Project Management

Prof.V.Seshadri

Project Management - Introduction

•Third Millenium BC- Great Pyramid of Cheops – 2,300,000 stone bricks – 2-70 tons each-40 story building height – 0.04” accuracy- 13 acres wide base – accuracy <1” –100,000 labourers, 40,000 skilled masons,total of 1,50,000 women & children housed & fed.- 20 year duration to complete.

•Ancient Indian projects like Taj Mahal were well planned & executed

•Modern day projects like Cannel Tunnel & International Space Station, incorporate cost control, activity scheduling, planning of resources and logistics and risk management

P/M – Definition of ‘Project’A project is a group of unique, inter-related activities that are planned and executed in a certain sequence to create a unique product or service, within specific time frame, budget and clients’ specifications

P/M – Definition of ‘Project’ as per BS 6079

Project is a unique set of coordinated activities, with definite starting and finishing points, undertaken by an individual or organisation to meet specific objectives within defined schedule, cost and performance parameters.

P/M – Definition of ‘Project’ as per PMI

A temporary endeavour undertaken to create a unique product or service

Project ExamplesRedesigning or relocating of a production facility

Implementing a Management Information System

Developing a new alloy required for a space vehicle

Constructing national highway

Organising the Olympics

Develop a significantly enhanced website

Hospital’s development & installation of new employee benefit plan

Constructing a Dam

Indian Railway’s ticket computerisation – dev.& inst.

PM- Features of old Mega Projects

•1)Large Scale Operations involving lakhs of people & product built to last for unlimited periods.•2)Large quantities of material of high quality levels.•3)High Technical Skills levels at all levels.•4)No limits on money availability.•5)Availability of Unlimited space and generally ,no limit on time for completion.•6)No.need to bother about human rights, safety norms, wastage etc.•7)Implicit obedience of heirarchial authority.•8)Top person took holistic view, accommodated and fed families, integrated project team with community aspiration.•9)Individuals satisfied with during their trade throughout their lives. Do not aspire to move up the social ladder.•10)Over dependence on vagaries of nature.•11)Did not possess sophisticated tools or advanced scientific know how.•12)Limited range of materials.

PM- Features of Modern Day Projects•1)Products are built to last for a predetermined period .•2) Optimizing cost and time is the most important consideration.•3)Maintaining ecological and environmental norms is vital.•4)Path breaking projects have growing levels of uncertainties. Human safety concerns are vital need to innovate and network to meet ever advancing challenges.•5) Projects are much more complex in terms of technical specification.•6)Availability of trained manpower is a problem.•7)High cost of capital requires efficient fund and resource management .•8)From Trial and EVVV approach of past, “Target for success”•“First time Right” are the present approaches.•9)Need to must difficult technological or market related performance goals in spite of limitations on time and resources.

PM- Historical PerspectiveEarly projects like Great Wallof China,Egyptian PyramidsRoman Aquaducts,Taj Mahal etc.used informal PM techniquesbased on common sense.In later periods,Shipbuilding, Construction of bridges, called for more formal PM techniquesWW1- Gantt Chart for scheduling & monitoring was evolved1930s- Process Flow Diagrams was developed1957- DuPont Corp developed CPM1958- US Navy developed PERT1955- Networking to integrate Cost&Scheduling1960- NASA&US Defence developed C/SCS1970- Earned Value concept for Cost-Schedule-Delivery tracking1980- Availability of PC made it possible for even small unitsto use modern computer scheduling techniques1961- IBM first company to use Project Manager for projects

A Typology of Projects

PM - Need•The Challenges and problems of modern society involve risk and uncertainty arising from numerous interacting forces and variables, rapidly changing technology ,rising costs increasing competition frequent resource shortages and numerous interest groups and their opposing views about the best course of action.

•Project management arose in response to the need for a managerial approach which could deal with the problems and take advantage of the opportunities of modern society.

PM – Project Management definition

PM- Project Characteristics It is One whole composite thing despite diversities

Attainment of a specific goal

Unique activities

Interrelated activities

Sequence of activates

Specified time

Team with one clear leader/head

High level of subcontracting

Risk & Uncertainty

Project abandoned in-between has near zero value

Project has poor visibility for most of it’s life

PM Characteristics There is only one head – Project Manager

There is a single main project Objective which is the ultimate goal

Organization is cross functional, goal oriented & temporary in nature.Hybrid organizational structure is usually most effective.It involves highly integrated horizontal project groups. The vertical hierarchy is for administrative purpose, for ensuring optimum resource utilisation and for fostering functional expertise.

Work is performed by individuals or groups from different functional areas and may be drawn from outside also based on expertise, skill and other requirements.

PM- Characteristics - contd.Project Manager has to resolve the conflicting demands on the functional teams Time and Resource

Entire team is integrated by the Project Manager and the System

Project Organization is temporary. However,functional & subcontracting units are permanent.

Product Development type projects tend to originate from marketing. Technological applications originate usually from R&D

PM sets into motion several allied support functions like Personnel Evaluation, Accounting,Procurement and Information Systems.

PM – CHARECTERISTICS OF MODERN SOCIETY

•INTERDEPENDENCY

•COMPLEXITY

•RAPID, RADICAL CHANGE (Communication, I.T.)

•ENVIRONMENTAL & SOCIAL AWARENESS

•ACTIVE MEDIA & PUBLIC

PM- When appropriate

• Unfamiliarity, One of a kind

• Magnitude of effort

• Changing Environment

• Interrelatedness

• Reputation of an organisation

PM – Project GoalsBudget

Schedule

Performance Requirements

(See figure)

PM – Project Goals (contd.)

PM – Key featuresThe Project Manager: – to plan , direct, integrate through leadership & managerial capabilities – Accountable for the Project goals to be achieved.

The Project Team: - PM brings together individuals & groups to form a single cohesive team working for a common goal. Team may draw members from functional departments or from outside specialist.

The PM System: It is composed of organisation structure, information processing and practices & procedures that will permit vertical & Horizontal integration within the organisation ( see figure)

Vertical & Hor.elements of Project Organisation –Fig 3

Insert fig 3 – ref 1

PM-Types of Project Managers

• Project Expeditors

• Project Coordinators

• Matrix Managers

• Pure Project Managers

Ref.1

Project Manager in a typical construction project

Key tasks of a Manager

1) Set org goals, establish means of achieving (Plans)

2) Decide how the work will be done (organizes)

3) Directs, Motivates (Leads)

4) Evaluates performance w.r.t. standards. Establishes an effective MIS (Controls)

5) All four activities are performed to accomplish organizational goals –

Ref 1 pg 40

Key functions of a Project Manager

PM - Functions

• The role of Project Management is to

integrate resources and tasks to achieve

organizational goals

Project Forms

• Project Management• Programme Management• New Venture Management• Product Management• Ad Hoc Committees & Task Forces• Commercial/For Profit PM• Government & non-profit PM• Military PM

Ref 1 pg 53

Portfolio

Programs

Projects

A collection of projects, or programs and other work that are grouped together to facilitate effective management of that work to meet

strategic objectives

group of related projects managed in a coordinated way to obtain benefits and control not available from managing

them individually

A temporary endeavour undertaken to create a unique

product, service or result.

Programme ManagementProgramme Management is a means of organising a range of projects

Programme Management can be defined as 'A group of projects managed together for added benefit' (Turner 1999). The additional benefits might include:

•The elimination of risk arising from interfaces between the projects

•The coherent prioritisation of resources

•Reduction in management effort

Scource: JISC infonet

Programme Management –contd.As an example, to achieve a strategic objective

of offering Value for Money, projects may be started to:

• implement a new information system to increase efficiency in administration

• set up a new team to co-ordinate Business and Community Engagement activities

• build a new library to replace an existing outdated and inadequate library space

These seemingly unconnected projects can all contribute to the strategic aim of the programme.

Source: jisc infonet

Portfolio Management

•Portfolio Management is about deciding which programmes and projects to run in order to support your strategic objectives (and therefore which ones not to run).

•Portfolio Management is about making sure your organisation makes the right investments and gets the returns it needs for organisational growth and delivery of its Mission.

Source: Internet –JISC infonet

PM - Bibliography

1) PM for Business & Technology- Principles and Practice – John M.Nicholas

2) PM – S.Choudhary

3) PM – ICFAI Centre for Management Research

PM – Major areas of course coverage

•System principles and philosophy which guide PM theory & practice

•Logical sequence of stages in the life of a project

•Methods,procedures,and systems for Defining, Planning,Scheduling, Controlling and organizing project activities

•Organizational, managerial and human behavioural issues relevant to PM.

Ref 1