23-09-2024

Term V: Project Management

Session 1: Introduction to Project Management

Prof. Rohit Gupta

Operations Management Area
Email: [email protected]

Evaluation Scheme

Component Mode Duration Weightage

Mid Term Exam Closed Book 90 Minutes 25%

End Term Exam Closed Book 120 Minutes 25%

Case presentation/ Group - -

20%
Project
- -
Quizzes 20%

Class Participation 10%

Total
100%

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Motivation

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More Examples
Project Industry Description of Failure Source
SAMS (Social Assistance Mismanagement of a welfare payment system led to
Management Sytem) Government overpayments, incorrect records, and extra opseu.org
Ontario expenses.
Poor supply chain management led to empty
Target Canada Retail shelves, low customer satisfaction, and eventual bluelinkerp.com
bankruptcy.
The project aimed to digitize medical records but
NHS IT System (UK) Healthcare was scrapped after £10 billion was spent without The Guardian
completion.
Faulty software design and insufficient testing led to
Boeing 737 MAX Aviation two fatal crashes, resulting in a global grounding of NY Times, BBC
planes.
Denver International The baggage handling system faced technical issues Project
Airport (Automated Transportation and delays, causing significant cost overruns and Management
Baggage System) inefficiencies. Institute
A series of operational failures on opening day,
Heathrow Terminal 5 Aviation BBC News
leading to canceled flights and misplaced luggage.
A case management system for the FBI was
FBI Virtual Case File Government (US) abandoned after years of development due to CIO Magazine
complexity and poor planning.

More Examples: Indian Context

Project Industry Key Issues Source

Muneerabad-
Delayed by over 15 years due to land acquisition
Mahaboobnagar Rail Railways India Tracker
and financing issues
Project
Parbati Hydroelectric Environmental clearance and land acquisition
Power Generation India Tracker
Project delays led to 14+ years of delay
Media & Corporate governance failures delayed the merger;
Zee-Sony Merger Forbes India
Entertainment board mismanagement was a key issue
Byju’s Expansion Education Financial mismanagement, failed corporate
Forbes India
Plan Technology governance, operational breakdowns, and layoffs
Delays due to poor project planning, land Project
Delhi-Gurugram
Infrastructure acquisition issues, and underestimation of traffic Management
Expressway (2007)
volumes Institute
Delays due to protests, environmental concerns,
Sardar Sarovar Dam Infrastructure The Times of India
and rehabilitation issues
Environmental and social protests, land acquisition
POSCO Steel Project Steel Industry The Times of India
issues, delayed for over a decade

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Project Management Statistics

 Over 1 in 3 (34%) projects have no baseline.

 For every $1 billion invested in the United States, $122 million was wasted due to lacking
project performance.
 75% of business and IT executives anticipate their software projects will fail.
 50% of all Project Management Offices (PMOs) close within just three years.
 Fewer than a third of all projects were successfully completed on time and on budget over
the past year.
Source :https://blog.capterra.com/surprising-project-management-statistics
 Reality of project
https://www.youtube.com/watch?v=0YBMfTorE6A&t=15s&ab_channel=onbsoftwarelabs

An Overview of Project Management

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What is a Project?

Project is defined as
 A complex, non-routine, one-time effort limited by time, budget, resources, and
performance specifications designed to meet customer needs.
 Project is a temporary endeavor undertaken to create a unique product, service or
result (PMI).

Major characteristics of a project

 Has an established objective.

 Has a defined life span with a beginning and an end.
 Typically requires involvement of several departments and professionals.
 Involves doing something that has never been done before.
 Has specific time, cost, and performance requirements.

Project Attributes

A project:
 Has a unique purpose.
 Is temporary.
 Is developed using progressive elaboration.
 Progressive elaboration is a project management approach where plans are refined and
detailed as more information is obtained.
 Requires resources, often from various areas.
 Should have a primary customer or sponsor.
 The project sponsor usually provides the direction and funding for the project.
 Involves uncertainty.

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Project and Program

Project
Definition: A project is a temporary endeavor undertaken to create a unique product, service, or result.
It has a defined start and end, specific objectives, and clearly outlined deliverables.

Characteristics

 Temporary: Has a specific start and end date.

 Unique Output: Delivers a unique product, service, or result.
 Scope: Defined and specific; focused on achieving a particular objective.
 Management: Managed by a project manager who is responsible for the success of the project.

Examples

 Construction Industry: Building a new office tower is a project. It has a clear start and end date,
specific deliverables (the completed building), and is managed by a project manager.
 Software Industry: Developing a new mobile application is a project. It involves planning,
designing, coding, testing, and launching the app, all within a defined timeframe.

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Program
Definition: A program is a group of related projects managed in a coordinated way to obtain benefits
and control not available from managing them individually. Programs are ongoing and may evolve as
business needs change.

Characteristics

 Ongoing: May not have a defined end date; continues as long as there is value.
 Multiple Projects: Consists of multiple related projects that are managed together to achieve
strategic objectives.
 Broader Scope: Focused on achieving long-term business goals and benefits.
 Management: Managed by a program manager who oversees the interdependencies and resources
across projects to align with business strategy.

Examples
 Aerospace Industry: The NASA space shuttle program is a program that included multiple
projects such as designing the shuttle, developing the launch system, and missions to space.
 Technology Industry: A company’s digital transformation program might include projects like
migrating to cloud infrastructure, implementing a new ERP system, and developing a new
customer portal.

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Comparison between Project and Program

Aspect Project Program
A temporary endeavor with a specific goal and A collection of related projects managed together for strategic
Definition
deliverables. benefits.
Broader; encompasses multiple related projects aimed at
Scope Limited and specific; focuses on one unique outcome.
achieving long-term goals.
Duration Temporary; has a defined start and end date. Ongoing; continues as long as the program delivers value.
Objectives To complete a unique product, service, or result. To achieve strategic business objectives and benefits.
Managed by a program manager who oversees
Managed by a project manager who focuses on the
Management interdependencies and alignment of projects with business
project’s scope, schedule, and budget.
strategy.
Achieving strategic objectives and maximizing benefits through
Focus Delivering specific outputs within constraints.
coordinated projects.
Less complex; involves fewer resources and More complex; involves managing multiple projects and
Complexity
stakeholders. resources.

Example A company-wide infrastructure upgrade program that includes

Building a new office tower.
(Construction) multiple construction projects across locations.
A digital transformation program that includes projects like
Example
Developing a mobile application. cloud migration, new ERP implementation, and developing
(Technology)
multiple software solutions.
Risk Risks are specific to the project and managed within its Risks are managed across the program, considering
Management scope. interdependencies and cumulative impact on strategic goals.
Change Changes are managed across the program to align with evolving
Changes are managed within the scope of the project.
Management business needs.

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Program and Portfolio

Program
Definition: A program is a collection of related projects managed in a coordinated way to achieve
benefits that would not be possible if they were managed individually. It focuses on delivering a
specific organizational outcome or goal.

Objective: The primary goal is to ensure that related projects complement each other, avoid
redundancy, and contribute toward a larger strategic goal.

Key Focus: Managing interdependencies between projects, resolving conflicts, and ensuring that the
collective outcome of the projects contributes to the overall success of the program.

Example
Boeing 787 Dreamliner
Boeing managed multiple projects (design, production, and supply chain optimization) under the
Dreamliner program, all aimed at delivering the new aircraft model. This involved integrating
various components such as fuselage, engines, and avionics, each managed as separate projects but all
contributing to the successful launch of the Dreamliner.

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Portfolio

Definition: A portfolio refers to a collection of projects, programs, and operations managed as a group to
achieve strategic business objectives. Unlike programs, the projects in a portfolio may or may not be
related but are managed collectively to balance risk, resource allocation, and strategic alignment.

Objective: The key aim is to maximize the value of the portfolio through careful selection, prioritization,
and resource allocation across multiple initiatives based on strategic goals and available resources.

Key Focus: Aligning all projects and programs with the organization's strategic objectives, optimizing
resource allocation, and ensuring the right mix of high-value and risk-balanced initiatives.

Example
Apple Product Portfolio
Apple's portfolio includes various unrelated products such as iPhones, MacBooks, and Apple Watch.
Each product development effort is a separate project or program, but collectively, the entire portfolio
aligns with Apple's overall strategy of innovation and market leadership.

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Aspect Program Portfolio

A collection of related projects managed together to A collection of projects, programs, and other work managed together
Definition
achieve strategic benefits. to achieve strategic business objectives.
Focuses on related projects with a common goal or Broader scope; includes diverse projects and programs, not
Scope
theme. necessarily related, aligned with organizational strategy.
Ongoing as long as the program delivers value or Continuous and dynamic; evolves with the organization's strategy
Duration
until the goal is achieved. and priorities.
To achieve specific strategic objectives and benefits To align investments with organizational strategy and maximize
Objectives
through related projects. overall returns.
Managed by a program manager who coordinates
Managed by a portfolio manager who oversees the selection,
Management related projects to ensure they achieve a common
prioritization, and management of all projects and programs.
goal.
Achieving synergies and benefits from managing Balancing and optimizing the portfolio to achieve strategic objectives
Focus
related projects together. and manage risks and resources.
Moderate; involves managing interdependencies High; involves managing a diverse set of initiatives with varying
Complexity
between related projects. levels of complexity and interdependencies.
A risk management program including multiple A financial services portfolio containing various programs like risk
Example
projects for compliance, fraud detection, and management, customer experience improvement, and digital
(Finance)
cybersecurity improvements. transformation, along with standalone projects.
A healthcare improvement program that includes A healthcare portfolio including programs for patient care
Example
projects for patient care, hospital expansion, and improvement, cost reduction, digital health initiatives, and regulatory
(Healthcare)
technology upgrades. compliance, plus various independent projects.
Risk Focuses on managing risks within the program and Manages risks across the entire portfolio, balancing risk and reward
Management its related projects. according to strategic priorities.
Manages changes at the portfolio level, adjusting the mix of projects
Change Manages changes within the program to keep related
and programs to align with changing business goals and market
Management projects aligned with objectives.
conditions.

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Class Exercise 1: Choose Project, Program, Portfolio

Scenario 1: A retail store is preparing for the grand opening of a new location. Many months
before they open, they begin ordering new products, preparing marketing campaigns, and
setting up the store to lead up the event.

Answer: Program
The retail store’s endeavour is a program because it is a collection of projects that are large,
long-term, general, and strategic.

Scenario 2: A large tech company is acquiring a company to add a second line of business and
reach a new customer base to increase revenue by 70%. This endeavour will require new
technical systems, building out new products and new marketing efforts.

Answer: Portfolio

This portfolio serves the long-term objectives of the organization and encompasses a range of
activities and tasks that may or may not be related.

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Scenario 3: A hospital is replacing its paper records with digital records and entering them
into an electronic medical records system. They have eight months to complete this task and
will know they are successful when digitizing all the records.

Answer: Project

This scenario is a project because it is temporary and complete when its goals are achieved.

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The Life Cycle of Projects

 All organisms have a life cycle (i.e., they are born, grow, wane, and die) … and so do
the projects.

 Some projects follow a S-shaped curve … they start slowly, develop momentum, and
then finish slowly. (Aerospace Projects; Automobile Manufacturing Projects)

 Other project follow a J-shaped curve … they start slowly , proceed slowly, and then
finish rapidly. (Start-up Projects; Digital Transformation Projects)

 The time span between the start and end of a project in which work to be carried out is
called project life cycle.

 The set of inter-related project activities carried out sequentially during the project life
cycle is called a project phase or stage.

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Project Life Cycle Stages

 Defining/Conceptualization (Starting the project)

 Planning/Development (Organizing and preparing the project)

 Executing (Carrying out the project work)

 Closing (Delivering the project)

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Project Life Cycle Stages

https://www.youtube.com/watch?v=N3N9-RLSbvo&ab_channel=KnowledgeHut

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Project Life Cycle

The Defining and Planning curves start at the same

time, at the beginning of the project. The Defining
stage is fairly short, peaks quickly, and requires a
moderate level of effort. The Planning stage builds
steadily and declines gradually; this stage requires a
somewhat higher level of effort than the Defining
stage.

The Planning stage ends shortly after the Closing

stage begins (near the end of the project). The
longest stage of the project is the Executing stage,
which begins at the same time as the Defining and
Planning stages, but starts very slowly, not kicking
into gear until after the Planning stage has peaked.

The Executing stage requires the very highest level

of effort and tapers off slowly near the end of the
project. The Closing stage begins about three-
quarters of the way through the project. Much like
the Defining stage, it is fairly short, peaks quickly,
and requires a moderate level of effort.

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Examples: Project Phases (IT industry)

 Defining
 Example: Blueprint design of the project
 Planning
 Skill-set mapping and labour force planning
 Executing
 Started developing the objects
 Delivering
 Delivering the final version of the object along with the
documents

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Example: Project Phases (Construction industry)

Source: https://theconstructor.org/construction/construction-project-life-cycle-phases/14283/

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Example: Project Phases (Automobile Industry)

 Concept and Research Phase: Idea generation and feasibility studies.

 Design and Development Phase: Detailed design and engineering.

 Prototyping and Testing Phase: Prototype creation and testing.

 Pre-production and Planning Phase: Manufacturing setup and logistics planning.

 Production and Launch Phase: Mass production and market introduction.

 Sales and Post-launch Support Phase: Sales, customer service, and feedback.

 End-of-Life and Recycle Phase: Phasing out old models and recycling.

Each of these phases is crucial in ensuring that the vehicle meets market needs, complies with
regulations, and is produced efficiently while also ensuring customer satisfaction and long-term
sustainability.

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Characteristics of Project Phases

 The work content, staffing and cost are small in the early life cycle phases. They rise to
high level in the middle phases and drop off near the closing phases.

 The level of uncertainty, or risk, to the project success is highest in the early phases of the
life cycle.

 The ability of stakeholders to influence the project is highest during the early phases and
gradually diminishes as project draws to a close.

 The cost of correction or change of scope is small at the project start and it increases very
rapidly as the project progresses.

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Start-up Project Life Cycle Stages

Source: Salamzadeh, A., & Kawamorita Kesim, H. (2015). Startup companies: Life cycle and challenges. In 4th International
conference on employment, education and entrepreneurship (EEE), Belgrade, Serbia.

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Bootstrapping
 Bootstrapping refers to a method of starting and growing a business using limited resources, often
relying on personal savings, revenue generated by the business itself, and operating efficiently without
external investment.
 Bootstrapping is an approach where founders avoid or minimize external funding, such as venture capital
or bank loans, and instead use internal cash flow or personal funds to finance the business.
 The purpose of this stage is to position the venture for growth by demonstrating product feasibility, cash
management capability, team building and management, and customer acceptance.

Examples of Bootstrapped Companies

 Mailchimp: This email marketing platform was built without
external funding and grew originally through revenue
generated by its users.
 Spanx: Founder Sara Blakely bootstrapped the company using
her own savings before it became a global brand.
 Patagonia: The outdoor clothing company was bootstrapped
by its founder, Yvon Chouinard, focusing on reinvesting
profits into the business.

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Seed Stage
 This stage is characterized by team work, prototype development, entry into market, valuation of the
venture, seeking for support mechanisms such as accelerators and incubators, and average investments to
grow the startup.
 Thus, founder seeks for support mechanisms such as accelerators, incubators and small business
development centers to accelerate the process.
 A Minimum Viable Product (MVP) concept is often developed, representing the simplest version of the
product or service that can be launched with basic functionality to test market response.
 A great number of startups fail in this stage.
Examples of Seed Stage Funding:
 Airbnb: The founders used personal funds and credit cards to create the
early version of their website. They eventually raised a small amount of seed
funding from Y Combinator to further develop their concept and scale.
 Dropbox: Dropbox focused on building an MVP and used early seed funding
from Y Combinator to develop the platform and test it with early adopters.
 Instagram: Initially developed as a simple photo-sharing app, Instagram's
seed stage involved rapid development of a prototype and gathering feedback
which helped secure initial funding and grow the user base quickly.

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Creation Stage

 Creation stage occurs when the company sells its products, enters into market,
and hires first employees.

 At the end of this stage, organization/firm is formed and corporate finance is

considered as the main choice for financing the firm.

 Venture capitals could facilitate the creation stage, by funding the venture.

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Class Exercise 2: Jugaadu Kamlesh

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Jugaadu Kamlesh

 Farmers endure some of the common problems such as back pain, neck pain and eye
irritation. while spraying chemicals or pesticides on the crops.

 Kamlesh, presented a solution that would let farmers spray pesticides, sow seeds, and
transport goods with the help of a versatile bicycle.

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Class Exercise 2: Jugaadu Kamlesh (Discussion)

https://www.youtube.com/watch?v=vqcLhrteu6M&t=332s&ab_channel=SETIndia
https://www.youtube.com/watch?v=LitEpnYMwqM

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Questions

 What are the issues that bother Jugaadu Kamlesh ?

 What are the weakness or threats to Jugaadu Kamlesh ?

 What are the future opportunities for Jugaadu Kamlesh ?

 How can you improve overall Project Management Strategy for Jugaadu Kamlesh ?

 What is the appropriate project management strategy for Jugaadu Kamlesh?

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Roles and Responsibilities of Project Manager

 Coordinating and integrating activities across multiple functional lines

 Defining and maintaining the integrity of the project
 Developing the project execution plan
 Organizing for the execution plan
 Setting targets for accomplishment of project objectives
 Negotiating with the suppliers, clients and the project members
 Directing, coordinating and controlling the project activities
 Maintaining the balance between technical and managerial project functions
 Coping with risk associated with project management

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The Challenge of Project Manager

1. Balancing the Triple Constraints

The Triple Constraints in project management—scope, time, and cost—create a constant balancing act for
project managers.

2. Managing Stakeholder Expectations

A project manager must work with a variety of stakeholders—each with different goals, interests, and
concerns. These can include clients, senior management, team members, and external vendors.
3. Handling Uncertainty and Risk
All projects involve risks, whether technical, financial, or organizational. Project managers must be proactive
in identifying potential risks early on and develop mitigation strategies.
4. Leading Diverse Teams
Project teams can be composed of people with diverse backgrounds, expertise, and personalities. Managing
such a team requires strong leadership and people skills.

5. Managing Resources Efficiently

A project manager must effectively allocate both human resources (the project team) and material resources
(equipment, software, etc.).

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6. Adapting to Change
Projects rarely go exactly as planned, and changes in scope, timelines, or objectives can disrupt
the flow of work.

7. Maintaining Communication and Collaboration

Effective communication is at the core of successful project management. The PM must ensure
that the project team, stakeholders, and clients are all on the same page.

8. Handling Multiple Projects Simultaneously

Many project managers are responsible for managing multiple projects at once, each with its
own set of challenges and deadlines.

9. Managing Conflict
Conflict is inevitable in project environments, whether it arises from resource competition,
personal differences, or unclear roles and responsibilities.

10. Adhering to Quality Standards

Delivering a project that meets or exceeds the client’s expectations in terms of quality is a
primary goal for project managers.

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