Project Management

B20BH5030
SCHOOL OF MANAGEMENT STUDIES
Program: BBA(H)
Course Title: PROEJCT MANAGEMENT
Course Code: B20BH5030
Course Type: HC
Course Presenter: PROF. MANIKRISHNA
Semester & Section: V-B
Academic Year: 2022-23
Course Pre-requisites: -
L T P: [3] [1] [0]
Pedagogy: ICT & E-CONTENT
 Course Objectives:

1.To equip them with the knowledge and skills required to be successful in applying Project Management.
2.To make them understand techniques for Project planning, scheduling and Execution Control
3.To make them understand the concepts of Project Management for planning to execution of projects and to make
them understand the feasibility analysis in Project Management and network analysis tools for cost and time
estimation.
4. To enable them to comprehend the fundamentals of Contract Administration, Costing and Budgeting, Methodologies
in Indian context.

Course Outcomes:
1. To equip them with the knowledge and skills required to be successful in applying Project Management.
After the completion of the course, students will be able to:
2.To make them understand techniques for Project planning, scheduling and Execution Control
1. .
3.To make them understand the concepts of Project Management for planning to execution of projects and to make them
understand the feasibility analysis in Project Management and network analysis tools for cost and time estimation.
4. Analyse the environmental issues which have an impact on the execution of Project Management.
Syllabus:
Course Program
Unit Topics Outcomes Outcomes

Introduction to Applied Project Management: Project Definition, Project Feasibility

Analysis, Developing a Project Execution Plan, Setting up a Project Organization Project
I 1 1,2
Identification, Project Formulation, Project Selection, Project Planning, Project Appraisal,
Project Implementation and Integrated Project Management
Resource Scheduling, and Cost Estimating: Controlling Project Execution, Project Control,
Project Planning and Scheduling Module ,Project Cost Engineering and Detailed
II 2 2,3
Engineering, Project Success and Failure, Project Auditing and Project Termination, E-
Tendering
Project Procurement and Construction Management: Construction, Progress,
III Productivity and Supervision, Subcontract Administration and Control ,Human aspects of 3 2,5
project management –Project Monitoring and Control, Project Evaluation, Prerequisites
for successful project implementation
Project Leadership, Audit and Closure Project Leadership: Managing vs leading a
project, Managing project stake holders, Qualities of an effective project manager,
IV Managing project teams, Issues arising out of globalization, Communication, Conflict 4 3,5
management. Project Audit and Closure: Audit process, project closure, project
documentation, evaluation of project manager, team and members.
Reference Books:

1. Vasant Desai, Project Management, Himalaya Publishing House, 2011.

2. Prasanna Chandra, Project, Planning and Analysis, Financing, Implementation, TMH, New Delhi 7/e, 2009.
3. Narendra Singh, “Project Management and Control”, Himalaya Publishing House, 2009.
4. SitangshuKhatua, “Project Management and Appraisal” Oxford Higher education, 2012.
5. Kerzner H.; Project Management, II Edition, CBS Publishers
6. Meredith Jack R., Mantel Samuel J.; Project Management, IV Edition, John Wiley & Sons
7. Gopalakrishnan P., Ramamoorthy V.E; Textbook of Project Management, MacMillan Publishers

E-Resources:
1. https://nptel.ac.in/
2. https://learn.saylor.org
Presentation Topics:

Project Life Cycle

Assignment:

Information on Local projects going on.

Contents
• Project management process
• Project identification
• Project formulation
• Project selection
• Project planning
• Project appraisal
• Project implementation
• Integrated project management
Project identification
• Project identification is the first step of any project cycle.
Entrepreneurs need to identify and zero in on a project that suits
their requirements and can help them attain their goals before
spending significant time and resources on a project. They also
need to study in detail the feasibility of the proposed project
well before they start planning the other steps of the project
cycle. Usually various aspects are required to be studied before
picking a project.
Project identification
• The purpose of project identification is to develop a preliminary
proposal for the most appropriate set of interventions and
course of action, within specific time and budget frames, to
address a specific development goal in a particular region or
setting. Investment ideas can arise from many sources and
contexts.
Project identification
• They can originate from a country’s sector plan, programme or
strategy, as follow-up of an existing project or from priorities
identified in a multi-stakeholder sector or local development
dialogue.
Project identification
• Identification involves:
• A review of alternative approaches or options for addressing a set of
development problems and opportunities;
• The definition of project objectives and scope of work at the degree of
detail necessary to justify commitment of the resources for detailed
formulation and respective preparatory studies; and
• The identification of the major issues that must be tackled and the
questions to be addressed before a project based on the concept can
be implemented.
Project identification
• Sufficient information on project options must be gathered to
enable the government and financing agencies to select a
priority project and reach agreements among stakeholders on
arrangements for preparation work, including setting up steering
committees or national preparation teams.
• The results of identification work should be summarized in a
report, project brief or concept document, the format of which
will depend upon the government’s and/or financing agencies’
requirement.
Project identification
• Start of initiating phase
• Recognize need, problem or opportunity
• Various ways for identification
• Organizations strategic planning
• Response to unexpected events
• Group organized to address a need
• Important to clearly identify need to determine if worth pursuing
• Use decision making process to prioritize and select project
with greatest need
Examples of project identification
• Meaningful indication for a successful project can be availed
from the following one or more sources for project identification
• Five Year Plans For project identification, the Five Year Plans are
indicative enough to reflect the government’s intention,
including the policy emphasis on the sectors and—within the
sector—particular type of industries.
• Imports and Exports The industry-wise, and also product-wise,
detailed statistics of imports and exports are regularly
published by the government. These information indicates the
possible venture area—What are the products, and the volume
of such products as exported to which countries? And similar
information of imports as well. We can get enough idea from
these statistics about the possible export industry or project to
produce goods for import substitution.
• Analysis of industrial information such as capacity installed,
actual productions, market sizes with its growth can be a
source of information to indicate opportunities.
Project formulation
• Project formulation is the systematic development of a project
idea for arriving at an investment decision. It has the built-in
mechanism of ringing the danger bell at the earliest possible
stage of resource utilization. Project formulation is a process
involving the joint efforts of a team of experts. Each member of
the team should be familiar with the broad strategy, objectives &
other ingredients of the project. Besides being an expert in his
area of specialization, he should be able to play his role in the
overall scheme of things.
Project formulation
• It aims at a systematic analysis of project potential with the
ultimate objective of arriving at an investment decision. In this
process it makes an objective assessment from all possible
angles starting from project identification upto its appraisal
stage.
• Thus, project formulation is the process of examining technical,
economic, financial & commercial aspects of a project. It refers to
a preliminary project analysis covering all aspects such as
technical, financial, commercial, economic & managerial to find
out whether it is worthwhile to take project for detailed
investigation & evaluation.
Project Formulation

• Assessing the project idea

• Assessing project components
• Analyzing the components with the help of specialists
• Assessment of an investment proposal
• Case 1: A major housing project in one of the states in India implemented by
a Development Authority had after implementation faced poor public
demand as a result of inadequate demand survey. It was later found that the
public who had paid registration fees at the time of application did not come
forward to pay the entire cost of house and majority of them expressed no
response. The housing units remained unsold until the authority had to
remodify the houses by joining with another private builder on an agreement
to improve the plan, quality and durability of the houses
at a huge cost. After modification, the houses were sold to the public after a
gap of three years. This shows that the public authority was not aware of the
kind of housing need and demand by the public at the time of formulation
stage of the project.
• Case 2: A public shopping complex built by a municipality was not
auctioned due to improper location of the complex for three years. The
investment of the order of Rs 5.0 crores had become dead investment.
The Project Formulation exercise is done
with a view to;
1. Understand various dimensions of the project from a very broad angle.

2. Facilitate the project authorities to take a decision as to whether it is

going to be beneficial for the organization to conduct a detailed feasibility
study or not. Otherwise the project idea may be dropped at this stage
without proceeding or probing any further.

3. A well formulated project is the one which presents a very unbiased

picture of the project idea in more clear-cut terms with regard to all the
above factors.
4. The project authorities should use the information generated through
the formulation exercise to identify the deficiencies and gaps and take
remedial measures ahead of time.

5. Projects leading to loss in terms of money, time and desired output

need immediate attention.

6. Pre-investment study and investment decision in any project in the

government should become the important function.
7. Preparation of detailed feasibility report should be undertaken only
when there are evidence of number of positive indicators to go for the
project.
8. During the pre-investment study, technical assessment, economic
appraisal, input analysis, project design, cost analysis is done to assess
whether the inputs that are required for the project implementation are
available. Such inputs are identified & quantified so that it becomes an
important input for the cost-benefit analysis of the project.
9. The project has also to be assessed from the point of view of social
benefits. Most of the urban development projects are aimed to achieve
direct and indirect social benefits. For example, a water supply project
for a town has direct benefits such as supplying the required quantity of
safe water to the house-holds. At the same time, it has indirect benefits
such as reducing the water borne diseases, health improvement of the
people, increased work out-put because of improved health etc.
Requirements of project formulation
• Road map for new venture
• Capital investment
• Government regulations
• Skilled workforce
• Technology
Factors affecting project formulation

• Appropriate selection of technology.

• Influence of external economies.
• Qualified personnel.
• Resource mobilization.
• Knowledge about government regulations.
Scope of Project Formulation

• General information.
• Product.
• Market potential.
• Plant and machinery.
• Location.
• Raw material.
• Utilities.
• Capital cost.
• Working capital.
• Manufacturing cost.
• Financial analysis.
Project selection
• There is no lack of project ideas in organizations today. Rather,
there seems to be a problem of too many ideas, as a long
pipeline of proposals wait in queue, competing for attention.
Given the large scale and complexity of projects, as well as
constraints in resources such as time and budget, the challenge
is to identify the perfect combination of projects that can fetch
highest returns.
Project selection
• Project selection is the process of evaluating and choosing
projects that both align with an organization’s objectives and
maximize its performance.
• Prioritization refers to ranking or scoring projects, based on
certain criteria, to determine the order of execution. However,
the terms “prioritization” and “selection” are often used
interchangeably, as the two processes are intertwined.
Benefits of Project Selection and
Prioritization
• Project selection and prioritization are all about having a game plan
that accounts for both capacity and strategy. Let’s take a look at
the benefits that companies stand to gain when these are balanced
right.
• Better ROI: The fundamental outcome of any project selection
process is to increase the ROI. Several selection criteria and
prioritization methods, discussed later in the article, can be used to
weigh projects against each other, based on their returns.
• Increased efficiencies: By investing effort upfront to evaluate the
project pool, companies weed out inefficiencies that may creep up
later due to not having enough capacity for execution.
• Strategic alignment: A project that does not cater to
organizational goals, even if executed flawlessly, is a waste of
time. The right selection helps companies stay on track with
their goals.
• Consistency and transparency: A standard selection approach
helps the PMO benchmark projects against well-defined criteria
rather than use ad-hoc processes that lead to inconsistent
approvals. The upside of this consistent approach is
transparent downstream communication, as project managers
get clarity on why a certain project was approved or rejected.
• Shorter time-to-market: As companies become larger, they
struggle to maintain an aggressive time-to-market, with a sea of
projects competing for attention. Prioritization of projects gives
companies the first-mover advantage, enabling them to reach
customers before competition.
• Successful project delivery: When organizations have good
project selection and prioritization processes in place, it leads
to the successful delivery of projects.
Project Selection Criteria for Portfolio
Management
A few examples of project selection criteria are:
 What is the payback or break-even point?
 What is the impact to the organization’s growth (e.g., customer
volumes)?
 Does the project contribute to innovation?
 How much risk is involved?
 Are there sufficient resources in terms of time, budget,
infrastructure, and people with relevant expertise?
 What is the cost/benefit ratio?
Continuous Monitoring in Project
Prioritization and Selection
• Project prioritization is usually perceived as an initial step, a
decision point that leads to the actual execution of the project.
However, many variables may impact the selection criteria as
the project progresses. Project prioritization should instead be
an ongoing process where project scores are reviewed and
updated during project development and at designated stage
gates. As project definition increases, the scoring becomes
more accurate and definite.
WHAT IS PROJECT PLANNING?

• Project planning is a form of operational planning, whereby the

consecutive steps to implement the project activities are
carefully mapped out, based on an analysis of relevant
information and linked to the program in which the project takes
place and to which it should contribute. Essentially, project
planning involves establishing the scope, aims and objectives of
a project, the way in which the project will be performed, the
roles and responsibilities of those involved, and the time and
cost estimates.”
Purpose of the project planning

• Scope planning
• Preparation of the work breakdown structure
• Project schedule development
• Resource planning
• Budget planning
• Procurement planning
• Risk management
• Quality planning
• Communication planning
Articulating Project objectives
Project Planning Steps

• Assessment of the situation

• Identification and Prioritization
• Project design and development
• Plan for Implementation, monitoring and evaluation
• Proposal development
Questions to be considered for planning
Project Implementation
• After a team has determined the scope, budget and timeline for
a project, it's time to put that plan into action. Project
implementation involves directly managing a project to ensure it
meets the objectives outlined in the planning phase. Project
managers must implement a project effectively so that the team
can produce the deliverables required to satisfy the clients or
key stakeholders of a project. In this article, we define what
project implementation is, explain why it's important and
provide steps for implementing a project to meet the overall
goals successfully.
What is project implementation?

• Project implementation is the process of putting a project plan

into action to produce the deliverables, otherwise known as the
products or services, for clients or stakeholders. It takes place
after the planning phase, during which a team determines the key
objectives for the project, as well as the timeline and budget.
Implementation involves coordinating resources and measuring
performance to ensure the project remains within its expected
scope and budget. It also involves handling any unforeseen
issues in a way that keeps a project running smoothly.
What is project implementation?
• To implement a project effectively, project managers must
consistently communicate with a team to set and adjust
priorities as needed while maintaining transparency about the
project's status with the clients or any key stakeholders.
Why is project implementation
important?
• Project implementation that relies on strategic planning outlined
earlier in the process can help a team achieve the project
objectives while staying within budget and meeting relevant
deadlines. Implementation is the part of the project cycle that
bridges the planning process and the project outcomes. This
step of the process, and how well it's executed, can ultimately
determine the success of a project.
Why is project implementation
important?
• During the implementation phase, a project manager
establishes how closely the team is meeting the project
objectives, making changes as necessary to keep the project on
track. Implementation allows project managers to take control
of a project and empower the team to reach common goals,
building trust and transparency among those directly involved
with the project.
How to implement a project
• 1. Assess the project plan
• In the first phase of the project cycle, it's beneficial to establish a
plan that meets the expectations of management, clients and key
stakeholders. Before implementing a project, assess the plan and
make sure that everyone on the team understands the project
deliverables. The project manager may want to hold an initial
meeting to outline everyone's assigned roles and the expected
timeline, as well as any project milestones that a team works
toward in the implementation phase. This initial step can help to
unite the project team and set a collaborative standard for work.
• 2. Execute the plan
• With a plan in place and expectations set for the team, it's time to
start work on the project. During this step, project managers want
to have regular discussions with the team about their progress.
Measure the project's timeline against the projected schedule and
monitor resources to ensure the team has what they need to
complete the project successfully. Communication is
instrumental during this part of the process to keep the team
aware of the project's priorities. It's also important to provide
regular progress updates to the clients or key stakeholders to
remain transparent about the progress during this step.
• 3. Make changes as needed
• During any type of project, it's likely that a project manager needs
to make changes during implementation, such as to address
additional requests from the client or to keep the project within its
scope. Make these adjustments as necessary, relying on the
project plan to identify solutions. Continue to communicate with
the team, asking questions to determine areas where they need
more support. Be prepared to allocate more staff or resources if a
project deviates from the plan. Change is a reality for many
projects and how effectively a project manager implements those
changes can affect the project's outcome.
• 4. Analyze project data
• Throughout the implementation phase of a project, it's important
to analyze data consistently to measure how a project is
progressing against the initial projections. You can use specific
project management software or a manual system to compile
data related to staffing, resources and budget. Examine the data
and determine if there are other areas where it would be
beneficial to implement additional changes to help a team meet
the initial project expectations. If so, go back to the previous step
and make those changes, continuing to gather additional data to
assess the project variables.
• 5. Gather feedback
• Once the team has completed the project deliverables, there are
still some essential steps left in the process. Gather feedback
from the project team, clients and stakeholders about the
project's outcome, assessing what parts of the project went
according to plan and what areas the team could improve in the
future. You can have direct conversations with those involved in
the project to get this feedback, or you may find it helpful to send
out a short survey asking for input. This step can help companies
make continual improvements to ensure the successful
completion of future projects.
• 6. Provide final reports
• In the last part of the implementation phase, provide reports to
the project team, clients and stakeholders outlining how the
project performed against the projected budget and timeline.
Explain any areas where you needed to make changes to keep the
project within its scope and budget. These reports include the
applicable data related to the project's budget, time and
resources. This step gives companies the chance to reflect on the
successes of the project and identify any improvements needed
for the future, which can have long-term benefits for the project
management cycle.
Methods of Project Implementation
1. Critical Chain Method 
• If the Chain method’s implementation method, the most critical component is to compare the
actual results with the expected results.
• If the results fall in line with the desired output, the plan can be taken further. If the result does
not fall in line with the expected outcome, a change of plans or goals must be implemented.
• In this implementation process, there are some powerful tools required for structured
coordination among the managerial personnel. These tools are as follows;
• Meetings to kick off the work
• Regular meetings with the staff
• Special status meetings
• Workshops for risk analysis
• Workshops for problem-solving
• Review meetings
2. Extreme project management
• Extreme project management method (XPM) is used to
implement projects by planning along with an open approach,
reducing formalism, and deterministic management. This
project implementation method focuses on the human factor
instead of formal methods and rigid phases of project
management. You can opt for this method of implementation
for complex, large, and uncertain projects.
3. Critical Path technique
• This method revolves around an algorithm used for scheduling
and planning projects.
• In this project implementation method, the longest path from the
beginning to the end of any project is analyzed by finalizing and
understanding the associated critical tasks.
• Different tasks that might influence the deadlines of the entire
project come under scrutiny here.
• This method should be used to manage and implement complex
projects for which deadlines and delivery terms are important.
4. PERT method is applicable in different areas. It comprises
detailed and complex planning alongside visual tracking. The
US Navy developed this technique during the Cold war for
optimizing efficiency. You can use it for large and long-term
projects that incorporate challenging and non-routine tasks.
5. Agile method
• With the Agile method, a set of principles that are dependent
upon the value-centered approach. In this project
implementation method, a project is divided into short sprints
with adaptive planning and continual improvement. It also
fosters self-organization and collaboration of teams targeted
for producing maximum value. Some such techniques are
Scrum, DSDM, Kanban, FDD, and so on. You can use it for
software development projects that revolve around multiple
iterations, and small and collaborative teams opt for them.
6. Classic technique
• This is one of the simplest methods used for managing and
implementing a project.
• The classic method revolves around preparing a plan of
upcoming work and then estimating tasks that are supposed to
perform. Accordingly, resources are assigned.
• Then giving and getting feedback and monitoring deadlines and
quality is done. This technique is primarily used to run projects
by small teams when it is inevitable to implement complicated
procedures.
Project appraisal
• It  is the structured process of assessing the viability of a project or
proposal. It involves calculating the feasibility of the project before
committing resources to it. It is a tool that company’s use for choosing
the best project that would help them to attain their goal. Project
appraisal often involves making comparison between various options
and this done by making use of any decision technique or economic
appraisal technique.
• Project appraisal is a tool which is also used by companies to review the
projects completed by it. This is done to know the effect of each project
on the company. This means that the project appraisal is done to know,
how much the company has invested on the project and in return how
much it is gaining from it.
Project appraisal
• The process of project appraisal consists of five steps and they are –
• initial assessment,
• defining problem and long-list,
• consulting and short-list,
• developing options, and comparing and selecting project.
• The process of appraisal generally starts from the initial phase of the
project. If the appraisal process starts from an early stage, then the
company will be in a better position to decide how capital should be
spend in the project and also it will help them to make the decision of not
spending too much or stopping a project that is not economically viable.
Integrated Project Management (IPM)
• It involves coordinating all of the various resources and
stakeholders that are involved in a project to make sure that
each department is working consistently. Specifically, IPM
requires that each business unit share all relevant information
about the project goals. Additionally, to achieve cohesion
between the different departments, all business units are
expected to make trade-offs and compromises on competing
goals and individual project objectives. Using this approach,
project management becomes more efficient and productive.
Integrated Project Management
Integrated Project Management
• Project Charter: The initial project plan that lists the broad goals and objectives, as
well as the members of the project team. It specifically outlines which team member
is responsible for what tasks, the resources that will be needed and the broader
responsibilities of the project manager. It also lists all the stakeholders who are
invested in the progress of the project.
• Project Scope: This document should also contain the project goals and objectives
but in more detail. More specifically, the goals should be the overall aim that should
be achieved by the end of the project, and objectives which are shorter-term tasks that
are needed to reach the larger project goals.
• Project Management Plan: In this document, the team should list all of the sub-plans
in the project. This means the document should contain any activity that needs to be
coordinated or consolidated with another task, tasks that need to be completed
before another task can commence, or any information that needs to be transmitted
from one team member to another.
• Project Execution: This component states all of the processes that need to
occur to put the aforementioned plans into action. In particular, this document
should list all of the activities that are needed to achieve the broader goals and
the short-term objectives of the project. It should also indicate who is
responsible for what task(s) and how long each task is expected to take.
• Project Monitoring: The team should constantly be monitoring how the project
is progressing, comparing where the project is at to an established baseline to
gauge how far off target the project is. In the event that there are large
discrepancies, the team can adjust the project timeline or reassign tasks as
necessary in addition to making any other necessary changes.
• Change Control: This document lists a contingency plan for any potential
changes that could occur, such as resource depletion or bottlenecks in the
project timeline that occur due to incomplete tasks, etc. This document should
also specify what circumstances are necessary to constitute a change in the
project plan and how these changes could potentially impact performance
during the project. If the change is so significant that it has a serious detriment
to the ultimate success of the project, it might not be implemented.
Work Breakdown Structure
• WBS refers to system of breaking a project into manageable
units so that one can identify all the work elements needed to
complete the project.
• It is the responsibility of workers to execute the work as per the
defined parameters of time, cost, and quality of work.
• Project Schedule: The project schedule refers to the listing
down step by step in sequential order, the jobs involved in the
implementation of the project. These steps should be well
defined along with the estimated time for each step.