lecture pm functions importance

8/12/2019 Lecture Pm Functions Importance

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INTRODUCTION TO PROJECT

MANAGEMENT Meaning : Project management is a system of procedures,

practices, technologies and know how that enables the planning,organising, staffing, directing and controlling of projectactivities to successfully manage a project.

It is defined as “The application of knowledge, skills, tools andtechniques to project activities in order to meet projectrequirement.”

• “The art of directing and coordinating human and materialresources throughout the life of a project by using modernmanagement techniques to achieve predetermined objectives ofscope, cost, time, quality and participation satisfaction”



ELEMENTS OF A SUCCESSFUL

PROJECT

Has been finished on time.

Is within its cost budget.

Performs to technical/performance standardswhich satisfies the end user.



Causes of project failure

The customer’s conditions or satisfaction have not beennegotiated.

The project no longer has a high priority

The schedule is too optimistic.

The project plan is not used to manage the project.

Sufficient resources have not been committed

Project status is not monitored against the plan

No formal communication plan is in place

The project has lost sight of its original goals.

There is no change management process in place.



3 Ws OF PROJECT

MANAGEMENT

What : Scientific application of modern

techniques and tools.

Whom : in planning, financing, implementing,

monitoring, controlling and coordinating

unique activities of project

Why : to produce desirable outputs in

accordance with predetermined objectives

within constrains of time and cost.



P r o j e c t M a n a g

e m e n t P

r o j e

c t M a n a g e m e n t

MANAGEMENT

Knowledge, skills, tools and techniques

PROJECT ACTIVITIES

Conception, design, Implementation, Commissioning

SUCCESSFUL PROJECT

Within planned time, resource, scope and quality



THE SCOPE TRIANGLE

Resources

Project scope and

quality



PROJECT PARAMETERS

Defining project scope

Defining quality

Managing time Managing cost

Managing resources



Project Management Functions

Project management responsibilities Integration management

Processes required to ensure that elements of the project are properly coordinated

Consists of project plan development, project planexecution, and overall change control

Scope management

Processes required to ensure that all the work required,and only the work required, is included to complete the

project successfully

Consists of initiation, scope planning, scope definition,scope verification, and scope change control



Time management

The processes required to ensure the project is completed ina timely way

Consists of activity definition, activity sequencing, activityduration estimating, schedule development, and schedulecontrol

Cost management

The processes required to ensure the project is completed

within the approved budget Consists of resource planning, cost estimating, cost

budgeting, and cost control



Quality management

The processes required to ensure that the project satisfies

the needs for which it was undertaken

Consists of quality planning, quality assurance, and qualitycontrol

Human resource management

The processes required to most effectively use the people

involved in the project Consists of organizational planning, staff acquisition, and

team development



Communications management

The processes required to timely and appropriatelygenerate, collect, disseminate, store, and ultimatelydispose of project information

Consists of communications planning, information

distribution, performance reporting, and administrativeclosure

Risk management The processes concerned with identifying, analyzing,and

responding to project risk

Consists of risk identification, risk quantification, riskresponse development, and risk response control



Procurement management

The processes required to acquire goods and

services from outside the organization Requires good relations with companies and

individuals in the “supply chain”

It consists of procurement planning, solicitation

planning, solicitation, source selection, contractadministration, and contract closeout

Requires clear understanding of costs and timing(how quickly goods and services can be

delivered)

Requires common understanding of quality controlissues



BENEFITS OF PROJECT

MANAGEMENT

Clear description of work to be performed

Responsibilities and assessment of tasks

Time limit for task completion

Measurement of accomplishment against plans is possible Problems are exposed in advance allowing corrective action

Objective that cannot be met are identified early



IMPORTANCE OF PROJECT

MANAGEMENT

Project Management was developed as a result of serving and

fulfilling a special need.

Due to rapid changes in business environment, now it is nolonger a special need management rather it has become a

standard way of doing business.

Increasing %age of firm’s efforts are now being devoted to projects



Importance Of Project Mangement

Factors leading to the increased use of project

management:

Compression of the product life cycle

Knowledge explosion

Global Competition (planet, people, profit)

Corporate downsizing

Increased customer focus

Small projects represent big problems



Importance of Project Management

Keeping in view the shorter PLC

it is imperative to keep constant chain of new products in the pipeline.

Place the product in the market before competitor.

Common rule of thumb in High tech product development is that a

6 months delay can cause 33% loss in product revenue share.

Time to market new products is indispensable

Due to the velocity with which technology is changing.

Speed is also becoming a competitive advantage

Because more and more organizations are relying on cross

functional project teams and project management methods to get

new products and services to the market as quickly as possible.




Global Competition

Transformation from national to global economy has led todramatic technological changes or innovations.

Which created tremendous pressure on quality improvement and costcontainment.

Open market demands not only cheaper products but also better products and services




Knowledge Explosion

Growth and advancement in New Knowledge

Increased the complexity of projects due to latest

advances. E.g., buliding a road 30 years ago was somewhat simple

process.

Today, the complexity in each area has increased

Including materials, specifications, codes, aesthetic,

equipment and required specialists.




Basic project work has become more complexrequiring greater degree of coordination.

Existing products and services have also becometechnologically complex:

In today’s digital world, you will hardly find a product that does not contain at least one micro-chip.

project complexity has increased the need to integratedivergent technologies.




Corporate Downsizing

Focus in the past on growth and big is better--- organizations

began to realize that big is also more costly.

In the last decade or so, businesses have restructured their

organizational life or structure.

For the survival of firms, downsizing or rightsizing if youare still employed, and sticking to core competencies have

become necessary.




Now, middle management has just become a skeleton of the

past.

Due to the fact that change is constant, Project management

has replaced the middle management as a way of ensuring thatthings get done.

You will rarely or hardly find any major project performed

totally in house.

Companies outsource significant segments of project and

project managers have to manage not only their own people

but also their counterparts in different organizations.



Increased customer focus Increased competition has placed a premium on

customer satisfaction.

Customer no longer simply settle for generic productsand services.

They want customized products and services thatcater to their specific needs.

This mandate requires a much closer workingrelationship between provider and receiver.



Increased customer focus

Account executives and sales reps are assuming moreof Project manager role as they work with theirorganization to satisfy the unique needs and requestsof clients.

This change has also prompted the development ofcustomized products and services.

Project management is critical both to development ofcustomized products and services and to sustainlucrative relationship with customers.



Rapid development of third world

and Closed Economies. The collapse of the soviet empire and gradual

opening of Asian communist countries have created

an expansion in built-up demand within these societies for

all manner of consumer goods and infrastructuredevelopment.

Western firms are scrambling to introduce their

products and services to these new markets

Many firms are using project management techniquesto establish distribution channels and foreign bases ofoperations.



Small projects represent big

problems

The velocity of change required to remaincompetitive or simply keep up has created anorganizational climate in which hundreds of projects

are implemented concurrently.

This climate has created a multi project environmentand plethora of new problems.

Sharing and prioritizing resources across a portfolioof projects is a major challenge for seniormanagement.



Small projects represent big

problems Small projects typically carry the same or more risk as do large

projects.

Small projects are perceived as having little impact on the bottom line because they not demand large amounts of scarceresources. Because so many small projects are goingconcurrently and because the perception of inefficiency impactis small, measuring inefficiency is usually non-existent.Unfortunately many small projects soon add up to large sumsof money.

Many customers and millions of dollars are lost each year onsmall projects in product and service organization.

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