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Introduction to Project
Management
Projects are vital means of development and economic growth. They generat
additional capital and ensure flow of goods and services to the nation. In India,
large amounts are being spent on various projects for providing infrastructural
facilities and for meeting the development needs. Hence, effective management of
projects is vital for the development of any economy. In the post -liberalisation era
and the growing global competitiveness, India can only lift herself by adopting a
project approach for development. Many organisations today do not employ full-
time project managers. In deed, it is common to create a project team to meet a
particular need, one that usually involves producing an end product or service that
benefits the organisation. To ensure a successful project, it is important to understand
and appreciate the project context/environment. This refers to the influences which
will affect the project both internally and externally. These can be political,
environmental, social, technological, legislation and economic.
The need for project management has been felt by businesses that have realised
the benefits of organising work around projects. The government, military and
corporate world have now adopted project management approach.
Meaning of a Project
Managers have to handle various projects during their careers. A software
consultant may need to implement a database management project, a construction
engineer may have to handle the construction project of a building, a scientist in
the Research and Development Department of an Organisation may be given @
research project, and similarly for an entrepreneur, starting a new business or &
manufacturing unit is a project,
In the precise sense, a project is a specific activity on which money is spent in
the expectation of returns. There is therefore a specific starting point, a spectific
end point and it is intended to achieve a specific objective.
According to Max Wideman ,“A project is a temporary, unique and progressive jon to Project Managemey
ntroductio gement :
stempt made to produce some kind of a tan
produc service, benefit etc.)”
nee Seth ling, i. Project may be defined as a set of activities
ected to an Ov" , having a definable starting poi i
directed 10 x ving ¢ starting point. Projects
wired to be accomplished within limited resources”. ental
According to Anthony Yeong, “A process for conducting w roduce:
f /ork th:
roduct of one sort or another.” et raat
gible or intangible result (a unique
new PI
characteri i 's of a Project
The identification of the project characteristics provides basic information about
the feasibility prospects of the project idea. On the basis of various definitions given
by various authors, the project characteristics can be summerised as under —
|. Project has a life cycle involving conception, design, inplementation and
commissioning.
Project is customer-specific. It is for a customer.
Project is a unique and no two projects are similar.
Project has a defined beginning and end dates. It is temporary in nature.
Project involves various analysis in its cempletion.
Project calls for teamwork. A project team is created,
. Project planning is essential for its successful implementation.
Project has flexible process.
9. Project is a complex set of things.
10. For the successful completion of a project,each activity is crucial.
II, Project has a unique set of objectives.
12, There is a risk and uncertainity in a project.
13. Project implementation calls for monitoring and control.
Project management coordinates all the activities from beginning to compeletion
ofthe project. A project involves uncertainities at different point of time during its
implementation. Organisational strategies, structure and systems are of help to
smoothen out many of the routine activities.
yee
ea
Project Management
Market globalisation and the prospects of a higher growth rate pose both
pportunities and challenges. Project management is therefore need to be sharpened
and focused so that the projects are completed with minimum cost at a shorter span
oftime. A study conducted by Cutter IT journal, has found out that 31% of projects
&t cancelled before they are completed, 53% over-run their cost estimates by an
erage of 189 percent. The challenge of implementing and completion of a project 3 Introduction to Project Managemen |
with minimum cost within stipulated time is at once humbling, inspiring and exciting
In the ultimate analysis, completion of a project with minimum cost and within the
stipulated time lies in the hands of human resource associated with the project, i¢
project management.
NE
Meaning of Project Management y
Project management is a specialised branch of management. It is a mature areg
that has systematic problems similar to many found in manufacturing Processes,
Herein, monitoring of project management assumes greater importance jn
implementing the projects.
In practice, project management is the application of knowledge, skills, tools
and techniques to various activities in order to meet the requirements of a particular
project. A project has a defined beginning and end, and is undertaken to meet unique
goals to bring beneficial change.
Wikipedia defines project management as, “the descipline of planning, securing
managing and controlling resources to achieve specific goals.”
According to Kerzner, “The project management is a series of planning,
ganising, directing and controlling the organisation resources to achieve the specific |
goals and objectives.” i
‘Accoding to Boon Ping Lim, “Project management is an application consists
of knowledge, skills, tools and techniques and applies into series of project events
to achieve the project requirements.”
Here, we can say that project management is the art of managing all the aspects
of. project from inception to closure using a scientific and structured methodology.
The term ‘project’ may be used to define any endeavor that is temporary in nature
and with a beginning and end. An ideal project is one which is carefully selected
and prepared, thoroughly appraised/analysed, closely supervised and systematically
evaluated. Project management deals with proper identification, formulation and
appraisal. These three aspects form the foundation for the success of projects.
The basic tanents of managing projects of all aspects are —
Define the objectives of the project.
(ii) Determine the activities to be performed.
(iii) Identify important activities
(iv) Allocate resources for each activity,
(v) Execute the project.
But managing the mega projects require more organised efforts. Proje |
management demands greater ability to get things done within the defined limits° 7
project scope, the time allocated to deliver the project,budgeted costs and desi
quality of the project.
Project management is one of the oldest-forms of management. It is large *
people management job. It includes management, leadership, problem-s0lVi"# Introduction to Project Management 4
conflict management, customer relations, team management and change
management. There are three phases of project management such as —
What is to be done?
Why is to be done?
1. Design it How will it be done?
Who will do it?
When can it start and finish?
Il. Doit How should the project be managed on a
[rn day-to-day basis?
Ml.
Develop it How can the management process be
la continually improved?
Characteristics of Project Management
Following are the characteristics of project management —
l.
2.
3.
4.
5:
6.
z=
Project management is a managerial activity.
It is a specialised branch of management. ~
All tasks/activities in project management are inter-dependent and inter-
related. « = Te
. Communication has a key role in project management.
Project management is both an art as well as science.
. Project management is related with the formulation, appraisal, financing,
administration and control of projects.
. Project management enables to complete a project within the budget in the
stipulated time.
. Project management leadership has become a highly sought-after skills.
Today, project manager plays a key role in identifying the potential dangers
or overcome them to ensure project success.
. Project management succeeds if the team is dedicated to the successful
completion of the project.
. In project management, a project-team is creafed which should have a good
understanding of the project requirements-project planning, project centrol
and project evaluation.
. The project management works according to the available project
environment. Hence, it is essential to understand fully the problem of staffing
and human resource management.
. Project management is effective in a project-oriented structure.
13.
Project management is two-fold. Fi inancial and administrative. Itis therefore,
imperative to understand these two aspects.
. Today, project managers play a key role in launching new products and
managing special projects. Inroduction to Project Managemen,
: |
t Management
Objectives of Prorees of'a project management call for Para ietaae to
ensure success of project. The success of a project refers to the 1g
‘@ The project must be get completed.
fe Itmust completed within the alloted funds.
Itmust be completed within the allocated time.
‘It must be completed to the satisaction of users.
Hence, the objectives of a project management are 3 |
1, Timely Completion of a Project: The main objective of project manage.
ment is to complete a project in time. In project management, Successful Comple..
tion of the project means you have delivered what you agreed on in the scope ofthe)
project. On the top of that, you have to make sure you are meeting all acceptance
criteria and fulfilling business objectives. Hence, timely completion of a project is
acrucial factor for the success of the project.
2, Avoidance of Delays and Technical Hurdles: Unexpected delays are one of
the most common problems in project management, In one survey, fifty percent of
companies said they complete projects on schedule. Delays may be due to:
+ Changes in project scope
* Non-availabitity of resources
+ The Project time-line is not planned properly
* Project objectives are not realistic within the project constraints, etc.
Project management has a number of technical hurdles/challenges and thei
solutions are not easily identifiable. However, they do need to be tackled and effec:
tively resolved. Project management aims to avoid unnecessary delays and techni-
cal hurdles.
3. Proper Fund Flow: Another Objective of project management is to main
tain Proper flow of funds for the project. It is a crucial part of financial planning
concerning a company’s current or potential projects. In order to maintain propet
flow of funds, company analyses the cash inflows and outflows that would occur i!
it is decided to take on the project
4 Proper Tooling and Techniques: Project management tools assist project
managers in quantifying their outcome and ensuring they align project’s goals with
te seh timeline. They allow teams to collaborate effectively, deligently moni
ir issues and we ial ri ie .
Bene Hi ne Project management ensures using proper tools)
5. Proper Investment Planning: Another aim of the project management is (0
provide necessary investment for the project. Project investement isthe total amout
of monetary and non-monetory resources that the investor wishes to provide t0 4
project in order to gain some benefits or return upon successful project completion
Proper investment planning considers the following points:
a] . 5A
Introduction to Project Management
+ Investment objectives
+ Risks factors
+ Safety
+ Income/Return, etc. |
6, Implementation of all Project's Procedures: A project, regardless of its size,
renerally involves five distinctive phases :- Initiation, Planning and Design, Execution,
Monitoring, completion. The smooth and uninterrupted development and execution ofall
the above phases ensures the success of a project. :
7. Realistic Project Planning : Proper project planning ensures proper expectations
are set around what can be delivered, by when and for how much. Without proper plan-
ning, budget estimates and project delivery timelines can be set that are over-ambitious or
YU cking in analogous estimating insight from similar projects.
In brief, the objective of project management is to plan, organise, execute and
control the project to achieve project goals and meet the stakeholders expectations.
Other objectives of project management are —
‘1, Toensure intra-project prioritisation so that projects with highest profitability
are taken up first.
2. Toensure that viable investments are made and
is improved.
3. To keep technology updated to achieve cost and quality standards of the
products.
4. To contribute towards achievement of the company’s objectives.
5. To integrate project plans with the overall corporate and business plan of
the company.
6. To ensure that projects are planned timely for meeting the future needs.
7. To ensure that a competent and an experienced contractor is engaged.
ait 8. To ensure application of modern and latest techniques.
9. To ensure completion of project without any cost and time over-run.
x 10.To ensure application of expertise in selection of a most profitable and
H acceptable project.
11. To ensure application of expertise in implementation of project.
ec 12. Toensure proper flows of funds.
Project management work in an environment that is very competitive. It is,
ne therefore, crucial that we sharpen our cutting edges in order to stay ahead in project
management to achieve our goal.
profitability of the company
Importance of Project Management
oT inst on UK's post-war national development was published in 1944 by
¥ “ney of Civil Engineers. This Teport pointed out the following —
oF der to.
should be ¢ Carry out work efficiently, it is essential that a scheme of operations
of * Fist decided by those who are directly responsible for the execution.”
oe Paver gacie: ee ys
Introduction to Project vol
ial activity. Whereever there js ,
gement is called for whether it
social work g
Project management is an exeiting manager!
Fed time-bound work, project mana
eed for specified time: ‘bound w r
oeesolshing house, an university, agricultural rural development,
industrial construction projects.
Organisations are constantly
the practise of project management,
facing new challenges and opportunities. Withou
organisations would find themselves drowiny
in an ocean of failed projects. All organisations need to take proleet mene
seriously in order to survive. By using project management methO
