After completing this module students will be able to:
Understand the concept of a Project Management
Understand the tools and techniques of project management
Know about the Project Manager
Understand the responsibilities of Project Manager
Understand the importance of Project Management
1. Introduction
Project management is a special branch of management which is different from
others based on a variety of factors which include the organisation structure, the process of planning and control, human relations etc. It is basically aimed at producing an end-product that will result some change for the benefit of an enterprise. It is the initiation, planning and control of host of activities required to deliver this end product which could be a physical product or new software or a new way of working etc. Every project requires a special approach to ensure the success of a project. This special approach can be termed as project management. The success of a project means that the project must be completed within budget, within allocated time and must perform to satisfaction. Project management fulfills these demands. There is a difference between project management and simple management. A key factor that differentiates project management from just management is that it has to deliver within a finite time span whereas management is an ongoing process. Therefore, a project manager needs a special kind of skills to handle and tackle various problems like technical skills, interpersonal skills and good business awareness.
2. Meaning and Definition of Project Management: Project management is the
planning, consistent monitoring and control of all aspects of the project to achieve the organizational objective within a definite time span and to the specified cost, quality and performance. Project Management is the art of managing all the aspects of a project from start to finish using a scientific and structured methodology. It is the application of knowledge, skills, tools, and techniques to all activities of the project to meet the project requirements. According to PMBOK® Guide (Project Management Body of Knowledge) project management processes fall into five groups: 3.
Initiating
Planning
Executing
Monitoring and Controlling
Closing
Project Management is a unique discipline where different people work in a
group with helping hands for the attainment of a common goal, keeping the total perspective in focus all the time. Project management is based on the holistic approach and focuses on results. Project management approach should have some special features like flexibility, free communication, regular feedback and adaptation to changing requirements of work and environment. This approach helps to improve production standards and delivers goods better than others even in complex and technical projects. An ideal project is one which is carefully selected and prepared, thoroughly appraised/analyzed, closely supervised and systematically evaluated. Project Management deals with project identification, formulation and appraisal. These three aspects formulate the basic foundation for the success of projects.
The concept of term ‘Project Management’ can be defined with the help of following definitions:
The planning and organization of an organization’s resources in order to move a
specific task, event or duty toward completion. Project management typically involves a one-time project rather than an ongoing activity, and resources managed include both human and financial capital.
-Dictionary of Investopedia
Project Management is the application of knowledge, skills, tools, and techniques
to project activities to meet the project requirements.
-Project Management Institute (PMI)
Project Management is the complete set of tasks, techniques, tolls applied during project execution. – DIN 69901 (Deutsches Institute for Normung-German Organisation for Standardisation)
4. Tools and Techniques of Project Management: There are several techniques
contributing towards effective project management. These are grouped under the following heads:
I. Project Selection Techniques:
II.
Cost Benefit Analysis and
Risk and Sensitivity Analysis
III. Project Execution Planning Techniques
IV.
Work Breakdown Structure (WBS)
Project Execution Plan (PEP)
Project Responsibility Matrix
III. Project Scheduling and Co-ordinating Techniques
Bar Chart
Life Cycle Curves
Line of Balance and
Networking Techniques (PERT/CPM)
Progress Measurement Technique (PROMPT)
Performance Monitoring Techniques (PERMIT)
V. Project Cost and Productivity Control Techniques
VI.
Productivity Budgeting Technique
Value Engineering
Control Room
Computerized Information System
4. The Project Manager: In order to make the project successful it must be
managed by a competent project manager. He takes the responsibility for planning, implementing, and completing the project. The project manager strives to maintain the progress and productive interaction with various parties in such a way that overall risk of failure is reduced. He is in direct touch with clients and has to determine and implement the strategies to meet the requirements of the clients. He is instrumental in ensuring the satisfaction of clients. The basic job of the project manager is to visualize the entire project from inception to closure and to have the ability to ensure that this vision is realized.
There are certain issues regarding the qualification, experience and practical knowledge of project manager. Most of the project managers including the successful ones come from leading business schools. But some succeeded and others not. The project managers who succeeded are very few in percentage because in Indian only a handful of projects are completed timely, within budget and also performed according to expectations. Although the failure of these projects has been analyzed in various seminars, conferences and workshops but still the role of project manager could not form the subject of serious discussions. 5. Roles and Responsibilities of Project Manager: Managing projects requires application of knowledge, skills, tools and techniques to project activities in order to meet the project objectives. The project manager does this by performing some tasks at various stages of the project. Each aspect of a project is managed by using the corresponding knowledge area. These knowledge areas are discussed in detail as follows:
1) Integrating and Managing Project Activities: The project is initiated,
planned and executed in parts. There is need to coordinate different activities of the project. Project manager is required to introduce integration management system so that all these activities should be properly managed. He is concerned with identifying and defining the work of the project and then combining and integrating with the appropriate processes. For integrating the different activities, a proper integration management is required to introduce which may include the following activities: 2)
Developing the project charter.
Developing the project management plan. O Directing and managing project
execution. O Monitoring and controlling project work. O Performing integrated change control.
Closing the project or phase of a project.
Thus, while managing all the aspects of the project, the project manager needs to coordinate different activities and groups. 3) Defining the Scope of the Project: The main objective of the project management is the successful implementation of the project. Therefore project manager has to ensure accomplishment of the project by defining and controlling various activities of the project. For completing this task he has to define the scope of the project, which may include the following: 4)
Collect the requirements of the project from the clients and determine the project scope accordingly.
Develop the description for the project and its products.
Decompose the project deliverables into smaller but more manageable work components.
Plan how the completed deliverable of the project will be accepted.
Control the activities which may change the scope of the project.
So, a project manager defines the work required to complete the project. He is also responsible for the timely completion of the project. Therefore, he has to manage the resources as well.
3) Project Time Management: The primary motive of the project manager is to
develop and control the project schedule. Every project has a timeline by which it is expected to be completed. It is the responsibility of the project manager to complete the project within a scheduled timeline. For achieving this objective he has to perform various functions which are given as under:
Identify all the work activities that need to be scheduled to produce the project deliverables. Estimate the types of resources needed for each schedule activity.
Estimate the time needed to complete each scheduled activity.
Develop the schedule
Control changes to the project schedule.
Although project manager takes care of all requisite parameters to manage the timeliness of the project effectively but in reality it is found that he finds it difficult to get the project completed on time. This usually happens due to many factors. So an efficient manager should ensure that the project will be completed on time.
5) Estimating and Controlling Cost: It is the duty of the project manager
to estimate the project cost and complete it within the approved budget. It is an important task of project manager because if the actual expenditure would increase the budgeted figures, he is answerable to the top management. Therefore for implementing effective cost management system, a project manager has to take care the following components: 6)
Estimating the cost of the project.
Aggregate the cost of individual activities.
Comparing the actual cost with the budgeted.
Monitoring and controlling the cost variance in the project execution and take the corrective action in case of adverse variance.
Generally value engineering and life-cycle costing is used to determine options
and optimise the process. 5) Ensuring Project Quality: A project manager has to ensure project quality. Project quality is defined as the degree and standard to which a project satisfies its objectives and requirements i.e. it must be completed on time and with all the work in the project scope completed within the planned budget. While managing the quality the following activities should be done:
Determine the quality requirements and standards that are relevant to the project.
Ensure the planned quality requirements and standards are applied.
Monitor the quality activities and record the results of these activities in order to assess performance and make necessary recommendations for corrective actions and changes.
7) Managing Human Resources: Human resource management involves
planning, organising and controlling the procurement, development, compensation, maintenance and integration of human resources of an organisation. The primary task of the project manager is to obtain, develop and manage the project team that will perform the actual project work. He has to ensure that following activities under this: 8)
Identify the roles and responsibilities at every stage of the project. O Assign duties and delegate the authority for reporting.
Manpower planning: he has to decide before hand as to what type of persons they are to be recruited and in what numbers, they are required.
Obtain the human resources needed to work on the project.
Develop interpersonal skills and team spirit among the team members.
Track the performance of team members, get the feedback and resolve the issues and conflicts. While solving the issues, he should not be biased.
7) Procuring Raw Materials: Project procurement is used when it is necessary to
purchase or acquire products, services, or results needed from outsiders. Generally the project team is working on behalf of the customer, and suppliers are responsible for the creation of the project deliverables or products. There can be both internal and external suppliers. A project manager has to perform the following activities for procurement:
Identify purchasing needs, specify the procurement approach, and identify
potential sellers.
Obtain the responses from the interested sellers, select the sellers and issue them contracts.
Establish relationship with potential sellers, monitor the procurement
performance and also control changes in procurement.
Complete the procurement process by accepting the product and closing the contracts.
9) Communicating Information to interested Parties: A project manager
needs to communicate all important information to the interested parties or its major stakeholders. For the success of the project such information should be generated and distributed timely to all the stakeholders involved. Communication is the most important aspect of a project and the most important skill of a project manager. In the absence of a proper communication system, a project cannot be completed successfully. Communication management includes the following: 10)
Identify all potential individuals, groups, and organisations that will be interested in the project and also find relevant information about them.
Determine the information and communication needs of the project. Also decide which communication approach should be used.
Make the required information available to the project stakeholders in a timely
fashion.
Communicate and work with the stakeholders, meet their needs, solve the issues and manage the expectations within the scope of the project.
Communicate performance information to the stakeholders.
9) Managing Project Risk: Every project has some uncertainties that give rise to project risks, which need to be managed. A project risk has direct relationship with the project objectives whether it occurs positively or negatively. The primary duty of the project manager is to identify the risks involved in the project and respond to them when they occur. A project manager has to perform various activities to minimise the project risks which are given as follows:
Plan how to determine and execute the risk management tasks.
Identify the risks relevant to the project and determine its characteristics.
Assess the probability of occurrence and the impact for each risk.
Estimate the effects of identified risks on project objectives.
Develop action plan to maximise opportunities and minimising threats from the identified risks.
Regular monitoring of risks, implement risk response plans and evaluate the effectiveness of risk management system.
Thus, it is the duty of the project manager to implement proper risk
management system to meet the project objectives.
6. Importance of Project Management: The growth of project management is
increasing rapidly around the globe which makes project management important. The following are major reasons why project management is important to modern businesses: 7.
1) Unique Venture: A project is a temporary and unique venture which is
required to be completed within a scheduled time. It is aimed at producing a unique product/service or process. Therefore a project manager, without having any blueprints to develop the end product, with his ability, skill, knowledge and expertise develop the plans and execute it for the successful completion of the project. 2)
3) Specific Skills: The success of the project depends upon many
integrated and coordinated activities of various departments or aspects of the project. For the successful implementation of the project, a project manager has to arrange various resources. Therefore he must be a skilful person who is acquainted with the knowledge of management techniques specific to dealing with one time projects. The enterprises that use project management to monitor and control processes and schedules can more effectively complete their projects on time and within budget. 4)
3) Scheduled Completion: Every project has a timeline by which it is expected to
be completed. An efficient manager should ensure that the project will be completed on time. Creating a project timeline requires coordinating project activities in conjunction with the ongoing business activities. The whole project is divided into different stages/phases and each phase is required to be completed on time.
5) Scope of the Project: The main objective of the project management is
the successful implementation of the project. The primary purpose of project management is to ensure that all the required work is performed to complete the project successfully. This is accomplished by defining and controlling what is included in the project and what is not. 6)
5) Project Budget: A budget is an estimation of income and expenditure for a given
period of time. Project management helps in keeping projects on budget. A good project management identifies anticipated costs early on to develop a realistic budget. Budget needs coordinated efforts of various departments to reduce overall cost of the project.
7) Target Oriented Human Resources: Project management ensures the
accomplishment of the objectives of an enterprise. Project based enterprises focus on goals and outcomes rather than working according to the clock. Therefore, working in those organisations stimulates human resources to work more hard with their creative and innovative ideas.
8. Summary:
Project management is the planning, consistent monitoring and control of all
aspects of the project to achieve the organizational objective within a definite time span and to the specified cost, quality and performance. Project Management is the art of managing all the aspects of a project from start to finish using a scientific and structured methodology. It is the application of knowledge, skills, tools, and techniques to all activities of the project to meet the project requirements. The success of a project means that the project must be completed within budget, within allocated time and must perform to satisfaction. An ideal project is one which is carefully selected and prepared, thoroughly appraised/analyzed, closely supervised and systematically evaluated. Project Management deals with project identification, formulation and appraisal. These three aspects formulate the basic foundation for the success of projects. In order to make the project successful it must be managed by a competent project manager. He takes the responsibility for planning, implementing, and completing the project. The project manager strives to maintain the progress and productive interaction with various parties in such a way that overall risk of failure is reduced. I have also discussed the role and responsibilities of the project manager. Managing projects requires application of knowledge, skills, tools and techniques to project activities in order to meet the project objectives. The project manager does this by performing some tasks at various stages of the project.
Learn More
Suggested Readings:
Project Management: A Development Perspective, Goyal B.B., Deep & Deep
Publications.
Project Management: A Managerial Approach, Jack R. Meredith, Wiley
Publications.
Project Planning and Control, Mohsin M., Vikas Publishing House.
Project Management, Chaudhary, S., Tata Mc Graw Hill Publications.
