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Advance Project & Production
Management (AAPM)-OM3
Introduction to Project Management & Planning

What is a project?
• A project requires an organized set of work efforts.
• Projects require a level of detail that is progressively
elaborated upon as more information is discovered.
• Projects are subject to limitations of time and
resources such as money and people.
• Projects have a defined beginning and ending.
2
Project – “a temporary endeavor undertaken to
create a unique product, service, or result.”

What is a project?
• A project has a unique combination of stakeholders
3
stakeholders – “persons or organizations … that are
actively involved in the project, or whose interests may
be positively or negatively affected by execution or
completion of the project.”

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Project
Characteristics
A definite start and end point
A definite start and end point
Once the end point is reached
project is over
It is attempting to achieve
something new

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to a publicly accessible website, in whole or in part. 5
Project
constraints
Time
Cost
Scope
Resources
Risk
Quality

Project Management (PM)
• PM includes work processes to plan, execute, and
controlling of project activities
• Work processes require tradeoffs among the scope,
quality, cost, and schedule of the project
• PM includes leadership tasks for visioning, motivating,
and promoting work associates.
• PM knowledge, skills, and methods apply for most
projects 6
Project management – “the application of knowledge,
skills, tools and techniques to project activities to meet
project requirements.” PMBOK® Guide

History of Project Management
• 3300 BC Indus Valley Civilization (well constructed
houses and city)
• 2570 BC Giza Pyramid
• 208 BC Great Wall of China
• 1917 Henry Gantt introduced Gantt chart
• PM emerged as a formal discipline in the 1950s
• 1957 Critical Path Method technique (CPM)
developed by DuPont Corporation
• 1958 Program Evaluation and Review
Techniques(PERT) developed by US Navy
7

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to a publicly accessible website, in whole or in part.
History of Project Management
• 1962 Work Breakdown Structure (WBS) was
introduced by US department od Defense
• 1965 IPMA, International Project Management
Association was formed
• 1969 PMI ( Project Management Institute)US based
non profit professional organization was
established to promote project management
professionals
• 1987 PMI published PMBOK Guide (after that
updated editions kept on coming. 7th edition came
2021)
8

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to a publicly accessible website, in whole or in part.
History of Project Management
• 1997 critical chain project management technique
was invented
• 2012 ISO 21500:2012 guidance on Project
Management
• Manufacturing, research and development,
government, and construction projects used and
refined management techniques
9

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to a publicly accessible website, in whole or in part.
The Project Management Institute
• The largest professional organization
• Publishes and regularly updates A Guide to the
Project Management Body of Knowledge (PMBOK®
Guide)
• Established a professional certification - Project
Management Professional (PMP®)
• Established a second certification—Certified
Associate in Project Management (CAPM)
10

Highlights of Projects
• Projects are temporary and unique; operations are
more continuous.
• Project managers need “soft skills” and “hard skills”
to be effective.
• Project managers frequently have more
responsibility than authority.
• Projects go through predictable stages called a life
cycle.
11

Projects Versus Operations
• Projects are temporary
• Projects have both routine and unique
characteristics
• Operations consist of the ongoing work needed to
ensure that an organization continues to function
effectively
12

Soft Skills and Hard Skills
• Soft skills include communication and leadership
activities.
• Hard skills include risk analysis, quality control,
scheduling, and budgeting work
• A successful project manager needs both soft and
hard skills along with the judgment of when each is
more necessary.
• Training, experience, and mentoring are
instrumental in developing necessary skills.
13

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Project Life Cycle
• All projects go through predictable stages called a
project life cycle.
• Life cycle allows for control to assure that the
project is proceeding in a satisfactory manner and
that the results are likely to serve its customer’s
intended purpose
14
Project life cycle – “a collection of generally sequential
project phases whose name and number are determined
by the control needs of the organization or organizations
involved in the project.” PMBOK® Guide

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Project Life Cycle Stages
• Selecting and initiating— a project is proposed, planned at a
high level, and key participants commit to it in broad terms
• Planning—starts after the initial commitment, includes
detailed planning, and ends when all stakeholders accept the
entire detailed plan.
• Executing—includes authorizing, executing, monitoring, and
controlling work until the customer accepts the project
deliverables.
• Closing and realizing—all activities after customer acceptance
to ensure project is completed, lessons are learned, resources
are reassigned, contributions are recognized, and benefits are
realized.
15

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Project Life Cycle Stages
• Most companies insist that a project must pass an
approval of some kind to move from one stage to
the next
• The project life cycle is highly formalized and very
specific
• Projects are measured at selection, progress
reporting, and benefits realization points
16

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to a publicly accessible website, in whole or in part.
Project Life Cycle Stages
17

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to a publicly accessible website, in whole or in part.
Defining Project Success and Failure
• Project success is creating deliverables that include
all of the agreed upon features
• Outputs please the project’s customers.
• Customers use the outputs effectively as they meet
quality goals
• The project should be completed on schedule and
on budget (meet time and cost constraints).
18

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to a publicly accessible website, in whole or in part.
Defining Project Success and Failure
• Successful projects are completed without heroics
• People who work on the project should learn new skills
and/or refine existing skills.
• Organizational learning should take place and be
captured for future projects.
• Reap business-level benefits such as development of
new products, increased market share, increased
profitability, decreased cost, etc.
19

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to a publicly accessible website, in whole or in part.
Project Success
•Meeting Agreements
•Cost, schedule, and specifications met
•Customer’ Success
•Needs met, deliverables used, customer satisfied
•Performing Organization’s Success
•Market share, new products, new technology
•Project Team’s Success
•Loyalty, development, satisfaction
20

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Why Projects Fail
• Not enough resources are available for project
completion.
• Not enough time has been given to the project.
• Project expectations are unclear.
• Changes in the scope are not understood or agreed
upon by all parties involved.
• Stakeholders disagree regarding expectations for
the project.
• Adequate project planning is not used.
21

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to a publicly accessible website, in whole or in part.
Levels of Decision making
22
Operating
decision
Administrative
decision
Strategic decision
Taken by
management
level
Lower level
management
Middle level
management
Top level
management
Structure of the
decision
Routine Semi-structured unstructured
Level of resource
commitment
Minor resource
commitment
Moderate
resource
commitment
Major resource
commitment
Time horizon Short-term Medium-term Long-term

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Facets of Project Analysis
23
Market
Analysis
Technical
Analysis
Financial
Analysis
Economic
Analysis
Ecological
Analysis
• Potential
Market
• Market
Share
• Technical
viability
• Sensible
choices
• Risk
• Return
• Benefit,
costs,
shadow
prices
• Other
impacts
• Environme
ntal
damage
• Restoration
measures

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to a publicly accessible website, in whole or in part.
Strategy
The determination of the basic long-term goals and
objectives of an enterprise, and the adoption of courses of
action and the allocation of resources necessary for
carrying out these goals.
-Chandler A.D.
24

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to a publicly accessible website, in whole or in part.
Formulation of strategies
25
Environmental Analysis
Customers, competitors,
suppliers, regulations,
infrastructure, political and
social environment
Internal Analysis
Technical analysis, production
capacity, logistics capacity,
financial resources, skilled
resource
Opportunity and Threats
Identify opportunities
Strengths and Weaknesses
Determine Core capabilities
Find the fit between core
capabilities and external
opportunities
Firms Strategies

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Grand Strategy
26
Contraction
Stability
Growth
Concentration Diversification
Vertical
Integration
Liquidation Divestiture
Conglomerate
Concentric

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Strategy Principal Motivations Likely Outcomes
Profitability Growth Risk
Concentration Ability to serve a growing
market, familiarity with
technology and market, cost
leadership
High Moderate Moderate
Vertical
integration
Greater stability for existing
and proposed operations,
greater market power
High Moderate Moderate
Concentric
diversification
Improved utilization of
resources
High Moderate Moderate
Conglomerate
diversification
Limited scope in present
business
Moderate High Low
Stability Satisfaction with status quo High Low Low
Divestment Inadequate profit, poor
strategy
High Low Low

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Portfolio Strategy
1. BCG Matrix
Developed by Boston Consulting Group
2. GE Stoplight Matrix
Developed by General electric Company
3. McKinsey Matrix
28

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BCG Matrix
Market
Growth
Rate
Market Share
High Low
High Stars Question Mark
Low Cash Cows Dogs
29

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General Electric’s Stoplight Matrix
Industry
Attractiveness
Business Strength
Strong Average Weak
High
Invest Invest Hold
Medium
Invest Hold Divest
Low
Hold Divest Divest
30

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The McKinsey Matrix
Industry
Attractiveness
Competitive Position
Good Medium Poor
High
Winner Winner
Question
Mark
Medium
Winner
Average
Business
Loser
Low
Profit
Producer
Loser Loser
31