Fundamentals of Project Management

ME751-ELECTIVEChapter-1

Game

Your company is to build a single span bridge using Lego bricks. The span of the bridge is 90 cm and the centre point must be at least 10 cm higher than the base

Bridge must be self-standing and stable enough to be measured

Time is of the essence to the client and to your company

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The Blind Men/Women and the Elephant

Strong opinions Each is partly right All were wrong Not one of them saw the elephant The moral of the story from a project

management perspective…› Many experience or read about an aspect or

element of project management and think they know it ALL

› Accidental Project Managers are out there in great numbers

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Project Characteristics

Constant communication across organizational boundaries

Many people involved, across several functional areas

Sequenced events Goal oriented Has an end product or

service

Multiple priorities Complex and

numerous activities Unique, one-time set

of events Deadlines Start and end dates Identifiable

stakeholders Limited resources and

budget

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When is a Project a Project?

A task or set of work assignments may be done by one or more persons using a simple “to do” list

A task become a project when the characteristics of a project begin to dominate and overwhelm individuals › Unable to meet deadlines, budgets and

corporate expectations

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Project Management

Project management is a method and/or set of techniques based on the accepted principles of management used for planning, estimating and controlling work activities to reach a desired result on time, within budget, and according to the project specifications

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What is Project Management?

Tools/techniques Processes and methodology More than time, cost and scope Hard and soft skills A discipline evolving towards a

profession

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Business and Social Aspects of Project Management

Hard and soft skills› Technical aspects of project management › Interpersonal skills

Influence Politicking Negotiation

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Project Management

Projects and project management are about people and teamwork› Who does what?› Who takes what risk?› Who else is involved or

interested/affected?

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Project Management Challenges

Lack of a common understanding on the question “What is project management???”› Managing stakeholders, expectations,

teams, projects, uncertainty› Measuring project management results› Methodology issues

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Value of Project Management (Why are we doing this?)

Improve project/program/firm performance as measured by efficiency, effectiveness

Competitive advantage through competency

Be more “Successful”

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Value of Project Management (Why are we doing this?)

Proactive vs. reactive Root out ill-conceived, directionless

projects Increase visibility by providing

roadmaps

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Categories of Projects

ProjectNational

InternationalNon Industrial Industrial

Non Conventional High Tech Conventional Low Tech

Mega Major Medium Mini

Grass Root Expansion ModificationNormal Crash Disaster

5-Step Project Management

5 Step Project ManagementPLANNING IMPLEMENTATION

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DEFINE

Identifyproject activities

Estimate time and cost

Sequence Project Activities

Identify Critical Activities

Write Project Proposal

ORGANIZE CONTROL PLAN CLOSE

State the Problem

Identify ProjectGoals

List theObjectives

Determine PreliminaryResources

Identify Assumptions and Risks

Determine Personnel Needs

Recruit Project MangerRecruitProject Team

Organize Project Team

Assign Work Packages

Define Management Style

Establish Control Tools

Prepare Status Reports

Review ProjectSchedule

Issue Change Orders

Obtain ClientAcceptance

Install Deliverables

Document theProject

Issue Final Report

Conduct Post-ImplementationAudit

Project overview WBS Recruit Criteria Variance Reports Final Report Project network Define Work packages Status Reports Audit Reports Critical Path Assign Work Packages Staff Allocation Reports

Agenda

State the problem Develop project goal Develop project objectives Identify assumptions and risks Identify stakeholders Criteria for project success Project Charter/overview document

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State the Problem/Opportunity

Specific questions must be asked before a project begins:› What is the problem and what are the

opportunities? › Do we really need the project?

If these questions can not be answered, then:› Pick the wrong project› The project will probably not succeed

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State the Problem/Opportunity

Document the need and the benefits to the organization for undertaking the project › Short, crisp and to the point › Descriptor for those who although not directly

involved on the project team are indirectly involved in supporting the project

› A need that must be addressed New product, service, process, facility, or system It may involve opening a new market

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State Project Goal

A statement of purpose and direction helps to direct the course of the project effort› Initiates the project› Serves as a point of reference for settling

disputes and misunderstandings› Clarifies expectations› Helps in justifying requests for resources

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Goal Statements

Action oriented Short and simple Understandable

› Prepare and launch the International Space Station on April 21, 2000, from Cape Canaveral, Florida

› Connect France and England via a covered tunnel and railway under the English Channel, facility to be opened to traffic no later than September, 1996

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Goal Statements

Design and complete pilot testing by March 2002, a product accounting software package that performs basic financial analyses for the company

Obtain a ISO Certification by spring, 2004

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Develop Project Objectives

Objectives represent major components or milestones › Objectives are sub-goals

Roadmap to aid decision makers understand the purpose of the project

Basis for determining project time line and resource requirements

To achieve the goal all objectives must be realized

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Criteria for Evaluating Project Success

Project expectations: Project on time Within budget According to specifications Happy client

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Identifying Assumptions and Risks

Each objective will have its own risks and assumptions

Helps think through the project process and issues associated with execution

Identifies resource needs and issues involving resource availability

Identifies potential delays and the impact of these delays

Potential cost overruns can be predicted and resolved

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Risk Management Template

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Monitoring

Schedule

Response Plan

Owner

ImpactProbability

Risk

Stakeholders

Individual or organisations actively involved in the project or directly or indirectly affected by its execution or results› Roles must be identified at the start of the

project› Needs and expectations must be

communicated and influenced in a positive and constructive manner so that the project will be success for all

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Who are the People Involved?

Owner, Contractor, Consultant (in-house and outside)

Sub-consultants, Subcontractors Suppliers (Vendors) Trade unions End users Operators

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External Issues

Factors within a Project Manager’s sphere of responsibility, but which he or she has no formal control or authority over:› Corporate interests› Operating priorities› Financial interests› Government interests and actions› Public interests› Economic conditions› Social priorities

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External Issues

Factors within a Project Manager’s sphere of responsibility, but which he or she has no formal control or authority over:› Corporate interests› Operating priorities› Financial interests› Government interests and actions› Public interests› Economic conditions› Social priorities

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Stakeholders

How to find them?› Ask who will decide on the success of your

project How to involve them?

› Ask for (appropriate) advice› Get their buy-in to project plans

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Stakeholders

How to work with them?› Active listening› Understand their interests and needs› Keep everyone informed

How to keep them on side?› Respond to concerns › Manage expectations and make

adjustments

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Roles and Responsibilities of PM

Defining and maintaining the integrity of a project Development of Project execution plan Organization for execution of plan Setting targets and development of systems and procedures

for accomplishment of project objectives Negotiation for commitments Direction, coordination and control of project activities Contract Management Non-human resource management including finance. Projecting and problem solving Man management Satisfaction of customer, Government and public. Achievement of project objectives, cash surplus and higher

productivity.

Tools and Techniques for PM

Project Selection:› Cost Benefit Analysis and› Risk and Sensitivity Analysis

Project Execution Planning Techniques:› Work Breakdown Structure (WBS)› Project Execution Plan (PEP)› Project Responsibility Matrix› Project Management Manual

Tools and Techniques for PM Cont.. Project Scheduling and Coordinating

techniques:› Bar Charts› Life Cycle Curves› Line of Balance (LOB)and › Network Techniques

Project progress Monitoring Techniques:› Progress Measurement techniques› Performance Monitoring techniques› Updating, reviewing and reporting

techniques

Tools and Techniques for PM (Cont..) Project Cost and Productivity Control

Techniques:› Productivity Budgeting technique› Value Engineering› Cost Control / WBS

Project Communication and Cleanup Technique:› Control Room and› Computerized information System

Project Life Cycle Phases

1. Conception Phase2. Definition Phase3. Planning and Organizing Phase4. Implementation Phase5. Project Clean-up Phase

1. Conception Phase

Project Idea Generation:› Non-Utilization of Available Funds› Unutilized Plant Capacity› Unutilized Expertise› Unfulfilled Aspirations› Other Sources of Scouting for Project Ideas

An All important phase that give shape to a project

Scouting For Project Ideas

Definition Phase

Raw Materials Plant Size and Capacity Location and Size Technology / Process Selection Project Layout Plant and machinery Electrical and Instrumentation Work Civil Engineering /Construction Utilities – Fuel, Power, and Water Manpower and Organizational Pattern Financial Analysis. Implementation Schedule

2. Planning and Organizing Phase

This Phase involves the Preparation of documents such as ‘Project Execution Plan’ That Includes:1. Project Infrastructure and enabling services2. System Design and Basic Engineering 3. Organization and Manpower4. Schedules and Budgets5. Licensing and Government Clearances6. Finance7. Systems and Procedures8. Identification of Project Manger9. Design Basis, general conditions for purchase and contracts10. Site preparation and Investigations11. Construction Resource and material12. Work Packaging

Implementation Phase

This Phase is of a hectic activity for a project Involves lots of Coordination of different

agencies Requires constant Monitoring and follow-up

for both quantity as well as quality. Needs tactful and high pressure

management This phase includes Detailed Engineering,

Ordering, Delivery, Construction and Erection, Start-up.

Project Clean Up Phase This marks the winding up of the project Drawings, documents, files, Operation

and maintenance manuals are catalogued and handed over to customer.

Acceptance Test / Test or Trial runs / Certification and Handing over the facility to Operations people.

Re-deployment of the Project Work Force . Closing of the Accounts by preparation of

the final bill and payment of amounts due.