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PROJECT MANAGEMENT

     TECHNIQUE OF
 MANAGEMENT OF PROJECTS



        SAKEC/MMS/PM/JAN 10   1
PROJECTS
• PROJECTS- LEADS TO A CHANGE.
• INPUT-PROCESS-OUTPUT.
• PROJECTS MAKE USE OF RESOURCES (men, material, money ,
  equipment , time.)
• DEFINITION : PM INSTITUTE DEFINES PROJECT AS A TEMPORARY
  ENDEAVOR TO CREATE A UNIQUE PRODUCT/SERVICE.
• PROJECTS ARE GROUP OF ACIVITIES.
• PROJECTS ARE NON REPATATIVE IN NATURE.
• PROJECT IS INITIATED TO ACHIEVE A MISSION.
• USUALLY WE COME ACROSS
  ROAD PROJECTS, REFINARY PROJECTS,POWER PROJECTS, BUILDING
  PROJECTS, TELECOMMUNICATION ETC.



                        SAKEC/MMS/PM/JAN 10               2
Projects
• Temporary in nature.
• Having definite start date and end dates.
• Is completed when goals and objectives are
  accomplished to the satisfaction of its
  stakeholders.
• Sometimes it happens that projects end, when
  goals and objectives cannot be accomplished,
  or the product, service or result of the project
  is no longer needed.
                    SAKEC/MMS/PM/JAN 10          3
Projects
• Project exist to bring about a product, service,
  or a result didn’t exist before.
• Project is unique in nature, though appears
  repetitive.
• Products , models goes on changing.
• Designs goes on changing, location and its
  nature changes, people associated changes,
  resources goes on changing.

                    SAKEC/MMS/PM/JAN 10              4
CHARACTERISTIC FEATURES OF
            PROJECTS
• 1.OBJETIVE :PROJECTS are INITIATED TO
  ACHIEVE A FIXED SET OF OBJECTIVES /GOALS.
• 2.LIFE SPAN: CAN NOT CONTINUE ENDLESSLY.
  DEFINTE STARTING AND ENDING POINTS. SAY
  2 YEARS, 36 MONTHS.
• 3.SINGLE ENTITY: NORMALLY ENTRUSTED TO
  A SINGLE RESPONSIBILITY CENTRE WITH NO.
  OF PARTICIPANTS.

                 SAKEC/MMS/PM/JAN 10          5
CHARACTERISTIC FEATURES OF
            PROJECTS
• 4.UNIQUENESS: ONE OFF TYPE, NO TWO PROJECTS
  ARE ALIKE/SIMILIAR. LOCATION, INFRASTRUCTURE,
  AGENCIES …. ALL VARIES.
• 5. TEAM WORK : TEAMS WITH MEMBERS
  BELONGING TO DIFFERENT DISCIPLINE,
  ORGANISATIONS, EVEN DIFFERENT COUNTRIES.
• 6.CHANGE: MANY CHANGES THROUGHOUT ITS LIFE.
  SOME MAY BE SMALL OTHERS MAY CHANGE ENTIRE
  CHARACTER.

                   SAKEC/MMS/PM/JAN 10        6
CHARACTERISTIC FEATURES OF
            PROJECTS
• 7. LIFE CYCLE : PROJECT HAS A LC, GROWTH,
  MATURITY AND DECAY.
• 8.SUCCESSIVE PRINCIPLE: WHAT IS GOING TO
  HAPPEN IS NOT CLEAR AT ANY STAGE. CLEAR
  PICTURE OF PROJECT IS KNOWN ONLY AT
  CONSTRUCTION STAGE.
• 9.MADE TO ORDER: IS MADE TO CUSTOMER
  ORDER.

                 SAKEC/MMS/PM/JAN 10          7
CHARACTERISTIC FEATURES OF
          PROJECTS
• 10. HIGH LEVEL OF SUB CONTRACTING.
• 11.UNITY IN DIVERSITY : PROJECT IS A SET OF
  THOUSANDS OF VARIETIES, TECHNOLOGY,
  EQUIPMENTS,MATERIALS, MACHINARY AND
  PEOPLE.
• 12.RISK & UNCERTAINITY: AT EVERY STAGE
  THERE IS R& UNCERTAINITY.


                  SAKEC/MMS/PM/JAN 10           8
Operations
• Are ongoing and repetitive.
• Involves work without an ending date
• Often repeat the process and produce the
  same results.
• Function is to keep the organization
  functioning.
• Repair work, maintenance of site ,updating
  the content are all operations.
                   SAKEC/MMS/PM/JAN 10         9
Stakeholders
• Projects are said to be successful when it
  achieves its objectives and meets the
  expectations of the stakeholders.
• Are those who have interest in your project.
• They are actively involved with the work of
  the project have something to gain from it.



                   SAKEC/MMS/PM/JAN 10           10
Stakeholders
•   Project sponsors
•   Project managers
•   Board of directors
•   Customers
•   Vendors
•   Suppliers
•   Engineers

                     SAKEC/MMS/PM/JAN 10   11
PROJECT CLASSIFICATIONS
• NATIONAL AND INTERNATIONAL

• INDUSTRIAL AND NON INDUSTRIAL

• MEGA, MAJOR, MEDIUM, MINI

• NORMAL, CRASH, DISASTER

                SAKEC/MMS/PM/JAN 10   12
PROJECT LIFE CYCLE PHASES.
• CONCEPTION PHASE

• DEFINITION PHASE

• PLANNING & ORGANISING PHASE

• IMPLEMENTATION PHASE

• CLEAN UP PHASE

                   SAKEC/MMS/PM/JAN 10   13
1. Concept Phase
• Phase in which idea germinates
• Idea comes when somebody trying to
  overcome some problems.
• Can be own ideas.
• Ideas are put in writing.
• Ideas should be well conceived.



                 SAKEC/MMS/PM/JAN 10   14
2.Definition Phase
• Prepare a document (project report) describing the project to
  give ideas to customers, financial institutions etc. The areas to
  be covered are
• 1.RAW materials
• 2.PLANT size/capacity & Machinery
• 3.LOCATION & SITE.
• 4.TECHNOLGY involved.
• 5.PROJECT LAYOUT.
• 6. Civil, Mechanical, Electrical works.
• 7.MANPOWER & Utilities
• 8.IMPLEMENTATION schedule
                           SAKEC/MMS/PM/JAN 10                   15
3. Planning & Organizing Phase
• Prepare a PROJECT EXECUTION PHASE
                  It includes
1.Identification of project manager
2.Organizing manpower and other resources.
3.Preparation of budgets and schedules.
4.Preparation of systems and procedures.
5.Site preparations
       The project to take off smoothly.
                  SAKEC/MMS/PM/JAN 10        16
4. Implementation Phase
• Is a period of hectic activity.
• People can see the project coming up.
• Preparations of specifications, issue of
  drawings, appointment of sub contractors, etc
• Actual execution of Civil, Mech, Electrical work
  starts.
• Maximum coordination and control is
  required.
                    SAKEC/MMS/PM/JAN 10          17
5. Project Clean Up Phase
• Hardware built is handed over to different
  agency. (product/process)
• For Project personnel this is a clean up task.
• Drawings, documents, files, operations and
  maintenance manuals are handed over to the
  customer.



                   SAKEC/MMS/PM/JAN 10             18
Project Report (PR)
• Entire project planning is summarized in a
  written document called PR.
• PR serve as a base for feasibility studies and
  actual execution of a project.
• PR contains details of technical, financial,
  marketing and managerial aspects of project.
• Financial institutions appoint expert staff for
  the scrutiny of the projects reports known as
  appraisal of the project.
                    SAKEC/MMS/PM/JAN 10             19
Contents of Project Report
• Name ,address other details of sponsoring agency.
• Brief history, summary of proposed project.
• Salient features of the project such as land, bldgs,
  plant, machinery, raw materials, labor.
• Financial aspects of project.
• Cost of production and profitability.
• Information on marketing, present and future
  demand.
• Importance of project to national economy.
                       SAKEC/MMS/PM/JAN 10               20
Project feasibility study.
• Is to find out the practical utility and possible
  success of proposed project well in advance.
• Advantages of FS
• 1. Result anticipated.
• 2.Changes possible.
• 3.Execution of unsound project avoided.
• 4. Possible failure and wastages avoided.
• 5. Suggests future prospects.
                     SAKEC/MMS/PM/JAN 10              21
Types of Feasibility Study
• 1.Technical Feasibility

• 2. Economical Feasibility

• 3.Commercial Feasibility

• 4.Environmental Feasibility
• 5.Political Feasibility
                    SAKEC/MMS/PM/JAN 10   22
MANAGEMENT
• MANAGE- MEN- TACTFULLY.
• IS THE DEVELOPMENT OF THE PEOPLE.
• IS GETTING THINGS DONE THROUGH PEOPLE.
• IS DECISION MAKING.
• IS PLANNING-EXECUTION-CONTROL.
• ACHIEVING/ATTAINING THE
  GOAL/OBJECTIVE.
• WELL PLANNED IS HALF DONE.
                SAKEC/MMS/PM/JAN 10    23
PROJECT MANAGEMENT
•   IS SUCCESS OF THE PROJECT.
•   PROJECT WITHIN THE BUDGET (COST).
•   PROJECT WITHIN ALLOCATED TIME.(T)
•   PROJECT TO PERFORM TO SATISFACTION.(Q)
•   PROJECT WITH C-T-Q FRAME WORK.
•   PROJECT MANAGEMENT IS TO MANAGE THE
    PROJECT WITH TIME, COST,QUALITY FACTORS.

                   SAKEC/MMS/PM/JAN 10     24
PROJECT MANAGEMENT
• Brings together a set of tools and techniques
  to describe, organize, and monitor the work of
  project activities.
• According to PMBOK, pm involves applying
  knowledge, skills, tools and techniques during
  the course of the project.



                   SAKEC/MMS/PM/JAN 10         25
5 STEPS IN PM
• 1. GROUPNG WORK INTO PACKAGES.
• 2.ENTRUSTING WHOLE WORK INTO PROJECT
  MANAGER.
• 3.SUPPORTING PROJECT, VENDORS, SUB
  CONTRACTORS.
• 4. BUILDING COMMITMENTS THROUGH
  NEGOTIATIONS, SCHEDULE BUDGETS ETC.
• 5. ENSURE ADHERANCE TO GOALS THROUGH
  CONTINUOUS MONITORING.
               SAKEC/MMS/PM/JAN 10       26
PROJECT MANAGER
• A PERSON FOR THE SUCCESS OF A PROJECT.
• A PERSON WITH PROFESSIONAL KNOWLEDGE.
• DEGREE WITH PFOFESSIONAL MGMNT
  /MGMNT.
• PERSON WITH DEDICATION TO COMPLETE
  WITH C-T-Q PARAMETERS.
• PERSON WHO CAN COORDINATE BETWEEN
  OWNER AND CONTRACOR.
                SAKEC/MMS/PM/JAN 10    27
Skills of PROJECT MANAGER
•   Communication skills
•   Organizational and planning skills
•   Budgeting skills
•   Conflict management skills
•   Negotiation and influencing skills
•   Leadership skills
•   Team building and motivational skills

                     SAKEC/MMS/PM/JAN 10    28
PHASES IN PROJECT
            MANAGEMENT
•   PROJECT PLANNING
•   PROJECT SCHEDULING
•   PROJECT ORGANIZING
•   PROJCT IMPLEMENTING
•   PROJCT MONITORING
•   PROJECT CONTROLLING


                 SAKEC/MMS/PM/JAN 10   29

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Project management (1)

  • 1. PROJECT MANAGEMENT TECHNIQUE OF MANAGEMENT OF PROJECTS SAKEC/MMS/PM/JAN 10 1
  • 2. PROJECTS • PROJECTS- LEADS TO A CHANGE. • INPUT-PROCESS-OUTPUT. • PROJECTS MAKE USE OF RESOURCES (men, material, money , equipment , time.) • DEFINITION : PM INSTITUTE DEFINES PROJECT AS A TEMPORARY ENDEAVOR TO CREATE A UNIQUE PRODUCT/SERVICE. • PROJECTS ARE GROUP OF ACIVITIES. • PROJECTS ARE NON REPATATIVE IN NATURE. • PROJECT IS INITIATED TO ACHIEVE A MISSION. • USUALLY WE COME ACROSS ROAD PROJECTS, REFINARY PROJECTS,POWER PROJECTS, BUILDING PROJECTS, TELECOMMUNICATION ETC. SAKEC/MMS/PM/JAN 10 2
  • 3. Projects • Temporary in nature. • Having definite start date and end dates. • Is completed when goals and objectives are accomplished to the satisfaction of its stakeholders. • Sometimes it happens that projects end, when goals and objectives cannot be accomplished, or the product, service or result of the project is no longer needed. SAKEC/MMS/PM/JAN 10 3
  • 4. Projects • Project exist to bring about a product, service, or a result didn’t exist before. • Project is unique in nature, though appears repetitive. • Products , models goes on changing. • Designs goes on changing, location and its nature changes, people associated changes, resources goes on changing. SAKEC/MMS/PM/JAN 10 4
  • 5. CHARACTERISTIC FEATURES OF PROJECTS • 1.OBJETIVE :PROJECTS are INITIATED TO ACHIEVE A FIXED SET OF OBJECTIVES /GOALS. • 2.LIFE SPAN: CAN NOT CONTINUE ENDLESSLY. DEFINTE STARTING AND ENDING POINTS. SAY 2 YEARS, 36 MONTHS. • 3.SINGLE ENTITY: NORMALLY ENTRUSTED TO A SINGLE RESPONSIBILITY CENTRE WITH NO. OF PARTICIPANTS. SAKEC/MMS/PM/JAN 10 5
  • 6. CHARACTERISTIC FEATURES OF PROJECTS • 4.UNIQUENESS: ONE OFF TYPE, NO TWO PROJECTS ARE ALIKE/SIMILIAR. LOCATION, INFRASTRUCTURE, AGENCIES …. ALL VARIES. • 5. TEAM WORK : TEAMS WITH MEMBERS BELONGING TO DIFFERENT DISCIPLINE, ORGANISATIONS, EVEN DIFFERENT COUNTRIES. • 6.CHANGE: MANY CHANGES THROUGHOUT ITS LIFE. SOME MAY BE SMALL OTHERS MAY CHANGE ENTIRE CHARACTER. SAKEC/MMS/PM/JAN 10 6
  • 7. CHARACTERISTIC FEATURES OF PROJECTS • 7. LIFE CYCLE : PROJECT HAS A LC, GROWTH, MATURITY AND DECAY. • 8.SUCCESSIVE PRINCIPLE: WHAT IS GOING TO HAPPEN IS NOT CLEAR AT ANY STAGE. CLEAR PICTURE OF PROJECT IS KNOWN ONLY AT CONSTRUCTION STAGE. • 9.MADE TO ORDER: IS MADE TO CUSTOMER ORDER. SAKEC/MMS/PM/JAN 10 7
  • 8. CHARACTERISTIC FEATURES OF PROJECTS • 10. HIGH LEVEL OF SUB CONTRACTING. • 11.UNITY IN DIVERSITY : PROJECT IS A SET OF THOUSANDS OF VARIETIES, TECHNOLOGY, EQUIPMENTS,MATERIALS, MACHINARY AND PEOPLE. • 12.RISK & UNCERTAINITY: AT EVERY STAGE THERE IS R& UNCERTAINITY. SAKEC/MMS/PM/JAN 10 8
  • 9. Operations • Are ongoing and repetitive. • Involves work without an ending date • Often repeat the process and produce the same results. • Function is to keep the organization functioning. • Repair work, maintenance of site ,updating the content are all operations. SAKEC/MMS/PM/JAN 10 9
  • 10. Stakeholders • Projects are said to be successful when it achieves its objectives and meets the expectations of the stakeholders. • Are those who have interest in your project. • They are actively involved with the work of the project have something to gain from it. SAKEC/MMS/PM/JAN 10 10
  • 11. Stakeholders • Project sponsors • Project managers • Board of directors • Customers • Vendors • Suppliers • Engineers SAKEC/MMS/PM/JAN 10 11
  • 12. PROJECT CLASSIFICATIONS • NATIONAL AND INTERNATIONAL • INDUSTRIAL AND NON INDUSTRIAL • MEGA, MAJOR, MEDIUM, MINI • NORMAL, CRASH, DISASTER SAKEC/MMS/PM/JAN 10 12
  • 13. PROJECT LIFE CYCLE PHASES. • CONCEPTION PHASE • DEFINITION PHASE • PLANNING & ORGANISING PHASE • IMPLEMENTATION PHASE • CLEAN UP PHASE SAKEC/MMS/PM/JAN 10 13
  • 14. 1. Concept Phase • Phase in which idea germinates • Idea comes when somebody trying to overcome some problems. • Can be own ideas. • Ideas are put in writing. • Ideas should be well conceived. SAKEC/MMS/PM/JAN 10 14
  • 15. 2.Definition Phase • Prepare a document (project report) describing the project to give ideas to customers, financial institutions etc. The areas to be covered are • 1.RAW materials • 2.PLANT size/capacity & Machinery • 3.LOCATION & SITE. • 4.TECHNOLGY involved. • 5.PROJECT LAYOUT. • 6. Civil, Mechanical, Electrical works. • 7.MANPOWER & Utilities • 8.IMPLEMENTATION schedule SAKEC/MMS/PM/JAN 10 15
  • 16. 3. Planning & Organizing Phase • Prepare a PROJECT EXECUTION PHASE It includes 1.Identification of project manager 2.Organizing manpower and other resources. 3.Preparation of budgets and schedules. 4.Preparation of systems and procedures. 5.Site preparations The project to take off smoothly. SAKEC/MMS/PM/JAN 10 16
  • 17. 4. Implementation Phase • Is a period of hectic activity. • People can see the project coming up. • Preparations of specifications, issue of drawings, appointment of sub contractors, etc • Actual execution of Civil, Mech, Electrical work starts. • Maximum coordination and control is required. SAKEC/MMS/PM/JAN 10 17
  • 18. 5. Project Clean Up Phase • Hardware built is handed over to different agency. (product/process) • For Project personnel this is a clean up task. • Drawings, documents, files, operations and maintenance manuals are handed over to the customer. SAKEC/MMS/PM/JAN 10 18
  • 19. Project Report (PR) • Entire project planning is summarized in a written document called PR. • PR serve as a base for feasibility studies and actual execution of a project. • PR contains details of technical, financial, marketing and managerial aspects of project. • Financial institutions appoint expert staff for the scrutiny of the projects reports known as appraisal of the project. SAKEC/MMS/PM/JAN 10 19
  • 20. Contents of Project Report • Name ,address other details of sponsoring agency. • Brief history, summary of proposed project. • Salient features of the project such as land, bldgs, plant, machinery, raw materials, labor. • Financial aspects of project. • Cost of production and profitability. • Information on marketing, present and future demand. • Importance of project to national economy. SAKEC/MMS/PM/JAN 10 20
  • 21. Project feasibility study. • Is to find out the practical utility and possible success of proposed project well in advance. • Advantages of FS • 1. Result anticipated. • 2.Changes possible. • 3.Execution of unsound project avoided. • 4. Possible failure and wastages avoided. • 5. Suggests future prospects. SAKEC/MMS/PM/JAN 10 21
  • 22. Types of Feasibility Study • 1.Technical Feasibility • 2. Economical Feasibility • 3.Commercial Feasibility • 4.Environmental Feasibility • 5.Political Feasibility SAKEC/MMS/PM/JAN 10 22
  • 23. MANAGEMENT • MANAGE- MEN- TACTFULLY. • IS THE DEVELOPMENT OF THE PEOPLE. • IS GETTING THINGS DONE THROUGH PEOPLE. • IS DECISION MAKING. • IS PLANNING-EXECUTION-CONTROL. • ACHIEVING/ATTAINING THE GOAL/OBJECTIVE. • WELL PLANNED IS HALF DONE. SAKEC/MMS/PM/JAN 10 23
  • 24. PROJECT MANAGEMENT • IS SUCCESS OF THE PROJECT. • PROJECT WITHIN THE BUDGET (COST). • PROJECT WITHIN ALLOCATED TIME.(T) • PROJECT TO PERFORM TO SATISFACTION.(Q) • PROJECT WITH C-T-Q FRAME WORK. • PROJECT MANAGEMENT IS TO MANAGE THE PROJECT WITH TIME, COST,QUALITY FACTORS. SAKEC/MMS/PM/JAN 10 24
  • 25. PROJECT MANAGEMENT • Brings together a set of tools and techniques to describe, organize, and monitor the work of project activities. • According to PMBOK, pm involves applying knowledge, skills, tools and techniques during the course of the project. SAKEC/MMS/PM/JAN 10 25
  • 26. 5 STEPS IN PM • 1. GROUPNG WORK INTO PACKAGES. • 2.ENTRUSTING WHOLE WORK INTO PROJECT MANAGER. • 3.SUPPORTING PROJECT, VENDORS, SUB CONTRACTORS. • 4. BUILDING COMMITMENTS THROUGH NEGOTIATIONS, SCHEDULE BUDGETS ETC. • 5. ENSURE ADHERANCE TO GOALS THROUGH CONTINUOUS MONITORING. SAKEC/MMS/PM/JAN 10 26
  • 27. PROJECT MANAGER • A PERSON FOR THE SUCCESS OF A PROJECT. • A PERSON WITH PROFESSIONAL KNOWLEDGE. • DEGREE WITH PFOFESSIONAL MGMNT /MGMNT. • PERSON WITH DEDICATION TO COMPLETE WITH C-T-Q PARAMETERS. • PERSON WHO CAN COORDINATE BETWEEN OWNER AND CONTRACOR. SAKEC/MMS/PM/JAN 10 27
  • 28. Skills of PROJECT MANAGER • Communication skills • Organizational and planning skills • Budgeting skills • Conflict management skills • Negotiation and influencing skills • Leadership skills • Team building and motivational skills SAKEC/MMS/PM/JAN 10 28
  • 29. PHASES IN PROJECT MANAGEMENT • PROJECT PLANNING • PROJECT SCHEDULING • PROJECT ORGANIZING • PROJCT IMPLEMENTING • PROJCT MONITORING • PROJECT CONTROLLING SAKEC/MMS/PM/JAN 10 29