Project ManagementA Managerial Approach

EVALUATION CRITERIA

Exam % of Marks Duration Coverage

T-1 15 1 hr Syllabus covered up till T-1

T-2 25 1hr 30 min.

Mainly syllabus covered after T-1, plus some questions from Test 1 also.

T-3 35 2 hr

Mainly syllabus covered after Test-2, and up to Test-3 Plus some questions from Test-1 and Test-2.

Internal assessment

25

Project : 15 Attendance: 10

Entire

Semester

BOOKS

    Reference Books-

“PROJECT MANAGEMENT” by HARVEY MAYLOR     “PRACTICAL PROJECT MANAGEMENT” by R.G.GHATTAS & SANDRA L.

MCKEE     “PROJECT MANAGEMENT” BY NICOLAS     “PRACTICES IN PROJECT MANAGEMENT” by DAVID OLSON      “PROJECT MANAGEMENT” by Harold Kerzner      “ADVANCED PROJECT MANAGEMENT” by Harold Kerzner 

Text Book: Project Management-A Managerial approach, Jack R. Meredith, Samuel Mantel.

COURSE OBJECTIVES

At the end of this course you will be able to

•Define project

•Apply the concepts of Project management

•Apply financial techniques in comparing & selecting projects

•Develop a project charter

•Describe the elements of a statement of work & WBS

•Perform a network analysis (PERT/CPM)

•Develop schedules using a Gantt Chart

•Develop a risk management plan

•Control project budgets & schedules

•Implement a project

•Decide whether you want to become a Project Manager

Chapter 1

Projects in Contemporary Organizations

Project management is the discipline of organizing and managing resources in such a way that these resources deliver all the work required to complete a project within defined scope, time, and cost constraints.

It is the planning, scheduling & controlling of integrated tasks such that the objectives of the project are achieved successfully and in the best interest of the stakeholders.

Most of the PM techniques & practices are emerged form Military

Project management

Projects in Contemporary Organizations

Project Management has emerged because the characteristics of our turn-of-the-century society demands the development of new methods of management

Many forces have fostered the emergence and expansion of Project Management

Forces Of Project Management

3 Paramount Forces driving Project Management:1. The exponential expansion of human knowledge2. The growing demand for a broad range of complex, sophisticated, customized goods and services3. The evolution of worldwide competitive markets for the production and consumption of goods and services

All 3 forces combine to mandate the use of teams to solve problems that used to be solvable by individuals

Objectives of a Project

3 Project Objectives:o Performanceo Timeo Cost

Expectations of clients are not an additional target, but an inherent part of the project specifications

Objectives of a Project

3 Project Objectives:

The primary job of the Project Manageris to manage the trade-offs between Time, Cost and Performance..

The Professionalism of Project Management

Complexity of problems facing the project manager Growth in number of project oriented organizations

The Project Management Institute (PMI) was established in 1969

By 1990 it had 7,500 members 5 years later, over 17,000 members And by 2001, it had exploded to 86,000 members

This exponential growth is indicative of the rapid growth in the use of projects

Also reflects the importance of PMI as a force in the development of project management as a profession

Project Management Institute www.pmi.org

The PMI was foundedin 1969 to foster thegrowth and professionalism of Project Management.

Recent Changes in Managing Organizations

The process of managing organizations has been impacted by three revolutionary changes:

1. Accelerating replacement of traditional, hierarchical management by participatory management

2. Currently witnessing the adoption of the “systems approach” (sometimes called “systems engineering”)

3. Organizations establishing projects as the preferred way to accomplish their goals.

The Definition of a Project”

“A temporary endeavor undertaken to create a unique product or service” ….PMI

Must make a distinction between terms: Program - an exceptionally large, long-range

objective that is broken down into a set of projects Task - set of activities comprising a project Work Packages - division of tasks Work Units - division of work packages

In the broadest sense, a project is a specific,

finite task to be accomplished

Origin

May have begin with Egyptian pyramid or Tower of Babel.

Modern Project management begun with the famous Manhattan Project.

The Manhattan Project was the codename for a project conducted during World War II to develop the first atomic bomb by the Allied powers (US, UK, Canada). The Project eventually employed more than 130,000 people and cost nearly US$2 billion ($22 billion in current value).

Manhattan Project Timeline: 1939 - 1947

1939: Letter to president to fund the research project1941: Discovery of Plutonium : Japan attacked Pearl Harbor

: US & Germany declared war against each other

1943: Construction begins1945: May- Germany surrenders to allied powers

July- First nuclear explosion (Trinity Test) Aug6: Bomb Little boy dropped on Hiroshima Aug 9: Bomb Fat Man dropped on Nagasaki Aug 15: Japan surrenders

1947: Manhattan Project officially complete.

Characteristics of a Project

Have a purposeHave a life cycleInterdependenciesUniquenessConflict

Why Project Management?

Companies have experienced:Better controlBetter customer relationsShorter development timesLower costsHigher quality and reliabilityHigher profit marginsSharper orientation toward resultsBetter interdepartmental coordinationHigher worker morale

Why Project Management?

Companies have also experienced some negatives:Greater organizational complexity Increased likelihood of organizational policy

violationsHigher costsMore management difficultiesLow personnel utilization

The Project Life Cycle

Stages of a Conventional Project:Slow beginningBuildup of sizePeakBegin a declineTermination

The Project Life Cycle

The Project Life Cycle

Time distribution of project effort is characterized by slow-rapid-slow

The Project Life Cycle

Other projects also exist which do not follow the conventional project life cycle

These projects are comprised of subunits that have little use as a stand alone unit, yet become useful when put together

The Project Life Cycle

Unlike the more conventional life cycle, continued inputs of effort at the end of the project produce significant gains in returns

The Project Life Cycle

It is essential for the Project Manager to understand the characteristics of the life cycle curve for his project

The distinction between the two life cycles plays a critical role in the development of budgets and schedules for the project

Risk During Project Life Cycle

Risk during project life cycleWith most projects there is some

uncertainty about the ability to meet project goals

Uncertainty of outcome is greatest at the start of a project

Uncertainty decreases as the project moves toward completion

Risk During Project Life Cycle

Uncertainty decreases as the project moves toward completion

The Project Model

Inputs(A project brief describing the nature of the work to be undertaken)

Constraints(Legal, ethical, environmental, logic, activation, indirect effects)

OutputsIn the form of Converted information (eg. Set of specifications for a new

product.), a tangible product or changed people (participants receiving knowledge through a training project)

MechanismsPeople (those involved directly/indirectly)Knowledge and expertiseFinancial resourcesTools and techniquesTechnology

CONSTRAINTS Financial, legal, ethical, environmental,logic, activation, time,quality, indirect effects.

INPUT

OUTPUT Want/Need

satisfied needs

MECHANISMS

People, knowledge & expertise,capital, tools & techniques, technology

PROJECT

The 7-S of Project Management (Maylor)

The 7-S framework provides a comprehensive set of issues that need to be considered.

It allows classification of tasks within the remit of the project manager which reduces the complexity of the role.

In addition, classifying issues in this manner ensures that the project manager will know where to look to find sources of help if novel situations arise.

These are-

1. Strategy-The high level requirements of the project and the means to achieve them.

2. Structure-The organizational arrangement that will be used to carry out the project.

3. Systems-The methods for work to be designed, monitored and controlled.

4. Staff-The selection, recruitment, management, and leadership of those working on the project.

5. Skills-The managerial and technical tools available to the project manager and the staff.

6. Style/culture-The underlying way of working and inter-relating within the work team or organisation.

7. Stakeholders-Individuals or groups who have an interest in the project process or outcome.

The project environment

Projects have become more complex- It is becoming more difficult, but vital to innovate.

Businesses are becoming more complex Projects are moving towards turnkey contracts. Changes in competitive environment-Value of time, Human

Resource Management, Rates of change in technology and methods, Organizations are becoming customer focused, Integration and openness between customers and suppliers, changes in management philosophy, growth in the service sector.

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The 4 C’s of the project environment- Complexity, Completeness, Competitiveness, Customer focus.

CompletenessA move to integrated solutions, not just products or services

CompletenessA move to integrated solutions, not just products or services

Customer FocusNew standards emerging of

requirements of products and services and flexibility

Customer FocusNew standards emerging of

requirements of products and services and flexibilityCompetitiveness

Reduced monopolies

on technology , work can be

done almost anywhere, time and quality are

Competitiveresources.

CompetitivenessReduced

monopolies

on technology , work can be

done almost anywhere, time and quality are

Competitiveresources.

External environment

ComplexitySimplest ideas exploited first, barriers to entry increasing,

Technology rate rising

Project Team

Other project organizations who could do the same taskCompetition

Market trends Customers

Web based project management

Benefits Specially helpful where team

members are located at different sites

Improves communication between employees spread across the globe

It helps share information and work jointly on projects and efficiently use all available resources.Better team management

Cost effectiveness Access to talent across the

globe Enhance group productivity

Features Task tracking Automated emailing Threaded discussions Document sharing Project reports

The four phases of Project Management

Phase Key issues Fundamental Questions

Define the project Project and organizational strategy, goal definition

What is to be done. Why is it to be done?

Design the project process

Modeling, planning, estimation, resource analysis, conflict resolution, justification

How will it be done, who will be involved in each part, when can it start and finish?

Deliver the project Organization, control, leadership, decision making, problem solving.

How should the project be managed on a day to day basis?

Develop the process

Assessment of process and outcomes, evaluation, changes for future.

How can the process be continually improved?

Project life cycle

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