Understanding Project Management

In order to understand project management, one must begin with the

definition of a project. A project can be considered to be any series of
activities and tasks that:

Have a specific objective to be completed within certain specifications

Have defined start and end dates

Have funding limits (if applicable)

Limited or finite human and nonhuman resources (i.e., money,

people, equipment)

Are multifunctional (i.e., cut across several functional lines)

  Definition of Project
 It is one shot, time limited, goal directed, major
undertaking,
requiring the commitment of varied skills and resources.

 A Project is defined to be a task which has a definite

beginning- definite end time and which consists of several activities
or jobs.

A Project generally exhibits most of the following conditions:

- It is unique.
- A Project is finite.
- Usually Complex
- A Project is Heterogeneous.
- Non-repetitive.
- Requires multiple resources from a finite resource
pool.
 Definition of Project
SMART PROJECT
S: Specific: Project should be targeting a specific
aim or goal.
M: Measurable: It should be quantifiable.
A: Attainable: It should be attainable with available
resources.
R: Realistic: It should be realistic in nature,
dreaming is fine, but we
certainly cannot manage the dreams. We need some real things to
be managed.
T: Time limited: As mention earlier there is a fixed time limit for any
project.
 Examples of projects include, but are not limited to:

Developing a new product or service.

Effecting a change in structure, staffing, or style of an organization.
Designing a new transportation vehicle.
Developing or acquiring a new or modified information
system Constructing a building or facility
Building a water system for a community.
Running a campaign for political office
Implementing a new business procedure or process.
  Difference between process and project
Process Project
Repeat process or product New process or product
Several objectives One objective
On-going One shot-limited life
People are homogeneous More Heterogeneous
Systems in place Systems must be created
Performance, cost and time is Performance, cost and time less
known certain
Part of the line organization Outside of line organizations
Bastions (support) of established Violates (disturb) established
practices practices
  Difference between process and project
Project Process
Repetition Non Repetitive Repetitive
Work force required Multi-skilled or very highly specialized for Limited skills a huge learning
short durations effect
Revenues No Revenues Revenues and profit / loss
Objectives Scope, performance, time, cost Profits generated, cost reduced,
quality of products or services
Equipment needed Special purpose equipment’s for a short Some equipment’s are
duration. continuously used
Subcontracting Essential, involves many subcontracting Generally avoids use of
agencies. subcontracting agencies.
Risk Very high risk as generally no chances of Risk is less as chances of
recursion improvement always there.
  The Project Life Cycle
What is the project life cycle?
The project life cycle includes the steps required for project managers
to successfully manage a project from start to finish. There are 5
phases to the project life cycle (also called the 5 process groups)
—initiating, planning, executing, monitoring/controlling, and closing.

• Project managers or the organization can divide projects into phases to

provide better management control with appropriate links to the ongoing
operations of the performing organization.

• Collectively, these phases are known as the project life cycle. Many
organizations identify a specific set of specific set of life cycles for use on
all of their projects.
  Definition of Project Management:
Project management, on the other hand, involves project planning and
project monitoring and includes such items as:
Project planning
Definition of work requirements Definition
of quantity and quality of work
Definition of resources needed
Project monitoring
Tracking progress
Comparing actual outcome to predicted outcome
Analyzing impact
Making adjustments
  Definition of Project Management:

Project Management: Project

management is the management
activities of planning, directing,
and controlling resources to
meet the technical, cost and time
constraints of a project.

Text book 01: Overview of Project Management

Main Objective of Project management:
• To understand the importance of management in
today’s world.
• To establish the importance of projects in,
implementing organization strategy.
• To understand the rules for creating a work
Breakdown structure for the project.
• To demonstrate the importance of WBS to the
management of projects and how it serves as a
database for planning and control.
• To develop a network diagram for a project.
  Need of Project management,

Why Project Management is Important?

 Fast Technological changes : Electronic goods

 Narrow product launch windows
 High entropy of system: Expansion
 Short life cycle of products: s/w, mobile
 Globalization impacts: BRICS
 Large organizations
BRICS is an acronym for Brazil, Russia, India, China, and South Africa. Goldman Sachs
economist Jim O'Neill coined the term BRIC (without South Africa) in 2001, claiming that by
2050 the four BRIC economies would come to dominate the global economy by 2050.
 Project Management Processes.
10 Knowledge Area
1. Project Integration Management
2. Project Scope
3. Project Schedule Management
4. Project Cost Management
5. Project Quality Management
6. Project Resource Management
7. Project Communications Management
8. Project Risk Management
9. Project Procurement Management
10. Project Stakeholder Management
 Project Management Processes.

PMBOK stands for Project Management BodDy.r So.fL.KTandoew_PlCedCgoEe_, Paunned it is the entire collection of
processes, best
The Importance of Project Management for an Organization:
  The Project Manager (PM)
A Project Manager (PM)

Project managers play the lead role in planning,

monitoring, controlling, executing, and closing out
projects.
accountable for the entire project They are
scope, the project team and
resources, the project budget, and the success or failure of the
project.
  The Project Manager (PM)
The importance of effective project managers
As more and more of our everyday work becomes project-based, it follows
that more and more people are finding themselves in the business of
managing projects — even if they’re not traditional project managers.

Project managers are the people who get buy-in for the project, who
communicate the changes, who understand how to get the best work out of
everyone, and who steer the project from beginning to end, even when it’s
being pushed off track. They’re the ones who not only plan and organize the
work itself, but who can explain the importance of planning for projects, so
that everyone on the team knows why what they’re doing is important.

The right person takes your project management strategy from good to great.
They turn your project’s plan into action. And maybe most importantly, they
bring everyone along on the journey — together
  The Project Manager (PM)
Project manager responsibilities

The project management phases intersect with 10 knowledge

areas, which include integration, scope, time, cost, quality, human
resources, communication, risk procurement, and stakeholder
management.

A project manager, with the help of their team, is charged with

multiple responsibilities that span the five project phases of a
project life cycle (initiating, planning, executing, monitoring, and
closing) below.
  The Project Manager (PM)

Highly effective project managers must have the following skills:

1. become a strategic business partner

2. encourage and recognize the valuable contributions of others
3. respect and motivate stakeholders
4. stress integrity and accountability
5. are fully entrusted in the success of the project
6. are able to “work in the leaden”
 Phases of Project Management Life Cycle.
According to the PMBOK Guide (Project Management Body of Knowledge) by the Project
Management Institute (PMI), a project management life cycle consists of 5 distinct phases
including initiation, planning, execution, monitoring, and closure that combine to turn a
project idea into a working product and 10 knowledge area’s

10 Knowledge
Project Integration Project Scope Project Schedule Management
Project Cost Management
Area
Project Quality Management Project Resource Management

Project Risk Management Project Procurement Management Project Stakeholder Management

Project Communications Management
 Mapping of Project Management Processes and 10 knowledge area’s.
Project Management Process Groups
Knowledge Areas Initiation Planning Execution Monitoring and Controlling Closing Total Processes

Project Integration Management 1 2 3,4 5,6 7 7

Project Scope Management 1,2,3,4 5,6 6

Project Schedule Management 1,2,3,4,5 6 6

Project Cost Management 1,2,3 4 4

Project Quality Management 1 2 3 3

Project Resource Management 1,2 3,4,5 6 6

Project Communications Management 1 2 3 3

Project Risk Management 1,2,3,4,5 6 7 7

Project Procurement Management 1 2 3 3

Project Stakeholder Management 1 2

Dr. S . L.Tade_ PCCoE_Pune
3 4 4
 Mapping of Project Management Processes
Project Integration Processes
• Develop Project Charter
• Develop Project Management Plan
• Direct and Manage Project Work
• Monitor and Control Project Work
• Perform Integrated Change Control
• Close Project or Phase

Scope Management Processes

• Plan Scope Management
• Collect Requirements
• Define Scope
• Create WBS
• Validate Scope
• Control Scope
 Mapping of Project Management Processes
Project Time/ schedule
Management Processes
• Plan Schedule Management
• Define Activities
• Sequence Activities
• Estimate Activity Resources
• Estimate Activity Durations
• Develop Schedule
• Control Schedule
•
• Project Cost Management Processes
• Plan Cost Management
• Estimate Costs
• Determine Budget
• Control Risks
• Project Quality Management
 Mapping of Project Management Processes
• Project Quality Management Processes
• Plan Quality Management
• Perform Quality Assurance
• Control Quality

• Project HR Management Processes

• Plan Human Resource Management
• Acquire Project Team
• Develop Project Team
• Manage Project Team

• Communications Management Processes

• Plan Communications Management
• Manage Communications
• Control Communications
Mapping of Project Management Processes
• Risk Management Processes
• Plan Risk Management
• Identify Risks
• Perform Qualitative Risk Analysis
• Perform Quantitative Risk Analysis
• Plan Risk Responses
• Control Risks
Procurement Management Processes
• Plan Procurement Management
• Conduct Procurements
• Control Procurements
• Close Procurements
• Stakeholder Management Processes
• Identify Stakeholders
• Plan Stakeholder Management
• Manage Stakeholder Engagement
• Control Stakeholder Engagement Dr. S. L.Tade_PCCoE_Pune
 05
IMP A C T O F DE LAYS IN P R O J E C T
C O M PLETIO N S . E S S E NTIA L S O F P R O J E C T
MA N A G E M EN T P HILO S O P HY.
 Impact of Delays in Project Completions

Why do projects get delayed?

However, delays can happen for various reasons such

weather, equipment failures, labor shortages, missing or
incorrect data, project mistakes and conflicts. There are some
reasons, like weather that are beyond your control.
 Impact of Delays in Project Completions
C O M PLE TION O F A P R O J E C T IN TIME A N D WITHIN
B UDG E T IS A C O M M O N G O A L O F A C O N TR A C T O R
A N D A CLIE N T
DE LAYS  FA ILU R E O F B U D G E T  d ISP U T E S
(TIME = M O NE Y )
A DE LAY E D C O M P LE TION O F W O R K C O M P A R E D
T O THE P L A N N E D /
C O N TR A C T S C HE D ULE (= LO S S O F TIME)
IT’S P O S S IBLE T O M AK E U P TIME B Y W O R K ING
FA S TE R O R R E A R R A N GING THE W O R K
S E Q U EN C E
C O N TR A C T O R S R E LA TE D D E LAYS A R E THE M O S T
S IGNIFICA N T O N E S .
 Impact of Delays in Project Completions
DELAYS C AN BE C AUSED BY O NE O R MO RE O F THE
FO LLOWING AGENCIES :
C LIENT AND HIS TEAM-
MATES C O NTRACTOR AND
HIS TEAM-MATES NATURE
(I.E. EARTHQUAKES )
DUE TO A THIRD PARTY (I.E.
S TRIKE)
FAULTS IN DO C UMENTS, DES IGNS O R
DEC ISIONS INS UFFICIENT NUMBER O F
EQ UIPMENT INAC C URATE C O S T O R
TIME ES TIMATION
PO O R S ITE MANAGEMENT AND
S UPERVISION S HO RTAGE O F
C O NS TRUC TION MATERIALS
INC OMPETENT PROJEC T TEAM
 Impact of Delays in Project Completions
THE FOLLOWING TYPES OF DELAY
HELP TO DETERMINE THE IMPACT
OF THE DELAY ON THE PROJECT :
C RITICAL OR NON-CRITICAL
ExC USABLE OR NON-EXCUSABLE
C ON CURRENT OR NON-
CONC URRENT C OMPENSABLE
OR NON-C OMPENSABLE
 Impact of Delays in Project Completions
C RITIC A L OR NON-CRITICAL
 Critical delays: The delay interferes with the total time frame
Non-critical Delays: The delay does not interfere with the
total time frame

ExC USABLE OR NON-

EXCUSABLE
Excusable delays: Delay caused by the client, e.g. the owner
denies access to the site or Delay caused by strike, fire,
unusual weather etc.
 Non-excusable delays: Delays caused by the sub-
/contractor, e.g. not enough manpower on site to complete
the job in time.
 Impact of Delays in Project Completions
C ONC URRENT DELAYS :
Two or more delay events occur at the same time or overlap
to some degree.
At least one of the delays has to be caused by the
contractor and one by client.
NON-C ONCURRENT DELAYS :
 Delays do not overlap.
The client’s failure to provide to coordinate several prime
contractors
 The client’s failure to provide adequate access to the
project
 Change orders placed by the client
 Any interference by the client
 Delays caused by a third party under the control of
 Impact of Delays in Project Completions
The claim depends on the cause of the delay, which must be identified.
Therefore the responsibility is being clarified.
Possible Claims:
 Time extensions (for the contactor)
 Financial compensations (for client and contractor)
For the client:
 Delay in use of project
 Capital is blocked
 Escalation (Increase) in subsequent
investment For the contractor:
 Delay in getting profit
 Idle of resources (machines, workers, etc.)
 Productivity loss due to uncontracted work
period
How to avoids Delays in Project
Completions IDENTIFYING THE C AUS E
THAT LED TO THE DELAY PROVIDING
ENO UGH FINANC IAL RES O URCES
RES O URCE AVAILABILITY
C O MPETENT PROJECT MANAGEMENT
FREQ UENT PROGRES S
MEETINGS
C HO O S ING THE RIGHT (EXPERIENCED)
C OCNS
AC ULTANTS,
URATE C O S TS UPPLIERS AND
ES TIMATION, ETC .
E S S E NTIA L S O F P R O J E C T MA N A G E M EN T
P HILO S O P HY.
What is project management philosophy?

A personal Project Leadership Philosophy is a summary

of the guiding principles, beliefs, and practices
that shape the way you lead projects and
teams. ... The key is to get this philosophy on paper so
that you can consciously and purposefully consider how
you might improve or adapt your style to be more
successful.
E S S E NTIA L S O F P R O J E C T MA N A G E M EN T
P HILO S O P HY.
E S S E NTIA L S O F P R O J E C T MA N A G E M EN T
P HILO S O P HY.
A personal Project Leadership Philosophy is a summary of
the guiding principles, beliefs, and practices that shape the
way you lead projects and teams.

This philosophy should not be static—our industry, our company, our

mentors, and our experience should always be influencers of our
approach. The key is to get this philosophy on paper so that you can
consciously and purposefully consider how you might improve or
adapt your style to be more successful.
Project philosophies can look any way you would like them to, so
long as they capture meaningful information about the
experiences, assets, and liabilities you bring to the role—and
how you intend to leverage or mitigate those for greater
success. Dr. S. L.Tade_PCCoE_Pune
E S S E NTIA L S O F P R O J E C T MA N A G E M EN T
PPMI
HILO S OManagement
Quality P HY. principles are based on few popular philosophies.
Quality philosophies
Total Quality Management (Deming):- Proactive approach with Stastical
analysis.
Zero Defects (Crosby):-Do it right the first time.
Fitness for use (Juran):- Satisfy customer needs
Continuous Improvement (Kaizen):- Proactive approach to process
improvement
Gold plating:- Unacceptable practice of providing more than
requested
Cost of Quality: - cost of confirming is less than cost of non-confirming
Design of experiments:- Isolate factors that influence results
6 sigma- strive for 99.9997%
ISO 9000:- documents what you do; what you document
E S S E NTIA L S O F P R O J E C T MA N A G E M EN T
P HILO S O P HY.
Quality principles
Define and satisfy customer’s needs.
Prevent rather than inspect
Be active
rather reactive Validate
project processes
Measure
against approved
standards
Cont