Subject: Project Management

Unit 1-Syllabus
Introduction: Projects, Project management, Objectives and Importance of Project management,
Tools and Techniques for Project management, Project team, Roles and Responsibilities of
Project manager, Determinants of project success.
Project life cycle: Phases of project life cycle, Classifications of projects
Project Organisational Structure-Forms of Organisational Structure –Functional organization,
Project organization, Matrix oranisation

Unit 1

Project
Project means planned set of interrelated tasks to be executed over a fixed period and within
certain cost and other limitations. Projects can include a variety of different things, such as
designing new software to increase efficiency, building a bridge, creating a new product, or even
expanding sales into a new territory.

Project management
Project management is when a company applies its human and financial resources to plan and
execute a specific task. There are three stages.
The first stage is project initiation. The company works with its clients to gather information
The next stage is project planning. In this stage, a written project charter is drafted. Example
using PM tools, such as PERT and CPM.
The third stage of PM is the execution stage. This is the stage in which the resources are
distributed. Relevant project information and assignments are given to team members.
Characteristics of a project
1. Project has an owner, who, in the private sector, can be an individual or a company etc., in the
public sector, a government undertaking or a joint sector organization, representing a
partnership between public and private sector.
2. A project is typically for a customer.
3. The project is temporary in nature. It typically has a defined start and a defined end-point.
4. The project will have a unique set of requirements that need to be delivered within the
boundaries of this project.
5. Project is planned, managed and controlled by an assigned team. The project team is planed
within the owner’s organisation to achieve the objectives as per specifications.
6. Implementation of the project involves a co-ordination of works/supervisions by project
team/manager.
7. Project involves activities to be carried out in future. As such, it has some inherent risk and, in
reality, the process of implementation may necessitate certain changes in the plan.

8. Project involves high-skilled forecasting with sound basis for such forecasting.

Objectives of Project management

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There are certain objectives of project management that every manager must achieve.  These are
as follows:

1. Successful development and implementation of project activities

A project manager must ensure that a project undergoes all the important phases of project
management. These phases involve defining projects’ goals; initiation, planning and design of
the project; execution of the planned activities; monitoring activities; checking as well as
correcting project bottlenecks and controlling the activities. If the above phases are executed
successfully with no interruption, then the project is a success.

2. Optimal utilization of inputs

For better efficiency, all the pre-defined objectives of a project should be achieved through
optimal consumption of necessary inputs. Optimization can not only bring perfection in the
project but it saves cost and time.  It advances the procedures such that sustainability can be
maintained until project completion.

3. Ensuring that project caters to client’s needs and objectives

A project manager must ensure that importance is given to the client’s vision along with the
accomplishment of project goals. If the expectations of the clients are fulfilled in an efficient
way, it will not only lead to unbeaten collaboration, but it adds value to the client. In this way,
the client may collaborate for his/her future projects.

4. Effective communication It is well-defined communication which ensures achievement of the

designed goals. For a successful project, even little information matters and needs to be
conveyed efficiently to every team member. Once the necessary information is articulated to the
respective team members, constructive feedback is always expected by the project manager. In
this way, communication ensures the seamless execution of the project.

5. Effective guidance and supervision

Team efforts lead to either success or failure of a project. A project manager serves as the leader
of the team. Thus, it is his duty to ensure proper supervision of the team. A project manager
guides his team in the right direction and ensures the accomplishment of end goals.

6. Achievement of the project’s goal within the given constraints

A project manager needs to be aware of the scope of the project, timelines, expected quality and
expected budget of the project. Completing the required project within the given constraints adds
to its performance and success. However, at times, there are certain constraints that limit the
effectiveness of a project. So, it is the duty of a project manager to find solutions and ensure that
the project is successful.

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 7. Financial Objectives

Financial objectives usually have direct impact on company’s financial state and are measured in
monetary terms. Financial objectives of the project is to save or make money, or even to avoid
costs, that this should be properly recorded in the project objectives.

Generally, tracking and measuring project expenses is essential because spending more than
what is planned could cause harm to the overall project and could obstruct its success.

8. Quality Objectives
There may be some quality objectives, such as delivering to certain internal or external quality
standards. The quality objectives of project also manifest themselves in the form of process
improvement projects that aim to reduce defects or increase customer satisfaction somfehow.
9. Technical Objectives
The technical objectives often encompass activities and efforts related to different kinds of
technology that is required for a successful closure of a certain project. Companies already have
technology in use so a technical objective could be to upgrade existing technology, install new
technology or even to make use of existing technology during the deployment of the project.

10. Performance Objectives

The performance objectives are associated with the improvement of products, services or
processes. Performance objectives can be related to how the project will be run, so they could
include things like delivering to a specific budget figure or by a certain date, or not exceeding a
certain number of resources. Project managers could also have performance objectives related to
achieving a particular project scope, such as the number of requirements that will be completed.

Importance of project management

1. Strategic Alignment
Project management is important because it ensures what is being delivered, is right, and will
deliver real value against the business opportunity. Good project management ensures that the
goals of projects closely align with the strategic goals of the business.
2. Leadership and direction to projects
Project management is important because it brings leadership and direction to projects.
Without project management, a team can be like a ship without a rudder; moving but without
direction, control or purpose. Leadership allows and enables a team to do their best work. Project
management provides leadership and vision, motivation, coaching and inspiration to the team to
do their best work.
3. Removes confusion and conflicts
Project managers not only serve the team but also ensure clear lines of accountability. With a
project manager in place there’s no confusion about who’s in charge and in control of project and
what is going on in a project. Project managers enforce process and keep everyone on the team in
line too because ultimately, they carry responsibility for success of the project.
4. Clear Focus & Objectives

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Project management is important because it ensures there’s a proper plan for executing on
strategic goals. Project management deals with planning, scheduling, controlling and monitoring
the complex non-routine activities that must be completed to reach the predetermined objectives
of the project. The elements of project management control include programmed objectives,
policy restrictions, resource constraints, government regulations, process implementation, review
of output, feedback, and revision of objectives.
5. Global Competition
In the globally competitive today’s market, customers want cheaper products and services
with better quality. This had led to the emergence of the quality movement across the world in
International Standards Organization certification requirements for doing business. Quality
management and improvement essentially requires project management. As the basic elements of
project management concentrate on time, cost and quality, project management has become style
of managing business.
6. Increased Customer Focus
Increased competition has increased the expectation of customers. Customers expect customized
products and services instead of generic ones. The customization of products and services
required better understanding of the customers’ needs by project team members. The customers
are more aware and their changing needs are to be taken into account to survive in the market.
7. Realistic Project Planning
Project management is important because it ensures proper expectations are set around what can
be delivered, by when, and for how much. Effective project managers should be able to
negotiate. Project managers create a clear process, with achievable deadlines, that enables
everyone within the project team to work within reasonable bounds.

Tools and Techniques for Project management

1) Critical Path Method

The longest duration for the completion of the project is the critical path of the project. The

critical path determines the total duration required for the completion of the project. The amount

of time that activity can be delayed without delaying the project is called slack time & the

activity is called Non-Critical activity. Thus, CPM is a deterministic model that is both time &

cost-driven.

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 The critical path of the project determines the following four parameters for each activity,

which are calculated using the expected time for relevant activities:

 EST – Earliest Start time, EFT – Earliest Finishing Time,  LST – Latest Start Time,

LFT – Latest Finishing Time

2) Program Evaluation and Review Technique (PERT)

Project managers use PERT as a tool to help them determine how much time it’ll take to

complete a project. This is an essential step toward developing an accurate schedule.

PERT works on a PERT chart, which maps three-time estimates. One is the optimistic time, or
the least amount of time expected for a task to be done. Next is the pessimistic time, or the
maximum amount of time it’ll take to complete a task. Finally, there’s the most likely time,
which is a reasonable amount of time to complete the task as long as there are no delays,
bottlenecks, etc.

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Once these estimates have been recorded, the project manager then calculates average time using

the formula -(optimistic time + 4 x most likely time + pessimistic time) /6.

3) Gantt charts

The most commonly preferred tool for the Waterfall model is the Gantt chart which

visualizes subtasks, dependencies and project phases as it goes through the project life

cycle. A Gantt chart is a bar chart that illustrates a project schedule. It was designed and

popularized by Henry Gantt around the years 1910–1915. Modern Gantt charts also show

the dependency relationships between activities and the current schedule status. This

chart lists the tasks to be performed on the vertical axis, and time intervals on the

horizontal axis.  The width of the horizontal bars in the graph shows the duration of each

activity.  Gantt charts illustrate the start and finish dates of the terminal elements and

summary elements of a project.  Gantt charts help in viewing the start and end dates of

the project in a single simple view. On a Gantt Chart, we can see various things like the

start date of the project, the finish date of the project, what are the project tasks, who is

working on each task, how long would each task be, when the tasks start and finish and

how tasks are grouping together, overlapping and linking with each other.

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 Project team
The project team includes the project manager and the group of individuals who work together
on a project to achieve its objectives. It consists of the project manager, project management
staff, and other team members who are maybe not directly involved with management but carry
out the work related to the project. This team consists of people from different teams with
precise subject matter knowledge or with the required skill set to carry out the work of the
project. The structure and characteristics of a project team usually vary, but the project
manager’s role as the leader of the team remains constant. However, the amount and nature of
authority the project manager has over the members can differ.

Project Team Member

Project team members are mainly the people who work on various phases of the project. They
could be in-house staff or external consultants and may be working on a full-time or part-time
basis. Their roles can differ according to each project.
Roles and Responsibilities of Project manager
The project manager plays the chief part in the project and is responsible for its success and
quality. His job is to make sure that the project proceeds and completes within the specified time
frame and the ascertained budget, and accomplishing its goals at the same time. Project managers
ensure that resources are sufficient for the project and maintain relationships with contributors
and stakeholders.

A project manager is entrusted with various duties and responsibilities like:

 Developing a project plan

 Managing deliverables according to the decided plan
 Leading and managing the project team

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 Deciding the methodology used in the project
 Establishing a project schedule and determining each phase
 Assigning tasks to project team members
 Providing regular updates to upper management

Project team member roles and responsibilities can be summed up as the following:

 Contribute to overall project objectives

 Complete individual deliverables
 Provide expertise
 Work with users to determine and meet business needs
 Document the process

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 Role of Project Sponsor

The project sponsor is the driver and in-house champion of the project. He has a vested interest
in the successful outcome of the project. They are typically members of senior management –
those with a stake in the project’s outcome. Project sponsors work closely with the project
manager. They participate in high-level project planning. Also, they often help resolve conflicts
and remove obstacles that occur throughout the project, and they sign off on approvals needed to
advance each phase.

Project sponsor roles and responsibilities

 Make key business decisions for the project

 Approve the project budget
 Ensure availability of resources
 Communicate the project’s goals throughout the organization

Role of Business Analyst

The business analyst recognizes requirements of the organization and suggests solutions to the
problems. In a project team, they make sure that the current project’s objectives can solve
existing problems and add value to the organization. They can also help make the most of project
deliverables.
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 A business analyst is entrusted with:

 Helping in defining the project

 Collecting requirements from business units or users
 Documenting technical and business requirements
 Ensuring that project deliverables meet the requirements
 Testing solutions to validate objectives
Composition of Project Teams

Project team’s compositions may differ based on organization’s culture, scope, and location.

Some examples of basic project team compositions are given below:

Determinants of project success

1) Adequate Planning

The team and the stakeholders of the project should always know from the beginning in which
direction the project is heading. All projects must have a plan with enough details. A good plan
provides the following benefits:
 A valid and realistic timescale.
 Allows accurate cost estimates to be produced.
 Details resource requirements.
 Keeps the project team focused and aware of progress.
Planning details the resource requirements and acts as a warning system.

2) Strong team

Without the right team in place, any project, whether big or small will fail. Thus, the project
staff, expert resources, suppliers and all stakeholders involved must have commitment to the
group, share similar visions for the projects and strive for overall success.

Project managers can face serious trouble if inadequacy is present within the team. It is important
to assign the right people to each aspect of the project and make sure that they are working well
together. Additionally, the entire team should be completely informed and involved in order to
have the most successful outcome.

3) Development and Management of a schedule

A Schedule is the central tool to managing a project’s activities and keeping on track. The
following should be done in this regard.

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 Develop a schedule that documents the tasks that need to be done to complete all of the
deliverables outlined in the scope. 
 Assign names and due dates to each task. 
 Highlight tasks that are milestones from the Scope. This will allow better tracking and reporting
of those milestones.
 Note items that are on the critical path (these are tasks that if delayed will delay the rest of the
project).  Special attention should be paid to these tasks to keep the project on time.

4) Proper Risk Management

It is a known fact that projects do not go exactly as planned. Some projects fail and
some fail spectacularly due to risks that arise during a project.

The project manager should make sure all the stakeholders are well informed about the
risk so that if something happens, they can resolve the problem in an efficient manner
with the plan already set in place. This gives the team confidence when facing project
risks and helps the customers feel secure with their project’s progression.

5) Clear and shared purpose and goals. Everyone involved must agree on the answer to the
question “Why are we doing this?”
6) Customer orientation. This means, first, getting everyone to agree about who the customer is
and what the customer wants, and keeping this in the forefront as the project proceeds.
7) Adequate support and resources. Adequate support and resources are also determinants of
project success.

8) Well defined Project Scope

The project Scope should include what is and what is not included in the project. 

9) Training Program
Proper training is essential to assure that end users are prepared to work on the project. There
may be users who are not familiar with computer systems or the new technology, so training
should be given.

10) Communication
Communication is one of the key items recognized as leading to a successful project.  
11) Team meetings- Meetings should occur weekly or as needed.  Even a short conference call
meeting can be effective to get everyone together. Those involved will have an opportunity to
state something that may otherwise be overlooked.
12) Monthly or weekly Status Reports-These should be completed and shared with all
involved individuals.  The status report should include: status of milestones, recent work

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completed, what work is to occur next, high-priority issues, etc. Users should be informed of the
progress of the project as it evolves. 

Project Life Cycle

This refers to a process that is followed by nearly all project managers when moving through
stages of project completion. The Project Life Cycle provides a framework for managing any
type of project within a business. 
Stages/Phases

1) Project development and preliminary engineering-At this point a need or opportunity is

identified and an agency begins to develop a conceptual plan for a new product or service. This
is the stage at which the options are considered and the pros and cons evaluated.  The options for
the new product can be evaluated based on cost, quality, satisfaction criteria, etc.  Usually some
sort of criteria are established at the beginning of the project that can be used to guide project
decision making.
2) Bidding and contract negotiation-During this phase the project is put out to tender.  This
phase includes advertising, answering of bidder questions, holding pre-tender meetings, and
opening of the tenders.
3) Engineering design- Once the exact product is chosen, detailed design can begin.  The end
result is usually a set of drawings and/or a tender package.  At this stage all of the issues are
investigated and a complete engineering analysis is performed.
4) Purchase and procurement- In terms of project management, the procuring activity involves
exploring the most cost-effective way of providing project teams with needed products and
services, within available funds and time frames. 
5) Construction-At this stage the construction implementation work takes place.  Because of the
engineer’s responsibility to ensure adequate construction/implementation of the work as
designed, there is usually some sort of engineering oversight.  Engineers also tend to be focused
on the final product configuration, not necessarily constructability, so the engineer is often
involved to answer questions and ensure a smooth process.
6) Testing and commissioning-Once all of the execution phase is complete, the final product is
tested and commissioned.  All of the outstanding funding and administration issues are
completed, and final project documentation is achieved.

Classification of Projects
The projects can be classified into various types:

1) Based on Ownership
a) Public Projects: These are the projects which are done by public projects. E.g. Construction
of Roads & Bridges, Adult Education Programmes, etc.
b) Private Projects: These are the projects which are undertaken by private enterprises. Eg.
Any business related projects such as a construction of houses by real estate builders, software
development, marriage contracts, etc.

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c) Public Private Partnerships: These projects which are undertaken by both government and
private enterprises together. E.g., Generation of Electricity by Windmill, Garbage Collection, etc.

2) Based on Investment
a) Large Scale Project: These projects involve a huge outlay or investments, say, crores. Eg.
Real Estate Projects, Road Construction of manufacturing facilities, Satellite sending projects of
ISRO, Unique Identification Number project of India, etc.
b) Medium Scale Project: These projects involve medium level investment and are technology
oriented. Example: Computer industry and electronic industry.
c) Small Scale Project: These projects involve only a lesser investments. E.g., agricultural
projects, manufacturing projects.
3) Based on Research in Academia
a) Major Projects: In academia, the major projects are those projects which involve more than
one year to 3 or 5 years and minimum funding of ` 3 lakhs in case of social sciences and ` 5 lakh
in case of sciences.
b) Minor Projects: The minor projects in academia are those projects which will be completed
within a year and have a maximum funding of ` 1 lakh in social science and ` 3 lakh in case of
science

4) Based on Sector
a) Agricultural Projects: These are the projects which are related to agricultural sector like
irrigation projects, well digging projects, manuring projects, soil upgrading project, etc.
b) Industrial Projects: These are the projects which are related to the industrial manufacturing
sectors like cement industry, steel industry, textile industry, etc. For example, technology
transfer project, marketing project, capital issue project like IPO, etc.
c) Service Projects: These are the projects which are related to the services sectors like
education, tourism, health, public utilities, etc. For example, adult literacy project, medical camp,
general health check up camp, etc
5) Based on Objective
a) Commercial Projects: These projects are undertaken for commercial purpose and return on
investment is expected out these projects. For example, Toll roads based on BOLT – Build Own
Lease Transfer Model or BOOT – Build Own Operate and Transfer Model, Product Launching
project.
b) Social Projects: These projects are undertaken for social purposes and welfare of the people
is the aim of these projects. These projects are undertaken either by the Government or Service
oriented Non-Governmental Organizations. For example, Polio immunization Project, Child
Welfare Projects, Adult Literacy Projects, etc.
6) Based on Nature
a) Conventional Projects: These projects are traditional projects which do not apply any
innovative ideas or technology or method. For example, conventional irrigational projects,
handicraft projects, etc.

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 b) Innovative Projects: These projects involve the use of technology, high R&D, development
of new products and services. eg., renewable energy research or development of the capacity of
optical fiber;
7) Based on Time
a) Long term projects: These projects take a very long duration to complete. These projects are
run for many years till the objective is reached. For example, Eradication of diseases like Polio,
Filaria, etc.
b) Medium term projects: These projects take a medium term duration like 3 to 5 years. For
example, Modernization projects, computerization of operations, etc.
c) Short term projects: These projects are executed within a short period, normally within a
year. For example, Pond cleaning project, health camps, software development, etc.
d) Very short term projects: By very name you can understand that these projects are
completed within a very short period, say, within a day. For example, product launch project.
8) Based on Functions
a) Marketing Projects-Theseare taken up in the area of marketing a product or service of an
organization. E. g. Marketing road shows, implementing a marketing strategy, etc.
b) Financial Projects-These are undertaken to raise finance or restructure capital structure. For
example, IPO, Project, share split project, etc.
c) Human Resources Projects-These are undertaken in the area of human resources of an
organization, e.g., Induction training project, campus recruitment project, etc.
d) IT and Technology Projects-Theseare undertaken in the area of IT companies or IT related
requirement of any organization, e.g., development of Human Resources Information System,
Marketing Information System, etc.
e) Production Projects-These are undertaken in the area of production or operations. For
example, overhauling projects, preventive maintenance projects, getting an ISO certification, etc.
f) Strategic Projects-These are taken by the organizations to executive a strategy, for example,
mergers and acquisition projects, Core Banking Solution project introduced in banks, etc.
9) Based on Risk
a) High Risk Projects: These projects involve a very high degree of risk, for example, nuclear
energy project, thermal energy project, satellite projects, etc. If the project is not handled
properly, the effect will be very adverse. Thus, high precautionary measures are to be taken to
commission these projects.
b) Low Risk Projects: These projects do not involve risk and they are carried out in the normal
course of action. For example, road and bridge construction, house construction.
10) Based on Output
a) Quantifiable projects: In these projects, the benefits / goals of which are amenable for
measurement. Quantitative expression of the outcomes is possible. It is easy to understand and
appreciate quantitative projects as it is easy to communicate them. For instance, enterprises
engaged in the production of various goods and services come under this category.
b) Non-quantifiable projects: In these projects quantification of the benefits / outcome may not
always be possible as the impact of the project is spread over a longer period. The benefits
accrue to the intended beneficiaries in the long run. Projects concerning health, education, and
environment fall under this category.
Project organization
An English author Harrison defines a project organization as the arrangement and relationship

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between client company, contractor, and sub-contractor organizations and their respective
project managers who are all involved in undertaking a project in a particular environment.
Project organization must have specific objectives and a formal structure of authority with some
persons in leadership and others in sub-ordinate roles, division of work which entails
specialization by members in various activities or functions.

Forms of project organizations

The traditional form of organization structure is hierarchical where power flows vertically and
upward, and employees are departmentalized. All employees follow a chain of command. For
instance, the CEO has final say on operations in all divisions, but each department has a
manager who runs day-to-day operations and ultimately reports to the CEO. The
traditional/classical form of organization is not suitable to the projects. This is due to the
following inherent features of projects.
• Project is a non-routine, non repetitive activity.
• Project work is often plagued with uncertainties.
• It involves co-ordination of efforts of persons.
• The relationships in the project setting are dynamic, temporary and flexible.
Hence, there is a need for entrusting an individual or group with the responsibility for integrating
the activities and functions of various departments involved in the project work. Depending on
the authority that is given to the person responsible for the project, the projects organization may
take one of the following forms:
1) Line and staff organization
2) Divisional organization
3) Matrix organization
1) Line and staff organization
In this form of project organization, a person is appointed with the primary responsibility of
coordinating the work of the people in the functional departments. Such a person is commonly
called as project coordinator/project manager who acts essentially in a staff position to facilitate
the co-ordination of line management in functional departments.
He serves only as the focal point for activity control, that is, a center for information. The project
manager does not have authority and direct responsibility of line management. The project
manager in this position does not make any decision for the project, nor does he provide any
staff service to the functional departments who make all the decisions relating to the project. The
project manager merely collects information and communicates the same to the chief executive.
This arrangement may be chosen by a chief executive who wants to directly control the project
but cannot devote much time to keep track of details. The project manager may find it difficult to
exert leadership and feel unsure of his role due to deprival of formal organization authority. He
has to influence others only through his professional competence, closeness to top management
and persuasive abilities.
This arrangement may work for small projects. It cannot work for large projects even if the
project manager is provided with supporting staff since the real person, who in this arrangement
wields (hold and use) authority and can therefore co-ordinate and expedite the project, is the

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chief executive who, as stated earlier, may not have much time for the project.
2) Divisional organization
Under this form of project organization, a separate division is set up to implement the project.
Headed by the project manager, this division has its complement of personnel over whom the
project manager has full like authority. In effect, this form of organization implies the creation of
a separate goal oriented division of the company with its own functional departments.
This form of organization facilitates the process of planning and control, brings about better
integration of efforts and strengthens the commitment of project-related personnel to the
objectives of the project. The project manager, in this case, will be a specialist in project
management tools and techniques, and in view of his superior knowledge relating to scheduling,
budgeting and information systems, he is in the best position to advise other functions. This
arrangement, however, would not entitle the project manager to issue instructions to the work
force however senior he may be in the organizational hierarchy. Any instruction has strictly to
come from the functional base irrespective of whether it relates to schedule, budget, information
system or co-ordination with other functional groups or outside agencies.
3) Matrix organization
The line and functional forms of organization is conducive to an efficient use of resources but
is not suitable for an effective realization of project objectives. The divisional form of
organization is suitable for an effective realization of project objectives but not conducive to an
efficient use of resources. The matrix form of organization seeks to achieve the twin objectives
of efficient use of resources and effective realization of project objectives, the cost of greater
organizational complexity, of course. A competent project manager will succeed in acquiring
some authority because of his sheer identification with the project. When this arrangement of
sharing authority between a project manager and other functional manager is formalized, we
have an organizational form, which is known as matrix organization.
The main feature in the matrix operation is that, the parties involved in the matrix will have a
common concern as well as a specialist concern. As long as the parties respect the specialty of
the others and look to one another for help and support for the common cause, a matrix will work
extremely well.

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