Project Management

A Managerial Approach (7
th
Edition)

by


J ack R. Meredith & Samuel J . Mantel, J r.






Available at: Stationary shop at XC block Bahria University,
MR OLD BOOKS shops in Islamabad and
Bahria University Library.

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Project Management

Zahid Majeed
Assistant Professor
Bahria University
zahidpn@gmail.com
Ph # Ext 310 cell 03005365495


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Chapter 1


Introduction
The World of Projects
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Lecture Plan
The structure of this text book
What is a Project?
Introduction
Why Project Mgmt?
Growth of Project Mgmt
Project Management in Pakistan
PMP Certification
Assignment -1
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The Structure of this Text
Follows the project life cycle
Some topics stand-alone
Other topics incorporated throughout
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Part I: Project Initiation
Introduction, The World of Projects
Selecting Projects Strategically
The Project Manager
Negotiation and the Management of Conflict
The Project in the Organizational Structure
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Part II: Project Planning
Project Activity Planning
Budgeting and Cost Estimation
Scheduling
Resource Allocation
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Part III: Project Execution
Monitoring and Information Systems
Project Control
Project Auditing
Project Termination
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WHAT IS A PROJECT?
A project is a problem scheduled for
solution. J M Juran
Problem - The gap b/w where you are &
where u want to be, with an obstacle that
prevents easy movement to close the gap.


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Additional Definitions
A project is a unique venture with a beginning
and an end, conducted by people to meet
established goals within parameters of cost,
schedule and quality/performance.
Buchanan & Boddy 92
Projects are goal-oriented, involve the
coordinated undertaking of interrelated
activities, are of finite duration, accomplished
within allocated budget and are unique to a
degree.

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Project vs. Process Work
Project
Take place outside the
process world
Unique and separate
from normal
organization work
Continually evolving

Process
Ongoing, day-to-day
activities
Use existing systems,
properties, and
capabilities
Typically repetitive
A project is a temporary endeavor undertaken to
create a unique product or service.
PMBoK 2000
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Elements of Projects
Complex, one-time processes
Limited by budget, schedule, and resources
Developed to resolve a clear goal or set of
goals
Customer-focused
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Introduction
Much of project management developed by the military
Navys Polaris program
NASAs space program
Strategic defense initiative
Split the atom
Project management has found wide acceptance in
industry
Examples of projects
Channel between England and France
Introduce Windows Vista
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Introduction Continued
Main forces in driving the acceptance of
project and other forms of management:
1. The exponential growth of human knowledge
2. The growing demand for a broad range of
complex goods and services
3. Increased worldwide competition
All of these contribute to the need for
organizations to do more and to do it faster
Project management is one way to do more
faster
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Examples of Major Projects Undertaken or
Planned in Pakistan
Lahore Rapid Bus Transit project
Tarbela and Mangla dams
Kalabagh dam (?)
Indus River basin irrigation projects
Karakorum Highway
Islamabad Lahore Motorway
Jinnah International Airport at Karachi
Kot Addu power generation plant
Karachi Nuclear Power Plant
Karachi Steel Mill
Saindak copper mine
Port Qasim
Shah Faisal Mosque
Shaukat Khanum Cancer Hospital
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Common Examples of Major Projects
Energy On-and off-shore oil and gas refineries, mineral oil
storage containers, national and transnational oil and gas
pipelines, hydro-, thermal and nuclear power stations and
power transmission infrastructure.
Water Resources Irrigation projects, dams, flood protection
systems, desalination plants
Transport Infrastructure Road, rail and canal networks,
bridges, air-, river-and seaports
Public Works Sewage and sanitation, urban regeneration
schemes
Architecture High-rise office buildings and apartment
complexes, important public buildings

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Projects Tend to be Large
Projects tend to be large
The Channel Tunnel, or Chunnel
Denver International Airport (I n 2011 Denver I nternational
Airport - passenger traffic with 52,699,298 passengers.)
Panama Canal expansion project
Three Gorges Dam, China
Projects are getting larger over time
Flying: balloons planes jets rockets
reusable rockets
The more we can do, the more we try to do
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same power as FIFTEEN nuclear reactors
Project Management Also Getting Smaller
1. More people are seeing the advantages
of project management techniques
2. The tools are become cheaper
3. The techniques are becoming more
widely taught and written about
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Main Goals of Project Management
1. Time
2. Cost
3. Performance


Time, cost, and performance are all related on
a project
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Direct Project Goals: Performance, Cost, Time
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Project Management Institute (PMI)
The Project Management Institute (PMI)is the major
project management organization
Founded in 1969
Grew from 7,500 members in 1990 to over 260,000
in 2007
The Project Management Journal and PM Network
are the leading project management journals
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Project Manager
Project manager is the key individual on
a project
Project manager is like a mini-CEO
While project manager always has
responsibility, may not have necessary
authority
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Trends in Project Management
Achieving strategic goals
Achieving routine goals
Improving project effectiveness
Virtual projects
Quasi-projects
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The Definition of a Project
Modern project management began with the
Manhattan Project
In the early days, project management was used
mainly for very complex projects
As the tools became better understood, they began to
trickle down to smaller projects
It has also moved out of just manufacturing to
services
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Major Characteristics of a Project
Importance
Performance
Life cycle with a finite due date
Interdependencies
Uniqueness
Resources
Conflict
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Why Project Management?
The main purpose for initiating a project is to
accomplish some goal
Project management increases the likelihood of
accomplishing that goal
Project management gives us someone (the project
manager) to spearhead the project and to hold
accountable for its completion
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Negative Side to Project Management
Greater organizational complexity
Higher probability organizational policy will
be violated
Says managers cannot accomplish the desired
outcome
Conflict
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Project Life Cycles
Conceptualization - the development of the initial
goal and technical specifications.
Planning all detailed specifications, schedules,
schematics, and plans are developed
Execution the actual work of the project is
performed
Termination project is transferred to the customer,
resources reassigned, project is closed out.
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The Project Life Cycle
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Time Distribution of Project Effort
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Project Life Cycles
Man Hours
Conceptualization Planning Execution Termination
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Project Life Cycles and Their Effects
Conceptualization Planning Execution Termination
Uncertainty
Client Interest
Project Stake
Creativity
Resources
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Managerial Actions
in the Project Life-Cycle Phases
Conceptual Phase
Determine that a
project is needed
Establish goals
Estimate the
resources that the
organization is
willing to commit
Sell the
organization on the
need for a project
approach
Make key personnel
Appointments



Planning Phase
Define the project
organization
Define the project
targets
Prepare the schedule
for the execution
Phase
Define and allocate
tasks and resources
Build the project
team





Execution Phase
Perform the work of
the project (i.e.
design, construction,
production, Site
activation, testing,
delivery etc.)
Termination Phase
Assist in transfer of
Project product
Transfer human and
non-human resources
to other
organizations
Transfer or complete
Commitments
Terminate project
Reward personnel
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Another Possible Project Life Cycle
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Risk During at the Start of the Life Cycle
Risk During the Life Cycle
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PROJ MGMT IN PAKISTAN
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Proj Mgmt in Pakistan
Role of Planning Commission
Plans, Programmes and Projects
Types of Plans, Pgms and Proj
Idea generation and selection How and why
Projects Proposal, Formulation, Appraisal, and
Approval
Sanctioning / Approving Authorities
Implementation of Projects --- Use of computers
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PROJ MGMT- WAY FORWARD
Feasibility studies / Pilot Proj
Formulation
Appraisal
Approval
Implementation
Evaluation
Termination
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FEASIBILITY STUDIES / PILOT PROJECTS
Once the idea has been accepted and brainstormed at different
levels of the government, a feasibility or pre-feasibility study (A
formal survey to determine worthiness of the proposed project) is ordered
depending upon the size of the Plan or Programme to be
undertaken. The Feasibility Studies report back the following:
The size and nature of the demand
Available alternatives with costs
Availability of needed manpower
Costs estimates
Financial outlay with benefits
Major constraints (Technological / social / administrative)
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Based on the feasibility study, the Proj formulation
takes place by filling up PC-1. Here are certain
kinks which need to be taken into account. The PC-
1 is normally filled up very ambitiously by the
person / org who was not involved with the Proj or
the feasibility study. Devoid of requisite data and
keenness to undertake / initiate the Proj usually lays
the first brick of possible failure. Lack of data places
immense burden on the Proj Manager to unearth
relevant data and endeavor to prove to his bosses of
the correctness of the Proj.
PROJ FORMULATION
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PROJ APPRAISAL
It is a complex job to be done by professionals. The purpose of the
appraisal (PC-1) is to facilitate the decision regarding the approval of a
plan for implementation particularly the investment decisions. The
appraisal includes among others:
Necessary modifications to original ideas to make them look attractive to
foreign donors
Administrative, managerial and technical capability of the Org.
Proj costs (Capital, Operational, Maintenance, Recurring, Establishment
expenditures, etc)
Schedule of Work
Financial phasing
Review of the Proj for reasons of Objectives, Costs, and Time
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PROJECT APPROVAL
The most lethargic and at times most speedier
action consists of admin Approval and
Financial Approval. Most of the good Projects
never see the day light due absence of
financial approval. At times Projects are
started on the wrong demise that finances
would be made available in due course. In
fact, they never become available.
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IMPLEMENTATION
The Projects are implemented by a specially
selected team designated as Proj Team that
works under the guidance of Proj Mgr.
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A specially designated team chosen and
authorized by the higher organization usually
inspects and evaluates the Proj as per Proj
Appraisal criteria. This may happen on
completion or during different stages of the
Proj.
PROJECT EVALUATION
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