Slides of Project Mgmt

8/8/2019 Slides of Project Mgmt

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Fundamentals of

Project Management


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Concept Of Project

Project cement, power, refinery, fertilizers etc.the term common to all.

As soon as the plant is operational, the project isdeemed to be completed.

Lok sabha election

Videocon

Polio drops Sampling surveys


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Project ?... It starts from a scratch with a define

mission, generates activities involving a

variety of human and non human

resources directed towards fulfillment of

the mission and stops once the mission is

fulfilled. The project management institute U.S.A


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Characteristics Of Project

Objectives

Life span

Single entity Team work

Life cycle

Uniqueness

Change

Successive principle


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Characteristics Of Project

Made to order

Unity in diversity

High level of sub contracting Risk and uncertainty


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Project Family TreePLAN

PROGRAMME

PROJECT

WORK PAKAGE

TASK

ACTIVITY


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Project Manager

Indian context- project manager and

projects.

Problems faced- Everything is unknown and uncertain.

Scope comes clearly after passage of

time.


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Who can be a project manager?.. Engineer

Vendors

Contractors

Government bodies etc.

Success criteria- completion of task, time

of completion, budget, performance of thehardware build, etc.


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Basic Education Of Project

Manager Engineering for engineering projects.

PG course in project management.

Real education change the mental make up.

Some do it without education.

TIME COST QUALITY

Project management association new delhi.

Correspondence course in Punjabi University.

communication skills I will always choose a lazy person to do a difficult job

becoz definitely he will find an easy way to do it

---Bill gates


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Roles And Responsibility Of Project

Manager Defining and maintaining the integrity of a

project.

Development of project execution plan Organization of project execution plan.

Setting targets and development of systems andprocedures for accomplishment of project

objectives and targets. Negotiation for commitments.

Direction, coordination and control of projectactivities.


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Roles And Responsibility Of Project

Manager Contract management

Non human resources managementincluding fiscal matters

Projectising and problem solving

Man management

Satisfaction of customers, government,

and the publicAchievement of project objectives, cash

surplus and higher productivity


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Projects Normal project

Crash project

Disaster project


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Selection Of Project Manager ?

?.....


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Need of project manager From first day start searching.

Some doesnt appoint, they are not aware of

benefits. Difficulties in execution of plan

Unable to estimate losses and responsibility

Priority for corporate

No one free to become PM Outside PM for short time

CEO dont have time

So no PM means NO TARGET of time , cost ,quality, and performance


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Project Management As Profession


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The Project Team

Diff project have diff staff needs.

Behavioral issues in managing team.

Team members.


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The Project Team Members / roles Project engineer: in-charge of product design,

development, functional analysis, specification,

drawings, cost estimates, quality/reliability,engineering changes and documentation.

Manufacturing engineer: production of the

product and process the engineer design,

manufacturing design, tooling, production

scheduling and tasks etc.


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The Project Team Field manager: responsible for installation, testing, and

support of production and process once it is deliver tocustomers.

Contract administration: official paper work, keepingtrack of customers changes, billings, complaints, legalaspects, costs etc.

Project controller: daily accounts for budgets, costvariances, labor charges, project suppliers, capitalequipments etc.

Support service manager: product support, subcontracts, data processing and general managementsupport function.


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Human Factors And The Project

Team

Technical fault or human problem?

Workmanship, professionalism.


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Project life cycle Every phase need appropriate attention at

their level.

Every phase is important

5 phases in project life cycle


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Project life cycle phases Conception phase :

Idea germinates

Try to overcome certain problems- funds,plant, capacity, expertise etc

Solution to problems

Eg-


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Project life cycle phases Definition stage:

Areas to be examined

Raw material- quality and quantity

Plant size/capacity Location and site

Technology /process selection

Project layout

Plant and machinery

Electrical instrumentation works

Civil engineering works Utilities-fuel, power, water

Manpower/ org pattern

Financial analysis

Implementation scheduled


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Project life cycle phases Planning and organising phase:

Starts much earlier

Overlaps with definition stage and

implementation phase


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Project life cycle phases Planning and organising phase: Project infrastructure and enabling services

System design and basic engineering package

Organisation and manpower

Schedules and budgets

Licensing and governmental clearance

Finance

System and procedure

Identification of project manager

Design basic, general conditions for purchase andcontracts

Site preparation and investigation

Construction resources and materials

Work packaging


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Project life cycle phases Implementation phase :80-85 % of project work done in this phase

Project clean up phase:

Drawings, manuals, paper, documents handedover to customer / management

Guarantee test runs

Project accounts closers, materials reconciliationcarried out, outstanding payments, duecollections etc.


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Project life cycle curveLevelof

contract

Time

85% effort

8% effort

3% effort

4% effort


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Ma

rket Ana

lysis1.Situation analysis and specification of

objectives

Who are customers?

Total size of market

Yearly sales graph

Area

Potential customersChannel of distribution

Immediate sales area


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Ma

rket Ana

lysis2. Collection of secondary data

Census of India

National sample survey reports

Economic survey

Institution and other agencyEvaluation of secondary information


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Market Analysis

3. Conduct market survey

Market and demand analysis

Define target populationSelect sampling scheme and sample size

Develop questionaire

Recruit and train field investigation

Scrutinize the information gathered

Analyze and interpret the information


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Market Analysis

4. Characterizations of the market

Effective demand in the past and present

Breakdown of demandPrice

Methods of distribution and sales promotion

Consumers

Supply and competition

Government policy


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Market Analysis

5. Demand fore casting

6. Uncertainty in demand forecast

Data about past and present

Methods of forecasting

Environment drawings

7. Market planningMarket strategy


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Technical Analysis

To insure that project is technically

feasible in the sense that all the inputs

required t set up the project are available.

To facilitate the most optimal formulation

of the project in the terms of technology,

size, location and so on.


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Technical Analysis

A. Manufacturing process/ technology

Cement

Soap

Choice of technologyPlant capacity

Principle inputs

Investment outlay and production cost

Use by other unitsProduct mix

Latest developments

Ease of absorption


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Technical Analysis

Appropriateness of technology

Whether the technology utilises local raw material?

Whether the technology utilises local man power?

Whether the goods and services produced cater to thebasic needs?

Whether the technology protects ecological balance?

Whether the technology is harmonious with social and

cultural condition?


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Technical Analysis

B. Technical arrangements

Technical know-how

Nature of supportProcess and performance guarantees

Price of technology-one time licensing, periodicroyalty fee

R&D

Period of collaboration agreement

Sharing management control


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Technical Analysis

C. Material and input utilities

Study of material and utilities

Four broad categories1. Raw material

Agricultural products

Mineral products

Livestock and forest products

Marine products


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Technical Analysis

2. Processed industrial materials and

components

3. Auxiliary materials and factory suppliesChemicals, packing materials, paint, varnishes,

oils, grease, cleaning material, etc.

4. Utilities power, water, steam, fuel, etc


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Technical Analysis

D. Product mix

E. Plant capacity

FNC-Feasible normal capacity

NMC- nominal maximum capacityTechnological requirements

Inputs consideration

Investment cost

Market conditionsResources of the firm

Government policy


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Technical Analysis

F. Location and site

Proximity of raw material and markets

Availability of infrastructure

Labour situation

Government policy

Other factorsSite selection


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Technical Analysis

G. Machines and equipments

Constraints in selecting machineries and

equipmentProcurement of plant and machinery

H. Structures and civil works

Site preparation and development

Building and structuresOutdoor works


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Technical Analysis

Projects charts and layouts:

General function layout- relationship between building,equipment and civil works

Material flow diagram Production line diagrams

Transport line diagrams

Utility consumptions diagrams

Communication layout

Organizational layout

Plant layout


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PROJECT PLANNING


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Project Planning

Initial project coordination: Overall mission

Goals

Strategy of the organization Outlining the scope of the project

Project lunch meeting

Technical scope is established

Basic area of performance responsibility accepted

Any tentative delivery dates or budgets set by theorganization are clearly noted

Risk management team is created


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Project Plan Elements Overview

Objectives

General approach- managerial and technical

Contractual aspects

Schedules

Resources

Personnel

Risk management plans

Evaluation methods


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Project Planning In Action Planning from start to completion

Sequence of things

9Segments of projects are:

Concept evaluation

Requirement identification

Design

Implementation

Test

Integration

Validation

Customer test and evaluation

Operational and maintaince


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ENVIRONMENT ANALYSIS

Environment impact assessment/

appraisal are considered to be the first

step in the process because they give anopportunity to man to consider the effects

of his actions on the environment.

Example what you people do?....... For/ against


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Environment Analysis

Economic development is the result of the

interaction between natural resources and

technology supported by and designed forpeople.

Example: nuclear power plant, petrol

engines, electricity, wind power solarpower etc.


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Types And Dimensions Of

Projects1.Cement, steel, paper, chemical etc.

Natural resources into saleable andexchangeable products.

These projects inflict a large number of physicalchanges and description on environment andhence disturb the environment and ecologicalsystem.

2. Produce render various kinds of services suchas health, education, transport, energy, defence,law and order etc

Not much physical changes on the environment


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Project Objectives

Intended objective

Unintended objective/ consequences

Social cost planned, unwanted, unanticipated.

Environmental analysis is the study of unintended

consequences on the environment done by

various projects

GOAL IS DEVELOPMENT WITHOUT DAMAGING

ENVIRONMENT


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Stress On Environment

Eutrophic stress- release of various kinds os

waste into the rivers, lakes, other water bodies.

Exploitation stress- natural resources egagriculture, marine, forest

Distruptive stress- cutting of forests, factories,

industries in forest areas

Chemical and industrial


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ERV Environment resources/ values

Environmentalist developed this concept

Study of environment which benefits the mankind

4 important components are

Level 1- physical resources covering land, water and air.Level-2- ecological resources consisting of aquatic,

terrestrial and endangered species

Level-3-human use values covering transport, agriculture,water supply, recreation, mining, industry, flood control

etc.Level-4- quality of life values covering socio economic,

cultural and aesthetic aspects


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Environment 8 Attributes

Air

Water

Land

Ecology

Sound

Human aspects

Economics

Resources


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Environment Appraisal Projects

Follow either

ER/Vs

EA

Impact vary on the nature of project Impact analysis depend upon

Nature and size, type of projects such as manufacturing,mining, logging, power, chemicals, sugar etc

Technology

Location / eco region such as urban or rural areas,coastal, river valley, forest hill areas of any eco system.


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Meaning And Scope EIS & EIA

EIA-Env Impact Assessment

EIS-Env Impact System

Helps in achieving objectives

NO ONE HAS ANY RIGHT TO USE THE

PRECIOUS RESOURCES RESULTING

IN GREATER LOSS THAN GAIN TOSOCIETY- Funda of EIA & EIS


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EIA

An activity designed to identify, predict,

interpret and communicate information

about the impact of an action on manshealth and well being . In turns, the action

is include any engineering projects,

legislative proposals, policy programme or

operational procedure with environmental

implication


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EISA report based on studies disclosing the

likely or certain environmentalconsequences of a proposed actions, thus

ascertain the decision makers, the publicand the government to environment risksinvolved; findings enables better informeddecisions to be made, perhaps to reject or

defer the proposal action or permit itsubject it subject to specific conditions


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Objective of EIS To identify and describe (Qty) the environmental

R/Vs and EA which will be effected by theproposed project under existing or with orwithout project conditions.

Describe measure and assess the +ve and veeffect which will increase ER/Vs or decrease it

Direct or indirect

Short term or long term Alternatives which can reduces the effects


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Guidelines On The Scope And

Contents Of EIS & EIA Description of the project proposed action, technical

details

Proposed action to the land use plans, policies and

controls in affected areas Probable impact of the proposal project on the EA and in

what quantity

Alternative to the proposed project

Adverse Env effect which cannot be avoided

Relationship between local short term use of resourcesand maintainers of an enhancement of long termproductivity


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Methodology for conducting an EIS

study Quanitifying methods

Meaning parameters are rear and not well developed

Major problems in the study are

Diffused nature of impact both over time and space andlags in impacts after caused worked

An environmental effect is the joint product of severalpollutants

Inadequate of techniques to estimate the impacts and

their Costs

Since the impact are imperceptible people are not awareof the impacts


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Steps in Environment Approach Make a rapid or quick scanning or appraisal of the basic

environmental resources eg. District level

Project surroundings zone using maps

Identify areas and describe all the environmental

attributes that will give us a total description of the Envbefore the start of the project

Ranking of attributes depending upon their significance

Carry out item by item review of effects of the proposedproject on the already identify ER/Vs

Arrange/ group effects Prepare remedial plans

Corrective

Compensatory

Enhancing


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WBS-Work Breakdown Structure

Subdivided into smaller and smaller workelements.

Hierarchical process is called the WBS

All the elements of the project in a hierarchicalframework and establishes their relationship tothe project items.

OBS-organization breakdown structure

Organizational units and individuals areassigned responsibility for accomplishingobjectives.


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WBS-Work Breakdown Structure

LevelHierarchical breakdown Description

Project

Deliverable

Sub deliverable

Lowest sub deliverable

Cost account

Work package

Complete project

Major deliverable

Supporting deliverable

Low management

responsibility level

Identify work activities

Grouping of work package

For monitoring progress

And responsibility


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WBS


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WBS- work breakdown structure

To review, each work package in the WBS

Defines work (what)

Identifies time to complete a work package (how long)

Identifies a time phased budget to complete a workpackage (cost)

Identifies resources needed to complete a work package(how much)

Identifies a single person responsible for units of work(who)

Identifies monitoring points for measuring progress


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TIME VALUE

OFMONEY


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Time LINE

A time line shows the timing and the

amount of each cash flow stream.

12%12%12%12%12%12%


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Time value of money

PV = present value

FVn= future value n years hence

Ct=cash flow occurring at the end of year t

A=a stream of constant periodic cash flow overgiven period of time

r= Interest rate or discount rate

g= expected growth rate

n= number of periods over which cash flowoccur


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Future value of single amount

1st

1000

100

2nd

1100

110

3rd

1210

121

1331Formula

FV n =PV (1+r)n


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Compound and Simple Interest

Compound interest formula

Future value= PV [1+No. of years *interest

rate]

PV = FV n [1/ (1+r)n ]


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Doubling Period

0.35 +____69__

interest rate

Growth Rate

(1+g)


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Present Value Of Uneven Series

PV n= A1/(1+r)+ A2/(1+r)n +..


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Future Value Of An Annuity

An annuity is as stream of constant cash

flow (payment or receipt) occurring ar

regular intervals of time. LIC


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Documents

Slides of Project Mgmt