PROJECT

MANAGEMENT
UNIT 1
INTRODUCTION
 Introduction
• Project:
1. A job that has a beginning and an end (Time)
2. A specified outcome(Scope)
3. At a stated level of Performance (Quality)
4. At a budget(Costs)
 Introduction
• Project management involves

Planning and organization of to move a specific task, event,

a company's resources or duty towards completion

include personnel, finances, one-time project or an

technology, and intellectual ongoing activity
property.
 Why do companies use PM?
• To handle projects effectively in an organization.

• To plan and assess resource needs for the project and

allocate the right resource at the right time

• To estimate project cost and make proposals

• To plan & schedule activities in a project

• To assess risk and failure points and make backup plans

• To lead a project team effectively and communicate well

among team members.
 Objectives

Two of the most widely used Objectives

1. SMART Goals

2. OKR Framework
 1. SMART Goals
• answering the questions “what, why,
Specific when, who, where”

• should have metrics and specific values

Measurable
• goals should be something that it is
Achievable possible for the team to achieve

• Objectives should fit the focus and long-

Relevant term plan of your organization

• achieve your project objectives within a

Time Limited certain time-frame
 2. OKR Framework
• It was developed at Intel and is now used by technology giants
such as Google, LinkedIn and Oracle. The process of setting OKRs
is as follows:

Objectives Key Results

Highlight 3-5 objectives for your Under each of these, highlight 3
team or organization. These results which will define
should be ambitious yet also success. These should be easily
achievable and time-bound. quantifiable and difficult, at the
limits of what you believe is
achievable.

Once you have set these, at the end of the set time span you measure how
successful you were at achieving each of the Key Results.
 Importance of Project Management
1. Strategic Alignment : Good project
management ensures that the goals of projects
closely align with the strategic goals of the
business.
2. Leadership : Project management provides
leadership and vision, motivation, removing
roadblocks, coaching and inspiring the team to
do their best work.
3. Clear Focus & Objectives : it ensures there’s a
proper plan for executing on strategic goals.
 Importance of Project Management
(Cont.)
4. Realistic Project Planning : it ensures proper
expectations are set around what can be
delivered, by when, and for how much.
5. Quality Control : the quality of whatever is
being delivered, consistently hits the mark.
6. Risk Management : risks are properly
managed and mitigated against to avoid
becoming issues.
 Importance of Project Management
(Cont.)
7. Orderly Process : it ensures the right people
do the right things, at the right time – it
ensures proper project process is followed
throughout the project lifecycle

8. Continuous Oversight : it ensures a project’s

progress is tracked and reported properly.
Phases of Project Management
Identification

Formulation

Approval

Selection

Implementation

Management
 Project Management Tools

1. Planning and 2. 3. Risk

Scheduling Communication Estimation

4. 5. Project 6. Resource
Documentation Report Management

7. Baseline
 Project Management Techniques
• Ranges from traditional to innovative ones

• Choosing technique depends upon project

specifics, its complexity, teams involved and
other factors
 1. Traditional Technique
• Classic approach to project management

• Includes preparing a plan of upcoming work,

estimating tasks to perform, allocating
resources, providing and getting feedback and
monitoring quality and deadlines
 2. Waterfall technique
• Also considered as classic approach

• Based on the sequential performance of tasks

• The next step starts when previous step is accomplished

• Gantt charts are often used to monitor the progress and

performed steps

• Used for complex projects where detailed phasing is

required
 3. Agile Project Management
• Value driven approach

• Enable project managers to deliver high priority

and high quality work

• Evaluates time and cost as primary constraints

• Breaks down projects into small pieces that are

completed in work sessions that run from design
phase to testing and quality assurance
• Sessions are called sprints
• Includes techniques such as Scrum, Kanban,
etc.

Plan

Improve Do

Feedback
 4. Rational Unified Process
• Framework designed for software
development teams and projects

• Implementing an iterative development

process, where feedback from product users is
taken into count for planning future
development phases.
• RUP is used in software development projects
where end user satisfaction is the key
requirement

• Divides the development process into 4

phases:
1. Inception
2. Elaboration
3. Construction
4. Transition
 5. Program Evaluation and Review
Technique
• Involves complex and detailed planning and visual
tracing of work results on PERT Charts

• Used to calculate the amount of time it will take

to finish the project.

• Helps to create different time estimates

– The shortest possible time each time will take
– Most probable amount of times
– The longest amount of time each task may take
 6. Critical Path Technique
• More innovative approach and derived from
PERT and Critical Path Methods

• Less focused on rigid task order and

scheduling and it prescribes more flexibility in
resource allocation

• It is suitable for those projects where

resources are limited
 7. Extreme Project Management
• It focuses on the human factor in project
management rather than on formal methods

• Used for large, complex and uncertain projects

where managing of uncertain and
unpredictable factors are required
 Leadership in PM
• It can be defined as a style of behavior
designed to integrate both the organizational
requirement and one’s personal interests into
the pursuit of some objective

• Hence we discuss the following-

1. Project team
2. Project manager
 1. Project team
• Group of individuals teamed together

• Purpose is to achieve a specific business task or goal

• Can be created on a temporary basis or for a very long

duration

• Skill individuals can be either from different functional

areas or a similar one

• Can create a team out of existing employees and can hire

new people to manage the project
 2. Project Manager
• Person who is responsible for leading the
project

• Ensure that the project is completed within

the specified deadline and gets delivered to
client without any flaws

• The responsibilities of a project manager can

vary from organization to organization
Responsibilities of Project Manager
• Planning-
– defines the project scope and accordingly
develops a project plan and schedule
– Develops efficient procedures and policies
– Keeps in mind specified time and a given budget
• Organizing-
– Gives structure to the project team
– Assigns roles to the team members and set
deadlines to achieve targets
• Leading-
– coordinate with different people to ensure that
the project goes on in a smooth manner
– Keeps regular check on the project developments

• Monitoring-
– Ensure that the resources are used efficiently and
project is completed within the given time frame
– Can use following 3 steps:
Measure Evaluate Correct
• Communicating-
– It doesn’t only involve team members but also
sponsors, clients, external vendors and other stake
holders.
– Project manager should share the vision and
objectives of the project with the team members
– Should give and take regular updates and conduct
status meeting
• Managing Risks-
– Project manager should show competency to
manage risks
Determinants of Project Success

Comprehensive Good Manager Open

Planning and team Communication

Top level
Well defined
management Sufficient funds
Objective
support

User Use of
involvement Technology
PROJECT LIFE CYCLE
 Definition
• Describes the stages a project goes through as it
progresses from start to finish

• It brings order and structure to the project

Cost- Curve in Project Life Cycle
Characteristics of Project Life Cycle
• Cost and staffing levels are low at the start,
higher towards the end, and drop rapidly as
project draws to conclusion
• The probability of successfully completing the
project is lowest and hence risk and uncertainty
are highest
• Cost of changes and error correction generally
increases as the project continues
• In the beginning phases can be overlapped to
save time and to have fast tracking on the life
cycle
Characteristics of Project Life Cycle
• Only three phases are always certain to be
performed
– Conceptualization
– Intermediate phase
– Closure

• Cost and staffing level is defined for every single

phase

• Projects may have sub projects

Phases of Project Life Cycle
 1. Initiation Phase
Develop a Business case

Undertake a Feasibility Study

Establish the Terms of Reference

Appoint the Project Team

Set up a Project Office

 2. Planning Phase
Create a Project Plan
Create a Financial Plan
Create a quality plan
Create a risk plan
Perform stage gate
Contact the suppliers
Create procurement plan
 3. Execution Phase
1. Build the deliverables
2. Monitor and control
3. Time management
4. Cost management
5. Quality management
6. Change management
7. Risk management
8. Issue management
9. Procurement management
10.Acceptance management
11.Communication management
 4. Project Closure Phase

Perform Review
Project Project
Closure Completion
 Classification of Projects

Quantifiable and
Techno-Economic
Non-Quantifiable Sectoral Projects
Project
Projects

Financial
Institution Service projects
Classification
 Turnkey Projects
• It is a single point responsibility

• This responsibility is with respect to-

– Time
– Performance parameters
– Project cost

• There are certain pre-project and post project

activities which have to be carried
• It is a contract under which a firm agrees to
fully design, construct and equip a
manufacturing/ business/ service facility and
turn the project over to the purchaser when it
is ready for operation.
 Advantages and Disadvantages
• Advantages
– Great way to earn economic returns from the asset
– Contractor’s responsibility forces him to give the good
result
– Contactor has a fixed price
– Eliminates extra expenses
• Disadvantages
– High in price
– No client interference
– Difficult to find the specialist for particular project
Generation and Screening of
Project Ideas
 Introduction
• The first step is to search for project ideas that
require and worthwhile for implementation

• While selecting a business opportunity, the

entrepreneur must ensure that

Adequate market for the The rate of return on the

proposed product or service estimated investment
 Generation of Product Ideas
• Most of the ideas may relate to the starting of a
new project or the takeover of an existing
enterprise

• The idea generation may start from the feel that

someone can offer a product or service

• His idea is endorsed by his associates and

receives support form financial institutions and
banks
 Sources of Project ideas
Observing markets
Prospective Consumers
Study of Project Profiles
Government Organizations
Trade fairs and exhibitions
Developments in other Nations
Brainstorming
Improvement of an existing product
New ways of doing things
Role of Creativity and Innovation in
Idea Generation

Germination of Idea

Preparation of Idea

Incubation of Idea

Illumination

Verification
 Role of Creativity and Innovation in
Idea Generation (Contd.)
1. Germination of Idea- Recognition of idea in the
initial stage

2. Preparation of Idea- Search for knowledge of

rationalizing the idea

3. Incubation of Idea- Garnering of information

4. Illumination- Recognizing feasibility of idea

5. Verification- Validation of the value of idea

 Monitoring the environment

Economic Government Technological

sector Sector Sector

Socio-
demographic Competitors Suppliers
Sector
 Preliminary Screening
• It refers to the elimination of project ideas
which are not promising

• Due to scarcity of resources, it is difficult to

develop several products at the same time

• The idea screening process helps to reduce

the number of irrelevant ideas
 Factors impacting preliminary
screening
Compatibility with the promoter

Consistency with Government Priorities

Availability of inputs

Adequacy of market

Reasonableness of cost

Acceptability of Risk Level

Thank You!