PROJECT MANAGEMENT
Course Teacher
Md. Sahedur Rahman
Assistant Professor
Dept. of Management Studies
Comilla University
Book References:
Text Book:
1. “Project Management”- Rajeev M. Gupta
2. “Modern Project Management”- R.C. Mishra
CHAPTER-1
INTRODUCTION
What is project?
• Projects are a group of activities that have to be performed with
limited resources to yield specific objectives, in a specific time, and
in a specific locality. Thus, a project is a temporary endeavor
employed to create a unique product, service or results. Projects
are an investment on which resources are used to create assets
that will produce benefits over an expanded period of time.
• It is a unique process, consisting of a set of coordinated and
controlled activities with start and finish dates, undertaken to
achieve an objective conforming to specific requirements, including
the constraints of time, cost and resources.
Contd….
• Project Management Institute of USA has good
definition for it. “A project, according to the
institute, is a one-shot, time-limited, goal
directed, major undertaking, requiring the
commitment of varied skills and resources.”
• According to Harison, A project can be defined as
a non-routine, non-repetive, one-off undertaking,
normally with discrete time, financial and
technical performance goals.
Contd…
• Examples of a project:The development and introduction of a new services.
The development of a management information
system.
The introduction of an improvement to an existing
process.
Setting up a new care initiative.
The production of a new customer newsletter,
catalogue or Web site.
Program Vs. Project
Program
Project
Program Managers create high-level plans used to provide Project Managers perform detailed planning to manage
guidance to projects. Detailed plans are created from this delivery of the products of the Project
guidance by the Project Managers
.
Program success is measured in terms of business benefit, Project success is measured in terms of budget, time, and
ROI, or new capabilities
scope delivered
Focus is on leadership, as Program Managers manage Focus is on management of the people (specialists and
managers. Program Managers need to facilitate and technicians) involved to deliver
manage political aspects, relationships, and conflict
resolution.
Program Managers manage managers
Project Managers manage technical people
Programs have a wide scope, focusing on benefits, and Projects have a narrow scope, focusing on deliverables
may have to change scope dramatically during their
execution to meet the changing needs of the organization
Program managers monitor and control projects
Project Managers monitor and control tasks
Programs are typically executed over a much longer Projects are typically of a shorter duration than programs,
timescale than projects, often several years
often just a few weeks
Why Projects are initiated?
Projects are initiated in the following scenarios:
1.
2.
3.
4.
5.
6.
7.
8.
When starting a new business.
In order to develop/ modify a product or service.
For relocating and/or closing a facility.
For regulatory mandate.
For some community issues.
In order to re-engineer the process so as to reduce complaints,
reduce cycle time, and eliminate errors.
For implementing a new system or process.
To introduce new equipment, tools or techniques
Features of Project
1. Specific purpose (s): Every project is purpose oriented. It is never possible to form a
project without specific purpose (s). When multi-purposes can be satisfied through
project, it is called multi-purpose project.
2. Specific direction: Projects act as an organization, having same structure in which
top, middle & lower level management are involve to direct corresponding level of
management that means top management give direction to middle level management
and middle level to lower level management to achieve project goal.
3. Definite life cycle: A project has a life cycle reflected by idea generation planning,
and execution stages.
– Idea generation stage: In this stage, idea generator must generate idea about project alike why
projects need, what types of projects need etc.
– Planning stage: In this stage, idea generator must make a plan that is deciding in advance what is to
be done.
– Execution stage: In this stage, how will executive the project is deciding.
Contd…
4. Complex interdependency: Project is a temporary organization. Every
project works as a helping hand of organization and every project have its
parent organization. A project runs through organizational environment.
Organizational environment can be two types.
– Internal environment: Internal environment consists of those who are
participating in idea generator stage.
– External environment: External environment consists of those who are
influenced the project.
Every disciplinary people suffer ego problem and comes from different
discipline. So project director has to realize their differences to execute
the project smoothly.
5. Uniqueness: Projects must have the feature of uniqueness. Two
projects are not exactly similar even if the plans are exactly or merely
duplicated. Sometime projects may look like similar but in really they are
different. So project must not be same.
Contd…
6. Conflicting environment: As projects act as an organization, so conflict may
arise from different level of management. But here conflict means different
strategies not creating violence. Because variety of people are gathered with
different interest in a project. So management should be know about project
clearly and then should reform it.
7. Neutral Judgment: Project manager should judge every employee’s task
impartially. That’s why every one can enjoy inspiration to work.
8. Non-repetitive: Projects must not be repeated again and again. One project
must be ended, when its goal will be achieved.
9. Risk and uncertainty: Every project has risk and uncertainty associated with it.
The degree of risk and uncertainty depend on now a project has passed through
its various life-cycle phases. An ill-defined project will have extremely high degree
of risk and uncertainty.
Classification of Project
 On the basis of national income and socio-economic activities: on the
basis of national income and socio-economic activities project can be
classify on different categories• Industrial project: establishment of new industry, introducing new wings
of established industry, innovation of new product are categorized in
industrial project.
• Agricultural project: Invention of High Yielding verities of seeds, research
for enhancing yielding capacities of seeds, introduction of technology
based production system in agriculture are examples of agricultural
project.
• Education project: program for enhancing quality and rate of education,
compulsory primary education, and adult education are termed as
educational project.
• Engineering project: Innovation of new technology, program for
developing infrastructure facilities are examples of engineering project.
Contd…
 On the basis of production-materials: On the basis of
production materials project can be classified into two
categories• Capital intensive project: Capital intensive project
requires huge investment as well as modern
technology. This is especial feature of project of
developed countries.
• Labor intensive project: Labor intensive project
employs large number of people. This is a
distinguishing feature of project of developing country
like Bangladesh.
Contd…
 On the basis of partnership: Project partnerships
represent collaborative partnerships between different
countries. On the basis of partnership of project,
project can be classified into two groups• Single owned project: single owned project is
characterized by internal source of finance and often
use of indigenous technology.
• Partnership
project:
Partnership
project
is
characterized by internal and external sources of
finance and use of technology granted form foreign
countries or international organizations.
Contd…
Government identifies and selects different types of project for the socio-economic
development of a country. Above mentioned different projects than classified as per
different determinates. These are discussed in below Determinat-01 Project Outcomes: On the basis of project’s inflows, project can be
classified into three categories• X Type Project: Productive and revenue earning project is called X type project. This
types of project is self-financing in nature, produce and distribute commodities for
earn revenue.Different types of industrial project are termed as X type project.
•
Y Type Project: Productive but not revenue generating is called Y type project. This
type of project generates facilities for other project so that they can earn revenue.
For example irrigation project.
•
Z Type Project: Project who renders service is called Z type project. Outcomes of this
project generally non measurable. Education, training, hospital, road, bridge, culvert,
weather forecasting examples of Z type project.
Contd…
 Determinant-02 Preference on allocation of resources: On the
basis of national urgency and importance, project can be classified
into two categories.
• Core project: Project which is selected for priority basis on the basis
of national importance and socio-economic development is called
core project. Core project includes– Approved project, revised and non approved project and project
nominated by project evaluation committee.
– Projects whose have available internal and foreign inflow of fund.
– Partially completed project.
– X type and Z type project.
• Non-core project: Other than core project.
Contd…
 Determinant-03 Stage of project: On the basis of project formulation and
implementation, project can be classified into four categories• Experimental project: A trial or special observation, examine is made to
confirm or disprove something doubtful; esp., one under conditions
determined by the experimenter; called experimental project. This type of
project is conducted in narrow environment.
• Pilot Project: The next step of experimental project is pilot project. Pilot is
wider than experimental project so it requires more allocation of fund.
Acceptability, applicability and utility of experimental results are main
considerations of pilot project.
• Demonstration Project: Demonstration Projects designed to prove the
viability of new technologies offering potential economic advantage but
which cannot be commercialized directly. Demonstrated project is
initiated after successful completion of pilot project.
Project cycle of Warran C. Baum
.
1. Project identification
2. Project preparation
6. Project evaluation
3. Project appraisal
5. Project
implementation and
supervision
4. Project negotiation
Figure: Project Cycle
Contd…
1. Project identification: According to Baum project identification is the
first stage of project cycle. Through project identification essential Matters
are identified and conceptions built. Profit oriented investment possibility
is created through project identification and that possibility is achieved by
existing development activities of a country.
2. Project preparation: Project preparation means preparation of project
design in all volume o financial, finance, social, institutional. One of the
stags of project preparation is to conduct feasibility study.
3. Project Appraisal: It is a process of decision making for selecting a
project by which it is possible to ensure maximum utilization of minimum
resources. The purposes of this stage are the determination of projects
commercial gain, economic effectiveness and social acceptability.
Contd…
4. Project Negotiation: In respect of aid oriented project through
negotiation aid provider and aid receiver reach in consent to take proper
steps for the success of the project. Subsequently such consent turns into
legal obligation that is disclosed in debt deed.
5. Project implementation and supervision: Project implementation
stage includes construction to project structure. Steady political
commitment easy design, proper project preparation and meaningful
management etc. are required for successful implementation of project.
6. Project evaluation: Project evaluation is called the last stage and in
many cases it is called post project complementation observation project
evaluation is done to analyze and judge the outcome that has achieved in
compassion to the project’s goal. Its effectiveness is not only applicable to
the completed project but also equally effective for the running project
What is Project Management?
• Project Management is the discipline of organizing and managing
resources in such a way that these resources deliver all the work required
to complete a project within defined scope, time, and cost constraints. It is
important to note here that a project is a temporary and one-time
endeavor undertaken to create a unique product or service that brings
about beneficial change or added value.
• Management in any project is concerned with productivity. This refers to
efficiency and effectiveness. These can be explained as follows:
• Efficiency: In order to be efficient, management is concerned with
minimizing resource costs. Efficiency is “doing things right”.
• Effectiveness: In order to be effective, management is concerned with
getting activities completed. Effectiveness is “doing right things”.
Contd…
• According to Chase and Aquilano “Project management can be
defined as the planning, directing and controlling of resources
(People, equipment, material) to meet the technical, cost and time
constraints of the project.
• According to B.B. Goel “Project management is an organized
venture or managing projects that involves scientific application of
modern tools and techniques in Planning, financing, implementing,
Monitoring, controlling and Coordinating unique activities of tasks
to produce desirable outputs in consonance with predetermined
objectives within the constraints of time, cost, quantity and
quality.”
Objectives of project management
1. Ensure projects are delivered with budget
2. Ensure projects are delivered with schedule
3. Deliver quality solutions: reduced errors,
improved effectiveness, appropriate risk
management and internal control
4. Continuous
process
improvement
via
collaboration
5. Implement
project
communication
and
oversight
Elements of project management
• 1. Operations: Operation means activities those are performed to
conduct the project. So it includes all the activities in a project.
• 2. Resources: Resources mean men, machines, materials,
technologies and time those are used to complete the project. So, the
elements which are used to accomplish the project are called
resources.
• 3. Condition: The surroundings and the barriers of the project in
which the project is performed are known as condition. So, condition
affects the effectiveness of the project activities.
Functions of project management
Project Manager
.
Planning
Terminating
the project
Coordinating
Maintaining
Linkage
Staffing and
Training
Conflict
Management
Implementing
Change
Management
Controlling &
Reporting
Project
Financial
Management
Contd…
1.
2.
3.
4.
5.
6.
7.
To execute of proper planning of project function based on project
objectives.
To make budget and work list by using modern techniques based
on planning of project
Selection of employees for project and give training, and
determine the relation and leadership role.
Supervision and control of activities of project as per
predetermined time, cost and standard.
Maintain link with parent organization and its different division.
Maintain relation among competitive organization government
and non-government organization and other related parties.
Make evaluation report after project is executed.
Importance of project Management
• Rapidly changing technologies: Technologies are
changing very fast, so all manufacturing as well as
service organizations have to cope up with
technological changes, which provide a big scope
for project management.
• High entropy of the system: Changes are very
fast. So, energy level are high. To adapt to the fast
changing world, no organization can stick to old
things or systems. Any modification or
moderation leads to the need of projects.
Contd…
Squeezed life cycle of products: Product life cycle
is squeezed to a great extent with innovations
taking place at a very rapid rate. Projects are
needed for the up gradation of products.
Globalization impact: All producers and service
providers in the present world are exposed
globally. They need to modify their system of
operations to match the global practices, thus
creating opportunity for projects
Contd…
Large organizations: They face problems of
management of huge workforce and work
division. So they divide their work in projects
and create a team to accomplish the
objectives in the form of projects.
Customer focus: Increased customer focus has
been a market trend in recent time, a few
years back, cost reduction was a major
formula of success for an organization.
Who is a Project Manager?
• A project manager is a professional in the field of
project management. They have the responsibility of
the planning and execution of any project. A project
manager's central duty is to ensure the success of a
project by minimizing risk throughout the lifetime of
the project. This is done through a variety of methods,
both formal and informal. A project manager usually
has to ask penetrating questions, detect unstated
assumptions, and resolve interpersonal conflicts, as
well as use more systematic management skills.
Activities of Project Managers
1. Traditional management: This includes decision making, planning, and
controlling
2. Communication: This refers to exchanging routine information and
processing paperwork.
3. Human Resource Management (HRM): It involves motivating,
disciplining, managing conflict, staffing, and training.
4. Networking: It includes socializing, and interacting with outsiders.
An average manager spends:
• 32% of time in traditional management activities
• 29% in communicating
• 20% in HRM activities
• 19% in networking
Skills of project manager
• Technical Skill is the knowledge of and proficiency in activities
involving methods, processes, and procedures.
• Human Skill is the ability to work with people; cooperative effort;
it is teamwork; feel secure and free to express their opinions.
• Conceptual Skill is the ability to see “big picture” in order to
recognize significant elements in a situation, and to understand
relationships among elements.
• Design Skill is the ability to solve problems in ways that will
benefit enterprise.
Critical factors to a project success
1.
2.
3.
4.
5.
6.
7.
8.
9.
Project mission
Top management support
Project plan
Client consultation and acceptance
Personnel
Technical tasks
Monitoring and feedback
Communication and
troubleshooting
THANK YOU