Unit :1

INTRODUCTION TO PROJECT
MANAGEMENT
What is a project?
Definition of a Project:
A project is made up of a group of interrelated work activities
constrained by a specific scope, budget, and schedule to deliver capital
assets needed to achieve the strategic goals of an Agency.

A defined goal or objective.

Specific tasks to be performed.
A defined beginning and end.
Resources being consumed.
What is Project Management?
The art of organising, leading, reporting and completing a project
through people.
A project is a planned undertaking.
A project manager is a person who causes things to happen
Therefore, project management is causing a planned undertaking to
happen.
THE NEED
The Need for Project Management

The construction industry is the largest industry in the world. It is more

of a service than a manufacturing industry. Growth in this industry is in
fact an indicator of the economic conditions of a country.
This is because the construction industry consumes a wide
employment circle of labor.
While the manufacturing industry exhibit high-quality products,
timelines of service delivery, reasonable cost of service, and low failure
rates, the construction industry, on the other hand, is generally the
opposite.
Most projects exhibit cost overruns, time extensions, and conflicts
among parties.
Who leads a Project ?
Project manager
 Project manager is a professional in the field of project management.
Project managers are in charge of the people in a project.
People are the key to any successful project. Without the correct
people in the right place and at the right time a project cannot be
successful. Project managers can have the responsibility of the
planning, execution, controlling, and closing of any project typically
relating to the construction industry, engineering,
architecture, computing, and telecommunications.
Many other fields of production engineering, design engineering, and
heavy industrial have project managers.
Project manager
A project manager needs to understand the order of execution of a
project to schedule the project correctly as well as the time necessary
to accomplish each individual task within the project.
A project manager is the person accountable for accomplishing the
stated project objectives.
Project Managers tend to have multiple years’ experience in their
field.
 A project manager is required to know the project in and out while
supervising the workers along with the project.
Project management concepts

The purpose of project management is to foresee or predict as many

dangers and problems as possible; and to plan, organize and control
activities so that the project is completed as successfully as possible in
spite of all the risks. The ever-present element of risk and uncertainty
means that events and tasks leading to completion can never be
foretold with absolute accuracy. For some complex or advanced
projects, even the possibility of successful completion might be of
serious doubt.
Project management concepts
Project management can involve the following activities:
Planning - deciding what is to be done;
Organizing - making arrangements;
Staffing - selecting the right people for the job;
Directing - giving instructions;
Monitoring - checking on progress;
 Controlling - taking action to remedy hold ups;
Innovation - coming up with new solutions;
Representing - liaising with users.
Project management concepts
What are the objectives of project
management ?
The successful development and implementation of all project’s
procedures. A project, regardless of its size, generally involves five
distinctive phases of equal importance: Initiation, Planning and Design,
Construction & Execution, Monitoring, Control & Completion. The
smooth and uninterrupted development and execution of all the above
phases ensures the success of a project.
Productive guidance, efficient communication and apt supervision of
the project’s team. Always keep in mind that the success or failure of a
project is highly dependent on teamwork, thus, the key to success is
always in collaboration. To this end, the establishment of good
communication is of major importance. On one hand, information
needs to be articulated in a clear, unambiguous and complete way, so
everything is comprehended fully by everyone and on the other hand, is
the ability to be able listen and receive constructive feedback.
What are the objectives of project
management ?
The achievement of the project’s main goal within the given
constraints. The most important constraints are, Scope in that the
main goal of the project is completed within the estimated Time, while
being of the expected Quality and within the
estimated Budget. Staying within the agreed limitations always feeds
back into the measurement of a project’s performance and success.
Optimization of the allocated necessary inputs and their application to
meeting the project’s pre-defined objectives, is a matter where is
always space for improvement. All processes and procedures can be
reformed and upgraded to enhance the sustainability of a project and
to lead the team through the strategic change process.
What are the objectives of project
management ?
Production of a complete project which follows the client’s exclusive
needs and objectives. This might mean that you need to shape and
reform the client’s vision or to negotiate with them as regards the
project’s objectives, to modify them into feasible goals. Once the
client’s aims are clearly defined they usually impact on all decisions
made by the project’s stakeholders. Meeting the client’s expectations
and keeping them happy not only leads to a successful
collaboration which might help to eliminate surprises during project
execution, but also ensures the sustainability of your professional
status in the future.
Project planning generally consists of:

 Determining the project management methodology to follow (e.g. whether the

plan will be defined wholly up front, iteratively, or in rolling waves);
 Developing the scope statement;
 Selecting the planning team;
 Identifying deliverables and creating the product and work breakdown structures;
 Identifying the activities needed to complete those deliverables and networking
the activities in their logical sequence;
 Estimating the resource requirements for the activities;
 Estimating time and cost for activities;
 Developing the schedule;
 Developing the budget;
 Risk planning;
 Developing quality assurance measures;
 Gaining formal approval to begin work.

Additional processes, such as planning for communications and for scope

management, identifying roles and responsibilities, determining what to purchase for
the project and holding a kick-off meeting are also generally advisable.

Planning
Planning
After the initiation stage, the project is planned to an appropriate level
of detail (see example of a flow-chart). The main purpose is to plan
time, cost and resources adequately to estimate the work needed and
to effectively manage risk during project execution. As with the
initiation process group, a failure to adequately plan greatly reduces
the project's chances of successfully accomplishing its goals.

Planning
The Project Schedule:
 outlines the tasks and activities of the project;
the duration;
start and end dates for each individual task and the project as a whole;
and the resources and effort required.
Developing a project Schedule involves a number of defined steps.
 Work Breakdown Structure (WBS)
 Work Packages
 Activities and tasks
 Schedule
For most projects there will be at least two separate Schedules developed.
One will be for the Initiation Phase (Initial Schedule) and the other for the
Planning, Execution and Closure phases. All schedules are added to Eclipse
for tracking and updating.

Scheduling
The Initial Schedule is developed in the Initiation Phase of the project to help
produce the Project Charter. At this point, the Schedule is not expected to be
very accurate or contain firm dates; rather it gives the Project Manager (PM)
a rough idea of the project timeline and the assignment of resources. When
the initial schedule is approved, a second Schedule is developed, with the
approval date as the Project “start date”.
In the Planning Phase, a Project Management Plan is created and the second
Schedule is updated with a more accurate and realistic timeline. In effect, the
start and end dates of the first Schedule will be replaced by the start and end
dates of the second Schedule. Eclipse allows for the development and saving
of multiple schedules. This feature can help in creating “what if” schedules
without disturbing the “active” schedule.

Scheduling
While executing we must know what are the planned terms that need to be
executed. The execution/implementation phase ensures that the project
management plan's deliverables are executed accordingly. This phase involves
proper allocation, co-ordination and management of human resources and
any other resources such as material and budgets. The output of this phase is
the project deliverables.

Project Documentation
 Documenting everything within a project is key to being successful. In
order to maintain budget, scope, effectiveness and pace a project must
have physical documents pertaining to each specific task.
 With correct documentation, it is easy to see whether or not a project's
requirement has been met. To go along with that, documentation provides
information regarding what has already been completed for that project.
 With the correct documentation, a project's success can be tracked and
observed as the project goes on. If performed correctly documentation
can be the backbone to a project's success.

Executing
Monitoring and controlling consists of those processes performed to observe
project execution so that potential problems can be identified in a timely
manner and corrective action can be taken, when necessary, to control the
execution of the project. The key benefit is that project performance is
observed and measured regularly to identify variances from the project
management plan..

Monitoring and controlling includes:

 Measuring the ongoing project activities ('where we are');
 Monitoring the project variables (cost, effort, scope, etc.) against the
project management plan and the project performance baseline (where
we should be);
 Identifying corrective actions to address issues and risks properly (How
can we get on track again);
 Influencing the factors that could circumvent integrated change control so
only approved changes are implemented.

Monitoring and controlling

In multi-phase projects, the monitoring and control process also provides
feedback between project phases, in order to implement corrective or
preventive actions to bring the project into compliance with the project
management plan.

Project maintenance is an ongoing process, and it includes:

 Continuing support of end-users
 Correction of errors
 Updates to the product over time

Monitoring and controlling

The tasks of project controlling are also:

 The creation of infrastructure for the supply of the right information and
its update.
 The establishment of a way to communicate disparities of project
parameters.
 The development of project information technology based on an intranet
or the determination of a project key performance indicator system (KPI)
 Divergence analyses and generation of proposals for potential project
regulations.
 The establishment of methods to accomplish an appropriate project
structure, project workflow organization, project control and governance.
 Creation of transparency among the project parameters.

Monitoring and controlling

Decision-making
A decision is an act of selection or choice of one action from several
alternatives.
Decision-making can be defined as the process of selecting a right and
effective course of action from two or more alternatives for the purpose of
achieving a desired result. Decision-making is the essence of management.
According to P. F. Drucker – “Whatever a manager does he does through
making decisions.” All matters relating to planning, organizing, direction,
co-ordination and control are settled by the managers through decisions
which are executed into practice by the operators of the enterprise.
Objectives, goals, strategies, policies and organizational designs are all to be
decided upon in order to regulate the performance of the business.
The entire managerial process is based on decisions. Decisions are needed
both for tackling the problems as well as for taking maximum advantages of
the opportunities available. Correct decisions reduce complexities,
uncertainties and diversities of the organizational environments.
Importance of Decision-Making:
Management is essentially a bundle of decision-making process. The managers of an
enterprise are responsible for making decisions and ascertaining that the decisions
made are carried out in accordance with defined objectives or goals.
Decision-making plays a vital role in management. Decision-making is perhaps the
most important component of a manager’s activities. It plays the most important
role in the planning process. When the managers plan, they decide on many matters
as what goals their organization will pursue, what resources they will use, and who
will perform each required task.
When plans go wrong or out of track, the managers have to decide what to do to
correct the deviation.
In fact, the whole planning process involves the managers constantly in a series of
decision-making situations. The quality of managerial decisions largely affects the
effectiveness of the plans made by them. In organizing process, the manager is to
decide upon the structure, division of work, nature of responsibility and
relationships, the procedure of establishing such responsibility and relationship and
so on.
Importance of Decision-Making:
In co-ordination, decision-making is essential for providing unity of action.
In control, it will have to decide how the standard is to be laid down, how
the deviations from the standard are to be rectified, how the principles are
to be established how instructions are to be issued, and so on.
The ability to make good decisions is the key to successful managerial
performance. The managers of most profit-seeking firms are always
required to take a wide range of important decision in the areas of pricing,
product choice, cost control, advertising, capital investments, dividend
policy, personnel matters, etc. Similarly, the managers of non-profit seeking
concerns and public enterprises also face the challenge of taking vital
decisions on many important matters.
Decision-making is also a criterion to determine whether a person is in
management or not. If he participates in decision-making, he is regarded as
belonging to management staff. In the words of George Terry: “If there is
one universal mark of a manager, it is decision-making.”
Importance of Decision-Making:
According to P. F. Drucker:
“Whatever a manager does, he does through making decisions.”
In any business, whether large or small, the conditions are never static,
they are perceptively dynamic. The old order is always yielding place to
new either in personnel or in unforeseen contingencies. Changes in
conditions are the usual rule. Such a situation calls for actions that
involve decision-making.
So, decision-making is deeply related with management functions and
both are bound up together inseparably. When a manager plans or
organises, orders or advises, approves or disapproves anything, he will
have to move with the process of decision-making. In all managerial
functions, decision-making is an indispensable accompaniment.
Roles in Decision-Making
Decider
The Decider (and there is only one Decider for each decision step) has the
ultimate authority to decide and Is in the best position to assess the system
value at stake for customers, stakeholders and employees. The Decider is
accountable for learning from every issue raised by the Executors and
Advisors and making a decision that maximizes system value. The Decider is
also accountable for the consequences of the decision
Executors
The Executor is the person or persons accountable for executing the
decision. Executors have the duty of giving input about feasibility,
consequences and value of the decision. Executors must be skilled at raising
issues with the decider in a way that clearly serves the business purpose at
stake.
Roles in Decision-Making
Advisors
Advisors are subject matter experts who have important perspectives
granted by their specific skills and experience. Advisors have the duty to
raise issues related to their areas of expertise; they, too, must raise
issues that clearly serve the business purpose. Frequently an Advisor
can help design the decision team to ensure the right participation
relative to business risk.
Recipients
The Recipients are those who needs only to be informed of the decision
to be able to act accordingly. Recipients play no role in the decision-
making process.
Quiz Time ………..

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Traditional management systems

oGantt’s or Bar Chart

oLoad chart
oProgress Chart
 Bar charts were introduced by Henry Grantt around 1900 A.D,. Therefore they
are also called as Grantt charts.
 Bar chart is a graphical representation of activity v/s time.
 Usually horizontal axis represents the time duration and vertical axis
represents activities or jobs to be performed.
 The beginning and end of each bar show the “time of start” and “time of
finish: of the activity respectively.
 Therefore the length of the bar represents the time required for the
completion of the activity.

Gantt’s or Bar Chart

Advantage of Bar chart:
 It is simple to draw, easy to understand and can be drawn quickly.
 No trained/skilled personnel is required to make the chart.
 The progress achieved at the site is expressed in terms of percentage,
 It may be used for depicting the resource requirement of a construction
project.
 It provides a visual representation of the entire project which shows exactly
when each of the above activities is supposed to start and finish.

Limitations of Bar Chart:

1. Lack of Degree of Details
In case of big projects only major activities can be shown, if at all the activities of
big project are shown on the bar chart then it may become too clumsy. Therefore
bar chart are not preferred for big projects.
An activity is represented as a bar, without any details of sub-activities contained
in it due to these effective control over activities can be done.

Gantt’s or Bar Chart

For example consider activities in the below bar chart ‘Laying of pipe work’ is
shown as a bar, but following sub activities controls the satisfactorily and timely
completion of the activity.
A. Notice inviting for supply of pipe
B. Finalisation of bid
C. Supply of pipes at site
D. Final laying of pipe
For the satisfactory and timely completion this activity, these sub-activity should
be scheduled properly. The above detail can be shown effectively by marking
stages (also called ‘milestones’ on that particular activity bar.

Gantt’s or Bar Chart

Progress Chart

Gantt’s or Bar Chart

2. Review of Project Progress
A bar chart does not show the ‘Progress of work in the project and therefore it
can be used as a control device.
As progress made at a particular instant of time is required for proper control of
the project.
This difficulty or drawback can be overcome by showing of each activity by
hatched lines in the half of the width of the bar.
Progress of each activity is marked on the above chart with the help of hatched
lines at the end of 8 weeks. Following observations are made.
1. Activity A is behind schedule by 4 weeks
2. Activity B is on schedule and Activity C is completed
3. Activity D is ahead of schedule by 1 week
4. Activity E has not started yet and therefore need to be rescheduled.

Gantt’s or Bar Chart

Gantt’s or Bar Chart
Gantt’s or Bar Chart
Problem No.1

The activity break down for a certain project is as under:

 Activity 2 & 3 can be done concurrently and both must follow
Activity 1.
Activity 2 must precede activity 4.
Activity 5 cant begin until both numbers 2 and 3are completed.
Activity 6 can be started only after numbers 4 and 5 are completed.
Activity 7 is the last activity which can be started only after
completing activity 5.
Prepare the Bar Chart for the project.
Problem No.1

Bar Chart Info:

Activity No. Duration (Weeks)

1 1
2 2
3 4
4 3
5 1
6 2
7 4
CPM & PERT

A convenient analytical and visual technique of PERT and CPM

prove extremely valuable in assisting the managers in managing the
projects.
PERT stands for Project Evaluation and Review Technique
developed during 1950’s. The technique was developed and used in
conjunction with the planning and designing of the Polaris missile
project.
CPM stands for Critical Path Method which was developed by
DuPont Company and applied first to the construction projects in
the chemical industry.
Though both PERT and CPM techniques have similarity in terms of
concepts, the basic difference is; CPM has single time estimate and
PERT has three time estimates for activities and uses probability
theory to find the chance of reaching the scheduled time.
CPM NETWORK

Critical Path Method (CPM) is a network analysis approach. It finds out

which sequence of activities has the least measure of scheduling
resilience by which it can predict the duration of the project. It is based
on the estimation of the standard time needed for execution of a
activity. CPM manages the both time and cost of the project.
In this method, the critical path of the project is established by
identifying the critical activities of the project. Critical activities are the
activities whose total float value is ‘0’.
 CPM MERITS
It has the following advantages:
 It figures out the activities which can run parallel to each other.
 It helps the project manager in identifying the most critical elements of the project.
 It gives a practical and disciplined base which helps in determining how to reach the objectives.
 CPM is effective in new project management.
 CPM can strengthen a team perception if it is applied properly.
 CPM provides demonstration of dependencies which helps in the scheduling of individual
activities.
 It shows the activities and their outcomes as a network diagram.
 It gives a fair and concise procedure of documenting of project.
 It helps in determining the slack time.
 An explicit and clear approach of communicating project plans, schedules, time and cost
performance is developed.
 It is extensively used in industry.
 It helps in optimization by determining the project duration.
CPM DE-MERITS

It has the following disadvantages:

The scheduling of personnel is not handled by the CPM.
In CPM, it is difficult to estimate the completion time of an activity.
The critical path is not always clear in CPM.
For bigger projects, CPM networks can be complicated too.
It also does not handle the scheduling of the resource allocation.
In CPM, critical path needs to be calculated precisely.
 PERT NETWORK
Before any activity begins related to the work of a project, every project requires
an advanced, accurate time estimate. Without an accurate estimate, no project
can be completed within the budget and the target completion date. Developing
an estimate is a complex task. If the project is large and has many stakeholders,
things can be more complex. Therefore, there have been many initiatives, to come
up with different techniques for estimation phase of the project, in order to make
the estimation more accurate.
PERT (Program Evaluation and Review Technique) is one of the successful and
proven methods among the many other techniques, such as, CPM(Critical Path
Method), Function Point Counting, Top-Down Estimating, WAVE, etc. PERT was
initially created by the US Navy in the late 1950s. The pilot project was for
developing Ballistic Missiles and there have been thousands of contractors
involved. After PERT methodology was employed for this project, it actually ended
two years ahead of its initial schedule. PERT introduces uncertainty into the
account by 3 kinds of time estimating of activity duration which are as follows:
 PERT AND THREE TIME ESTIMATE
The Optimistic Time Estimate (to)
The optimistic time (to) is an estimate of the minimum time required for an activity
if nothing exceptionally goes wrong. Ideal conditions are assumed to prevail during
the execution of the activity.
The Pessimist Time Estimate (tp)
The pessimistic time (tp) is an estimate of the maximum time required for an
activity if unusually everything goes wrong, assumed to prevail during the execution.
Of course, major catastrophes like labour strike or unrest etc. are excluded from
estimate.
The Most Likely Time Estimate (tm)
The most likely time (tm) is based on experience and judgment being based on the
time required if the activity is repeated a number of times under essentially the
same conditions. This time signifies the most frequently occurring time. It reflects a
situation "things are as usual, nothing exciting".
 PERT AND THREE TIME ESTIMATE
The general shape of probability distribution curve associated with the three
time estimates of PERT is shown in Fig2.38 below
FREQUENCY DISTRIBUTION
FREQUENCY DISTRIBUTION
FREQUENCY DISTRIBUTION
FREQUENCY DISTRIBUTION
MEAN, VARIANCE & STANDARD DEVIATION
MEAN, VARIANCE & STANDARD DEVIATION
MEAN, VARIANCE & STANDARD DEVIATION
PROBABILITY DISTRIBUTION
NORMAL PROBABILITY DISTRIBUTION
NORMAL PROBABILITY DISTRIBUTION
NORMAL PROBABILITY DISTRIBUTION
THE BETA DISTRIBUTION
THE BETA DISTRIBUTION
THE BETA DISTRIBUTION
EXPECTED TIME
PROBAILITY OF COMPLETION OF PROJECT
Once the expected mean time, variance and standard deviation of the
project are determined. It is possible to calculate from probability
theory, the chance of meeting the project on scheduled time. To do
this, it is considered to have a normal probability distribution curve
with the mean value and standard deviation.
The reason behind the assumption of normal distribution curve is
that we can use information and data available about the normal
curve from a book on probability. The curve has a definite character
which can be easily integrated to find the area of curve.
To calculate the chances of meeting the time, it is necessary to plot a
normal distribution curve, the probabilities for the interval from the
mean value to the value of x given by definite integration;
PROBAILITY OF COMPLETION OF PROJECT
The probability factor (z) is the same as normal deviate. We can
directly take the value of % probability corresponding to the normal
deviate z from the probability Table. Intermediate value may be
linearly interpolated.
When z is positive, the chances of completing the project in time are
more than 50%.
When z is zero, the chances of completing the project in time are
more than fifty-fifty.
When z is negative, the chances of completing the project in time are
less than 50%.
If the probability of completion of project in time is assumed, the
scheduled time can also be forecasted.

x-µ/σ = z
CPM vs PERT
CPM vs PERT