ProjectManagement

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Unit1
Structure

BasicsofProjectManagement

1.1 Introduction 1.2 Definition 1.2.1 Project 1.2.2 Management 1.2.3 ProjectManagement 1.2.4 ProjectCycle 1.2.5 Process 1.2.6 Resource 1.2.7 Scope 1.2.8 ProjectCost 1.3 NeedforprojectManagement 1.4 ProjectManagementKnowledgeAreasandRelationship 1.5 TheProjectLifeCycle 1.6 TheProjectManager 1.7 KnowledgeAreas,ProcessandConnection 1.8 PhasesofProjectManagementLifeCycle 1.8.1 AnalysisandEvaluationPhase 1.8.2 MarketingPhase 1.8.3 DesignPhase 1.8.4 Inspecting,TestingandDeliveryPhase 1.8.5 PostCompletionAnalysis 1.9 ProjectManagementProcesses 1.9.1 ProjectProcesses 1.9.2 ProcessGroups 1.9.3 ProcessInteractions

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1.9.3.1 PlanningProcesses 1.9.3.2 ExecutingProcesses 1.9.3.3 ControllingProcesses 1.9.3.4 ClosingProcesses 1.9.4 Customization 1.10 ProjectFailure 1.11 EssentialsofProjectManagementPhilosophy 1.11.1 WhatisaProject? 1.11.2 Projectparametersfornegotiation 1.11.3 Howdoesprojectmanagementaddvalue. 1.12 ProjectManagementPrinciples 1.13 Roles,ResponsibilitiesandTeamwork 1.13.1 ThePlayers 1.13.2 RolesandResponsibilitiesofprojectteam 1.14 Summary TQs AnswertoSAQsandTQs

1.1

Introduction

TheeconomyofIndiahasbeengrowingoverthelastfewyears.Lotsofindustrieshavecomeupin varioussectors.Ithasbeenaboomingmarket.Lotsofmoneyisbeinginvestedinvariousprojects. The government is always looking for growth of the country. In this perspective it becomes very importantformanagerstomanagetheprojectseffectivelyinordertomaximizethereturns.Itisan areafacedwithunprecedentedgrowthhencetheneedofproperandeffectiveprojectmanagement. Thisprofessionthereforerequiresefficientandeffectiveprojectmanagers. Moreandmorecompaniesacrosstheglobeareadoptingthepracticesofmanagingprojects,looking out for skilled managers and practitioners thereby increasing the demand for project managers globally.

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Studentsareadvisedtoreadtheconceptsandunderstandthephilosophyofprojectmanagement. This book focuses on the development, maintenance, evaluation, promotion and administration of projects. Students will be able to understand the concepts in project management and prepare themselvestohandleprojectsasmostoftheconceptsinthisbookareexplainedadoptingpractical approach.Studentswillbeabletounderstandtheapplicationprocessinprojectmanagement. In this chapter, therefore, we would attempt to explain project management through a preview of globallyrecognizedbestpracticeswhichformapartofmanagingprojectsofallsizesandtypesin virtuallyanydomainofbusiness.Varioussectionsandsubsectionsofthisunitwouldcoveraspart ofbasicsofprojectmanagement,keyaspects,definitionandbasicsofprojectmanagement.

LearningObjectives:

1. BasicsofProjectManagement. 2. Definitions,terminologiesandconceptsinprojectmanagement 3. Theimportanceofprojectmanagementinbusiness 4. Scopeofprojectplanninganditsphases 5. Theroleofprojectmanager 6. Reasonsforprojectfailure

SelfAssessmentQuestions1Trueorfalse
1. TheeconomyofIndiahasbeengrowingoverthelastfewyears.

1.2

Definition

1.2.1

Project A project is a set of activities which are networked in an order and aimed

towardsachievingthegoalsofaproject.Uponthecompletionofalltheactivitiesthegoalsofthe projectwouldhavebeenachieved.Aprojectisundertakentoachieveapurpose.

1.2.2

ManagementManagementisthetechniqueofunderstandingtheproblems,needsand

controllingtheuseofresources,suchascost,time,manpower,materials,etc.

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1.2.3

Project management It is an art of controlling the cost, time, manpower, hardware

andsoftwareresourcesinvolvedinaproject.

1.2.4

ProjectCycle Aprojectcyclebasicallyconsistsofthevariousactivitiesofoperations,

resourcesandthelimitationsimposedonthem.

1.2.5

Process A process is part of the project which consists of simple and routine

instructions to achieve a desired result of any activity of the project. A process is responsible to bringaboutthechangesintheinputfedtotheprocessandgivesoutdesiredoutputsasresultof theprocess.

1.2.6
project.

Resource It refers to manpower, machinery, money and materials required in the

1.2.7

Scope It refers to the various parameters that affect the project in its planning,

formulationandexecutions.

1.2.8

ProjectCostItisthebudgetedexpenditureoftheproject.

Examplesof Project a) commissioninganewindustrialunit b) constructionofahouse c) settingupofanoffice d) developingatechnology e) launchinganewproductinthemarket SelfAssessmentQuestions2:TrueofFalse 1. A project cycle basically consists of the various activities of operations, resources and the limitationsimposedonthem. 2. Project management is an art of controlling the cost, time, manpower, hardware and software resourcesinvolvedinaproject.
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1.3 Needforprojectmanagement
Projectmanagementisnecessarybecause a) aprojectrequireshugeinvestmentswhichshouldnotgowaste b) alossinanyprojectwouldhavedirectorindirectimpactonthesociety c) preventfailuresinprojects d) scopeoftheprojectactivitymayundergoachange e) technologyusedmaychangeduringthecourseofprojectexecution f) consequencesofnegativityinprojectrelatedproblemscouldbeveryserious g) changesineconomicconditionsmayaffectaproject

SelfAssessmentQuestions3Fillintheblanks:
1. Projectmanagementisnecessarybecause_____usedmaychangeduringthecourseofproject execution.

1.4 ProjectManagementKnowledgeAreasandRelationship
Itcomprisesofvarioustechniquesneededtomanageprojects,thepracticalmethodologiesadopted in formulating a project and managing the resources which would affect the project completion. Relationshipwithothermanagementdisciplinesisessentialforaprojecttobesuccessful.Supporting disciplines includes law, strategic planning, logistics, human resource management and domain knowledge.

SelfAssessmentQuestions4:TrueofFalse
1. Relationshipwithothermanagementdisciplinesisnotessentialforaprojecttobesuccessful.

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1.5

TheProjectLifeCycle

Alifecycleofaprojectconsistsof a) understandingthe scopeoftheproject, b) objectivesoftheproject, c) formulationandplanningvariousactivities, d) projectexecutionand e) projectmonitoringandcontroltheprojectresources.

SelfAssessmentQuestions5Fillintheblanks:
1. A life cycle of a project consists of understanding the ______ and _____of the project, formulationandplanningvarious______, projectexecutionandproject_______and______the projectresources.

1.6

TheProjectManager(PM)

Aprojectmanagerisapersonwhomanagestheproject.Theprojectmanagerisresponsibletocarry outallthetasks ofaproject.Responsibilitiesoftheprojectmanager Budgetingandcostcontrol Schedulingtasks Allocatingresources Trackingprojectexpenditures Ensuringtechnicalquality Managerelationswiththecustomerandcompany

Life cycle ofa project manager overlaps with the development life cycle in the middle. Dutiesofa projectmanagerstartsbeforethedevelopmentandcontinueafterdeliveryoftheproduct.

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SELFASSESSMENTQUESTIONS6 FillInTheBlanks 1. The________isresponsibletocarryoutallthetasksofaproject. 2. Lifecycleofaprojectmanager_____withthedevelopmentlifecycleinthemiddle.

1.7 KnowledgeAreas,ProcessandConnection
Themainknowledgeareasandprocessesinprojectmanagementandtheirrelationships,alongwith theprocessgroupsanditsconnectionisshowninthefollowingfigures.

Initiating Processes

Planning Processes

Controlling Processes

Executing Processes

Closing Processes

ConnectionbetweenProcessGroupsinaPhase

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Project management

ProjectIntegration Management

ProjectScope Management

ProjectTime Management

ProjectCost Management

ProjectQuality Management

ProjectHuman Management

Project Communication Management

ProjectRisk Management

Project Procurement Management

KnowledgeAreasandProcess

1.8 PhasesOfProjectManagementLifeCycle
Thevariousphasesinprojectmanagementlifecycleare Analysisandevaluation Marketing Design Inspecting,testinganddelivery Postcompletionanalysis

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1.8.1 AnalysisandEvaluationPhase
It starts with receiving a request to analyze the problem from the customer. The project manager conducts the analysis of the problem and submits a detailed report to the top management. The report should consist of what the problem is, ways of solving the problem, the objectives to be achieved,andthesuccessrateofachievingthegoal. Thetasksofthisphaseareasfollows: SpecificationRequirementsAnalysis(SRA):Ithastobeconductedtodeterminetheessential

requirementsofaprojectforachievingthetarget. Feasibility study: To analyze whether the project is technically, economically and practically

feasibletobeundertaken. Tradeoff analysis: To understand and examine the various alternatives which could be

considered Estimation: To estimate the project cost, effort required for the project and functionality of

variousprocessesintheproject Systemdesign:chooseageneraldesignthatcanfulfilltherequirements Projectevaluation:evaluatetheprojectintermsofexpectedprofit,costandrisksinvolved

1.8.2 MarketingPhase
Aprojectproposalispreparedbyagroupofpeopleincludingtheprojectmanager. Thisproposalhastocontainthestrategiesadoptedtomarkettheproducttothecustomers.

1.8.3 DesignPhase
Inputsreceived Projectfeasibilitystudy Preliminaryprojectevaluation Projectproposal Customerinterviews

Outputsproduced Systemdesignspecification

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ProgramFunctionalspecification Programdesignspecification Projectplan

1.8.4 Inspecting,TestingandDeliveryPhase
Duringthisphase,theprojectteamworksundertheguidanceoftheprojectmanager. The project manager has to ensure that the team working under him, implements the project designsaccurately. Theprojecthastobetrackedormonitoredthroughitscost,manpowerandschedule. Managingthecustomer Marketingthefuturework Performqualitycontrolwork

1.8.5 PostCompletionAnalysisPhase
Thestaffperformancehastobeevaluated Documentthelessonsfromtheproject Projectfeedbackanalysis Projectexecutionreport Analysisoftheproblemsencounteredduringtheproject

SelfAssessmentQuestions7:TrueorFalse
1. Theanalysisandevaluationphasestartswithreceivingarequesttoanalyzetheproblemfrom theManager 2. SQChastobeconductedtodeterminetheessentialrequirementsofaprojectforachievingthe target. 3. Designphaseconsistofinputsreceivedandoutputproduced. 4. ProjectfeedbackanalysisandProjectexecutionreportisdoneinpostcompletionanalysisphase oftheproject.

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1.9

ProjectManagementProcesses

Projectmanagementconsistsofthefollowinginteractingprocessesorganizedingroups. Projectprocesses Processgroups Processinteractions Customization

1.9.1 ProjectProcesses
Aprojectprocessisaseriesofactivitiestoachievethetarget. Projectprocessisclassifiedintotwomaincategories: a) Project management process Project management process is defined by the organization. It describesandorganizestheworkoftheproject. b) Product oriented processProduct oriented process is defined by the life cycle. It specifies and createsproductsandrelatedworks.

1.9.2 ProcessGroups
Itconsistsofthefollowing a) Initiatingprocesses:recognitiontostartandestablishingcommitment. b) Planning processes: devising and maintaining a workable scheme to accomplish the business need c) Executingprocesses:coordinatingpeopletocarryouttheplan d) Controllingprocesses:monitoringandmeasuringprogressandtakingremedialaction e) Closingprocesses:Formalizingacceptanceandbringingprojecttoanorderlyend.

1.9.3 ProcessInteractions
Theindividualprocessesarelinkedbyinputsandoutputs Inputs:Itreferstotheclientdocumentsconvertedtoactionplanstobeactedupon. Tools and techniques: It refers to the mechanisms applied on to the inputs to create desired outputs Outputs:Itreferstothedocumentsthatareresultsoftheprocess.

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Process Interactions Initiating Processes Every process is initiated by management group decisionwhichresultsinthenextphaseoftheproject. 1.9.3.1 PlanningProcesses Planninghasthemajorimportance Plansarenothingplanningiseverything Planningprocessesarehighlyinterdependent Ifthecostisunacceptable,scopeandtimemayneedtoberedefined

1.9.3.2 Executingprocesses Interactionsdependonthenatureofthework Theyaredynamic&dependentonTeamInnovations

1.9.3.3 Controllingprocesses Measuringprojectperformance[time,cost,quality] Identifyingvariancesfromtheplan Updatingprojectplans Takingcorrectiveaction

1.9.3.4 ClosingProcesses Reviewoftheproject Findings Analysisoftheprojectperformancewithrespecttovariousprocesses

1.9.4 Customization Large projects may need details A detailed project management plan might be necessary to indicateeverydetailintheinitialstages. SmallerprojectsmayneedrelativelylessdetailsAdetailedplanmaynotberequiredintheinitial stages.

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Processdetailsmightchangeforotherreasons Resourceidentificationmightberequiredfor scopedefinition.

SelfAssessmentQuestions8:Fillintheblanks: 1. Projectmanagementconsistsofinteractingprocessesnamely _____,_____,interactions, and ________whichareorganizedingroups. 2. Projectprocessisclassifiedinto______and_______process. 3. _____and_____referstothemechanismappliedontheinputstocreatedesiredoutputs.

1.10 ProjectFailure
Whydoprojectsfail? Aprojectmayfailbecauseofoneormoreofthefollowingreasons a) Incidenceofprojectfailure: Projectsbeinginitiatedatrandomatalllevels Projectobjectivenotinlinewithbusinessobjective Projectmanagementnotobserved Projectmanagerwithnopriorexperienceintherelatedproject Nondedicatedteam Lackofcompletesupportfromclients b) Factorscontributingtoprojectsuccessnotemphasized: Projectobjectiveinalignmentwithbusinessobjective Workingwithintheframeworkofprojectmanagementmethodology Effective scoping, planning, estimation, execution, controls and reviews, closure intertwined withquality. Proactiveapproachtowardsprojectbottlenecks Communication and managingexpectations effectively with clients, team membersand stake holders PriorexperienceofPMinasimilarproject c) OverviewofInformationandCommunicationTechnologies(ICT)projects:
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Involve information and communications technologies such as the World Wide Web, email, fiberopticsandsatellites Enable societies to produce, access, adapt and apply information in greater amounts, more rapidlyandatreducedcosts Offerenormousopportunitiesforenhancingbusinessandeconomicviability. d) Commonproblemsencounteredduringprojects Noprioritizationofprojectactivityfromanorganizationalposition Oneormoreofthestagesintheprojectmishandled Lessqualified/nondedicatedmanpower Absenceofsmoothflowofcommunicationbetweentheinvolvedparties

SelfAssessmentQuestions9:TrueofFalse
1. OneofthereasonswhyaprojectmayfailisthatProjectmanagementisnotobserved. 2. Iftheprojectobjectivesareinalignmentwithbusinessobjective,thentheprojectmaybeafailure.

1.11 EssentialsofProjectManagementPhilosophy

1.11.1 Whatisaproject?
Aprojectmaybestatedas Aprogrammeofnonroutineworkbringingaboutabeneficialchange Guided by at least one wellengaged sponsor who has both adequate authorities and resourcestochartertheprojecteffort Hasastartandanenddate Amultidisciplinaryteambroughttogetherfortheproject Scopeofworkthatiswelldefined Constrainedbycost,timeandquality

1.11.2

Projectparametersfornegotiation

Duringthecourseofaprojectateamnegotiatesforoneormoreofthese: Scope,costandscheduleobjectives

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Changestoscope,costorschedules Contracttermsandconditions Resources

1.11.3 HowdoesprojectmanagementAddValue?
Projectsmaybecompletedwithoneormoreofthefollowing: Stretcheddeadlines Overstressedteam Wastedresources Unmetcustomerfunctionalrequirements Overshotbudget

Agoodprojectmanagementmethodologyprovidesaframeworkfortheprocesses. It provides guidelinesfor theexecution ofthe projectthat greatly increases the chances of the projectbeingsuccessful,andthereforeprovidesvaluetotheproject. Someofthestepsofagoodprojectmanagementare Definetheproject Reduceittoasetofmanageabletasks Obtainappropriateandnecessaryresources Buildateamtoperformtheprojectwork Plantheworkandallocatetheresourcestothetasks Monitorandcontrolthework Reportprogresstoseniormanagementand/ortheprojectsponsor Closedowntheprojectwhencompleted Reviewittoensurethatthelessonsarelearntandwidelyunderstood

SelfAssessmentQuestions10TrueorFalse:
1. Aprojectmaybestatedasasingledisciplinedteambroughttogetherfortheproject. 2. Scope,costandschedulearesomeoftheparametersusedforprojectnegotiation. 3. SomeofthestepsofagoodprojectmanagementareDefinetheproject,reduceittoasetof manageabletasksandobtainappropriateandnecessaryresources.

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1.12 ProjectManagementPrinciples:
Fivedimensionsthatmustbemanagedonaproject a) b) c) d) e) Features Quality Cost Schedule Staff

Thesedimensionsareindependentofoneanother.Ifyouaddstaff,theschedulemayshortenand thecostwillincrease.Thetradeoffsamongthesefivedimensionsarenotlinear.Foreachproject, weneedtodecidewhichdimensionsarecriticalandhowtobalancetheotherssoastoachievethe keyprojectobjectives.Eachofthefivedimensionscantakeoneofthreerolesonanygivenproject ADriver,aConstraintoraDegreeofFreedom. A driver is a key objective of the project. A constraint is the limiting factor beyond the control of project team. Any project dimension that is neither a driver nor a constraint becomes a degree of freedom. Aconstraintgivestheprojectteamvirtuallynoflexibility.Adriverhaslowflexibilityandadegreeof freedomthatprovideswiderlatitudetobalancethatdimensionagainsttheotherfour.Animportant aspectofthismodelisnotwhichofthefivedimensionsturnouttobedriversorconstraintsonany givenproject,butthattherelativeprioritiesofthedimensionsbenegotiatedinadvancebytheproject team,customersandmanagement. AgraphicalwaytodepictthesepointsistouseaKiviatdiagram. AKiviatdiagramisagraph whichallowsustoplotseveralvalues(five,inthiscase)asanirregularly shaped polygon on a set of normalized axes. The position of each point on its axis indicates the relativedegreeofflexibilityofthatdimensionforaparticularproject.Itisplottedonanarbitraryscale of010. 0wouldindicatecompletelyconstrainedand 10wouldindicatecompletelyflexible. The kiviat graph is a useful tool in project management to compare the relative flexibility of the parametersconsidered.

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Features
10 8 6 4 2 0

Staff

Quality

Schedule

Cost

SelfAssessmentQuestions11:Fillintheblanks
1. Fivedimensionsthatmustbemanagedonaprojectare____,_____,Cost,_____,andstaff. 2. A___________givestheprojectteamvirtuallynoflexibility. 3. Agraphicalwaytodepictthesepointsistousea_________.

1.13 Roles,ResponsibilitiesandTeamwork

1.13.1

ThePlayers

Theplayersinaprojectmanagementaretheindividualsandtheorganizations. i. Thatareactivelyinvolvedintheproject ii. Whose interests may be affected (positively or negatively) by the outcome (success or failure)oftheproject

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iii. Exertinfluenceovertheprojectanditsresults iv. Playersarealsocalledstakeholdersoftheproject v. Projectmanagertheindividualresponsibleformanagingtheproject vi. Customer the individual or organization who will use the product the end result of the project. vii. Performingorganizationtheenterprisewhoseemployeesaremostdirectlyinvolvedindoing theworkoftheproject. viii. Sponsorthe individual orgroup within or external to the performingorganization thatfunds theproject.

1.13.2 RolesandResponsibilitiesoftheProjectTeam
Therearenumberofprojectswhichanorganizationworkson.Itisnotpossibleforoneindividualto manage all the projects. There is a team of managers who manage the projects. There may be different teams working on different projects. An experienced project manager and his team may managemorethanoneprojectatatime.Theprojectteamisresponsibleforensuringthattheproject uponcompletionshalldeliverthegaininthebusinessforwhichitisintendedfor.Theprojectteam has to properly coordinate with each other working on different aspects of the project. The team membersareresponsibleforthecompletionoftheprojectaspertheplansoftheproject.

SelfAssessmentQuestions 12:TrueorFalse
1. Theplayersinaprojectmanagementaretheindividualsandtheorganizations. 2. Anexperiencedprojectmanagerandhisteamcanmanageonlyoneprojectatatime. 3. Theteammembersareresponsibleforcompletionoftheprojectaspertheplansoftheproject.

1.14Summary
Nowthatyouhavegonethroughthisunit,youshouldhaveunderstoodandlearntthefundamentals ofProjectManagement,thevariousdefinitions,terminologiesandconceptsinprojectmanagement. Alsoexplainedistheimportanceofprojectmanagementinbusinessapplicationsandthescopeof projectplanning.Alsothevariousphasesinvolvedinprojectmanagementhasbeenexplained.This unit has been presented to the students to understand the role of project manager and also the

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reasonsfor projectfailure. Studentsare advised to go through thefollowing terminal question and answerthem.

TerminalQuestions:
1. DefineProjectmanagement,Resource,ProcessandProjectCycle. 2. WhatisthenecessityofProjectManagement? 3. Explainthelifecycleofaproject. 4. Whatarethevariousphasesofprojectmanagementlifecycle?Explain. Explainthevariousinteractingprocessesofprojectmanagement. 6. Whataretheparametersconsideredinaprojectforitsnegotiation? 7. Whatarestepsinagoodprojectmanagement? 8. Explainthefivedimensionsthatmustbemanagedonaproject. 9. Whataretherolesandresponsibilitiesofaprojectmanager?

AnswerstoSelfAssessmentQuestions:
SELFASSESSMENTQUESTIONS1 1True SELFASSESSMENTQUESTIONS2 1True,2True SELFASSESSMENTQUESTIONS3 1Technology SELFASSESSMENTQUESTIONS4 1False SELFASSESSMENTQUESTIONS5 1Scope,objectives,activities,monitoringandcontrol. SELFASSESSMENTQUESTIONS6 1ProjectManager,2Overlaps SELFASSESSMENTQUESTIONS7

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1True,2False,3True,4True SELFASSESSMENTQUESTIONS8 1ProjectProcesses,processgroups,customization 2Projectmanagement,productoriented 3ToolsandTechniques. SELFASSESSMENTQUESTIONS9 1True,2False SELFASSESSMENTQUESTIONS10 1False,2True,3True SELFASSESSMENTQUESTIONS11 1Features,quality,schedule 2Constraint 3Kiviatdiagram SELFASSESSMENTQUESTIONS12 1True,2False,3True

AnswerstoTerminalQuestion:
1. Refer 1.2 2. Refer 1.3 3. Refer 1.5 4. Refer 1.8 5. Refer 1.9 6. Refer 1.11.2 7. Refer 1.11.3 8. Refer 1.12 9. Refer 1.13.2

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