WHAT IS PROJECT MANAGEMENT?

WHAT IS PROJECT MANAGEMENT ?

Project Management is the application of

skills, knowledge, tools & techniques to meet
or exceed stakeholder requirements from a
project.
• The tools are a means to an end.
• The desired end is a successful
project that contributes to the business
success of the organization as well.
WHAT IS PROJECT MANAGEMENT ?
Project Management focuses on a project.

A project is an undertaking that has a beginning and an end

and is carried out to meet established goals within cost,
schedule, and quality objectives.

Project Management brings together and optimizes the

resources necessary to successfully complete the project.

These resources include the skills, talents, and co-operative

effort of a team of people, facilities, tools, and equipment;
information, systems, and techniques and money.
 HOW DID PROJECT MANAGEMENT
DEVELOP?
The concept of project management as a discipline was
developed for use in managing the U.S. space program in
the early 1960s.

Its Practice has expanded rapidly into government, the

military, and industry.

Today you will find these principles being used under the
names of program management, product management,
and construction management.
 THE PROJECT MANAGEMENT LOGO

The Project Management Logo is an Equilateral

triangle having the three sides as Time, Cost
and Quality . The scope of the project is the
sphere touching all three sides of the
equilateral triangle. This logo shows that all
three parameters, Time, Cost and Quality are
equally important.
THE PROJECT MANAGEMENT LOGO

CO
TS
E
TIM

PROJECT SCOPE

QUALITY
SUCCESSFUL PROJECT MANAGEMENT
MEANS..

• Planning Effectively
• Managing Time
• Controlling Costs
• Ensuring Quality
 MANAGING USER EXPECTATIONS

IN THE END IT IS THE USER’S REACTIONS TO

WHAT YOU DELIVER THAT IS THE PRIME
DETERMINANT OF WHETHER YOUR PROJECT
WAS A SUCCESS OR A FAILURE .
 How Does Project Management Differ from
Other Management Principles?
Project Management differs in two significant ways.
First, it focuses on a project with a finite life span, whereas
departments or other organizational units expect to exist
indefinitely.
Second, projects frequently need resources on a part-time basis,
whereas permanent organizations try to utilize resources full-time.

The sharing of resources frequently leads to conflict and requires

skillful negotiation to see that projects get the necessary resources
to meet objectives throughout their project life.
 COMPARISON TABLE
Operations Management Project Management
Responsible for maintaining the status quo Responsible for overseeing change

Authority defined by management structure Lines of authority ‘fuzzy’

Consistent set of tasks Ever-changing set of tasks

Responsibility limited to their own function Responsibility for cross- functional activities
Works in ‘permanent’ organizational structures Operates within structures which exist for the life
of the project
Tasks described as ‘maintenance’ Predominantly concerned with innovation

Main task is optimization Main task is the resolution of conflict

Success determined by achievement of interim Success determined by

targets achievement of stated end goals

Limited set of variables Contains intrinsic uncertainties

 Projects versus Operations
Projects Operations
• Unique • Repetitive
• Finite • Eternal
• Revolutionary change • Evolutionary Change
• Disequilibrium • Equilibrium
• Unbalanced objectives • Balanced objectives
• Transient resources • Stable resources
• Flexibility • Stability
• Effectiveness • Efficiency
• Goals • Roles
• Risk & Uncertainty • Experience
COMPARISON BETWEEN OPERATIONS AND
PROJECT MANAGEMENT
Role

Innovation

A
Project
Management

Operations
Management
B

Maintenance of Status Quo

 A TYPICAL PROJECT LIFE CYCLE
All projects have the same basic underlying structure.
Whatever be the project, it will develop over four
distinct phases :

1. The Conceptual and Definition phase

2. The Planning Phase
3. The Implementation or Execution phase
4. The Completion and Review Phase
IN AN INDUSTRIAL MANUFACTURING PROJECT, EACH
PHASE IS TYPIFIED BY THE FOLLOWING ACTIVITIES :

1. The conceptual phase - Includes identifying needs,

establishing feasibility, searching for alternatives,
preparing proposals, developing basic budgets and
schedules, and naming the starting project team.

2. The planning phase - involves creating schedules;

conducting studies and analyses, designing systems;
building and testing prototypes, analyzing results,
and obtaining approval for production.
IN AN INDUSTRIAL MANUFACTURING PROJECT, EACH
PHASE IS TYPIFIED BY THE FOLLOWING ACTIVITIES :

3. The implementation / execution phase -

encompasses procuring and implementing systems,
verifying performance and modifying systems as
required.

4. The completion phase - includes training

operational personnel, transferring Materials,
transferring responsibility, releasing resources and
reassigning project team members.
 THE DEVELOPMENT CYCLE: MAJOR PHASES:

Basic concept INPUTS

Technical, Requirement
Market Marketing, Specifications
Knowledge Production Marketing
Beta Test
Financial Proof of Principle
Models
Tech. Key Technical Quantity
Appreciation Risks Production Product
Prototype
Documentation Documentation

IDEA Feasibility Laboratory Development Production Trials Production LAUNCH

Study Model Engineering

Basic
Requirement Proof of
Concept Prototype Production User Quantity
Specification Principle
product Documentation Reaction Product
Key Risk
Beta Test Models
Assessment

OUTPUTS
COMPETITIVE APPROACH

Idea
Feasibility Study
Laboratory Model
Development
Production
TRIALS Engineering
Production

LAUNCH

TIME
Traditional Approach
Idea Feasibility
Study
Laboratory Model
Development
Production
TRIALS Engineering
Production

LAUNCH
TIME
Competitive Approach
 THERE ARE THREE DIMENSIONS TO PROJECT
MANAGEMENT. THEY ARE DEPICTED BELOW :
3. Project
Management Tools

2. Project
Performance Pla
n Co n Eva
n in tr o lu a
t g l tion
C os
e
dul
he
Sc

it y
u al
Q
Design or
engineering
1.
Implementation
Procurement or
Manufacturing

Construction
or Installation
SUCCESSFUL PROJECT MANAGEMENT MEANS :

• Planning Effectively
• Managing Time
• Controlling Costs
• Ensuring Quality
MANAGING A PROJECT TEAM

PHASE TASK

CONCEPTUAL  Define scope - meet/talk to client and sponsor.

Deliverable: Definition Document

PLANNING  Plan tasks, deliverables, risks, milestones,

dependencies expenditure and responsibilities
Deliverable: Project Schedule and Budget.

IMPLEMENTATION  Monitor progress against project

schedule/budget.
 Modify the plan as necessary.
 Identify and record changes to scope.
 Liaise with sponsor and client.

Deliverable: Project Deliverables.

MANAGING A PROJECT TEAM

PHASE TASK

COMPLETION /  Confirm objectives met.

HANDOVER  Hold official handover event.
 Produce end-user instructions.
Deliverable: Completed Project.

REVIEW Conduct post-project review. Agree learning points.

Deliverable: Project Review Document (published in

an appropriate format).
 RESOURCE MANAGEMENT

A common cause of project delays, resulting in penalties and

other undesirable effects, is the OVER COMMITMENT of the
organization to contracts and projects with respect to available
resources.

Cost over-runs can also occur when the limitations of available

resources are not considered at the time of project commitment
and during project execution.
 RESOURCES TO BE MANAGED

1. TIME
2. MONEY
3. PEOPLE
4. FACILITIES
5. EQUIPMENT
6. MATERIAL
 THE MOST IMPORTANT
RESOURCE
TIME
is a fundamental resource which cannot be managed like the
others.
TIME
flows at a constant rate, and time that is not used can never
be recovered.
TIME
is the element that interrelates all other resources with the
project plan.
 THE TIME – COST
COST RELATIONSHIP

A SE B EC A U SE OF
CRASHING INCRE
Y
PROJECT INEFFICIENC

LOWEST POSSIBLE TIME MINIMUM

TIME
LIMIT COST
Trade-offs in project management

Time
Quality

Cost
 TEN RULES FOR MANAGING PROJECTS

 Do you have a clear idea of what you are trying to accomplish for the
 project user? (Rule Number One)
 Can you articulate the constraints and directives that govern your
 project? (Rule Number Two)
 Is your project broken down into manageable chunks? (Rule Number
Three)
 Do you have a written schedule for your project? (Rule Number Four)
 Do your understand the perspectives of the people whose work affects
 your project? (Rule Number Five)
 YES / NO
 TEN RULES FOR MANAGING PROJECTS
contd.
 Are others excited about and committed to success on the project?
(Rule Number Six)
 Do your listen more than you talk? (Rule Number Seven)
 When disagreements arise, can you build effective agreements?
(Rule Number Eight)
 Do others willingly follow your requests? (Rule Number Nine)
 Do others willingly to be imaginative and creative on the project?
(Rule Number Ten)
 YES / NO
 THE GO-CARTS FOR A PROJECT

Goals for the project

Objectives for the project
Checkpoints to monitor progress
Activities to be completed
Relationships among the activities
Time estimates for the activities
Schedule for the project
 THE PROJECT MANAGER, THE DRIVER OF
THE TEAM
Direct people, both individually and as a team
Reinforce project team members’ excitement and commitment
Inform all people connected with the project
Vitalize participants by building agreements
Empower yourself and others
Risk approaching problems creatively
 THE 7-S OF PROJECT MANAGEMENT
Element Description
Strategy The high-level requirements of the project and
the means to achieve them.
Structure The organizational arrangement that will be
used to carry out the project.
Systems The methods for work to be designed,
monitored and controlled.
Staff The selection, recruitment, management and
leadership of those working on the project.
Skills The managerial and technical tools available
to the project manager and the staff.
Style/Culture The underlying way of working and inter-
relating within the work team or organization.
Stakeholders Individuals and groups who have an interest
in the project process or outcome.
DEMING CYCLE FOR PROJECT MANAGEMENT
(PDCA)
Plan:
formulation
and revision
of intended
activity

Act: Do:
make changes project
in all phases execution
to provide for
improvement

Check:
evaluate
performance
of all phases