Project Management

PROJECT MANAGEMENT
MODULE 1
Meaning of project
A project is defined as a sequence of tasks that must be completed to attain a
certain outcome.
Definition of project
According to the Project Management Institute (PMI), the term Project refers to
“ any temporary endeavor with a definite beginning and end”. Depending on its
complexity, it can be managed by a single person or hundreds.
CHARACTERSTICS OR FEATURES OF PROJECT
1. Integration with organisational goals: A project should be prepared within
the scope of organisational goals. The objective of project are framed in tune with
broader or general objective of concern. A project is identified and selected with
a care full scanning, of the total environment within which opportunity should be
exploited. In other words project should not misfit to the organisation.
2. Incorporation of Feasibility reports: A project is the output of various
feasibility studies. It should pass through expert analytical test. If project gets OK
report then it is called most suitable project. Usually project is analysed by the
experts on the field of marketing, technical, financial economic environment etc.
if a project finds difficulty in obtaining are also suggested. Hence, a project
should be rich with the expert’s opinions and appraisal report.
3. Scientific estimation of resources: when a project is finalized wither to
produce a product or render services, the essential resources are also estimated.
A project becomes workable plan only when proper estimation are made for it. A
bare project will have no meaning. The resources are men, machine, material,
money, time etc., which have an economic value with an alternative application.
In simple words, through resources estimation, total project cost is calculated i.e.,
probable cash outflow.
4. Attractive to Investors: investor friendly projects are highly expected and
adored. A project which needs financial assistance from outsiders should be
commercially viable, because the organizations which provides various
assistance in the form of seed money, margin money, and infrastructure are more
interested in returns from the project. Hence, projects should assure the investor
confidence though the strict estimation of returns in future and their present
values i.e. through wealth maximization, projects should attract investor and
maintain confidence
APEKSHA M.A, LECTURER
INDO-AMERICAN DEGREE COLLEGE,BELLARY
PROJECT MANAGEMENT
5. Act as guide: A project should act as ‘guiding lamp’ to the entrepreneurs at

every stage. Basically projects answer three important questions. These are, what
is project? What are its objectives? And how to achieve it? Everyone who looks
into projects should be self- guided the conceptual clarity, the output of the
project, methods adopted etc. always act as guide to entrepreneurs. It is a ready
reckoner for the dream/concepts. If, at any movement, any deviation takes place
the projects again brought back to the original trace. It is a road map with clearly
defined obstacles and probable solutions.
6. Defines Limitations: projects are not only defines objectives, methods,
returns, but also the limitation within which it should be implemented. It lay down
the area of operation. The restrictions may be about the product, range, sector,
geographical area, functions, methods, process, time etc. the projects also specify
cautions step to be taken in case of difficulties. In other words, entrepreneur know
clearly the scope of projects which he should not cross the limits.
7. Simple and clear: the project contains various technical expert’s opinions,
feasibility reports, appraisals etc. ideas should be made simple and
understandable with all clarity. NO confusions, ambiguities should be created in
the mind of reader, specially the financier. A project with certainty and well
defined objectives should be simple, simple does not mean framing only simple
projects, but drafting the project with simplifications. The concepts, ideas, costs,
estimation, uncertainties, risks, returns, management perceptions are to be very
clearly, neatly, systematically presented in the project.
ELEMENTS OF A PROJECT
1. Strategic Planning
The first stage of any project is to understand the need for the project and what it
is trying to achieve. SMART (Specific, Measurable, Attainable, Relevant,
Timely,) objectives need to be established along with measures of success and
key milestones where progress can be reviewed. Working as an internal project
manager will require close liaison with key internal stakeholders and departments
to establish their specific requirements and set commonly agreed objectives.
2. Product Development
The variety of activities that are deemed to be projects are wide-ranging and
varied, and can include new products, processes and services. The development
of any of these needs to be closely linked to meeting defined business objectives
and adding value to the organisation. The benefits of a project should be well

PROJECT MANAGEMENT
articulated at the beginning so there is a clear link to the success of the project
and the impact on overall business aims.
3. Communication
It is vital to sell the benefits of any project to those who will be affected during
the project or by the project’s final outcome. Implementing a new process
requires that end users understand why the project is beneficial and potential
buyers need to be convinced by the advantages of new products and services. In
essence, communicating the message of why new or different is good will help
counteract the typical human reluctance to change.
4. Resources
It is vital to ensure that adequate resources in terms of people, time, finances and
equipment are in place. Internally, this could involve the IT department providing
the appropriate hardware/software, Human Resources recruiting the necessary
people or the Facilities department providing offices or other relevant support.
There also needs to be allocated budgets and finance as well as appropriate
timelines for project completion.
5. People
No project manager works in isolation. There are many stakeholders involved in
a project who all have a specific role to play and who all have a vested interest in
the project’s success. The key stakeholders who drive projects and help make
them a success include:
Sponsor: The project sponsor is the person who defines the business objectives
that drive the project. The sponsor can be a member of the senior management
team or someone from outside of the organisation.
Project Manager: A professional project manager creates the project plan and
ensures that it meets the budget, schedule and scope determined by the sponsors.
The project manager is also responsible for risk assessment and management.
Project Team Members: These can include subject area experts, members of
departments, external professionals and new recruits. Anyone who can offer
positive contribution to the project in terms of their knowledge and capabilities
makes a good team member. Including these elements in a project will ensure that
the final outcome is a successful one.

PROJECT MANAGEMENT
PROJECT LIFE CYCLE

The project management life cycle is usually broken down into four phases:
initiation, planning, execution, and closure. These phases make up the path that
takes our project from the beginning to the end.
1. Initiation
First, we need to identify a business need, problem, or opportunity and brainstorm
ways that your team can meet this need, solve this problem, or seize this
opportunity. During this step, figure out an objective for our project, determine
whether the project is feasible, and identify the major deliverables for the project.
Steps for the project initiation phase may include the following:
 Undertaking a feasibility study: Identify the primary problem our project
will solve and whether our project will deliver a solution to that problem.
 Identifying scope: Define the depth and breadth of the project.
 Identifying deliverables: Define the product or service to provide.
 Identifying project stakeholders: Figure out whom the project affects and
what their needs may be.
 Developing a business case: Use the above criteria to compare the potential
costs and benefits for the project to determine if it moves forward.
 Developing a statement of work: Document the project’s objectives, scope,
and deliverables that we have to identified previously as a working
agreement between the project owner and those working on the project.
2. Planning
Once the project is approved to move forward based on our business case,
statement of work, or project initiation document, we move into the planning
phase. During this phase of the project management life cycle, we break down
the larger project into smaller tasks, build our team, and prepare a schedule for
the completion of assignments.
Steps for the project planning phase may include the following:
 Creating a project plan: Identify the project timeline, including the phases
of the project, the tasks to be performed, and possible constraints.
 Creating workflow diagrams: Visualize our processes using swimlanes to
make sure team members clearly understand their role in a project
 Estimating budget and creating a financial plan: Use cost estimates to
determine how much to spend on the project to get the maximum return on
investment
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 Gathering resources: Build our functional team from internal and external
talent pools while making sure everyone has the necessary tools (software,
hardware, etc.) to complete their tasks
3. Execution
The execution phase turns your plan into action. The project manager’s job in this
phase of the project management life cycle is to keep work on track, organize
team members, manage timelines, and make sure the work is done according to
the original plan.
Steps for the project execution phase may include the following:
 Creating tasks and organizing workflows: Assign granular aspects of the
projects to the appropriate team members, making sure team members are
not overworked
 Briefing team members on tasks: Explain tasks to team members,
providing necessary guidance on how they should be completed, and
organizing process-related training if necessary
 Communicating with team members, clients, and upper management:
Provide updates to project stakeholders at all levels
 Monitoring quality of work: Ensure that team members are meeting their
time and quality goals for tasks
 Managing budget: Monitor spending and keeping the project on track in
terms of assets and resources.
4. Closure
Once our team has completed work on a project, we enter the closure phase. In
the closure phase, we have to provide final deliverables, release project
resources, and determine the success of the project. Just because the major project
work is over, that doesn’t mean the project manager’s job is done—there are still
important things to do, including evaluating what did and did not work with the
project.
Steps for the project closure phase may include the following:
 Analyzing project performance: Determine whether the project's goals
were met (tasks completed, on time and on budget) and the initial problem
solved using a prepared checklist.
 Analyzing team performance: Evaluate how team members performed,
including whether they met their goals along with timeliness and quality of
work

PROJECT MANAGEMENT
 Documenting project closure: Make sure that all aspects of the project are
completed with no loose ends remaining and providing reports to key
stakeholders
 Conducting post-implementation reviews: Conduct a final analysis of the
project, taking into account lessons learned for similar projects in the future
 Accounting for used and unused budget: Allocate remaining resources for
future projects.
PROJECT MANAGER
A project manager is a professional who organizes, plans, and executes projects
while working within restraints like budgets and schedules. Project managers are
in charge of leading teams, defining goals, communicating with stakeholders, and
seeing a project through to its closure.
FUNCTIONS OF PROJECT MANAGER
1. Organizing Your Work : An organized individual needs to have a clear mind
to concentrate on the work to be performed and making the project not only good
but great! Keeping our eye on the big picture and placing tasks and activities in
perfect alignment.
A project is a jumble of many things to be done in precise amounts and in a slated
duration of time. Handling such humongous amounts of work needs
categorization and efficiency to plan out what goes where and who does what, in
such close quarters. This will need us to harbor organization as a personal skill
and make efforts to hone it day in and day out.
2. Sifting through the Options: While we are not yet going into the field of
baking and discussing sifting, we will discuss the move that’s going to help you
immensely in saving time, getting the most of our decisions, and doing the
absolutely necessary things in a project. Dividing into this large amount of data
and picking on only what’s needed can save our time and resources and can help
us to move on with our project in a faster manner.
Sometimes, it is important that we sift through all the inputs coming our way and
only keep in mind or in view the relevant inputs or data, which can be further put
to use. These come under the finer details while managing a project, and a
manager who pays a good deal of attention to performing this action can very
well meet a successful project.
3.Communicating Effectively:Timely communication is also a factor to be
considered when dealing with schedules and decisions to be made and problems
to be resolved effectively. Staying true to the vision of the project, with effective
PROJECT MANAGEMENT
communication skills, a successful Project Manager professional can ensure that

work is done is being communicated to stakeholders as well. This way, even they
will know what’s happening with the project and can give timely inputs in case
of deviation from the project plan at any point in time.
4.Listening to the Fine Prints: Once we get the information from all the sources,
for a successful manager, we can purely swish that magic wand and enable ourself
to make decisions based on what we have heard from the people who will execute
this change. This trait helps stakeholders and project sponsors to understand of
our dedication to getting things right, as we will be taking notes of everything
that is expected by these individuals to make a successful project true to its
objective.
5. Maintaining a Domain Expertise: Technically sound Project Managers have
proved to be most successful as they understand the exact execution of the project
tasks and activities. This added knowledge, apart from project management skills,
techniques, and tools, can bring about an added advantage as well as these can
give the Project Manager an upper hand in exercising authority and gaining
strategic insight.
It will be beneficial for us to conduct an in-depth study into the industry in
question or sit down with a team member who knows how the industry and
processes work so that we can get an opportunity to suggest appropriate changes
into the project.
6. Knowing Your Team: Take the time and effort in knowing more about our
team and use this knowledge to improve our project in any way possible. Be not
a Project Manager functions but a confidant in disguise. Not into their personal
life but their professional life and aspirations.
Remember that a project is not solely about you and what you do to get the desired
results; it’s a team effort towards bringing about a change in the workflow of the
organization and needs you to lead the team.
7. Looking Forward to Work: Successful Project Managers benefits have an
objective in life; to take projects as a challenge, raise the bar to creativity, and put
to use all project management techniques and methodologies to simplify work
and bring out desired outcomes.
Successful Project Managers benefits look at project management as a career and
not just a job to go to. They treat challenges as opportunities to outdo themselves
and always seek to learn and grow in the industry of their choice.

PROJECT MANAGEMENT
ROLES AND RESPONSIBILITIES OF PROJECT MANAGER

1. Activity and resource planning
Planning is instrumental in meeting project deadlines, and many projects fail due
to poor planning. First and foremost, good project managers define the project’s
scope and determine available resources. Good project managers know how to
realistically set time estimates and evaluate the team's or teams’ capabilities.
They then create a clear and concise plan to both execute the project and monitor
its progress. Projects are naturally unpredictable, so good project managers know
how to make adjustments along the way as needed before the project reaches its
final stages.
2. Organizing and motivating a project team
Good project managers don’t get their teams bogged down with elaborate
spreadsheets, long checklists, and whiteboards. Instead, they put their teams front
and center. They develop clear, straightforward plans that stimulate their teams
to reach their full potential. They cut down on bureaucracy and steer their teams
down a clear path to the final goal.
3. Controlling time management
Clients usually judge a project’s success or failure on whether it has been
delivered on time. Therefore, meeting deadlines are non-negotiable. Good project
managers know how to set realistic deadlines, and how to communicate them
consistently to their teams.
They know how to effectively do the following:
 Define activity
 Sequence activity
 Estimate the duration of activity
 Develop a schedule
 Maintain a schedule
4. Cost estimating and developing the budget
Good project managers know how to keep a project within its set budget. Even if
a project meets a client’s expectations and is delivered on time, it will still be a
failure if it goes wildly over budget. Good project managers frequently review
the budget and plan ahead to avoid massive budget overruns.

PROJECT MANAGEMENT
5. Ensuring customer satisfaction

In the end, a project is only a success if the customer is happy. One of the key
responsibilities of every project manager is to minimize uncertainty, avoid any
unwanted surprises, and involve their clients in the project as much as is
reasonably possible. Good project managers know how to maintain effective
communication and keep the company’s clients up-to-date.
6. Analyzing and managing project risk
The bigger the project is, the more likely there are to be hurdles and pitfalls that
weren’t part of the initial plan. Hiccups are inevitable, but good project managers
know how meticulously and almost intuitively, identify and evaluate potential
risks before the project begins. They know how to then avoid risks or at least
minimize their impact.
7. Monitoring progress
During the initial stages, project managers and their teams have a clear vision and
high hopes of producing the desired result. However, the path to the finish line is
never without some bumps along the way. When things don’t go according to a
plan, a project manager needs to monitor and analyze both expenditures and team
performance and to always efficiently take corrective measures.
8. Managing reports and necessary documentation
Finally, experienced project managers know how essential final reports and
proper documentation are. Good project managers can present comprehensive
reports documenting that all project requirements were fulfilled, as well as the
projects’ history, including what was done, who was involved, and what could be
done better in the future.
EVOLUTION OR HISTORY OF PROJECT MANAGEMENT
Stage 1 (Prior to 1958)
 While we could reach back to the projects which produced the Great Wall
or the Pyramids, most histories look to the period around the two world
wars for the first true project management techniques.
 Henry Gantt popularized the Gantt chart only a few decades earlier in about
1910, allowing a new way to visualize projects. Modern mass production
and construction, particularly combined with war efforts, led to more
ambitious projects.
 Throughout history, project management was considered just another skill,
rather than its own discipline. However, historical projects like the
PROJECT MANAGEMENT
Manhattan Project required a more organized approach for effective

project management. Moreover, in many cases there was more depending
on project success than a profit or deadline.
 Gantt Chart: A new way of visualizing tasks is by using Gantt charts which
allowed project leadership to see relationships and project end dates.
Introduced in the beginning of the 1900s, Gantt charts became popularized
after use in the Hoover Dam and Interstate Highway projects.
 Critical Path Method (CPM): One of several network analysis techniques,
CPM is a ubiquitous project management tool. Using CPM, project leaders
plan out the longest-duration path to estimate the project’s duration.
 Project Evaluation Review Technique (PERT): Another tool often used to
manage projects, it was developed for use in such projects as the Polaris
project and the space program.
Stage 2 (1958 to 1979)
 Most historians agree the modern project management era began around
this time. In 1965, Europe’s overarching project management body, the
International Project Management Association (IPMA), was founded.
Shortly afterwards, in 1969, the Project Management Institute was founded
in North America.
 The role of project manager was becoming more important in itself, rather
than as part of the chief engineer’s job. The space program, including the
Apollo moon-shot, was at its peak activity. Due to those projects and
others, techniques like CPM and PERT continued to be developed.
 Until the early 70s, project management was still applied primarily in
defense, construction, and aerospace industries. It wasn’t yet seen as vital
to managing successful projects. However, throughout the 70s it began to
be applied more widely in other areas. The heavy use of tools like CPM
formed an association between project management and systems analysis.
 The 70s also saw the development of some tools we now considered
essential, such as the work breakdown structure (WBS). Some early inkling
of Agile concepts, such as working iteratively, could also be seen.
Stage 3 (1980 to 1994)
 In the 1980s, project managers began to develop new attitudes to project
risk management. The methods used at that point usually referred to now
as Waterfall methods often focused on resolving problems as they arose.
That had led to project failures and increased cost, if not worse.

PROJECT MANAGEMENT
 Instead, more time was spent planning complex projects from the start,
using new methods to anticipate and avoid risks. At the same time,
software engineering was becoming useful in every field. Software
development projects might be very complex, but not have large
administrative teams. Leaner methodologies started to be developed.
 In 1981, the Project Management Institute released the Ethics, Standards,
and Accreditation project report. It offered the first few project
management process groups. In 1986, PMI would go on to issue an
expanded version in the first edition of the PMBOK in an international
journal, the Project Management Journal.
Stage 4 (1995 to Present)
 The modern age is defined by the Internet, as true in project management
as anywhere. The access and connectivity it allows have transformed
methods for organizing and performing work. The project manager role is
filled by a project management professional, a career specialist.
 The demands of software development prompted the development of new
ideas. As a result, in 2001 the Agile Manifesto was published, outlining a
new philosophical approach. It brought earlier techniques together as the
Agile project management method.
 On a wider scale, project management ideas are now applied in corporate
management. As a result, concepts from project management have begun
to shape business strategy overall, benefiting strategic management.
Additionally, a globalized economy means projects have to take multi-
cultural considerations into account.
PROJECT MANAGEMENT
Project Management is the practice of initiating, planning, execution, monitoring
and controlling and closing the work of the team to achieve specific goals and
meet specific success criteria at the specified time. The primary challenge of
project management is to achieve all of the project goals within the given
constraints.
NATURE OF PROJECT MANAGEMENT
1. It is specific in nature.
2. There is specific beginning and end.
3. It aims to make project implementation easy and smooth.
4. It allows to reduce the risk and uncertainty in project execution.
PROJECT MANAGEMENT
5. It is application of general functions of management to a project.

6. It involves an evolution to know any lapse which provide guidelines for
implement.
7. It involves application of various techniques and tools at every step,
8. It covers all the projects originating both inside and outside of an
organization.
9. It is a team event, where a clear programme is chalked out jointly by them.
10. The success of the project depends upon the quickness and effectiveness
of directing and communication.
11. It is always customer specific where projects need to be executed.
12. It is a complex process, but can be succeeded with care and diligence.
13. It is a dynamic process requiring quick and timely decisions.
14. It is a both an art and science (ie. Know how to handle various tools and
drawing specific rules, procedures, standards etc.,)
15. It is a continuous process which emanate one after another in a series of
opportunities.
16. Its success determines the progress of an economy.
BENEFITS OF PROJECT MANAGEMENT
1. STAKEHOLDER BENEFITS
 Better scheduling and budgeting.
 Better cost containment.
 Better communication throughout project including process mapping and
progress reporting.
 Better quality planning.
 Earlier attention paid to “red flags” – project problems that may be
indicators of more trouble to come.
2. TEAM MEMBER BENEFITS:-
 Less rework.
 Better definition of work requirements.
 Better understanding of roles and responsibilities.
 Improved productivity of work through.

PROJECT MANAGEMENT
3 .FUNCTIONAL MANAGER BENEFITS:-

 Better allocation of resources
 Better communication throughout the company.
 Improved work instructions.
4. SENIOR MANAGER BENEFITS:-
 Better use of company resources.
 More attention to risk management.
 Better project cost and schedule estimating.
 Better project monitoring and control.
SCOPE OF PROJECT MANAGEMENT
The scope of the essential project management is covered in four stages. Those
are,
1. Initiation
First, we need to identify a business need, problem, or opportunity and brainstorm
ways that your team can meet this need, solve this problem, or seize this
opportunity. During this step, figure out an objective for our project, determine
whether the project is feasible, and identify the major deliverables for the project.
Steps for the project initiation phase may include the following:
• Undertaking a feasibility study: Identify the primary problem our project will
solve and whether our project will deliver a solution to that problem.
• Identifying scope: Define the depth and breadth of the project.
• Identifying deliverables: Define the product or service to provide.
• Identifying project stakeholders: Figure out whom the project affects and what
their needs may be.
• Developing a business case: Use the above criteria to compare the potential
costs and benefits for the project to determine if it moves forward.
• Developing a statement of work: Document the project’s objectives, scope, and
deliverables that we have to identified previously as a working agreement
between the project owner and those working on the project.

PROJECT MANAGEMENT
2. Planning
Once the project is approved to move forward based on our business case,
statement of work, or project initiation document, we move into the planning
phase. During this phase of the project management life cycle, we break down
the larger project into smaller tasks, build our team, and prepare a schedule for
the completion of assignments.
Steps for the project planning phase may include the following:
• Creating a project plan: Identify the project timeline, including the phases of the
project, the tasks to be performed, and possible constraints.
• Creating workflow diagrams: Visualize our processes using swimlanes to make
sure team members clearly understand their role in a project
• Estimating budget and creating a financial plan: Use cost estimates to determine
how much to spend on the project to get the maximum return on investment
• Gathering resources: Build our functional team from internal and external talent
pools while making sure everyone has the necessary tools (software, hardware,
etc.) to complete their tasks
3. Execution
The execution phase turns your plan into action. The project manager’s job in this
phase of the project management life cycle is to keep work on track, organize
team members, manage timelines, and make sure the work is done according to
the original plan.
Steps for the project execution phase may include the following:
• Creating tasks and organizing workflows: Assign granular aspects of the
projects to the appropriate team members, making sure team members are not
overworked
• Briefing team members on tasks: Explain tasks to team members, providing
necessary guidance on how they should be completed, and organizing process-
related training if necessary
• Communicating with team members, clients, and upper management: Provide
updates to project stakeholders at all levels
• Monitoring quality of work: Ensure that team members are meeting their time
and quality goals for tasks

PROJECT MANAGEMENT
• Managing budget: Monitor spending and keeping the project on track in terms
of assets and resources.
4. Closure
Once our team has completed work on a project, we enter the closure phase. In
the closure phase, we have to provide final deliverables, release project resources,
and determine the success of the project. Just because the major project work is
over, that doesn’t mean the project manager’s job is done—there are still
important things to do, including evaluating what did and did not work with the
project.
Steps for the project closure phase may include the following:
• Analyzing project performance: Determine whether the project's goals were met
(tasks completed, on time and on budget) and the initial problem solved using a
prepared checklist.
• Analyzing team performance: Evaluate how team members performed,
including whether they met their goals along with timeliness and quality of work
• Documenting project closure: Make sure that all aspects of the project are
completed with no loose ends remaining and providing reports to key
stakeholders
• Conducting post-implementation reviews: Conduct a final analysis of the
project, taking into account lessons learned for similar projects in the future
• Accounting for used and unused budget: Allocate remaining resources for future
projects.

PROJECT MANAGEMENT
PROCESS OF PROJECT MANAGEMENT
1. Project Identification: It is concerned with the collection, competition and

analysis of economic data for the eventual purpose of locating possible
opportunities for investment and with the development of such opportunities.
This is to select the best one to achieve greatest success, with least hurdles in
reasonable time frame. It involves the choice of the best opportunities for
investment.
2. Project formulation: It refers to taking a first look at the project idea with care
and critical view of each component to build up and all-round beneficial to
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project. It is an independent and objective assessment of various aspects involved

in investment opportunity with analysis of seven components.
3. Project planning: it is defining all the work required to be carried out so that
all the project participants will understand their role in the project team and
carryout the work assigned to them. Project planning is the process of deciding
in advance about the future cause of actions to be taken. This indicates a
systematic approach to achieve a set of goals.
The rationale for the project planning is based on the benefits derived from it.
viz.,
a. Breaking down complex activities
b. Determining the logical sequence
c. Providing input for managerial process
d. Providing logical basis for making decisions and framework for assessment
e. Facilitating communication system
f. Arranging evaluation and feedback
4. Project implementation: The implementation phase commences from the
time decision to investment taken, and extends upto the commencement of
commercial production. From the process plant initial concept, it proceeds
through the stages of design, quotation, bid analysis, orders and site contracts,
scope variations, work completion and startup.
A project report is insisted upon an entrepreneur who seeks fund assistance from
the financial institutions. Such a report includes information on the aspects like
economic aspect, technical aspects, financial aspects, production aspects and
managerial aspects.
5. Project analysis: it is multidimensional analysis of various dimensions of a
project at each every stage of project life cycle both separately (each aspect) and
relating one aspect with other aspects. This covers technical analysis, economic
analysis, financial analysis, social analysis, institutional analysis and
environmental analysis.
The above discussed phases or ranges may be called ’Project Life Cycle’(PLC),
it starts with the conception of idea(discussed in detail in the following pages)
and ends with the transfer of project for regular and continued working on it.

PROJECT MANAGEMENT
MODULE 2
PROJECT IDENTIFICATION
MEANING OF PROJECT IDENTIFICATION
Project identification is a process in the initiating phase of project life cycle for
identifying a need, problem, or opportunity.
Once identified, a project is initially documented objectively defining what was
identified. This identification can be the result of a organization's strategic
planning, of a company's normal operations, as the response to an unexpected
event, or to a need.
STAGES OF PROJECT IDENTIFICATION
Step 1: Identify & Meet with Stakeholders
Identify all stakeholders and keep their interests while creating project plan. Meet
with the project sponsors and key stakeholders to discuss their needs and
expectations, and establish baselines for project scope, budget, and timeline. Then
create a Scope Statement document to finalize and record project scope details,
get everyone on the same page, and reduce the chances of miscommunication.
Step 2: Set & Prioritize Goals
With a list of stakeholder needs, prioritize them and set specific project goals.
These should outline project objectives, or the metrics and benefits to achieve.
Write the goals and the stakeholder needs to address in the project plan so it's
clearly communicated and easily shareable.
Step 3: Define Deliverables
Identify the deliverables and project planning steps required to meet the project's
goals.
Step 4: Create the Project Schedule
Go through the each deliverable and define the series of tasks that must be
completed to accomplish each one. For each task, determine the amount of time
it will take, the resources necessary, and who will be responsible for execution.
Step 5: Identify Issues and Complete a Risk Assessment
No project is risk-free. If there any issues, that will affect the project planning
process. So, should know how to manage risk in a project and consider the steps
you should take to either prevent certain risks from happening, or limit their

PROJECT MANAGEMENT
negative impact. Conduct a risk assessment and develop a risk management

strategy.
Step 6: Present the Project Plan to Stakeholders
Explain how project plan addresses stakeholders' expectations, and present the
solutions to any conflicts. Make sure that presentation isn't one-sided. Have an
open discussion with stakeholders instead. Make project plan clear and accessible
to all stakeholders. Housing all project plan data in a single location, like a
collaboration tool, makes it easy to track progress.
GENERATION AND SCREENING OF PROJECT IDEAS
Generation and Screening of a project idea begins when someone with specialized
knowledge or expertise or some other competence feels that he can offer a product
or service
♦ Which can cater to a presently unmet need and demand
♦ To serve a market where demand exceeds supply
♦ Which can effectively compete with similar products or services due to its better
quality/price etc.
An organization has to identify investment opportunities which are feasible and
promising before taking a full fledged project analysis to know which projects
merit further examination and appraisal.
WHAT ARE THE SOURCES OF SCREENING OF PROJECT IDEAS?
OR WHAT ARE THE TASKS INVOLVED IN GENERATION AND
SCREENING OF PROJECT IDEAS?
(1) Generation of ideas –
A panel is formed for the purpose of identifying investment opportunities. It
involves the following tasks which must be carried out in order to come up with
a creative idea
(a) SWOT analysis – Identifying opportunities that can be profitably exploited
(b) Determination of objectives – Setting up operational objectives like cost
reduction, productivity improvement, increase in capacity utilization,
improvement in contribution margin

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(c) Creating Good environment – A good organizational atmosphere motivates

employees to be more creative and encourages techniques like brainstorming,
group discussion etc. which results in development of creative and innovative
ideas.
(2) Monitoring the Environment –
An Organization should systematically monitor the environment and assess its
competitive abilities in order to profitably exploit opportunities present in the
environment. The key sectors of the environment that are to be studied are :-
(a) Economic Sector –It includes, State of economy, Overall rate of Growth,
Growth of primary, secondary and tertiary sectors, Inflation rate, Linkage with
world economy, BOP situation, Trade Surplus/Deficit.
(b) Government Sector –It includes, Industrial policy, Government programmes
and projects, Tax framework, Subsidies, incentives, concessions, Import and
export policies, Financing norms.
(c) Technological Sector – It includes, State of technology, Emergence of new
technology, Receptiveness of the industry, Access to technical know how.
(d) Socio-demographic sector – It Includes, Population trends, Income
distribution, Educational profile, Employment of women, Attitude towards
consumption and investment.
(3) Corporate Appraisal –
It involves identification of corporate strengths and weaknesses. The important
aspects that are to be considered are:-
(a) Market and Distribution –
Market Image, Market share, Marketing and Distribution cost, Product line,
Distribution Network, Customer loyalty.
(b) Production and Operations –
Condition and capacity of plant and machinery, Availability of raw materials and
power, Degree of vertical integration, Location advantage, Cost structure – Fixed
and Variable costs.
(c) Research and Development –

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Research capabilities of a firm, Track record of new product development,

Laboratories and testing facilities, Coordination between research and other
departments of the organization.
(d) Corporate Resources and Personnel –
Corporate Image, Clout with government and regulatory agencies, Dynamism of
top management, Competence and commitment of employees, State of industrial
relations.
(e) Finance and Accounting –
Financial leverage and borrowing capacity, Cost of capital, Tax situation,
Relations with shareholders and creditors, Accounting and control system and
Cash flows and liquidity.
PRILIMINARY SCREENING
1. Compatibility with promoter: Screening ideas must have consistency with
personal interest as well as the stakeholders and entrepreneurs. Finance
Assignment Editing services determine that resources must be used well to better
project management.
2. Inputs availability: Input availability affects the decision-making process.
Inputs are needed to implement a feasible project management plan. Finance
Assignment editing services ensure that screening ideas must be aligned with
government rules and national goals.
3. Market Adequacy: Finance Assignment editing services make sure that the
market is adequate to implement the idea. The market must have adequate sale
opportunity as a capital return possibility.
4. Cost Reasonableness: Finance Assignment editing services determine that the
cost that is being invested in the project returns with at least a minimum profit
margin.
5. Risk Acceptability: This last screening idea ensures that the object of the
project has been considered after accessing all the risks involved in the same.
PROJECT FORMULATION
MEANING
Project formulation is a process by which one obtains a complete picture about
the project being undertaken without really arriving at a detailed feasibility study.
The information collected through this exercise can be used for preliminary
evaluation and screening of projects.
PROJECT MANAGEMENT
STAGES IN PROJECT FORMULATION

1. Feasibility Analysis
2. Technical Analysis
3. Economic Analysis
4. Project Planning & Design
5. Network Analysis
6. Input Analysis
7. Financial Analysis
8. Cost-Benefit Analysis
9. Pre-Investment Analysis
Feasibility Analysis:
• First stage in project formulation
• Examination to see whether to go in for a detailed investment
proposal or not
• Screening for internal and external constraints
Conclusion could be:
• The project idea seems to be feasible
• The project idea is not a feasible one
• Unable to arrive at a conclusion for want of adequate data
Techno-economic Analysis
 Choice of Optimal Technology, Plan and Design etc.
 Specifications and standards
 Demand for the project output(goods/services)
 Overall benefits
 Provides platform for preparation of detailed project design
Project Design and Network Analysis
• It is the heart of the project
• It defines the sequence of events of the project
• Time and resources are allocated for each activity
• It is presented in the form of a network drawing/bar chart
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• It helps to identify project inputs, finance needed and cost- benefit profile of
the project
Input Analysis
• Its assesses the input requirements during the construction and operation of the
project
• It defines the inputs required for each activity
• Inputs include materials, equipment, machines, software, human resources etc.
Financial Analysis
• Involves estimation of the project costs, operating cost and fund requirements
• It helps in comparing various project proposals on a common scale
• Analytical tools used are discounted cash flow, IRR, cost-volumeprofit
relationship and ratio analysis
• Investment decisions involve commitment of resources in future
• It needs caution and foresight in developing financial forecasts
Cost- Benefit Analysis
• The overall worth of a project
• The project design forms the basis of evaluation
• Total costs and benefits there to (Benefits > Costs or B/C>1)
Pre-investment Analysis
• The results obtained in previous stages are consolidated to arrive at clear
conclusions
• Helps the project-sponsoring body, the project-implementing body and the
consulting agencies to accept/reject the proposal
Project Report Comprises of;
• Detailed analysis of the project
• An expert prepares the report before the investment in project is done
• The report assesses the demand for proposed product/service
• Works out cost of investment and profitability on this investment
• It acts as an instrument to convince investors to invest in project
PROJECT MANAGEMENT
A project report gives information on the following:

• Economic aspects – present market, scope for growth, justification for
investment
• Technical aspects – technology, machinery, equipment needed
• Financial aspects – Total investment needed, cost of capital and return on capital
• Production aspects – Product details, justification
• Managerial aspects – Qualifications, experience of people needed for
managerial posts.
NEED FOR FEASIBILITY STUDY
1. Market Viability
A feasibility study typically includes a market analysis that looks at the current
state and direction of a market and whether a new venture would be viable in the
market.
2.Financial Viability
Even if consumers are interested in a new product or service, a business can't
succeed unless it can produce and deliver the product to customers at a price that
is profitable. A feasibility study can assess the start-up and operational costs of a
venture and make revenue projections to estimate whether a project is likely to
be profitable. If a product is too expensive to produce to be profitable, managers
can look into ways to cut costs to make it financially feasible.
3.Identifying Threats
Many external factors can harm the profitability of a business. Conducting a
feasibility study can help managers identify threats such as market competition,
unfavorable laws and new technologies that might affect a project's chances of
success. Identifying threats early on gives managers the opportunity to take action
to mitigate the impact they might have on a business as a new venture proceeds.
4. Identifying Opportunities
Small businesses often focus on selling products and services to small segments,
or niches, within larger markets that have specific needs and preferences. A
feasibility study can help business managers identify niches in markets.
MARKET FEASIBILITY

PROJECT MANAGEMENT
Market Feasibility Study determines the depth and condition of a particular

market and its ability to support a particular development. The main objective of
a market feasibility study is to understand the market to determine if enough
demand exists to make the venture successful. It provides a more in-depth and
thorough analysis than any other type of market research.
Why is Market Feasibility Study Required?
The nature of the business environment today is way dynamic and has led to an
increase in the risks of the business. Businesses must outshine the competition in
terms of value provided for their clients. Survival in such a marketplace is
difficult and entering is an equally daunting task. A lack of proper planning can
lead to the failure of entrants. Therefore, to ensure profitability, it is essential to
analyze before leaping. Market Feasibility Study provides support to the
organizations for such kind of analysis.
Why Organizations should not ignore the importance of Market Feasibility
Study:
The market feasibility study is an important tool to access the viability and
potential of a new business.
 It is an excellent instrument for predicting the probability of failure or
success of a new business venture
 It can be adopted in cases of incorporating new products and ideas into
business
 It includes all probable actions that are required to be taken for determining
whether a business idea is meant to succeed
 It is a stepwise process to weigh the pros & cons of each step before getting
into the actual process
 It helps through making key decisions to move forward with the ideas,
whether to refine or leave them altogether

PROJECT MANAGEMENT
MODULE 3
PROJECT FINANCING
MEANING
Project Financing is a long-term, zero or limited recourse financing solution that
is available to a borrower against the rights, assets, and interests related to the
concerned project.
Features of project financing
Capital Intensive Financing Scheme: Project Financing is ideal for ventures
requiring huge amount of equity and debt, and is usually implemented in
developing countries as it leads to economic growth of the country. Being more
expensive than corporate loans, this financing scheme drives costs higher while
reducing liquidity
Risk Allocation: Under this financial plan, some of the risks associated with the
project is shifted towards the lender. Therefore, sponsors prefer to avail this
financing scheme since it helps them mitigate some of the risk. On the other hand,
lenders can receive better credit margin with Project Financing.
Multiple Participants Applicable: As Project Financing often concerns a large-
scale project, it is possible to allocate numerous parties in the project to take care
of its various aspects. This helps in the seamless operation of the entire process.
Asset Ownership is Decided at the Completion of Project: The Special
Purpose Vehicle is responsible to overview the proceedings of the project while
monitoring the assets related to the project. Once the project is completed, the
project ownership goes to the concerned entity as determined by the terms of the
loan.
Zero or Limited Recourse Financing Solution: Since the borrower does not
have ownership of the project until its completion, the lenders do not have to
waste time or resources evaluating the assets and credibility of the borrower.
Instead, the lender can focus on the feasibility of the project. The financial
services company can opt for limited recourse from the sponsors if it deduces that
the project might not be able to generate enough cash flow to repay the loan after
completion.
Loan Repayment With Project Cash Flow: According to the terms of the loan
in Project Financing, the excess cash flow received by the project should be used

PROJECT MANAGEMENT
to pay off the outstanding debt received by the borrower. As the debt is gradually
paid off, this will reduce the risk exposure of financial services company.
Better Tax Treatment: If Project Financing is implemented, the project and/or
the sponsors can receive the benefit of better tax treatment. Therefore, this
structured financing solution is preferred by sponsors to receive funds for long-
term projects.
Sponsor Credit Has No Impact on Project: While this long-term financing plan
maximises the leverage of a project, it also ensures that the credit standings of the
sponsor has no negative impact on the project. Due to this reason, the credit risk
of the project is often better than the credit standings of the sponsor.
SOURCES OF PROJECT FINANCING
1. Business Angels: Business Angels have a vast experience in the industry
they operate in. Private investors may invest in a company for capital gain.
The investment is for a place on board or an equity stake.
2. Venture Capital: Venture capitalists invest in a project for a non-
executive position on the board. They provide capital in exchange for an
equity share or a position at a strategic level. Once the value of shares
increases, they may sell those for a profit.
3. Loan for Business: Apart from secured lending, a company can choose
the unsecured business loan that comes for a fixed tenure with a repayment
plan. The cost of the loan is determined by estimating the returns from the
project. The interest payment is tax-deductible in some cases. An
agreement is made between the financial institution and the borrower for a
specific loan amount and tenure.
4. Overdrafts: Overdrafts are ideal for short-term finance. The period of
overdraft facility is for a year or less. The interest is only charged on the
amount spent from the person’s account. Such financing can be arranged
quickly like business loans.
5. Share Capital: The shareholders get profits from dividends. This share of
profit is derived from ordinary shares (owned by business owners who can
share profits of an organization from dividends) or preference shares (does
not belong to company owners but a third party). Capital gain is expected
from selling the shares in future. It is the company shareholders who raise
the Share Capital.
6. Debentures: Debenture loans come with a fixed or a floating rate and are
provided against an organization’s assets. The debenture holders receive
payment of interest before the shareholders receive their dividend payment.
If the business fails, then these holders are liable as preferential creditors.
PROJECT MANAGEMENT
ROLE OF FINANCIAL INSTITUTIONS

1.Regulation of Monetary Supply: Financial institutions like the Central Bank
help regulate the money supply in the economy to maintain stability and control
inflation.
For example, the Central Bank applies various measures like increasing or
decreasing repo rate, cash reserve ratio, and open market operations, i.e., buying
and selling government securities, to regulate liquidity in the economy.
2. Banking Services: Financial institutions, like commercial banks, help their
customers by providing savings and deposit services. In addition, they offer credit
facilities like overdraft facilities to the customers to cater to the need for short-
term funds. Commercial banks also extend loans like personal loans, education
loans, mortgages, or home loans to their customers.
3.Insurance Services: Financial institutions, like insurance companies, help to
mobilize savings and investment in productive activities. In return, they assure
investors against their life or some particular asset at the time of need. In other
words, they transfer their customer’s risk of loss to themselves.
4.Capital Formation: Financial institutions help in capital formation, i.e.,
increase in capital stock like the plant, machinery, tools and equipment, buildings,
transport, communication, etc. Moreover, they mobilize the idle savings from
individuals in the economy to the investor through various monetary services.
5. Investment Advice: There are many investment options available at the
disposal of individuals and businesses. But it is not easy to choose the best option
in the current swiftly changing environment. Almost all financial institutions
(banking or non-banking) have an investment advisory desk that helps customers,
investors, and businesses to select the best investment option available in the
market according to their risk appetite and other factors.
6. Brokerage Services: These institutions provide their investors access to
several investment options available in the market, ranging from stock bonds
(common investment alternative) to hedge funds and private equity investment
(lesser-known alternative).
7.Pension Fund Services: Through their various kinds of investment plans,
financial institutions help individuals plan their retirement. One such investment
option is a pension fund. The individual contributes to the investment pool by
employers, banks, or other organizations and gets the lump sum or monthly
income after retirement.

PROJECT MANAGEMENT
8.Trust Fund Services: Some financial organizations provide trust fund services
to their clients. They manage the client’s assets, invest them in the best option
available in the market, and take care of its safekeeping.
9. Financing the Small and Medium Scale Enterprises: Financial institutions
help small and medium-scale enterprises set up themselves in their initial business
days. They provide long-term as well as short-term funds to these companies. The
long-term fund helps them form capital, and short-term funds fulfill their day-to-
day working capital needs.
10. Act as A Government Agent for Economic Growth: The government
regulates financial institutions on a national level. They act as a government agent
and help grow the nation’s economy. For example, to help out an ailing sector,
financial institutions, as per the guidelines from the government, issue a selective
credit line with lower interest rates to help the industry overcome the issues it is
facing.
CONVENTIONAL FINANCING
 Conventional financing is a home financing scheme offered by financial
institutions or banks, which are not guaranteed by government agencies.
 Conventional loans are given as per guidelines issued by government-
sponsored entities.
 This ensures that such loans can be sold in the secondary market.
 These loans are also called conforming loans, as they conform to guidelines
issued by government-sponsored entities.
 There are also non-conforming loans, which do not meet the requirements
of the government entities.

PROJECT MANAGEMENT
MODULE 4
PERT AND CPM
PROJECT EVALUATION REVIEW TECHNIQUE(PERT)
Project Evaluation and Review Technique (PERT) is a procedure through which
activities of a project are represented in its appropriate sequence and timing. It is
a scheduling technique used to schedule, organize and integrate tasks within a
project.
Creating a PERT Chart
A flowchart is used to depict the Project Evaluation Review Technique. Nodes
represent the events, indicating the start or end of activities or tasks. The
directorial lines indicate the tasks that need to be completed, and the arrows show
the sequence of the activities.
There are four definitions of time used to estimate project time
requirements:
Optimistic time – The least amount of time it can take to complete a task
Pessimistic time – The maximum amount of time it should take to complete a task
Most likely time – Assuming there are no problems, the best or most reasonable
estimate of how long it should take to complete a task.
Expected time – Assuming there are problems, the best estimate of how much
time will be required to complete a task.
Several terms used in a PERT chart:

Float/Slack – Refers to the amount of time a task can be delayed without resulting
in an overall delay in completion of other tasks or the project
Critical Path – Indicates the longest possible continuous path from the start to the
end of a task or event
Critical Path Activity – Refers to an activity without any slack
Lead Time – Refers to the amount of time needed to finish a task without affecting
subsequent tasks
Lag Time – The earliest time by which a successor event/task can follow a prior
event/task

PROJECT MANAGEMENT
Fast Tracking – Refers to handling tasks or activities in parallel

Crashing Critical Path – Shortening the amount of time to do a critical task
Implementation of a PERT chart:
 Identify the different tasks needed to complete a project. Make sure to add
these in the right order and indicate the duration of each task.
 Create a network diagram. Use arrows to represent the activities and use
nodes as milestones.
 Determine the critical path and possible slack.
ADVANTAGES or BENEFITS OF PERT
 It helps maximize the use of resources.
 It makes project planning more manageable.
 It’s useful even if there is little or no previous schedule data.
 It enables project managers to better estimate or determine a more definite
completion date.
DISADVANTAGES OR LIMITATIONS OF PERT
 In complex projects, many find PERT hard to interpret, so they may also
use a Gantt Chart, another popular method for project management.
 It can be tedious to update, modify, and maintain the PERT diagram.
 It entails a subjective time analysis of activities and, for those who are less
experienced or are biased, this may affect the project’s schedule.
CPM( CRITICAL PATH METHOD)
The critical path method (CPM) is a technique where you identify tasks that are
necessary for project completion and determine scheduling flexibilities. A critical
path in project management is the longest sequence of activities that must be
finished on time in order for the entire project to be complete.
REASONS TO USE THE CPM
 Improves future planning: CPM can be used to compare expectations with
actual progress. The data used from current projects can inform future
project plans.
 Facilitates more effective resource management: CPM helps project
managers prioritize tasks, giving them a better idea of how and where to
deploy resources.
 Helps avoid bottlenecks: Bottlenecks in projects can result in lost valuable
time. Plotting out project dependencies using a network diagram, will give
PROJECT MANAGEMENT
you a better idea of which activities can and can’t run in parallel, allowing
you to schedule accordingly.
ADVANTAGES OR BENEFITS OF CPM
 Stronger Communication: Critical path method schedules require input
from key players across all stages of a project lifecycle. Bringing together
the expertise of various team members and subcontractors, from architects
to electricians to construction managers, makes the schedule more realistic
and robust from the start.
 Easier Prioritization: Identifying the critical path helps project managers
clarify priorities and determine the float of each task. Float, also known as
slack, measures how long a task can be delayed before it impacts the
completion date.
 Improved Accuracy in Scheduling: The critical path method is a popular
and reliable tool for improving the accuracy of project schedules. Many
project managers use CPM in conjunction with the Program Evaluation
and Review Technique (PERT), another project management tool that
helps teams estimate total project duration. By using both PERT and CPM,
project managers can create the most accurate forecasts possible.
 Better Risk Detection: Critical path schedules make clear the
relationships between dependent tasks, so project managers can better
predict the knock-on effects of a delay. CPM prevents more surprises and
offers earlier opportunities to make corrections than other methods that do
not track dependencies.
 Greater Adaptability: When work does not go to plan, CPM network
diagrams give project managers the tools to quickly rework the schedule.
Certain software programs can even model the effects of different
adjustments, so project managers can compare outcomes and select the
most beneficial option.
 More Visual Impact: CPM network diagrams and Gantt chart
representations of critical path schedules give project managers a quick
understanding of a project’s timeline and progress. By referring to these
visual tools, project managers and team members can develop a more
intuitive understanding of a project’s trajectory than they might with a less
visually dynamic option.
DISADVANTAGES OF CRITICAL PATH METHOD
 Increased Complexity: The critical path method involves complex
calculations with many moving parts. While software can automate the
PROJECT MANAGEMENT
calculations, inputting accurate information requires detailed research and

does not eliminate the risk of human error.
 Decreased Applicability: Not all project types lend themselves to the
critical path method. For example, CPM requires that timelines be
predictable and repeatable. CPM is not a good fit for creative projects, such
as product design or research tasks, that often come together in
unpredictable ways.
 Reduced Attention to High-Float Tasks: When using the critical path
method, project managers focus on critical path tasks. While the critical
path does determine total project duration, using this method can make it
easier to ignore non-critical or high-float tasks, thus resulting in delays.
 Less Insight Into Resource Constraints: Another drawback of the critical
path method is that it does not give good insight into how resource
constraints affect project scheduling. The network diagram and CPM
schedule do not take into account the availability of equipment or labor
resources. At the same time, CPM does not highlight overlap of resource
use, which can result in congestion.
Difference between PERT and CPM
BASIS FOR
PERT CPM
COMPARISON
Meaning PERT is a project CPM is a statistical

management technique, technique of project
used to manage management that
uncertain activities of a manages well defined
project. activities of a project.
What is it? A technique of planning A method to control cost

and control of time. and time.
Orientation Event-oriented Activity-oriented
Evolution Evolved as Research & Evolved as Construction

Development project project
Model Probabilistic Model Deterministic Model

PROJECT MANAGEMENT
BASIS FOR
PERT CPM
COMPARISON
Focuses on Time Time-cost trade-off
Estimates Three time estimates One time estimate
Appropriate for High precision time Reasonable time estimate

estimate
Management of Unpredictable Activities Predictable activities
Nature of jobs Non-repetitive nature Repetitive nature
Critical and Non- No differentiation Differentiated

critical activities
Suitable for Research and Non-research projects like

Development Project civil construction, ship
building etc.
Crashing concept Not Applicable Applicable
What is Estimate Activity time?

Estimate activity duration is the technique for evaluating the number of work
periods required to finish individual activities with estimated resources.
The key advantage of this procedure is that it projects the amount of time that
every task will take to complete, which is a significant input to the development
schedule process.

PROJECT MANAGEMENT
Following are the tools & techniques for estimating the activities that work
for all types of projects.
Expert Judgment: It is the most commonly used method to get an estimate; it’s
essential for the Project Management team to include experts with the best hands-
on experience in understanding how to utilize the project requirements. It is also
crucial to ensure that everyone shares a mutual knowledge of what needs to be
delivered. Also, look for experts who will be working on the project.
Analogous Estimation: It is a method that helps a Project Management team
refer to similar and existing projects that can be helpful to evaluate the activity
durations of the current project. The analogous estimation method can help a
project manager to estimate the duration of the completion of the project. Ensure
that the previous projects that are similar to the current task are a success.
PERT Method: It is an instance that might be analyzed statistically to evaluate
the ERP project implementation to check the duration of the project. However,
this method may not give a precise prediction. This technique utilizes the
knowledge and experience of an expert to present an important date when a
couple of data don’t permit carrying out a particular analysis. The ability to verify
the assessed project duration period in terms of its probability to meet organized
value justifies the generally utilizing the PERT technique by project managers.
Three-Point Estimates: Under the three-point estimates procedures, the PERT
(Program Evaluation and Review Technique) is the most broadly utilized
statistical tool to decide the time duration of a project. In Project Management,
the PERT technique is the best way to determine the estimated activity durations
of a Project. It uses three-time estimates to determine a rough period of the
estimated activity durations.
CRASH TIME PROJECT RISK
Project crashing in project management is a method used to speed up a project’s
timeline by adding additional resources without changing the scope of the project.
Crashing activities in project management could include adding extra personnel
to a task to finish it more quickly, or it could involve paying a premium for a
faster result.
ESTIMATING TOTAL PROGRAM TIME
STEPS
1. Review project scope: The first step in estimating project hours is reviewing
the project's scope or overall purpose. This can help you get a better
PROJECT MANAGEMENT
understanding of the project and all tasks involved. The scope statement may also
contain information related to deadlines or budget constraints. This can help you
create and refine your estimate.
EXAMPLE: if the project has a strict deadline, you may need to gather more data
to get a more accurate estimate. If the project has a flexible deadline, you may
include an estimated range.
2. Create a list of tasks: After reviewing the project's objectives, consider
creating a list of all tasks involved. Depending on your project's stage, you may
find this information in the execution plan. If you're just starting to plan your
project, consider collaborating with a project team to divide the project into
smaller tasks.
For example, if the project's main objective is to design a new computer, you
might divide these tasks into researching similar products, creating a prototype
and testing the design.
3. Collect data for each task: After gathering or creating your list of tasks, you
can begin estimating each part. There are different strategies you can use to
complete this step. One popular method is asking the individual who completes
the task.
For example, if you are managing a marketing project, you might ask the graphic
designer how long they take to design a new logo. An expert in the field may be
able to provide more accurate estimations.
4. Include external hours: After collecting data from your internal team, you
can gather information from any external sources you plan to work with. This
may include freelancers, contracted professionals or specialists. Depending on
the industry, the external professional may provide you with an estimate.
For example, if you're hiring an external contractor, they may estimate how long
each building task will take based on their previous experience and knowledge.
5. Consider revision hours: Depending on your project and industry, you may
want to include revision hours in your estimate. These are the hours you may need
to review or revise the tasks.
For example, if you're estimating a new product design, you may include revision
hours for the testing stage. After testing the product, your team may need
additional hours to refine the design based on the testing results.

PROJECT MANAGEMENT
6. Consider adding contingency hours: You may decide to include contingency

hours to plan for unexpected events. Contingency hours are extra hours that allow
for unplanned changes. This is optional and may vary depending on the industry.
For example, in a construction or production schedule, there may be more
unexpected events, such as shipping delays or extreme weather. You can add
contingency hours to your estimate to help prepare for this.
7. Add all components together: Once you've gathered all of your data, you can
add the total hours together. This includes internal tasks, external duties, revision
hours and contingency hours. Typically, professionals write the final estimate in
hours rather than days. This is because team members may complete multiple
tasks at once, and the number of professionals that complete each task can vary.
For example, a team of 10 professionals can complete a 100-hour task in several
days if they spend most of the workday completing the task. If they only spend
one hour per day on the task, it'll take more days to complete.
8. Review and revise the estimate: Once you have your total estimate, you can
review the number to ensure it's accurate. You may compare this number to other
projects and discuss it with your team members. If it seems much higher or lower
than previous, similar projects, consider reviewing each task to determine why.
If you gathered data from individual team members, you may compare the tasks
and ask follow-up questions as needed. This can help you refine your total hours
and get a more accurate estimate.
MODULE 5
PROJECT QUALITY MANAGEMENT(PQM)
Project quality management is a process that considers how a project should
proceed to achieve the desired quality for the project’s deliverables. It requires

PROJECT MANAGEMENT
project managers to continually measure the quality of the activities and processes
involved in the project.
ELEMENTS OR COMPONENTS OF PROJECT QUALITY
MANAGEMENT
Quality Planning: Planning for quality is the first step in project quality
management. Before beginning a new project, agree upon what counts as
"quality" for that specific project and what needs to be done in order to achieve
that level of quality. As mentioned, this will depend on what that customer or
stakeholder expects from the project’s deliverables.
During this stage, decide what monitoring quality will look like and document
this process. Your project quality management plan should include the steps
you’ll take, such as weekly meetings or marking your progress against a checklist,
what quality metrics you’ll be measuring against, and what milestones you need
to meet during the project.
Quality Assurance: The goal here is to prevent problems before they happen by
following processes as agreed. While quality assurance is preventative, the next
step is more reactionary.
Quality Control: Lastly, it's integral to assign an enforcer to the project who can
assess whether or not the desired level of project quality is being met. This person
will need to review progress against the plan and checklist regularly. This
provides an opportunity to identify problems and consider methods of
improvement, including adjusting risk factors and contingency plans.
What are the Benefits of Project Quality Management?
 Higher Levels of Customer Satisfaction: Delivering bad quality products
or offering disappointing services reflects poorly on a company. Whether
you’re producing video games for a large customer base or are working
one-to-one to provide a bespoke service to a client, delivering quality is
important. If a customer is unhappy, the deliverable has failed to measure
up to the desired level of quality.
 Project quality management helps ensure that processes are optimized for
quality and that all deliverables are produced at a level that guarantees
customer satisfaction.
 Better Quality Products: Even if a customer will be satisfied with a
product of mediocre quality, there are no downsides to exceeding
expectations and offering better quality products. Project quality

PROJECT MANAGEMENT
management can help businesses improve processes and create better

products and services.
 Increased Productivity: Productivity is about more than working fast and
efficiently. It’s about building strong relationships between team members,
improving communication and internal processes. Project quality
management considers the quality of a project’s output and the quality of
a project’s plans, procedures, and progress. This means it aims to improve
all areas of a project, including its team's productivity.
 Financial Growth: Project managers will always aim to keep costs modest
while still delivering quality. If, as mentioned above, you can streamline
processes and increase productivity levels, it’s possible that the business
will generate higher profits. Higher profits can be guaranteed by raising
prices due to increased levels of quality or reducing operational costs by
eliminating unnecessary processes.
PROJECT TIME MANAGEMENT
It refers to a component of overall project management in which a timeline is
analyzed and developed for the completion of a project or deliverable.
Project time management consists of six different components or steps.
Activity Definition– Identifying and scheduling different components of the
project management sequence that are required for completion of project
deliverables.
Activity Sequencing– The process of project time management that defines the
order in which deliverables must be completed.
Activity Resource Estimating– Indentifying and defining the types and quantities
of resources and materials required to complete a deliverable.
Activity Duration Estimating– Identifying and estimating the timeline for
completion of durables.
Schedule Development- the analysis of the order of activities, timelines,
resources, and schedule barriers to develop a project schedule.
Schedule Control– Project management intervention to mitigate changes to the
product schedule
BENEFITS OF PROJECT TIME MANAGEMENT
 Less stress: Project completion plans reduce stress levels associated with
meeting deadlines.
PROJECT MANAGEMENT
 Increased productivity: Knowing what to prioritize increases

productivity and focuses on the most beneficial and strategic needs.
 Fewer mistakes: Focusing on only one aspect of a project helps get the
right work done and prevents mistakes overall.
 Improved proficiency: Having a timeline in place for projects provides a
view into what teams need to work on and when; making them and their
organization more proficient in all work.
 More opportunities: Project time management helps teams or
departments become more efficient at managing projects and getting them
completed on time and on budget. This opens more opportunities to
manage additional projects in the future.
 Stay on budget: Everyone knows the phrase, “Time is money.” Keeping
a project on target not only maintains budget but keeps stakeholders happy
that their dollars are working in the most efficient, valuable way.
 Meet goals: Time management plans help to achieve project goals as well
as impact other personal and professional goals. All of these benefits lead
to increased efficacy and satisfaction across the board.
PROJECT REVIEW
Project Review is a process of examining and auditing planned tasks, activities,
procedures, events and other work components of a project to identify whether
the project’s requirements can be fully addressed by the planned amount of work
and to determine what additional resources are necessary to match the work with
the requirements.
STEPS OF PROJECT REVIEW
1. Scope / Objective of Review: Ensure that the scope and objectives of the
review are understood. This will usually come from the sponsor or senior
management. This will usually provide insights into any concerns that have
driven the request for the review. It is important to agree / understand the expected
time line for the review and the format for presenting findings.
2. Preparation: Like with anything, preparation is key to making the review as
successful as it can be. This will include:
 Documenting and confirming scope, duration and format for findings
 Pre-read of project documentation including business case, status reports,
steering committee packs, etc
 Capturing and agreeing stakeholders to be interviewed
 Scheduling interviews
PROJECT MANAGEMENT
 Drafting initial hypothesis of problems

 Drafting questions for interviews to explore hypothesis
3. Sponsor Interview: The first interview should be with the sponsor. This will
allow clarification of concerns, background to project, understanding why the
project is important, etc. This step is very important where time is limited and the
review has to be completed in a short period of time. It will ensure that the review
is focused on the areas of concern. However, ensure that this meeting (as with
all the meetings) is with an open mind as there may be areas the sponsor has
missed or has a bias.
4. Project Manager Interview: Ideally this should be the next interview on the
schedule. It will allow the concerns to be probed and tested to see if the concerns
(and the hypothesis) are well founded. It is not unusual for the project manager
to be defensive. Therefore, you will need to be persistent and phrase the questions
so as not to be confrontational.
5. Stakeholder Interviews: The other scheduled meetings should be completed
as quickly as possible and, information gathered in earlier meetings tested. This
may then prompt further questions meaning that you then have to meet again with
some of the stakeholders.
6. Analysis: When the interviews and cross checks are complete, the data should
be analysed and reviewed against original concerns and hypothesis. This will
allow draft findings to be documented.
7. Draft Conclusion: It is important to review the draft conclusion with the
sponsor and, if appropriate, the project manager. This will allow them to
understand the findings and importantly, the reasons for the findings.
8. Publish Final Review: Finalise the conclusion in a document ensuring that it
contains an executive summary that clearly answers the original scope /
objectives of the review and identifies high risk items.
PROJECT COMPLETION
Successful project completion means we have delivered what we agreed on in the
scope of the project, while ensuring that all acceptance criteria have been met, the
stakeholders are satisfied, and business objectives have been fulfilled.

PROJECT MANAGEMENT
STEPS:
Step 1: Study the project thoroughly
It’s important you learn about the project and the significance attached to it by
the client. This will help you answer the following questions:
• What is the goal of the project and how big is it?
• How will this project benefit a client?
• Where does this project stand as far as your organization goes?
• Are there adequate resources available to complete this project?
Step 2: Prepare a concrete project plan
A detailed plan will list important milestones in your project along with members
assigned and their roles. Make sure you assign generous deadlines that give your
team quality breathing space. Get the client’s approval on your plan.
After this, hold sessions with your team and the senior management to explain
your plan in detail. The plan will provide all members in your team a clear idea
of what is expected of them.
Step 3: Daily monitoring of work assigned after project begins
Managing a project is no easy task. It requires a lot of dedication and effort. You
will have to monitor tasks on a daily basis. This will ensure that you are not
lagging behind in any task. It will also help you assign more resources to a task
that’s taking longer to complete than usual.
Step 4: Keep the client informed on a predetermined basis
Reach an understanding on how you would update the client about project
developments. Sending two emails in a week is ideal. Be honest with the client
and provide him/her with all kinds of updates – positive and negative.
Step 5: Perform testing at regular intervals
You will have to test the project’s deliverables at regular intervals to make sure
everything is going according to plan. This will help you avoid heartache at the
closing stages of your project. Perform remedial action immediately if you find
anything amiss during testing.
Step 6: Final project delivery
The most anticipated moment in a project is its completion! It can be a moment
of immense joy or disappointment. Make sure the final solution meet’s the
PROJECT MANAGEMENT
client’s expectations. Follow Steps 1-5 religiously to ensure everything ends

smoothly.


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PROJECT MANAGEMENT

5. Act as guide: A project should act as ‘guiding lamp’ to the entrepreneurs at

APEKSHA M.A, LECTURER

APEKSHA M.A, LECTURER

PROJECT LIFE CYCLE

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communication skills, a successful Project Manager professional can ensure that

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ROLES AND RESPONSIBILITIES OF PROJECT MANAGER

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5. Ensuring customer satisfaction

Manhattan Project required a more organized approach for effective

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5. It is application of general functions of management to a project.

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3 .FUNCTIONAL MANAGER BENEFITS:-

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PROCESS OF PROJECT MANAGEMENT

1. Project Identification: It is concerned with the collection, competition and

project. It is an independent and objective assessment of various aspects involved

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negative impact. Conduct a risk assessment and develop a risk management

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(c) Creating Good environment – A good organizational atmosphere motivates

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Research capabilities of a firm, Track record of new product development,

STAGES IN PROJECT FORMULATION

A project report gives information on the following:

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Market Feasibility Study determines the depth and condition of a particular

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ROLE OF FINANCIAL INSTITUTIONS

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Several terms used in a PERT chart:

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Fast Tracking – Refers to handling tasks or activities in parallel

calculations, inputting accurate information requires detailed research and

Meaning PERT is a project CPM is a statistical

What is it? A technique of planning A method to control cost

Orientation Event-oriented Activity-oriented

Evolution Evolved as Research & Evolved as Construction

Model Probabilistic Model Deterministic Model

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Focuses on Time Time-cost trade-off

Estimates Three time estimates One time estimate

Appropriate for High precision time Reasonable time estimate

Management of Unpredictable Activities Predictable activities

Nature of jobs Non-repetitive nature Repetitive nature

Critical and Non- No differentiation Differentiated

Suitable for Research and Non-research projects like

Crashing concept Not Applicable Applicable

What is Estimate Activity time?

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APEKSHA M.A, LECTURER

6. Consider adding contingency hours: You may decide to include contingency

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