CHAPTER 1

INTRODUCTION

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1.1 Concept of project management
1.2 Project life cycle
1.3 Project environment
1.4 Project impacts: social, economical
and environmental
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PROJECT

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Project is a temporary endeavor undertaken to
create a unique product or service (Project
Management Institute of USA)
Project is a collection of linked activities carried
out in an organized manner with a clearly
defined start and finish point, to achieve specific
results . (Trevor L Young)

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WHAT IS PROJECT?

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A project is a special kind of activity.
It involves something that is both unique and
important and thereby requires unusual
attention.
It also has boundaries with other activities so
that its extent is defined.
And it has a beginning and an end and objectives
whose accomplishment signals the end.
A project is different general functions, such as
the accounting function, the manufacturing
function, the sales function, the personnel
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function, and so forth.
CHARACTERISTICS (GENERAL) OF PROJECT

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Specific Objectives
Time Frame (Starting and Terminating Date)

Temporary Organization/Team

Demanding Time Scale

Rapid expenditure

Involvement of number of Collaborating

Organizations and people
Uncertainties and Financial Risks

Benefits only after the operations of project

Sequence of activities and Phases

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MANAGEMENT

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In very simple terms Management is getting
things done by others effectively.
Basic Functon of Management

Planning (3/4/5/6 Ms)

Organizing (and Staffing)
Directing ( Leading )
( Coordinating)
Controlling ( Monitoring and
Controlling)
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PROJECT MANAGEMENT

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Planning What are we aiming for and why?
Organizing What is involved and why?

Directing Who decides what and when?

Control Who judges results and by what

standards
Motivation - What motivates people to do their
best work?

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 GENERAL MANAGEMENT VS PROJECT MANAGEMENT
General Management
Responsible for managing the
status quo (existing structure)
Authority defined by
management structure
Consistent set of tasks
Works in permanent
organizational structures
Tasks described as maintenance
Main task is optimization
Success determined by
achievement of interim targets
Limited set of variables
Project Management
Responsible for overseeing change
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(something new)
Lines of authority fuzzy
Responsible 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
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of stated end-goals
Contain intrinsic uncertainties
PROJECT MANAGEMENT

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Planning, Organizing, Directing and Controlling
of the resources to complete specific goals and
objectives (Harold Kerzner)
Art of directing and coordinating human and non
human resources throughout the life of the
project by using modern management techniques
to achieve pre determined objectives of scope,
cost, time, quality and participant satisfaction.
(Project Management Institute of USA)
Task of getting the project activities done in time
within budget and according to the specifications
by a project team in a dynamic environment.
(Govind Ram Agrawal) 8
PROJECT MANAGEMENT

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A new way of thinking about management
Manages a complexity and change in a dynamic
environment.
Systems of approach for efficient and effective
achievement of objectives
Assignment of project responsibility and
accountability to Project Manager
Coordination across functional lines
Proper utilization of planning and control tools for
better resource use within the constraint of time cost
and quality
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CHARACTERISTICS OF PROJECT MANAGEMENT

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Objectives-oriented
Change-oriented
Single Responsibility Centered
Team based
Functional Coordination
Planning and Control
Constraints

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CHARACTERISTICS OF PROJECT MANAGEMENT
CONTD..

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Body of Knowledge
Scope Management
Time Management

Change Management

Cost Management

Quality Management

Human Resource Management

Conflict Management

Risk Management

Procurement Management
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BENEFITS OF PROJECT MANAGEMENT

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Change Management
Environmental Adaptation
Results Orientation
Coordination
Team Development
Timely Correction
Customer Satisfaction

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LIMITATIONS OF PROJECT MANAGEMENT

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Lack of Long Range Planning
Organizational Disruption
Constrained Human Resource
Development
Reluctance for Authority Delegation
Organizational Restructuring
Team related Problems
Conflicts
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FUNCTIONAL AND MANAGERIAL GAP
Top level

Middle level

Operational
level
Department X Department Y Department Z
PROJECT MANAGER

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Project Manager
Focal person of the Project Management
Leadership of Project
Responsibility and accountability of the Project
Manages diverse Project stakeholders
Costumers
Contractors

Consultants

Suppliers

Labor Unions

Project Managers are generally highly paid

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SKILLS OF PROJECT MANAGER
Technical Skills

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Managerial Skills
Planning and Control
Organizational

Decision making

HR management

Leadership

Budgeting

Human Skills
Communication and motivation
Negotiation

Conflict Management

Stress Management

Conceptual Skills 16

Team Building Skills

ROLES AND RESPONSIBILITIES OF PROJECT MANAGER
Responsibilities (obligations of
Roles (behaviors )
duties)

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Leadership
Project Definition
Balancing
Project Team selection
Information
Stakeholders Management
Decision
Project Planning
Resource allocation
Project Organizational Design
Negotiation
Project Implementation
Disturbance Handling
Project Progress Control
Change Management
Financial Management

Change and Conflict

Management
Project Termination

Management 17
 PROJECT LIFE CYCLE

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Project has its beginning and ending points
Project has its own Phases

These Phases arranged in a sequence

Phases of Project is the life cycle of Project

Formulation phase Define the project

Planning phase Design the project process
Implementation phase Deliver the project (Do it)
Termination phase Develop the process
(Harvey Maylor)

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PHASES OF PROJECT LIFE CYCLE

Terminatio Formulatio
n Phase n Phase

Implementati Planning
on Phase Phase
 PROJECT FORMULATION PHASE

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Conception Phase
Identifies Project
Preliminary Planning

Basic Tasks are

Project Identification : ideas for project
Situation Survey (e.g. consumer survey)
Internal Sources (e.g. Mission or opportunities identified)

External Sources (e.g. Client Requirement)

Project Formulation : defines the parameter of identified Project

Statement of Work (Scope,objectives,role&responsibilites, schedule cost
etc.)
Project Proposal 20
PROJECT PLANNING PHASE
Basic Tasks
Feasibility Study

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Technical Analysis

Financial Analysis

Management Analysis

Marketing Analysis

Economic Analysis

Environmental Analysis

Appraisal
Evaluation of project
Ability to achieve objectives and compare with other projects
Project Approval
Detailed Design
Preparation of engineering design and specifications 21
(constructions, facilities, equipments, etc.)
Detail implementation plans and work schedules
IMPLEMENTATION PHASE

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Basic Tasks
Implementation (Actual work )
Tasks are allocated to team members

Decisions on Procurement ( Resources, services and equipment)

Setup of MIS (Project Management Information System)

Time Schedule is followed

Work starts

Projects Plans are followed and adjustment made as needed

Control (Supervision and control to feedback for correction)

Various techniques (e.g. Network Analysis such as CPM ,PERT
etc. ) used for control purpose
Continuous Monitoring of project performances
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TERMINATION PHASE

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Project is completed and handed over
Basic Tasks are:
Project Evaluation
Effects, impacts and performances of project
Feedback for the improvement of future projects

Project Handover
Handing over to the client or related organization
Operation Maintenance Manual distributed (if applicable)

Project organization is dismantled

Project reports finalized

Project accounts closed and Project is terminated

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PROJECT LIFE CYCLE

Formulation Planning Implementation

Termination
Resources
(Efforts)

Time
PROJECT ENVIRONMENT

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Project is Unique and is Environment Specific
Environment Consists of Forces influencing
Project ability to achieve its objective
Project should be resilient and adaptive to the
environmental changes
Influences Project through
Complexity
Uncertainty

Resources availability

Flexibility

Rapid Technological changes

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Project Environment can be classified
Internal Environment
Task Environment
External Environment

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INTERNAL ENVIRONMENT

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Located within the project
Controllable by the project

Internal Environment consists of:

Project Objectives
Project Constraints
Project Structure
Project resources

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TASK ENVIRONMENT (STAKEHOLDERS)
Immediately surrounding the project

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Made of stakeholders

Project activities affected

Elements of Task Environment are:

Client
Contractors
Consultants
Suppliers
Government
Financiers
Labor Unions 28
EXTERNAL ENVIRONMENT

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Set of forces Surrounding the Project
Outside (External) to the Project

Out of Control by the Project

Elements of External Environment

Political-Legal Environment
Economic Environment
Socio-Cultural Environment
Technological Environment

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EXTERNAL ENVIRONMENT
Political-Legal Socio-Cultural
Political Environment Social

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Political System Demography
Political Institutions Social Institutions

Political Philosophies Pressure Groups

Legal Environment Social Change

Laws Cultural Environment

Courts of law

Law Administrators
Technological
Economic
Level of Technology
Economic System
Technological Change
Economic Policies
Technology Transfer
Economic Conditions
Research and
Regional Economic Development
Groups
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PROJECT IMPACTS

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Projects Have Different Impacts
Economic Impacts
Environmental Impact
Social Impacts

There is a need to access the impact and hence

Impact analysis has to be done

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ENVIRONMENTAL IMPACT
Environment

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All physical ,chemical and biological facts and
condition the influence the existence and
development of an organism and system of organism
Nature or conditions surrounding all mankind
including the future generations
Human inextricably linked with Environment
Environmental Problems (Negative Impacts)
Oil spills, toxic gas leakage, heavy metal depositions
Pollutions ( air, water, noise, radiations etc.),
landslides, floods, deforestation

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ENVIRONMENT IMPACT ASSESSMENT
The systematic process of identifying the future
consequence of a current or proposed action.

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Instrument integrated with a goal of making
economic development of project environmentally
sound and sustainable
Started Use in 1970s in US ,after 1990 (Rio
summit) it became widespread
Project tool for analyzing environment effect
Identify potential environmental impact
Examine the significance of environmental
implications
Recommend preventive and corrective measures
Inform concerned parties about environmental
implication
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Advice whether to go ahead (of the project)
SOCIAL IMPACT

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Consequences to people of any proposed action
(Projects) that changes the way
They live
They work
They relate to one another
They organize themselves and function as individuals
and members of society.
This definition includes social-psychological
changes, for example to peoples values, attitudes
and perceptions of themselves and their
community and environment.
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Social impact that occur as a result of project-
related changes can be grouped into these
overlapping categories
Lifestyle impacts on the way people behave and relate
to family, friends and groups on a day-to-day basis
Cultural impacts on shared customs, obligations,
values, language, religious belief which make a social
or ethnic group distinct;
Community impacts on infrastructure, services,
voluntary organizations, activity networks and
cohesion;
Amenity/quality of life impacts on sense of place,
aesthetics and heritage,
Perception of belonging, security and livability, and 35
aspirations for the future
SOCIAL COST BENEFIT ANALYSIS

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Some project may not offer attractive rate of
return but still those projects are undertaken
For they have social implication (e.g. water
supply, irrigation)
Socio economic consideration rather than
financial profitability
SCBA is type of analysis from the view point of
society and generally used for public investment
Ordinary cost benefit Analysis= Worth/Cost

Social cost benefit Analysis=

(social benefit +worth)/(Social cost+ Other Cost) 36