuals,

groups & organizations Constant pressure of conformance to time,

cost, and performance goals Has a defined life span with a beginning and

an end

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PROJECT MANAGEMENT CHALLENGES Variety of specialized work Sites in open, remote areas Far from corporate head office Operate under risk Time delays costly Speedy delivery of non-routine activities Involve social, organizational, technical &

economic interactions Coordination of several sub-systems

PROJECT MANAGEMENT CHALLENGES The Project Manager

Manages temporary, non-repetitive activities and frequently acts independently of the formal organization. Marshals resources for the project. Is linked directly to the customer interface. Provides direction, coordination, and integration to the

project team. 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.

PROGRAMS VERSUS PROJECTS Program

A series of coordinated, related, multiple projects that continue over an extended time and 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.

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A PROJECT ORGANIZATION Bihar Rural Livelihoods Project (Jeevika) Objective

Improve rural livelihood options and works towards social and economic empowerment of the rural poor and women

Program Institution and capacity building Social development Microfinance Livelihoods

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A PROJECT ORGANIZATION  Project

Organizing training program Activities

Preparing roster of resource persons at the state, district, block and village level for different areas of CB.

Designing modules for the different training programs with the community operations manual (COM) being the base document.

Organizing key workshops including an introduction to the project and its approach for stakeholders at the state/district/block/panchayat levels and sensitization workshop targeting bankers/financial institutions/public sector/civil society/NGOs.

TABLE 1.1

Routine, Repetitive WorkTaking class notes Daily entering sales receipts into the accounting ledger Responding to a supply-chain request Practicing scales on the piano Routine manufacture of an Apple iPod

Attaching tags on a manufactured product

ProjectsWriting a term paper Setting up a sales kiosk for a professional accounting meetingDeveloping a supply-chain information system Writing a new piano pieceDesigning an iPod that is approximately 2 X 4 inches, interfaces with PC, and stores 10,000 songs Wire-tag projects for GE and Wal-Mart

COMPARISON OF ROUTINE WORK WITH PROJECTS

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PROJECT LIFE CYCLE Selection of the project Project planning

Determining scope of work & network development

Basic scheduling Time cost tradeoffs Resource considerations in project

Project implementation Project completion and audit

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PROJECT SELECTION Project identification Project appraisal Project selection

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PROJECT IDENTIFICATION Receptive to new ideas Vision of future growth Long term objectives SWOT Analysis Preliminary project analysis

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PROJECT APPRAISAL Market appraisal Technical appraisal Financial appraisal Economic appraisal Ecological appraisal A Feasibility Report considers all these issues

prior to project adoption

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MARKET APPRAISAL Aggregate future demand Market share Location & accessibility of consumers Technological scenario/ obsolescence Possible pricing options

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TECHNICAL APPRAISAL Engineering aspects Locations Size Production process

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FINANCIAL APPRAISAL Cash flows over time Profitability Break even point NPV IRR Payback period Risk

Indicate financial health of the project

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ECONOMIC APPRAISAL Benefits & cost to society Employment generated Distribution of income in society Levels of saving & investment in society

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ECOLOGICAL APPRAISAL Environmental damage

Air Water Noise etc.

Restoration measures & costs

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PROJECT SELECTION CRITERIA Investment Rate of return Risk Likely profit Payback period Similarity to existing business Expected life Flexibility Environmental impact Competition

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MULTI-CRITERIA EVALUATION

Criteria C1 C2 …… Cn Score

sProjects

P1 S1P2 S2

Pm SmWeights W1 W2 Wn

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PROJECT PLANNING Forming a project team with a leader Defining scope and terms of reference Work breakdown structure Basic scheduling Time cost tradeoffs Resource considerations

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BASIC SCHEDULING Project representation as a network Estimation of activity durations Forward and backward pass Determination of activity floats Critical path for selective control and

minimum activity duration

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TIME COST TRADEOFFS Normal & crash activity times Linear & non-linear or discontinuous/ discrete

time cost relationships Project cost-duration efficient frontier Total project (direct & indirect) costs

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RESOURCE AGGREGATION Project schedule Resource consumption profile for each

resource Provisioning of resource over time

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RESOURCE LEVELING Shifting the slack jobs in the project schedule

to obtain a balanced resource profile Project duration kept fixed Varieties of hand and computer procedures

available

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RESOURCE ALLOCATION The minimum duration schedule satisfying

the limited availability of resources May entail delaying some critical jobs to keep

the resource profile within the available limits Many hand and computer procedures

available

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PROJECT IMPLEMENTATION Organizing team & work Clear cost/ time/ performance goals Project monitoring with regard to cost, value

of work & time Project control

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PROJECT COMPLETION Disbanding of project team Report writing & accounting Handing over report to user Learning from experience

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PROBLEMS IN PROJECT EXECUTION Organizational/ behavioral Financial Legal Engineering Construction/ installation Site evacuation/ development Labor unrest/ unavailability Non-availability of resources Weather conditions Adhoc, on-the-spot improvisations

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HUMAN ISSUES Working together in teams Communication Conflict management Leadership & motivation Organizational structure Selection of project manager

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COMPUTERS IN PROJECT MANAGEMENT Easy sorting & listing of activities Easy updation & new listing of project

progress over the life cycle Certain advanced analysis practical only with

computer programs Many commercially available packages

IMPORTANCE OF PROJECT MANAGEMENT Factors leading to the increased

use of project management: Compression of the product life cycle Global competition Knowledge explosion Corporate downsizing Increased customer focus Rapid development of Third World

and closed economies Small projects that represent big

problems

INTEGRATED PROJECT MANAGEMENT SYSTEMS Problems resulting from the use of piecemeal

project management systems: Do not tie together the overall strategies of the

firm. Fail to prioritize selection of projects by their

importance of their contribution to the firm. Are not integrated throughout the project life

cycle. Do not match project planning and controls with

organizational culture to make appropriate adjustments in support of project endeavors.

INTEGRATED MANAGEMENT OF PROJECTS

THE TECHNICAL AND SOCIOCULTURAL DIMENSIONSOF THE PROJECT MANAGEMENT PROCESS

OVERVIEW