Project Management Concepts

Project : A Piece of Work Planned To Achieve A Particular Aim

Project Management
Defined

Project is a series of related jobs usually directed toward some major output and requiring a significant period of time to perform Project Management are the management activities of planning, directing, and controlling resources (people, equipment, material) to meet the technical, cost, and time constraints of a project

Egyptian Pyramid

Eiffel Tower

Dam on the Krn River, Iran

Mir Space Shuttle

Verrazano-Narrows Bridge, New York City.

Great Stupa (stupa No. 1) at Snchi, Madhya Pradesh, India

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The Nano by Tata Technologies

More Projects Coming ..

Increasing CUSTOMER WANTS Changing LIFE STYLES More PRODUCTS Shorter PRODUCT LIFE CYCLES. Markets Local to GLOBAL More COMPETITORS More IDEAS / INNOVATIONS More CONSTRAINTS

Projects Meeting Demands in .

FOOD TEXTILES HOUSING ENERGY COMMUNICATION TRANSPORTATION RECREATION HEALTH CARE ALL REQUIRING FASTER TURNAROUNDS

Typical Examples
Defense Construction Turnkey Projects Manufacture Maintenance Installation R&D Marketing HRM Finance IT - Web Site Launching

Characteristics of Project.
Non Routine Non Repetitive Having Uncertainties Particular Objective to achieve Clear Start and Finish Single Person / Body Responsible Large Number of Inter Related Activities Uses Wide Variety of Resources & Skills Co-ordination between different Departments & Outside Agencies.

Successful Project Management

Successful Projects require : Leadership Trust Communication Teamwork Along with a Good Formal Planning & Control Systems

Importance of Project Management

PM concepts though Pre Historical yet in last 50 years applied in all areas of Human Life. High Capital Involved Long Gestation Period High Uncertainties Expert Management Required Large number of Agencies. Delays very Costly Heavy Penalty

Types of Projects
Based on Activity Type : Industrial Projects Non-Industrial Projects Based on Location : National Projects International Projects Based on Project Completion Time: Normal Projects Crash Projects

Types of Projects

Based on Ownership: Private Sector Projects Public Sector Projects Joint Sector Projects Based on Size : Small Scale Project Medium Scale Projects Large Scale Projects

Types of Projects
Based on Need : New Projects Balancing Projects Expansion Projects Modernisation Projects Replacement Projects Diversification Projects Backward Integration Projects Forward Integration Projects

Some Important Terms

Stakeholders : Anyone affected by the project or Potentially can Alter its Outcome. 1 ) Internal 2 ) External Environment : Anything that influences the behavior /outcome of the Project Yet lies beyond the decision makers ability to control.

Some Important Terms

Customer : Persons / Groups for whom the project is being done & who will acquire and / or operate the system when it is completed. Customer : Pays for the System ( BUYER ) User : Uses it Contractor : Group that performs the projectStudies ,Designs , Develops & Installs the Project ( SELLER )

Project Life Cycle

The sequence of phases through which the project will evolve. Phase A : Conceptualization Phase B : Definition / Planning Phase C : Execution Phase D : Operation / Termination

Phase A : Conceptualization
2 STAGES Stage I ) Project Initiation :

Establishes that Need / Problem exists and is worthy of Investigation. Need / Symptoms Environment Alternative Solutions Affected Individuals / Organisations ITERATIVE APPROACH

Phase A : Conceptualization

Stage II ) Project Feasibility : Project Feasibility : Detailed Investigation of Need / Problems, Formulation of Alternative Solutions , Selection of one. Its a Multiple Feasibility : By Customer for funding of Project By Contractor for Winning of Contracts By Customer for Contractor Assessment / Selection.

Phase A : Conceptualization
Recognition & Acceptance of Problem / Need Looking for Solution Providers ( Inside/Outside) Seeking Proposals Evaluating Proposals Technical & Economical Feasibility Letter of Interest Choice of Contractors

Phase A :Conceptualization (contd )

RFQ: Request for Quality RFP : Request for Proposal Executive Summary: Design, Development, Installation, Testing,Handover. Statement of Work : Labour, Material,Tools,Supervision,Services. Technical Details Schedule ,Deadlines Exclusions Costs Penalty Confidentiality, Third Party Commitments

Project Charter
Describes Project to Stakeholders and Establishes Project Managers Authority ( for gathering & using Resources ) Contents : Objective Scope Stakeholders Estimated Budget Resources Schedule Risks

Selection Criteria
Technical Ability Bid Price Qualification of Contractors Experience of Contractors Contractors Project Management Risks ROI Evaluation by : Simple Rating Weighted Rating

Phase B : Definition
Detailed Analysis Requirements Functions Major Subsystems / Components / Support Systems Resources Costs, Budgets Activities / Schedules.

Phase C : Execution
Plans put into Actions Design Acquisition of Resources Production / Implementation Motivation Control of Resources Progress Appraisal

Phase D : Operation / Termination

User Taking Charge Operation Maintenance / Support Some Projects are One Shot while Some may Last for Years / Decades.