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PROJECT MANAGEMENT
Project…
A project is “a unique endeavor to produce a set of
deliverables within clearly specified time, cost and
quality constraints”.
A project is defined as “work that is temporary and
produces a unique product or service.”
"A project is a one-shot, time-limited, goal-
directed, major undertaking, requiring the
commitment of varied skills and resources".
Characteristics of Projects
Objectives
Life Cycle
Defined Time Limit
Uniqueness
Team Work
Complexity
Sub Contracting
Risk and
Uncertainty
Change
Response to
Environment
Rational Choice
Optimality
Control Mechanism
Project Management…
Project management is the planning, scheduling,
and controlling of project activities to meet project
objectives.
Project management is normally reserved for
focused, non-repetitive, time-limited activities with
some degree of risk and that are beyond the usual
scope of operational activities for which the
organization is responsible.
Process Flow of PM
EVOLUTIONPROJECT MGMT
History of Project Management
Project management has been practiced since
early civilization.
Until 1900 civil engineering projects were
generally managed by creative architects and
engineers themselves,
It was in the 1950s that organizations started to
systematically apply project management tools
and techniques to complex projects.
As a discipline, Project Management
developed from several fields of application
including construction, engineering, and
defense activity.
Two forefathers of project management are
Henry Gantt, called the father of planning and
control techniques, who is famous for his use of
the Gantt chart as a project management tool;
and
Henri Fayol for his creation of the management
functions which form the foundation of the body
of knowledge associated with project and
program management.
Both Gantt and Fayol were students of
Frederick Winslow Taylor's theories of scientific
management.
His work is the forerunner to modern project
management tools including work breakdown
structure (WBS) and resource allocation.
The 1950s marked the beginning of the
modern Project Management era.
Project management was formally recognized
as a distinct discipline arising from the
management discipline.
In the United States, prior to the 1950s, projects
were managed on an ad hoc basis using mostly
Gantt Charts, and informal techniques and
tools.
At that time, two mathematical project-
scheduling models were developed
"Critical Path Method" (CPM)
"Program Evaluation and Review Technique“ (PERT)
At the same time, as project-scheduling models
were being developed.
In 1956, the American Association of Cost
Engineers (now AACE International; the
Association for the Advancement of Cost
Engineering) was formed.
The International Project Management Association
(IPMA) was founded in Europe in 1967, as a
federation of several national project management
associations.
IPMA maintains its federal structure today and now
includes member associations on every continent
except Antarctica.
In 1969, the Project Management Institute (PMI)
was formed in the USA.
PROJECT TAXANOMY
Taxonomy of Projects
Based on the Type of Activity
Based on the Location of Project
Based on the Project Completion Time
Based on Ownership
Based on Size
Based on Need
(A) Based on Type of Activity
Industrial Projects
Non Industrial Projects
Ex.: Health Care Projects, Educational Projects,
Irrigation Projects, Soil Conservation Projects,
Pollution Control Projects, Water Supply
Projects, High-way Projects.
(B) Based on the Location of Project
National Projects
International Projects
Setting up of Fully Owned Subsidiaries
Abroad
Setting up of Joint Ventures Abroad
Setting up of Projects abroad by way of
Mergers and Aquisitions
(C) Based on the Project Completion Time
Normal Projects
(No Constraint on Time)
Crash Projects
(To be completed within a stipulated time,
even at the cost of ending up with a higher
project cost)
Ex.: Construction of Canal Lining to be
completed before Monsoon starts
(D) Based on Ownership
Private Sector Projects
(Ownership in the hands of Project Promoters
and Investors……Profit Maximization!)
Public Sector Projects
(Owned by the State……Social Benefit! )
Joint Sector Projects
(Ownership is shared by the Government and
by Private Entrepreneurs)
(E) Based on Size
Small Projects
Medium Projects
Large Projects
As per the Directives of the Government of India,
Projects with investment on Plant and Machinery up to
Rs. 1 crore are categorized as ‘Small Scale Projects’
while those with investment in Plant and Machinery
above Rs. 100 crores are categorized as ‘Large Scale
Projects’.
(F) Based on Need
New Project
Expansion Project
Modernization Project
Replacement Project
Diversification Project
Backward Integration Project
Forward Integration Project
PROJECT LIFE CYCLE
Project Life Cycle
(A) Project Initiation
(B) Project Plan
(C) Project Execution
(D) Project Closure Following the completion of all project
deliverables and acceptance by the customer,
a successful project will have met its
objectives and be ready for formal closure.
Project Closure is the last phase in the project
and must be conducted formally so that the
business benefits delivered by the project are
fully realized by the customer
FUNCTIONSPROJECT
MANAGEMENT
Project Management: Functions
Selection
Pursuing the correct projects is easily as
important as the effectiveness with which the
project is carried out.
Project selection contains the following
activities:
Create a business case for the project.
Align the project’s goals in the
organization.
Prioritize the project relative to other
projects and ongoing operations.
Definition After a project is selected, a project manager is
assigned and goes to work building the
foundation for the project’s success.
Project definition activities include the
following:
Identify all stakeholders on the project and
document their goals and involvement.
Develop a relationship with the project sponsor.
Record the goals and constraints of the project
using a statement of work or similar document.
Planning
With a clear goal in place, documented by the
statement of work and business case, the
project manager builds the action plan that
describes the who, what, when, where, and
how of accomplishing the project.
Planning typically includes the following activities:
Develop a detailed description of the work on the
project using a work breakdown structure (WBS).
Analyze the sequence of the tasks.
Estimate the tasks to determine the required skills,
effort, equipment, and materials.
Establish detailed project schedules documenting
specific start and finish dates, responsibilities, and
completion criteria for each task.
Determine the number of people on the team and
what skills are necessary.
Prepare contracts for vendors who are participating
in the project.
Control
For project managers, driving the project
includes:
Monitor the progress of the project against the
plan.
Communicate with the project team and
stakeholders.
Form the project team and attend to its health.
Maintain the cost-schedule-quality equilibrium.
Take corrective action to keep the project on
track.
Risk Management Because every project is unique, every project
includes a high degree of uncertainty.
Risk management is the systematic practice of
identifying and reducing the threats that exist in
the project and the project’s environment.
Planning for risk begins during the development
of the business case and continues through
definition and planning as each successive
function provides a more detailed view of the
project.
Quality Management
Practices developed and established within the
quality discipline (as defined by Deming, Crosby,
et al.) can be applied to the project management
discipline.
This integration begins as the project is conceived
and carries forward until the outcome of the
project is created and is accepted by the customer.
These practices focus on clearly understanding
what the customer wants and consciously planning
to deliver it, including methods for ensuring the
product will be correctly built.
Close Out
Project completion goes beyond delivery of
the product.
A significant goal of project close out is
capturing the lessons of the project so that
they can be passed on to the organization.
PROJECT
MANAGEMENT
IN TODAY’S
SCENARIO
PROJECT SUCCESS: THE TRIPLE CONSTRAINT
COST-SCHEDULE-QUALITY Equilibrium or Triple
Constraint.
These three variables define the overall goals of
a project; therefore, any project that is “on time,
on budget, high quality” is declared a success.
Achieving the proper balance of cost, schedule,
and quality is beyond the control of the project
manager alone.
PROJECT MANAGEMENT AS A STRATEGIC STRENGTH
Project Management has evolved as a Strategic
Strength because of the constant change that
comes from rapidly growing computing power and
global competition, creating an ever-growing web
of change.
This climate of ever-faster change has created
new challenges and new opportunities.
All firms are challenged to keep up with the pace
or risk being left behind.
Project Management is a Growth Industry
Projects are temporary and produce unique products.
Both of these characteristics make managing projects
not just difficult, but different from managing ongoing
operations.
This discipline is becoming a necessary skill in most
organizations.
The root cause of the growing use of project
management is the increasing rate of change in our
economy and our places of work.
PROJECT MANAGERS MUST BE LEADERS Effective project managers are able to:
Communicate a vision.
Motivate and inspire the team.
Build trust within the team.
Influence stakeholders beyond the project team.
Make abstract things concrete.
Demonstrate determination.
Manage and resolve conflict.
Know when to make a decision.
Maintain the big picture perspective while organizing
details.
PROJECT ORGANIZATION
Project Organization
Organization Structure is concerned with the
allocation of task and establishment of
Authority-Responsibility Relationship between
the members of the organization.
Broadly Organizational Structure can be of
three types, viz. Functional Organization
Product Organization
Matrix Organization
Functional Organization
General Manager
Manager (Finance)
Manager (Productio
n)
Manager (Personnel
)
Manager (Marketing
)
Functional OrganizationMERITS
Suitable for Smaller Organizations that offer a
limited line of Products.
DEMERITS
Ineffective Controlling
Difficulty to fix accountability and difficult to
judge the performance of the members.
Product Organization
General Manager
Manager (Food
Products)
Manager (Pharmacy Products)
Manager (Cosmetics
)
Manager (Health
Products)
Product Organization
MERITS
All activities, skills and expertise required to
produce and market a particular product are
grouped under a single head.
Better Coordination and a higher level of
performance
DEMERITS
Subordination of organizational interest to
personal interest
Matrix Organization
Fu
nctio
nal R
espo
nsib
ility
General Manager
Manager (Finance)
Manager(Production)
Manager(Personnel)
Manager(R & D)
Project Manager ‘A’
Project Manager ‘B’
Project Manager ‘C’
Project Responsibility
Matrix Organization
Combine merits of Functional and Product
Organization
Suitable for “Project-driven” Organizations.
Project Manager has the total responsibility
and accountability for making the project a
success.
Functional Manager is responsible to maintain
functional excellence in all the projects.
Success functioning of a Matrix Organization
requires:
Coordination of Project and Functional
Managers
Both of Project and Functional Managers
should provide inputs to planning
The horizontal line of control must be allowed
to operate freely as a separate entity except
for administrative purpose.
MERITS
Sharing of Authority and Responsibility
between Project Managers and Functional
Managers results in Synergy.
Optimum Resource Utilization
Maximum Control of Project Manager over
Project
Top Management can devote more attention
for planning
Sharing of Knowledge
DEMERITS Conflicts and Power Struggle between the
Project Department and Functional
Department
Danger of Dual Reporting
Duplication of Efforts
More Discussions than Actions
Costly to implement Matrix form of
Organization
Greater focus on inter-personnel relationship
and organizational development
Modified Matrix Organization
General Manager
Manager (Finance)
Manager(Production)
Manager(Personnel)
Manager(R & D)
Project Manager ‘A’
Project Manager ‘B’
Project Manager ‘C’
Project Responsibility
Fu
nctio
nal R
espo
nsib
ility
Director(Projects)
Pure Project Organization
Project Manager
DesignEngineering
Research
Procurement
Production
Pure Project Organization Project Manager in in total control of all other
departments.
Suitable if organization has a complex project
whose resource requirements are large.
Every project is treated as a separate entity.
Costly affair since separate human and physical
resources are to be assigned and maintained for
each projects.
Selection of Project Organization Structure
Condition Suitable Organization Structure
Project Driven Enterprise Matrix Organization Structure
Stable and Repetitive Environments
Functional Organization Structure
Non-Routine ProjectsDepartmental Project Management
Structure
Labour Intensive ProjectsPure Project Organization Structure,
Matrix Organization Structure
Projects involving High Complexity and requiring
Huge ResourcesPure Project Organization Structure
Work Breakdown Structure
(WBS)
Work Breakdown Structure (WBS)
A process by which the whole project is
divided (i.e. broken down) into various sub-
projects, the sub-projects into various tasks,
the tasks into various sub-tasks and finally the
sub-tasks into work-packages.
The WBS and the constituent work-packages
become the basis for project planning,
scheduling and controlling.
Types of WBS
Product Oriented WBS
The project is sub-divided in to sub-projects on the
basis of ‘products’. And so on…
Functionally Oriented WBS
The project is broken down on the basis of
functional departments (or functional tasks). And
so on…
In practice, a combination of product oriented
and a functionally oriented WBS can be used.
Organization Breakdown Structure
The project organization can be broken up in
to several groups, sub-groups, individuals etc.
The breaking down of project organization is
done in such a way that an individual or a
group of individuals can be identified with the
work packages arrived at as per WBS..
(Integrating WBS with OBS)
PM Tools and Techniques
Project Management Tools and Techniques
Matrix key:
B Brainstorming
F Fishbone/Ishikawa Diagrams
C Critical Path Analysis Flow Diagrams
G Gantt Charts
*** Main Tool
** Optional / Secondary Tool
* Sometimes Useful
1. Brainstorming Process
Define and agree the objective.
Brainstorm ideas and suggestions having agreed
a time limit.
Categorize / Condense / Combine / Refine.
Assess / Analyze effects or results.
Prioritize Options / Rank list as appropriate.
Agree action and timescale.
Control and Monitor follow-up.
2. Fishbone / Ishikawa Diagram
Ishikawa's diagram became known as a fishbone
diagram, obviously, because it looks like a fishbone.
Fishbone diagrams are chiefly used in quality
management fault-detection, and in business
process improvement.
The model is also very useful in project management
planning and task management generally.
Fishbone diagrams are very good for identifying
hidden factors which can be significant in enabling
larger activities, resources areas, or parts of a
process.
Fishbone diagrams are also called 'Cause and Effect
Diagrams' and Ishikawa Diagrams, after Kaoru
Ishikawa (1915-89), a Japanese professor
specializing in industrial quality management and
engineering who devised the technique in the
1960s.
For each project the main categories of factors are
identified and shown as the main 'bones' leading to
the spine.
Into each category can be drawn 'primary' elements
or factors (shown as P in the diagram), and into
these can be drawn ‘secondary’ elements or factors
(shown as S).
Cause and Effect Diagram
3. Project Critical Path Analysis(Flow Diagram or
Chart) 'Critical Path Analysis' sounds very complicated, but
it's a very logical and effective method for planning
and managing complex projects.
A critical path analysis is normally shown as a flow
diagram, whose format is linear (organized in a line),
and specifically a time-line.
Critical Path Analysis flow diagrams are very good
for showing interdependent factors whose timings
overlap or coincide.
Example: Critical Path Method
4. Gantt Chart
Gantt Charts are extremely useful project
management tools.
The Gantt Chart is named after US engineer and
consultant Henry Gantt (1861-1919) who devised
the technique in the 1910s.
Gantt charts are excellent models for scheduling
and for budgeting, and for reporting and presenting
and communicating project plans and progress
easily and quickly.
Practical Application
These charts are generally introduced during the
planning and scheduling stage of projects
From beginning to the end, the charts force us to:
Make a realistic assessment of the end-time of the
project.
Sequence our tasks (or phases, or activities) - one after
the other, as well as in parallel.
Think in terms of task dependencies - which task is
dependent on what.
Concentrate on the necessary resources, both when
and where, throughout the run of the project.
Example: Gantt Chart
Example: Gantt Chart
5. Run Chart
A run chart, also known as a Run-sequence plot
is a graph that displays observed data in a time
sequence.
Often, the data displayed represent some aspect of
the output or performance of a manufacturing or
other business process.
Run charts are analyzed to find anomalies in data
that suggest shifts in a process over time or special
factors that may be influencing the variability of a
process.
6. Responsibility Assignment Matrix
A Responsibility Assignment Matrix
(RAM), (also known as RACI matrix or
Linear Responsibility Chart (LRC)),
describes the participation by various roles
in completing tasks or deliverables for a
project or business process.
It is especially useful in clarifying roles and
responsibilities in
cross-functional/departmental projects and
processes.
6.A RACI Matrix
R = Responsible
(People who do the work)
A = Accountable
(People who make sure the work gets done)
C = Consulted
(People who provide input before and during the
work)
I = Informed
(People who are kept informed of progress)
Developing a Responsibility Assignment
Matrix
Step One : Define Your
Deliverables
Step Two : Identify the People
Involved
Step Three : Create Your
Responsibility Matrix
Step Four : Communicate
Step I: Define your Deliverables
Step II: Identify the People Involved
Step III: Create Your Responsibility Matrix
Identify training needs
Coordinate the training
Evaluate the results
Survey current practice
Define new
practice
Locate resources
Prepare training schedule
Re-survey
practices
Analyze results
PM: Kim A A A A
CSM: Ron A R I A R
CEC: Terry R C R R
TC: Nancy I R R
CSS: Reagan R C C R C
CSR: John C C C
Step IV: Communicate
When Responsibility Assignment Matrix is
complete, communicate it to all stakeholders.
It’s a good idea to post it in an area where
people will see it.
Used effectively, the RAM helps people
understand what they should be doing at all
stages of the project.
6.B RACI-VS Matrix
Responsible
Accountable
Consulted
Informed
Verifier
Signatory
Responsible
Accountable
Consulted
Informed
Out of the Loop (or
Omitted)
6.C RACIO (CARIO)
6.D DACI
Driver
Approver
Contributors
Informed
6.E RSI Matrix
Responsible
Sponsor
Informed
6.F PARIS Matrix
Primary
Assigned
Review Required
Input Required
Signature Required
6.G PACE Matrix
Process Owner
(Process Leader)
Approver
Consulted
Executers
7. Participatory Impact Pathways Analysis
Participatory Impact Pathways
Analysis (PIPA) is a project management
approach in which the participants in a
project (project and program are used
synonymously from now on), including
project staff, key stakeholders and the
ultimate beneficiaries, together co-
construct their program theory.
8. Logical Framework Approach
The Logical Framework Approach (LFA) is a
management tool mainly used in the design,
monitoring and evaluation of international
development projects.
It is also widely known as Goal Oriented Project
Planning (GOPP) or Objectives Oriented Project
Planning (OOPP).
The Logical Framework Approach (Rosenberg &
Posner, 1979) was developed by Practical Concepts
Incorporated in 1969 for the United States Agency
for International Development (USAID).
Logical Framework Approach: Illustration
Narrative Descriptio
n
Objectively Verifiable Indicators
(OVIs)
Means of Verification (MoV)
Assumptions
Activities
Outputs
Purpose
Goal
9. Financial Tools
Types of labour costs to be incurred during the
project
Items of equipment needed to deliver the
project
Various materials needed by the project
Unit costs for labor, equipment and materials
Other costs types such as administration
Amount of contingency needed
10. Project Health Check
Developed by Professor Jaafari.
A project and or program is subject to continuous
change and evolution.
The actual performance of the team on a given
project can be assessed through the project health
check (PH-Check).
The focus of PH-Check is on managerial capabilities
and actual state of practice on a given project at the
given time.
Project Success
Key Concern Area:
Complexity
Uncertainty
Risks
Success depends on:
Creative – Reflective Skills
Smart Tools
Tailored Factors
Focus: Project Health Check
Project Health Assessment Framework
(A) Business and Strategic Assessment Criteria
Customers and Markets
Stakeholders
Technology
Facility Design and Operational Requirements
Supply Chain System
Learning and Innovation
Finance
Project Delivery
Risk and Due Diligence
(B) Project Implementation Assessment Criteria
Governance and Leadership
Engineering, Detailed Design and Specifications
Procurement, Transportation and Warehousing
Planning and Control
Team Performance
Information and Communications Management
Quality Management
Offsite Management
Risk Management
Project Development
Iterative Development
