Part-One

UNIT I: Understanding the Essence

of Project and Project Management
Concepts of project and project management
Project Vs Program Vs Operations
Examining key roles in Project Management
Identifying the essentials for success of

projects
Skills in Project management
Project in the organizational Structure
5/17/16

What is a Project?

A project is a one-time, multitask job

with a definite starting point, definite
ending point, a clearly defined scope
of work, a budget, and usually a
temporary team.

A project is a problem scheduled for

solution. - J. M. Juran
5/17/16

All of these events represent projects.

5/17/16

Contd...

A project is defined as A unique set

of
co-ordinated
activities,
with
definite starting and finishing points,
undertaken by an individual or
organization
to
meet
specific
objectives within defined schedule,
cost and performance parameters.

5/17/16

Contd...

It is A temporary endeavor undertaken to

create a unique product or service
(Project Management Institute, 2004, p.
5).

Projects are temporary in nature and have

definitive start dates and definitive end
dates. The project is completed when its
goals and objectives are accomplished to
the satisfaction of the stakeholders.
5/17/16

Contd...

Sometimes projects end when its

determined that the goals and
objectives cannot be accomplished
or when the product, service, or
result of the project is no longer
needed and the project is cancelled.
Projects exist to bring about a
product, service, or result that didnt
exist before.
5/17/16

Contd...
A

project is defined as a sequence of

unique, complex, and connected
activities having one goal or purpose
and that must be completed by a
specific time, within budget, and
according to specification.

project is a proposal consisting of

collection of activities performed to
achieve a specific purpose so as to
get benefits that exceed costs.
5/17/16

Important Characteristics of a
Project
1.

2.
3.

4.
5.
6.
7.
8.

Projects
are
unique:Accomplishment
of
specific
purpose/Specific Deliverable, Typically, doing something
that has never been done before.
Projects are temporary in nature and have a definite
beginning and ending date.
Projects are completed when the project goals are
achieved or its determined the project is no longer
viable.
A successful project is one that meets or exceeds the
expectations of your stakeholders.
Team work: the involvement of several departments and
professionals; it is multidisciplinary.
Associated with risk and uncertainty
Needs capital and commitment of other resources
Has Specific time, cost, and performance requirements.
5/17/16

What is not a project?

Projects should not be confused with

everyday work. A project is not
routine, repetitive work!
Ordinary
daily
work
typically
requires doing the same or similar
work over and over, while a project
is done only once; a new product or
service exists when the project is
completed.
5/17/16

Comparison of Routine Work with

Projects
Routine, Repetitive
Work

Projects

Taking class notes

Daily entering sales receipts
into the accounting ledger
Responding to a supply-chain
request

Writing a term paper

Setting up a sales kiosk for a
professional accounting meeting
Developing
a
supply-chain
information system
Writing a new piano piece
Practicing scales on the piano
Designing an iPod that is
Routine manufacture of an approximately 2 X 4 inches,
Apple iPod
interfaces with PC, and stores
10,000 songs
Wire-tag projects for GE and
Attaching
tags
on
a Wal-Mart
manufactured product
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10

Program versus Project

In practice the terms project and program

cause confusion. They are often used
synonymously.

A program is a group of related projects designed to

accomplish a common goal over an extended period
of time.
Each project within a program has a project manager.
The major differences lie in scale and time span.

Program management is the process of managing a

group of ongoing, interdependent, related projects in
a coordinated way to achieve strategic objectives.
5/17/16

11

Contd...

PMI BoK (2008) define A Program

as A group of related projects
managed in a coordinated way to
obtain benefits and control not
available
from
managing
them
individually. Programmes may include
elements of related work outside the
scope of the discrete projects in a
programme.
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12

Contd...

Managing Successful Programmes

(2007) define A Programme as A
temporary flexible organisation created to
coordinate, direct and oversee the
implementation of a set of related
projects and activities in order to deliver
outcomes and benefits related to the
organisations strategic objectives. A
programme is likely to have a life that
spans several years.
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13

Portfolios Vs
Programmes

Portfolios are collections of programs

and projects that support a specific
business goal or objective. Lets say our
company is in the construction business.
Our organization has several business
units: retail, single-family residential,
and multifamily residential. Collectively,
the projects within all of these business
units make up the portfolio.
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14

Contd...

Programs and projects within a portfolio

are not necessarily related to one
another in a direct way.
However, the overall objective of any
program or project in this portfolio is to
meet the strategic objectives of the
portfolio, which in turn should meet the
objectives of the department and
ultimately
the
business
unit
or
corporation.
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15

Note:
Programs are collections of related
projects.
Portfolios
consist
of
programs,
projects,
and
other
portfolios that meet a business
objective. Projects or programs within
a portfolio are not necessarily related
or dependent on each other.

5/17/16

16

Types of Projects

The
principal
identifying
characteristic of a project is its
novelty. It is a step into the unknown,
fraught with risk and uncertainty.
No two projects are ever exactly
alike: even a repeated project will
differ from its predecessor in one or
more commercial, administrative or
physical aspects.
5/17/16

17

5/17/16

18

Contd...

Type
1
projects:
civil
engineering,
construction, petrochemical, mining :
These projects incur special risks and
problems of organization. They may require
massive capital investment, and they deserve
(but do not always get) rigorous management
of progress, finance and quality. Operations
are often hazardous so that health and safety
aspects demand special attention, particularly
in heavy work such as construction,
tunnelling and mining.
5/17/16

19

Contd...

Type 2 projects: manufacturing:

Manufacturing projects result in the production

of a piece of mechanical or electronic equipment,
a machine, ship, aircraft, land vehicle, or some
other product or item of specially designed
hardware.

The finished product might be purpose-built for a

single customer but internal research and
development projects for products to be sold in
all market sectors also fall into this
manufacturing category.
5/17/16

20

Type 3 projects: IT projects and projects

associated with management change:

This class of project proves the point that every

company, whatever its size, can expect to need project
management expertise at least once in its lifetime.
These are the projects that arise when companies
relocate their headquarters, develop and introduce a
new computer system, launch a marketing campaign,
prepare for a trade exhibition, produce a feasibility or
other study report, restructure the organization,
mount a stage show, or generally engage in any
operation that involves the management and
coordination of activities to produce an end result that
is not identifiable principally as an item of hardware
or construction.
5/17/16

21

Type 4 projects: projects for pure scientific research:

Pure scientific research projects (not to be confused with

research and development projects) are truly a special case.
They occasionally result in dramatically profitable
discoveries.
On the other hand, they can consume vast amounts of
money over many years, yet yield no practical or economic
result. Research projects carry the highest risk because they
attempt to extend the boundaries of current human
knowledge.
The project objectives are usually difficult or impossible to
define and there may be no awareness of the possible
outcome. Therefore, pure research projects are not usually
amenable to the project management methods that can be
applied to industrial, manufacturing or management
projects.
5/17/16

22

What is Project
Management?

An official definition of project management,

courtesy of the Project Management Institute,
defines the term as: the application of

knowledge, skills, tools and techniques

to project activities to meet project
requirements.

Project management is the discipline of

planning, organizing and managing resources
to bring about the successful completion of
specific project goals.
5/17/16

23

Contd...

The
PMBOK
definition
of
project
management is application of knowledge,
skills, tools and techniques to project
activities to achieve project requirements.
Project management is accomplished
through the application and integration of
the project management processes of
initiating, planning, executing, monitoring
and controlling, and closing (PMBOK
2004, p. 8).
5/17/16

24

Contd...

Project management is a set of

principles, methods, and techniques
that people use to effectively plan
and
control
project
work.
It
establishes a sound basis for
effective
planning,
scheduling,
resourcing,
decision-making,
controlling, and re-planning.
5/17/16

25

Contd...

Project
management
principles
and
techniques help complete projects on
schedule, within budget, and in full
accordance with project specifications. At
the same time, they help achieve the
other goals of the organization, such as
productivity,
quality,
and
cost
effectiveness.
The objective of project management is to
optimize project cost, time, and quality.
5/17/16

26

Contd...

The application of modern management

techniques and systems to the execution of a
project from start to finish, to achieve
predetermined objectives of scope, quality,
time and cost, to the equal satisfaction of
those involved.

Essentially, project management is a set of

skills and tools that will help you get the
project right in every way.
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27

The Balance Quadrant

5/17/16

28

Thus, project management is:

1. Is a discipline that applies knowledge, skills,
principles, methods, techniques
2. In project management processes of
initiating, planning, executing, organizing,
controlling, closing
3. Project activities,
4. To achieve project
requirements/specfications in time, cost,
quality to the best satisfaction of those
involved.
5/17/16

29

Benefits of Project Management

Clear Objective
Risk Assessment
To identify Milestones
Resource Allocation
Task Dependencies
Communication
Avoid Scope Creep
Client Appreciation

Your team will know whats going on and

what is expected of them. With clear
objectives, scheduled milestones and a
detailed task list , there should be no
confusion about who is to do what.
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30

Skills Every Good Project Manager Needs

Project managers accomplish work

through the project team and other
stakeholders.

Effective project managers require a

balance of ethical, interpersonal, and
conceptual skills that help them
analyze
situations
and
interact
appropriately.
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31

Questions

To what extent does the task of organization call

for close control if it is to be performed
efficiently?
What are the needs and attitudes of the people
performing the tasks?
What are the likely effects of control mechanisms
on their motivation and performance?
What are the natural social groupings with which
people identify themselves?
To what extent are satisfying social relationships
important in relation to motivation and
performance?
5/17/16

32

Contd

What aspect of the organizations

activities needs to be closely
integrated if the overall task is to be
achieved?
What organizational measures can
be developed that will provide an
appropriate measure of control and
integration of work activities, while
at the same time meeting the needs
of people and providing
adequate
5/17/16

33

Contd.

What environmental changes are

likely to affect the future trend of
company
operations?
What
organizational measures can be
taken to insure that the enterprise
responds to these effectively?

5/17/16

34

Organizational
Workflow

Authority: The power granted to individuals

so that they can make the final decision
Responsibility: The obligation incurred by
individuals in their roles in the formal
organization
to
effectively
perform
assignments
Accountability: being answerable for the
satisfactory
completion
of
a
specific
assignment.
Accountability=Authority + Responsibility

5/17/16

35

Developing
Work
Integration
Positions
Which Structure Is Best For Project
Management?

5/17/16

36

The Classical Management

Structure
General
Manager

Director Level

Engineering

Production

Sales

Marketing

AdminisAdmin.
tration

Division
Level
Department
Level
Section Level

Functional Responsibility
5/17/16

37

Departmental Project
Management
Division Manager

Department X

Project Leaders

Section Level

Department Z

Department Y

Project Leaders

Section Level

Project Leaders

Section Level
5/17/16

38

Line-Staff Organization -Project

Coordinator

LEGEND

DIVISION MGR.

FORMAL FLOW
PROJECT MGR.
INFORMAL FLOW

DEPT. MANAGER

DEPT. MANAGER

5/17/16

39

Weaknesses of Project
Coordinator

Upper-level management was not ready to

cope with the problems arising from shared
authority.
Upper-level management was reluctant to
relinquish any of its power and authority to
project managers.
Line-staff project managers who reported to
a division head did not have any authority or
control over those portions of a project in
other divisions; that is, the project manager
in the engineering division could not direct
activities in the manufacturing division.
5/17/16

40

Pure Project Structure

General Manager

Project B
Manager

Project A
Manager

ENG.

MFG.

ENG.

MFG.

Project C
Manager

ENG.

5/17/16

MFG.

41

Advantages

It provides complete line authority over

the project (i.e., strong control through
a single project authority).
The project participants work directly
for the project manager.
Unprofitable product lines are easily
identified and can be eliminated.
There are
strong communications
channels.
Staffs can maintain expertise on a given
project without sharing key personnel.
Very rapid reaction time is provided.
5/17/16

42

Contd

Personnel demonstrate loyalty to the project;

better morale with product identification.
A focal point develops for out-of-company
customer relations.
There is flexibility in determining time
(schedule), cost, and performance trade-offs.
Interface management becomes easier as
unit size is decreased.
Upper-level management maintains more
free time for executive decision making.

5/17/16

43

Disadvantages

Cost of maintaining this form in a

multi-product company would be
prohibitive due to duplication of
effort, facilities, and personnel;
inefficient usage.
There exists a tendency to retain
personnel on a project long after
they are needed.
Upper-level
management
must
balance
workloads as projects 5/17/16
start up and

44

Contd

Technology suffers because, without

strong functional groups, outlook of the
future to improve companys
capabilities for new programs would be
hampered (i.e., no perpetuation of
technology).
Control of functional (i.e.,
organizational) specialists requires toplevel coordination.
There is a lack of opportunities for
technical interchange between
5/17/16

45

Matrix Organization

Participants must spend full time on

the project; this ensures a degree of
loyalty.
Horizontal as well as vertical
channels must exist for making
commitments.
There must be quick and effective
methods for conflict resolution.
There must be good communication
channels and free access between
managers.
5/17/16

46/48

Contd.

All managers must have input into

the planning process.
Both horizontally and vertically
oriented managers must be willing to
negotiate for resources.
The
horizontal
line
must
be
permitted to operate as a separate
entity except for administrative
purposes.
5/17/16

47/48

The Matrix Management

Structure
General
Manager

Project Mgr.
X
Project Mgr.
Y
Project Mgr.
Z

Functional Responsibility

Engineering

Operations

Finance

Others

Project Responsibility

5/17/16

48

Advantages

The project manager maintains

maximum project control (through
the
line
managers)
over
all
resources,
including
cost
and
personnel.
Policies and procedures can be set
up independently for each project,
provided that they do not contradict
company policies and procedures.
5/17/16

49

Contd

The project manager has the

authority
to
commit
company
resources, provided that scheduling
does not cause conflicts with other
projects.
Rapid responses are possible to
change, conflict resolution, and
project needs.
The functional organization exists
primarily as support for5/17/16
the project.

50

Contd

Each person has a home after

project completion. People are
susceptible to motivation and enditem identification. Each person can
be shown a career path.
Because key people can be shared,
the program cost is minimized.
People can work on a variety of
problems: that is, better people
control is possible.
5/17/16

51

Contd

A strong technical base can be developed,

and much more time can be devoted to
complex problem-solving. Knowledge is
available for all projects on an equal basis.
Conflicts are minimal, and those requiring
hierarchical referral are more easily
resolved.
There is a better balance between time,
cost and performance.
5/17/16

52

Contd

Rapid development of specialists

and generalists occurs.
Authority and responsibility are
shared.
Stress is distributed among the
team (and the functional
managers).
5/17/16

53

Disadvantages

Multidimensional information flow.

Multidimensional work flow.
Dual reporting.
Continuously changing priorities.
Management goals different from
project goals.
Potential for continuous conflict
and conflict resolution.
Difficulty in monitoring and
control.
5/17/16

54

Contd

Company-wide,
the
organizational
structure is not cost-effective because
more people than necessary are
required, especially administrative.
Each project organization operates
independently. Care must be taken that
duplication of efforts does not occur.
More effort and time are needed
initially
to
define
policies
and
procedures, compared to the traditional
organizational form.
5/17/16

55

Contd

Functional managers may be biased

according to their own set of priorities.
The balance of power between the
project and functional organizations
must be watched.
The balance of time, cost and
performance must be monitored.
Although rapid response time is possible
for individual problem resolution, the
reaction time can become quite slow.
5/17/16

56

Contd

Employees and managers are more

susceptible to role ambiguity than in
the traditional organizational form.
Conflicts and their resolution may be a
continuous process (possibly requiring
support of an organizational specialist).
People do not feel they have any
control over their own destiny when
continuously reporting to multiple
managers.
5/17/16

57

Modification of the Matrix Structure (With a Director of Project

Management)

General Manager

Director:
Project Mgmt.

Director:
Engineering

Director:
Manufacturing

Director:
Finance/Admin.

Project Mgr. X
Project Mgr. Y
Project Mgr. Z
5/17/16

58

Project Structure

pe of project
ructure

Departme Pure Project Structure

ntal
Project
Managem
ent

Matrix structure

dvantages

Cost
Has complete line
advanta authority
ges
Good for
performance
evaluation
Strong
communication
Timely decisions
will be made

Good level of
control over
resources for
projects
Sharing of
resources is
possible
Less conflicts

isadvantag
s

Authori
ty is
restrict
ed

Cost ( presence of Multidimension

duplication of
al work and
work)
information
Lack of carrier
flow

Modification
of the Matrix
Structure
(With a
Director of
Project
Manageme
nt)

Factors For Selecting An

Organizational Form

Project size
Project length
Project management experience
Philosophy and visibility of
executives
Project location
Available resources
Unique aspects of the project
5/17/16

60

Understanding Project Life Cycles and Project

From
initiation/authorization
to
completion /closure, a project goes
through a whole lifecycle that includes
defining
the
project
objectives,
planning the work to achieve those
objectives, performing the work,
monitoring
and
controlling
the
progress, and closing the project after
receiving the product acceptance.
5/17/16

61

Contd...

5/17/16

62

Contd....

5/17/16

63

Initiating

This stage defines and authorizes the project.

The project manager is named, and the project is
officially launched through a signed document called the
project charter, which contains items such as:
the purpose of the project,
a high-level product description,
a summary of the milestone schedule, and
a business case for the project.

Another outcome of this stage is a document called the

stakeholder register, which identifies the project
stakeholders and important information about them. The
processes used to perform this stage fall into a group
called the initiating process group.
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64

Planning
In this stage, you, the project manager, along with the project
management team,

The project management plan, the outcome of this stage,

contains subsidiary plans, such as:

refine the project objectives and requirements and

develop the project management plan, which is a collection of several plans
that constitute a course of actions required to achieve the objectives and meet
the requirements of the project.
The project scope is finalized with the project scope statement.

a project scope management plan,

a schedule management plan, and
a quality management plan.

The processes used to perform this stage fall into a group

called the planning process group.
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65

Executing

In this stage, you, the project manager, implement the project

management plan, and the project team performs the work
scheduled in the planning stage.

You coordinate all the activities being performed to achieve the

project objectives and meet the project requirements.
Of course, the main output of this project is the project deliverables.
Approved changes, recommendations, and defect repairs are also
implemented in this stage.
But where do these changes and recommendations come from? They
arise from monitoring and controlling the project.

The stakeholders can also suggest changes, which must go through

an approval process before implementation. The project execution is
performed using the processes that fall into a group called the
executing process group.
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66

Monitoring and
controlling

You monitor and control the project through its lifecycle, including the
executing stage.
Monitoring and controlling includes defending the project

against scope creep (unapproved changes to the project

scope), monitoring the project progress and performance
to identify variance from the plan, and recommending
preventive and corrective actions to bring the project in
line with the planned expectations in the approved project
management plan.

Requests for changes, such as change to the project scope, are also
included in this stage; they can come from you or from any other project
stakeholder. The changes must go through an approval process, and only
the approved changes are implemented. The processes used in this stage
fall into a group called the monitoring and controlling process group.

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67

Closing

In this stage, you manage the formal acceptance of the

project product, close any contracts involved, and bring
the project to an end by disbanding the project team.

Closing the project includes conducting a project review

for lessons learned and possibly turning over the outcome
of the project to another group, such as the maintenance
or operations group.

Dont forget the last, but not the least, task of the closing
stage: celebration. Terminated projects (that is, projects
cancelled before completion) should also go through the
closing stage. The processes used to perform the closing
stage fall into the group called the closing process group.
5/17/16

68

Project Life Cycle Phases

Initiating

Planning

Executing

Monitoring Closing
and
Controlling

Project
definition
Project
authorization
Project
manger
appointment
Project
charter
Stakeholder
register

Refine
objectives and
requirements
developing
project
management
plan.
Deciding
course of
actions to
realize
objectives and
requirements
Project
management
Plan include
subsidiary plans
like Scope plan
Schedule plan
Requirement
plan

Implement
the plan
Coordinatio
n different
activities
deliverable
s

Defending
the project
scope
Checking
for progress
Identify the
variance
with the
plan

5/17/16

Getting
acceptance
Project
review for
lessons to
be learned
Celebration

69

Project Management Vs General

Management

Fig
below
shows
a
conventional
management hierarchy with the lines on
the diagram representing lines of reporting
or responsibility. At the head of each of the
major functions within an organisation
there will be functional or line managers.

These managers have the responsibility

for the people who work under them in
Their departments.
5/17/16

70

Contd...

The project manager may have a line

management role as well, but is
responsible for projects that may run
across several functions.

The figure shows the project manager

being responsible for people drawn
from every function in their activities
in relation to that project.
5/17/16

71

Project organizational Structure

PM

5/17/16

72

Contd...

GENERAL
MANAGEMENT

Responsible for managing the

status quo
Authority defined by
management structure
Consistent set of tasks
Responsibility limited to their
own function
works in 'permanent'
organisational structures
Tasks described as
'maintenance
Main task is optimisation
Success determined by
achievement of interim targets
Limited set of variables

PROJECT MANAGEMENT

Responsible for overseeing change

Lines of authority 'fuzzy
Ever-changing set of tasks
Responsibility for cross-functional
activities
Operates within structures which
exist for the life of the project
predominantly concerned with
innovation
Main task is the resolution of
conflict
Success determined by
achievement of stated end-goals
Contains intrinsic uncertainties
5/17/16

73

Reading Assignment

Growth and Development of PM

Ad Vs Disadv of Project Structures

5/17/16

74

E........N.........D

?????
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75