Introduction to Project

Management
Additional reading
 Why do projects fail? 29-11-2015
MBA MBA IM MBAIM PGPBA
# MBA 15-17 MBA EE 12-15
14-16 14-16 13-15 15-16

Flawed Project Improper Improper

1 Politics Poor planning unclear objectives
charter planning Planning

Poor
Incorrect cost Unknown Wrong Poor
2 requirement Lack of Comm.
estimation risks execution teamwork
gathering

Assessment of
Poor Team Time Lack of Poor risk Schedule and cost
3 customer
Mgt management planning management overruns
expectation

Market
Improper resource Comm. Wrong Poor
4 constraints/ Lack of funds
allocation gaps estimates requirements
survey

Undefined Incorrect Poor Time and cost

5 Risk analysis Culture and ethics
scope estimates execution overrun

Financial Unskilled Poor resource Lack of Proactive

6
constraints people mgt management
 WHY DO PROJECTS FAIL ? BA_16-17.27062016

1) Undefined scope
2) Lack of planning.
3) Resources
4) Poor execution
5)Co-ordination
6)Top management support
 WHY DO PROJECTS FAIL ? MBA_15-17.30112015

REASON
REASON votes
votes
•Competition analysis 2
•Flawed Project charter 7
•Wrong assumptions 2
•Incorrect cost estimation 7
•Stakeholder’s involvement 2
Assessment of customer expectation 6
•Poor process design 2
•Improper resource allocation 6
•Design flexibility 2
•Risk analysis 5(+6)
•Availability of materials 1
•Financial constraints 5(+6)
•Forecasting errors 1
Collection of requirements 5(+4)
•Top management support 1
•Marketing strategy 5(+3)
•Holistic approach 1
•Failing to meet deadlines/milestones 5(+2)
•Deviation from plan 0
•Regulatory issues 4
•Testing procedure 0
•Negative publicity 4
•Cost reduction 0
•Response to changes 3
•Conflicts with public 0
•Faulty design 3
•Poor working conditions 0
•IR problems 3
•Improper communication 0
•Lack of innovation 0
•Distribution channels 0
 WHY DO PROJECTS FAIL ? PGPBA_15-16.10122015
# Reasons Votes
1 Unclear Objectives 6
2 Lack of communication at any level 5
3 Overruns of schedule and costs 3
4 Unrealistic time scales and poor planning 3
5 Poor Requirements(Since No Competition) 2
6 Culture or ethical misalignment 2
7 Lack of a centralised proactive management initiative to combat risks 2
8 Team lacking SME (Subject Matter Expertise) needed to complete the 2
9 Inaccurate cost estimation 2
10 Sudden Attrition 1
11 Larger Sales Cycle Then Expected 1
12 Poor CEO Vision 1
13 Unrealistic time frames and tasks 1
14 Bad stakeholder management 1
15 Unclear Project Objectives and scope 1
16 Recession 0
17 Poor Sales Team 0
18 Inefficient way to document and track progress 0
19 Inaccurate cost estimation 0
20 Disregard of project warning signs 0
21 Poor leadership at any level /Poor Project Management 0
Projects DO Fail! (Business Standard 16-10-2012, P1)

As on June 1 2012
564 projects being monitored by MOSPI*
251 projects face a delay between 1 to 212 months
192 projects face cost overruns
Original cost Rs. 732 Billion
Revised to Rs.875 Billion
Next slide has reasons for cost and time overruns

* Ministry Of Statistics and Programming Implementation

source- google images – downloaded on 05-06-2014
Project Management and Operations Management

Project Management Operations Management

Change
Repetitive

Unique
Continuous

Temporary
Common factors
• People
Not done before •Constraints
•PDCA
•Goal driven
Definite start and end
Project Phases -Sequential

•Next phase starts only when the previous phase is complete.

•Reduces uncertainty
•Eliminates options for reducing schedule
Project Phases - Overlapping

Stage Gate

•Next phase starts before the previous phase is complete.

•Called “fast tracking”
•Risk of (rework) increases
Predictive Or Fully Plan Driven Project Life Cycle
Project Phases- Iterative

•One phase is planned at a time

•Next phase is planned as work in previous phase starts
•Useful when scope is relatively undefined
•Called “continuous elaboration”
•Project team must be available for
• entire project OR
• at least two consecutive phases
Project Phases Exit Criteria

•SCQT
•Regulatory, security and functional audits
•Proof of acceptance by customer (validate scope)
•Sign off by customer
•Specific definition of phase end
 EEF – Enterprise Environment Factors

• Inputs to planning process Culture, Structure,

• constraint/ enhance
•+ve or –ve impact
Standards
Processes (Govt.,
•Shared vision, mission
•Values,norms
Industry)
Infrastructure
Human resources,
•Belief, expectation
skills
HR
Work policies, guidelines
authorisation
systems
Market environment
Stakeholder risk
tolerances
Political climate
Communication
channels
Commercial databases
PMIS
 OPA – Organisation Process Assets (Processes and Procedures)

• Process related assets

•Knowledge base
Std. processes, quality
•Lessons learnt
•Historical information
policy
Guidelines, Criteria
•Risk data
Templates (WBS, RBS)
Communication
requirements
Closure guidelines
Financial procedures
Issue management
Change
process control
Risk control
procedures
procedures
Priorisation procedure
OPA – Organisation Process Assets (Corporate knowledge
base)

Process measurement
databases
Project files (archives STQC)
Historical information, lessons
learnt
Issue, defect databases
Configuration management
databases
Financial databases
Terms used in Project Management

OPA and EEF

WBS (Work Breakdown Structure)

RBS (Resource Breakdown Structure)

RBS (Risk Breakdown Structure)

RAM (Responsibility Assignment Matrix)