MODULE 1

INTRODUCTION TO PROJECT MANAGEMENT

What is a Project?
A project is a unique endeavour to produce a set of deliverables within clearly
specified time, cost and quality constraints.

Characteristics of a Project
Projects are different from standard business operational activities as they:
 Are unique in nature. They do not involve repetitive processes. Every
project undertaken is different from the last, whereas operational activities
often involve undertaking repetitive (identical) processes.
 Have a defined timescale. Projects have a clearly specified start and end
date within which the deliverables must be produced to meet a specified
customer requirement.
 Have an approved budget. Projects are allocated a level of financial
expenditure within which the deliverables are produced, to meet a specified
customer requirement.
 Have limited resources. At the start of a project an agreed amount of
labour, equipment and materials is allocated to the project.
 Involve an element of risk. Projects entail a level of uncertainty and
therefore carry business risk.
 Achieve beneficial change. The purpose of a project is typically to improve
an organization through the implementation of business change.

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Functional Work Versus Project Work

Project work and traditional functional work differ in significant ways, and it is
important to understand these differences.

Functional Work
Functional work is routine, ongoing work. Each day, secretaries, financial analysts,
and car salesmen perform functional work that is routine, even if their activities
vary somewhat from day to day. A manager assigned to the specific function gives
them training and supervision and manages them according to standards of
productivity in terms of typing speed or sales quotas.
The following are distinguishing characteristics of functional work:
 Functional work is ongoing, routine work.
 Managers manage the specific function and provide technical direction.
 People and other resources are assigned to the functional department.
 Functional departments are responsible for the approved objectives of the
function, such as technical competency, standards of performance and
quality, and efficient use of resources.
 Functional work is typically structured as a hierarchical organization with
traditional formal lines of authority.

Project Work

In contrast to on-going, functional work, a project is ‘‘a temporary endeavour

undertaken to create a unique product or service’’. Projects are temporary because
they have a definite beginning and a definite end. They are unique because the
product or service they create is different in some distinguishing way from similar

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products or services. The construction of a headquarters building for ABC
Industries is an example of a project.
The unique work is defined by the building plans and has a specific beginning and
end. A project manager is responsible for the project, overseeing the contractors
and managing the schedule and budget.
The following are distinguishing characteristics of project work:
 Project work is a unique, temporary endeavour
 A project manager manages a specific project
 People and other resources are not assigned to project managers on an
ongoing basis, except for project management support
 A project manager is responsible for the approved objectives of a project—
such as budget, schedule, and specifications
 Project teams are typically not organized in the same hierarchical structure
as that of typical functional groups
 A project manager manages horizontally via projects rather than vertically
via functional experts

In some organizations, functional managers are called resource managers because

they are responsible for assigning resources to the project.
In the real world, there might be an overlap between project and functional
managers. If functional resources (other than a project management staff ) are
assigned to a project manager then that manager has functional responsibility and
is acting as both project manager and functional manager. If projects are
assigned to a functional manager, then that manager also has project responsibility
and is acting in both roles.

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What is Project Management?

Project Management is the skills, tools and management processes required to

undertake a project successfully. It incorporates:
 A set of skills. Specialist knowledge, skills and experience are required to
reduce the level of risk within a project and thereby enhance its likelihood of
success.
 A suite of tools. Various types of tools are used by project managers to
improve their chances of success. Examples include document templates,
registers, planning software, modelling software, audit checklists and review
forms.
 A series of processes. Various processes and techniques are required to
monitor and control time, cost, quality and scope on projects. Examples
include time management, cost management, quality management, change
management, risk management and issue management.

Project management principles and techniques help complete projects on schedule,

within budget, and in full accordance with project specifications. At the same time,
they help achieve the other goals of the organization, such as productivity, quality,
and cost effectiveness.
The objective of project management is to optimize project cost, time, and quality.

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 Importance of Project Management

Many people become project managers by accident. Someone assigns them to

manage a project because of their areas of expertise, not because they have
received any project management training. However, if you manage a project by
accident, it will become a disaster!
Learning project management skills can help you complete projects on time, on
budget, and on target. The discipline of project management includes proven
strategies for clarifying project objectives, avoiding serious errors of omission, and
eliminating costly mistakes. It also addresses the necessary people skills for getting
the cooperation, support, and resources to get the job done.
Project management is not just for project managers. Team members need to know
how carry out their parts of the project and business executives need to understand
how to support project management efforts in the organization.

Why Project Management Is Necessary In Today’s World

The need for project management is becoming increasingly apparent in the world
today. Speed, quality, and cost control are taking on increased significance in
business, government, and non-profit sectors. Project management allows
managers to plan and manage strategic initiatives that generate new revenue in
expanding sectors of the market. Project management tools decrease time to
market, control expenses, ensure quality products, and enhance profitability.
Project management helps to sell products and services by positively
differentiating them from their competitors.
Project management is one of the most important management techniques for
ensuring the success of an organization.

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Project Management Today
Today, modern project management has emerged as a premier solution in business
operations. Large and small organizations recognize that a structured approach to
planning and controlling projects is a necessary core competency for success.
International organizations such as the Project Management Institute (PMI) and the
International Project Management Association (IPMA) promote project
management by providing professional development programs. PMI offers Project
Management Professional (PMP) certification to those who demonstrate
competency in the field of project management through education and experience
and by passing a rigorous certification exam. PMI sets standards and accredits
degree granting educational programs in project management.

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