6130120t8

Proj ect Management Process

Estimation
The project managemer'lt process includes the
. Estimation: Estirnation allows the project
follou,ing main elements: manager to plan for the resources required for
project execution through establishing the number
and size oftasks that need to be completed in the
- estimate; project.
- schedule/plan;
- monitoring and control:
- documentation.

Estimation Estimation
. Work breakdown Structure (WBS): This is a . Estimate effort time for average person to undertake
breakdown of the project or a piece of work into its
task.
component parts (tasks).
. Estimate different work rates and availabilitv of
. Project constraints: Pro.iects can be resource- stafl
constrained (limited by the type of people. monetary or . Allocate resources (staff) to task.
hardware resources available) or tinte-constrained . Calculate elapsed time on the basis of the number of
(limited by the deadline).
statT, availability and work rate.
. Schedule task in relation to other tasks.

Scheduling
. Scheduling: Scheduling involves determining
when pro.ject activities shor-rld be erecuted. 0*siQn' *"**@,. COde: _>eb_: . TEsf
. The finished schedule is terured the pro.iect plan.
. Resource allocation: This activity involves
assigning a resource to each dask.
Figure: Serial relationship of aclivities
 6130/20t8

The Critical path

r'?- Code
.
,
I
: Critical path: Activities on the critical path are
termed critical activities. Any delay in these
t t
Prscgre 1- activities rvill cause a delay in the project
Design 4,,,,, h6&hrare
+ . tesr
,
completion time.
,
. Critical path method (CPM): Critical path
I
i : ,.:
Write,
diagrams show the relationship between activities
d0eumsntatl0n
in a project.
Figure Parallel relat onship of actvrltes

Monitoring and control

Ear,i*st star.t: Furatfcn Eeillesi:thish
. Monitoring and control:
. Monitoring involves ensuring that the project is
Activity number/letter
working to plan once it is started.
Activity description
. Control is taking corrective action ilthe pro"ject
deviates from the plan.
Latest start Slackfilrat t*at€s-t finish

Figure Aclivity-on node notation

Project evaluation and review

technique (PERT)

'{:
PBRT: PERT replaces the flxed activity
duration used in the CPM nrethod with a
statistical distribution which uses optirnistic.
pessimistic and most likely duration estimates.
Where t(e) is the Expected time. t(o) is the Figure Activity on node network diagram

Optimistic time, t(m) is the most probable

activity time and t(p) is the Pessimistic time.
 712012018

Di flererccs
Social Cost Benetll ArralYSis
[]N]DO I,-M
\.'rial t,r.t lrcnclit attalr:t' ,a n,,,,,,r1*,' Ii,t eralttatirr:' lrl\cslllr(lll
proiccls tl1)rr lhe poirl ol'\'ie\r ol'lhe socicl\'. I his rs trscd Pr irtlarilr' lirr l.'l hc l.lNll)O approach l. L-M approacl'r llreasurcs
clal uating ptrblic investrttents. nlcitsurcs costs and bencllts costs allcl bcncllts irr tcrnls ol'
intcrnlsol'don)cstic intcrttatiortalpriccs.
lirrrards lhc end ol-1lrc si\lics rrd itt lhccatlr sc\cnlrcs l\\o l)ltltctpll curr!'nc).
rproaclrer li'r \L I3A cntctlcLI (a) tlNll)o apl)(rtch (bt l.ittlc-Mirrlcs
)r0aclr 2. l hc tINIIX) approach 2. I.-M approach llrcastrres
luleasures costs and benefits oosts alld benellts in ternls ol'
Both the apprcaches call lbrl
in terrrs of cotrsulllption. unconlnlitted social inconle.
L Calculatrnq accounlin!: (shadorv) prices patticrilarlr tbr lbrcigtl

[Jse oI DCI'analrsts

TJNIDC) nretlrod of prolecl aPPraisal itlrolrcs liIe slallcs I)r'o.icct Monitoring

Pro.jecl ntonitoring process enstlrcs solllL' positlvc action and

I Calculalion ol-the tllancial protitabilitr ol llre Iroiccl rlrcaslrred itl
see that there is no gap between thc desired and actual
rrarkel priccs
athicrtntcrtls arld tilnlcls.

I Ol)lairrirrglhcnelt)crlclllollllcProlccltllcastttctlilllerlllsolcc0lr(,rllie Stcps in rrotlitorirlll

priccs
l.scltlllllitlll,)ltllr)flllllcll\lf(rlllllelll. llrcr,'l(rtla,,,,',,,,",,.t'att
rlcllr((l klo\!n artLI ir(((l)l(d hr lrll tllu l)aIll(lpallll! Alcllcle: \\
iiclivilics are lo be ntotlilorcd. Project tllattagcr scls tlp all cnvlrollllellt
which he crcrcises lmthorit)' attd re-sptmibil,t,es ____ _-
Adiustnrenl lbr the intpact olthe proiect olr incotne distribultotl
I Setling pertorntance slandards: The project tllonifor on behall of the
olthe proiect otr nreril gtoods and detneril proiecl nranager. sets svstenls and procedLtres tbr nlonrtorln!:
Ad.iUSlnlent lbr the inrpacl
rds ulrosc social values difler tiont tlteir ecotttllllic valttes projects. He also reviervs perfbrnlatlce in lenlls oftinle schedtrlc. bL
and qrmlitr ql lhe prc.iecl agairlst fiYelt slandatds.

3. Measurrng the progress the projcct: 'l he project lllollitor

ol PItO.ll'CT ('ON.1 ROl-
kccps a closc \\'atch on the progress ol'activitics bV the rval tr
collectingt intirrnration. l hcn tlre correctiVe actiolls call he l'i,lcLl.,,llllr,l.ll,rrll(i l)(L,,llll 11'1q11111.111,rt1t1,'titrr'illl(l I'l'rr:I(\illll'lll(
,lcr rscrl hlr:etl,,rr li'crlhlrck. 1;nric'cl lo\artls ils ullitrralc s(lllLf (ll'lLfl!tr9sl arl(l perli)rrlratrcc

.1.Rcviuring. ln case ol'non-pcrntissiblc acti\ities. hc takcs S('()1'lr ()lj ( ON l Il()1. ACl lVI l l[S
thc corrective deoision as to ho\\' tlresc should hc handlcd.
Scoperprogtcss corllI0l
5. Ileporting. 1he projcot nlonitor l'tll report to pro.lcct
.l
j911orl-... he proccss of colttrol shotrld begin al the lasl le Vel ol' WBS The
,rrirl.is.ella]s 1!ryribl.-qsk9 !1!l -- : . olthesc activitics in timc uithin the allocaled budget and as
6. Actron: A proiect t'llallager acts pronlptlv on all unresolved the clcsiretl qtralitr will Iead m lhc conlplelion of aclivities at lhe
thc tolal pro.lecl.
ISStICS, 1..\l !lS],"]9r"]l,l_WBS and _ulilmte.h-
I lrc progrcss ol'lllc cotlrplctc pnrject is llir crl br -

li, pw ew-r
| *'1*,'",
 7 t2012018

Where P,P,P,are tlte percentage progress nrade in deslSn alld engll Cost Control
plrase, procurenrent pltase and constluctioll phase respectively
W W,W,are thc respective weightage tbr the stages olthe project The objective oftoslcontrol should be to monitor all cosl conlponents
crtsure contplttiorr of thc project arrd any optintal cosl without
Perfilrtttance Control Ios'eri ng lhe p-.Llbl lll!.9,
Belbre exercisrng lhe perti)mlal)ce control, il is esscntial to
tbnrarrce paratreters and ensure right specitlcations, right selectiotl
source ot'suppliers/contractors etc. The plant design and specitications
must be made in accordance rvith perlbnlrance requirenlents
Pertbrntance analysis can be dotre by the cost and schedule

Schedule Control

Schedule control is exercisecl to ensue coupliattce rvith tirlte schedule ot

thc proiect. Schedttles are prepared to provide a basis lbr dircctiotr,
conrnrunication, co-ordinalioll anrl progrcss conlrol. Ib elrsLlrc lhe
progress ofthe projecl ol'each agencv's rvork rvhiclr helps to sick 10 tl
pro.iect schcdule
 6t3012018

Project Organization

enlployee has to work under two autliorities (bosses). The authority

Matrix 0rgrnization
the Functional Manager florvs dorvlwards while the authority ofthe
Matrix Organizatror was introdlrced in tlSA in the early 1960's. It wa Project Manager florvs across (side rvards). So, the authority flows
used lo solve nraragenrent problents in the Aerospace iltdustll'. and across Therefore, it is called "Matrix Organisatiotr"
Definition
It is used nrainly in the nlaragemeDt of large projects or produc
Matrix Organization is a combinatior of trvo or ntore velopnrent processes, drawing enrployees fronr different fiurcti
structlrres. For exanrple, Functional Organizatiott artd Prolecl
isciplines for assignmeut to a teanr \yithout removing them from the
OrgaIizatiou. respectrve posrtrons.
An organizational structure that l'acilitates the ltorizontal tlow of skills Employees in a matrix organization repofi on daylo-day performance
and information. the project or product manager whose authority tlows sidewa
The organization is divided into dillerent f'unctions, e.g. Purchase. ally) across departnental bormdaries. They also continue
Productio:r. R & D, etc. Each tirnctior has a Furtctiortal (Departmelttal reporl on their overall perfbnnance to the head oftheir departmenl
Manager, e.g. Purchase Manager. Production Marager- etc al(hority flows dorurwards (vemicaliy) rvithin his or her depafiment
addilion to a nrultiple conrnrand and control structLrre. a
The organizatiou is also divided on the basis of proiects e.g Proiect A. organization necessitates new sLrpport rrcchanisms, organizal
Project B, etc Each project has a Proiect Malager e g Proiecl culture. and behavlor patterns
Manager. Project B Manager, etc

Features of Matrix Organization

Hybrid Structure Matrix organization is a hybrid structue. This is so,
because i1 is a conrbrnation of trvo or nlore organization structues. It
conrbines firnctional organization lvith a proJect orgauization. "llrerefore,
it lras the nrerits ar)d denrerits of both these organization stmctures.

Functional Manager : The Functional Manager has authority over the

teclrrrical lhrnctiorral t aspects of tlre prolect.
Project Manager : The Project rranaget has autlroriq over the
adnrinistrative aspects of the project. He has full authority over tlte
financial and plrysical resources rvhich he can use for cornpleting the
p roj ect.
Problem of Unit.v" of Command In a r)atlix organization, tltere is a
problerr of the rmity of conrrnard. This is so, because the subordinates
receive orders tlon trvo bosses viz., the Project Manager atd the
Frmctional Manager. This rvill resull in confusior, drsordeq indiscipline,
inefticiency, etc. AII this rvill reduce the productivity and profitability
the project.
 6t30120t8

Merits ol Matrix Organizatiotl

ion: ln a Matrix organisatio!], there is a specralisatlon
project uranager concentrates on the adminjstrative aspects of the pl atrix organization allows teafi members to sllare infonration more
while the t'Lrnctional nlanager corcerltrates on the technical aspects of the across task bormdaries
proJecf.
1,./ficrcnt u.\c of rcsotrrcas; lndividuals and as rvell as equipment can
Suitability: Matrix organisatiotl is suitable fbr nrtrlti-prolect across projects
organisations. lt ts mainly used by large constrlctioll companies, thal
construct huge residential and commercial projects in different places at
Specialization: Matrix management allows lor specialization that
increase depth of knowledge and allow professional developmenl
the same tinie. Eacll project is looked after (handled) by a
career progression to be managed.
manager. He is supported by nlally tinlctioual nlalagers md e
the conrpany l'rolact Intctrutton; There is a clear and rvorkable mechanisnr for
coordinating rvork across tbrctrotlal lines.

Inpnt ctl tnformution flow; Conmulication ts enhanced both laterally

and veflrcally.

t;lexibilily: Frequent contact between lrembers from differenl

depa(ments expedites decision{raking and adaptive resources.

Di.rciplrnc rclct1lnn. FullctioDal expens and specialists are kept even t)ilil cul I i es i n n on i I o n n g u nd utnt rol I i ng: Multi-discipline involvement
though prolects conte and go. heightens infonnation dentands attd nrakes it dilllcult to evaluate
lnprovctl Moltvuttql and co111nliltl\ct1l. Involvemellt ol members responsibtlity.
decision-making enhauces commitnleut and rrotivation. Iixce,rsiva ovcrhearl.r: Double ltlallagement is created by crealing projecl
nranagers necessarily increases overheads.
Demerits of Matrix Organizatioll
lispcricncctl Strc.ss: Dual reporlilg relatiolls contribute to authority
onflrcting loyalties: The disadvantage of ntatrtx nlanageurent Is that ambiguity and
nployees can become coniused dLle to conflicting loyalties. ole contlicl
Power stnrgglc. Cortflicts occrrr becatLse boundaries of authorrty and
responsibility overlaP

Haightcnad ( onfl icl: Cotrpetitioll ovet scarce resources especially when

personnel are being shared across pro.iects.

Slo|| rcaction tina: Heavy emphasis on consultatiotl and shared

decision-making retards timely decision+aking.

Situations when Matrix organization is preferred

1. Ll/hen tharc t.\ slrong pret.\Lte /ruru tht anrironncnl For Exantple: Project Leadership
intense irltenral conlpetition may dictate the sort ol strong nlarketing
thrtrst that is best spearheaded bv tirnctional depalltreDt b btLt the Pro.lect leadership is a dilficLrlt flunctional, psychological and
diversity ofa company's product nlay argue Ibr prodLLct departments' politieal process
2. Whcn lurye untunl of tttfutrnutton nacdacl ttt hc pnta.;saLl. C
Iateral relationship by nteans of a nlatrix is one etleclive way to increase
the organizatiorl capacity to process infbrnration,'

2
 6t30120r8

specific leadership requirements for projects are: Implementing a specific project organisation: Within a secure
framework, innovation and creativity can also create chaos. Organising
Dealing with complexity: What is part of the proiect assignment appropriately can linrit the chaos and ensuing uncertainty with guiding
what is not? Which aspects do I need to take into accoult? what structures: phases, work steps, result specifications, defined procedures,
I need to consider liom a business, personal, organisal methods, tools and reporls, as well as rules and standards for teamwork
ional and technological perspective? and discussions.

aping innovative processes: How do I engender a creative projecl Leading an interdisciplinary team: How do I bring the offen-
How do 1 ensure that the people involved will no1 unfamiliar employees together as a team as quickly as possible?
new solutions? What support is available to the project during di should take on which functions and tasks? How do I promote slnergy
phases? effects? How do I best involve part{ime employees? What role should I
caused by take when managing specialists?
Dealingwith uncertainty: How do I respond to uncertainties
ity and innovation witlrin the team? Do I go for "revolutionary" Dealing with structur€ and creativity: The key question for project
or "evolutionary" solutions? Whom do I rteed to infomr and how? How is this: How do I balance structure and freedom so thal
do I organlse development and introductory phases? Horv do I deal with reativity flourishes and chaos diminishes? Order rs the love ofreason;
unclearly fonnulated goals, nerv requiremerlts and delaying tactors? haos is the passion of fantasy.