ET ZC423 / PE ZC423 / POWTP

ZC423
ESSENTIALS OF PROJECT
MANAGEMENT

BITS Pilani FIRST SEMESTER 2019-20

Pilani Campus M K Hamirwasia
 BITS Pilani
Pilani Campus

MODULE 1: BASICS OF PROJECT

MANAGEMENT
Lecture No. 1
Introduction to Project
Management
• Definition of Project Management
• Evolution of Project Management
• Definition of a Project
• Characteristics of a Project
• The Project Life Cycle
• Project, Program, Portfolio
• Current Drivers of Project Management
• The Project Manager
• Project Management Process Groups
• Project Management Knowledge Areas
• Project Integration Management
• Some Definitions

BITS Pilani, Pilani Campus

Characteristics of a Project

• A Project consists of a series of activities and tasks that

– Have a Specific Objective to be Completed within
Certain Specifications
– Have Definite Start and End Dates
– Have Funding Limits
– Consume Resources (human and non-human)
– Meet and Exceed Customer Needs
– Are Multifunctional - the Involvement of Several
Departments and Professionals
– Typically Involve Doing Something That has Never been
Done Before.

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Current Drivers of PM

• Time to Market

• Complexity (Tech.)

• Sustainable Development

• Corp. Downsizing (Outsourcing)

• Fulfil Customer Needs (Customization…)

• Project Portfolio Management

BITS Pilani, Pilani Campus

Some Definitions

• Scope
• Scope Creep
• Plan
• Task
• Resource
• Assignment

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INTRODUCTION TO
PROJECT MANAGEMENT
• Evolution and Application
• Project
• Project, Program, Portfolio
• Project Life Cycle
• The Project Manager
• Being Part of a Project Team
• Project Integration Management

BITS Pilani, Pilani Campus

EVOLUTION and
APPLICATION
• Developed in the late 1950’s to aid planning and scheduling of
large projects
• Defence
• Construction Industry
• Aerospace
• Automakers – Toyota, Nissan, BMW
• Electronics
• Information Technology
• Steel & Cement
• Fertilizer
• Oil and Gas
• Pharmaceutical

BITS Pilani, Pilani Campus

WHAT IS A PROJECT?

• A Project is a Complex, Non-routine, One-time Effort Limited

by Time, Resources and Performance Specifications Designed
to Meet Customer Needs.
• A Project is a Temporary Endeavour to Create a Unique
Product, Service or Result.

• EXAMPLES
• Introduction of a new kind of detergent in the market
• Enhancing the capacity of a plant
• Reducing the downtime of machines
• Improving the Quality of a Product
• Erection and Commissioning of a Power Plant
• Preparation of documents for takeover of a Firm
• Overhauling and Turnaround of an Oil Refinery

BITS Pilani, Pilani Campus

CHARACTERISTICS,
ELEMENTS AND NEEDS
• CHARACTERISTICS
• A Project consists of a series of activities and tasks that
– Have a Specific Objective to be Completed within Certain
Specifications
– Have Definite Start and End Dates
– Have Funding Limits
– Consume Resources (human and non-human)
– Meet and Exceed Customer Needs
– Are Multifunctional - the Involvement of Several Departments
and Professionals
– Typically Involve Doing Something That has Never been Done
Before.

BITS Pilani, Pilani Campus

ELEMENTS OF A PROJECT

• Project Selection
• Prioritization Of Projects
• Scope Of Work
• Work Breakdown Structure
• Risk Management
• Cost and Time Estimate
• Procurement
• Allocation Of Resources
• Execution Of Jobs

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ELEMENTS OF A PROJECT

• Subcontracting
• Regular Review
• Feedback
• Control
• Commissioning
• Final Handing Over to the Client
• Evaluation of Project Manager and Team
• Retrospectives

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NEED OF A PROJECT

 Project: Fulfilling the needs and requirements of the

Customer

 Stakeholders: Meeting the needs of Stakeholders

 Organization: Meeting the strategic needs of the

organization

 Individuals: Meeting the goals and aspirations of Project

Manager and project team members

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PROJECT DRIVEN ORGANIZATION Vs NON-
PROJECT DRIVEN ORGANIZATION

• Project Management in project-driven organizations is

mature and respected. On the other hand, in non-project-
driven organizations, Project Management is still in its
infancy, and is often looked at with skepticism.
• Project-driven organizations make the lion’s share of their
income through projects; non-project-driven organizations
mainly make their income through production.
• The Project Manager is responsible of the profitability and
loss in project-driven organizations. In non-project-driven
organizations, the responsibility for profitability and loss is
ambiguous.

BITS Pilani, Pilani Campus

PROJECT DRIVEN ORGANIZATION Vs NON-
PROJECT DRIVEN ORGANIZATION

• Project-driven organizations adopt either fully projectized

or matrix organizational structures. Non-project-driven
organizations usually adopt a
functional organizational structure.
• Project-driven organizations have flexible career paths,
where one can ascend quickly to higher positions. Non-
project-driven organizations have traditional career
paths, where moving upwards in the company ladder is
very difficult. Quite often, one has to wait for their
manager to get fired/resign/retire/perish to ascend the
company’s ladder and assume a better position.

BITS Pilani, Pilani Campus

PROJECT DRIVEN ORGANIZATION Vs NON-
PROJECT DRIVEN ORGANIZATION

Examples of industries where project-driven organizations are

predominant include:
• Construction
• Aerospace
• Research

Examples of industries where non-project-driven organizations are

predominant include:
• Manufacturing
• Services
• Farming
• Natural Resources

BITS Pilani, Pilani Campus

PROJECT DRIVEN ORGANIZATION Vs NON-
PROJECT DRIVEN ORGANIZATION

IT (Information Technology) organizations (that fall under

the services industry) are considered to be hybrid, where
parts of such organizations are considered to be project-
driven (such as the development of a new software),
while other parts are considered to be non-project-driven
(for example supporting applications).

BITS Pilani, Pilani Campus

LIMITATIONS OF NON-PROJECT
DRIVEN ORGANIZATIONS

• Projects may be few and far between

• Not all Projects have the same Project Management
Requirements
• Executives do not have Sufficient Time to Manage
Projects
• Projects Tend to be Delayed Because Approvals most
often Follow Vertical Chain of Command
• Project Staffing is on a Local Basis
• Heavy Dependence upon Subcontractors and Outside
Agencies for Project Management Expertise

BITS Pilani, Pilani Campus

TYPES OF PROJECTS

• Classification of Projects
• Different Sectors: Public Sector, Private Sector, Service
Sector, Joint Sector
• Industrial
• Software
• Service
• Infrastructure
• Construction
• Expansion
• Modernization

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Types of Projects

• Maintenance
• Plant Shutdown and Turnaround
• Diversification
• Integration
• Forward Integration
• Backward Integration
• Vertical Integration
• Acquisition
• Rehabilitation
• Research and Development

BITS Pilani, Pilani Campus

WHY DO PROJECTS FAIL?

• Inadequately trained and /or inexperienced project

managers
• Failure to set and manage expectations
• Poor leadership at any and all levels
• Failure to adequately identify , document and track
requirements
• Poor plans and planning processes
• Poor effort estimation
• Cultural and ethical misalignment

BITS Pilani, Pilani Campus

Top 10 Reasons Projects
Fail
• Misalignment between the project team and the business
or other organizations it serves
• Inadequate or misused methods
• Inadequate communication , including progress tracking
and reporting

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PROJECT LIFE CYCLE

• Project Life Cycle recognizes that projects have limited

span
• Predictable changes in level of effort and focus over the
life of the project

• Stages:
• Defining Stage
• Planning Stage
• Executing Stage
• Delivery / Closing Stage

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Project Life Cycle

 DEFINING
Goals
Specifications
Task
Responsibilities

 PLANNING
Scheduling
Budgets
Resources
Risks
Staffing

BITS Pilani, Pilani Campus

Project Life Cycle

 EXECUTING
Status Reports
Changes
Quality
Forecasts

 CLOSING / DELIVERY
Train Customer
Transfer Documents
Release Resources
Evaluation
Lessons Learned

BITS Pilani, Pilani Campus

PRODUCT LIFE CYCLE

• Research and Development

• Market Introduction
• Growth
• Maturity
• Deterioration
• Death

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LIFE CYCLE PHASES FOR
DIFFERENT PROJECTS
• Engineering
– Start Up
– Definition
– Main
– Termination

• Manufacturing
– Formation
– Building
– Production
– Phase-out
– Final Audit

BITS Pilani, Pilani Campus

LIFE CYCLE PHASES FOR
DIFFERENT PROJECTS
• Software Development
– Conceptual
– Planning
– Definition and Design
– Code
– Integration / Testing
– Conversion
– Maintenance
• Construction
– Planning, Data Collection and Procedures
– Studies and Basic Engineering
– Major Review
– Detailed Engineering
– Construction
– Testing and Commissioning

BITS Pilani, Pilani Campus

The Project Manager

A project manager is a person who has the overall responsibility for

the successful initiation, planning, design, execution, monitoring,
controlling and closure of a project. Construction, petrochemical,
architecture, information technology and many different
industries that produce products and services use this job title.
The project manager must have a combination of skills including
an ability to ask penetrating questions, detect unstated
assumptions and resolve conflicts, as well as more general
management skills.
Key among a project manager's duties is the recognition that risk
directly impacts the likelihood of success and that this risk must
be both formally and informally measured throughout the lifetime
of a project.

BITS Pilani, Pilani Campus

The Project Manager

Risks arise from uncertainty, and the successful project

manager is the one who focuses on this as their primary
concern. Most of the issues that impact a project result in
one way or another from risk. A good project manager can
lessen risk significantly, often by adhering to a policy of
open communication, ensuring every significant participant
has an opportunity to express opinions and concerns.
A project manager is a person who is responsible for making
decisions, both large and small. The project manager
should make sure they control risk and minimize
uncertainty. Every decision the project manager makes
must directly benefit their project.

BITS Pilani, Pilani Campus

The Project Manager

Roles and Responsibilities

The role of the project manager encompasses many activities
including:
Planning and Defining Scope
Activity Planning and Sequencing
Resource Planning
Developing Schedules
Time Estimating
Cost Estimating
Developing a Budget
Documentation
Creating Charts and Schedules

BITS Pilani, Pilani Campus

The Project Manager

Risk Analysis
Managing Risks and Issues
Monitoring and Reporting Progress
Team Leadership
Strategic Influencing
Business Partnering
Working with Vendors
Scalability, Interoperability and Portability Analysis
Controlling Quality
Benefits Realization
Finally, senior management must give a project manager support and authority if
he or she is going to be successful.

BITS Pilani, Pilani Campus

Being Part of a Project
Team
Team members are selected because they have particular
skills that are required to complete project tasks. Examples
include specialists in business or technical disciplines, or
an outside supplier.
The Team Member’s role is to successfully perform the tasks
that have been allocated, keeping the project manager
informed of progress as well as any issues that may arise.
The role often requires team members to work on their own
initiative in areas where they are the ‘experts’. This places
the responsibility on them to manage their own day to day
work, recognize the authority of the Project Manager and
report to the Project Manager as appropriate.

BITS Pilani, Pilani Campus

Being Part of a Project
Team
Team membership often changes as a project moves through
its development. This means there are frequently two types
of team member:
Core Team Member - a full time role on the project but not
necessarily for the duration of the project.
Extended Team Member - a part time role on the project .
These team members will usually have their regular job to
do, or they may be from an outside company.
Part of the Team Member’s role is to pay attention to the
problems others may be facing. Tolerance and good
communications are essential ingredients of successful
project teams.

BITS Pilani, Pilani Campus

Being Part of a Project
Team
The responsibilities assigned to individual team members
may vary but typically will include:
• understanding the purpose and objectives of the project
• ensuring a correct balance between project and non-
project work
• working to timescales and within cost constraints
• reporting progress against plan
• producing the deliverables/products to agreed
specifications
• reviewing key project deliverables/products

BITS Pilani, Pilani Campus

Being Part of a Project
Team
• identifying issues
• identifying risks associated with the project
• working together as a team
• contributing towards successful communication
• contributing towards positive motivation

On small or specialized projects, the Team Member may

also be the Project Manager.

BITS Pilani, Pilani Campus

PROJECT INTEGRATION
MANAGEMENT

Inputs Outputs
(Resources) Integrated Process (Products, Services, Profits)

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PIM

Project Integration Management is a collection of

processes required to ensure that the various elements
of the projects are properly coordinated. It involves
making trade-offs among competing objectives and
alternatives to meet or exceed stakeholder needs and
expectations.

In other words, Project Integration Management process

comprises of activities like identifying, defining,
combining, and coordinating various processes related
to project.

BITS Pilani, Pilani Campus

ET ZC423 / PE ZC423 /
POWTP ZC423 – L1

Thank You!
Sampark Sutra:
M K Hamirwasia
+91 85868 14104
hamirwasiamk@pilani.bits-pilani.ac.in

BITS Pilani, Pilani Campus