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Methodology of this Course on Project

Management

To acquaint course participants with all the salientaspects of project management in accordance with the

present body of scientific literature and research on this

challenging and interesting field of management science

To show that the subject of project management has

evolved quite rapidly into a substantive body ofknowledge, a proper understanding of which is

indispensable for sucessfully managing the modern

enterprise

To show and encourage the course participants that the

theoretical knowledge acquired in this course can - withthe appropriate context-related modifications - be applied

to real-life situations in business, public-sector and non-

profit enterprises

To stimulate interest in project management as a

prospective career option

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Evaluation of Course Participants

acquiring knowledge is good

applying knowledge is better

analytical approach, critical thinking, inquisitive nature

broad subject focus

Quizez (important definitions)

Assessment (each course participant is expected to show that he or she has a

broad understanding of project management)

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Text Book: David I. Cleland / Lewis R. Ireland, Project

Management: Design and Strategic Implementation, 4th ed.,

Optional Literature: 1.Gray, Clifford E. / Larson, Erik W.: Project

Management: The Managerial Process, 2. ed., 2003

2.Gregory T. Haughan, Effective Work Breakdown Structures,Management Concepts, 2002.

3. Harold Kerzner, Project Management Workbook to

Accompany Project Management: A Systems Approach to

Planning, Scheduling and Controlling, John Wiley & Sons, 2000.

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Course Highlights Introduction to project management

Strategic relevance of project management

Organizational aspects

Selecting projects in a complex environment of influencing factors

Defining and planning projects

Mathematical techniques used in project planning and execution

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Course HighlightsTechniques used for evaluating and controlling projects and

managing project information

Leading, communication and teamwork in projects

Cultural aspects of interest in projects

International project management

Insights into various aspects of project management fromthe perspective of Pakistani and foreign project

practitioners

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Indicators of Emerging Interest in

Project Management

Very large number of publications (books, articles, etc.) and appearance

of journals on the subject of project management since the 1950s

Adoption by many business schools throughout the world of the subject of projectmanagement as an integral element of their curricula

Many business corporations, public-sector enterprises and non-profit organizationsare expending large sums of money for project management training courses,seminars and workshops for their staff

Comparatively good employment prospects for project management experts andpractitioners

Associations seeking to promote project management (e.g. The Project ManagementInstitute with representation in 150 countries - including three chapters in Pakistan -and with a global membership presently standing in excess of 150,000(see http://www.pmi.org)

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What is a Project?A project is a sequence of unique, complex and connected activities having one goal or

purpose that must be completed by a specific time, wthin budget and

according to specification

(Robert K. Wysocki / Robert Beck Jr. / Daniel B. Crane, Effective Project Management, John Wiley &

Sons, 2002, p. 65)

A project is a complex, nonroutine, one-time effort limited by time, budget, resources, and performance

specifications designed to meet customer needs

(Clifford F. Gray / Erik W. Larson, Project Management: The Managerial Process, 2. ed., p. 15)

Projects are ad hoc, resource-consuming activities used to implement organizational strategies, achieve

enterprise goals and objectives, and contribute to the realization of the enterprises mission

(David I. Cleland / Lewis R. Ireland, Project Management: Design and Strategic Implementation, 4th ed., p.

10)

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Examples

Developing a new product or service

Effecting a change in structure, staffing or style

of an organization

Developing or acquiring a new modified

information system

Constructing a building or infrastructure

Implementing a new business process orprocedure

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Project Programme - ProcessProgrammes are resource-consuming

combinations of organizational

resources which have a common

purpose in supporting the

enterprises purposes

A programme could encompassseveral projects

A process is a system of operations inthe design, development and

production of something ... inherent

in such a process is a series of

actions, changes, or operations that

bring about an end result

A B

D EC

PROGRAMME X

David I. Cleland / Lewis R. Ireland, Project Management: Design and Strategic Implementation, 4th ed., pp. 10 & 39.

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The Defining Characteristics of a Project ESTABLISHED OBJECTIVE

All projects must have at least one prespecified objective

UNIQUENESS

No two projects are completely alike. Always there will be at least one unique defining feature

LIFE SPAN

All projects have a beginning and end point in time

COST

All projects incur a resource cost in terms of capital expenditure, manpower requirement etc.

TECHNICAL PERFORMANCE REQUIREMENTS

All projects must meet certain prespecified performance requirements, for e. g. development of a newproduct or service having a desired minimumquality standard level

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Project CategoriesProjects can be grouped together in categories, of which many kinds have been

proposed in the literatue on project management. Examples:

Compliance, Strategy and Operational Projects

Goods, Services and Organizational Processes

Small, Medium and Large-Scale Projects

Low, Medium and High-Risk Projects

Immediate, near and long-term ROI projects

Low, medium, high as well as mature / immature technology-based projects

Low, medium, high as well as no margin and loss-making projects

Priority-based projects defined in terms of urgency of need for business, customer and

meeting market requirements

Size in terms of capital expenditures, duration, manpower requirement, geographic span ora combination of these

David I. Cleland / Lewis R. Ireland, Project Management: Design and Strategic Implementation, 4th ed., pp. 92-93.

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Levels of Project Complexity

Examples of Simple Projects

undertaken by individuals and/or groups

Redesigning your sitting room

Writing a research paper

Organizing a disaster relief collection

in your neighbourhood

Organizing a painting exhibition atyour

school or university

Examples of Complex Projects

undertaken by commercial enterprises

and/or public-sector organizations

Planning and executing construction

of a

hydroelectric or atomic power station

Erecting a dual-purpose (road, rail)

bridge over a major river

Organizing a large-scale internationalindustrial exhibition

Designing an ocean cruise liner

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Selected Factors Which Can

Influence Big Projects Nature of the Undertaking

Scope

Complexity

Time

Capital requirement

Manpower requirement

Technology

Specialization and expertise

Information

Planning, Organization,

Optimization

Priorities

Strategic Fit

Risk and uncertainty

Evaluation and controlling

Adaptibility

Cultural considerations

(especially in regard to

international project

undertakings)

Conflict potential,

leadership and motivation

Stakeholder interests

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Projects in a Historical

PerspectiveProjects are presumably as old as mankind and the community

Projects in antiquity and the medieval period tended, by and large, to be architectural in

nature

Selected examples of prominent projects in the historical context:

The seven wonders of the ancient world

The gothic cathedrals of western Europe

The palaces, mosques and mausoleums of the Mughals and Ottomans

Temple complexes in India and South-East Asia and Central and South America

Castles, fortresses, military campaigns

Since the medieval period - and in consideration of the industrial revolution, advancements in

technology, enhanced resource availability, knowledge, specialization and managerial capabilities

major projects have become more complex and diverse in nature and scope

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Types of Major Contemporary

Projects Transport Infrastructure (roads, rail, bridges, canals, air- and seaports)

Water and Electricity (irrigation Systems, hydroelectric dams, nuclear andconventional power generation plants)

Industrial (large factory complexes)

Architectural (high-rise buildings and skyscrapers)

Military (design and development of major weapon systems, war)

Health (finding cures for common diseases)

Education (building universities and schools)

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Selected Examples of Major

Historically Modern Projects Transport Infrastructure (Panama and Suez Canals, the channel tunnel between Great

Briain and France)

Water and Electricity (Three-Gorges River Project in China)

Industrial (Large factory complexes)

Architectural (The Empire State Building and World Trade Centers in New York City)

Military The Manhattan Project

Health (AIDS, Hepatites Yellow Fever etc)

Education (Big university complexes)

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Examples of Mega-Projects

Undertaken or Planned in Pakistan Tarbela and Mangla dams

Kalabagh dam (?)

Indus River basin irrigation

projects

Karakorum Highway

Islamabad Lahore Motorway

Jinnah International Airport at

Karachi

Kot Addu power generation plant

Karachi Nuclear Power Plant

Karachi Steel Mills

Saindak copper mine

Port Qasim

Shah Faisal Mosque

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Background Information on Project

Management

Project Management is a comparatively recent addition to management science

Management, in some manifestation or the other, has in fact been excercised inthe planning and execution of complex project undertakings for thousands ofyears

Project Management tools and techniques were first systematically applied bylarge-scale, complex projects by the United States Department of Defence and inthe aerospace industry

Project Management arose out of the need to effectively and efficiently manage

complex defence-related projects for which conventional managerial techniqueswere not sufficiently adequate

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What is Project Management (?)Project Management is a method and a set of techniques

based on the accepted principles of management used for

planning,

estimating and controlling work activities

to reach a desired end result on time

within budget and according to specification

Robert K. Wysocki / Robert Beck Jr. / David B. Crane, Effective Project Management, 2. ed., John Wiley & Sons,

2002, p. 79

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Phases of Project Management

Defining

PROJECT

X

Planning

Executing

Controlling

Closing

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The Functions of Project

ManagementControl

Who judges results and by what standards?

Planning

What are we aiming

for and why?

Organizing

Whats involved and

why?

Directing

Who decides what

and when?

Motivation

What brings out the

best in people?

Project

Resources

David I. Cleland / Lewis R. Ireland, Project Management: Strategic Design and Implementation, 4th ed., p. 42.

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A Typical Project Life-Cycle

Phase 1: Conceptual Phase 2: Planning Phase 3: Execution Phase 3: Termination

Dollarsof

Manhours(levelofE

ffort)

Identify Need Establish Feasibility

Identify Alternatives Prepare Proposal Develop Basic

Budget and Schedule Identify Project Team

Implement Schedule Conduct Studies and

analyses Design System Build/test prototypes Analyze results Obtain approval for

production

Procure Materials Build/ test tooling Develop support

requirements Procure System Verify Performance Modify as required

Train functional

personnel Transfer materials Transfer

responsibility Release resources Reassign project

team members

David I. Cleland / Lewis R. Ireland, Project Management: Design and Strategic Implementation, 4th ed., p. 50.

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Managerial Actions in the Project Life-Cycle Phases(1)Conceptual Phase

Determine that a

project is needed

Establish goals

Estimate the resources

that the organization

is willing to commit

Sell the organization

on the need for a

project approach

Make key personnel

appointments

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(2) Planning Phase

Actions to be taken

Define the project organization approach

Define the project targets

Prepare the schedule For the execution

Phase

Define and allocate tasks and resources

Build the project team

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(3) Execution Phase

Perform the work of the project i.e.

design, construction, production,

Site activation,

testing, delivery etc.

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(4) Termination Phase

Assist in transfer of Project product

Transfer human and non-human resources

to other organizations

Transfer or complete Committments

Terminate project

Reward personnel

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Project Resource Requirements

Over Time

LevelofResou

rce

require

d

Conceptual Definition Production Operational Divestment

Budget($

)

Marketing

perso

nnel

assig

ned

Engineeringpersonnelassigned

Time

David I. Cleland / Lewis R. Ireland, Project Management: Design and Strategic Implementation, 4th ed., p. 51.