PROJECT MANAGEMENT SKILLS - 20PM01T 2nd Semester Diploma Engineering

1.1 Introduction:
Project management is the process of leading the work of a team to achieve goals and meet
success criteria at a specified time. The primary challenge of project management is to achieve all of
the project goals within the given limitations.

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1.2 Meaning of Project:

A project is a series of tasks that need to be completed to reach a specific outcome.
A project can also be defined as a set of inputs and outputs required to achieve a particular
goal. Projects can range from simple to complex and can be managed by one person or a hundred.
Example: A new electrical vehicle design, a metro project, construction of a bridge or
railways, design of a new super computer, design of new flyover etc.

The Project Management Triple constraint

Time : Each project has a fixed period of time; it has a start and end date
Scope : Each project has unique scope, no project are similar and differs in output and work
Cost : Cost of each project should be carefully determined, the completion of project depend
on availability of funds.

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What is Project?
 Project is a temporary endeavour (undertaking or goal)
 Temporary – Has definite start and definite end
 Unique – one of a kind
 At the beginning of a project:
 Cost and staffing levels are low
 Risk is high
 The level of uncertainty is the highest, hence probability of completing the project
successfully is very low
 The Stakeholders ( its investors, employees, customers, and suppliers) influence will
be high
 Organisations performing projects usually divide each project into several project phases
 The purpose of a project is to attain its objectives and close the project.
 It closes when its specific objectives have been met

Factors that initiate a project (strategic considerations):

1. Market need: Competition in market
2. Business need: To reduce cost
3. Technological advancement: automation
4. Customer request: on demand need some changes
5. Legal requirements: new policies that lead to product design change
6. Social needs: Building a hospital, buildings or government projects
7. Ecological considerations: Electric car projects etc.

1.3 Definition and No change mode:

 A project is a one-shot, time limited, goal directed, major undertaking, requiring the
commitment of varied skills and resources.
 Project is a combination of human and non-human resources pooled together on a temporary
organization to achieve a specific purpose.
 The purpose and the fact of activities which can achieve that purpose distinguish one project
from another.
 A project is a temporary initiative that is agreed, planned and executed to achieve a specific goal
 Project are complex initiatives

1.4 Features of a Project:

1. A project has a fixed set of objectives
2. It has a specific life span
3. Project has a dedicated team of work force
4. Project has a life cycle reflected by growth, maturity and decline
5. Every project is unique by itself. No two projects are exactly similar
6. Change is a common factor in any project throughout its life
7. Project is based on successive principle and hence it is difficult to learn fully the end results
at any stage
8. A project works for a specific set of goals only
9. A project has complex set of diversified activities
10. High level of sub-contraction of work can be done in a project
11. Well qualified professionals are required to execute efficiently the complex mega project
12. Every project has risk and uncertainty associated with it
13. Project needs a proper survey and cost analysis

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1.5 Types of Projects

The location, type technology, size, scope and speed are normally the factors which
determine the effort needed in executing a project. Though the characteristics of all projects are the
same, they cannot be treated alike. Types of project are important for management. Classification of
project helps in graphically expressing and highlighting the essential features of the project.

The projects can be classified as:

1. Normal Projects
 Adequate time is allowed for implementation.
 All the phases in a project are allowed to take their normal time, as measured
previously
 Minimum requirement of capital.
 No sacrifice in terms of quality.

2. Crash Projects
 Requires additional costs to gain time.
 Maximum overlapping of phases is encouraged.
 Simultaneous work by subcontracting is done here

3. Disaster Projects
 These are projects are undertaken due to unexpected situation like: nature’s calamities
or floods etc. These provide rehabilitation for affected people.
 Anything needed to gain time is allowed in these projects.
 Round the clock work is done at the construction site.
 Capital cost will go up very high.
 Project time will get drastically reduced as it is of upmost importance.

Project can also be classified as:

1.6 Benefits of Project Management

 Minimum need for continuous reporting
 Maximum work atmosphere
 Time limits for scheduling can be identified
 Identification of a methodology for trade-off analysis
 Measurement of actual work done against plans, which ensures continuous review
 Early identification of problems, so that corrective action can be taken, which results in
hassle free finishing
 Improved estimating capability for future planning with latest technology
 Knowing when objectives cannot be met or will be exceeded
 Time over-run and cost-over run will minimise
 Improve productivity and quality of work
 Increase customer satisfaction
 Set the scope, schedule and budget accurately from the start
 Improve your chances of achieving the desired result
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1.7 Obstacles in Project Management

To enjoy the various benefits of project management given above following obstacles should be
overcome carefully:
 Project complexities
 Execution of customer’s special requirement might result time delay and co-ordination with
many agencies.
 Organisation rearrangement is a typical task
 Project risks, coupled with statutory changes are nightmare for the project manager.
 Changes in technology needs highly qualified team
 Forward planning and pricing

1.8 Project Management – A Profession

 Project management has been evolved as a distinct field ever since the Second World War.
 It has got elevation in the recent times.
 Certified project management professionals are recruited to monitor and execute world level
project.
 Innovation is the hallmark of every project, hence it should exhibit energetic and dynamism.
 This requires professional approach in conceiving, implementing and controlling projects.
 Though the functional management and project management are related, the degree of
professional approach is highly essential for the efficient management of the project.
 The project management is mainly driven by intellectual operation and skilled and
mechanical operations.
 Project management is covered by the matrix form of organisation, structure where all roles
are defined according to a combination rather than functional specialisation.
 Only managers with dedication and dynamism can withstand the overwhelming dizziness in
these incessant operations.
 Many organisations provide varied activities out of office hours to emerge happy stress free
project managers

Hence, the project management requires sound expertise and exposure, which may not be
possessed by the project promoters. So they have to resort for the assistance from project consultants
and project managers.

1.9 Project Manager and His Role

 Project Manager is either a specialist or a person having technical background
 Project Manager is a centre around which the entire team performs its activities.
 Project Manager has the overall control of the project and he his responsible for its
completing and performance.
 Therefore, he is thoroughly involved in planning the work and monitoring, directing and
leading the team and make sure the goal is reached in time-cost and quality.
 The role of a project manager is quite different and demands an all-round performance.
 A project manager is always found learning the new things from external world around him.
 Only managers with sufficient spirit and dynamism can withstand the pressure of operations.

Some of the desired characteristics of Project manager are as follows:

 Flexible and adaptable to certain circumstances
 Preference for significant initiative and to evolve as a best leader
 Aggressiveness, confidence, persuasiveness, verbal fluency; ultra-specialist in
communication
 Ambition, activity, forcefulness
 Effectiveness as integrator of project personnel
 Broad scope of personal interests; must have a diverse interest.
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 Composed with enthusiasm, in agitation, spontaneity

 Able or willing to devote most of his time to planning and controlling,
 Able to identify problems ahead
 Willing to make decisions that are acceptable to the team
 Able to maintain a proper balance in the use of time

The ideal project manager would probably have doctorates in engineering, business and
psychology, with a handful years of experience on similar natured projects or as project officer
occupying different positions, and should have physical fitness to undertake such challenges.
Good project managers in industry today is a driving force who will lead the team towards
goal and also accelerate the work with all the understanding and plan to avoid any road blockers.

1.10 Project Consultants

 A project consultant provides expert project management advice to external businesses.
 A company may hire a project management consultant if it lacks project management
expertise or needs project management advice from an external fair party.
 The basic ingredient of successful project management is a happy integration of three factor,
appropriate estimate, competent contractor and effective project management.
 The other important ingredient of successful project management is an effective management
team.
 Consultants provide guidance as well as direction to the projects, the consultant is the part of
the project management team
 Consultant has paid member on contractual terms and conditions.
 When a project is taken up for execution, the first task would be whether to go for an outside
consultant or the in-house expertise would be sufficient for the project.

Need of Consultants
Need on Consultants arises:
a. When a project with new technology is undertaken.
b. When the in-house consultant is incapable of meeting the requirement of the project.
c. When there is no in-house facility available in the organisation
d. When the project is executed on the basis of imported technology and knowhow.
e. To avail the advantages of expertise available with the outside consultants.

Consultants may be of:

(a) In-house consultants
(b) Outside consultants
i. Indigenous
ii. Foreign consultants

As regards ‘in-house consultant’, many organisations has a separate department, this

department looks after the work of detailed engineering, drawings and preparation of technical
specifications, etc.
An office order shall be issued assigning the jobs along with scope of work, time schedule
and job responsibilities to be carried out.

When the jobs cannot be done by the in-house consultants, the appointment of outside
consultants would become unavoidable.

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While assigning jobs to the outside consultants the following steps should be carried out
effectively:
 Approval from the authority to get the specialist’s service
 Decide about indigenous or foreign consultant, depending on the scope of the project
 Preparation of list of consultants
 Scope of services of consultants
 Preparation of tender documents
 Inviting offers from leading consultants
 Evaluation of offers
 Award of contract to the consultant

While selecting outside consultants the various factors to be considered are

 Job requirements
 Facilities available in their organisations
 Experience
 Performance
 Their organisation structure
 Fees
 The terms and conditions
 Pre and post commissioning services etc.

Job of Consultants
The functions of a project management consultant have been identified as
1) Assisting the agency in appropriate site investigation and sourcing of materials.
2) Assisting the agency in selecting the appropriate contractor
3) Checking the quality of work, supervision control, testing monitoring and progress reporting,
checking measurements and of bills.

The project management consultant has to give periodic reports to the client on the progress,
trend and completion date, likely slippage in time, adequacy of resources with the contractor and
quality awareness of the contractor, and recommend measures for better control and management,
including additional input to correct slippages in future.

If it is necessary, they can also recommend termination of a contractor, after examining the
legal implications. In India, engaging project consultant for preparation of detailed project reports
and site gauging project management consultants for selection of contractors and supervision of work
is somewhat new. The project management consultant concept makes available for project
management the latest developments in technical engineering, management and information fields.

Main jobs of the consultants are:

i. Preparation of feasibility report
ii. Techno-economic report
iii. Preparation of detailed project report
iv. Detailed engineering and consultancy services
v. Detailed commercial capability
vi. Project monitoring and control
vii. Supervision of erection and commissioning of report
viii. Provide pre and post commissioning services

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With the passage of time, many firms in public sector as well as in private sector have come up in
the consultancy services. A few well known consultancy firms are:
 TATA Consultancy Services Ltd.
 Birla Technical Services
 Dastur & Co. Ltd.
 Metallurgical & Engineering Consultants (India) Ltd.
 Kirloskar Consultancy Ltd
 Power Consultancy Services India Pvt. Ltd.
 Small Industries Services Institute
 Technical Consultancy Organisation
 Science and Technology Entrepreneurship Park etc.

Objectives of Project Management

 Project management aims to plan, co-ordinate and control the complex and diverse activities
of the modern industrial and commercial projects.
 The purpose of project management is to predict as many uncertainties and problems as
possible and to plan, organise and control activities so that the project is completed
successfully in spite of all the risks.

Setting objectives:
 The objectives in project management must be specific
 The goals must be very clear.
 Such specific objectives will help in achieving the desired outcome of the project.

Performance and quality:

 Performance represents the volumes of the project.
 The end result of a project must fit the purpose for which it was started.
 Quality is the responsibility of the quality control department.
 Total quality management has to be followed, in which the quality is the responsibility of all
staff starting from top management to the staff at operational level.

Budget:
 The project must be completed without exceeding the budgeted expenditure.
 Financial sources are limited for any project.
 Funds may run out before completion of project, if expenditures are not planned properly.
 Financial expenditures must not cross the limit as the project contactor could face enormous
financial loss.
 Hence, proper attention is to be paid to the financial budgets and financial management.

Time of completion:
 Actual progress of project has to match the planned progress.
 Each project will have a start date and an end date.
 All the significant stages of the project must take place on or before the specified dates and
completion on or before their respective latest completion times so that the entire project is
completed on or before the planned finish date.
 The timescale objective is highly important because late completion of a project is not very
likely to please the project sponsors (board of directors).
 Delay in one process will lead to further delay in rest of the process and time over run in the
completion.

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Categories of Projects
Projects in general are classified on several bases as give the following illustrative list.

Classification of Project
Major classification of the projects is given below:

1. On the Basis of Expansion

a) Project expanding the capacity.
b) Project expanding the supply of knowledge.

2. On the basis of Magnitude of the resources to be invested.

a) Giant projects affecting total economy
b) Big projects affecting any one sector of the economy
c) Medium size projects
d) Small size projects (depending on size, investment & impact)

3. On the basis of Sector:

a) Industrial project
b) Agricultural project
c) Educational project
d) Health project
e) Social project

4. On the basis of Objective:

a) Social objective project
b) Economic objective project

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5. On the basis of productivity:

a) Defectively productive project
b) Interactively productive project

6. On the basis of nature of benefits:

a) Quantifiable project (measurable)
b) Non-quantifiable project (non-measurable)

7. On the basis of government priorities:

a) Project without specific priorities
b) Project with specific priorities

8. On the basis of dependency:

a) Independent project
b) Dependent project

9. On the basis of ownership:

a) Public sector project
b) Private sector project
c) Joint sector project

10. On the basis of location:

a) Project with determined location
b) Project where location is open

11. On the basis of social time value of the project:

a) Project with present impact
b) Project with future impact

12. On the basis of National policy:

a) Project determined by inward looking policy
b) Project determined by outward looking policy

13. On the basis of risk involved in the project:

a) High risks project
b) Normal risk project
c) Low risk project

14. On the basis of economic life of the project:

a) Long term project
b) Medium term project
c) Short term project

15. On the basis of technology involved in the project:

a) High sophisticated technology project
b) Advanced technology project
c) Foreign technology project
d) Indigenous technology project

16. On the basis of resources required by the projects:

a) Project with domestic resources
b) Project with foreign resources

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17. On the basis of employment opportunities available in the project:

a) Capital intensive project
b) Labour intensive project

18. On the basis of management of project:

a) High degree of decision making attitude
b) Normal degree of decision making attitude
c) Low degree of decision making attitude

19. On the basis of sources of finance:

a) Project with domestic financing
b) Project with foreign financing
c) Project with mixed financing
d) Project with financial financing

20. On the basis of legal entity:

a) Project with their own legal entity
b) Project without their own legal entity

21. On the basis of role played by the project:

a) Pilot project
b) Demonstration project

22. On the basis of speed required for execution of the project:

a) Normal project
b) Crash project
c) Disaster project

1.11 What is Operation?

 Operation is an on-going work efforts
 The objective of an on-going operation is to sustain the business.
 It is repetitive.
 Once objective is reached adopt a new set of objectives and continue the work.

1.12 Difference between Project and Operation

 In any organization, only two aspects of work exist—on-going operations and projects.
 Projects are defined as unique, temporary actions with a specific beginning and end.
 Operations constitute an organization's on-going, repetitive activities, such as accounting or
production.

What's a Project?
Projects are "a temporary goal undertaken to create a unique product, service, or result."

Projects are:
 temporary - they have a definitive beginning and end
 unique - they are a new undertaking, unexplored ground

Projects are characterised by:

 a new product, service or process that hasn't existed before to create new value
 one objective to be achieved and once that's done, the project is terminated
 systems having to be created

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 performance, cost and time are uncertain

 upsetting the status and violate the established practice
 having more risks as they are usually done for the first time

Projects are undertaken to address an opportunity or a business need, a social need, technological
advancements, customer requests, market demand or legal requirements.

What are Operations?

Operations are the on-going execution of activities and they follow organisational procedures
to produce the same result or a repetitive service that will help sustain the business.
Operations are typically permanent in nature and they include all of the normal business
functions.

Operations are:
 repetitive - they have expected inputs and outputs every time
 on-going - they have a continuous cycle of execution

Operations are characterised by:

 repeat process, product or service to sustain the business
 multiple objectives to be achieved again and again
 systems already created and in use
 performance, cost and time are known
 supporting the status quo and sticks to the established practice
 Having fewer risks as they are repeated many times.

In essence, operations do not produce new things, but they are necessary to maintain and sustain the
system. Operations are also used to run regular business models, achieve the goals of the business
and support the business on a daily basis.

Similarities between Projects and Operations

Of course, there are certain similarities between projects and operations, specifically:
 Both are performed by people.
 Both are planned, executed and controlled.
 Both have resource limitations.

1.13 What is Process in Project Management and Process Groups?

Process in Project Management:

 Process is the application of knowledge, skills, tools and techniques to project activities to
meet the project objectives
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 This is accomplished through the application and integration of the five project
management process groups (initiating, planning, executing, monitoring and controlling
and closing)

The 5 process groups of project management

 The Project Manager is responsible for accomplishing the project objectives
 These project objectives are classified as five phase which are the process groups of project
management
Following are the 5 process groups of project management:

1] Initiating phase:
 This phase is to determine the vision for your project, document what you hope to achieve,
and secure approvals from approving stakeholder (investors, employees, customers, and
suppliers).
 This phase is to identify Project scope, objectives, Resources required, cost estimation Risk
and issues etc.
 The project manager should have a clear thinking, who will bring the life to project, how to
secure the resources, how to get a strong start so that everything which comes next are set
properly.

2] Planning phase:
 The planning phase process group is where you build the project infrastructure that will
enable you to achieve your goal within your predetermined time and budget limits.
 Starting with a project management plan, project scope, work breakdown structure and more
 Qualitative and quantitative risk analyses are done.
 This is your detailed roadmap—your blueprint for success.
 When you reach the end of this phase of the life cycle, everyone on your team will not only
understand the vision of the project, they’ll also understand exactly what they need to do to
reach the finish line on time and within budget.

3] Executing phase:
 The executing phase is where action takes place, where most of the budget is allocated and
most of the project is executed.
 You take your project plan and put it into action, whether that takes weeks, months, or even
years.
 The executing phase often includes team development, stakeholder engagement, and quality
assurance activities, either on a formal or informal basis.

4] Monitoring and controlling phase

 The monitoring and controlling phase involves keeping an eye on the actual progress of the
project against your plan and taking corrective action where necessary.
 No amount of perfect planning it takes tracking and reporting.

5] Closing phase
 The closing phase is the final phase of the project life cycle
 It’s more than simply checking off the project as done.
 It’s essential to formally close the project and secure a sign-off or approval from the
customer, stakeholders, and/or project sponsor.
 This process might include:
 Delivering the project
 Hosting a post-mortem meeting
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 Archiving project records

 Celebrating or acknowledging the achievement
 Officially releasing the team
 The importance of this final step of the project life cycle is that where temporary teams come
together around a specific project, and then disband and regroup for another project.

Project Objectives vs. Project Scope

Project Objectives
Refers to a detailed description of the expected/desired outcome of the project
Ex: Build a new website

Project Scope
Refers to the amount of effort required to complete a project
Ex: Build the website using ASP & NET products and Flash media

1.14 What is Scope? Difference between Project Group Objectives and Project Scope

Conclusion
 Thus, this chapter has explained the various aspects of projects and project management.
 This conceptual knowledge will certainly help you to know about the features of project and
project management, which is at emerging unique discipline.
 And this chapter has also explained the various stages of project life cycle, which helps the
project manager to determine the strength and weakness of any project at any point of time.

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QUESTION BANK

Remembering:
1. Define Project Management
2. What is the meaning of project?
3. Define project
4. List the strategic considerations that will initiate a project
5. What are the features of a project?
6. List the benefits of project management
7. Which are the obstacles in project management?
8. Who is a project manager?
9. List the role of project manager
10. How the need of project consultant arises?
11. What are the steps to be considered while selection an outside consultant?
12. List the factors to be considered while selection an outside consultant
13. Show the classification of project
14. Show the similarities between project and operations
15. What is the difference between project objective and project scope?
16. Define process in project management

Understanding:
1. Classify the types of projects
2. Explain how project management is a profession
3. Illustrate some desired characteristics of Project manager
4. Summarize project consultant
5. Illustrate the main job of project consultant also give some examples for consultancy firms
6. Explain the objectives of project management
7. Compare the difference between project and operation
8. Explain operations and how it is different than the project
9. Explain process groups of the project management

Application: (case study)

Case study # 01: [20 Marks]

 Identify any Project consultant service, visit their website and write a detailed report, not
more than 4 pages, Identify their job, functions and type of services.
(Need to be submitted to the course coordinator, at the end of semester, use separate sheets to
write the report, the cover page must contain: Heading case study on: Write your topic,
followed with Student name, Register number, class and Course Name with course code)

Follow the below steps to write the report

 Mention the name of project consultant
 Explain project consultant in your own words (general)
 List types of project consultant and mention under which type the selected consultant belongs
to (the consultant which you are identified through their website)
 List their services
 Mention their earlier projects if possible
 List their functions
 Mention the name of their clients if possible
 Summarize your report with a conclusion

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Case study # 02: [20 Marks]

 Write down a detailed case study on ESSAR Company, as per below step:
 Visit essar website
 Identify the leadership and how the business started, who are the founders and
promoters
 Its vision and mission
 Heritage of the company
 Track record of the company
 Types of business carried around
 The projects which are carried by them (any kind either, past, present and future)
 The problems that they face during operation (road blockers)
 Invested cost, revenue and key sectors
 Analyse in your own words, how the similar kind of business can be started and what
could be the road blockers
 Identify the career opportunity for Diploma engineers (can refer other sourses)
 Conclusion

Case study # 03: [20 Marks]

 Develop a case study- imagine yourself as a project manager of an automobile company,
there are regular operation running in your company and during the month of May a customer
need a specific design change in electrical system. How will you manage the regular
operation along with the new project from customer request? The time duration is six month
total estimation of new project is around 2% of running cost. What will be your approach?
Write a detailed report not exceeding 10 pages.

Case study # 04: [20 Marks]

 Develop a case study – imagine yourself a leading construction firm and there is a
government project offer for building a flyover. How will you build a team, whether you will
contact a project consultant for this project? As this is a government project 60% of funds
need to be arranged by you initially, time duration is 14 months. What will be your approach?

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