2 Introduction to Project Managemen, We WHAT IS PROJECT MANAGEMENT a simple meaning i.e., management of project. Hence we The term ‘Project Management’ conveys : : shall now explain the two terms ‘Project’ and ‘Management’ separately and thereafter, would analyse the definition on Project Management. Project ise ser shich-money is spent in the expectation In the precise sense, a project is a specific activity on wi of recurs. There is, therefore, a specific starting point, a specific end point and it is intended to achieve & specific objective. in addition, a project has a specific geographic location and would serve a group of population. The project will have specific authority to implement it. From the point of view of resource allocation, a project ean be considered as a proposal involving capital savestment for the purpose of developing facilities to provide: goods and services in a community dunng certain period of time, Construction of a house, seting up of a factory, establishment of chool, organising a centenary celebration, launching of metro rail are all examples of projects, ‘Traditionally work in the construction industry and defence procurement were seen as projects, but tn recent years projects range in size scope, cost and time from mega international projects costing millions of rupees over many years to small domestic projects with a low budget. Following a are the examples- + Designing and constructing a building ot a house or a mall; Designing and testing a new prototype (a car or a washing machine); The launch of a new product (advertising and marketing project); Implementing @ new computer system (IT project); Designing and implementing a new organisational structure (human resource project); Career development (education and training courses); Planning and conducting an audit (quality management. project); Disaster recovery (limiting the damage of fires, floods or any type of accident); Olympics, or Cricket tour of New Zealand (a sports project); Rolling Stones’ world tour (an entertainment project); * Moving house or going on holiday (a domestic project). Definition : A project has been defin-d by different scholars focusing on its different aspects, such as tment of tasks 1o be performe Gi) a vs aes Ie Ss 4 activities 0 achieve a specific objective; (iii) a unique and non-repetitive activity rdinats iP ts in the direction of intended goods, with primary em, hasais on apprsing : oposals from the economic and cools ptotbiliy auger A. few important nitions are given below : Little and Mirriees defines a project as, “Any scheme or Part of a scheme for investing resources Which can reasonably be analysed and evaluated as an independent unit.”! Dictionary of Management defines a Project as, * ‘reject Appraisal and Planning for Devel ies 2. French, Derek and Seward, "Dictionary of Manaeomonr” eee eoelPinE Commtries", 1976, p. 3yee . 13, combination of human and non. achieve 4 specific purpose.’ Harrison defines, “A project, as a non i aT 0} -rountin A ‘ with diseretional, financial and technical performance cence ee omer ndertaking, normally : nee goals.” The Project Management Institute's Project M es q project aS a temporary endeavour under pengenient Book of Knowledge (PMIBK) defines en to create a unique product or service, Temporary means that every project has é a definite end, Unic is di i istinguishi . Unique means thi i i is different in some distinguishing way from all similar eaaice eat the project or service ner definies a project aad : vines: ae are ean in nee isueevot in which human (or machine), material and financial ea ea ei neraR estan se oy to undertake.a unique scope of work, of given specification, : ime, so as to deliver beneficial. change defined litati quantitative objectives. ge defined by qualitative and Project, Programe Proposal and Plan From the above definitions of a project, i is observed that the term project is used in a wider sense which encompasses certain other terms like Programme, Proposal, Plan, Scheme, These terms are used as synenyms of a project or convey more or less the same sense, but it is not correct in all cases. Therefore, it is pertinent to understand the basic ‘difference among these terms as explained, hereunder. ; ‘A ‘project’ is an activity involving large financial resources while a ‘scheme’ is a small project to involve comparatively lesser amount of funds. A ‘programme’ consists of a group of similar, related or allied projects or schemes like health programme, educational programme, research and development programme ctc. A ‘plan’ is comprehensive view of something involving large resources and their allocation for different projects with well-identified objectives. It is @ technically pre-determined set of inter-related activities involving, most effective use of matevial, human, technological and financial resources over a given period of time to achieve pre-conceived objectives. For example, Five Year Plans in India since 1951. Thus, it is clear that the scope 0! ? a blue print of actions for the transformatio! a ‘plan’. Characteristics of a Project has certain basic features that speak of its exact nature. Different acteristics. The commonly observed characteristic! fa plan’ is much wider than that of @ project. A plan is sof inter-selected projects taken together constitute Anything worth calling a project types of projects signify different char features are as follows : os ne : fai ific objective. The objective may be oa SF uves + Every project has a specific obj : ©. Reedetermined Ce ren eye ial development of a region, development of 2 specific Fue coon eet nt Mruetion of building ete. Once the objectives are achieved, industry, setting up , the project is treated as 6 wis (Mae Ny ear Oe Cea T.Prajeer Management : A Developnen! prospectiye:Introduction to Project Managemeyy Ac : ted within a specific and pre. ’ determined period of time. It has a de! finite re caninptcantiane: ve: completion, Thus, every project has definite life spel? entrusted to one tesponsibility iii) Single Entity : A given project is a single entity which is entn ivan » centre. In other words, there will be, one central authority which is totally resp: its ompletion or attainment of objectives. 3 4 i (iv) ogee +A project involves allocation and consumption of resem pus eats one hand and generation of goods and services (output) on the other. schts be stole, the resources will be generated are also identified. A project is expecte plete _ within the resources provided. wo) avatce Hannity project requires planning in advance so that it may be completed within the resources provided and time schedule, In fact, all the activities constituting the Project are analysed in depth and their implementation is planned in advance. Wi) Lite Cycle : Like only living creature, each project has its own well-defined life-cycle starting with project conception and project formulation and ending with implementation and post evaluation of the results of the project. (wit) Location : The site of the project in most cases is away from the head quarters that creates problems in control and coordination. The control system in projects due to uncertainty factor is usually based on stage to stage completion. ain Team Work : A project is not one’ man job. It is a joint activity and therefore forcible and suitable teams are formed. These teams are formed as a part of total team consisting of Z members drawn from different lines, skills, knowledge, expertise and experience. ) Package of Risk and Uncertainty : A project is a business proposal associated with greater amount of risk and uncertainty. The de; gree of risk and uncertainty depends on how a project has been passed through the various life-cycle stages! Thus, risk and uncertainty go hand- in-hand with project. A risk free project can not be thought of ® Performance Measurement : The performance of project is diffi during implementation It can be judged’ only after completion, continuous monitoring of the progréss during implementation, Management cult to measure and predict Hence, a project requires Let us now tum to the term of ‘Management’. through others. It is about something intended to and money to get it done in 0 a large extent b art of securing and happiness Service.”! This by the people Management is the art of getting the things done be done and marshalling man, the best possible way. The quality of performance of y the quality of its management. John Mee has defi maximum result with minima both for the employer and the ‘erm is also used to indicate the other than the. manager, Thus, management is a basic oj material, machines a task is determined im Of effort, so as to secure maximum prosperit? employees and to give the peopl: the best possible diversity and multiplicity of activities to be managedpiroduction 10 rect Managemeng 15 project Management rom the description given above cay that Project Manage and philosophy. ls a discipline, itis one of th of goals allowing organisations to reduce ¢ ig the project, Project -manas aie agement is a discipline le tichést source of proven te iy chniques for attainment pisphy 148 the application of a heed’ for strict control and’ heavy rigidity. As a skills, tools and ivities eae , tools and techniques to project activities in order to meet stakeholders needs and expectations from the elec th algae sort ratec management is the planning, proj imple words, proje organising, directing and controlli ively shortterin objec ling of company resources for a relatively short-term objectives that has been established to complete specific goals and objectives. Project Management Definitions Some standard definitions or opinions on project management given by eminent experts and specialised institutions are given below s the process of achieving pr ject objectives d ind. over the specialties of the individuals _ concemed. Project management is applicable for any (unique, one time, one of a kind) “andes aking concerned with a specify sjectives.” . Mr. Olsen, “Project management is the. application of a collection of tools and techniques (such as CPM and matrix organisations) to direct the use of diverse resources towards the accomplishment of a unique, complex, one time task, within time, cost and quality, constraints. Each task requires a particular mix of these tools and technique structured to fit the task- environment and life-cycle (from conception to completion) of the task.” Project Management Institute of USA, “Project. Management is the art of directing and coordinating human and material resources throughout the life of a project by using modem management techinques to achieve pre-determined objectives of scope, cost, time, quality to the equal satisfaction of those involved.” Association of Project Management Book of Knowledge Project management is the most efficient way of introducing change achieved by = © Defining what has to be accomplished generally in terms of time, cost, and various technical and quality performance parameters; : i ‘ : Developing a plan to achieve these and then marking this plan ensuring that progress is maintained in line with these objectives; ’ : Using appropriate project management techniques and tools to:plan, monitor and maintain Progress; : 2 Employing persons skilled in project management including normally a project manager who are given (single) responsibility/or introducing the.change and are accountable for its successful accomplishment.Introduction to Project Managemen, © Projects must be delivered on time; Projects must be within cost; © Projects must be within scope: ® Projects must meet customer quality’ requirements, Features / ‘aracteristic: of Project Management From the foregoing discussion, the following features of project management are identified : © Proj t management which is not a small task, has a definite beginning and end. It is not 4 continuous process: © Project management uses Various tools to measure accomplishments and track Project © Projects frequently need resources on an adhoc basis as opposed to organisations that have only dedicated fulltime positions: Project management reduces tisk and increases the chance of success, Projects can originate at dif*rent places inside or outside the organisation, * The project manager is: the focal point for bringing together all efforts towards a single Project objective. & 2 istinct discipline in the corporate grooves of directing unique and novel undertakings; one team leader, Traditional Management Vs Project Management The term ‘management’ commonl of a business enterprise. Business management Project management is considered as the task who practices this art is a Project manager or Tesources. Traditional management concepts and tools started to evolve early in the 19th century as a result of ‘mass- Production’ operations. Much of this work evolve: of FW. Taylor in 1911, He Taylor’s school of thougt \ 4 from scientific management Concepts and theories Published a book that qualified and Suantified management in industry, in production operations and sales where d as the more traditional between the traditional are shown in the tableuroanction £0 Project Management Basics ‘Traditional Management Focuses on continuing operations and a single project life-cycle phase-production Project Management Focuses on one-time revolutionary development of a product. Applicable where the tasks of cach organisation are generally repetitive and where very few ‘new" problems can be expected. Applicable where the accomplishment of unique tasks by various organisations during the limited life of the product is required. : All important business is conducted through a pyramiding structure of superiors and subordinates, Peer-to peer, manager-to-technical expert, associate-to-associate, etc., relationships —— are used to conduct much of the salient. Organisational | Organisational objectives are sought by | Management of a project becomes a joint objectives the parent unit consisting of an army of | venture of many relatively independent sub-organisations working within its environment. The objective is unilateral. organisations. Thus, the objective becomes multilateral. Unity of |The General Manager acts as the one | The project manager manages across direction head for a group of activities having the | functional and organisational lines to same plan. accomplish a common inter- organisational objective. Parity of | Consistent with functional management, | Considerable opportunity exists for the authority —_| the integrity of the superior-subordinate | project manager's responsibility to and respon- sibility relationship is maintained through functional authority and advisory staff services. exceed his authority. Support people are often responsible to other managers (functional) for pay, performance reports promotions, ete. ‘Time Tends to perpetuate itself to provide | The project and hence the organisation duration continuing facilitative support. is finite in duration. PROJECT MANAGEMENT FUNCTIONS Projects are achieved through people by calling upon their respective skills and abilities. That is why, we need project management supportive (integrative) functions.. The project management functions developed and divided into three groups. These groups correlate with the structure of project management and specify the knowledge required therein. The three groups are + © General Management Functions © Basic Project Management Functions © Integrative Project Management Functions These three groups and project management functions therein are given in the chart on next Page and described there after.Rae ieee Introduction to Project Management 18 4 { Management Functions a * = (General PM Functions Basic PM Functions! ou Sitemap fared Mca oe © Project Integration [> Scope Management © Risk Management © Strategic Planning le Quality» Management © Human Resource #¢ Resource Allocation je Time Management Management je Cost Management © Control / Procurement ' Management . © Communication ; Management General Project Management Functions The general project management functions includes’ the following : Project. Integration If there ‘is one most important aspect of project management, it would be integration. One must be able to integrate the many speciality fields provided by the human resource. Int e wide variety of equipment afd matetials, integrate the technologies: cat EA ate a AneaTae ANE teehnOTOHTee oTprOaOS!a Brodish aan ti result in formance to the specific ions / requirements on time, ‘and ‘in the cost frame allowed. Wie dynamics of the project environment, it is almost impossible to allocate and schedule every part of the project. The management must’ be able to use the functional structure to adapt to the things that will always go wrong. Strategic Planning There must be a ‘vision’, If it is appropriately conveyed to the project team, it can be in determining controls and integration, On the technical ke tee png mus ave combining Repent ;ompoieabauinselnate oe REh best fits the requirements. Planning on a human level requires concepts and work efforts. A well-defined vision helps define how 2 project is to be managed. Also, in strategic planning, control requirements and related procedures must be in place before substantial work can be done on the project. Resource Allocation ie project budget, but is not a simple process. Fortunately, there is the computer with its many software packages. These programms allow identification of critical activities, number of unit resources needed in one day, and ‘activities in which a critical fesource is required. This greatly eases the demand on identifying critical decision area but the human is the one who makes the ultimate decision. Basic Project Management Functions i The basic project management functions include the following : Scope Management Scope management is the function of controlling a project in terms of its goals ar jectives: through the processes of conceptual development. The scope of a project involves either the projnroduction to Project Management 19 work content or its components. It can be fully desoribed by naming all activities performed by identifying the end products and the resources consumed. quality Management Quality is the composite of material attri neluding performance features and characteristics) of the product or service which are required to, satisfy: the need: for which the project is launched. This is simply conformance to requirements and. specifications. The requirement may not only be what is written in the. contract. but-also:the-client’s real or conceived or perception of conformance. Conformance can apply to the project itself as a measure of how well it was planned and executed relative to such. things as environmental and safety. expectations of society. Time Management Time management is the function required to maintain appropriate allocation of time to the overall conduct of the project through the successive stages of .ts natural life-cycle. Time. management is divided into four areas planning, estimating, scheduling, control. Planning includes defining the project, how the project will be: accomplished, and what methods will be used. Estimating is determining the duration of each activity involved in-the project. Scheduling determines the time period in which the activity is performed. Control: includes evaluating events. and taking corrective action to ensure project completion. Cost Management This includes the processes required to maintain financial control over projects. This requires estimating, organising, analysing, controlling, economic evaluation and forec: to allow for — corrective action. Cost estimation involves assembly and prediction of cost over thelife of a project. Establishing a budged, setting standards. and monitoring the project costs can help manage and measure progress. Cost control is an integral part of cost management. This involves gathering, analysing, monitoring, reporting, and managing the cost on an ongoing basis. Integrative Project Management The integrative, also called supportive, project management function includes : Risk Management This is an ‘art and a science’ of identifyin; evaluating, and responding to the risk con itions throughout the duration of the SR ae enea Heatines ke jjectives of the project. Risk management needs to be seen as identifying problem areas in advance and not as they happen. This would provide the necessary time to adjust the project in correspondence to objectives and adapting to the situation while the project is progressing. Time and money can be lost here, This is a formal process where a business applies defensive response planning in the wake of mitigation by avoidance, deflection of risk through the contract or by insurance, and contingency planning by providing allowances in the budget for'the uncertainties, Human Resources Management Human resources management is the function of directing and coordinating human resources throughout the life of the project. This involves building a project team that would. be a Workable, cohesive unit. Two types of tasks are recognised i.e. administrative and behavioral. Administrative tasks include compensation and evaluation of employees, and relations and evaluation of government regulations. Many of these tasks are directed by organisations outside: the project. In order to facilitate the process, one must understand how these factors. work.q Introduction to Project Monagey, Llu m members. Interaction as a, team ang s. Areas of motivation, Contig portant part of this type ot roject is relatively shor The behavioral aspects deal mainly with the project tear es their contracts outside the project become a pat of the pro “ resolution, communicating, and team building become ee Management. A concerted effort is needed in this area since duration and dynamic in nature. Contract / Procurement Management * ‘ et sed in chapter 4) is the function through which Fesouta, Contract ent management (a f cain Cae including people, plant, equipment and material are acquired for thee ae is ce the end product. Formal negotiations usually result in a written Minen cn conta Knowledge is vital to this area of management because of the many rag . f knowledge ii that are required for project completion and success. he fondemena! te tie ae include initiation and evaluation of contracts, negotiation and administration of contract I is also essen to understand the different social, political, legal, and financial involvement entangled in contrag; procurement management, i] Communication Management Communication manag ent is the proper organisation and:control of informal “whatever means to satisfy the needs of the project. It includes the processes of transmitting, fl receiving and interpreting or understanding information using appropriate skills according to the application in the project environment. Successful project management must have a viable communications network. Proper communication to the upper management, project team, and to others rely heavily on the ability to breakdown communications that are not clear and convey unfamiliar technical languages, EVOLUTION OR HISTORY OF PROJECT MANAGEMENT The history of project management is often associated with the Construction of the massive Egyptian | ids and the Great Wall of China. Later these techniques were improved and modified for usage on ether forms of construction projects, such as shi building. Modern day project management is associated with Henry Gantt’s development rt (early 1900s) and’ special project lues developed during the military. and aerospace cts of the 1950s-and_ Os. ica and Britain. It is these special and distinctive Project management tools and ‘techniques which are widely used even today. The common feature among construction works is 4 that they all require special organisation, facilities and material resources just for the purpose of doing one job. Project Management during 1950s and 1960s By the 1950s, the size and complexity of many Projects had increased so much that even these | techniques proved inadequate, Hence, during 19505 and 1960s, almost all the special project management techniques, which we use today, were developed by the U.S, defence-aerospace industry (DOD and NASA), These include Programme Evaluation and Review Techniques (PERT), Earned Ve X Configuration Management Value; Value, Engineering; Work Breakdown Structures ). Motivated by scheduling urgency and Chgineering management, the construction industry made ice development of Critical Path Met! and Precedence Diagram Method ing network diagrams and resource smoothing. During this period large scale projects were effectively protected from the environment, society and ecology issues: © The Appollo space programme and construction of nuclear power stations were exemplified projects of this period.Introduction to Project Management Ll Project Management during 1970s to 2000s The Vietnam war, the ile constttin project aera on Gl emanaes and environmental.pressure featured in the 1970s to So rat : ge of industries c Envi a prajeobIacub linpactiag on Roll 's and commerce. Environmental matters become a ehesloby eagkien Gein N. nuclear waste, noise pollution and roads. During this period ‘nies outside the defence and construction industries were Starting to use PE are effectively chabling theni to design’ t6 Gost Feduiction. Project biansasincht ation in America (PMI) and Britain (APM) were establishing project anagement as a profes ac oor i management as a 7 ion. AS a consequence, project results were starting to reinforce concepts and the distinctive tools and techniques were refined 04 In the 1990s fierce competition from the Far East cneouraged large companies to use management by projects approach. This enabled them. to assign their work to many small project teams. which were able to quickly, respond (0 innovation, new ideas and market The nineties saw increasing deregulation, GATT agreements reduced, tariff barti IT facilities communicating through the Intemet, saaptias During this period Zotal Quality Management (TOM) emerged as a comprehensive. project management technique emphasising _the~imy onting work, and management through the project project management initially proceeded” slowly, "but With the introduction of ISO 9000, Quality Management System (QMS), TQM gained under acceptance. Moreover, to develop a” management culture within’ thé company, the project office Was developed as a centre of excellence. The last three decades of the twentieth century witnessed the increased computerisation of project management~ Initially schedule bar charts, network diagraihs and Other distinctive project management tools were” oFiginallysdewsloped-forfiailUal ealeulation. These tools were gradually computerised during last three decades. using mini and main frame compiters, but it_was the introduction-of the persorial computer (PC) that paved the Way for project management software. Project Management during 21st Century Leading researchers and scholars perceive the twenty-first century as the upcoming age of project management. The globalisation of markets, the merging of many European economies, increased expenditure of money on capital 1ivestinentfor the pUTpose of rapid TaTrasiUcture Sxpansion “ffcativoness of organisational operations. Aceording 10 Rodney Turner, editor of the International 7 Project Manag the managers in 2st century, will use project based management Journal of Project Management, ys wi eatiba ie we a vehicle for introducing strategic planning and for winning, and maintaining compesitive advantage. : CLASSIFICATION OF PROJECTS DiREREST Gauhortios have classified project in various ways. Litle ate Mires aides with two broad categories, v/. quantifiable projects and nota ial i i a le rains Commission has accepted the sectoral criterion for clesiieation ot po fe oon at i ic characteristics. All India i : classified on the basis of fechno-economic s Se ee a es classified projects on the basis of the nature of the project and its life-cycle proj classifications are explained below : Mftion to Project Management 1.33 The issue list contains all of the points that must be discussed. This list must be discussed regularly. For keeping track of progress and registering decisions that have been taken, a model for an action and decision list has been included. A risk log has been. included to help the document risks that are identified.during the project. These risks must then be discussed in the next meeting of the project team and, where necessary, eliminated. Finally, a standard meeting report needs to be included as an example of how to archive and compile these kinds of reports for future. One important aspect of securing the information concerning a project is that all decisions should be reproducable. Decisions are often taken orally and not archived. Regardless of how clear such decisions may seem at the time for both parties, they must eventually appear in writing. If this is not possible, the undocumented decision can become a source of misunderstanding or even conflict. Many projects are delayed by various interventions from outside (e.g. ‘this is even more important’, ‘this is better politically’, ‘the customer wants us to work on something else first’). Keeping a personal log for recording this type of intervention can help project workers to identify the cause of project delays. (Project Reporting” Crucial decisioris must be taken during a project; these decision points correspond to the end of each project phase, and they call for recording the project’s current status and writing an intermediate report. They also provide the opportunity to reconsider the project phases that are yet to come. At these decision points, project leaders should consult with their clients regarding decisions about the project and adjust the control factors, if necessary. For example, if many new and unexpected requirements have emerged during the definition phase‘that could increase the costs considerably, it is useless to proceed with the original budget. The decision points at the end of the phases often call for decisions regarding whether to proceed with the project or whether it should be discontinued. eS Metiasioneat - The reality is that the project management methodologies available @ project Panacen he Preis Faced long before a project starts. m y cision 1s based on nothing more than ‘this isProject Managemen 136 + Collective Code Ownership. 5 « Coding Standards or Coding conventions. Programmer welfare + Sustainable pace (i.e. 40 hours/week) The core practices are derived from generally accepted best Practices, and are taken to extremes: * Interaction between developers and customers is good, Therefore, an XP team is supposed to have a customer on site, who specifies and prioritizes work for the team, and who can answer questions as soon as they arise. (In practice, this role is sometimes fulfilled by a customer proxy.) * HWlearning is good, take it to extremes. Reduce the length of development and feedback cycles and test the outcome quickly, * Simple code is more likely to work. Therefore, extreme programmers only write code to meet actual needs at the present time in a. project, and go to some lengths to reduce complexity and duplication in their code. * If simple code is good, re-write code when it becomes complex. * Code reviews are good. Therefore XP Programmers work in Pairs, sharing one screen and keyboard (which also improves communication) so that all code is reviewed as it is written. * Testing code is good. Therefore, in XP, tests are written before the code is written. The code is considered complete when it passes the tests (but then it needs defragmentataion to remove complexity). The system is periodically, or immediately tested using all pre-existing automated tests to assure that it works. (See test-driven development) \ Scrum is an agile method for project management developed by Ken Schwaber. Its Gali to dramatically imprave productivity i Previously paralyzed by heavi ‘ocess-laden tho giés. Its intended Uses for the mans ¢ Of Software development projects as well ‘apper to other software development methodolagi such as Extreme Programming. ne ee & Scrum is characterized by: * A living backlog of Prioritized work to be done. _ a series * Completion of a largely fixed set of backlog items of short iteratione ne ernwinke.Introduction to Project Management 1,37 + Abrief daily Meeting (called a explained, Upcoming work is raised, « A brief planning sess! sprint will be defined, + A brief heartbeat retrospective, at which all team, members reflect about the past sprint, See eee Scrum is facilitated by a scrum master, whose Primary job is to remove impediments to the ability of the team to sprint the goal, The scrum master is not the leader of the team (as they are self-organizing) but acts as a productivity buffer between the team and any destabilizing influences. scrum), at. which. progress is described, and obstacles are lon In. which the backlog items for the im adopts an empirical approach - accepting defined, focusing instead on maximizing the team’s ability to respond it to emerging challenges, dology /(- Epil tpt) The spiral methodology extends the waterfall, model-by-introtucing prototyping.Tt"iS~generally-chose vert vaterfall.approach, for large, expensive, and complicated Ata high-level, the steps ii thé’spiral model are as follows: * The new system,requirements are defined in as much detail as possible. This usually i volves ir lewing_a_number-of users.representing all the external or j ers.and other aspects of the existing’system:~~ A preliminary design is created for the new system. * A first prototype of the new system is constructed from the Preliminary design. This. is usually a scaled-down system, and represents an approximation of thi Characteristics of the final product, ~~~ “A sccong Prototype is evolved using four steps: {@) Evaluating the first prototype and identifing its strengths, (b) Defining the requirements of the second prototype.1.38 Project Managemen, g, the second prototype. second prototype. lon, the entire project -can bg at. Risk factors might (c) Planning and _designin (d) Constructing and testing the « At the project sponsor's opti aborted if the risk Is deemed too gre involve development cost overruns, operating-cost miscalculation, or any other factor that could result in a less. than-satisfactory final product. «The existing prototype Is evaluated In the same manner ag was the previous prototype, and, if necessary, another prototype Is developed from it according to the fourfold procedure outlined above. « The preceding steps are itera that the refined prototype desired. « The final syste prototype. «The final system is thoroughly evaluated and tested. Routine maintenance is carried out on a continuing basis to prevent large-scale failures and to minimize downtime. The system development life cycle (SDLC) is a conceptual model used in project management that describes the stages involved: an information system development project, from, “an_titial’ feasibility study through maintenance of the-completed application. Various SDLC methodologies have been developed to guide the processes involved, including the waterfall model (which was the original SDLC method); rapid action development (RAD); Joint application development (JAD); the fountain model; the spiral model; build and fix; and synchronize-and-stabilize. : Often, several models are combined into some brid methodology. Decuneiatin' uc regards of th ye ot 4d aa no devised for any application, and is usually done in parallel A the development process, Some methods work better for specific types of projects, but in the final analysis, the most important factor for the success of j was fallewea, of a project may be how closely the particular pla" ted until the customer is satisfied represents the final product m is constructed, based on the refined In general, an SDLC methodology follows these steps: * If there is an existing system, its deficiencies are i This is accomplished i with ppt Eee serene sseroret1.39 Introduction to Project Management ‘ sin + The new system requirements are defined, including addressit9 any deficiencies in the existing system with specific propo for improvement, « The propgesed system is d ed. Plans are created detalling the hardware;-operattig systems, programming, and security Issues, - « The new system is developed. The new components and programmes must be obtained and installed. Users of the system must be trained in its use, and all aspects of performance must be tested. If necessary, adjustments must be made at this stage. * The system is put Into use. This can be done in various The new system can be phased in, according to application or location, and the old system gradually gets replaced. In some cases, it may be more cost-effective to shut down the old system and implement the new system all at once, * Once the new-system is up.and running.for a while, it should be SHSUSLIVETYSyoht Mo eae be kept up rigorously-at-all*time: sers of the system should be kept up-to-date concerning the latest modifications and procedures. i ditional) Methiodology 0 508 The waterfall model is a popular version of the system development life cycle model for project management. Often considered the classic approach to the system development life cycle, the waterfall model describes_a_development.method that is rigid and linear, Waterfall development has distinct goals for each phase of developmer 2! nt.where.. €ach phase is completed for the next one to be started and ther no turning Back. > ; é percéived advantages of the waterfall process is that it allows for departmentalization and managerial control. A schedule is typically Set with deadlines for each stage of development and a product can Proceed through the development process. In theory, this process leads to the project being delivered on time because each phase has en planned in detail. In practice, waterfall development often falls short of expectations 8s it does not embrace the inevitable changes and revisions that come necessary with most projects. Once an application is in the testing stage, it is very difficult to go back and change something lat was not thought of in the concept stage. Alternatives to theCLASSIFICATION OF PROJECTS DifREFERt authorities have classified project in various ways. Little and Mirrless divide projects with two broad categories, viz. quantifiable projects and non-quantifiable projects. The Planning Commission has accepted the sectoral criterion for classification of projects. Projects can also be classified on the basis of techno-economic characteristics. All India Financial institutions have classified projects on the basis of the nature of the project and its life-cycle. These various project classifications are explained below :Introduction to Project Management Quantifiable and Non-quantifiable Projects Little and Mirr divide projects into two broad categories viz. quantifiable projects and non- quantifiable projets. Quantifiahle. Projects. are those in which a plausible assessment of benefits can be made. Projects concerned with industrial development, power generation, mineral develop- ment are forihing part of quantifiable projects, Non-quantifiable Projects are those where plausible assessment of benefits.is not, possible This category. ises health, education and detence projects, Sectoral Projects ~~: Veasteeiy 4 The Planning comraission in, india has accepted the sectoral basis as the criterion for classification of projects. A project may under, this classification fall into any one of the following sectors: (a) Agriculture“and“Allied”’Secion.. (b) Intigation. and.Power, Sector. ,..,., (c) Industry and Mining’Sector.:.» ah (d) Transport and: Communication Sector. (e) Social Service*Sector, and’ ‘ (f) Miscellaneous’ Sector Be 6 : ‘The Sectoral classification of projects is quite liseful for resource allocation at macro levels, Techno-Economic Projects Project are sonietimes classified on the basis of their techno-economic characteristics: Three-main groups of classification’ can ‘3é identified here : plea im () Factor classific: upon whether large scale n pla (ii) Causatio | Clas + Where projects are classified as’ demand-based projects or raw material-based projects, The non-availability’ of certain goods and services and consequent demand. for_stich goods. or’ se ‘or thE "availability” of certain-raw materials, skills-OF Other inputs is the dominant reason for starting i project. (ii) Magnitude-oriented Classification : Where the-size-of-investiient forms. the basis of classification. Project may-thus-be classified-as-largenscale, médiuin-scale or small-scale projects depending upon the total-project investment. fe ; ee Financial Institution’s Classification... seal All India and State Financial Institutions classify the projects according to their age and experience and the purpose for which the project is being taken up. These projects fill-under three categories as noted here under:: ! 8 ¢ Trofit-oriented projects; 63 opt @ Service-oriented projects: and ac © Purpose-oriented projects. Profit Oriented Projects Profit-oriented projects are need based projects which are under-taken to improve the profitability of the organisation. Such projects are as follows :Introduction to Project Management 1.43 (1) Now Project : A new project is one that identifies a new product for which there is demand fiom the custoniers oF iL can he a project for the production that is already in the market but the demand fir whict ix in excess of the supply leaving a gap to be filled in, Ide and formufotion of a new project requires special knowledge and skill. Such projects are cleared when the rate of return On investment and net cash Mows are higher than the required rate. (2) Expansion Project : An expansion project’ is one that is aimed at increasing the installed plant capacity for the eurent product range, Expansion of plant capacity can be done either hy establishing additional plant capacity or by acquisition of another organisation in the same Nine of activity, Por the clearance of such project, the differential retum and ‘the differential cost fiom the existing to the planned level, both are considered. If the differential return is higher than the differential cost the project is cleared. {3 Modernisation Project : ‘Technological innovation is a continuous process. When a new technology is involved and becomes commercially operative, the-existing technology becomes obsolete of outdated. Thus, whenever either the plant and machinery becomes obsolete or when- ever the production process becomes obsolete there is a need for modemni-sation. Ignoring the need for modemisation will result in-reduction of profit margin which in the course of this may even lead to closure of the organisation. For clearance of such project, an assessment of the impact on retums with or without modification has to be considered The project is cleared if the differential return is satisfactory. ’ {© Replacement Project : Replacement project involves some of the old machinery with new machinery of the same capacity. Due to aging and wear and tear of machinery, it will be no more advantageous to keep the workcout machinery in the production line in view of abnormally high maintenance costs, poor quality, and quantity of output, break-down etc. Hence, a replacement project is implemented to reduce the mainte-nance cost of old machinery and to keep the production going without any obstruction. Clearance of replacement project is the some 2§ that of modemisation project. ‘The difference berween replacement and wedernisation project is that in case of replacement the objective is to restore the same. or higher capacity whereas in,case of modemisation the objective is to increase the efficiency and/or to reduce the cost. {8) Diversification Project : When a manufacturer wants to offer more than one product, it is desenbed as produer diversification and the project meant for this purpose is the diversification project Diversification projects are necessitated by the urge to explore market potentials in uinatiempted areas with a view to improve the profitability of the organisation. Such projects sre cleared when differential return is higher than differential cost, Service-oriented Projects Service-oriented projects are not directly connected with the basic objective of the firm, but may be implemented cither under compulsion or as a statutory obligation, Such projects are (1) Research and Development Projects : Research and development work like research of new product or process improvement, market research ete carried out in different operating sectors of the firm are known as research and development projects, The expected retum from such projects is never an important basis for their approval since it is difficult to measure. (2) Welfare Projects : Investment in, such projects like cuntecn, housing, hospitals ete, is made to promote the morale of the employees and staff Evaluation of such projects is very difficult,Innoduetton to Vrojed Manayenen te edlueathonal sue trae, geet STnvestmont alia to be made for Buch projects 19 4 aiunntional Hroject? ( Cee (he omployeos, Hvuluntlon of restilts Of fey proving the efficloney of yory didtioutt, (@ Prestige Projects sin ouer to erento Ar aed type of praicets he. 10 constr Purpose-Oriented Projects Projects ave abvays purposellth, The fied according, 10, the purpose () Rehabilitation Projects : Robabilitatlon projects are generally undertaken by the finan f ng groups to service sick unl Although this practice may involve large ti is Very’ le Some of fir ich project nre IRBE and § a fivouable nage mnong the public investinent 1 4 guost house, splendid adininistrative offices fore they enn bo clits sound inves probability of succes institutions whieh help @) Balsncing Projects : The balancing projects are usivally undert the supply side of economies of factors of production, to ¢ inate the under utili actual capacities and enhance efficiency and effectiveness. The basic principle of these pro ig striking an equilibrium when the capacity utilisation of plant and machinery is imbalanced, @) Alaintenance Projects : Maintenance projects involve over hauling the machinery, repairs ‘and patching up activities at regular intervals. The objective of these project is to be to upkerp the existing plant and machinery. New Concepts in Projects In-recent industrial liberalisation programme in India, few projects are emerging with new concept for financing and execution of project. Different varieties of such projects seen in India are as follows > (1) Build, Own and Operate (BOO) : Under this, the entrepreneur will build the project from his proj ‘own resources and he’ will own the project and he is also entitled to operate the project subsequent to its commercial launching. These type of projects are undertaken in core sector like Power, Steel, Oil, Railway etc. by the private sector and the Government will give guarantee to buy the output. @) Build, Operate and Transfer (BOT) : The private sector is invited by the Government to undertake projects in core sector, when the Government is unable to finance such projects due to scarcity of funds. Under this, the private sector will put the investment in bringing the project. and the Government allows them to operate for certain period and then transfer the project to the Government. 8) fesse, Heoablltate Operate and Transfer (LROF) : Under LROT concept, the Government val ge a running plant for rehabilitation to put the plant on profitability track or for ing its pro luction capacity. The Government adopts this concept when it reels under funds constraint. 4) Engineers @) si bincers Feet ement and Construct (EPC) : \n these projects, the contractor takes the om ee sensi ity to construct, erect, commission and supply the plant and keeps it realy W Operate by the owner. It is the responsibility of the contractor to prepare engineering deviate, Procurement of materials, erection and commissioning the project and then jin i F “ ase ore Me a the owner. EPC gives full guarantee of all multi-process plant. eC aontiale nae au who are not financially strong do not get chance to enter into the . -y NO project delays. Financial institutions always prefer to have This ts being done by sound enterprises, aken to cope with chi tion of theIntroduction to Project Management 115 single point responsibility agency which has competence and reputation and on whom they can trust. (5) Turnkey Contract : When a single contractor undertakes the responsibility for the entire work and complete it so that the owner merely turns the key and operates the plant, it is called ‘turnkey contract’. \t covers the complete and composite responsibility of engineering, design, manufacturing, supply, construction and commissioning. It is a total, package deal for a lump sum consideration. Turkey contract may help in cutting down the number of responsibility centres to the extent of one. It reduces the number of agencies the owners required to coordinate, The turn key control may not allow the owner to participate and he cannot become familiar with plant and machinery, checking procedure by the owner is not possible and developing in house technological services by the owner cannot be adopted. Aaa ear MANAGEMENT IN NIFFERENT ENVIRONMENTS1. Project Initiation Phase 2. Project Definition Phase 3. Project Planning Phase 4. Project Execution Phase 5. Closing the project : Let us discuss these Phases in detail: za Introduction: Th Initiation Phase j. i 7 In this phase a BUSES robem (orang Phase nthe Brolee business cas@-which Provides various solution 5 fe nee an A feasibility study is then conducted to investigate te is Sree er each solution option addressing the business aI likelihoo al recommended solution is put forward, Once the ie em anda fing is approved, a project is initiated to deliver the Saneintroduction to Project Management sd sp project Charter’ is completed, which outlines the objectives, scope and structure of the new project, and a Project Manager is appointed. The Project Manager begins recruiting a Project team and establishes a Project Office Environment, > The Initiation _phas. beginning of thé project. In this phase, the Idea for the project is.é Féd"and:elaborated> The-goal-of this phase is to examine the feasibility of the roject. In addition, decisions are made concerning who’to carryout’ the project, which party (or parties) will be involved’ and: “whether” the” project-hasan-adequate base of support among those who are involved: In this phase, the current or prospective project leader writes a proposal, which contains a description of the above-mentioned matters.. Examples of this type of project proposal include business plans" and grant applications. The prospectivé sponsors of the Project evaluate the proposal-and, upon approval, provide the necessary financing. The project officially begins at the time of approval. Questions to be answered in the initiation phase include the following: * Why this project? ° ¢ Is it feasible? ¢ Who are possible partners in this project? * What should be the results? * What are the boundaries. of this project (what is outside the scope of the project)? Idea and needs are to be examined in light with the objectives and constraints of a project. In beginning, a number of projects are identified and all the Projects are screened with respect to entrepreneurs needs and objectives, their priority and risk taking capability. The entrepreneur shortlists some Projects keéping into mind organizational goals, mission, economical needs of people, available resources, their uses and rational priorities. For identification of project and. screening. of project an entrepreneur should Kesp following points in mind: 1. Scopé”and potential of new enterprises. @ OF existing Industries, port on input and output of different industries. 4. Soci rEconomicReport,-and F ity Analysis: In feasibility analysis, the entrepreneurs convince themseives that they are preceding on safe assumptions.210 Project Management Therefore, the feasibility of the project Is considered according to the following aspects: (i) Technical feasibility R * Technology hired is appropriate or not * — Availability of Plant and Machinery * Adoptability in the given conditions. Emphasis is upon whether the technology being hired is appropriate or not, the availability of plant, machinery equipments, and whether they are adoptable in the given conditions or not. (ii) Financial feasibility : Emphasis is upon whether the-required finance is available, the utilization of funds, minimization of costs, etc. « Is the required finance available? * — Effective utilization of funds * Minimization of Costs (iii) Managerial feasibility i -Emphasis is upon the management whether the management and staff have abilities, education, training and experience inthe field of running a project or not. ¢ Whether the management and staff have abilities and required educational qualifications. * Whether the management is well versed in training and experience in the field of running the project. (iv) Social feasibility ; Emphasis is upon the social-aspects, i.e., whether the Project is going to be socially acceptable or not ~ pollution aspects, urbanization, environmental degradation or hazards, etc, are to be’taken special care of. Thus positive as well as negative aspects ofa project are thought of to determine the value and the worth j the society’s point of view. 3 ai he project from * — Socially Viable, ¢ Pollution Aspect, e Urbanization, e Environmental Degradation and e . Environment hazards. Thus, a project is evaluated from societ in view the aforesaid factors. Y'S point of view by keepingintroduction to Project Management at Therefore, during thi: rojects which are-not satist financial, Managerial and s S process of preliminary screening the fying the minimunressential, technological~ ‘oclal requirements are rejected ae The abllity to. say."No’ is.an.important quality in a project leader. Projects tend to expand once people have~become excited about them. The underlying thought is, ‘While we are at it, we might as well . projects to which people keep adding objectives and projects that keep expanding are nearly certain to go off schedule, and they are unlikely to achieve their original goals. i In the Initiation phase, the project partners enter into a temporary relationship with each other. To prevent the development of false expectations concerning the results of the project, it makes sense to explicitly agree on the type of project that is being started: * aresearch and development project; * a project that will deliver a prototype or ‘proof of concept’; * a project that will deliver a working product. The choice for a particular type of project largely determines its results. For example, a research and development project delivers a report that examines the technological feasibility of an application. A project in which a prototype is developed delivers all of the functionalities of an application, but they need not be suitable for use In a particular context e.g. by hundreds of users. A project that delivers a working product must also consider matters of maintenance, instructions and the operational management of the application. Many misunderstandings and conflicts arise because the parties that are involved in a project are not clear on these matters. Customers may expect a working product, while the members of the project team think that they are developing a prototype. A sponsor may think that the project will produce a working piece of software, while the members of the project team must first examine whether the idea itself is technically feasible. The initiation phase essentially involves the project ‘start-up’, It is the phase within which the business problem or opportunity is identified, the solution is agreed, a project formed to produce the solution and a project team appointed.cIt is structured as follows: Business Plan: Once a business problem or opportunity has been identified, a Business Plan is prepared. This includes: * A detailed definition of the problem or opportunity. * An analysis of the potential solution options available. For each option, the potential benefits, costs, risks and issues are documented. A formal feasibility study may be commissioned if the feasibility of any particular solution option is not clear, ‘ 1ject Management Pru The recommended solution and a generic implementation plan, The Business Plan is approved by the Project Sponsor and the required funding is allocated to proceed with the project. Perform Feasibility Study: At any stage during (or after) the development of a Business Case, a formal Feasibility Study may be commissioned. Options for achieving the benefits may also be outlined in the Business Case. The Feasibility Study will also investigate whether the forecast costs are reasonable, the solution is achievable, the risks are acceptable and/or any likely issues are avoidable. Project Charter: After the solution has been agreed and funding allocated, a project is formed. The Project Charter defines the vision, objectives, scope and deliverables for the project. It also provides the organization structure (roles and responsibilities) and a summarized plan of the activities, resources and funding required to undertake the project. Finally, any risks, issues, planning assumptions and constraints are listed. Appointment of Project Team: At this point, the scope of the project has been defined in detail and the project team is @ppointed. Although a Project Manager can be appointed at any stage of the project, he/she will need to be appointed Prior to the establishment of the Project team. The Project Manager documents @ detailed Job Description for each Project role and appoints a human resource to each role based on his/her relevant skills and experience. Once the team is ‘fully resourced’, the Project Office is ready to be set-up. Setting up Project Office: The Project Office is the physical environment within which the team is based and Carries forward its che world. Regardles i fe j snvironment wil comprise flowing compare reed oe Location. mmunications (telephon: i ' See file Sona detbese storage ana se al neret | Documentation (methodology, Processes, forms and registers). | Tools (for accounting, -project Planning and risk Modeing). Perform Phase Review: At the eng of the Initiation Phase, a {I eae A thase review is performed. This is basically checkpoint to ensure hat the project has achieved its stated objectives as planned. 2S__ jntroduction to Project Management 1.13 Definition Phase After the project plan (which was developed in the initiation phase) has been approved, the project enters the second phase: the definition phase. In this phase, the requirements that,are associated. with a project result are specified as clearly as possible. This involves identifying the expectations that all of the involved parties have with regard to the project result. It is important, to identify the requirements as early in the process as possible.They can be categorized as follows: * Preconditions + Functional requirements. + Operational requirements ee * Design limitations Preconditions form the context within which the project must. be conducted. Examples include legislation, working-condition | regulations and approval requirements. These requirements cannot, be influenced from within the project. Functional requirements are requirements that have to do with the quality of the project result e.g., how energy-efficient must an automobile be or how many rooms must a new building have?. Operational requirements involve the use of the project result. e.g., after a software project has been realised, the number of malfunctions that occur must be reduced by ninety percent. Finally, design limitations are requirements involving the actual realisation of the project. e.g., the project cannot involve the use of toxic materials or international partners for whom it is unclear whether they use child Jabour. (a) Project Features:. While defining project features, the following aspects are considered: i, Customer’s requirements: « Needs + Trends + Tastes «Fashion + Capacity to pay ii. Product specifications: « Space and size * Quantity + Quality j + Components pricing 3 :Project Management lia iti, Engineering/Technological aspects: + Design * Technology * Manpower * Architecture . D, etc Ene \ ae Report: A project report is prepared by taking into consideration the following aspects: Resources - Human as well as raw material Plant Location Ws Project Capacity Technology/process: selection Project layout State of the art machinery Building construction WON ANRWN Utilities ~ fuel, power, water, etc. i Organizational Process, 10. Financial analysis. 11. Employees — availability and requirements Itis very important tha! are abl indeed invited to Collaborate phase, Nonetheless, the project result benefits i lone the when its futur are also invited. As a point of departure, it is helpful to Tiidke'a hab of organizing meetings with all concerned parties during the-d Finiti phase of a Project, $ Son Med. In addition, some [exam machines are supposed to have less environmental ae Fotocapy also meet requirements for fire safety, 7 impact; they must require the use of flame-retardane, manera: safety regulations envifonmentally friendly, As this illustration shows, which are less must be negotiated, 7 Some requirementsanteoduction to Project Management 1.15 ultimately, a list of definitive requirements are developed and resented for the approval of the project's decision-makers. Once the list has been Approved, the phase can begin. At the close of the definition phase, most of the agreements between the customer and the project team have been established. The list of requirements specifies the guidelines that the project must adhere to. The project team is evaluated according to this list. Thus, after the definition phase, the customer cannot add new requirements. Once the scope of the project has been defined in the Project Charter, the project enters the-detailed planning phase. This involves the creation of: + Project Plan (outlining the activities, tasks, dependencies and timeframes). - * Resource Plan (listing the labour, equipment and materials required). e Financial Plan (identifying the labour, equipment and materials costs). oe e = Quality Plan (providing quality targets, assurance and control measures). * Risk Plan (highlighting potential risks and actions taken to mitigate them). * Acceptance Plan (listing the criteria to be met to gain customer acceptance). »® Communications Plan (listing the information needed to inform stakeholders). : * Procurement Plan (identifying products to be sourced from external suppliers). 2 At this point the project has been planned in detail and is ready to be executed. The list of requirements that is developed in the definition phase can be used to make design choices. in this phase, one or more designs are developed, with which the project result can apparently be achieved. The project supervisors use these designs to choose the definitive design that will be produced in the project. © This is followed by the implementation phase. As in the definition phase, orice the design has been chosen, it cannot be changed in later stages of the project. For example, a project igyolved producing a number of designs, which are quite important 0 tes success of the project. A young designer on the project team jumate the designs. Although the head of the design department h#