Project management
Sebastian Nokes said (2003) international standards organization Project as:-“A set of coordinated activities, with a specific start and finish, pursuing a specific goal with
constraints on time, cost and resources” Baguley Phil (1999) said ‘ A project is a
sequence of connected events that are conducted over a defined and limited period of
time and are targeted towards generating a unique but well defined outcome.’
Koontz Harold (1990) said “Management is the process of designing and maintaining an
environment in which individuals, working together in groups, efficiently accomplish
selected aims”
This definition can be divided in five steps
 As managers, people carry out the managerial functions of planning, organizing,
staffing, leading and controlling.
 Management applies to any kind of organization
 It applies to managers at all organizational levels.
 The aim of all managers is the same to create surplus.
 Managing is concerned with productivity this implies effectiveness and
efficiency.
What is project management?
Barbara Allan (2004) Defined ‘Project management involves using a range of
management skills and techniques to successfully carry out a project. The types of
activities involved in project management include:

Thinking ahead

Carrying out research

Planning what happens where and when

Managing the people and resources

Monitoring the project

Changing the plan

Communicating with people

Evaluating the project
Dennis Lock Gower (2000) said “Project management has evolved in order to plan,
coordinate and control the complex and diverse activities of modern industrial and
commercial projects. The purpose of project management is to foresee or predict as many
of the dangers and problems as possible and to plan, organize and control activities so
that the project is completed as successfully as possible in spite of all the risks. This
process starts before any resources are committed, and must continue until all work is
finished. The aim is for the final result to satisfy the project sponsor or purchaser, within
the promised timescale and without using more money and other resources than those
originally set aside or budgeted. A software house once advertised its wares with the
claim ‘if you can move a mouse you can manage a project.’ Most people realize ,
however , that there is far more to project management than the application of a few
computer programs , no matter how sophisticated those programs might be. Successful
project management involves a whole framework of logical and progressive planning and
decisions, perceptiveness, the liberal application of common sense, proper organization,
effective commercial and financial management, painstaking attention to documentation
and a clear grasp of proven and long –established principles of management and
leadership. (Pp3’4)
Dennis Lock Gower (2000) Classifies projects under four types of projects.
1. Civil engineering, construction, petrochemical, mining and quarrying.
2. Manufacturing projects
3. Management projects
4. Research projects
The project management can be divided in following stages.

Project planning

Project scheduling,

Project resourcing

Project organizing

Project implementing

Project controlling
Project Planning
Harold koontz and Heinz Weihrich (1990) said‘Planning involves selecting missions and
objectives and the actions to achieve them , it requires decision making, that is choosing
from among alternative future courses of action. Plans thus provide a rational approach to
pre-selected objectives. Planning also strongly implies managerial innovation’Planning
bridges the gap from where we are to where we want to go . It makes it possible for
things to occur which would not otherwise happen. Although we can seldom predict the
exact future and although factors beyond our control may interfere with the best –laid
plans, unless we plan, we are leaving events to chance. Planning is an intellectually
demanding process, it requires that we consciously determine courses of action and base
our decisions on purpose, knowledge, and considered estimates.Planning and control are
inseparable-Any attempt to control without plans is meaningless, sinces there is no way
for people to tell whether they are going where they want to go ( the result of the task of
control ) unless they first know where they want to go (part of the task of planning) .
Plans thus furnish the standards of control.
Baguley Phil (1999) said ‘ The project and the plan are long-term bed mates. The project
is a consciously chosen event and the plan is integral to its creation and completion . But
the plan that we create must be resilient and adaptable if it is to be capable of
withstanding the buffets and storms of our increasingly changeable workplaces. To cope
it must be able to change-without losing sight of its endpoint-the project’s outcome.
The act of planning is, in its essence, about the creation of a plan and that plan can take
many forms. It can be a diagram, a table of figures, a programme of dates or a sequence
of actions. But , whatever its form, it is a statement of our intentions regarding the future
relationships of either a set of objects, as in an architectural plan of a building, or the
times , places, etc. of our intended actions, as in our holiday plans.
Planning Techniques
Network (PERT) diagrams
Work breakdown structure
GANTT chart
IRR (internal rate of return)
Pay back period
NPV (Net present value)
Network (PERT) diagrams.
Sebastian Nokes and Ian Major (2003) said ‘A Network diagram is a graphical
representation of project structure. Project Evaluation and Review Technique (PERT) is a
planning method that uses network diagrams and project managers commonly use the
terms PERT chart and network diagram interchangeably. A network diagram contains the
same task dependency information as a Gantt chart makes it more useful for
communicating individual task timing and so project plans for general discussion are
usually presented in Gantt chart format. Nonetheless, network diagrams are useful for
project planners because it is much easier to see project structure (dependencies and
groupings of tasks) on a network diagram. Most project planning software can represent
the information in both ways and you should use whichever representation suits the task
in hand.’
Barbara Allan (2004) Explained PERT through this diagram.
Task2
Task3
Start
Task 1
Task 4
End
koontz Harold and Heinz Weihrich (1990) defined ‘main advantages of PERT as
following.
There are five important advantages of PERT .First , it forces managers to plan, because
it is impossible to make a time-event analysis without planning and seeing how the pieces
fit togethers.Second, it forces planning all the way down the line,because each
subordinate manager must plan event for which he or she is responsible. Third, it
concentrates attention on critical elements that may need correction. Fourth, it makes
possible a kind of forward-looking control, a delay will affect succeeding events and
possibly the whole project unless the manager can make up the time by shortening the
time allocated to some action in the future.Fifth , the network system with its subsystems
enables managers to aim reports and pressure for action at the right spot and level in the
organization structure at the right time.
Work Breakdown Structure
Sebastian Nokes (2003) said ‘ A work breakdown structure is the easiest place to start
with project planning . It is an enhanced list of all the activities of all the activities of the
project. The enhancements explain how the project is broken down into tasks, groups of
associated tasks and sub-projects , and they also give some information about effort or
duration.
House build project
Acquire project
Find plot for sale
Study location
Negotiation
These activities all
form part of the
‘Acquire plot’ group
Legal / closing
Preparations
Appoint architect
Draw up plans
Planning application
Appoint contractors
Build
Most project planning software packages can produce work breakdown structure , group
tasks together into high-level blocks , and let the user enter effort, duration and
resourcing information. Task identifier numbers are usually added automatically. A work
breakdown structure is a convenient way to record and group the blocks of work that will
make up the project but it does not contain information about dependencies between
tasks, or task sequencing. There is no way to record the fact that task X cannot start until
task sequencing . There is not way to record the fact that task X cannot start until task Y (
which is part of an entirely different sub-project) has finished . It tells us how much total
effort will be involved but it does not tell us how long the project will take since it does
not tell us which tasks must follow from each other.
GANTT Charts
According to Barbara Allan (2004) ‘This shows the tasks that take place within a
particular time period, for example a week or month. The technical name for the charts
comes from their developer Henry Gantt (1861-1919). They are sometimes also known as
bar charts. If you are working on a small project or don’t have access to project manager
software then you can produce the bar or GANTT charts using a whiteboard and pens, a
wall calendar and sticky paper, or a spreadsheet. If you do have access to project manager
software then it will readily produce a GANTT chart, alternatively you could produce one
using a spreadsheet package.’
Many project managers use GANTT chart or bar charts because they are easy to read and
can be read by anyone. They clearly show the relationship between the project tasks and
the timescale of the project. They will also show recurrent tasks and milestones. It is very
easy to look at a GANTT chart and identify times when there may be a pressure on the
project, for example as a result of information workers’ holidays or peaks in customer
demands. However, their disadvantages include the facts that they don’t show the
relationships between different tasks and they don’t show the critical path.
GANTT chart
January
Book conference facilities
Book speakers
Produce publicity materials
Send out mail shot
February
March
April
There are number techniques used on planning stage. Sebastian Nokes and Ian Major
(2003) In the planning stage there should be contingency plan , it is prudent to have plans
and resources ready in case a certain risk does occur, so that there is no time lost in
dealing with it . Of course, if the risk never arises, the money is not spent and the
resources can be used elsewhere. Where higher risk in business project mostly higher
return are expected. Only need to manage the risk factors. Risk may be inflation, time
cost etc.
Goal programming models.
The goal programming model also appears in the category of numeric models but it is
more general in the sense that it is based on multiple criteria. Instead of single decision
criteria, more than one goal can be stated in this model. This model is a variation of the
linear programming model, in which we first establish a set of goals to be achieved, such
as "maximize profits", or "maximum equipment utilization" etc. Then we gather a set of
constraints under which the goals must be achieved. Finally, linear programming
techniques such as the simplex method are applied to determine if the goals can be
achieved under given constraints.
Simulation models
Simulation models are used in situations of high uncertainty. Sometimes it is
impossible to predict the outcome of a project because little information is available. For
example, a research and development (R&D) project aimed at developing a new product
may have an immense amount of uncertainty about how long will it take to develop the
new product, and what will be the cost. In such situations, the usual numeric methods
cannot be applied.
Developing the project Schedule:Barbara Allan (2004) defined ‘A key task for any project manager and team is to develop
the project schedule. This outlines who does what, where and when. It is a crucial
document and, once approved, provides a detailed plan for everyone working on the
project. The project schedule may be written collaboratively by the project manager and
team and will then need to be approved by the management group and steering group ( if
there is one) . Sometimes this approval process involves a series of re-iterations before all
the stakeholders are able to accept the schedule. Project schedule as a collaborative piece
of work between the manager and team workers as this means that it is more likely to
encompass a wide range of ideas and experiences, and it will be owned by everyone
involved in its production and implementation. Howard Barnett (1996) said ‘Schedules
are needed to show when each operation should start and finish. It is also necessary to
know which operations go to make a part of finished product, which parts go to make
parts of a highest level, and when the final operations to assemble the parts at the highest
level should start and finish, so producing the end product. Naylor John (1996) explained
‘Scheduling deals with the timing of operations. To produce schedules , an organisation
may start from capacity and aggregate plans, if it has them, and produce detailed
instructions on the sequence and times for each operation it intends to carry out.’
Schedulers not only plan jobs as they pass through the operations system. They must also
assign personnel , equipment , materials and other resources to each stage. The purpose is
to optimise operational performance according to a combination of the following
objectives:

Time the order spends within the system

Waiting time for the customer

Efficiency of use of resources

Inventory levels.
Example
Business
Jobbing printer
Some items for scheduling
Order sequencing, machine allocation, employee assignment,
Paper and ink supply, print setting.
Parcel service
Collection and delivery routine, consolidation, vehicle allocation,
Crew assignment, sorting times
Film studio
Set construction and access, crew assignment, actor and extra
Recruitment, wardrobe, props etc, support on location.
Brewery
Product sequencing, fermentation times, raw material flows, bottling,
Barrelling or despatch, employee assignment.
Resources
Sebastian Nokes and Major Ian (2003) defined ‘An other favourite word of project
planners is resource. Resources are the people, infrasture and equipment that are made
available to the project by the firm. Resources are anything that could be used elsewhere
in the firm and that should be booked to make sure that the project can use it when
needed. The definition includes things like meeting rooms or project rooms, but by far the
most important resources on any project are people. All projects rely on their people
resources critically and it is important to book people for the project in good time
whereas it is often safe to leave planning for things like meeting room access until the last
minute. For this reason many project managers who talk about resources means people.
Lewis P.James and Wong Louis (2005) explained in this way’The performance of a
manager is measured by how well that manager can organize a large number of people
and how effectively he or she can get the highest performance from each of the
individuals and blend them into a coordinated performance.’ According to Howard
Barnett (1996) all organisations have only five different kinds of resources to work with
.These are: People , equipment, material , money and time. Particularly in manufacturing
, but also in the areas of commerce and public service, materials play a key role in the
overall conversion process. The supply of suitable raw materials , in terms of both quality
and price. Money is important and a proportion of any company’s total assets must be in
cash, the company needs to acquire other resources so as to be able to perform its prime
objective. Resource allocation is the heart of every project. According to Dennis Lock
Gower (2000) , Resources can be categorized in several ways and it is interesting to start
by identifying three main classes ,1 Exhaustible resources,2 Replenish able resources 3
Reusable resources. Lewis P.James and Wong Louis (2005) the purpose of monitoring
progress in a project is to ensure that it is completed on time, on budget, and at the correct
scope and performance levels. This is another way of saying you are trying to exercise
control. However, the word control often denotes the idea of controlling people, and this
is not what you are trying to do. Resource utilization is of particular concern to industrial
firms because of the high cost of making resources available. A resource allocation
system that smoothes out the peaks and valleys of resource usage is ideal, but it is
extremely difficult to attain while maintaining scheduled performance because all the
projects in a multiproject organization are competing for the same scarce resources. In
particular, it is expensive to change the size of the human source pool on which the firm
draws. While it is relatively easy to measure the costs of excess resource usage required
by less than optimal scheduling in an industrial firm, the cost of uncoordinated
multiproject scheduling can be high in service-producing firms, too.
Controlling
Koontz Harold (1990) explained ‘controlling is the measurement and correction of
performance in order to make sure that project objectives and the plans devised to attain
them are accomplished. Planning and controlling are closely related. In fact some writers
on management think that these functions cannot be separated .Planning and controlling
may be viewed as the blades of a pair of scissors, the scissors cannot work unless there
are two blades.
Types of controlled
Feedback control Explained by ACCA as ‘Feedback is both the process of reporting back
control information to management and the control information itself. In a business
organization, it is information produced from within the organisation (management
control reports) with the purpose of helping management and other employees with
control decisions. Managerial control is usually perceived as a simple feedback system
similar to the common household thermostat. However, no matter how quickly
information is available on what is occurring (even real-time information , which is
information on what is happening as it happens),there are unavoidable delays in
analyzing deviations, developing plans for taking corrective action, and implementing
these programs. In order to overcome these time lags in control, it is suggested that
managers utilize a feedfoward control approach and not rely on simple feedback alone.
Feedforward control is control based on comparing original targets or actual results with
a forecast of future results.Feedforward control requires designing a model of a process
or system and monitoring inputs with a view to detecting future deviations of results from
standards and plans , thereby giving managers time to take corrective action.
Lewis P.James and Wong Louis (2005) explained ‘if you have no plan,you have no
control’Perhaps it goes without saying that purpose of project management is to ensure
that a project is completed on time, within budget and scope , and that deliverable
performs at required level. Brown Mark (2002) we have to control time , cost and quality
. Control is important as planning a project. There are different methods and techniques
of controlling. Variances analysis is a important technique for controlling. At planning
stage standard set and then performance should be measure again these standards.
Controlling gives us information where we are now ,and then we take corrective action
why we not there.
Reference:
Baguley Phil (1999) Project Management, first edition, Page 10, 47
Barbara Allan (2004) Project Management first edition page 9, 48, 49 published by Facet
Publishing.
Howard Barnett (1996) Operations management second edition, page 18, Published by
Macmillan Press Ltd
Koontz Harold and Heinz Weihrich (1990) Essentials of Management fifth edition page
392,46,47,5 Published by McGraw-Hill , Inc .
Naylor John (1996) Operations Management, first edition, page 315 published by
financial time management.
ACCA (2002) Financial management and control ,second edition, page175, published by
BPP.
Sebastian Nokes and Major Ian (2003) ,Project management,first edition , page 67
published by Aldersgate partners LLP 2003.