Project Management

Module 1: Background of project management

• Project

• Project Management

• Syllabus
Examples
Case study (Group of 5 students)

• Concept of the project

• Identification of the project Power point presentation on
• Project life cycle individual topic
• SWOT analysis
• Project cost
• Work breakdown structure, Organisational
breakdown structure
• 5M (Man, Money, Method, Machine and Material)
• Network analysis CPM and work
• Project risk analysis
• Gantt chart (Project monitoring tool)
 What is a Project?
• A project is a combination of interrelated activities to
achieve a specific objective within a schedule, budget, and
quality.

• It involves the coordination of group activity, wherein the

manager plans, organizes, staffs directs, and controls to
achieve an objective, with constraints on time, cost, and
performance of the end product.

• Project management is the combination of project and

management.
 Project
• A project is a temporary venture undertaken to create
a unique product, service, or result
– Temporary– definite beginning and end
– End– objectives have been achieved
– Terminated– objectives can not be met
• Temporary does not apply to product, service or result created by the project
• Project creates unique product, service or result although repetitive element may be
• some deliverable but it does not change fundamental uniqueness
present in
• Although buildings are constructed with similar materials and same team, but each location
and design is unique
 Project
• Project can create:
• Product, can be either a component of another item or an end item in
itself
• A result such as item or document (e.g. a research project )

•
Some examples of project
– Developing new product or service
– Effecting a change in the structure, staffing, or style of an organization.
– Developing or acquiring a new or modified information system
– Implementing a new business process or procedure
✔ A job that has a beginning and an end (Time)
✔ A specified outcome(Scope)
✔ At a stated level of Performance (Quality)
✔ At a budget(Costs).

Fundamentals of PM
 Why do companies use
PM?
• To handle projects effectively in an organization.
• To define the project and agree with the customer
• To plan and assess resource needs for the project
• To estimate project cost and make proposals
• To plan & schedule activities in a project.
• To allocate the right resource at the right time.
• To assess risk and failure points and make backup plans.
• To lead a project team effectively and communicate well among team members.
 The elements of projects
• Project Objectives: • Change Management:
• Scope: • Monitoring and Control
• Stakeholders: Mechanisms:
• Project Team: • Documentation:
• Project Schedule: • Closure Plan:
• Project Review and Evaluation:
• Project Budget:
• Legal and Ethical Considerations:
• Risk Management Plan:
• Communication Plan:
• Quality Plan:
• Procurement Plan:
 Histroy or evolution of project management
• Informal Project Management:

• Scientific Management Era (Late 19th to Early 20th Century):

– The principles of scientific management, introduced by Frederick
Taylor.

– Introduction of Gantt Charts (1910s):

– Pert and CPM Techniques (1950s):

– Formation of Project Management Institute (PMI) (1969):

 Histroy or evolution of project management
• Introduction of Agile Methodologies (2001 Onward):

• Integration of Technology (Late 20th Century Onward):

• Globalization and Virtual Teams (Late 20th Century Onward):

• Lean Project Management (2000s Onward):

• Incorporation of Sustainability (21st Century):

• Hybrid Project Management Approaches:

Need of project management

• Complexity of Projects: • Time Management:

• Limited Resources: • Improved Communication:
• Achieving Objectives and • Customer Satisfaction:
Goals: • Adaptability and Flexibility:
• Risk Management: • Documentation and
Accountability:
• Stakeholder Involvement: • Continuous Improvement:
• Optimized Resource
Allocation:
• Quality Assurance:
 Project Constraints
There are four typical constraints to watch out for:

⚫ Scope – defines the needs that the customer has, or the requirements expressed
and implied.

⚫ Time – a project is usually required by a customer by an agreed date.

⚫ Quality – to what standard is the project expected to deliver?

⚫ Resources – the amount of money, budget, or resources that are available to be

expended on the project.
 Projects vs Operations
The main differences between projects and operations are:
⚫ Temporary vs. Ongoing: A project is a temporary endeavor with a defined start and end date,
while operations are ongoing activities that are part of the day-to- day activities of an
organization.

⚫ Unique vs. Repetitive: Projects are unique, with a specific goal or objective that is different from
routine operations. Operations, on the other hand, are repetitive, with activities that are
performed on a regular basis.

⚫ Scope vs. Continuity: Projects have a specific scope that defines what is included and excluded
from the project, while operations are focused on maintaining continuity in the activities.

⚫ Resources vs. Capacity: Projects require specific resources to achieve their objectives, such as
people, time, and budget. Operations, on the other hand, require a capacity of resources to
sustain the ongoing activities of the organization.

⚫ Risk vs. Stability: Projects are often associated with risk, as they involve a degree of uncertainty
and may encounter unexpected challenges. Operations are generally more stable, with a focus on
maintaining consistent performance and minimizing risk.
 Process & Project Management
Process Project
1. Repeat process or product 1. New process or product
2. Several objectives 2. One objective
3. Ongoing 3. One shot – limited life
4. People are homogeneous 4. More heterogeneous
5. Systems in place to integrate 5. Systems must be created to
integrate efforts
efforts 6. Performance, cost & time less
6. Performance, cost, & time certain
known 7. Outside of line organization
7. Part of the line organization 8. Violates established practice
8. support of established practice
Characteristics of Projects:
• Temporary Nature:
• Unique Deliverables:
• Cross-Functional Teams:
• Progressive Elaboration:
• Uncertainty and Risk:
• Inter-dependencies:
• Resource Constraints:
• Customer Involvement:
• Change Management:
• Flexibility and Adaptability:
 Characteristics of a Project
• Objectives • Change
• Life Cycle • Response to
environments
• Definite time limit
• Forecasting
• Uniqueness
• Rational choice
• Team work • Principle of
• Complexity succession
• Sub-contracting • Optimality
• Risk & uncertainty • Multidisciplinary
• Customer specific
nature
• (a) Objectives
• A project has a set of objectives or a mission. Once the objectives are achieved, the
project is treated as completed. For example, the objective of a project may be
construction of a highway connecting two cities 'A' & 'B', covering a distance of 20
kilometers. Once the construction of the highway is completed the project comes to an
end.
• (b) Life cycle
• A project has a life cycle. The life cycle consists of the following stages:
• 1. Conception stage : Where project ideas are conceived
• 2.Design stage: Where detailed design of different project areas are worked out.
• 3.Implementation stage: Where the project is implemented as per the design.
• 4.Commissioning stage: Where the project is commissioned after implementation.
Commissioning of a project indicates the end of its life cycle.
• (c) Definite Time Limit
• A project has a definite time limit. It can not continue for ever. Construction of a highway
connecting two cities is a project which is to be completed within a given time limit.
Maintenance of the highway is an on going process and it will continue for ever. Hence
highway maintenance will not come under the purview of project.
• (d) Uniqueness : Every project is unique and no two projects are similar. Setting up a Cement
plant and construction of a highway are no doubt two different projects having unique
characteristics. Constructing highway between cities A&B and constructing another highway
between cities C&D are also in themselves, in view of the differences existing in the organization,
infrastructure, location. technical specifications and the people behind the projects.
• (e) Team work : A project normally consists of diverse areas. There will be personnel
specialized in their respective areas. Any project calls for the services of experts from a host of
disciplines. Co-ordination among the diverse areas calls for teamwork. Hence a project can be
implemented only with teamwork.
• (f) Complexity : A project is a complex set of activities relating to diverse areas. Technology
survey, choosing the appropriate technology, procuring the appropriate machinery and
equipment, hiring the right kind of people, arranging for financial resources, execution of the
project in time by proper scheduling of the different activities etc. contribute to the complexity of
the project.
• (g) Sub-contracting
• This characteristic stems forth in view of the complexity of functions and activities of a project.
Some of the activities are entrusted to sub-contractors to reduce the complexity of the project.
Sub- contracting will be advantageous if it reduces the complexity of the project so that the
project manager can co-ordinate the remaining activities of the project more effectively. In
general, the greater the complexity of the project, the larger will be the extent to which sub-
contracting will be resorted to. Sub-contracting is also helpful if the sub-contractors are
specialized in their field of activity since this will improve the quality of the project.
• (h) Risk and Uncertainty : Risk and uncertainty go hand in hand with project. A risk-free project cannot
be thought of. Even if a project appears to be risk free, it only means that the risk element is not
apparently visible on the surface and it will be hidden underneath.
• (i) Customer Specific Nature: A project is always customer specific. This is because the products
produced or services offered by the project are necessarily to be customer oriented. It is the customer
who decides upon the product to be produced or services to be offered and hence it is the responsibility
of any organization.
(j) Change: A project is not rigid in its life span. Changes occur throughout the life span of a project as
a natural outcome of many environmental factors. The changes may vary from minor changes which
may have very little impact on the project to major changes which may have a big impact or even may
change the very nature of the project.
• (k) Response to Environments: Projects take shape in response to environments. Indian Government
soon after independence set up major projects in the public sector, in the sectors of iron and steel, coal,
power generation, heavy equipment's manufacture etc. This was in tune with the then need for the
development of infrastructure and heavy industries.
• (l) Forecasting: Forecasting the demand for any product/service that the project is going to produce is
an important aspect. Only if the forecast gives positive indications, the project is taken up for further
study. Thus, all projects involve forecasts and in view of the importance attached to forecasts, they must
be accurate and based on sound fundamentals.
• (m) Rational Choice: Since a project is a scheme for investing resources, the choice of a project is
done after making a study of all the available avenues for investing resources and a rational choice
among the available avenues is made.
 Characteristics of Project Management:
• Goal-Oriented: • Continuous Monitoring and Control:

• Structured Approach: • Team Leadership:

• Integration of Processes: • Quality Assurance:

• Lifecycle Phases:
• Adaptability and Iteration:

• Stakeholder Management:
• Risk Management:

• Project Documentation:
• Knowledge Transfer:
 Characteristics of Project Management
⚫ Objectives oriented: Project management is focused on achieving specific project

⚫
objectives with customer satisfaction. It is results-oriented.
Change oriented: Project management is a vehicle for planning and managing change

⚫
in an organized manner. It adopts flexibility in doing things in a risky environment.
Single Responsibility Centre: The project manager is the single responsibility centre
accountable for project outcomes. The role of project manager is crucial from inception
to completion of the project. He is a project leader and champion. He motivates team

⚫
members to excel.
Team-based: Project management consists of a multi-disciplinary project team with a
wide range of skill and experiences. The team has project dedication. Each member has
responsibility and accountability for a unit of work. Self-management is emphasized. So
is member participation. The team membership is flexible and changes with project

⚫
needs.
Functional Coordination: Project management requires coordination along functional
lines. The work flow is both vertical and horizontal in a matrix organization structure.
 Characteristics of Project Management
⚫ Constraints: Project management achieves results within the constraints of
time, cost and quality. It is a time and resources limited activity. It is focused
on customer needs.
⚫ Body of Knowledge: Project management consists of a body of
knowledge like;
⚫
⚫
Scope Management

⚫
Time Management

⚫
Change Management

⚫
Integration Management

⚫
Cost Management

⚫
Quality Management

⚫
Human Resource Management

⚫
Conflict Management

⚫
Risk Management
Procurement Management
Project Lifecycle
 The Project life cycles and its phases with example
• 1.Initiation Phase:
• Objective: Define the project, its purpose, and the initial scope.
• Activities:
• Develop a project charter.
• Identify stakeholders.
• Define high-level project requirements.
• Key Deliverables:
– Project charter.
– Stakeholder list.
– High-level project requirements.
• Example: Initiating a project to develop a new software application for a client. During this
phase, the project team creates a project charter, identifies key stakeholders, and outlines
the initial scope and goals of the software development project.
 The Project life cycles and its phases with example
• 2.Planning Phase:
• Objective: Develop a detailed project plan outlining tasks, schedules, resources, and budgets.
• Activities:
• Create a project management plan.
• Develop a project schedule.
• Define project roles and responsibilities.
• Key Deliverables:
– Project management plan.
– Project schedule.
– Resource plan.
– Risk management plan.
• Example: In the planning phase of a construction project, the project team creates a
comprehensive plan that includes a timeline, budget, resource allocation, risk management
strategies, and other details necessary for successful project execution.
During the planning process, the following documents are created:

⚫ Statement of Purpose
⚫ Structure of work breakdown (WBS)
⚫ Plan your project
⚫ Project timetable
⚫ Management of change requests
⚫ Plan for communication
⚫ Plan for project quality
⚫ Acceptance strategy
 The Project life cycles and its phases with example
• 3.Execution Phase:
• Objective: Implement the project plan and carry out the defined activities.
• Activities:
• Mobilize resources.
• Execute project tasks.
• Monitor and control project execution.
• Key Deliverables:
– Completed project work packages.
– Implemented project processes.
• Example: In the execution phase of a marketing campaign, the project team implements the
marketing strategy outlined in the project plan. This may involve creating and distributing
promotional materials, running advertisements, and engaging with the target audience.
 The Project life cycles and its phases with example
• 4.Monitoring and Controlling Phase:
• Objective: Track, review, and regulate project performance and progress.
• Activities:
• Monitor project tasks and milestones.
• Evaluate key performance indicators (KPIs).
• Implement corrective actions as needed.
• Key Deliverables:
– Progress reports.
– Issue log.
– Corrective action plans.
• Example: In a product development project, the monitoring and controlling phase involves
tracking the progress of product development, ensuring that it aligns with the project
schedule, and making adjustments if there are deviations from the plan.
 The Project life cycles and its phases with example
• 5.Closing Phase:
• Objective: Formalize project completion, deliver the final product, and transition to the
next steps.
• Activities:
• Complete remaining deliverables.
• Obtain customer or stakeholder acceptance.
• Close contracts and release resources.
• Key Deliverables:
– Final project deliverables.
– Lessons learned document.
– Project closure report.
• Example: Closing a construction project involves handing over the completed building to the client,
conducting a final inspection, obtaining client approval, and closing out contracts with suppliers and
contractors.
 Project success criteria
1.Achievement of Project Objectives:
Description: The project successfully meets its defined objectives
and goals as outlined in the project charter or scope statement.
Example: A software development project is considered successful if
it delivers the specified features and functionalities within the agreed-
upon timeline and budget.
2.Customer Satisfaction:
Description: Stakeholders, including customers and end-users,
express satisfaction with the final deliverables and the overall project
experience.
Example: In a construction project, customer satisfaction is
measured by the client's approval of the completed building, meeting
their quality expectations, and addressing any concerns.
 Project success criteria
3.On-Time Completion:
Description: The project is completed within the planned or agreed-
upon timeframe, meeting deadlines and milestones.
Example: A marketing campaign is deemed successful if it is
launched according to the scheduled timeline, allowing for timely
promotion and engagement.

4.Within Budget:
Description: The project is completed without exceeding the
allocated budget, and financial resources are effectively managed.
Example: A manufacturing project is considered successful if the
production is completed within the budget constraints, preventing cost
overruns.
 Project success criteria
5.Quality of Deliverables:
Description: The final deliverables meet or exceed predefined quality
standards, ensuring they function as intended and satisfy stakeholder
requirements.
Example: In a product development project, success is determined
by the quality of the manufactured product, meeting design
specifications and passing quality assurance tests.

6.Adherence to Scope:
Description: The project is completed within the defined scope, and
any changes or additions are properly documented and approved.
Example: A research project is successful if it produces the expected
results within the defined scope and does not deviate from its original
objectives.
 Project success criteria
7.Effective Communication:
Description: Project communication is clear, timely, and efficient,
ensuring that stakeholders are well-informed throughout the project
lifecycle.
Example: A community engagement project is successful if
stakeholders are regularly updated on project progress, and their
feedback is actively sought and considered.
8.Risk Management:
Description: Risks are identified, assessed, and effectively managed
throughout the project, preventing major disruptions and ensuring
resilience.
Example: In an IT project, success is measured by the project team's
ability to proactively address and mitigate potential cybersecurity risks.
 Project success criteria
9.Team Collaboration:
Description: The project team collaborates effectively, demonstrating good
teamwork, communication, and a shared commitment to project success.
Example: A team-building project is successful if team members work
cohesively, leveraging each other's strengths to achieve project goals.

10.Stakeholder Engagement:
Description: Stakeholders are actively engaged throughout the project,
providing input, support, and feedback as needed.
Example: A public infrastructure project is successful if it involves ongoing
collaboration with local communities, addressing concerns and incorporating
community input.
 Project success criteria
11.Knowledge Transfer:
Description: Project knowledge, including lessons learned and best practices, is
documented and transferred to relevant stakeholders for future reference.
Example: A research and development project is considered successful if findings and
insights gained during the project are documented and shared with relevant teams for
future projects.

12.Sustainability and Long-Term Impact:

Description: The project considers long-term sustainability, and its outcomes have a
positive and lasting impact on the organization or community.
Example: An environmental conservation project is successful if it contributes to the
long-term preservation of a natural habitat and demonstrates sustainable practices.
 Project success criteria
13.Regulatory Compliance:
Description: The project complies with relevant laws, regulations, and industry standards,
avoiding legal issues and ensuring ethical conduct.
Example: A pharmaceutical research project is considered successful if it adheres to
regulatory guidelines, ensuring the safety and legality of new drug developments.

14.Post-Implementation Evaluation:
Description: A post-implementation evaluation is conducted to assess the project's
impact and identify opportunities for improvement.
Example: An IT system implementation project is successful if a post-implementation
review identifies user satisfaction, system reliability, and areas for enhancement.
 Project success criteria
15.Flexibility and Adaptability:
Description: The project exhibits flexibility and adaptability
to changes in requirements, market conditions, or external
factors.

Example: A software development project is successful if it

accommodates changes in user requirements through iterative
development, demonstrating adaptability to evolving needs.
 The essential skills required for a project manager
• Leadership: Project managers need strong leadership skills to guide
and inspire their teams. Leadership involves setting a clear vision,
motivating team members, and making decisions that drive project
success.
• Communication: Clear and effective communication is crucial. Project
managers must convey expectations, goals, and changes to
stakeholders and team members. Active listening is also essential for
understanding and addressing concerns.
• Organization: Project managers must be highly organized to manage
project timelines, budgets, resources, and documentation. Strong
organizational skills contribute to efficient planning and execution.
 The essential skills required for a project manager
• Time Management: Time management is critical for meeting project
deadlines and milestones. Project managers need to prioritize tasks,
allocate resources effectively, and ensure that the project stays on
schedule.

• Problem Solving: Projects often encounter challenges and unexpected

issues. Project managers must be adept at problem-solving, finding
creative solutions, and making decisions to keep the project on track.

• Risk Management: Identifying, assessing, and mitigating risks is a key

skill. Project managers need to anticipate potential issues, develop risk
management strategies, and respond effectively to minimize the impact
of uncertainties.
 The essential skills required for a project manager
• Negotiation: Negotiation skills are valuable in dealing with stakeholders,
team members, and vendors. Project managers may need to negotiate
resources, timelines, or scope changes to ensure project success.

• Adaptability: Projects can be dynamic, and conditions may change.

Project managers must be adaptable, open to adjustments, and able to
lead their teams through changes in project requirements or
circumstances.

• Stakeholder Management: Building and managing relationships with

stakeholders is essential. Project managers must understand
stakeholder needs, communicate effectively, and address concerns to
maintain stakeholder support.
 The essential skills required for a project manager
• Team Building: Creating a cohesive and motivated project team is
crucial for success. Project managers need to foster collaboration,
resolve conflicts, and recognize and utilize the strengths of team
members.

• Budgeting and Financial Management: Project managers should

have financial acumen to create and manage project budgets
effectively. This includes tracking expenses, managing resources
efficiently, and ensuring financial accountability.

• Quality Management: Ensuring the quality of project deliverables is a

key responsibility. Project managers need to establish and maintain
quality standards, conduct reviews, and ensure that project outcomes
meet expectations.
 The essential skills required for a project manager
• Emotional Intelligence: Emotional intelligence involves understanding
and managing one's emotions and the emotions of others. It is valuable
for effective communication, conflict resolution, and building positive
relationships within the team.

• Contract Management: Knowledge of contract management is

essential for projects involving external vendors or contractors. Project
managers should understand contract terms, negotiations, and vendor
relationships.

• Strategic Thinking: Project managers need to align project goals with

the overall strategic objectives of the organization. Strategic thinking
involves considering the long-term impact and value of the project.
 The essential skills required for a project manager
• Crisis Management: Being able to handle crises and emergencies is
crucial. Project managers should remain calm under pressure, assess
situations quickly, and implement effective crisis management
strategies.

• Collaboration: Collaboration involves working effectively with diverse

teams and stakeholders. Project managers need to foster a
collaborative environment to leverage the collective expertise of the
team.

• Technical Competence: While not always required, depending on the

industry, having a foundational understanding of the technical aspects
of the project can enhance a project manager's ability to communicate
 The essential skills required for a project manager
• Conflict Resolution: Conflicts may arise within the team or with
stakeholders. Project managers should be skilled in resolving
conflicts through effective communication, negotiation, and finding
mutually beneficial solutions.

• Continuous Learning: Project management is a dynamic field.

Successful project managers embrace continuous learning, staying
updated on industry trends, emerging technologies, and best
practices to improve their skills and adapt to changing circumstances.
 The taxonomy or classification or categorization of
projects
• Industry or Sector:
– Description: Projects can be categorized based on the industry or sector they
belong to, such as construction, information technology, healthcare, education,
finance, and more.
– Example: A construction project, an IT project, or a healthcare infrastructure
project.

• Project Size and Complexity:

– Description: Projects can be classified based on their size and complexity,
ranging from small, simple projects to large, complex endeavors.
– Example: A small-scale website development project versus a large-scale
enterprise resource planning (ERP) implementation.
 The taxonomy or classification or categorization of
projects
• Purpose or Objective:
– Description: Projects can be grouped according to their primary purpose or
objective, such as product development, research and development, process
improvement, or marketing campaigns.
– Example: A new product launch project, a research project, or a process
optimization project.

• Duration:
– Description: Projects can be classified based on their duration, distinguishing
short-term projects from long-term initiatives.
– Example: A one-month event planning project versus a two-year infrastructure
development project.
 The taxonomy or classification or categorization of
projects
• Technology Used:
– Description: Projects can be categorized based on the technologies or tools
used in their execution, such as software development, hardware
implementation, or automation projects.
– Example: An artificial intelligence (AI) implementation project, a software
upgrade project, or a network infrastructure project.

• Geographical Location:
– Description: Projects can be classified based on their geographical scope,
including local, regional, national, or international projects.
– Example: A local community development project, a regional transportation
project, or an international collaboration on scientific research.
 The taxonomy or classification or categorization of
projects
• Customer Type:
– Description: Projects can be classified based on the type of customer or end-
user, such as government projects, business-to-business (B2B) projects, or
consumer-oriented projects.
– Example: A government infrastructure project, a corporate IT project, or a
consumer product development project.

• Lifecycle Stage:
– Description: Projects can be classified based on their stage in the project life
cycle, such as initiation, planning, execution, monitoring, or closing.
– Example: An ongoing execution phase of a software development project or the
closing phase of a construction project.
 The taxonomy or classification or categorization of
projects
• Risk Level:
– Description: Projects can be categorized based on their perceived risk levels,
distinguishing low-risk projects from high-risk ones.
– Example: A routine maintenance project with low risks versus a pioneering
research project with high uncertainties.

• Regulatory Compliance:
– Description: Projects can be classified based on the level of regulatory
compliance required, distinguishing projects with strict regulatory requirements
from those with fewer restrictions.
– Example: A healthcare project with compliance to health regulations versus a
marketing campaign with fewer regulatory constraints.
 The taxonomy or classification or categorization of
projects
• Strategic Alignment:
– Description: Projects can be classified based on their alignment with the strategic goals and
objectives of the organization.
– Example: A project aligned with the organization's growth strategy versus a project focused on
cost reduction.
• Customer Relationship:
– Description: Projects can be categorized based on the nature of the customer relationship,
distinguishing between internal projects serving the organization itself and external projects
serving external clients.
– Example: An internal process improvement project versus a consulting project for an external
client.
– These are just a few examples of how projects can be classified using a taxonomy. The chosen
taxonomy depends on the specific needs and objectives of the organization or the project
management team. It provides a framework for understanding and managing diverse projects
within a systematic structure.