Welcome

Project management

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 Project
● Project is a unique process
– consist of a set of coordinated and controlled activities with
start and finish dates
– undertaken to achieve an objective confirming to specific
requirements
● including the constraints of time, cost and resource

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 Characteristics
● Unique in nature
● Have definite objectives (goals) to achieve
● Requires set of resources
●
Have a specific time frame for completion with a definite
start and finish
● Involves risk and uncertainty
●
Requires cross-functional teams and interdisciplinary
approach

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 6.1 Concepts
● Project management is a process of leading the work of a
team to achieve all project goals within the given
constraints.
– This information is usually described in project
documentation, created at the beginning of the development
process.
● The primary constraints are scope, time, budget.
● The secondary challenge is to optimize the allocation of
necessary inputs and apply them to meet pre-defined
objectives
– The objective of project management is to produce a
complete project which complies with the client's objectives

https://en.wikipedia.org/wiki/Project_management 6
 Concpts
●
Project management includes the planning, initiation,
execution, monitoring, and closing of a project.
● Many different types of project management
methodologies and techniques exist
– traditional, waterfall, agile, and lean
● Project management is used across industries
– an important part of the success of construction,
engineering, and IT companies

https://www.investopedia.com/terms/p/project-management.asp 7
 Types of project management
● Waterfall
● Agile
● Lean

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 Waterfall model
●
Includes the caveat that each task needs to be completed
before the next one starts.
● Steps are linear and progress flows in one direction—like a
waterfall.
● Because of this, attention to task sequences and timelines
are very important in this type of project management.
● Often, the size of the team working on the project will grow
as smaller tasks are completed and larger tasks begin

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 Water fall model

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 Agile
●
Agile project management does not follow a sequential
stage-by-stage approach.
● Instead, phases of the project are completed in parallel to
each other by various team members in an organization.
● This approach can find and rectify errors without having to
restart the entire procedure
● The computer software industry was one of the first to use
this methodology

https://www.youtube.com/watch?v=5RocT_OdQcA 9
https://static.javatpoint.com/tutorial/software-engineering/images/software-engineering-agile-model.png 12
Waterfall v/s Agile

https://www.techguide.com.au/wp-content/uploads/2020/01/Agile.jpeg 13
 Lean project management
●
This methodology is all about avoiding waste, both of time
and of resources.
● The principles of this methodology were inferred from
Japanese manufacturing practices.
● The main idea behind them is to create more value for
customers with fewer resources

https://www.youtube.com/watch?v=yOWBksyEtXg 14
Waterfall v/s Agile v/s Lean

https://i.ytimg.com/vi/yOWBksyEtXg/maxresdefault.jpg 15
 Project dimensions
●
Every project is constrained by three dimensions: time,
budget, and scope.
– These three dictate the direction of any project and are used
to measure project success
● traditional three-dimensional project management
approach is insufficient in today’s competitive world
● there is another dimension that affects project success
– team efficiency

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Project triangle

https://kanbanzone.com/2019/key-project-dimensions/ 17
 Project triangle
At the start of every project, the project manager must
determine the project constraints that the team will be
operating with
● Time:
– Every project has a target deadline.
– derive the project timeline based on how long each project
task is estimated to be done.
– deliverables targeted to be released

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 Project triangle
● Scope
– The scope of a project determines what exactly is to be delivered.
– determines the requirements that need to be met in order to
complete the project
● Budget
– Are Limited
– Understanding the target cost allocation and its limits are important
to the success of any project.
– There are a lot of elements that can affect costs:
● Staff salaries
● Implementation of new technologies
● Upstream suppliers increasing costs
● Changes in scope that adds on to the project deliverables
● Balancing the Project Management Triangle
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 Deadline
● There should be a way for project managers and teams to
come up with timelines that are reflective of the team’s
capacity and efficiency.
●
Knowing the speed, or cycle time, at which teams work on
a product will help managers know their team’s
performance.
● They can then use this to get a better forecast of the time it
will take to get the project done
● organizations trying to fit and push their deadlines onto the
people who are supposed to meet them

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 Benefits of Project management
● Project management approach will help in handling complex,
costly and risky assignments by providing interdisciplinary
approach in handling the assignments.
– Example: R&D organizations.
● Project management approaches help in handling
assignments in a specified time frame with definite start and
completion points.
– Example handling customer orders by Industries involved in
production of capital goods.
● Project management approaches provide task orientation to
personnel in an Organization in handling assignments.
– Example: Organizations in IT sector handling software
development assignments for clients
https://www.youtube.com/watch?v=K5x8Mowmk0g 21
 Network diagram
● A project network diagram is a graph-style visual tool
– shows the activities of a project, their duration, tasks, and
interdependencies.
– used to illustrate the logical steps between items in a project
and their sequence to show how it will all play out in
practice.
● Network diagrams that use the arrow and node method to
depict project dependencies.
– Through the use of a Gantt chart or other tools, activity
dependencies are defined.
– Project managers and teams have a clear understanding of
which activities or tasks must be completed in order to begin
others
https://everhour.com/project-management-faq/what-is-a-network-diagram 23
 6.4 Network Diagram

●
A network diagram in project management is a helpful tool for
clearing up any uncertainties within a project.
– for both project managers and their staff as a marker for the flow of
work.
– It illustrated how a project should progress and identifies if it goes
off course
https://cacoo.com/wp-app/uploads/2018/04/Project-network-diagram-example.png 24
 6.4 Network diagram – usage of
● Planning the structure of a project
● Coordinating updates or changes automatically
● Identifying potential risks or bottlenecks of a project
● Documentation for external communication
● Keeping track of project progress
● Selling a project proposal to financial stakeholders
● When proposing changes to stakeholders
● Helping to justify the time estimate for your project
● Aid in planning, organising and controlling your project
● Identify activity interdependencies
● Define the project workflow
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 6.5 Critical path Method (CPM)
●
Critical path analysis is a project management technique
used to chart every task involved in a planned project
– while identifying the latest date each can be completed
without jeopardizing the overall deadline.
● Takes into account the interdependent roles of each
functional part of a team.
● Is designed to anticipate any potential snags in the
process.
● Serves as a type of roadmap for the team to follow from
start to finish

https://www.investopedia.com/terms/c/critical-path-analysis-cpa.asp 26
 6.5 Critical path - summary
●
Critical path analysis is a method of planning and
implementing a complex project
– takeing into account the sequence of activities that must
occur for its successful completion.
– Inevitably, the unexpected occurs, and the critical path
analysis must be revised.
●
The critical path analysis is used to track progress
throughout the duration of a project.
● Team members use it to alert each other and management
of potential problems and unexpected events.
● Changes that may have an impact on critical path activities
generally require management review and approval
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 6.5 Critical path
●
The critical path is the longest possible time a project will
take to complete.
●
A critical path analysis details every task in a project and
how long it will take to finish.
●
The analysis must consider dependencies between tasks.
●
The analysis is used to track a project from start to finish.
●
To create a critical path of a project, (finding activities that
are most critical to the project’s process), one must take into
consideration which nodes will take the most and least
amount of time.
●
The critical path goes through all the nodes with the longest
expected completion times
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https://software-advice.imgix.net/wordpress/other_pages/project-management/Critical-path-chart.png 29
 CPM Benefits
1. Reduce delays
2. Visualize dependencies
3. Improve organization
4. Optimize efficiency
5. Float calculation: defines how much a task can be delayed
without impacting the project schedule.
 Problems
The following details are available regarding a project:

Determine the critical path, the critical activities and the project
completion time.

Example: https://www.youtube.com/watch?v=tOJ8IuIqBpw
 Problems
Find out the completion time and the critical activities for the
following project:
CPM tool

https://www.smartsheet.com/critical-path-method
https://www.youtube.com/watch?v=-TDh-5n90vk 30
A concept related to and crucial for using the Critical Path
Method is float or slack.

In project management, “float” defines the amount of time a task

can be delayed without causing a delay in:

• Any subsequent, dependent tasks are called “free float.”

• Any delay in the overall project is called “total float.”

Any activity or task on the critical path has zero float. That is,
you can’t delay it without causing a delay in the project or
dependent tasks.

However, plenty of other activities in the project can be delayed.

The quantification of this delay is called the “float.”
 6.6 Basic QC tools
●
Many organizations use quality tools to help monitor and
manage their quality initiatives.
● There are several types of tools that can be used
– However, there are seven management tools for quality
control that are the most common.
● Different tools are used for different problem-solving
opportunities
– many of the tools can be used in different ways.
● Become familiar with these quality tools
– Use appropriate tool at the correct time

https://thethrivingsmallbusiness.com/seven-management-tools-for-quality-control/ 33
 6.6 Basic QC tools
1) Flow Chart
2) Check sheet
3) Cause-effect (fishbone) Chart
4) Pereto Chart
5) Control Chart
6) Histograms
7) Scatter diagrams

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 6.6.1 Flow chart
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Visual illustration of the sequence of operations required to
complete a task
– Schematic drawing of the process to measure or improve.
– Starting point for process improvement
– Potential weakness in the process are made visual
– Picture of process as it should be

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 6.6.1 Flow chart
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Provides a picture of what the process looks like and can
shed light on issues within the process.
● Used when trying to determine positions of bottlenecks or
breakdowns
● Flowcharts are also used to show changes in a process
when improvements are made or to show a new workflow
process.
● This example provides a picture so those checking
children in will know the steps each takes depending on
whether it is their first time or a child who has been there
before

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6.6.1 Flow Chart

https://thethrivingsmallbusiness.com/seven-management-tools-for-quality-control/ 37
 6.6.2 Check Sheet
● A basic quality tool that is used to collect data.
– A check sheet might be used to track the number of times a
certain incident happens.
●
As an example, a human resource department may track the
number of questions by employees, per category, per day.
●
In this particular check sheet the tool shows the total number of
questions received by the human resources department.
● Benefits:
– Collect data in a systematic and organized manner
– To determine source of problem
– To facilitate classification of data (stratification)

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6.6.2 Check shets

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 6.6.3 Cause-effect (fishbone) Diagram
●
A cause and effect diagram, also known as a fish-bone
diagram shows the many possible causes of a problem.
● To use this tool, you need to first identify the problem you are
trying to solve and simply write it in the box (head of the fish)
to the right.
– Next, you will list the major causes of the problem on the spine
of the fish
– Causes are typically separated into categories of people,
process, materials and equipment.
– Causes are then identified through brainstorming with a group
familiar with the problem.
●
Once all of the possible causes are identified, they can be
used to develop an improvement plan to help resolve the
identified problem
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 6.6.3 Fishbone diagram

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6.6.3 Fishbone diagram

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 6.6.4 Pareto Chart
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A Pareto chart is a bar graph of data showing the largest
number of frequencies to the smallest
● Helps graphically display results so the significant few
problems emerge from the general background
– Can be used to prioratize tasks
● Example: number of product defects in each of the listed
categories
– When you look at the number of defects from the largest to the
smallest occurrences, it is easy to see how to prioritize
improvements efforts
– The most significant problems stand out and can be targeted first
– Can be plotted as absolute/percentage

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6.6.4 Pareto Chart

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 6.6.5 Control Charts
●
Control charts or run charts are used to plot data points
over time and give a picture of the movement of that data.
● These charts demonstrate when data is consistent or
when there are high or low deviations in the occurrences
of data.
● It focuses on monitoring performance over time by looking
at the variation in data points.
● And it distinguishes between common cause and special
cause variations.

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 6.6.5 Control Charts
● Can have lines for maximum, minimum and averare too

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 6.6.6 Histograms
●
Histograms are bar chart pictures of data that shows
patterns that fall within typical process conditions.
● Changes in a process should trigger new collection of
data.
● A minimum number of data points should be gathered to
ensure a proper histogram
● The patterns that are detected demonstrate an analysis
that helps understand variation
– In this example, it shows that the receptionist received the
most phone calls about contribution statements for that
period

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6.6.6 Histograms

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6.6.6 Histogram

https://scikit-image.org/docs/0.16.x/_images/sphx_glr_plot_equalize_001.png 49
 6.6.7 Scatter diagrams
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To identify the correlations that might exist between a quality
characteristic and a factor that might be driving it
●
A scatter diagram shows the correlation between two variables in
a process.
– Scatter diagrams are graphs that show the relationship between
variables (often represent possible causes and effect)
– Dots representing data points are scattered on the diagram
– The extent to which the dots cluster together in a line across the
diagram shows the strength with which the two factors are related
●
Scatter diagrams are graphs that show the relationship between
variables. Variables often represent possible causes and effect
●
Example: The diagram shows the relationship between volunteer
satisfaction scores and volunteer orientation training

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6.6.7 Scatter diagrams

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 6.6.8 QC tools Summary
●
Each of these quality tools has unique advantages for
certain situations
– And, not all tools are used for all problem-solving.
● Once a tool is learned, it can be adapted to different
problem-solving opportunities
● Additionally, as with anything else, using tools properly
takes practice and experience
– Simply start using each of the tools, and over time, you will
become proficient and a great problem solver!

https://www.youtube.com/watch?v=IFPF0TIFG-4
https://www.youtube.com/watch?v=7Kc1reo8NU0
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 Project Identification
Project idea sources
• Knowledge of potential customer
• Watching emerging trends in demand and their market size
and potential
• Scope for producing substitute economical product with
better features
• From various magazines/journal
• Success stories of entrepreneurs, friends and relatives
• Visiting national /international level trade exhibition
• Meeting technical /industrial consultants
• Knowing government policies
• Observation of market and industry
• Visiting R&D institutions
• New products introduced by other enterprises
 Project Selection
Tool used for analysis of project is called as SWOT
Analysis
Criteria for selecting project
• Investment size
• Location
• Technology
• Plant and Machineries
• Marketing

Project report is a well evolved course of action devised to

achieve the specified objectives within a specified period of
time.
 Contents of a project report
Once the project is implemented and commissioned, BP serves
as a tool to educate the entrepreneur by pointing out
assumptions which proved to be true and those which were too
optimistic or pessimistic
Important contents of project report
• General Information
• Promoter(s)
• Location
• Land and Building
• Plant and Machinery
• Production Process
• Utilities
• Transport and Communication
• Raw material
• Manpower
• Products
• Market
• Requirement of working capital
• Requirement of funds
• Cost of Production and profitability of first five years
• Break-even analysis
• Schedule of implementation

Note: Refer text book for Formulation of a detailed project report (Business Plan)
 Network Analysis
• There is a need for deciding the sequential order of all
activities of the project so as to accomplish the project
economically in the minimum available time with the limited
resources. This is also called “Project Scheduling”.
• There are a number of network techniques developed for
project scheduling.
• A network is a set of symbols connected with each other
with a sequential relationship with each step making the
completion of an event/project.
• Network analysis helps in designing, planning, co-
ordinating, controlling and decision making in order to
accomplish the project economically in the minimum
available time with limited available resources.
 Different Network Techniques

• Programme Evaluation and Review Technique (PERT)

• Critical Path Method (CPM)
• Graphical Evaluation and Review Technique (GERT)
• Workshop Analysis Scheduling Programme(WAST)
• Line of Balance (LOB)
 Errors in Project Report
1. Wrong selection of product /service
2. Over estimation of plant capacity utilization
3. Market feasibility study
4. Wrong selection of technology
5. Wrong selection of location
6. Wrong selection of ownership form
7. Conservative estimation of fixed cost of the project
8. Conservative estimation of working capital needs
9. Accommodating in small scale enterprise limit
10. Selling price- unfounded optimism
11. Cash flow in initial years – poor detail

Note: Refer Project Appraisal topic from textbook