I.

Life of a Project

Chapter- 1
Project Management Concepts

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Definition of a project
Project attributes
Key constraints
Steps in the project management
process.
Project life cycle
Benefits of project management
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 What is a Project?

 A temporary endeavor to create a unique

product or service.

Has a distinct beginning and

Temporary
ending.

Unique Doing something that has not

been done before.

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 Expanding the Definition-Project

A temporary endeavor to accomplish

a specific objective through a unique
set of interrelated tasks and the
effective utilization of resources.

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 Essential Elements

1. A specific time frame 4. Unique characteristics

5. Effective utilization
2. Desired outcome of Resources

3. Co-dependent events
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 Specific Time Frame:
Finite life span.
Has a start time and a date by which the
objectives must be accomplished.
 Desired outcome:
Well-defined objective- an expected result.
Objective of a project is defined in terms of-
scope, schedule, and cost.
Scope needs to be accomplished in a quality
manner and to the customer’s satisfaction.

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 Co-dependent Events:
Series of interdependent tasks.
Tasks need to be accomplished in a sequence
to achieve project objectives.
 Unique characteristics:
May be never before been attempted.
May be because of the customization
required.
 Effective Utilization of Resources:
Performance based.
Objective assessment.
Proper monitoring and controlling.
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 Project vs. Operation

What is an operation ?
* A task that is ongoing and repetitive.

Ongoing Happens on a regular basis, no

specific ending or beginning.

Repetitive Nature of work remains the same.

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 Project /Operation

Common
Characteristics

• People performs
• Temporary • Limited Resources • Ongoing
• Unique • Planned, Executed & • Repetitive
controlled

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 Project /Operation
 Constructing a building or factory
 Conducting an election
 Developing a new product
 Planning a wedding
 Modernizing a factory
 Hosting a conference
 Performing a series of surgeries on an
accident victim
 Rebuilding a town after a natural disaster
 Hosting a dinner
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 Operation

Traffic duty
Bank teller
University classes

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 Constraints of Project Success

=> Successful accomplishment of the

project objective is constrained by
Four factors
1. Scope
2. Cost
3. Schedule
4. Customer Satisfaction
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 Factors Constraining…

=> Scope of a Project

All the work must be done in order to
satisfy the customer.
Deliverables should meet the
acceptance criteria agreed upon at the
onset of the project
Work scope to be accomplished in a
quality manner.
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 Factors Constraining…

=> Cost of a Project

The amount customer has agreed to pay
for acceptable project deliverables.
Based on a Budget-includes an estimate
of the costs associated with the various
resources to be used for accomplishing
the project.

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 Factors Constraining…

=> Project Schedule

Time table specifies when each
activity should start and finish.
Specific time by which project
scope must be completed as agreed
upon.
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 Factors Constraining…

=> Customer’s Satisfaction

Objective of any project-complete
the scope within budget by a
certain time to the customer’s
satisfaction.

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 Project Objectives-How to Achieve?

= Complete the scope within budget by a

certain time to the customer’s
satisfaction
How???
 Develop the plan before project starts.
 Include all the work tasks.
 Specify associated cost.
 Estimate time necessary to complete.
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 Unforeseen Circumstances…
 Rise in the cost of materials as compared to
the originally estimated.
 Adverse weather condition.
 Requirement of additional redesign….

Jeopardize the achievement of the project

objective with respect to scope, cost,
schedule and customer’s satisfaction.

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 Challenge to the Project Manager

Anticipate
Prevent
Overcome
=> Good Planning & communication
complete the project scope on schedule,
within budget and to the customer’s
satisfaction.
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 What should be a Project Manager?

 Proactive in
> Planning
> Communicating
> Providing leadership to
the project team
=> The ultimate – To achieve project
objectives & satisfy the customer.

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 Project Management

Process of Planning the work and then

working the plan to accomplish project
objectives.
Planning the work => Establishing a
plan
Working the plan => Implementing the
plan.

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 Establishing a Plan

Implementing
the Plan
Achieving Project

Project
Management
Objectives

Process

Monitoring
Progress 22
 Establishing a Plan

=> Provides a roadmap for how

the project scope will be
accomplished on time and
within budget.

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 7 steps of Establishing a Plan
1. Clearly define the project
2. Divide and subdivide the project scope into
major ‘pieces’ or work packages (WBS)
3. Define the specific activities need to be
performed for each work package
4. Graphically show the activities in the form of a
network diagram
5. Make a time estimate for how long it will take
to complete each activity
6. Make a cost estimate for each activity
7. Calculate project schedule and budget
> Any plan is better than no plan, since no plan doesn’t lead
anywhere.
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 Implementing the Plan

Performing the work according to the Plan and

controlling the work for the achievement of
project scope within budget & schedule, to the
customer’s satisfaction.

 Is a period of high energy and excitement

 Team members begin to realize that the
change’s actually going to happen & what they
are doing will make a difference.
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 Monitoring Progress
To ensure that everything is going
according to plan.
Project Control Measuring Actual Progress

Comparing to planned progress

Deviation if any-schedule, budget,
technical specifications…
Corrective Action

Get the project back on track26

 Project Life Cycle
Effort
Identify Develop a Perform the Terminate
a Need proposed Project the Project
Solution

Time27
 First Phase
Identifying a Need
 A need, problem or opportunity identified by
the customer.

 Developing a document – Request for Proposal

(RFP) by the customer.

 Customer’s requesting proposals from

individuals, team or organizations.
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 Second Phase
Developing a Proposed Solution
 Submission of proposal to the customer

 Proposal appraisal

 Final selection of proposal

 Negotiation and signing of agreement

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 Third Phase

Implementing Proposed Solution

 Project activation

 Resource Utilization

 Project Handover

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 Final Phase
Terminating Project
 Confirmation on deliverables

 Performance evaluation

 Obtaining feedback from customer

 Determining customer’s satisfaction

and expectations
 Obtaining feedback from project
team for improving performance in
future.
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 Important

 PLCs vary in length from a few weeks to

several years
On the basis of content, complexity and
magnitude of the project.
 Not all projects formally go through all
four phases of the PLC.
 PLC is followed in a more formal and
structured manner when a project is
conducted in a business setting.
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 Benefits of Project Management
 Having a satisfied customer:
May be you are the customer of your own
project.
May be a business (contractor) being paid by
a customer.
 Great feeling of satisfaction to all involved in
the project.
 Completing the full project scope in a quality
manner, on time and within budget.
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 Group Task ( 25 minutes)
Consider a project in which you are
currently involved
a. Describe the objectives, schedule, cost etc.
b. Where are you in the PLC ?
c. Explain the plan of the project.
d. How monitoring of the progress is made?
e. Point out some unexpected circumstances
that could jeopardize the success of the
project.
f. Describe the anticipated benefits of the
project. 34
 Further Reading
 Textbook: Erik W. Larson; Clifford F. Gray,
(2011), Project Management: The Managerial
Process, 5th Edition, McGraw-Hill Companies,
Inc., New York, USA.
 Chapter 1: Modern Project Management, page
2-21

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