# 01. project management

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Project ManagementProject Management

RajeshRajesh DhakeDhake


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Agenda

Pictorial Illustration

Concepts (Definition, Examples,Characteristics, Taxonomy)

Project Development Life Cycle (Stages) Project Basic Concepts

Project Manager


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Time to think

Project


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ConceptsConceptsDefinitionDefinitionExampleExample

CharacteristicsCharacteristics

TaxonomyTaxonomy


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Project - Definition

A Project is a temporary endeavor undertaken to

accomplish a unique purpose A project is any undertaking with a defined starting

point and defined objectives by which completion is

identified: PMI

A combination of human and non-human resources

pooled together in a temporary organization to achieve

a specific purpose PMI


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Project - Definition

A temporary endeavor undertaken to

create a unique product or service. Project Deliverables

Any measurable, tangible, verifiable

output that must be produced to completethe project.


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Examples of Project

Personal

Planning a wedding, planning a trip

Painting a house, furniture work

Entertainment

Making a movie or a serial

Events

Filmfare / IIFA / Grammy Awards Exhibitions, Fares

Workshops, Seminars, Conferences


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Examples of Project

Educational

Admissions for BBA/BFT course Conducting examinations

Infrastructural Build a tunnel (Katraj), dam, bridge (flyovers) Golden Quadrilateral, Pune Mumbai Expressway

Industrial New Product Development (TATA Nano) New Production Facility (General Motors,

Talegaon)


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Examples of Project

Business

Implement a TQM system

Develop a management information system

Financial Services

Raising money through IPO / Public Issue

Launching a New MF Scheme

Setup new branch for a bank Loan syndication


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CHARACTERISTICS

Mission or Set of Objectives - fixed mission / set ofobjectives, a project is completed as soon as the mission is

accomplished Uniqueness - no two projects are exactly similar

Life span - cannot continue endlessly

Life cycle - The project lives between the two cut-off pointsand the time-span is known as Project life cycle (introduction,growth, maturity, decay)

Single entity-one responsibility center

One Time Activity non-repetitive

Team work it calls for team work


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CHARACTERISTICS

Risk & Uncertainty - depends on how it has passedthrough various life-cycle phases, many changes throughout

its life, uncertainty of the next stage

Customer Specific Made to order, customer stipulatesvarious requirements

Unity in diversity - Variety Subcontracting Hit is inevitable and is done to a high

level


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Project Classification (Taxonomy)

2. Ownership

Private Sector

Public Sector

Joint Sector

International


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3. Industrial Need for Project (NBMEIDRR)

New

Balancing

Modernization

Expansion

Integration

Diversification

Replacement

Rehabilitation


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Categories of Projects

i. New projects - for setting up new units

ii. Balancing projects take care of capacity

imbalancesiii. Modernization projects - It can be for any one or

more than one of the following objects

a. Changing obsolete machineryb. Enlarging the product mix/product range to meet

changing requirements of the market

c. Reducing the manufacturing cost or for improving the

quality of the productd. Changing the requirement of raw material (shifting from

present raw material to some other raw material)


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iv. Expansion projects - For increasing thecapacity of existing units

v. Background integration projects Formanufacturing certain products which arebeing used as raw material by the existingunit.

vi. Forward Integration projects formanufacturing certain products whichrequire the products of the existing unit asraw material


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vii. Diversification projects - For

manufacturing new products by existingunits

viii. Replacement projects replacing old /

depreciated / worn out assets with newassets

ix. Rehabilitation projects - for reviving sick

units and making them viable to competewith normal / healthy units


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4. Size (Investment)

Mega Scale (Above 1000 crores)

Large Scale (Between 100 crores & 1000 crores)

Medium Scale Between (10 crores & 100 crores)

Small Scale (Below 10 crores)


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5. Level of Technology

High Tech (Space, Nuclear, Nanotechnology)

Conventional (Steel, Sugar, Cement)

Low Tech (Soaps, Detergents)

6. Service Oriented (FI Classification)

Welfare

R & D

Social

Educational


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7. Speed of Execution

Normal (Adequate time is allowed)

Crash (Additional costs to gain time)

Disaster (Emergency / Urgent)

8. Techno-economic

Factor Intensity Oriented (Capital Intensive /Labour Intensive)

Causation Oriented (Demand / Raw MaterialBased)


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Plan, Programme, Project, Work Package

National / Corporate plan with targets for growth (threeyears roll-on-plan of NEG-Micon)

Health program, educational program, science andtechnology program (100 MW of Wind Farms in 2006-07)

Power plants, school, hospitals, housing projects (5 MWWind Farm to be completed by Dec 2006 for XYZ company)

Water supply and distribution package, power supply anddistribution package (Supply, Installation and Commissioning of750 KW, WEG for XYZ)

Award of water supply contract, construction offoundation (Tower Procured, Transported and Erected)

Excavation, laying of cable, preparation of drawings,preparation of specifications (Foundation for tower completed)


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Project Basic Concepts


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Concepts

Project Management

What makes project management different is its approach to taskwhich besides its specifications, is fully bound by time, cost andperformance targets

Success of project It must get completed

Must be completed within budget

Must be completed within allocated time Must perform to satisfaction


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Success of Project (Project Parameters)

Project Parameters

Quality

Specifications Budget

Cost Time

Schedule


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Concepts

Goal

Project Scope

Objective Tasks

Activity

Duration

Terminology


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Concepts

Goal

What exactly needs to be done

Project Scope

Documented set of standards and criteria that the customer

defines as successful completion

Objective

A combination of tasks that concern specific functional groupsor structural areas


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Concepts

Task

A combination of activities that lead to the achievement of adefinable result

Activity

A time-consuming piece of work with a definite beginning and

end

Duration

The elapsed time from the beginning to the end of an activity,

task or objective


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Concepts

Project Constraints


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TOOLS AND TECHNIQUES FOR

PROJECT MANAGEMENT

Techniques are scientific part but there is also artand politicsofmanagement

Techniques provide only as to whatis to be done but howvery muchdepends on additional knowledge and experience

Some effective techniques employed :

Project selection --- Cost benefit analysis, Risk and sensitivity analysis

Project execution --- Work break down structure (WBS)

Project scheduling and coordination -- Bar charts, PERT/CPM

Project cost -- Budgetary control


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TOOLS AND TECHNIQUES FOR

PROJECT MANAGEMENT

Some packages:

PRISM MS PROJECTS

PRIMA-VERA

Network systems and computers have caught

the imagination of project managers due tothe volume, varieties and complexities


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# 01. project management

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