project management

Upendra Kachru PROJECT MANAGEMENT

An Introduction to

Project

Management


MY NAME IS:

PROF. UPENDRA KACHRU

I have been teaching for the last decade and taught management at Fore School of Management, Goa Institute of Management and at both campuses of IILM. In addition, I taught on environmental issues at the TVB School of Habitat Studies and Utah State University.

I have got a degree in engineering from NIT, Durgapur and a MBA from the University of Illinois, USA.

I have over 40 years of work experience out of which I spent nearly 30 years in the corporate world. I worked with Tata Motors, Escorts Limited, Maruti Udyog, Blackwood Hodge, Inox Group, and H.P. Pelzer.

I also write and am an author of over 50 titles.


WELCOME TO PM

I hope that this course will not only

give you some learning experience

but you will at the same time also

enjoy this course.

Your text book is:

Contemporary Project Management,

By Kloppenborg

We will be using the PMBOK

Framework for this course


What is a Project?

As they are temporary projects have a beginning and an end.

There are four unique aspects to each project:

–Scope (size)

–Quality or Performance (acceptability of results)

–Cost

–Schedule

Introduction

Project – “a temporary endeavor undertaken tocreate a unique product, service, or result.” PMBOK® Guide


History of Project Management

• PM emerged as a formal discipline in the 1950s

• Techniques for planning and controlling schedules and costs were developed for huge aerospace and construction projects in the 1950s and 1960s

• Early PM involved determining project schedules based on order of project activities

• Manufacturing, research and development, government, and construction projects used and refined management techniques


History of Project Management

• Software companies offered software for planning and

controlling project costs and schedules in the 1980s

and 1990s

• Risk management techniques for complex projects

have been applied to less complex projects

• Communication and leadership playa major role in

project success

• Rapid growth and change in information technology

and telecommunications fueled use of PM in the 1990s

and 2000s


What is a project?• A project requires an organized set of work efforts.

• Projects require a level of detail that is progressively elaborated

upon as more information is discovered.

• Projects are subject to limitations of time and resources such as

money and people.

• Projects have a defined beginning and ending.

• A project has a unique combination of stakeholders

stakeholders – “persons or organizations … that are actively involved in the project, or whose interests may be positively or negatively affected by execution or completion of the project.” PMBOK® Guide


Projects Versus Operations

• Projects are temporary

• Projects have both routine and unique characteristics

• Operations consist of the ongoing work needed to ensure

that an organization continues to function effectively

Projects

Unique

Limited life span

Multiple stakeholders

Sponsor

Variable demand for resources

Uncertainty

Variety of resource skills

Operations

Repetitive

Continuous

Department

Supervisor

Stable demand for Resources

Stable Environment, limited uncertainty

Limited, specialized skill set


Projects are Different

Project management allows you to:

– Manage teams by working with different teams on the new

projects

– Work in different cultural environments

– Be exposed to different systems

– Manage time and efforts against specific deliverables

– Work in multiple areas, thus being able to gain insight into

the ways of managing by looking at different angles and

listening to different points of view



The project management cycle is so finite that it

creates an opportunity to refine skills a lot faster.

As a project manager moves from one stage to

another, you get to know the components of project

management delivery.

You have many opportunities to improve how you

manage each of them, be it budgeting, generating the

scope of work, generating a work breakdown

structure or managing the risks.



What differentiates a project is:

1. Risk, and

2. Uncertainty

Due to the variety of roles and the type of

environments you are exposed to.


Project Management (PM)

• PM includes work processes that initiate, plan, execute, and close

work

• Work processes require tradeoffs among the scope, quality, cost,

and schedule of the project

• PM includes administrative tasks for planning, documenting, and

controlling work

• PM includes leadership tasks for visioning, motivating, and

promoting work associates.

• PM knowledge, skills, and methods apply for most projects

Project management – “the application of knowledge, skills, tools and techniques to project activities to meet project requirements.” PMBOK® Guide


Scope, time, and resources are the three elements (or ―parameters‖)

by which a project is bound and which determine the cost of the

project. If values are assigned to any three variables, project

management optimises the remaining one. The dotted lines show

the tradeoffs

Project Management (PM)


Project Management Body of

Knowledge - Project Life Cycle• All projects go through predictable stages called a project

life cycle.

• Life cycle allows for control to assure that the project is

proceeding in a satisfactory manner and that the results are

likely to serve its customer’s intended purpose

Project life cycle – “a collection of generally sequential project phases whose name and number are determined by

the control needs of the organization or organizations involved in the project.” PMBOK® Guide



Knowledge – Process GroupsIn addition to the project life cycle also consists of five

process groups. The five process groups are:

– Initiating: defines and authorizes a project or a project phase

– Planning: defines and refines objectives and plans actions to achieve objectives

– Executing: directs and manages people and other resources to accomplish project work

– Monitoring and controlling: collects data and checks progress to determine any needed corrective actions

– Closing: formalized acceptance of project outcomes and ending the project



Knowledge - Knowledge Areas– Integration management: processes and activities needed

to define, combine, unify, and coordinate the various

processes and project management activities

– Scope management: processes required to ensure that the

project includes all the work required, and only the work

required, to complete the project successfully

– Time management: processes required to manage timely

completion of the project

– Cost management: processes involved in estimating,

budgeting, and controlling costs so that the project can be

completed within the approved budget



Knowledge - Knowledge Areas– Quality management: processes and activities of the performing

organization that determine quality policies, objectives, and responsibilities

so that the project will satisfy the needs for which it was undertaken

– Human Resources management: processes that organize, manage, and

lead the project team

– Communications management: processes required to ensure timely and

appropriate generation, collection, distribution, storage, retrieval, and

ultimate disposition of project information

– Risk management: processes of conducting risk management planning,

response planning, and monitoring and control … to increase the probability

and impact of positive events and decrease the probability and impact of

negative events in the project

– Procurement management: processes necessary to purchase or acquire

products, services, or results from outside the project team


Soft Skills and Hard Skills

• Soft skills include communication and leadership

activities.

• Hard skills include risk analysis, quality control,

scheduling, and budgeting work

• A successful project manager needs both soft and hard

skills along with the judgment of when each is more

necessary.

• Training, experience, and mentoring are instrumental in

developing necessary skills.


Defining Project Success and Failure

• Project success is creating deliverables that include all of the agreed upon features

• Outputs please the project’s customers.

• Customers use the outputs effectively as they do their work (meet quality goals)

• The project should be completed on schedule and on budget (meet time and cost constraints).

• Organizational learning should take place and be captured for future projects.

• Reap business-level benefits such as development of new products, increased market share, increased profitability, decreased cost, etc.


Defining Project Success and Failure

Good PM means

– Completing the project on time

– Completing the project within the budget

and the resources available

– Completing the defined work within

specifications at a quality level that is

appropriate for the success of the project

– Using the assigned resources effectively

and efficiently


Project Success

Meeting Agreements

•Cost, schedule, and specifications met

Customer’ Success

•Needs met, deliverables used, customer satisfied

Performing Organization’s Success

•Market share, new products, new technology

Project Team’s Success

•Loyalty, development, satisfaction


Why Projects Fail

• Not enough resources are available for project

completion.

• Not enough time has been given to the project.

• Project expectations are unclear.

• Changes in the scope are not understood or agreed upon

by all parties involved.

• Stakeholders disagree regarding expectations for the

project.

• Adequate project planning is not used.


Selecting and Prioritizing Projects

• Identify potential projects

• All parts of the organization are involved

• Determine which projects align best with major

goals of the firm

• Ensure overall organizational priorities are

understood, communicated, and accepted


Selecting and Prioritizing Projects

What value does each potential project bring to the organization? Are the demands of performing

each project understood?

Are the resources needed to perform the project available?

Is there enthusiastic support both from the external

customers and from one or more internal champions?

Which projects will best help the organization

achieve its goals?


Project Portfolio Process (PPP)

• Links projects directly to the goals and strategy of the

organization

• Means for monitoring and controlling projects

– Identify non-projects

– Identify the real options for each project

– Identify projects with good fit

– Identify co-dependent projects

portfolio – “a collection of projects or programs and other work that are grouped together to facilitate effective management of that work to meet strategic business objectives. The projects or programs of

the portfolio may not necessarily be interdependent or directly related.” PMBOK® Guide

Upendra Kachru PROJECT MANAGEMENT2-26

Project Portfolio Process

Other purposes of Project Portfolio Process

– Prioritize list of projects

– Limit number of projects

– Eliminate risky projects

– Eliminate projects that skip the formal selection process

– Keep from overloading the organization

– To balance the resources with needs

– To balance returns

– To balance short-, medium-, and long-term returns


Portfolios

• Organizations require work activities including

ongoing operational work and temporary project work

• Try to achieve a sense of balance in portfolios

– Some large and some small projects

– Some high-risk, high-reward projects and some low-risk

projects

– Some projects that can be completed quickly and some that

take substantial time


Portfolio of Projects

Many companies envisage the portfolio as a means of developing

knowledge that can be used to improve work processes for higher profits


Projects and Subprojects

• A large project may be composed of multiple subprojects

• The project manager coordinates subprojects and make decisions

that are best for the overall project

subproject – “a smaller portion of the overall project created when a project is subdivided into more manageable

components or pieces.” PMBOK® Guide


Programs

• Programs may last as long as the organization lasts

• Specific projects within a program are of limited duration

• Portfolios and programs are managed at a level above the typical

project manager

Program – “a group of related projects managed in a coordinated way to obtain benefits and control not available from managing them individually. Programs may include elements of work outside of the scope of discrete projects in the program.” PMBOK® Guide


Difference between Portfolio and

Program

• Programs deal with a group of related projects

• Portfolios deal with all of an organization’s

projects. A portfolio can include multiple projects

as well as multiple programs


Project Portfolio & Programs


Types of Projects

Projects of all types have been taken up throughout history.

Projects come up for different reasons.

– A project may be initiated due to market demand. Reliance is

building an extension to its refinery to increase its capacity.

– It may be due to organisational need. Indian Institute of

Management (IIM-A) is authorising projects to create new

courses to increase its academic spread.

– It may be due to customer request. The Ramky Group has asked

Andhra Electricity Board to setup an electrical sub-station for its

new industrial estate near Vizagapatam.


Types of Projects

– It could also be due to legal requirements. Associated Cement

Company (ACC) has authorised a number of projects for

bagging plants and electrolytic precipitators to control the

emission of particulate matter in the air as required by law.

– It could also be due to technological advances. J & K Bank has

decided to implement projects to computerise a large part of its

retail network.


Types of Projects

Projects are activities that cannot be addressed within

the organisation’s normal limits of their business

operations, yet they are necessary for the survival of

the organisation and have to be carried out by the

organisation. They can be classified:

– By industry

– By size

– By timing of determination of project scope

– By application


Classifying by Industry

Projects in different industries often have unique

requirements

The fact is that many projects can be repeated or transferred

to other settings or products. For example, a contractor

building houses at different locations can effectively

consider each of these as projects, yet there is continuity.

The results of one project will be another project. Project

management teams move from the older project and adapt to

new projects.


Classifying by Industry

In industries like aerospace, construction, software

development, etc. this concept is relevant. Here project

management has been institutionalised in the form of

organisation. In these industries, the products that they

provide are best managed as projects.

In most industries new product development and research

and development relating to both process and product are

treated as projects.


HP Scenario—Four Firms

(Dell, IBM, Intel)

• Over 1,000 projects going on at any moment in time

• Over 3,000 active project managers in 160 countries

• Projects range from $100,000 to over a billion

• Over 1,400 active project managers in European/Middle

East in over 40 countries


Project Management Institute

Communities of Practice1. Aerospace and Defense

2. Agile

3. Automation Systems

4. Consulting

5. Design-Procurement-Construction

6. E-Business

7. Financial Services

8. Global Sustainability

9. Government

10. Healthcare

11. Human Resource

12. Information Systems

13. Innovation and New Product Development

14. International Development

15. Learning, Education and Development

1. Manufacturing

2. Marketing and Sales

3. Oil, Gas, Petrochemical

4. Organizational

5. Performance Management

6. Pharmaceutical

7. Program Management Office

8. Quality

9. Retail

10. Risk Management

11. Scheduling

12. Service and Outsourcing

13. Students of PM

14. Troubled Projects

15. Utility

16. Women in PM


Classifying by Size

Large projects often

require more detailed

planning and control


Classifying by Timing of Project Scope

Clarity

How early in the project

the project manager and

team are likely to be able

to determine what the

project scope will be


Classification by Application

• All projects require planning and control

• The art of project management deals with when to

use certain techniques, how much detail to use, and

how to tailor the techniques to the needs of a

specific project.


Classification by Application

• Organizational Change

• Quality and Productivity Improvement

• R&D

• Information Systems

• Construction


Summary• A project is an organized set of work efforts undertaken to produce a

unique output subject to limitations of time and resources

• Project management includes work processes that initiate, plan, execute, control, and close project work.

• Tradeoffs must be made between the scope, quality, cost, and schedule

• All projects, regardless of size, complexity, or application, need to be planned and managed.

• Successful projects require an understanding of what project success is and what drives it

• Successful projects require an understanding of project failure and its major causes.

• Project management requires an understanding of the various executive, managerial, and associate roles in project management


Project Management ProjectDesign and Build a model of

an Energy Efficient House


What is not your project?

Please remember when you work on your project

that a project

• Is not a schedule

• Is not a budget

• Is not a person or job description

• Is not a copy of Microsoft project

It is about meeting project objectives in terms of

cost, schedule, specifications, and learning the use

and acquiring the different areas of knowledge

(PMBOK).


C l i c k t o e d i t c o m p a n y s l o g a n .

project management

Documents