OPERATIONS

1. PROJECT LIFE CYCLE

2. PRODUCT LIFE CYCLE
• It refers to stages in project’s development
• Life cycles are important because they
demonstrate the logic that governs a project
• They also help in developing our plans that
help us to carry out the project

3. PROJECT LIFE CYCLE
• PLC
MAN
HOURS
CONCEPTUALIZATION PLANNING EXECUTION TERMINATION

4. PROJECT LIFE CYCLE
• Conceptualization. refers to development of initial
goals and technical specifications of a project. The
scope of work is determined , necessary resources
identified and stakeholders signed in
• Planning. All detailed specifications , schematics,
schedules and other plans are developed.
– Individual pieces of project , often called work
packages, are broken down, individual assignments
and process for completion delineated

5. PROJECT LIFE CYCLE
• Execution. The actual work is performed, the
system developed or the product created. In
this phase bulk of project team labor is
performed. Costs ramp up rapidly during this
phase.
• Termination. This occurs when the project is
transformed to customer.
– As specific sub activities are completed the project
shrinks in scope and costs decline rapidly

6. PROJECT LIFE CYCLE
• The stages in PLC are the way points at which
project teams can evaluate both in
performance and project’s overall status
• The life cycle model serves the two fold
function of project timing (schedule)and
project requirement (resources) allowing
team members to better focus on what and
when resources are needed

7. PROJECT LIFE CYCLE
• Some components of project may change over
a period of time over the course of the project
• Client Interest. The level of enthusiasm or
concern expressed by the project’s intended
customer ( could be internal or external)
• Project Stake. The amount of corporate
investment in the project. The longer the life ,
the greater the investment

8. PROJECT LIFE CYCLE
• Resources. The commitment of financial,
human and technical resources over the life
of the project
• Creativity. The degree of innovation required
by the project especially during development
phase.
• Uncertainty. The degree associated with the
project. Uncertainty is highest at the
beginning because many challenges have yet
to be identified, let alone addressed.

9. PROJECT LIFE CYCLES & THEIR EFFECTS
• PLC
INTENSITY
LEVEL
CLIENT INTEREST
PROJECT STAKE
RESOURCES
CREATIVITY
UNCERTAINTY
CONCEPTUALIZATION PLANNING EXECUTION TERMINATION

10. PROJECT LIFE CYCLES & THEIR EFFECTS
• The information supplied in previous figure is
useful for developing a sense of competing issues
and challenges that a project team is likely to
face over the life cycle
• Over time we see that certain characteristics
begin to decrease while some begin to increase
• Balancing the requirements of these elements
across the life cycle is just one of the many
demands place d upon a project team

11. DETERMINANTS OF PROJECT SUCCESS

12. DETERMINANTS OF PROJECT SUCCESS
• This aspect can be very confusing
• The definition of project success must take
into consideration the elements the elements
that define the very nature of project
– Time
– Budget
– Functionality
– Customer satisfaction

13. DETERMINANTS OF PROJECT SUCCESS
• Three criteria for project success
• Time. Projects are constrained by the time. They
cannot continue indefinitely. Therefore the first
determinant can be classified as ‘Time’. The
projects should come up within the allotted time
frame
• Cost. The projects have a limited budget. It is
always a challenge to ensure that projects are
completed within allotted cost to ensure
efficient use of resources. This is the second
determinant

14. DETERMINANTS OF PROJECT SUCCESS
• Performance. All projects are initially
developed to adhere to some technical
specification. The projects clients do expect
the performance of the end result as
expected. This aspect can be called as ‘quality
check’.

15. DETERMINANTS OF PROJECT SUCCESS
• A fourth criteria has been added
• Client Acceptance. This principle argues that
projects are developed with customers in
mind. If client acceptance is a key variable,
then we also must ask whether is acceptable
to the customer for whom it was intended

16. DETERMINANTS OF PROJECT SUCCESS
• We can think of criteria for project success in
terms of internal vs external conditions
• When PM was practiced primarily by
construction and other heavy industries, its
chief value was in maintaining internal
organizational control over money and time.
• The triple constraint made perfect sense

17. DETERMINANTS OF PROJECT SUCCESS
• More recently the traditional triple constraint has
come under increasing criticism as a measure of
project success.
• The final product could be a failure , but if it has
been delivered in time and on budget and satisfies
original specifications ( however flawed) the project
could itself be declared a success.
• Adding external criteria of client acceptance corrects
such shortcomings
– It refocuses org attention outside towards the
customer
– It recognizes that the final arbiter is marketplace

18. DETERMINANTS OF PROJECT SUCCESS
• Another approach is taking into consideration
the promise that delivered product can
generate future opportunities , whether
commercial or technical for the org .The
relevant dimensions are:-
• Proper Efficiency. Meeting budget and
scheduled expectations
• Impact on the customer. Meeting technical
specifications, addressing customer’s needs

19. DETERMINANTS OF PROJECT SUCCESS
• Business Success. Determining whether the
project achieved significant commercial success
• Future Potential. Determining whether project
opened new markets or new product lines.
• This approach challenges the conventional triple
constraint principle for assessing project success.
Corporations expect projects not only to run
efficiently but be developed to meet customer’s
needs, achieve commercial success and serve as
a conduit to new business opportunities.

20. DEVELOPING PROJECT MANAGEMENT
MATURITY

21. PM MATURITY MODELS
• PM maturity models are used by org to bench
mark the best practices of successful PM firms
• PM maturity models recognize that different
organizations are currently at different levels of
sophistication in their best practices for
managing projects
• Purpose of benchmarking. is to systematically
manage the process improvement of project
delivery by a single organization over a period of
time

22. PM MATURITY MODELS
• Because there are many diverse dimensions of
PM practice , for a new org that is just starting to
introduce PM to their operations , it is common
to ask the question, ’Where do we start”?
• This is which of the multiple PM processes should
we investigate, model and apply to our org.
• Maturity models provide the necessary
framework to first analyze and critically evaluate
the current practices as they pertain to managing
projects.

23. PM MATURITY MODELS
• Secondly compare these practices against
those of chief competitors or some general
industry standard
• Thirdly define a systematic route for
improving these practices

24. PM MATURITY MODELS
• Spider web Diagram for measuring project
maturity – Here a set of significant project
management practices have first been
identified for organizations within a specified
industry.
• The rings in the diagram represents a critical
evaluation of the manner in which the org
matches with the industry standards

25. SPIDER WEB DIAGRAM WITH EMBEDDED
ORGANIZATIONAL EVALUATION
PROJECT SCHEDULING
STRUCTURAL
SUPPORT FOR PM
PORTFOLIO
MANAGEMENT
COACHING AUDITING &
EVALUATING PROJECTS
CONTROL PRACTICES
PERSONNEL
DEVELOPMENT
FOR PROJECTS
NETWORKING
BETWEEN
PROJECTS
PROJECT STAKEHOLDER
MANAGEMENT
3
2
1
0

26. PROJECT STAKEHOLDERS

27. STAKEHOLDER MANAGEMENT
• Organizational research tells us that org and projects
teams cannot operate in ways that ignore the
external effects of their decisions
• One way to understand the relationship of project
managers and their projects to rest of the
organization is through employing stakeholders
analysis.
• Stakeholders Analysis. Is a tool for demonstrating
some of the seemingly irresolvable conflicts that
occur through the planned creation and introduction
of new projects

28. STAKEHOLDER MANAGEMENT
• Project stakeholders are defined as all
individuals or groups who have an active stake
in the project and can potentially impact
either positively or negatively its development
• Project Stakeholders Analysis, consists of
formulating strategies to identify and if
necessary manage for the positive results the
impact of stakeholders on the project

29. STAKEHOLDER MANAGEMENT
• Stakeholder analysis is helpful to the degree
that it compels firms to acknowledge the
potentially wide ranging effect that their
actions can have , both intended and
unintended, on various stakeholder groups.

30. STAKEHOLDER MANAGEMENT
• Internal Stakeholders
– Top Management
– Accountant
– Other functional Managers
– Project team member
• External Stakeholders
– Clients
– Competitors
– Suppliers
– Environmental, political, consumer and other
intervenor groups

31. STAKEHOLDER MANAGEMENT
• Clients
– Clients are concerned with receiving the project as
quickly as possible because longer the delay , the
money invested sits without generating any returns
– Many projects start well before the clients needs are
fully defined.
– Customers usually feel that that they have a right to
make suggestions , alterations in the project
features/schedules as finally the project is as good as it
is acceptable and useful
– Client term does not always refer to entire organization
and because of different conflicting reasons between
groups the stakeholders analysis of a customer
organization can be a complex undertaking

32. STAKEHOLDER MANAGEMENT
• Competitors.
– Are important because they are affected by
successful completion of project
– Likewise should a rival company bring a new
product to market , the project team’s parent
org could be forced to alter, delay or even
abandon the project
– In assessing competitor as a project
stakeholder ,project manager should try to
uncover any information which could bring out
certain lessons

33. STAKEHOLDER MANAGEMENT
• Suppliers.
– Project manager needs to ensure steps that would
ensure steady deliveries of externally purchased
items
– Also project manager needs to ensure that each
supplier receives the input information necessary
to implement their part of project in timely way.
– Secondly project manager must monitor that
deliveries take place as intended

34. STAKEHOLDER MANAGEMENT
• Intervenor group.
–Any environmental, political, social or
community group that can have a positive
or negative effect on the project’s
development & successful launch are
referred to as intervenor groups
–They have the capacity to intervene in the
project development and force their
concern to be included in the equation for
project implementation

35. STAKEHOLDER MANAGEMENT
• Top Management.
– In most org the top management hold a great
deal of control over managers and in position to
regulate their freedom of action
– Top management requires that the project be
timely, cost efficient and minimal disruptive
• Accounting.
– They work towards maintaining cost efficiency of
project team
–Hence are sometime perceived as enemies of the
projects

36. STAKEHOLDER MANAGEMENT
• Functional Managers.
– In many case the project members are on
loan from various departments.
– The functional members still expect a lot of
work from each member in performing
their functional responsibilities
– Project managers need to appreciate the
power of the organizational functional
managers as a stakeholders group

37. STAKEHOLDER MANAGEMENT
• Project Team Members
– The team members have a tremendous stake in
project’s outcome
– Although some may have a divided sense of
loyalty between the project and functional group,
in most case they are handpicked or may be
volunteers for work which can throw challenges
and oppurtunities for growth.
– Project managers must understand that
product’s success will depend upon the
commitment and productivity of each member

38. MANAGING STAKEHOLDERS

39. MANAGING STAKEHOLDERS
• Assess Your Own Capability. Does the Project
manager and the team members have the
political savvy and sufficiently strong
bargaining power to gain support from each
of the stakeholders group?
• Define the Problem. Be able to very clearly
have a foresight on the nature of problem to
bring in clarity.

40. MANAGING STAKEHOLDERS
• Six steps as suggested by Block
• Assess The Environment. It is very important
to recognize the environmental state before
embarking on a project
• Identify the goals of Principal Actors. Project
manager should attempt to understand and
paint an accurate portrait of stakeholder
concern.

41. MANAGING STAKEHOLDERS
• Develop Solutions.
– It means to creating action plan to address as
much as possible the needs of various
stakeholders in relation to other stakeholders
groups.
– Do our political homework. This stage is a result of
perpetual firefighting during which the project
manager is a virtual pendulum swinging from crisis
to crisis

42. MANAGING STAKEHOLDERS
• Test and Refine the Solutions.
– In testing and refining solutions the project
manager and team should realize that solution
implementation is an iterative process
– Project Team to make guesses on stakeholders
reaction and reshape strategies accordingly.
– Along the way the notions are refined

43. MANAGING STAKEHOLDERS
• The six steps form an important method of
acknowledging the role the stakeholders play in
successful project implementation
• They allow project managers to approach ‘political
stakeholders management ‘ much as they would any
form of problem solving, recognizing it as a
multivariate problem as various stakeholders interact
with the project and with each other
• Solution to political stakeholder management can be
richer more comprehensive and more accurate.

44. FORMS OF ORGANIZATIONAL
STRUCTURE

45. THREE ELEMENTS OF
ORGANIZATIONAL STRUCTURE
• Org structure designates formal reporting
relationships including the number of level in the
hierarchy and the span of control of managers
and supervisors
• Org structure identifies the grouping together of
individuals into departments and departments
into total organization
• Org structure includes the design of systems to
ensure effective communication, coordination
and integrating of effort across departments

46. COMMON FORM OF
ORGANIZATIONAL STRUCTURES
• Functional Organizations – companies are
structured by grouping people performing similar
activities into departments
• Project Organizations – Companies are structured
by grouping people into project teams on
temporary assignments
• Matrix Organizations – companies are structured
by creating a dual hierarchy in which functional
and projects have equal prominence

47. BOARD OF DIRECTORS
CHIEF EXECUTIVE
VP MARKETING VP PRODUCTION VP FINANCE VP RESEARCH
MARKET RESEARCH
SALES
AFTER MARKET
SUPPORT
ADVERTISING
LOGISTICS
OUTSOURCING
DISTRIBUTION
WAREHOUSING
MANUFACTURING
ACCOUNTING
SERVICES
CONTRACTING
INVESTMENTS
EMPLOYEE BENEFITS
NEW PRODUCTS
TESTING
RESEARCH LABS
QUALITY
FUNCTIONAL STRUCTURES

48. Strengths and Weaknesses of
Functional Structures
Strengths for PM
• Projects are developed
within the basic functional
structure of the org
requiring no disruption &
change to the firm’s design
• Enables the development of
in depth knowledge &
intellectual capital
• Allows for standard career
paths. PM members only
perform their duties as
needed while maintaining
maximum connection with
their functional group
Weaknesses for PM
• Functional siloing makes it
difficult to achieve cross
functional cooperation
• Lack of customer focus
• Projects generally take longer
to complete due to structural
problem , slower
communication, lack of direct
ownership of project and
competing priorities among the
functional departments
• Projects may be sub optimized
due to varying interest or
commitment across functional
boundaries

49. Matrix Oriented Organizational Structure

50. STRENGTHS AND WEAKNESSES OF
MATRIX STRUCTURE
Strengths for Project
Management
• Suited to dynamic
environment
• Emphasizes the dual
importance of project
management and functional
efficiency
• Promotes coordination
across functional units
• Maximizes scarce resources
between competing project
and functional
responsibilities
Weaknesses for Project
Management
• Dual hierarchies mean two
bosses
• Requires significant time to
be spent negotiating the
sharing of critical resources
between projects and
departments
• Can be frustrating for
workers caught between
competing project and
functional demand

51. Project Oriented Organizational Structure

52. Strengths and weakness of Project
Structure
Strengths for PM
• Assigns authority solely to the
Project manager
• Leads to improved
communication across the org
and among functional groups
• Promotes effective and speedy
decision making
• Promote the creation of
cadres of project management
experts
• Encourages rapid response to
market opportunities
Weaknesses for Project
Management
• Setting up and maintaining
teams can be expensive
• Potential for project team
members to develop loyalty to
the project rather than to the
overall organization
• Difficult to maintain a pooled
supply of intellectual capital
• Concern among project team
members about their future
once the project ends

53. THANK YOU