Basics of Project Management and Types of Project

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Project mgt

Theory of project mgt by PERT/CPM Techniques

1. What is project

1. Project is any task hich has got !e"nite beginningan! pre!ictab#e en!

$. %t is temporary en!ea&or un!ertaken to create uniquePR'()CT or *ER+%CE

,. Project a#so !e"ne! as a unique set of co-or!inateinterre#ate! acti&ities un!ertaken by an organiation

to meet !e"ne! objecti&es that has an agree! start "nish time is constraine! by cost an! resources has speci"e! performance requirements

Characteristics of Project

1. Project has !e"nite start "nish.$. %t consists of many acti&ities hich are interre#ate! to

one another.,. They ha&e to be carrie! out in certain #ogica# or

technica# sequence i.e. some acti&ities arecomp#ete!.

0. Project consists of e## !e"ne! co##ection of jobsacti&ities or task hich hen comp#ete make the en!of project.

. Each acti&ity is &iee! as a job requiring time an!

resources.2. The acti&ities can be starte! terminate!in!epen!ent#y of each other e&en though theresources emp#oye! on the &arious acti&ities are notin!epen!ent i.e. the acti&ities to be comp#ete! ithina gi&en resource i.e. constraint



3. The jobs are or!ere! i.e. They must be performe! intechnica# or!er or sequence the roa! #e&e#ing can4the !one un#ess roa! be! is rea!y

To!ay the !e"nition of project has e5pan!e! to inc#u!e

recurring situations one time crisis an! !ea#ing ith!i6cu#t issues

Application I project & project MGT

Project Management7

18%t is p#anning9 organiing9 !irecting an! contro##ing of

company resources for a re#ati&e#y *:';9 TERM9'<=ECT%+E* an! has been estab#ishe! to accomp#ishspeci"c objecti&es

$8Project mgt is the app#ication of kno#e!ge ski##9 too#s techniques to project acti&ities in or!er to meet ore5cee! stake ho#!ers nee! e5pectations fromproject

%t is app#ie! to &arious business situations that ha&e to!ea# ith comp#e5ity ho are norma##y state ho#!ers hatis ro#e of a project manager &is->-&is state ho#!er4se5pectations

18 Project stake ho#!ers are

1. %n!i&i!ua#s or organiations ho are acti&e#y in&o#&e!in the project

$. 'r hose interests may be posite#y or negati&e#ya?ecte! as a resu#t of project e5ecution or issuccessfu# comp#etion



,. ;ey stake ho#!ers are

1. Project manager ho manager project

$. Customers to ho project is institutes,. Performing organisation ho has un!er taken project0. Project sponsors @ho has sponsor initiate!8. 'ners/ fun!ers2. *upp#ie!/contractors3. Team members of a projectA. Their fami#iesB. o&ernment agencies me!ia out #ets

1D. %n!i&i!ua#s temporary or permanent #obbingorganiations

11. *ociety at #arge

Managing stake ho#!er4s E5pectations is !i6cu#t because

&arious stake ho#!ers ha&e !i?erent object ith each

other ith project objecti&es E5am ----- arma!a

!am/p#ace for Tata motors in Ca#cutta project managerhas to un!erstan! these e5pectations4 an! achie&e

ju!icious ba#ance in the interest of successfu# project

imp#ementation

Project manager has to

1.Create an en&ironment for e&ery state ho#!er to

contribute his ski## kno#e!ge in !e&e#opment of a

project p#an$.Fna#yses nee!s of &arious stake ho#!ers to ensure

that they i## he met in the best possib#e manner



Fbsorption of a techno#ogy in C..: hich remo&e

man poer !on siing,. Fna#ye stake ho#!ers risk to#erance to !e&e#op a risk

management strategy

Risk of a project: [risk mgt steps]

Risk: %t is a possibi#ity of unfa&orab#e or un!esirab#e

e?ect of a future e&ent is on the project resu#ting in

re!uction in project bene"ts or a #oss

%n or!er to manage the project risk

The fo##oing steps are necessary

1. Risk i!enti"cation$.Risk ana#ysis,. Response strategy0. Risk monitoring an! contro#



Fpp#ication of project mgt

F## business situations that ha&e !ea# ith comp#e5ity

1. Gega# o6ces

$.:ospita#s,. 'ther ser&ices0. Tra!itiona# manufacturing "rms. Construction companies2. Engineere! business3. Hinancia# %nstitutions

These organiation ha&e become enthusiastic about the

ays in hich project mgt is impro&ing their !e#i&ery of ser&ices or creation of ne pro!ucts some typica#

e5amp#es are

1. Contraction of a b#!g !am or highay$. Maintenance of oi# re"nery,. '&er hau#ing of an FEP'PGFE0. *e#ection procurement %nsta##ation commission of a

ne Techno#ogy. (esigning of a proto type of a pro!uct2.*etting up of a ne factory /E5pansion of e5cising

factory3. Mo!erniation of Equips / factoriesA. Fnnua# bu!geting / au!iting e5ercisesB. %ntro!uction of a ne system I%*' BDDDJ1D. 'rganiationa# Restructuring11. (e&e#opment of a ne pro!uct1$. Campaign for ne pro!uct #aunch1,. 'rganiing FM@Fnnua# enera# bo!y meeting

sa#e conference810. Marriage ceremony@time boun! program8



Criteria for *uccess of a project

Project is sai! to be successfu# if

1. Project objecti&es are achie&e! ith in its sche!u#e!time

$. ithin bu!gete! cost,. Meeting !esire! performance/techno#ogy #e&e# hi#e

uti#iing assigne! resources e?ecti&e#y e6cient#y

The measurement an! comparison of actua# !e&iations or

&ariances from the sche!u#e <u!get set performance.

Parameters for the project in!icate the !egree of success.

Scope of project mgt

(ue to comp#e5ities of present business situations ha&e

a!!e! pressure on the brains of !ecision maker in #argecomp#e5 project in&o#&ing no4s of inter-re#ate! acti&ities

require #arge resources #ike men makes materia#s %t is not

possib#e for the mgt to make e5ecute an optimum

sche!u#e just by intuition or by thumb ru#e base! on

organiationa# capabi#ities an! e5perience. :ence mgt has to #ook after the technique or metho!s for

p#anning sche!u#ing contro##ing the project.

Theory of project mgt by using PERT or CPM Techniques.



Project management ork can be !i&i!e! into fo##oing

phrase.

1. P#anning

$.*che!u#ing,. F##ocation of resources0. Contro##ing

To meet the objecti&es of systematic p#anning project mgt

user PERT or CPM technique app#ying netork strategy.

! P#anning7 This phase consists of

1. *etting the objecti&es of project assumptions to be

ma!e$. (e&e#opments of W.<.* ork break !on structure

1. (epen!ing upon the objecti&es of mgt$. The e5tent of contro# !esire!,. The a&ai#abi#ity of computationa# ai!s

The project is broken !on into c#ear#y !e"nab#e

acti&ities.

,. Estimating the acti&ity !urations their resource

requirement #ost

0. Estab#ishing the inter!epen!ence re#ationship

beteen the acti&ities

Gike- concurrent9 procee!ing9 succee!ing



$8*che!u#ing7 This consists of #aying of the acti&ities

accor!ing to technica# or #ogica# sequence i.e

(eci!ing the time tab#e of performance of acti&ities

18*tart "nish time for each acti&ity$8Critica# path on hich the acti&ities require specia#

attention IHin! in CPM,8*#acks / Koat for on critica# path

,8 Contro##ing7 This phase is carrie! out on#y after

abo&e to phases are carrie! out thus it is fo##o

up p#anning sche!u#ing

1. Making perio!ica# progress reports$. Re&ieing the progress,. Fna#ying the status of the project

08 Fn! mgt !ecisions regar!ing up!ating9 crashing

resource a##ocations

E&ery time the progress of the project is re&iee!

correcting action is takes if require!

The project managers a#ays try to contro# acti&ities

on critica# path

Allocation of reso"rces

To achie&e !esire! resu#ts e?ecti&e#y e6cient#y

economica##y the use of resource is !one optima##y



F project signi"es huge comp#e5 task hich for con&ince

of ingt is broken !on into sma##er e#ements referre! as

acti&ities such that each of such sma##er e#ements can be

!e"ne! in terms of "nite requirement of resources time

#SS#$C# % PR%'#CT MA$AG#M#$T

% %!enti"cation

H Hormu#ation

F Fppraisa#

% %mp#ementation

M MonitoringE E&a#uation

PR%'#CT MA$AG#M#$T

:o !oes projecting !i?ers for the mgt of other types

manufacturing acti&ities or on '% mgt

18oa#/objectsProject

has to achie&e

Manufacturing

may or may not

achi&e!

$8Time horion

for p#ay

18Gong term9

usua##y more

than a year

$8More strategicthinking

in&o#&e!

*hort term

me!ium term

usua##y ith in

one yearHu##y or minor !ay

to !ay issues,8Process :as to be

!e&e#ope!

!esigne! ne

*tabi#ise! o&er a

perio! of time

!ue to e5perience



en! time

consi!erab#e

uncertainty

many unknon

factor

minimum

uncertainty

08;in! of orkE&ery time ne

cha##engeab#e

Repetiti&e ork

not much

cha##enge

8Resources

e mu#ti-

!iscip#inary team

to be create!

usua##y from the

a&ai#ab#e

personne# or form

other !epts.

P#ant personne#

a#rea!y e5ist

personne# ispossib#e

28Change mgt

Projects are

initiate! to bring

about change /

opportuties

Minima# or no

change is

e5pecte! in set

routine

38Capita# out #ays *ubstantia##y#arge

Comparati&e#ysma##er

A8'ut #ook of a

manager

Wi!e scope gets

o&er a## impro&e

arro scope

#imite!

impro&ementB8Lua#ities

traits

To be successfu#

project manager

specia# qua#itiesare require!

18Wi##ingness to

ma## sacri"ces$8Gea!ership,8(ecisi&eness

Manufacturing of

#ess qua#ities



Kui! situation

)ncertain#y08Con"!ence in

project8*trong ego

1D8 Type of

organiationMatri5/pure functiona#

(h)

Project manager is equate! to an Entrepreneur

Lua#ities for becoming a successfu# project manager arethe same as that of an entrepreneur ho has to !ea# ith

ne unknon factors un!er time pressure. F project manager shou#! ha&e fo##oing traits @page0$8

18Wi##ingness to make sacri"ces

F project is in&ariab#y ri!!#e! ith numerous

!i6cu#ties unanticipate! prob#ems the project

manager has to sacri"ce his time energy resources

to future project in an in hospitab#e en&ironment

project manager4s job is a #ot of !eman!ing

requires tota# commitment

$8Gea!ership team bui#!ing abi#ities

1.:e has to se#ect the peop#e intereste! in orking

for the project integrate them into a team he has

to moti&ate their team to be successfu##y cope ith



the cha##enges frustration inherent in a ne

&enture keep team spirit high

$. Communication beteen team members shou#!

he open free

,. :e has to so#&e conKicts ith in intergroup

intergroup keep at #o #e&e#

0. :e shou#! gi&e commitments an! obtain

commitments from other

,8(ecisi&eness7 i.e. ser&ing to sett#e the question

The project has to accomp#ish many things in the

atmosphere of uncertainty umerous !ecisions ha&e

to be taken in quick succession on the basis of

#imite! information :e !oes not ha&e history to fa##

back on a e## organie! !ata base to re#y upon the

Kui! situation ca##s for abi#ity to !eci!e quick#y a#soto re&ise !ecisions to a!opt to the changing

en&ironment.

08Con"!ence in project7 ha&ing unboun! faith in the

project insti##s con"!ence in supp#iers9 contractors9

cre!itors9 customers9 emp#oyees9 team members

others.

8*trong Ego7 Project managers nee! a strong ego to

cope ith the ups !ons of the project to en!ure

perio!s of a!&ersity an! maintain perspecti&e hen



e&ents cost sha!o o&er the enterprise the project

manager nee! a strong i!entify se#f image.

28'rganiationa# ski##718Preparing organiation suitab#e chart for project to

be successfu#$8(e"ne span of contro# 9channe#s of Ko of

information !esigning reporting re#ationships ski##s

in communication conKict reso#ution hoe&er

conKict some time may be hea#thy if it increases

competiti&e spirit of !oing thinks,8Project manager shou#! ha&e goo! orking

re#ationship ith top mgt it is terms ith mgt!epen! on his cre!ibi#ity the importance of his

project in the eyes of mgt his a&ai#abi#ity hen the

mgt nee! someone to !o something important.

38Technica# ski##7 :e shou#! be e5pert in

1. Techno#ogy

$. F!ministration an! or,. Marketing

:e shou#! ha&e soun! conceptua# un!erstan!ing of

a## three business en&ironment to enab#e him to

take part co-or!ination the search for integrate!

so#ution to the prob#ems.

The un!erstan!ing i## a#so he#p him in foreseeing consequences of !ecisions take ithout ho#istic

approach the kno#e!ge in a## three "e#!s is

necessary as project manager has to interact ith

professiona#s in a## three "e#!s.



A8 P#anning abi#ities1.mi#king sche!u#e bu!gets$.Communication ski## information processing

ski##s to !etermine resources.,. F!ministrati&e support require!0.Fnticipating prob#ems before they arise taking

presenting measures.egotiating ith other !epartment on hen

major mi#estones acti&ities i## be commitments.2. To contro# costs e5pen!itures

B8F!ministrati&e abi#ities



Project organi*ation

18Why organiation structure is require! for

imp#ementation of project$8%t shos the no4s of peop#e orking at each #e&e# of

hierarchy their interre#ationship hen to start.

The organiationa# structure can be p#anne! once the

fo##oing information is a&ai#ab#e

i. %!enti"cation of sta? ho ork on projectii. %!enti"cation of !epartments hich are in&o#&e!iii. The e5isting organiation structure

Fn imp point to note that there are no goo! no ba!

organiation structures

%t is on#y a question of hether a particu#ar structure

chosen is appropriate to the peop#e of "rm or not

Fny structure i## ork if peop#e are i##ing to make it

ork therefore choosing the structure that matches ith

beha&iora# pattern of the emp#oyees is the key ay

Type of organiationa# structures

18Tra!itiona# organiationa# structures$8Position of project #ea!ers in a tra!itiona#

organiation,8Gine sta? organiationa# structure08Pro!uct organiationa# structure8Matri5 organiationa# structure28Comp#e5 matri5 organiationa# structure38Pure project organiationa# structure



Chief E5ecuti&e

Engineer 'perations F!ministration Hinance Markets

TRA+ITI%$A, STR-CT-R#



(i&isiona# Manager

(ept. Manager (ept. Manager (ept. %nn

(i&isiona# Manager

Project Manager

(ept. Manager (ept. Manager (ept. Manager

Position of Project ,ea.ers in Tra.itional

organi*ation

,I$# STA %RGA$I/ATI%$A, STR-CT-R#



PR%+-CT %RGA$I/ATI%$A, STR-CT-R#

enera#

ProjectProject



Project M..<

enera# Manager

Engg. Marketing 'perationHinance

Project M..F

Project M..C

Project M..<

CE'

(irectorEngg. (irector Marketing(irector 'perat(irector Hinance

Project M..F

Project M..C

MFTR% 'RF%NFT%'

M'RE C'MPGE MFTR% *TR)CT)RE





E5isting 'rganiation

Engg. Personne# HinanceProcurement

Project Manager

Project Engg. Project Personne# Project HinanceProject Procurement

P)RE PR'=ECT 'RFF%NFT%'



E5p#ain 'rganiationa# structure of a pure project type

organiation ith an organiationa# chart Enumerate its

a!&antages !isa!&antages for hat type of projects

such organiation is more suitab#e

Pure project organiation is fu##y !e!icate! organiation

for project imp#ementation an! is separate! from the

parent system ith its.

1. 'n technica# sta? $. 'n a!ministration,. i&e parent from perio!ic reports o&er&ie

A.0antages: Personne# !emonstrate #oya#ty toproject

<etter emp#oyee mora#e higher moti&ationRapi! reaction time9 fast communicationF## members are responsib#e to project manager*peci"c techno#ogies for se&era# successi&e

projects

Committe! orkers%n!i&i!ua#s e5ce# in projects area of technica#

e5pertise

+isa.0antages: (up#ication of e?orts faci#ities personne#

*tock pi#e equipment Technica# assistance

Project takes on a #ife of its ono perpetuation of techno#ogyGack of opportunity for technica# interchange

beteen projects



The pure project type organiation is suitab#e fore5pansion / (i&ersi"cation Projects of a companythat are in a comp#ete#y !i&erse "e#!.

F Pure Project 'rganiation a spate !i&ision !e&e#ope!

ithin the company ith in!epen!ent authority responsibi#ity for project such organiation is suitab#e forcompanies embarking on major !i&ersi"cation e5pansionprojects genera##y at sites aay from parent organiation.

18Poer Tran project at <hopa# both are aay from<ombay.

%n!ustria# Tran project at a#ior

Why is the tra!itiona# Hunctiona# organiation is notconsi!ere! suitab#e for imp#ementation of projects ingenera# name the other organiationa# structure!e&e#ope! stating the types of projects these are foun! tobe more e?ecti&e.

The tra!itiona# functiona# organiation is shon in "g 1

18Were e "n! hierarchica# structure ith emp#oyees ateach #e&e# reporting to ne5t #e&e# ith the e5ception of those at the top an! bottom

$8Work Kos from top to bottom,8Futhority responsibi#ity increase ith upar!

mo&ement in the hierarchy08The nos. of each #a&es is higher than the #e&e# abo&e it8The !i&isiona#iation is so#e#y base! on functions

When the nos. of pro!ucts ere #ess the comp#e5 city as#ess this structure orke! has to maintain !i?erentmu#tip#e pro!uct #ines the integration of a## acti&itiespresente! prob#ems



Thus tra!itiona# functiona# organiation is not suitab#e forimp#ementation of project because

18o sing#e in!i&i!ua# is !irect#y responsib#e for project noforma# authority

$8%f !oes not pro&i!e project oriente! emphasisnecessary to accomp#ish project task

,8ee!s e5cessi&e #ea! time for the appro&a# of !ecision!ue to comp#e5 co-or!ination

08(ecisions norma##y fa&ors strongest functiona# group8There is no customer focus28*#o response to customer nee!s38(i6cu#t to pin point responsibi#ity as no in!i&i!ua# is

gi&en responsibi#ity of success of the project nno onecan ma!e accouri#ab#e

A8%n!i&i!ua# moti&ation inno&ation are on #o sca#eB8Customer focus is not there because a## the !epts. Fre

concerne! an#y ith those objecti&es re#ate! to theirfunctions

1D8 Fs the project is not main acti&ity of the !ept it is!i6cu#t to moti&ate peop#e to ork har! for project

118 The ho#istic approach to the project is not gi&en1$8 The peop#e may ha&e a ten!ency to ignore neg#ectthe acti&ities hich are not !irect#y ith the functiona#!omin of the !ept

The fo##oing to types of structures are suitab#e forproject imp#ementation

18 pure project organiation$8 F matri5 project organiation

1. F matri5 organiation

F matri5 organiation combines the attributes



% function pure project organiations hi#erefraining the basic functiona# structure.

$. %f achie&es the a!&antages of both types of organiation.

,. %t i!enti"es in!epen!ent authority responsibi#ity fora project ith project manager.

0.There are to #ines of reporting one to functiona#hea!s other to project managers.

.The project manager gets their authority from the

top i.e. from @genera# manager8 as shon in "g tohom they genera##y report.

2. The project manager is gi&en the o&era##responsibi#ity for the imp#ementation of project

The project manager !eci!es the tasks to beperforme! the !epts.

Which i## han!#e each task the responsibi#ity of #inemanagers to pro&i!e an appropriate techno#ogy the right peop#e to !o the ork.

3 Fssigning task to each person is !one by projectmanager A The #ine managers are a#so e5pecte! to !e&e#op

for the requirements of the organiation B They are a#so require! to keep track of the#atest !e&e#opment in techno#ogy up!atetechno#ogica# base

1D The project Manager has comp#ete authorityresponsibi#ity accountabi#ity for the success of

the project



%n the tra!itiona# structure9 peop#e are informe! of theirtask by functiona# managers the project manager ne&erha! any !irect ro#e in their ork is responsibi#ity as#imite! to co-or!inating !i?erent !epartment.

=obs use! to be sent to !i?erent #ine manager theyere !one at !i? time in !i?erent !epts. Fs !eci!e! by#ine managers.

%n the matri5 organiation a## peop#e in&o#&e! in projectreport !irect#y to project management an! take or!erfrom him on continuous basis. The project manager

therefore co-or!inate easi#y an! integrate the jobse?ecti&e#y.

Matri5 form of organiation is best suite! to Oproject!ri&en organiation. i.e. organiations engage! in projectimp#ementation for the c#ient as their main business #ikeconstruction softare "rms a!&antages.

Documents

Basics of Project Management and Types of Project