Project Management & Financing

(MAC)
Dr Hemant Choubey
 Syllabus

• Unit I: Introduction to Project Management, Difference

between Project and Production, Attributes of a
Project:Time, Cost, Quality and Safety.Stakeholders of a
Project, Project life cycle. Project Planning: Types of Project
Plans and feasibility.
• Unit II: Project Network logic: Project Networking and
work flows, Activity duration and methods of estimating
activity duration – One time estimate three time estimates,
Duration estimation procedure.Use of Bar Charts, Mile
stone charts and networks, Network representation
schemes: Activity on Arrow and Activity on Node Networks
(A-o-A & A-o-N), Logic behind developing project network
and simple network calculations, Critical paths and floats.
 Syllabus
• Unit III: Decision making through networks: CPM, PERT & PDM:
• Use of network in Decision Making: Importance of critical
path,Monitoring the progress and updating the project plan. Use of
floats in Resource smoothening, Introduction to Precedence
Diagramming Method (PDM), Different lag and lead relations in
terms of SS(Start to Start), SF( Start to Finish),Finish to Start(FS), and
Finish to Finish(FF) and composite relations.

• Unit IV: Project Cost Control:

• Breakeven analysis in planning stage, Direct and indirect cost, slope
of direct cost curve, Total project cost and optimum duration,
contracting the network for cost optimization. Escalation &
Variation in prices.
 Syllabus
• Unit V: Projects Financing:
Introduction to project financing; Role of governments in
financing projects, Funder and Concessionaire: Economic
multiplier effects of Projects; Means of financing-public
finance and private finance, Granting authority: World
Bank Group, IMF, ADB, Micro and Small Enterprises
Funding Scheme (MSME), Elementary understanding of
Procurement of infrastructure projects through Public
Private Partnership (PPP) route, Build Operate Transfer
(BOT), Build Operate Own & Transfer (BOOT);
Stakeholders’ perspectives, Lifecycle of PPP projects,
Micro & Macro economics concepts and its application in
Project Financing.
 Unit I: Introduction to Project
Management
• What is project management?
• Project management is defined as the process
of steering a project from the start through its
lifecycle. The main objective of project
management is to complete a project within
the established goals of time, budget, and
quality.
 Unit I: Introduction to Project
Management
• Project Characteristics
Projects have several characteristics:
• Projects are unique.
• Projects are temporary in nature and have a
definite beginning and ending date.
• Projects are completed when the project goals
are achieved or it’s determined the project is
no longer viable.
Unit I: Introduction to Project
Management
 Unit I: Introduction to Project
Management
On any project, you will have a number of project constraints that are competing for
your attention. They are cost, scope, quality, risk, resources, and time.

1.Cost is the budget approved for the project including all necessary expenses
needed to deliver the project.

2.Scope is what the project is trying to achieve. It entails all the work involved in
delivering the project outcomes and the processes used to produce them. It is the
reason and the purpose of the project.

3.Quality is a combination of the standards and criteria to which the project’s

products must be delivered for them to perform effectively.

4.Risk is defined by potential external events that will have a negative impact on
your project if they occur.
 Unit I: Introduction to Project
Management
On any project, you will have a number of project constraints that are competing for
your attention. They are cost, scope, quality, risk, resources, and time.

5. Resources are required to carry out the project tasks. They can be people,
equipment, facilities, funding, or anything else capable of definition (usually other
than labour) required for the completion of a project activity.

6. Time is defined as the time to complete the project. Time is often the most
frequent project oversight in developing projects.
 Unit I: Introduction to Project
Management
Triple Constrain Triangle: In this triangle, each side represents one of the constraints
(or related constraints) wherein any changes to any one side cause a change in the
other sides. The best projects have a perfectly balanced triangle. Maintaining this
balance is difficult because projects are prone to change. For example, if scope
increases, cost and time may increase disproportionately. Alternatively, if the amount
of money you have for your project decreases, you may be able to do as much, but
your time may increase. The triple constraint is illustrated in the form of a triangle to
visualize the project work and see the relationship between the scope/quality,
schedule/time, and cost/resource
 Unit I: Introduction to Project
Management
• Difference between Project and Production
• A product is anything that can be offered to a
market to solve a problem, or to satisfy a want or
need. Products have a cycle that consists of
multiple stages. First, the product is conceived,
then developed, then introduced and managed in
the market, and finally, the product is retired
when the need for it diminishes. Products are
usually developed by a product team.
 Unit I: Introduction to Project
Management
• Difference between Project and Production
• A project is a temporary endeavor that is
undertaken to create a unique product or
service. With a project, there is a clear
definition of what needs to be delivered by a
specified date in time. Like in the previous
item, projects are usually carried out by a
project team.
 Unit I: Introduction to Project
Management
• Attributes of a Project
1.Projects have a start and finish point.
2.Projects have a set budget, which is capitalised.
3.The first prototypes of a mass produced product would be
considered a project
4.A project seeks to make instant changes/benefits
5.A project has a number of steps that make up the project life
cycle
 Unit I: Introduction to Project
Management
• Stakeholders of a Project
• Stakeholders are those with an interest in your project's
outcome. They are typically the members of a project
team, project managers, executives, project sponsors,
customers, and users.
• Stakeholders are people who will be affected by your
project at any point in its life cycle, and their input can
directly impact the outcome. It's essential to practice
good stakeholder management and continuously
communicate to collaborate on the project.
 Unit I: Introduction to Project
Management
• Stakeholders of a Project
• Types of stakeholders in project management
• There are two main types of stakeholders in project management,
internal and external.
• Internal stakeholders
• These stakeholders are coming from within the house.Internal
stakeholders are people or groups within the business, such as team
members, managers, executives, and so on.
• External stakeholders
• External stakeholders are — as you can probably guess — people or
groups outside the business. This includes customers, users, suppliers,
and investors.
 Unit I: Introduction to Project
Management

• Project Lifecycle

• The project life cycle includes the steps required

for project managers to successfully manage a
project from start to finish. There are 5 phases to
the project life cycle (also called the 5 process
groups)—initiating, planning, executing,
monitoring/controlling, and closing. Each of these
project phases represents a group of interrelated
processes that must take place.
 Unit I: Introduction to Project
Management
• Project Lifecycle
• Initiating phase

• The initiating phase of the project life cycle consists of just two separate processes:
the project charter and stakeholder register. The point of this phase is to determine the
vision for your project, document what you hope to accomplish, and secure approvals
from a sanctioning stakeholder. The key components of the project charter include:
• Business case
• Project scope
• Deliverables
• Objectives
• Resources needed
• Milestone plan and timeline
• Cost estimate
• Risks and issues
• Dependencies
 Unit I: Introduction to Project
Management
• Project Lifecycle
• 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 constraints, starting with a project
management plan, project scope, work breakdown
structure and more—and wrapping up with
qualitative and quantitative risk analyses and risk
responses.
 Unit I: Introduction to Project
Management
• Project Lifecycle
• Executing phase

• The executing phase is where the rubber hits the road—

where most of the budget is allocated and most of
the project deliverables are produced. 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.
 Unit I: Introduction to Project
Management
• Project Lifecycle
• 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 will exempt you from the need to be
constantly vigilant with tracking and reporting
 Unit I: Introduction to Project
Management
• Project Lifecycle
• Closing phase
• The closing phase is the final phase of the project life cycle includes
just one solitary process, and 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
• Archiving project records
• Celebrating or acknowledging the achievement
• Officially disbanding or releasing the team
Unit I: Introduction to Project
Management
 Unit I: Introduction to Project
Management
• Project Planning
• Project planning is a discipline addressing how
to complete a project in a certain timeframe,
usually with defined stages and designated
resources.
 Unit I: Introduction to Project
Management
• Project Planning
• Project planning is important at every phase of
a project. It lays out the basics of a project,
including the following:
• scope
• objectives
• goals
• schedule
 Unit I: Introduction to Project
Management
• Key purposes of planning include the following:
• facilitate communication and provide a central source of
information for project personnel;
• help the project sponsor and other key stakeholders know
what is required;
• identify who will perform certain tasks, and when and how
those tasks will happen;
• facilitate project management and control as the project
progresses;
• enable effective monitoring and control of a project;
• manage project risk; and
• generate feedback useful for the next project planning phase.
 Unit I: Introduction to Project
Management
• What are the components of a project plan?
The three major parts of a project plan are the scope, budget and
timeline. They involve the following aspects:
• Scope. The scope determines what a project team will and will not do.
It takes the team's vision, what stakeholders want and the customer's
requirements and then determines what's possible. As part of defining
the project scope, the project manager must set performance goals.
• Budget. Project managers look at what manpower and other
resources will be required to meet the project goals to estimate the
project's cost.
• Timeline. This reveals the length of time expected to complete each
phase of the project and includes a schedule of milestones that will be
met.
 Unit I: Introduction to Project
Management
• Project planning steps:
 Unit I: Introduction to Project
Management
• Project planning includes the following 10 steps:
1.Define stakeholders. Stakeholders include anyone with an interest in
the project. They can include the customer or end user, members of the
project team, other people in the organization the project will affect and
outside organizations or individuals with an interest.
2.Define roles. Each stakeholder's role should be clearly defined. Some
people will fill multiple roles, however.
3.Introduce stakeholders. Hold a meeting to bring stakeholders together
and unify the vision behind the project. The topics covered should
include scope, goals, budget, schedule and roles.
4. Set goals. Take what is gleaned from the meeting and refine it into a
project plan. It should include goals and deliverables that define what the
product or service will result in.
 Unit I: Introduction to Project
Management
5.Prioritize tasks. List tasks necessary to meet goals and prioritize them
based on importance and interdependencies. A Gantt chart can be
helpful for mapping project dependencies.
6.Create a schedule. Establish a timeline that considers the resources
needed for all the tasks.
7.Assess risks. Identify project risks and develop strategies for mitigating
them.
8.Communicate. Share the plan with all stakeholders and provide
communications updates in the format and frequency stakeholders
expect.
9.Reassess. As milestones are met, revisit the project plan and revise any
areas that are not meeting expectations.
10.Final evaluation. Once the project is completed, performance should
be evaluated to learn from the experience and identify areas to improve.