Project ManagementG.PurandaranM.Tech (I.I.T-Madras)PGDM (I.I.M-Bangalore)

QualityManagementStatisticalProcess ControlJust in TimeMaterials Requirement PlanningInventory ControlAggregatePlanningOperations Management - OverviewProjectManagementSupply Chain ManagementProcess Analysisand DesignProcess Controland ImprovementWaiting Line Analysis and SimulationServicesManufacturing OperationsStrategy Facility LayoutConsulting andReengineeringProcess AnalysisJob DesignCapacity ManagementPlanning for ProductionSupply ChainStrategy

The Pyramid of Giza in Egypt

The Great Wall of China

What is a ProjectOne TimeLarge InvestmentNo RevenueWide variety of Skills used and of High CaliberUse of Special purpose equipment for short durationInvolvement of many specialized agenciesTechnology-Wide Variety

History of Project ManagementIf we define project management to be: the situation where a group of people and resources that have been assembled and organized to achieve specific one-time objectives, then project management has been around for quite some time. Examples of one time projects requiring complicated management systems includes ancient wonders such as: the great Egyptian pyramids and the Great Wall of China.

*Ancient HistoryExamples:The Great Pyramids of Giza (2,550 B.C.)The Great Wall of China (221 B.C. - 206 B.C.)Exceptional planningCoordinationAllocation Hundreds of thousands of workersPaid and Slave labor.

*Ancient HistorySimilar basic elements of project management: Managing resources Maintaining a scheduleCoordinating different groupsAll are used in todays modern project management practiceNo evidence that they used optimal scheduling

*The Early Years: Late 19th CenturyPM emerged in the growing complexity of commerceSeen in transportation, to manufacturingLarge scale projects caused large scale management decisions.Example is the 1862 Transcontinental Railroad

*Modern Project Management 1900-1950 Henry GanttModern project management ConstructionEngineeringDefenseHenry Gantt forefather of project management Known for planning and control techniquesGantt chart keeps track of project schedule.

*Modern Project Management 1900-1950 Gantt chartSource Gantt Charts at http://www.ganttchart.com/Evolution.html

*Modern Project Management 1900-1950 Gantt chartSource Gantt Charts at http://www.ganttchart.com/Evolution.html

*Modern Project Management 1950 and beyond - PERTTwo mathematical scheduling methods Program Evaluation Review Technique or PERTAnalyzes the tasks Identifies minimum amount of timeEdwin BoozSource: The Story of Consulting: 1920-1939 http://www.agcon.com/HTML/site_content/page_episode_2_en.html

*Modern Project Management 1950 and beyond - CPMThe Critical Path Method developed for plant maintenance projectsAlgorithm for scheduling project activities.A CPM diagram based on the following project elements:List of all activities required for project Length of time for each activityDependencies between the activities.

Objectives of a Project3 Project Objectives:

What is Project Management?Project : A group of milestones or phases, activities or tasks that support an effort to accomplish something

Management : is the process of Planning, Organizing, Controlling and Measuring

Project...A collection of linked activities, carried out in an organised manner,with a clearly defined START POINT and END POINT to achieve some specific results desired to satisfy the needs of the organisation at the current time

*Copyright 1999 Project Management Institute, Inc. All Rights Reserved.OperationsSemi-permanent charter, organization, and goalsMaintains status quoStandard product or serviceHomogeneous teamsOngoingContrast Projects and OperationsProjects Create own charter, organization, and goalsCatalyst for changeUnique product or serviceHeterogeneous teamsStart and end date

Copyright 1999 Project Management Institute, Inc. All Rights Reserved.

Characteristics of a ProjectHave a purposeHave a life cycleInterdependenciesUniquenessConflictChapter 1-9

The Definition of a ProjectMust make a distinction between terms:Program - an exceptionally large, long-range objective that is broken down into a set of projectsTask - set of activities comprising a projectWork Packages - division of tasksWork Units - division of work packagesIn the broadest sense, a project is a specific, finite task to be accomplishedChapter 1-8

Why Project Management? Companies have experienced:Better controlBetter customer relationsShorter development timesLower costsHigher quality and reliabilityHigher profit marginsSharper orientation toward resultsBetter interdepartmental coordinationHigher worker moraleChapter 1-10

Why Project Management?Companies have also experienced some negatives:Greater organizational complexityIncreased likelihood of organizational policy violationsHigher costsMore management difficultiesLow personnel utilization

Chapter 1-11

The Project Life CycleStages of a Conventional Project:Slow beginningBuildup of sizePeakBegin a declineTerminationChapter 1-12

What does Project Management Entail?Planning:is the most critical and gets the least amount of our timeBeginning with the End in mind-Stephen CoveyOrganizing: Orderly fashion (Contingent/Prerequisites)Controlling:is critical if we are to use our limited resources wiselyMeasuring:To determine if we accomplished the goal or met the target?

Measuring.Are we efficient?Are we productive?Are we doing a good job?What is the outcome?Is it what we wanted to be?If you cant plan it, You cant do itIf you cant measure it, you cant manage it

Who uses Project Management?Nearly Everyone to some degreePeople plan their Days, their Weeks, their Vacations and their Budgets and keep a simple project management form known as To Do listAny Process or Means used to track tasks or efforts towards accomplishing a goal could be considered Project Management

Why is Project Management used?It is necessary to Track or Measure the progress we have achieved towards a Goal we wish to accomplishWe use Project Management to Aid us in Maximizing and Optimizing our resources to accomplish our goals

How much time does Project Management take?Not much. Probably more time is wasted as a consequence of lack of Project Management tool than is spent to Plan adequately, Organize, Control effectively and Measure appropriatelyHow long: As long as there are things to do

Why is Project Management Important?Enables us to map out a course of action or work planHelps us to think systematically and thoroughlyUnique TaskSpecific ObjectiveVariety of ResourcesTime bound

AdvantagesIn built Monitoring/ SequencingEasy and Early identification of BottlenecksActivity based costingIdentification and Addition of missing and new activitiesPreempting unnecessary activity/expenditureTimely CompletionAssigning tasksReporting

Road to Better Project ManagementFind a Project plan that fits your style of project management needsIt may be as simple as creating templates, forms and spreadsheets to track tasksFormation of a Project Management committeeListing out all the tasks and sub-tasks to accomplish a goalJot down the time period and person responsible against each task/sub-task

Identify a Project ManagerIdentify Task ManagersSequence the activities in relation to time periodPresent to the PMCFinalize by reaching an agreement and start work...Road to Better Project Management

ImplementationRegular MonitoringResource SupportCritical issues discussed and solutionMeeting with the team on completion of each major milestoneTrack the progress against the planSystem to add/delete tasks in the PMT

Consequences of not using PMTDELAYCOSTWASTE OF RESOURCESQUALITYDISSATISFACTIONREPUTATION

Stages in a ProjectConceptual: (Study and understanding Statement of Work is given by Customer)Initiation ( First Phase of Project):Decided to take up, Project Charter(Objective, Business Potential, Allocation of Manager/Leader, and Team, Scope of Project, Schedule of project,deliverables,risk for the project, assumptions and constraints- approval from sponsorers to execute)Detailed Project Plan /Mother Document meant for Stake Holders(Purpose of Project, Project Description{for ex:schematic diagrams}, Set of Standards to be followed, Identify Stakeholders, Communication plan,Estimation of project{work content, effort, budget, schedule-PDC},Manpower,Machinery/Material,Training requirement;implementation plan{wbs}, verification and validation plan,quality plan.Risk Plan{identify,mitigation,contigency,benefit}

Stages in a ProjectRequirement Phase: Elicitation of requirement specification from customers,documentation,Technical Review.Design Phase: Overall High Level Design, Detailed design , Product interface detail.Implementation/Fabrication Phase: Validation Phase

The Project ProcessProject set-upMajor Project ProposalsProject DefinitionConceptual DesignScheme DesignDetailed DesignTender Invitation & AssessmentManufacture EquipmentInstall EquipmentConfirm CompletionTest & CommissionProject ReviewAppoint Project Sponsor Assess Project Priority Assess Budget Implications Est. Proj. Deliverables and Objectives Appoint Project Leader Approve Project Set-upDraft Statement of Requirements (SoR) Review & Approve SoR Identify Resources Appoint Project Team Produce & Maintain Procurement Plans Undertake Project Risk Assessment Prepare Project Boundary Document Develop Project Management Plan (PMP)* Raise initial TCD-R/PERF** Prepare Preliminary Conceptual Design** Raise/Extend/Update initial TCD-R/PERF Prepare Outline Conceptual Design Define Design Constraints Prepare Interface Requirements Spec. (IRP) Finalise Conceptual Design Hold Conceptual Design Review (CDR) Clear CDR Issues Initiate Modification Safety Case Update PMP Approve Proceed to Detailed DesignRaise/Extend Sub-system TCD-Rs/PERFs Agree Classifications & Interfaces Prepare Sub-system Scheme Design Hold Sub-system Scheme Design Review (SDR) Clear Sub-system SDR Issues Update PMP Use TCD-I/MMAC for Sub-system SD ApprovalExtend TCD-Rs/PERFs Prepare Sub-system Detailed Design Hold Detailed Design Review (DDR) Clear Sub-system DDR Issues Use TCD-I/MMAC for Sub-system DD Approval Prepare Final Documents including: - Design Documents., Machine Compatibility Documents., Safety Case ModificationCompile Tender Docs.*** Send out Invitations (ITTS) Hold Clarification Meetings Receive Tenders Evaluate Tenders Arrange site visits Approve changes to Specs. Choose preferred CompanyRaise Contract Documentation Place Contract Hold Kick off Meeting (KOM) Clarify Issues (Quality Plan) Monitor Progress Witness key Procedures Complete Release Note Approve Complete Package**** Approve Release Note Pack & Dispatch EquipmentReceive Equipment Pre-test Equipment Install equipmentTest Equipment against Test Schedule Commission Complete SystemConfirm Technical Completion Review Project Records Complete Handover Documents Resolve Reservations Obtain Acceptance of Completed ProjectInitiate ProjectUndertake DesignImplement Project Complete Project EFDA/CSU/JOC ManagementProject Leader/Project Team/EFDA/CSUProject Team/IRP/EFDA/CSU/JDCProject Team/InterfacesProject Team/Interfaces/EFDA/CSU/JDCProject Team/ICMProject Team/ICM/EFDA/CSUProject Team/EFDA/CSUProject Team/CSUUndertake Post Project ReviewProject Team/Contracts/EFDAProject Team/Contractor/ICMPrepare Technical Design Ensure Machine Compatibility Prepare Safety Case Modification*** These will comprise:- Technical Specification - Drawings - Contractual Requirements Note: Overall Project Management and Reporting will be as defined in the Project Management Plan (PMP)**** This includes supporting documentationGate 4Gate 1Gate 2Gate 3Gates (Formal Decision Points) See accompanying notesGate 0Project Justification - Approve Project DefinitionDesign Approval - Approval of Final DocumentsReadiness for Manufacture - Approval to place ContractReadiness for Operation - Acceptance of SystemStrategic and Budgetary ApprovalUndertake Tender* This will include:- Initial WBS, OBS and CBS - Project Plan - Risk and Procurement Strategies ** These will only take place here for large projects demanding DO effort for preliminary Conceptual workUNCONTROLLED WHEN PRINTED

Project Management.Work Smart Not Hard !!!

Introduction*If we define project management to be the situation where a group of people and resources that have been assembled and organized to achieve specific one-time objectives, then project management has been around for quite some time. Examples of one time projects requiring complicated management systems includes ancient wonders such as the great Egyptian pyramids and the Great Wall of China.

*Management of the construction of the Great Pyramids and the Great Wall of China has the basic elements of project management*In the 19th Century, project management emerged as an important activity when commerce grew and became more complex.*In the early 20th century, modern project management came about from different areas of application such as construction, engineering, and defense.

*Here is an example of the original Gantt chart showing tasks done over various months*In these early charts, progress was shown by filling in the bars.*The Program Evaluation Review Technique or PERT was developed by Booz Allen Hamilton as part of the US Navys Polaris missile submarine program.*The Critical Path Method or CPM was developed by jointly by both DuPont Corporation and Remington Rand Corporation for managing plant maintenance projects.

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