Engr. Ch.

Jamil Ahmad
B.Sc. Civil Engg. PostGraDip. CPM. (UK), MBA(UET), PMP

Ex - Project Director, PEC

Ex- Chief Engineer, PU

Ex- General Manger Procurement, LWMC

Ex- General Manager Technical, PIEDMC

Ex- Director Procurement,

Punjab Irrigation Department
 Project Management Course
Outline
Project Management course is a comprehensive
introduction to project management theory and application
including but not limited the knowledge areas and
processes identified in the Project Management Institute’s
(PMI) Guide to the Project Management Body of
Knowledge (PMBOK).
Using a combination of theory based lectures, case studies,
and practical exercises, students are introduced to project
management best practices and problem solving techniques
associated with project planning, charter, scope, feasibility,
risk, financial analysis, close up, HR, Quality Management,
resource requirements management, executing and
controlling the projects, etc.
 Course Contents
 Introduction to Project Management
 Definition of a Project
 Importance of Project Management
 Project Life Cycle; Types of Projects
 Project Management and related industries
 Project Initiation and Selection
 Project Manager
 Project Organization
 Project Planning
 Conflicts and Negotiation
 Project Implementation.
 Budgeting and Cost Estimation
 Course Contents
 Scheduling; Resource allocation
 Monitoring and information systems
 Project control.
 Project Feasibility study
 How to prepare Project Feasibility Study
 Format of Feasibility Study
 Contents of Feasibility Study
 Making Accurate Estimates.
 Project Networking & Scheduling (PERT/CPM)
Text Books:
Jack R. Meredith & Samuel J. Mantel, Jr.: Project Management – A
Managerial Approach.
Harold Kerzner Project Management – A Systems Approach to Planning,
Scheduling and Controlling.
 What is a Project ?

A project is a sequence of temporary, unique,

complex and connected activities having one goal or
purpose and that must be completed by a specific
time, within budget, and according to specifications.
 What is a Project ?
“A unique set of coordinated activities, with definite
starting and finishing points, undertaken by an
individual or organization to meet specific objectives
within defined schedule, cost and performance
parameters”(British Standard, BS6079:1996, Guide to Project Managt)

•Temporary endeavor with a beginning and an end

•Creates a unique product, services or result
•Is progressively elaborated. (PMI PMBOK Guide)
 What is a Project ?

• A project is a one-time effort with specific

objectives and deliverables.
• A project requires a commitment of personnel,
capital, and other resources over a period of time. 
• A project has a defined start and end date.
• A project is executed by an organized team.
• A project has a certain amount of complexity and is
not "business as usual“ (operations).
 What is a Project ?

• It is goal oriented
• It has a particular set of constraints
• The output is measureable
• Something has changed through the project being
carried out.
 Project Attributes
• Purpose – a project is usually a one-time activity
with a well-defined set of desired end results
• Life cycle – like organic entities, project have life
cycles
• Interdependencies – projects often interacts with
other projects and the organization’s ongoing
operation
• Uniqueness – every project has some elements that
are unique
• Conflict – more than most managers, the project
manger operates in a world characterized by conflict.
 Project Life Cycle
• Conception/selection
• Planning
• Implementation
• Control
• Evaluation
• Termination

• Construction: Feasibility, planning, design, production,

turnover and startup
• Information System: Requirements analysis, high-level
design, detail design, coding, testing, installation,
conversion and turnover to operations.
Project Life Cycle
 Time & Cost Limits
Project Inputs Project Output(s)

Scope Constraint
 Project Parameters

• Cost

• Time

• Resources
 What is a Project (Contd)
• The Scope Triangle: Time, Cost, Resources

Cost Time
Scope
and
Quality

Resources
 Classification of Project Types
Projects can be classified as social sector and
infrastructure. Some examples are:
Transportation Highways, mass transit, airports
Utilities Electric power, gas, telephones
Education Schools, colleges, dormitories
Public Safety Police, fire, National guard
Recreation Parks, playgrounds, historic sites
Development Harbors, dams, irrigation,
Research Health, space, agriculture
Defense Military equipment and systems
Conservation Forests, shorelines, pollution
 Project Framework
• Project Definition
• Project Initiation
• Project life Cycle
• Project attributes & parameters
• Project Types & Classification
• Project Organization
• Project Stakeholders
• Project External Environment
• Project Constrains
 Project Failure
Projects that have failed generally display several of the
following characteristics:
The customer’s conditions of satisfaction have not been
negotiated.
The project no longer has a high priority.
No one seems to be in charge.
The schedule is too optimistic
The project plan is not used to manage the project.
Sufficient resources have not been committed.
Project status is not monitored against the plan.
 Causes of Failure Contd
 No formal communications plan is in place.
 The project has lost sight of its original goals.
 There is no change management process in place.
 Foreign aided projects: Sluggishness and bureaucracy of
the Government.
 Project Management Processes
Initiating Planning
Processes Processes

Controlling Executing
Processes Processes

Closing
Processes
Planning provides documented executing plans
and the updates as the project progresses
 Project Selection Models
• Non-numeric Models
• The sacred cow
• The operating necessity
• The competitive necessity
• The product line extension
• Comparative benefit model
• Numeric Models:
• Payback period
• IRR
• Discounted cash flow, NPV
• Benefit Cost Ratio
 What is Project Planning ?
• It is complete road-map to go from point A to B.

• Project planning is a rational determination of how

to initiate, sustain, and terminate a project

• Project planning starts with the development of a

vision - the ability to see something that is
invisible to others
 Why Plan a Project ?
• To eliminate or reduce uncertainty

• To improve efficiency of the operation

• To obtain a better understanding of the objectives

• To provide basis for monitoring and controlling

work
 What is Project Planning ?
• It is complete road-map to go from point A to B.

• Project planning is a rational determination of

how to initiate, sustain, and terminate a project

• Project planning starts with the development of

a vision - the ability to see something that is
invisible to others
 Why Plan a Project ?

• To eliminate or reduce uncertainty

• To improve efficiency of the operation
• To obtain a better understanding of the
objectives
• To provide basis for monitoring and
controlling work
 Project Planning Considerations
• Too often people perceive project planning as only techniques or
concepts such as PERT, CPM, and GANTT charts. However, project
planning is much wider activity with following key considerations
• Cost Estimating and Budgeting
• Technology Strategies Scheduling
• Specification of Deliverables
• Resource Usage Estimating
• Delineation of Organizational Structure
• Information and Control System Sign
• Risk Identification
 Planning Stages
Preliminary co-ordination to decide on project objectives

Detail description of the various tasks to achieve objectives

Project budget and schedule

System for progress reporting

Project delivery – how handed over at termination

 Project Initiation Process
Step 1 – Initial Project Screening/Project
Identification

Step 2 – Project Pre-feasibility Study Process

Step 3 – Project Feasibility Study Process

 Feasible
• Feasible (‘fee-ze-bel)
– capable of being done or carried out;
– capable of being used or dealt with successfully;
– reasonable, likely.
 Questions:

• Can we build a (software) system to meet the

client’s expectations?

• Can we build it under the constraints (cost,

time, personnel, …)?
 Motivation?

• Not everything that is imaginable is feasible.

• Not everything that is possible is feasible.

• Not everything that is technically feasible

makes good business sense, i.e., is not feasible
in the business environment
 Three Main Questions About the
Feasibility of a Project
• Does it contribute to the overall objective of the
organization?

• Can it be implemented using current technology

within cost and schedule constraints?

• Can it be integrated with existing systems (data

transfer, procedures)?
 More Questions:
• What are problems with the current
system/procedure, and how will the new system
address those?
• How will the new system contribute to the
business objectives?
• Does it require “new” technology (technology
new to this organization)?
• What must be supported in order for the
proposed system to function adequately?
 Feasibility Study Needs to be …
• Inexpensive
– We are deciding whether to continue the project.
– Shouldn’t invest resources with no return.

• Quick

• Accurate
– Conflicts with other items here …
 Feasibility Study
• Dimensions of feasibility
Technology
Finance
Time
Resources
 Pre-feasibility
 Feasibility study is a short, focused and a low cost
assessment of a projects’ viability.

 Define the project, and to collate information

necessary for the company to develop the project
concept based on value for money concept

 Technical and financial challenges of implementation,

 Expected project outcomes and impacts.

 Pre-feasibility analysis
1) Determine Technical and Operational Feasibility of
the project concept through preliminary analysis of:

 Engineering/technical aspects of the project;

 Manageability of operational aspects of the

project;

 All possible technical and operational risks

 Pre-feasibility analysis
2) Environmental and social safeguard activities:

 Socio-Economic Assessment and Analysis

 Environmental Assessment Scoping

 Pre-feasibility analysis
3) Determine the Financial and Economic Feasibility of
the project concept through preliminary assessment of:
 Cost recovery/income generation assumptions of
project;
 Likely share holders interest in the project;
 overall project cost (capital + operations +
maintenance);
 Possible financial risks;
 Identification of likely economic benefits generated
by the project.
 Pre-feasibility analysis
4) Identify possible arrangements for private sector
participation / share holder through:

 identifying role of the share holders (direct or

indirect investment, joint venture partner, etc);

 identifying the contractual framework

 Pre-feasibility analysis
5) Identification of Next Steps by:

 Assessing the resources required to complete the

project preparation process;
 Identifying parties responsible for completing next
steps;
 Determining the roles and responsibilities of
involved parties;
 Determining the time frame required for
completing project preparation.
At the completion of this task the institution/company
will have a well defined description of the proposed
project, its general scope, preliminary cost estimates,
identified social mobilization/safeguard and
environmental issues and requirements, income
generating opportunities, initial financial viability,
private sector/share holders opportunities, any identified
project risks, and what further actions are required to
complete the project preparation and by who.
This process will provide a good basis for further
pursuing the project.
 Project Feasibility Study
 Feasibility study is a critical component of project
preparation, and a technical working document for
project appraisal. Any project regardless of its scale
and nature can have long-term implications with a
great deal at stake once it’s implemented.
 Feasibility study needs to be authentic, accurate and
thorough.
 It is the basis on which the institution/company would
make an investment decision on the project and not
just a bureaucratic requirement.
 Project Feasibility Study
 Ensure that the project is in accordance with
predetermined needs and is the most suitable technical
solution to the needs;
 Provide information about costs (explicit and hidden),
and give an indication whether these costs can be met
from within company budgets without disruptions to
other activities;
 Consider the economic rationale for the project;
 Allow for the identification, quantification, mitigation
and allocation of risks associated with its whole life
cycle;
 Project Feasibility Study
 Complete a Resettlement Plan including all
relocation plans and resettlement impacts;
 Document all consultation completed for the project;
 Include the project specific land acquisition;
 Provide management programs for supervision to
ensure compliance with approvals and defined
mitigation plans;
 Consider whether or not the project is affordable to
the company and/or the end user of the services in
terms of explicit and contingent fiscal obligations
 Project Feasibility Study
 Consider how the project will be structured;
 Contain a financial model with key investment ratios,
and the capability of running scenario and sensitivity
analyses;
 Identify constraints which may cause the project to be
halted;
 Ensure that the project is developed around a proper
business plan; and has been subject to a due diligence
that shows it is legally, physically, socially &
environmentally compliant.
 Project Manager
• Project Manager is responsible for the project
from cradle to grave
• This person will take responsibility for planning,
implementing, and completing the project
• The PM can be chosen and installed as soon as
the project is selected for funding or at any
earlier point
• PM is chosen late in the project life cycle,
usually to replace another PM
 Responsibilities of PM
• To complete the project within time, within budget and
according to specifications

• To act as an intermediary between top management and

project team

• To obtain feedback for learning lessons

• To train and educate the project staff

 Competencies needed….
Core Additional
• Planning • Process mapping
• Estimating • Business area analysis
• Project Tools • Team Building / Managing
– MS Project People
– Project Workbench • Facilitation
• Conducting Meetings • Financials / business case
• PM Methodology development
• Quality Assurance

And a sense of humor!

 Project Organization
Functional Organization
• Project is made a part of one of the functional
divisions of the firm
• Major Advantages
– Maximum flexibility in the use of staff
– Individual experts can be utilized by many different
projects
– Specialists in the division can be grouped to share
knowledge and experience.
 Functional Organization
(Contd)
– The functional division also serves as a base of
technological continuity when individuals choose to
leave the project and even the parent firm.
– Functional division contains the normal path of
advancement for individuals whose expertise is in the
functional area
• Disadvantages
– Client is not the focus of activity and concern
– Functional division tends to be oriented toward the
activities particular to its function
 Functional Organization (Contd)
– Occasionally in functionally organized projects, no
individual is given full responsibility for the project.
– Response to client needs is slow and arduous
– Project issues that are directly within the interest area of
the functional home may be dealt with carefully, but
those outside normal interest areas may be given short
shrift, if not totally ignored
– Motivation of people assigned to the project tends to be
weak.
– Such an organization arrangement does not facilitate a
holistic approach to the project.
 Project Organization (Contd)
Pure Project Organization
• The project is separated from the rest of the parent
system. It becomes a self-contained unit with its own
technical staff, its own administration, tied to the
parent firm by the tenuous strands of periodic
progress reports and oversight
• Advantages
– The project manager has full line authority over the
project. All members of the project work force are
directly responsible to the PM
 Pure Project Organization
P re s e n d e n t

P ro g ra m M a n a g e r V . P . M a r k e t in g V . P . M a n u fa c t u r in g V .P . R & D

Marketing
Manufacturing
Manager, Project R&D
A Finance
Personnel

Marketing
Manufacturing
Manager, Project B R&D
Finance
Personnel
 Pure Project Organization
• The lines of communication are shortened and PM
communicates directly with senior corporate
management.
• The project team that has a strong and separate
identity of its own tends to develop a high level of
commitment from its members.
• Because authority is centralized, the ability to make
swift decisions is greatly enhanced.
• Unity of command exists.
Pure Project Organization (Contd)
• Pure project organizations are structurally simple and
flexible which makes them relatively easy to
understand and to implement.
Disadvantages
• When the parent organization takes on several
projects, it is common for each one to be fully staffed.
This can lead to considerable duplication of effort.
• PM may stockpile equipment and technical assistance
in order to be certain that it will be available when
needed
• Pure project groups seem to foster inconsistency in the
way in which policies and procedures are carried out.
• In pure project organizations, the project takes on a
life of its own. Team members form strong
attachments to the project and to each other.
• Worry about “life after the project ends”
The Matrix Organization
• It couples some of the advantages of the pure project
organization with some of the desirable features of the
functional organization, and to avoid some of the
disadvantages of each, the matrix organization was
developed. In fact, the functional and the pure project
organizations represent extremes.
 Matrix Organization
P r e s id e n t

P ro g ra m m a n a g e r M a n u fa c tu rin g M a rk e tin g F in a n c e R&D P e rs o n n e l

PM1 3 1 1/2 1/2 4 1/2

PM2 1 4 1/4 1 1/2 1/4

PM3 0 1/2 3 1/2 1

 Matrix Organization
Advantages
• The project is the point of emphasis. PM takes
responsibility for managing the project, for bringing it in
time, within cost, and to specifications
• There is less anxiety about what happens when the project
is completed
• Response to client needs is as rapid as in the pure project
case
• Consistency with the policies, practices, and procedures of
the parent firm tends to be preserved
 Matrix Organization (Contd)
• Where there are several projects simultaneously under
way, matrix organization allows a better company wide
balance of resources to achieve the several different
time/cost/performance targets of the individual
projects.
Disadvantages
• The movement of resources from project to project in
order to satisfy the several schedules may foster
political infighting among the several P.Ms.
 Matrix Organization (Contd)
• For strong matrices, problems associated with
shutting down a project are almost as severe as
those in pure project organizations.
• Division of authority and responsibility inherent in
matrix management is complex.
• Matrix management violates the management
principle of unity of command. Project workers
have at least two bosses.