PROJECT MANAGEMENT

CHAPTER - ONE
GENERAL INTRODUCTION
PROF. ANBALAGAN CHINNIAH
PROFESSOR OF ACCOUNTING AND FINANCE
COLLEGE OF BUSINESS AND ECONOMICS
SAMARA UNIVERSITY, SAMARA , AFAR, ETHIOPIA, EAST AFRICA
EMAIL: DR.CHINLAKSHANBU@GMAIL.COM

2017-2018/2010-2011
MBA PROGRAM
SECTION ‘A’ AND ‘B’
COURSE CODE: MBA614
CREDIT HOURS: 3
WORLD WONDERS CONSTRUCTIONS
MANAGEMENET
 COURSE OBJECTIVES
This course is designed to enable students to:
Know basic concepts of project analysis and
planning,
Understand sources of project ideas and project
identification,
Explain feasibility study from different analyses
perspective,
Know mechanisms of project financing,
Prepare project documentation & project appraisal,
Appreciate project implementation, controlling &
evaluation techniques
PROJECT PLAN DISCUSSIONS
 PROJECT
Unique process consisting of a set of
coordinated and controlled activities with
start and finish dates, undertaken to achieve
an objective conforming to specific
requirements, including constraints of time,
cost, quality and resources.

A Project is a planned set of activities

A Project has a scope
A Project has time, cost, quality and resource
constraints
 Cont …
Until 1900, civil engineering projects were
generally managed by creative architects,
engineers, and master builders themselves,
–for example, Vitruvius (first century BC),
–Christopher Wren (1632-1723),
–Thomas Telford (1757–1834) and
–Isambard Kingdom Brunel (1806–1859).
In the 1950s organizations started to
systematically apply project-management tools
and techniques to complex engineering
projects.
 Conti …
Henry Gantt (1861–1919), the father of planning and
control techniques
As a discipline, project management developed from
several fields of application including civil
construction, engineering, and heavy 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
alternatively Harmon gram first proposed by Karol
Adamiecki; and Henri Fayol for his creation of the five
management functions that form the foundation of
the body of knowledge associated with project and
program management.
 Henri Fayol’s Functions of Management
(1841 – 1925)
To Forecast and Plan
 Strategic planning
 Tactical planning
 Operational planning
 Project and program planning
To Project and Program Planning
To Command or Direct
To Coordinate
To Control
 Henri Fayol’s Principles of Management
Division of work
Authority
Discipline
Unity of command
Unity of direction
Subordination of individual interests to the general interest
Remuneration
Centralization
Scalar chain
Order
Stability of tenure of personnel
Initiative
Esprit de corps
 Governance and Management
Governance and management are different
systems that, working together, enable an
organization to achieve its objectives. The six
functions of governance are:
Determining the objectives of the organization
Determining the ethics of the organization
Creating the culture of the organization
Ensuring compliance by the organization
Requiring accountability from management
Designing and implementing the organization's
governance framework
 Conti…
The 1950s marked the beginning of the modern
project management era where core engineering
fields come together to work as one.
Project management became recognized as a
distinct discipline arising from the management
discipline with engineering model.
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.
 conti …
The Critical Path Method (CPM) was
developed as a joint venture
between DuPont Corporation and Remington
Rand Corporation for managing plant
maintenance projects.
The Program Evaluation and Review
Technique (PERT) was developed by the U.S.
Navy Special Projects Office (NSPO) in
conjunction with the Lockheed
Corporation and Booz Allen Hamilton as part
of the Polaris missile submarine program.
 Definition of Project
Project Definition is that given in BS 6079 ‘Guide to
Project Management
This states that a project is

A unique set of coordinated activities, with

definite starting and finishing points, undertaken
by an individual or organization to meet specific
objectives within defined schedule, cost and
performance parameters.
Key Points in Project Set-up and Definition
Create Project Management Plan
(PMP)
Be clear of scope and objectives
Establish clear statement of what is to
be done (WBS)
Establish Risks to be Managed
Establish Costs and Durations
Establish Resources Required
 PROJECT MANAGEMENT
Project management is the application
of knowledge, skills, tools, and
techniques to project activities to meet
the project requirements.
It has always been practiced informally,
but began to emerge as a distinct
profession in the mid-20th century.
 PMI’s A Guide to the Project Management Body of
Knowledge (PMBOK Guide) identifies its recurring
elements
• Project Management processes fall into five
groups:
Initiating
Planning
Executing
Monitoring
and Controlling
Closing
 Conti…
The 4 P's of Project Management
• 1) P for Plan: this refers to all activities that
involve planning and forecasting. At this
stage, the project and/or elements of the
projects have not materialized yet.
• 2) P for Processes : as well documented in
the PMBOK (Project Management Book of
Knowledge), projects consist largely of a
series of predetermined and well-
structured processes.
 Conti…
3) P for People: People are an essential
component of the project's dynamics and a
number of studies show that people are at
the heart of some projects' endemic
problems. In particular, the so-called
"dreadful combination" refers to a mixture
of poor planning and inadequate people;
finally.
4) P for Power which describes all lines of
authority, decision-makers, organigrams,
policies for implementation and the likes.
Project Management Knowledge
Integration
Scope
Time
Cost
Quality
Procurement
Human Resources
Communications
Risk Management
Stakeholder Management
Conti....
 5 Basic Phases of Project Management
1. Project conception and initiation
 An idea for a project will be carefully examined to
determine whether or not it benefits the organization.
 During this phase, a decision making team will
identify if the project can realistically be completed.
2. Project definition and planning
 A project plan, project charter and/or project scope
may be put in writing, outlining the work to be
performed.
 During this phase, a team should prioritize the
project, calculate a budget and schedule, and
determine what resources are needed.
 Conti …
3. Project launch or execution
 Resources' tasks are distributed and teams are
informed of responsibilities.
 This is a good time to bring up important project
related information.
4. Project performance and control
 Project managers will compare project status and
progress to the actual plan, as resources perform the
scheduled work.
 During this phase, project managers may need to
adjust schedules or do what is necessary to keep the
project on track.
5. Project close
 After project tasks are completed and the client has
approved the outcome, an evaluation is necessary to
highlight project success and/or learn from project
history.
 FEATURES OF A PROJECT
Popular project management software
features include:
Project planning and scheduling
Team collaboration
Time tracking
Reporting
Project budgeting
Billing & quotes
Project planning and scheduling

Prioritizing tasks
Agile task management tool
Shared team calendar
Planning and task scheduling tool
 Team Collaboration
File sharing
Team communication
Team dashboards
Sharing the customer data
 Documentation

All data accessible in one place

Quick access to your data
Customer Relationship
Management (CRM) or invoice
automation.
 Reporting
Customizable reports
Project KPI dashboard
Create multiple KPI reports for multiple
purposes:
Shared team dashboard
Financial KPI report
Project performance dashboard
Project Manager dashboard
 Key Performance Indicator
A. Financial Metrics
Profit
Cost
Line of Business (LOB) Revenue
Vs. Target
Cost Of Goods Sold
Day Sales Outstanding (DSO)
Sales By Region
LOB Expenses Vs. Budget
 Key Performance Indicator
B. Customer Metrics
Customer Lifetime Value (CLV)
Customer Acquisition Cost
(CAC)
Customer Satisfaction &
Retention Net Promoter Score
(NPS):
Number Of Customers
 Key Performance Indicator
C. Process Metrics
Customer Support
Tickets
Percentage Of Product
Defects
LOB Efficiency Measure
 Key Performance Indicator
D. People Metrics
Employee Turnover Rate
(ETR)
Percentage Of Response
 To Open Positions
Employee Satisfaction
KPI Report-Matrix View
Dashboard View
Red Alert View
Detail-Level KPI Report
 Resources Management
Schedule your project resources
–A great project management tool
includes a feature for resource
management, outlining all the scheduled
and planned resources and calculating
the cost of their use.
–This helps to avoid over-assignments and
possible conflicts for lacking resources.
 Managing the Project Budget

Budget reports
Project budget dashboard
Time billing and automated
invoicing
Time tracking
Automated invoicing
 Responsibilities of a Project Manager

Business leaders recognize project

management as a specific function
within the organization and hire
individuals specifically trained in this
discipline-i.e., project managers to
handle their organization's project
management needs.
 Conti …

• Project managers can employ various

methods and approaches to run
projects, generally selecting the best
approach based on the nature of the
project, organizational needs and
culture, the skills of those working
on the projects, and other factors.
 Conti …

Managing a project involves multiple

steps
Defining project goals
Outlining the steps needed to achieve
those goals
Identifying the resources required to
accomplish those steps
 Conti …

Determining the budget and time

required for each of the steps, as well
as the project as a whole
Overseeing the actual
implementation and execution of the
work
Delivering the finished outcome.
NEXT TO PROJECT CYCLE