Rajiv Misra

PROJECT MANAGEMENT

BIPARD, Patna25th January 2012

Rajiv Misra

CAN A SUCCESSFUL PROJECT MANAGER SUCCEED EVERYWHERE?

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WHAT WERE THE DIFFERENT TASKS WE DID?

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WHAT WERE THE DIFFERENT TASKS WE DID?

PLANNING STAGE

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PRODUCT MIX?

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PRODUCT MIX?

Type A, B, C or D?Selecting Dam SiteProject Portfolio Management

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ESTIMATION?

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ESTIMATION?

No of sheets needed? Nesting etc etcTime Needed?

Benchmark: Internal or External

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PROTOTYPING ?

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PROTOTYPING ?ACTIVITY AND RESOURCE

To identify the activities and resources (Technological)?Will one scissor be enough (Resource Leveling)?

Generates ideas (Template)Drawing on the paper before (not on each shape)

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DECIDING THE ORGANIZATION STRUCTURE

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DECIDING THE ORGANIZATION STRUCTURE

Who will do what when?Is the required traits of leader same at all stages?

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PROCUREMENT?

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PROCUREMENT?

Hiring EquipmentRaw MaterialCONTRACTS

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RISK MANAGEMENT

Do not work on the new sheet

WIP will build up

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ACTION PLANS FOR ADDRESSING RISKS

Risk Event Impact Total Loss (L)

Prob ofImpact

(PI)

ImpactDrivers

Prob of Risk (PR)

Risk Event

Drivers

Prevention Plans Contingency Plans

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ONE SUCH RISK

Heart Attack DeathTotal Loss (L)

25L*10 yrs = 250L

Prob ofImpact

(0.3)

No ambulance

Prob of Risk(0.7)

Stressful jobBeer…..

Prevention Plans Contingency Plans

Retirement: 60CTC: 25L yearly

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HOW TO TRACK AND MONITOR?

Rajiv Misra

HOW TO TRACK AND MONITOR?

Intuitively --- ARROWS / CRITICAL PATHNot observed by meTime is coming to an endSome aspects of Risk mitigation (WIP is building etc or ARROWS not complete)

Could result in elaborate FormsProject Forms/ Software Plan (Word Docs)

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WHAT WERE THE DIFFERENT TASKS WE DID?

EXECUTION STAGE

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PERFORMANCE MONITORING

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PERFORMANCE MONITORING

We need to hasten up

Punctuated equilibrium model

Milestones

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LEARNING

From own experienceFrom other groups

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WHAT WERE THE DIFFERENT TASKS WE DID?

CLOSING STAGE

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CALCULATION

Profit or loss?

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HANDOVER

As built drawings, workmen statutory clearances, site closingGet back all Bank and Performance GuaranteesScrap Reconciliation

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PROJECT MANAGEMENT PROCESSES

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PROJECT MANAGEMENT PROCESSES

Gray and Larson: Your book

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PROJECT MANAGEMENT PROCESSES

PMBOK

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WHY WAS THE QUALITY OF DRAWING NOT SO GOOD?

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PROJECT MANAGEMENT

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PROJECT MANAGEMENT TRADEOFF

Project Management balances this:

TRADE OFF TRIANGLE

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NEED FOR A SEPARATE TECHNIQUE

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PROJECT MANAGEMENT

Why is a separate technique for Project Industries needed ?

Daily Passenger versus once in a while traveler – Rly Time Table

Answers to these basic Questions must be provided by any technique

What is to be done?When is it to be done?Are we on schedule?If not, how late and when can we complete

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WHAT IS A PROJECT: DEFINITION

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PROJECT MANAGEMENT : DEFINED

5.0 DEFINITION OF A PROJECT

“A temporary endeavor to create an unique Product/Service”

(PMBOK www.pmi.org)Evolving Product, Starts & Finish, Transient Teams

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PROJECT MANAGEMENT : EXAMPLES

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PROJECT MANAGEMENT : EXAMPLES

Trojan Reactor Vessel

Removing a full size Reactor without dismantlingPublic safety concernsNever done beforeSaved 19 million dollars

PMI 2000 International Project of the year

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PROJECT MANAGEMENT : EXAMPLES

Mars Pathfinder Mission

Space craft to Mars - landed July 4, 19973 years , 150 million dollarsMotto “Better, Faster, Cheaper”Earlier Viking missions took 6 yearsExtensive Requirement TrackingLessons from past projects and lessons for futureWhat went Right/ What went Wrong (www)

PMI 1998 International Project of the year

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NAPOLEON’S PLANS FOR RUSSIA

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PROJECT MANAGEMENT : EXAMPLES

PYRAMIDS

Pyramid at Cheops3 BC2,30,000 Stone Blocks weighing 2- 70 tons a pcHeight of a 40 storey buildingBase is 13 acres1,50,00 workmen and their families20 year Project

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PROJECT MANAGEMENT : EXAMPLES

LAUNCH OF MICROSOFT PROJECT 2003

Visual Freeze

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PROJECT MANAGEMENT : EXAMPLES

RENOVATING THE STATUTE OF LIBERTY

198350 Companies30 month ProjectCrown Windows replacedAncient copper molding technique used for Torch

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PROJECT MANAGEMENT : EXAMPLES

OLYMPICS

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PROJECT MANAGEMENT : EXAMPLES

PULSE POLIO PROGRAM

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PROJECT MANAGEMENT : EXAMPLES

MANUFACTURE OF LUX SOAP

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PROJECT MANAGEMENT : EXAMPLES

CRM at Jamshedpur

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PROJECT MANAGEMENT : EXAMPLES

REVAMP OF PRODUCT (INDICA – TATA CAR)

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PROJECT MANAGEMENT : EXAMPLES

IMPLEMENT ERP

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PROJECT MANAGEMENT : EXAMPLES

PRODUCING HR COILS

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PROJECT MANAGEMENT : EXAMPLES

RESCUE MISSION AFTER 9/11

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PROJECT MANAGEMENT IN INDIA

INDIA’S PROJECT SUCCESSES

ASIADKONKAN RAILWAYSHIGHWAY PROJECTS/ DELHI METRO

INDIAN PROJECT DISASTERSSECTOR COST O/RUN TIME O/RUN

COAL 752% 192%

STEEL 231% 345%

RAILWAYS 470% 121%

POWER 921% 196%

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PROJECT MANAGEMENT IN INDIA

Study covered 500 Central Government Projects over 200 crores value each

10% completed within time and cost20% of the projects had cost overruns of 100% Cost overruns of 200-500% not uncommon

Source: www.cidcindia.net

Construction India Development Council’s 2003-04 Study

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PROJECT MANAGEMENT IN INDIA

REASONS FOR OVERRUNS

FUNDINGCOMPLICATED PROJECT CLEARANCENO STANDARD PROJECT MGT TECHNIQUE USED

PROJECT MANAGEMENT IN INDIA

LIMITING FACTORS EMERGING CHANGESVARIABILITY NTPC/NHAI INFLUENCE ON USE OF PM

LITTLE GOVT. SUPPORT AVAILABILITY OF DESKTOP S/WLACK OF NATION LEVEL STATISTICS INFLUENCE OF MULTINATIONAL (EPC)CORRUPTION EDUCATION.WHY THE ‘EXTRA MILE’ – CLAIMS LEGAL CHANGES

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NETWORK METHODS

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NETWORK METHODS

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NETWORK METHODS

Time

Activities

HISTORICAL DEVELOPMENT

GANTT CHARTOne Month Delay

1st Jan

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NETWORK METHODS

Time

Activities

HISTORICAL DEVELOPMENT

GANTT CHART

WEAKNESSES IN GANTTINTERDEPENDENCIES NOT MODELED

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NETWORK METHODS

WHAT ARE THEY

PERTCPM

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NETWORK METHODS

NEED: COST AND TIME OVERRUNS – Defense Industry

EFFORTS IN RESEARCH

(1) UK: Central Electricity Board “Master Sequence”

(2) USA-1 : Polaris MissileR and D ProjectLockheed, Navy, and Booz AllenRelied on Probability TheoryResulted in PERT

(3) USA-2 :Maintenance and Construction ProjectsDuPont an RandTime and Cost Trade OffDeterministic TimesResulted in CPM

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Programme Evaluation & Review Technique (PERT)

US Navy/ Polaris Missile Project 1958

• U.S Navy, concerned with the control of contracts for its Polaris Missile project.

• 500 main contractors; 3000 sub-contractors

• Contracts consisted of research, development work and manufacturing of parts that were unique and had never been previously undertaken.

PERT

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CPM

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DRAWING NETWORKS

PROJECT: PREPERATION OF A BUDGET

ACTIVITY ID DEPT TIME PREDECESSOR

Forecast Sales a Sales 14 -

Price Sales b Sales 3 a

Prepare Prodn. Schedule

c Prodn 7 a

Cost Production d Accounts 4 c

Prepare Budget e Treasurer 10 b,d

Rajiv Misra

DRAWING NETWORKS

PROJECT: PREPERATION OF A BUDGET

ACTIVITY ID DEPT TIME PREDECESSOR

Forecast Sales a Sales 14 -

Price Sales b Sales 3 a

Prepare Prodn. Schedule

c Prodn 7 a

Cost Production d Accounts 4 c

Prepare Budget e Treasurer 10 b,d

1 2a (14)

Rajiv Misra

DRAWING NETWORKS

PROJECT: PREPERATION OF A BUDGET

ACTIVITY ID DEPT TIME PREDECESSOR

Forecast Sales a Sales 14 -

Price Sales b Sales 3 a

Prepare Prodn. Schedule

c Prodn 7 a

Cost Production d Accounts 4 c

Prepare Budget e Treasurer 10 b,d

1 2a (14) b (3)

c (7)

Rajiv Misra

DRAWING NETWORKS

PROJECT: PREPERATION OF A BUDGET

ACTIVITY ID DEPT TIME PREDECESSOR

Forecast Sales a Sales 14 -

Price Sales b Sales 3 a

Prepare Prodn. Schedule

c Prodn 7 a

Cost Production d Accounts 4 c

Prepare Budget e Treasurer 10 b,d

1 23

4

5a (14) b (3)

c (7)

d (4)

e (10) PATHS1-2-3-5 = 271-2-4-3-5 = 35 (CRITICAL)

Rajiv Misra

NETWORKS TERMS

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NETWORKS TERMS

FLOAT:

Buy Motor

Make Support

Erection

Testing

Day0 10

12

28

31 Finish

30

Let’s Review on11 12 13 14

Free FloatFloatDelayed

12

28

0

31

Rajiv Misra

NETWORK CLASSIFICATION

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NETWORK CLASSIFICATION

1. ACTIVITY ON ARROW (AOA)

2. ACTIVITY ON NODE (AON)

a

c

b

S a

b

c

F

3. PRECEDENCE DIAGRAMMING (PDM)

FS, FF, SS, SF BETWEEN PAIR OF ACTIVITIES

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NETWORK CLASSIFICATION

Activity Predecessor

A -

B -

C -

D A,B

E B,C

S B

A

C

F

D

E

Activity on Node (AON)

Rajiv Misra

NETWORK CLASSIFICATION

Activity Predecessor

A -

B -

C -

D A,B

E B,C

Activity on Arrow (AOA)

SF

A

B

C

D

E

DUMMY