1.

Project Management: Introduction, Need for Project Management, Project Management

Knowledge Areas and Processes, The Project Life Cycle, Phases of Project Management Life
Cycle, Project Management Processes, Impact of Delays in Project Completions, Essentials of
Project Management, Project Management Principles
2. Project Identification and Selection: Introduction, Project Identification Process, Project
Initiation, Pre-Feasibility Study, Feasibility Studies, Project Break-even point
3. Project Planning: Introduction, Project Planning, Need of Project Planning, Responsibility and
Team Work, Project Planning Process, Work Breakdown Structure (WBS)
4. Organisational Structure and Organisational Issues: Introduction, Concept of
Organisational Structure, Roles and Responsibilities of Project Leader, Relationship between
Project Manager and Line Manager, Conflict Resolution, Team Management and Diversity
Management, Change management
5. Resources Considerations in Projects: Introduction, Resource Allocation, Scheduling, Project
Cost Estimate and Budgets, Cost Forecasts
6. Project Risk Management: Introduction, Risk, Risk Management, Role of Risk Management
in Overall Project Management, Steps in Risk Management, Risk Identification, Risk Analysis,
Reducing Risks
7. Project Quality Management and Value Engineering: Introduction, Quality, Quality
Concepts, Value Engineering. Purchasing and Contracting for Projects: Purchase Cycle, Contract
Management, Procurement Process
8. Project Performance Measurement and Evaluation: Performance Measurement,
Productivity, Project Performance Evaluation, Benefits and Challenges of Performance
Measurement and Evaluation, Controlling the Projects
9. Project Close-out, Termination and Follow-up: project completion and handover, Project
Close-out, Steps for Closing the Project, Project Termination, Project Follow-up
K Deepak Rao, Assistant Professor, A.J.
1
Institute of Management, Mangalore
 Project Management

Introduction
Need for Project Management
Project Management Knowledge Areas and Processes
The Project Life Cycle
The Project Manager
Phases of Project Management Life Cycle
Project Management Processes
Impact of Delays in Project Completions
Essentials of Project Management
Project Management Principles
K Deepak Rao, Assistant Professor, A.J.
2
Institute of Management, Mangalore
Introduction:

Project – A project is a set of activities which are networked in

an order and aimed at achieving the defined goals for which the
project is undertaken. Upon completion of all the activities, the
goals of the project would have been achieved.

Management – Management is the technique of understanding

the problems and needs and controlling the use of resources, such
as cost, time, manpower, and materials.

Project Management – It is an art of organizing, coordinating

and controlling the use of resources, such as money, time,
manpower and materials.

K Deepak Rao, Assistant Professor, A.J.

3
Institute of Management, Mangalore
Need for Project Management

a) Preventing Project Failure: A project requires huge investments which

should not go waste. A loss in any project would have direct or indirect
impact on the society. Project management helps an organization prevent
failures in projects.
b) Controlling Project Scope: Scope of the project activity may undergo a
change. Project management helps an organization define and control project
scope.
c) Improving understanding: Lack of understanding of the project among the
participants leads to failure. Project management helps participants understand
the project and its purpose.
d) Managing Risks: A project is vulnerable to various risks. A project is
affected if the technology used is changed during the course of project
execution. Similarly changes in economic conditions may affect a project.
Project management is very useful in assessing and mitigating such risks.
e) Managing Project Problems: Consequences of ignoring project related
problems can be very serious. Project management helps in identification and
communication of problem areas.
K Deepak Rao, Assistant Professor, A.J.
4
Institute of Management, Mangalore
Project management provides a shared vision to the project team to
guide their day-to-day work much more actively. The team members
are expected to focus exclusively on this shared vision. Their sharp
focus leads them to greater productivity.
The project manger is responsible for optimising the productivity of
his team. In simple terms, it is his/her responsibility to do everything
possible to minimize the obstacles. The project manager has to match
and combine all activities required to attain project’s goals.
Specifically, the project form of organization permits the manager to be
reactive to:
- The client and the environment
- Identification of problems at near the beginning stage and correct
them
- Taking well-timed decisions concerning to tradeoffs among differing
project goals and
- Guarantees that managers of separate tasks of the project do not
optimize the performance of their individual tasks at the expense of
the total project.
K Deepak Rao, Assistant Professor, A.J.
5
Institute of Management, Mangalore
Project Management Knowledge Areas and Relationship

The Project Management Body of Knowledge (PMBOK)

describes nine knowledge areas of the project management
discipline.
The nine knowledge areas consisting of integration, scope, time,
cost, quality, risk, human resources, communications, and
procurement.

K Deepak Rao, Assistant Professor, A.J.

6
Institute of Management, Mangalore
1. Project Integration Management:
Ensures that various elements of a project are properly integrated and
coordinated for smooth flow of information and resources.
2. Project Scope Management:
Includes developing the scope statements that defines the boundaries of
the project and guarantees that a project contains all the necessary
elements and specifies scope change control procedures to complete the
project effectively.
3. Project Time Management:
Stresses on timely completion of project.
4. Project Cost Management:
Ensures that the completion of project within the permitted budget.
5. Project Quality Management:
Deals with the processes that assure that the project meets its quality
obligations.

K Deepak Rao, Assistant Professor, A.J.

7
Institute of Management, Mangalore
6. Project Human Resources Management:
Ensures that the most appropriate manpower with necessary skills
is deployed for an effective execution of the desired project.
7. Project Communication Management:
Consist of the processes necessary for timely and suitable
generation, collection, dissemination, storage and final
disposition of project information.
8. Project Risk Management:
Is the orderly process of identifying, analyzing and reacting to
project risks.
9. Project Procurement Management:
Deals with processes related to obtaining products and services
needed to complete a project.

K Deepak Rao, Assistant Professor, A.J.

8
Institute of Management, Mangalore
Project Life Cycle:

The Project Life Cycle refers to a logical sequence of activities to

accomplish the project’s goals or objectives. Most of the projects
experience similar stages on the path from origin to completion.
Start-up-Phase: the project is started and a manager is chosen, the project
team and primary resources are assembled, and the work program is organized.
Quick momentum: Progressively, the work gains momentum. This
continues till the end is near.
Finish (Slow): Completing the final tasks take some extra amount of time,
partly since there are often a number of parts that must come together and
partly because team members “drag their feet” for different reasons and avoid
the final steps.
Meeting performance, time, and cost are the major considerations
through out the projects life cycle.
K Deepak Rao, Assistant Professor, A.J.
11
Institute of Management, Mangalore
Project Manager:

A project manager is a qualified person in the field of project

management, who manages the four basic elements of a project:
resources, time, money and most importantly, scope. All elements are
interrelated and each must be managed effectively.
Other responsibilities are
- Budgeting and cost control
- Scheduling tasks
- Allocating resources
- Tracking project expenditures
- Ensuring technical quality
- Managing relations with the customer and company.
K Deepak Rao, Assistant Professor, A.J.
12
Institute of Management, Mangalore
Phases of Project Management Life Cycle:

Project Management is a rationally planned and organized effort

to attain a specific goal. It comprises of organizing, coordinating
and managing different tasks and resources for successful
completion of project. A project lasts for a definite period of
time and then finishes. Projects are usually made up of different
diverse elements or mini-tasks that are completed separately and
finally combined together to make the completed project.

K Deepak Rao, Assistant Professor, A.J.

13
Institute of Management, Mangalore
K Deepak Rao, Assistant Professor, A.J.
14
Institute of Management, Mangalore
Project Initiation: Project initiation is the first step in the project
development cycle, and in simple terms: starting the project. A project is
initiated by defining its reason, business goals, and scope.
Project Planning: Once the project is defined and project team is
assembled, the next phase is the in-depth Project Planning Phase. This
includes developing the “PMP” (Project Management Plan), for guiding
the team throughout the project development stage.
Project Development: On the basis of inputs received in the shape of
project feasibility study, preliminary project evaluation, project proposal
and customer interviews, outputs are produced. (System design
specification, Programme functional specification, Programme design
specification, Project Plan)
Project implementation: In this phase, the requirements are built and
programmed. The project is presented for client acceptance and full
implementation after the quality assurance analysis.
Project closure: It includes giving the final output to the customer,
handling the project documentation, manuals, source code, and network
layouts. At last a post implementation review is to be carried out to
identify the extent of project success and document review outcomes.
K Deepak Rao, Assistant Professor, A.J.
15
Institute of Management, Mangalore
K Deepak Rao, Assistant Professor, A.J.
20
Institute of Management, Mangalore
1. Project Identification and Prima Facie Analysis:
- Performance of existing industries
- Price Trend
- Price difference between international and domestic prices
- Government policies
- Location aspects
- Financial position

2. Project Preparation:
- Technical Feasibility
- Market Feasibility
- Financial Feasibility
- Social cost benefit analysis

3. Project Implementation

4. Project Review
K Deepak Rao, Assistant Professor, A.J.
21
Institute of Management, Mangalore
Impact of Delays in Project Management:

The most important problem faced in the implementation phase of a

project is delay in execution. This is also referred to a slippage of
projects, which results in escalation of costs and also the loss of revenue.
Internal factors are:
- Inadequate planning based on wrong and inadequate information
- Inadequate financing
- Choice of wrong technology
- Lack of coordination among execution departments
- Lack of reasonable norms accountability
- Wrong selection of vendor
External factors are:
- Input problems
- Transportation problems
- Frequent change in administration at the senior level, affecting the
continuity of policy
- Lack of public cooperation.
K Deepak Rao, Assistant Professor, A.J.
22
Institute of Management, Mangalore
Essentials of Project Management Philosophy:
A good project management methodology provides a framework for the
processes. It provides guidelines for the execution of the project that
greatly increases the chances of the project being successful, and
therefore provides value to the project.

The following are some of the steps of a good project management.

· Define the project
· Reduce it to a set of manageable tasks
· Obtain appropriate and necessary resources
· Build a team to perform the project work
· Plan the work and allocate the resources to the tasks
· Monitor and control the work
· Report progress to senior management and/or the project sponsor
· Close down the project when completed
· Review it to ensure that the lessons are learnt and widely understood
K Deepak Rao, Assistant Professor, A.J.
23
Institute of Management, Mangalore
Project Management Principles

There are five dimensions that must be managed on a project.

These are
1. Features
2. Quality
3. Cost
4. Schedule
5. Staff

K Deepak Rao, Assistant Professor, A.J.

24
Institute of Management, Mangalore
Objectives: The main point of any project is to achieve specified goals
and objectives. Once these objectives have been fulfilled, the project is
said to be complete. It is, therefore, essential that the goals and
objectives should be clearly defined, measurable, and achievable. In
the absence of a focused approach, chances of project failure will
increase. Once the objectives of a project have been established, they
should be clearly communicated and agreed with all the working on the
project.

Constraints: A constraint is any factor which can limit or have an

impact on a project. Some typical constraints are funding, the scope of
the project, available resources, and time. Projects which do not
consider their constraints are often regarded as failures and tend to
incur a significant cost to their business.

Lifecycle: Projects have a definite start and finish point within which
their objectives need to be fulfilled.
K Deepak Rao, Assistant Professor, A.J.
25
Institute of Management, Mangalore
CASE STUDY:
XYZ Ltd. Is a medium-size organization operating in the market for
last five years. The organization deals in the printing and designing of
documents. At the time of the incorporation of the business, the
organization has installed second-hand machines and instruments. The
clients of the organization have increased significantly over the last six
months due to better services. The organization is now facing the
problem of under production due to shortage of equipments. It also
received some complaints regarding the quality of printing.
In the investigation, the organization has found that the un-systematic
way of production and the old and inferior quality of printing machine
is creating problem. The organization has limited financial resources to
manage production and purchase a new printing machine.
- Is there any scope of application of the project management in the
organization?
- Based on the urgency of the requirement, which project should be
given more priority?
K Deepak Rao, Assistant Professor, A.J.
26
Institute of Management, Mangalore
K Deepak Rao, Assistant Professor, A.J.
27
Institute of Management, Mangalore