Modern Project

Management
(Ch. 1 – T1)
BITS Pilani M K Hamirwasia
Pilani Campus WILPD
 BITS Pilani
Pilani Campus

ET ZC423/PE ZC423-Merged
Essentials of Project Management
Second Semester 2023-24
Lecture No. 2
BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956
BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956
BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956
 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

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 Introduction to Project
Management
• Project management covers the management of projects
and their running. Not all projects are the same and vary
on a number of different elements that make each
project individual.
• Project Management is the application of knowledge,
skills, tools and techniques to project activities to meet
the project objectives for launching the project.
• It is through certain project management processes that
we apply the knowledge, skills, tools and techniques to
project activities. Project management processes are
supposed to embody good management practices
common to management of almost all projects.

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BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956
BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956
 Introduction to Project
Management
Basics
•A project is a planned set of interrelated and sometimes
dependent tasks that must be executed over a certain period
of time taking into consideration certain costs, timelines,
resources and other limitations. The tasks must be completed
in order to reach a specific goal.
•It can also be defined as a set of inputs and outputs needed
to reach a specific outcome.
•A project is an initiative, with a definite starting and ending
point, that will result in a specific, unique outcome (product,
service, solution or result). Once the desired result has been
achieved, the project is complete.

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Intro to Project
Management
•Activities that go on indefinitely are typically known as
processes or operations.

•A project is unique; a process is repeatable and

strives for consistency, standardization, and no
deviation from a standard.

BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956

BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956
BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956
BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956
BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956
 Introduction to Project
Management
• Project Scope: This describes the reach and scale of the
project. Projects can be big or small depending on the
scope.
• A project’s scope is the full amount of work that needs to
be performed in order to achieve the desired outcome
under the given conditions.
• The term scope creep refers to the uncontrolled
expansion of a project’s scope, which can result in major
delays and excessive costs.
• Plan: A plan is a strategy designed to guide and control
the project so that the desired result is achieved within the
desired timeframe/cost.

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 Introduction to Project
Management
• Task: A task is a specific chunk of work or effort that
needs to be completed in order to successfully execute
the plan and achieve the desired result.
• A resource is anything that is needed to
complete/accomplish a project task. This includes
people, equipment, materials, and other costs and
expenses.
• An assignment is the link between a resource and a
task. In most cases, this means assigning a specific
person to complete a specific chunk of work.

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 Introduction to Project
Management
• Projects are comprised of one or more phases. A phase
consists of a group of activities that result in the
completion of one or more deliverables (eg., the
foundation phase of a house includes digging the trench,
assembling the forms for the basement walls, pouring
the concrete, etc.). Within each phase are various
project management processes, which are grouped into
five process groups: 1. Initiating Process Group, 2.
Planning Process Group, 3. Executing Process Group, 4.
Monitoring & Controlling Process Group, and 5. Closing
Process Group.

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 The Project Charter vs
Project Scope Statement
• A project charter is a document issued by the project
initiator/project sponsor/top management that formally
authorizes the existence of a project and provides the
project manager with the authority to utilize
organizational resources for the completion of the
project.
• Ideally, a manager just one level above the project
organization in the organization hierarchy should prepare
the project charter. Else, the project manager should
prepare the project charter. But it is issued by the senior
management/project sponsor. Please note the difference
between prepare and issue!

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 The Project Charter vs
Project Scope Statement
• The Project Charter (PC) and Project Scope Statement
(PSS) can seem like one and the same sometimes. They
are both usually contained early in the project
management plan, and they both itemize the scope of
the project to some extent.
• Well, they have a slight difference in purpose. The PC
should contain the rationale for the project, the reasons
for its existence, who initiated it, and why. In other words,
the core project foundation. The scope is very much a
secondary function of the project charter.
• The PSS tries to encompass the full scope of the project
in a para or two.

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 The Project Charter vs
Project Scope Statement
• The following checklist can be used for a Project Charter:
1. The purpose and justification of the project.
2. Project objectives, or other success criteria.
3. High level requirements (something the product or service must do or a quality
it must have).
4. Project description.
5. Product characteristics.
6. Risks.
7. Basic milestones.
8. Sample/preliminary budget.
9. Stakeholders.
10. Critical success factors.
11. Roles and responsibilities of PM and/or team.
12. Project sponsors, clients.

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 The Project Charter vs
Project Scope Statement
• The PSS can contain the following information:
1. Scope description.
2. Criteria for acceptance.
3. Project Deliverables.
4. Project Milestones.
5. Exclusions and constraints.
6. Project assumptions.

However, students may use the template given in Ch. 4 of

the textbook.

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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

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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

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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

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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.

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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.

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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.

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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

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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).

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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

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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

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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

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Why Do 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

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Project Life Cycle

 EXECUTING
Status Reports
Changes
Quality
Forecasts

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

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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

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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

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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.

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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.

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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

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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.

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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.

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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.

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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

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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.

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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.

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L2 - Essentials of Project Management
Second Semester 2023-24 (S2-23)

Thank You!
M K Hamirwasia
hamirwasiamk@pilani.bits-pilani.ac.in

BITS Pilani, Pilani Campus