Professional Documents
Culture Documents
PM 1to 4
PM 1to 4
1
CONTENTS
Introduction and definitions
Types of projects
Features of Projects
Project Objectives
Concept of Project Management
Project Management Environment
Aims and Objectives of Project Management
‘Management by Project’ Approach
Scope & Coverage
2
CONTENTS
Project Function in an Organization
Layout of Project Department
Case Study : Turner
Required skill set for project Managers
Roles and Responsibilities of Project Manager
Project Risk
Project Management- some facts
Project Management Life Cycle
Role of Consultants in Project Management
3
Introduction
Project is an organised program of activity carried out to
reach a defined goal, often of a non-recurring nature with
a specified terminal point.
It is a package of time-bound, scheduled and assembled
activities dedicated to the attainment of a specific objective
of successful completion of a work on time and within the
allotted budget.
Project is a specific activity on which money is spent in the
expectation of returns.
There is a specific start point and specific end point for a
project.
Project starts from scratch with a definite mission,
generates activities involving a variety of human and non-
human resources all directed towards fulfillment of the
mission and stops once the mission is fulfilled.
4
Definitions
A project may be defined as a scientifically evolved
work plan devised to achieve a specific objective
with a specific period of time .
The World Bank has defined project as ‘an approval
for a capital investment to develop facilities to
provide facilities to provide goods and services’.
It is also defined as ‘the whole complex of activities
involved in using resources to gain benefits’.
Project Management is defined by Project
Management Body of Knowledge (PMBOK) as ‘a
temporary endeavour undertaken to create a
unique product or service.’
5
Types of Projects
Infrastructure NuclearPower
Projects
Worli Sea Link
Jaitapur Nuclear
power plant
8
Features of Project
It has a set of objectives.
It cannot continue for ever, it has to terminate at
some point or the other.
Each project is one single entity even though there
may be several participants in a project.
Each project is unique and no two projects are similar
even though the plans set up are identical.
A project calls for team work- the member of the
team may come from different organisational units,
different disciplines and even from different
geographic regions.
A project has a lifecycle represented by growth,
maturity and decay. However the happenings during
the life cycle of a project are not fully known at any
stage.
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Features of Project (contd.)
Projects range in size, scope, time and cost from mega
international projects costing millions of dollars over
many years to small domestic projects with a low budget
taking just a few hours to complete.
The requirements and constraints within which the
project must be executed are stipulated by the customer.
Projects vary in terms of technology, equipment and
materials, machinery and people, work ethics and
organisational culture.
The greater is the complexity of the project, the greater
will be the extent of work performed by subcontractors.
The project is exposed to risk and uncertainty and the
extent of these depend on how the project moves
through the various stages in its life span.
10
S.M.A.R.T. Project Objectives
S pecific
M easurable
A ssignable
R ealistic
T ime related
11
Concept of Project Management
Project Management is defined by Project Management Body
of Knowledge (PMBOK) as ‘ the application of knowledge,
skills, tools and techniques to project activities in order to
meet shareholder’s needs and expectations from the project.’
It is therefore a fundamental requirement for the project
manager to establish who are the stakeholders and analyse
their needs and expectations to define the purpose of the
project.
As per the definition given by The Association for Project
Management Body of Knowledge (APMBOK) ‘The Project
management is the application of processes, methods,
knowledge, skills and experience to achieve the project
objectives’.
12
Concept of Project Management
According to the Association for Project Management
Body of Knowledge (APMBOK), the project
management is efficiently achieved by:
Defining what has to be accomplished, generally in
terms of time, cost and various technical and quality
performance parameters,
Developing a plan to achieve these and then working
this plan, ensuring that progress is maintained in
line with these objectives,
Using appropriate project management techniques
and tools to plan, monitor and maintain progress,
Employing persons skilled in project management-
including normally a project manager- who are given
responsibility for introducing the change and are
accountable for its successful accomplishment.
13
Project Management Environment
The project environment directly affects the project
and how it should be managed.
Projects are influenced by a number of stakeholders
and issues such as:
Stakeholders (all interested parties)
Client’s/ sponsor’s requirement
Company’s organising structure
Market requirement
Competitors
New Technology
Rules and Regulations
Politics
Economic cycle
14
Aims and objectives of Project Management
Timely completion of the project
Avoidance of delay, technical flaws, design deficiencies
and defects
Ensuring proper fund flow to support and service
projects
Proper tooling and techniques
Promoting effective communication skills
Team building efforts are made through negotiations,
coordination, directing
Motivate the people with innovative methods
Excercising project authority with great skills.
Organising the project meticulously
Evolving the systems and their operations to derive
added stimulus
Plan the sequence of operations
Streamline the procedure for effective implementation 15
‘Management by Project’ approach
This approach envisages accomplishment of the business through
projects.
This ‘Management by Project’ approach has been used in
Organisation flexibility
16
Scope & Coverage
18
Project Function in an Organization
19
Functional type of the project management organization
Figure 1
Advantages
In this case, functional dimensions of the existing
organization are used.
There is a maximal flexibility in using the staff.
Some experts can be engaged in many different
projects.
Experts in the department can be grouped to
exchange knowledge and experiences they possess.
Functional departments also serve as a basis of
technological continuity when some experts decide
to quit the project team, and the enterprise, too.
The functional department possesses the organized
way of advancing individuals as experts in their
functional fields.
20
Disadvantages
21
Disadvantages
There is also a tendency of suboptimal execution of the
project that some people working in the department
where the project is realized very carefully and
efficiently, are interested in realizing some segments of
the project and so neglecting and even ignoring, more or
less, the other ones.
There can be a lack of motivation of the people working
approach.
22
Project Function in an Organization
23
Pure Project Management Organisation (Figure 2)
Advantages
Under this, the project is separated from the home
organization.
The project manager is responsible and authorized for
the project.
The project labor is directly responsible to the project
manager.
In case of realizing complex projects, when some phases
are moved from one to another functional department,
communication lines are shortened because the whole
functional structure is bypassed, and the project
manager communicates directly with the top
management .
24
Advantages
contd.
If several, similar projects are realized successfully,
the pure project organization can enable
permanent, more or less expert staff which can
develop necessary skills for some technologies.
Possibility of fast decision-making Due to
centralised decisions.
The pure project organization is structurally simple
and flexible.
This type of the organizational structure has a
tendency to support the holistic approach to the
project.
25
Pure Project Management Organisation (Figure 2)
Disadvantages
If there are several projects going on at the same time,
and if each of them is completely equipped and
supplied by all resources, this may result in double or
triple efforts in every fields, from the office staff to the
most sophisticated (and most expensive) units.
The people with critical technical skills can be engaged
in the project longer than it is necessary with a view of
ensuring that they will be available in every moment
when it is needed.
The functional departments are still the base of
technological knowledge and it is not so simple to
determine that only some of them can be part of the
pure project team.
26
Disadvantages (contd.)
The team members are strongly associated
with the project and among themselves.
Their relationship with the team members
of other groups may result in rivalry or
competition.
There is a great uncertainty of the team
27
Project Function in an Organization
28
Matrix Organisation for Project Management
(figure 3)
Advantages
It is a balance between the earlier two forms.
The project is paid the central attention.
As the project organization includes functional
departments, temporary taking over workers and their
skills from these departments, draws the logical
conclusion that this enables the use of all resources
from all functional departments.
The team members are not afraid for their future after
finishing the project as they are the personnel of the
home department.
There is more flexibility in serving client’s needs.
There is a consistency with policies, procedures and
practice of the existing enterprise.
It enables better resource use, from the aspect of the
whole company. 29
Disadvantages
If there is any doubt about the positive result of the
project and its responsibility, the project suffers.
Transferring resources from project to project with the
need to satisfy different term plans of every project
can specially increase conflicts between project
managers. The consequence of this cannot be optimal
performance of objectives of the organization.
The capability of the project manager to negotiate
about all resources for technical support and their
delivery on time can be of the key importance for the
whole work.
This management model directly violates one of the
principles of the management-unity of command. E.g
the staff involved in the project has at least two
managers, their functional, as well as permanent
higher authorities.
30
Case study: Turner
31
Case study: Turner
Turner is a North America-based, international
construction services company and is a leading builder
in diverse and numerous market segments. The
company has earned recognition for undertaking large,
complex projects, fostering innovation, embracing
emerging technologies, and making a difference for
their clients, employees and community.
With a staff of 5,200 employees who work on more
than 1,500 projects each year, they offer clients the
accessibility and support of a local firm with the stability
and resources of a multi-national organization.
32
Basic structure of a business unit at Turner
33
Required Skill sets for Project
Manager
People Management
Technical Expertise
Process Management
Change Management
Positive Attitude
Adherence to responsibilities
Creating Standards
Benchmarking
Planning
Direction
34
Roles and Responsibilities of a Project Manager
Defining and Maintaining the integrity of a project
various departments
Negotiation for commitments
activities
Contract Management
matters
Identifying causes of delays, problem solving
35
Roles and Responsibilities of a Project
Manager (contd.)
Human resource Management
Satisfaction of Government, customers and the public
Achievement of project objectives, cash surplus, productivity
Implementation of systems as per the detailed design
Monitoring and reporting of progress of works
Completing the appropriate project initiation and planning
documentation
Managing risks including the development of contingency plans
Identifying training and development needs of the center
Building strong working relationships with team members and
36
Sources of Project Risk
Technical
Financial
Socio-Economic
Contractual
37
Project Risks
38
Impact due to cost and time over runs
Cost Overruns
Estimated cost V/s actual cost
Design changes
Import cost changes due to forex fluctuation
Initial quantity estimation- Civil, electrical, piping
Time overrun (Delays)
Cost escalation
Competitor launches product ahead of us stealing
the show
Change of Technology makes our product obsolete
In the dice to poker scale, where does the project stand? Is
the return expectation an annuity or a pot of gold?
40
Project Management- in a lighter vein
41
STEEP
Health conscious consumers forcing McDonalds
Social
to sell healthy salads and fat free chocolate milk
• Upcoming election
Political • Changes in political leadership
• Type of government
• Destabilizing forces
• Politically volatile region
44
Project Management: Some Facts
The globalising market and the prospects of a higher
growth present both opportunities and challenges for
project management.
Research by the Standish Group shows that a 31.1
percent of IT projects will be cancelled before they
get completed.
Further studies indicate 52.7 per cent of IT projects
will cost 189 per cent of their original estimates.
The lost opportunity costs could easily be in trillions
of dollars.
45
Project Management: Some Facts
The Standish Report says the factors for failure could
be lack of user involvement, lack of executive
management support, inadequate planning, resource
commitment, and incompetency.
According to SPI Research’s 2011 Professional
Services Maturity Benchmark study, only one-fourth
of organizations have their own standardized
processes for managing projects and only 15 percent
use metrics and controls.
Project management is successful only if the project
manager and his team are totally dedicated to the
successful project completion.
46
Project Management
Case Study: Proctor and Gamble
47
(http://www.pmi.org/business-solutions/
~/media/PDF/Case%20Study/Procter
%20and%20Gamble%20Case
%20Study.ashx)
Proctor and Gamble Case Study
That was the challenge facing Procter & Gamble (P&G), the
global consumer products company, when it needed to
enhance its nearly 20-year-old ordering, shipping and
billing software and work processes.
This was no simple IT patch, however: The system served
the very heart of P&G’s US$84 billion business. The
company knew it had to identify, mitigate and manage
any and all risks to the new system.
Covering North America, Europe and 150-plus export
markets, the project would directly impact a diverse
portfolio of 250,000 products that includes everything
from laundry detergent to pharmaceuticals to snacks. In a
single day, the IT system typically juggles 18,000 orders
shipped to 150,000 retailers on 8,000 trucks—accounting
for US$200 million in revenue.
Any glitch would generate unwanted attention and
potentially mean a hit to the bottom line.
51
Proctor and Gamble Case Study
driving goals:
to collect and respond to feedback in real time and
53
Proctor and Gamble Case Study
54
Proctor and Gamble Case Study
55
Proctor and Gamble Case Study
The team identified three major risks:
Loss of business due to an inability to process orders in a
timely way
Loss of credibility because of a lack of quality in the
shipping process
Loss of sales as competitors took advantage of the
transition
To mitigate and manage those risks, P&G introduced a
board that included three of P&G’s five regional presidents,
along with all 14 of P&G’s business unit presidents.
The move proved vital. Amidst one major acquisition deal,
for example, the board identified potential human
resourcing issues that could have thrown off the project.
To minimize disruptions to the schedule, P&G reallocated
staff from other areas of the company.
56
Proctor and Gamble Case Study
Given the complexity of the project, P&G also implemented
a central technical and project management office team in
each region.
Local market teams mostly gathered in country head
58
Proctor and Gamble Case Study
The board also discussed possible project
enhancements and dug deep to see if the
potential benefits were actually worth it.
As implementation drew closer, P&G conducted
59
Proctor and Gamble Case Study
The goal was to communicate everything that
happened on the first day of implementation to
other teams across the world.
According to Mr. Fraga:
60
Project Management Life Cycle
Initiation/conception Phase
Definition Phase
Planning and Organising Phase
Implementation Phase
Project clean-up Phase
61
Initiation/Conception Phase
overcome them.
Idea needs to be examined in light of
62
Definition Phase
This phase will develop the idea generated during the
conception phase and produce a document describing
the project in sufficient details covering all aspects
necessary for the customer and/ or financial
institutions to make up their minds on the project
idea.
Following ideas can be examined at this stage:
Raw Material
Plant size/capacity
Project Layout
63
Planning and Organising Phase
Work Packaging
64
Planning and Organising Phase(contd.)
This phase overlaps with the definition and the
implementation phase.
Some organisations prepare documents such as
‘Project Execution Plan’ to mark this phase.
This phase is involved with preparation for the
project to take off smoothly.
Planning is defined as making a decision in
advance.
Hence it is essential that this phase is completely
gone through before the next ‘implementation
phase’ starts.
65
Implementation Phase
machinery
Ordering of equipments
lining up construction work
Construction drawings
Civil construction and construction of equipment
foundations
Equipment and machinery erection
Plant electrical work
Testing/ checking
Trial run and commissioning of the plant
66
Implementation Phase
67
Project clean-up Phase
68
Role of Project Management Consultant
The role of Project Management Consultants is driven by:
Customer concerns for cost effectiveness
complex one.
The role has many different aspects and means different
69
Benefits of Hiring a Project Management Consultant
Consultants add value by using their skills and expertise to
on investment’ to a client.
They can engage promptly with the situation, and can
70
Case Study: Project Management Consultants
Project Management Consultants LLC ("PMC") is a
multidisciplinary, Cleveland-based company.
PMC was founded by Managing Director, Jeff Appelbaum,
in 1997 as a wholly owned subsidiary of Thompson Hine
LLP.
Mr. Appelbaum, who has over 30 years of experience in the
practice of construction law, saw the need for construction
consulting services (beyond legal representation) to satisfy
project management needs for project owners.
PMC consists of seasoned construction professionals,
including construction attorneys and licensed professionals
who formerly served in the roles of architect, professional
engineer, construction manager, and financial strategist.
71
PMC Case Study Contd
PMC serves the construction industry in following ways.
1. PMC provides design and construction partnering
facilitation and mediation services for hundreds of projects
throughout the United States.
2. They serve as owner's representative for projects,
including a museum, library, assisted living/care facility,
stadium, school, office building/parking complex and
parking facility.
3. PMC has served as project delivery consultant on a
number of museums, stadium and arena projects, and
many other commercial, industrial and institutional
facilities throughout the United States.
4. PMC also offers public and private financing consulting.
72
PMC Case Study Contd.
PMC has also served as project delivery
consultant for dozens of projects, including:
Orlando Magic Amway Center
Minnesota Twins Target Field
Florida Marlins Miami Ballpark
St. Louis Cardinals Ballpark
Soldier Field Adaptive Reuse (Chicago, IL)
Carnegie Science Center (Pittsburgh, PA)
73
In lighter vein…..
Thank You 75