Introduction to project management

1. Concept of Project
Management

2. Importance of Project
Management
 All organizations, be they small or
large, at one time or other, are
involved in implementing new
undertakings.
 These undertakings may be diverse,
such as, the development of a new
product or service; the establishment
of a new production line in a
manufacturing enterprise; a public
relations promotion campaign; or a
major building programme.
 All these require project management
as an essential component.

3. Importance of Project
Management
 Whilst the 1980's were about quality and the
1990's were all about globalization, the
2000's are about service speed .
 To keep ahead of their competitors,
organizations are continually faced with the
development of complex products, services
and processes with very short time-to-market
windows combined with the need for cross-
functional expertise.
 In this scenario, project management
becomes a very important and powerful tool
in the hands of organizations that understand
its use and have the competencies to apply it.

4. Typologies of projects

5. Elements of Project
 A ‘project’ is a one-time work that has
a definite end.
 Elements of project management are:
Formulation (identification + appraisal)
Implementation
Monitoring and
Evaluation

6. Project Formulation
Formulation consists of:
 Identification of projects
◦ Defining objectives
◦ Generation of ideas
◦ Initial screening
 Appraisal
◦ Technical
◦ Financial
◦ Marketing
◦ Socio-economic

7. Technical Appraisal
Technical Feasibility
 Technology availability
• Indigenous
• Imported
- Structure
- Cost
- Restrictions (governmental)
 Technology compatibility
 Raw materials and competent people
 Geography and climate

8. Financial Appraisal
 Checking financial feasibility
◦ Capital costs
◦ Operating costs (materials, labour, power,
transport, etc.)
◦ Revenues
◦ Capital budgeting
 Detailed assessment of costs is
required.

9. Social Cost Benefit Analysis
 Larger interests of the society considered
while selecting projects.
 Social Cost Benefit Analysis involves
thorough assessment of :
• Benefits and Costs to society
• Environment Impact Assessment (EIA)
Includes quantifiable as well as qualitative aspects.
 A very important analysis for both public
sector and private sector projects.

10. Project Implementation
 Once a project is selected, its
implementation is planned in detail.
 Detailed planning helps in monitoring
the project, while in progress, and
controlling it.
 Network analysis (PERT/CPM) is of
immense help in implementation
planning, monitoring and control.

11. Project Evaluation
This is post-project critical evaluation:
• Have conceived objectives been
achieved?
• What have been the problems?
• What can be done for similar projects in
the future?
- Defining objectives set
- Implementation
- Monitoring and control
Project evaluation is about ‘learning’.

12. Project Life Cycle

13. PROJECT MANAGEMENT
 It is the process of planning and
directing a project from its inception to
its completion in a given time and at a
given cost to generate a given result.

14. The Importance of Project
Management
 Factors leading to the increased use of
project management:
◦ Compression of the product life cycle
◦ Knowledge explosion
◦ Corporate downsizing
◦ Increased customer focus
◦ Small projects represent big
problems

15. The Technical
and Socio cultural
Dimensions
of the Project
Management Process

16. WHY PROJECT MANAGEMENT?
 Short product life cycles
 Flatter organizations
 Time-based competition
 More frequent change/need for flexibility
 Imposed deadlines/short/late starts
 Limited/shared resources
 Multiple responsibilities
 Involve different people/depts./priorities
 Regular conflict about work/approaches/budgets

17. PHASES OF PROJECT
MANAGEMENT
Divided in a six broad phases.
 IDENTIFICATION
 SELECTION
 FORMULATION
 APPRAISAL
 IMPLEMENTATION
 REVIEW

18. PHASE OF PROJECT
MANAGEMENT
 1. IDENTIFICATION- finding out of a
project after a careful scanning of the
environment of investment opportunity & its
likely return.
 2. SELECTION- rational choice of a project
in the light of objective & inherent
constraints.
 3. FORMULATION- translation of idea into
a concrete project with scrutiny of its
important preliminary aspects.

19. PHASES OF PROJECT
MANAGEMENT
 4. APPRAISAL- searching scrutiny, analysis &evaluation
of market, technical, financial, & economic variable.
Assessing the profitability, return on investment&
breakdown points.
 5. IMPLEMENTATION- expeditious completion with in
the allocated resources.
 6. REVIEW- judicious operation of a project with
objective like, maximization of net present value
maximization of return and increase in the rate of return
at low risk.