PROJECT MANAGEMENT

STEPS AND ELEMENTS

OF
PROJECT
MANAGEMENT

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 What is a Project?
• A project is a temporary endeavor undertaken to
produce a unique product or service.
Characteristics of Projects :
 Temporary –Definite beginning and end
points(time)
 Unique –New undertaking, unfamiliar ground
 Budget –Limited cost
 Scope – clearly defined magnitude of work to
be done
 Constraints – Specific performance requirements

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3
 What is Project Management?
• Project Management is facilitating the planning,
scheduling, and controlling of all activities that must
be done to achieve project objectivities.
Requirements for a successful project management :
• Shared understanding among the team
members .
• The people who must do the work should help
plan it.
• The role of the project manager should be of
an enabler ( ie. Not a project czar but a leader)
Project Management General management

Projects are more schedule More goal / target oriented

intensive

The people in the project team They directly report the

often don’t report directly to manager.
the project manager.

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 What project management is not?
• Not just scheduling
It is a Common misconception
( more important is Work Breakdown Structure – ie. To
identify all tasks to be done)
• One person projects
Because there is no need for a critical path schedule.
It just needs task listing.

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 Causes of project failure
• Sponsor s demand that the project manager
finishes the job by a certain time, within
budget(cost), and at a given magnitude/scope,
while achieving specific performance levels.
ie. C=f (P,T,S)
where, C=cost ,P=performance , S=scope

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 Triple Constraints

Performance Cost

Scope

Time
 Project Phases/ Life Cycle
PLANNING EXECUTION CLOSEOUT
CONCEPT DEFINITION

• DEFINING • DEVELOPME
OF NT OF
• MARKETIN PROBLEM, STRATEGY, • MONITORING • FINAL
G INPUT, • DEVELOPME • IMPLEMENTA OF WORK AND REPORTS
• SURVEY OF -NT OF TION OF PROGRESS • LESSONS
COMPETITIO VISION, PLANNING, CORRECTIVE LEARNED
-N • WRITING • RISK ACTION • REVIEW
MISSION MANAGEMEN
• STSTEMENT T

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 Steps In Managing A Project
DEFINING THE PROBLEM

DEVELOP SOLUTION OPTIONS

PLAN THE PROJECT

1.What must be done? 2.Who will do it?
3.How will it be done 4.When must it be done?
5.How much it will cost? 6.What do we need to do it?

EXECUTE THE PLAN

MONITOR & CONTROL PROCESS

1.Are we on target? If not what must be done?
2.Should the plan be changed?
CLOSE PROJECT
1.What was done well? 2.What
should be

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ELEMENTS OF PROJECT MANAGEMENT

• 4 basic elements of a project management:

- these are interrelated and must managed
effectively
4.SCOPE
2.TIME • most
1.RESOURCES 3.MONEY
Task important
• People, Costs,
durations, • Project size
equipment, contingencies,
dependencie goals
material profit
s, critical path requirements

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 BUSINESS PLAN
Definition -
A document that details a business’s targets, and
how it will achieve them.
Document that outlines a firm's financial and
operational goals and benchmarks.
If a major change is required in the existing
business or planning a new venture 3-5years,then
business plan is essential .
 Things to be included in Business Plan
1) Mission Statement
2) Describe your Business
3) Short term & Long Term Goals
4) Potential Customers
5) Competition Analysis
6) Financial Analysis
7) Marketing
 Contd…
• Business Plan typically covers 5 major content areas:-
1. Background Information
a) Current status
b) History
c) Management Team
2. A Marketing Plan
a) Pricing
b)Demand management
c) Distribution
d)Promotion & Brand Developement
 Contd….
3. An Operational Plan
a) Manufacturing / Development Plan
b) Information & Communication Technology Plan
c) Cost allocation Model
4. A Financial Plan
a) Current Financing
b) Funding Plan
c) Financial Forecast
5. Risk Analysis
a) Risk Evaluation
b) Risk Management Plan
6. Decision making criteria
 DEVELOPMENT PROJECT
• DEFINITION –
A project intended to increase a developing
country’s ability to produce in the future.

Such projects are most commonly additions to the

country’s capital stock, but they may involve
improvements in infrastructure , educational
facilities , discovery or development of natural
resources etc.
 Things about Development Project
1) Project estimates must be based on the
application’s architecture.
2) Project estimations should also come from the
ground up.
3) Don’t forget modular estimates.
4) Development Language matters
5) Project estimation software and tools help identify
“what-if” scenarios.
6) Price break down helps in prioritization.
 Things to watch out
1) Knowing your team is as important as knowing
your customer.
2) No matter how great plan A might look , always
have a plan B.
3) Avoid rework , design well.
4) Think before you code.
5) Innovation = Being wiser than what you were
yesterday.
Development Project Business Plan

Intended to increase countries ability to Intended to increase organization’s ability

produce in the future. and its return.

Involved in building country’s infrastructure , Organization’s infrastructure .

manpower & efficient use of natural
resources.

Growth oriented Profit oriented

People’s participation is more People’s participation is less

Mostly implemented for the poor and Implemented for the benefit of the
deprived people. organization.

Utilization of natural resources in best Plans to manage the organizations funds,

possible way. E.g.- Manpower utilization , assets to the maximum.
institutional building.
 ORGANIZATION SYSTEMS

ORGANIZATIONS

PROJECT BASED NON PROJECT BA SED

Org. that derive revenue primarily from

Org. that have adopted management by projects
performing projects Manufacturing, Financ ial servic e firms which have a separate dept as proj based
ORGANIZATIONS CULTURE & STYLE
• Org. have developed unique culture
• They reflect shared values, norms and
expectations in their policies and procedures
• Org. culture often have a direct influence on
project
ORGANIZATION STRUCTURE

ORGANIZATION

FUNCTIONAL PROJECTIZED MATRIX

ORGANIZATION PROJECT
It is not time bound It is time bound i.e. definite
beginning and definite end
Needs wide range of skills and Needs specific skills to accomplish
expertise the project
Organization is visionary Most of projects are TARGET
based
A organization is lead by a leader A project is lead by a Manager
whose decisions are depend on
the organization’s head.

It has a board of members who The executive committee takes

take key decisions key decisions
Should put Financial statement Needs to show projected balance
analysis,cashflow analysis and sheet, cash flow, cost analysis and
ratio analysis social accounting
ORGANIZATION PROJECT
Organization can go for A project can not
IPO
Organization is It is contract based
permanent
It can recruit any time Can’t recruit anytime

Answerable to many Answerable to the

people who are company with which the
associated with the project is associated
organization