PROJECT MANAGEMENT: I

SEM 2023-24
BITS Pilani Dr. ARUN MAITY
Pilani Campus
 BITS Pilani
Pilani Campus

MODULE 1: OVERVIEW OF PROJECT MGMT.

Lecture No. 2 PROJECT LIFE CYCLE
Revised Evaluation
Components
• EC1 : QUIZ -1,2,3 : 15 Marks

• CESIM Project Management Simulation : 15 Marks

• EC2: MID SEMESTER TEST (CLOSED BOOK) : 30

Marks

• EC3: COMPREHENSIVE EXAMINATION (OPEN

BOOK) : 40 Marks

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1.14 PROJECT MANAGEMENT:
MANUFACTURING

• Conceptualization of a Product
• Feasibility Study
• Market Survey: Cost, Product Functionality and
Comparative Manufacturer Reliability
• Cost Estimation
• Technology Assessment
• Product Design and Development: Adaptability,
Maintainability and Reliability
• Financing
• Process Planning

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• Quality Specifications
• Personnel Assignment and Training
• Operations Planning
• Facilities Layout
• System Integration
• Production Scheduling
• Production Run
• Product Shipment

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1.15 PROJECT MANAGEMENT:
Automotive Industry

Development process
• Concept Initiation / Approval
• Program Approval
• Prototype
• Pilot
• Launch
Phases of Advanced Product Quality Planning
• Planning
• Product Design and Development
• Process Design and Development
• Product and Process Validation
• Production
• Feedback assessment and corrective actions

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1.16 Department of Defense

FORMAL DESIGN REVIEWS: MIL-STD-1521B

• System Requirements Review
• System Design Review
• Software Specification Review
• Preliminary Design Review
• Critical Design Review
• Test Readiness Review
• Functional Configuration Audit
• Physical Configuration Audit
• Formal Qualification Review
• Production Readiness Review

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1.17 IEEE-1220: PROJECT
MGMT.
• System Definition
• Subsystem Definition
• Preliminary Design
• Detailed Design
• Fabrication, Assembly, Integration and Testing
• Production
• Customer Support

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1.18. ELECTRONICS
INDUSTRY: EIA 632
• Assessment of Opportunities

• Investment Decisions

• Systems Concept Development

• Subsystems Design and Pre-deployment

• Deployments, Operations, Support and Disposal

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1.19. Pharmaceutical Industry:
Drug Development
• How are projects brought to market quickly?

• How do we decide which projects are likely winners or

losers?

• How can we avoid wasted expenditure on projects?

• What can be done to get best return on projects that make it

to the market?

• How do we organize ourselves to develop drugs effectively?

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1.19.1 DRUG
DEVELOPMENT PHASES
• PRECLINICAL PHASE: A drug merits into human clinical
testing

• PHASE 1: A drug merits progression into patent trials

• PHASE 2: To characterize dose response relationship for

efficacy and safety

• PHASE 3: To provide pivotal trial evidence for efficacy

and safety in chronic dosing

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• REGISTRATION : To secure registration approval for the
intended product label

• LIFE CYCLE MANAGEMENT: To maximize the

commercial return for the product

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BITS Pilani, Pilani Campus
1.19.2 GOOD STRATEGIES

• Understand the inherent risks and risk management

strategies in product development

• Profitable to flourish in future

• Return on investment

• Time to market

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1.19.3 EXAMPLES

• Major players were companies operating in industrial

chemicals, retail healthcare, or foods
• Glaxo’s original interests in baby food and other non-
pharmaceutical products, but now has rebuilt its
business around pharmaceuticals with considerable
success.
• Bayer and Hoechst funded R & D intensive
pharmaceutical operations through the cash generated
by other business

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1.19.4 Challenges

• Inefficiency of R & D process became evident and new

regulations introduced to promote safety result in further
escalation of costs and increased timescales

• Increasing competition with similar products reaching the

market meant significantly higher sales and marketing
costs

• Improving the efficiency and effectiveness of R & D

process is an increasingly important objective of most
companies

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• Portfolio Management Is a subject of effectiveness -
Picking the winners

• Project Management Is more about efficiency or

ensuring that the selected products are developed
economically.

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1.19.5 BENEFITS

• Provides a structure for decision making when multiple

projects are competing for common limited resources
• Allows common methods to be used for comparing the
attractiveness of projects
• Creates a group of projects that has the potential to meet
their overall objectives of business.
• Minimizes investment in projects that are judged unlikely
to achieve the technical profile required for commercial
success
• Portfolio management : A dynamic process

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1.20 Health Care Projects

Patient / Health Consumer Level

• A family makes modifications to their home to
accommodate a physically challenged family member
• A diabetic initiates a structured self-management program
Sole Providers and Physicians Group
• A physician’s office implements an electronic health
record system
• A physician group modifies its billing system to meet
revised International Classification of Diseases (ICD)
code sets used to report diagnoses and inpatient
procedures

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Community Clinics

• A community health centers brings complex lab testing in-house to

expedite access to test results and minimize the cost of lab testing
for uninsured patients

Health Networks
• A collection of health care providers forms an accountable care
organization

• A hospital network begins a telemedicine service

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1.20.1 Hospitals : Projects

• A community hospital launches a women’s healthcare

service line
• A university hospital designs and constructs a new
neurology clinic
• A hospital develops a physician evaluation program in
alignment with new standards
• A hospital develops a program to reduce readmission
rates by identifying and monitoring high-risk patient
discharges

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1.20.2 Government and
Public Health
• A developing country’s health department launches a
maternal and child wellness program
• The state public health department develops and
launches an immunization campaign
• Patient Demography and Health Audit
• Patient Life Cycle Management
• Audit of IT applications in Health Department
• Medical Equipment : Asset Care Management
• Medicine Distribution System
• Hospital Management System

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• Bed Management System
• Ambulance Tracking System App.
• Emergency Cases: Forecasting, Preparedness and
Family Care
• Health Data Analytics

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1.20.3 Healthcare
Vendor/Consulting/Auditing
• A consulting company designs and implements a
dashboard for a hospital to evaluate status and results
by department
• A medical supply and distribution company installs new
distribution software that will facilitate Just in time (JIT)
inventory levels
• An audit team conducts an audit of a health organization
• A health care consulting company develops a workforce
needs assessment tool that hospitals use to optimize
and plan for clinical workforce needs

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1.20.4 Community Health

• A medically supervised camp program for overweight

adolescents creates a summer program
• A not-for-profit hospital conducts a community
assessment to determine how to target community
benefit activities
• A tobacco control charity designs and executes a
smoking cessation campaign
• A health research funding agency designs and launches
a new grant program

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1.20.5 Health Research

• A research team performs an evaluation of a state health

information exchange
• A cancer center develops an internship program for
aspiring medical students to assist with research studies
• A software company develops a smart phone application
to assist diabetics with self-management
• A team of medical researchers conducts a clinical trial of a
new medical device

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1.20.6 Planning

• Each department has different activities, and each

employee has a specific role and tasks they need to
complete
• Most tasks also face various external and
internal constraints, and often also depend on one
another
• Before an operation, nurses have to prepare the patient
for it, then the anesthesiologist has to anesthetize them
before the operation can begin. So if one tasks hasn’t
finished, the next one can’t start.

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1.20.7 Skill Development

• Develops both the project management skills needed to

improve health care delivery and the people
management skills to create an effective project
management environment

• Creating and managing teams, delegation, motivation,

conflict resolution, and negotiation in order to more
effectively engage stakeholders and build support for
project outcomes

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1.20.8 Obstacles

• The historical rivalry between clinical professionals and

lack of shared incentives
• Poor morale and lack of enthusiasm for the project
objective
• Misunderstanding and poor communication due to the
high diversity of disciplines

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1.20.9 Benefits

• Can reduce the costs of providing healthcare and also

manage the myriad aspects that concern the above-
mentioned stakeholders
• Designed to deliver the right output (patient care) at the
right time (now) with appropriate expenditures (optimal
use of insurance funds)
• Team must be able to grasp all the problems faced in a
hospital or other healthcare facility
• Continuing education of professional staff such as
doctors, nurses, and lab technicians

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1.21 Start- Ups

 Start ups are defined as innovative, new and active business

formation

 The start up pre-formation phase copes with transforming a

business idea to a business model and includes planning
activities and exploiting resources.

 The following phase is market launching which is when the

idea commercialization starts then it converts to the growth
phase, while the phases boundaries are blurry

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BITS Pilani, Pilani Campus
1.21.1 Phases
Phase 1 Finding a Fit for Problem/Solution
• Having an idea for a product or service that helps solving a problem in an effective
way and that is when you have a problem/solution fit and hypothesis.

Phase 2 Building Minimum Viable Product

• To test the hypothesis for the product with the least possible investment of capital
and time, thus, minimum viable product. During this phase, a proof of demand and
customer behavior learning while keeping risks at minimum. Once the minimum
viable product is out, the next step is to get customers flowing into the product.

Phase 3 Working For fit for Product-Market

• Minimum viable product has gained traction, the entrepreneur is learning and
iterating, he has customer who are paying, they purchase again and maintain the
product usage on frequent basis, maybe they are expanding the market by telling
other people. These are revealing indications of product/market fit.

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Phase 4 Scale
• Action taken towards growth phase. At this stage, a key to effective execution is to
broaden the growth team by recruiting specialists that have in depth expertise in the
main channels of the start up. At some point, some of the channels will start to
reach saturation, thus it is critical for sustainable growth.

Phase 5 Maturity
• The rate of growth may decelerate as the start up matures, but it does not stop ever.

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Different Stages of Start-up

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1.22 PROJECT INTEGRATION
MANAGEMENT
• Focuses all project effort toward the strategic plan of the
organization

• Reinforces mastery of project management and inter-

personal skills

• May require re-engineering of business management

process

– Integration of projects with strategic plan of the organization

– Integration within the process of managing actual projects

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1.22.1 ALIGNMENT OF PROJECTS WITH
ORGANIZATIONAL STRATEGY

• Need: Strategic plans are made by one group of

managers, projects selected by other and implemented
by another

• Independent decisions lead to conflicts, confusion etc.

on unsatisfied customers

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1.22.2 CHARACTERISTICS

• All the parts are inter-related. A change in one of the

parts will influence the whole
• Vision, mission, objectives and strategies need to be
prepared considering internal and external
environmental factors
• External factors: political, social, economic and
technological
• Internal factors: management, facilities, core
competencies, financial conditions

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• Implementing strategies through projects

• Selecting proposals that make largest and most

balanced contribution to the objectives and strategies

• Prioritizing projects so that resources are allocated to the

right projects

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1.22.3 INTEGRATION WITHIN THE PROCESS
OF MANAGING ACTUAL PROJECTS

• Technical side of the management process

– Planning, scheduling, controlling

• Socio-cultural side of the project management process

– Shaping a project culture that stimulates teamwork and high

levels of personal motivation

– Problem solving approach

– Effective communication sessions with stakeholders

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 BITS Pilani
Pilani Campus

ORGANIZATION STRATEGY &

PROJECT PORTFOLIO MANAGEMENT
LECTURE 2 CHAPTER 2 OF T1
TOPICS

• NEED FOR STRATEGY

• ROLE OF PROJECT MANAGER

• STRATEGIC MANAGEMENT PROCESS

• PROJECT PORTFOLIO MANAGEMENT

• PROJECT SELECTION MODEL

• MANAGING PORTFOLIO SYSTEM

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NEED TO UNDERSTAND
ORGANIZATION STRATEGY
• Identify a project’s priority and link with organizational
strategy

• Effective utilization of resources: people, money,

equipment and core competencies

• Clear organization process, best use of scare resources

and improved communication across projects using a
process that is open and transparent

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PROJECT MANAGER’S NEED TO
UNDERSTAND ORGANIZATION STRATEGY

• To make appropriate decisions and adjustments

• Modify design of product to enhance performance

• Product leader through innovation or
• Achieve operational experience through low cost reduction

• Response to delays : Will authorize overtime if firm places on

premium on getting to the market first or accept the delay if
speed is not essential.

• To understand their organization’s strategy so that they can be

effective advocates

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ROLE OF PROJECT
MANAGER
• Understand organization’s mission and strategy otherwise
project manager will tend to
– Focusing on problems or solutions that have low priority strategically
– Focusing on the immediate customer rather than the whole market
place and value chain
– Overemphasizing technology
– Solve every customer issue with product/ service
– Engaging in perfection for jobs which are not in priority
• Demonstrate senior management how the project contributes
firm’s mission
• Explain team members and other stake holders : objectives
and priorities
–

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STRATEGIC MANAGEMENT
PROCESS
• Review and define the organization mission

• Set long term goals and objectives

• Analyze and formulate strategies to reach objectives

• Implementation of strategies through projects

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MISSION STATEMENT

• Mission gives the general purpose of the organization.

• Goals give global targets within the mission.

• Objectives give specific targets to goals.

• Objectives give rise to formulation of strategies to reach

objectives

• Strategies require actions and tasks to be implemented.

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• Mission statements identify the scope of the organization
in terms of its product and service

• Every one in the organization should be aware of

mission

• It includes organization philosophy, key technologies,

public image and contribution to society

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EXAMPLES

• Provide hospital design services

• Provide voice/data design services

• Provide information technology services

• Increase share holder value

• Provide high value products to our customers

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LONG RANGE OBJECTIVES

• Objectives translate mission into specific, concrete,

measurable terms

• Objectives cover markets, products, innovation,

productivity, quality, finance, profitability, employees and
consumers

• SMART Goals (specific, measurable, assignable,

realistic and time bound)

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• Specific : Be specific in targeting an objective

• Measurable: Establish a measurable indicators of progress

• Assignable: Make the objective assignable to one person

for completion

• Realistic: State what can realistically be done with available

resources

• Time Related: State when the objective can be achieved

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ANALYZE AND FORMULATE
STRATEGIES TO REACH OBJECTIVES

• Determining and evaluating alternatives that support

objectives

• Select the best alternative

• Assessment of internal and external environments

• SWOT analysis

• Objectives or tasks assigned to divisions, departments or

individuals

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IMPLEMENTING STRATEGIES
THROUGH PROJECTS
• Implementation requires action and completing tasks

• Allocation of resources: Funds, people, technological

skills, management talents and equipment

• Requires formal and informal organization that

complements and supports strategies and projects
• Planning and control
• Motivating project contributors
• Prioritizing projects

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NEED FOR PROJECT PORTFOLIO
MANAGEMENT SYSTEM

IMPLEMENTATION GAP
– Conflicts frequently occur amongst functional
managers and cause lack of trust
– Frequent meetings are called to establish or re-
negotiate priorities
– People frequently shift from one project to another
– People are working on multiple projects and feel in-
efficient
– Resources are not adequate

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ORGANIZATION POLITICS

• Politics exist in every organization

• Influences funding and high priority

• Project selection may not be on facts and sound

reasoning but on persuasiveness and power of people
advocating projects

• Top management should develop a system for identifying

and selecting projects that reduce the impact of internal
politics and fosters the selection of the best projects.

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• Sacred Cow: Projects that powerful, high ranking official
advocates

• New Baby: Obsession with project

• Sponsored project : Selection and implementation of

product innovative projects

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RESOURCE CONFLICTS
AND MULTI-TASKING
• Problem of share and scheduling resources across
projects

• Multitasking involves starting and stopping work on one

task to go and work on another project and then return to
work on original task

• People feeling inefficient

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ADVANTAGES

• Builds discipline into project selection process

• Links project selection to strategic metrics
• Prioritize project proposals
• Allocate resources to projects that align with strategic
direction
• Balances risk across all projects
• Improves communication and supports agreement on
project goals
• Justifies killing projects that do not support organization
strategy

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