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Introduction to Project Management

Introduction
Realization of these objectives requires systematic planning and careful implementation. To this
effect, application of knowledge, skill, tools and techniques in the project environment, refers to
project management. Project management in recent years has proliferated, reaching new heights of
sophistication. It has emerged as a distinct area of management practices to meet the challenges of
new economic environment, globalization process, rapid technological advancement, and quality
concerns of the stakeholders.

Project Definition
Project in general refers to a new endeavor with specific objective and varies so widely that it is very
difficult to precisely define it. Some of the commonly quoted definitions are as follows. Project is a
temporary endeavour undertaken to create a unique product or service or result. (AMERICAN
National Standard ANSI/PMI99-001-2004) Project is a unique process, consist of a set of coordinated
and controlled activities with start and finish dates, undertaken to achieve an objective confirming to
specific requirements, including the constraints of time cost and resource.

Examples of project include developing a watershed, creating irrigation facility, developing new
variety of a crop, developing new breed of an animal, developing agro processing centre,
Construction of farm building, sting of a concentrated feed plant etc. It may be noted that each of
these projects differ in composition, type, scope, size and time

Project Characteristics

Despite above diversities, projects share the following common characteristics.

 Unique in nature.
 Have definite objectives (goals) to achieve.
 Requires set of resources.
 Have a specific time frame for completion with a definite start and finish.
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 Involves risk and uncertainty.

 Requires cross-functional teams and interdisciplinary approach.

Project Performance Dimensions

Three major dimensions that define the project performance are scope, time, and resource. These
parameters are interrelated and interactive. The relationship generally represented as an equilateral
triangle. The relationship is shown in figure 1.

It is evident that any change in any one of dimensions would affect the other. For example, if the
scope is enlarged, project would require more time for completion and the cost would also go up. If
time is reduced the scope and cost would also be required to be reduced. Similarly any change in
cost would be reflected in scope and time. Successful completion of the project would require
accomplishment of specified goals within scheduled time and budget. In recent years a forth
dimension, stakeholder satisfaction, is added to the project. However, the other school of
management argues that this dimension is an inherent part of the scope of the project that defines
the specifications to which the project is required to be implemented. Thus the performance of a
project is measured by the degree to which these three parameters (scope, time and cost) are
achieved. Mathematically Performance = f (Scope, Cost, Time)

Project management
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DEPARTMENT OF INFORMATION TECHNOLOGY

Project management is a distinct area of management that helps in handling projects. It has three
key features to distinguish it from other forms of management and they include: a project manager,
the project team and the project management system. The project management system comprises
organization structure, information processing and decision making and the procedures that
facilitate integration of horizontal and vertical elements of the 7 project organization. The project
management system focuses on integrated planning and control.

Project management is “the application of knowledge, skills, tools and techniques to project
activities to meet project requirements.

Benefits of Project Management Approach

The rationale for following project management approach is as follows

 Project management approach will help in handling complex, costly and risky assignments by
providing interdisciplinary approach in handling the assignments.
 Project management approaches help in handling assignments in a specified time frame with
definite start and completion point’s .Example handling customer orders by Industries
involved in production of capital goods.
 Project management approaches provide task orientation to personnel in an Organization in
handling assignments. Example: Organizations in IT sector handling software development
assignments for clients.

Stage of project
1. Projects are divided into six stages: Definition.
2. Initiation.
3. Planning.
4. Execution.
5. Monitoring & Control.
6. Closure.
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Each project stage is characterised by a distinct set of activities that take

the project from the first idea to its conclusion. Each stage is equally
important and contributes to the project's overall success.

1. Definition
Before a project starts, the project manager must define the project goals,
objectives, scope, risks, issues, budget, timescale and approach. This must
be communicated to all the stakeholders to get their agreement. Any
differences of opinion must be resolved before work starts.

2. Initiation
This stage is perhaps the most critical stage of any project as it sets the
terms of reference for running the project. If this is not done well, the
project will have a high probability of failure. The initiation stage is where
the business case is declared, the project's scope is decided, and
stakeholder expectations are set. Time spent planning, refining the
business case and communicating the expected benefits will help improve
the probability of success. It is tempting to start work quickly, but a poor
initiation stage often leads to problems and even failure.

3. Planning
The key to a successful project is planning. Creating a project plan is the
first task when undertaking any project. However, many people fail to
realise the value of a project plan in saving time, money and avoiding many
other problems. Often project planning is ignored in favour of getting on
with the work.

4. Execution
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This stage is where the work to deliver the product, service or wanted result
is carried out. Most of the work related to the project is realised at this
stage and needs complete attention from the project manager.

5. Monitoring & Control

Once the project is running, the project manager must keep control. The
project manager can achieve this by regularly reporting progress, issues,
risks and constantly checking the business case to ensure that the project
team will deliver the expected benefits and that the benefits are still valid.

6. Closure
Many projects do not have a clear endpoint because there is no formal
sign-off. Often neglected, it is essential to ensure the project is closed
correctly. Getting the customers' agreement that the project has ended is
vital, as an understanding that the project team will do no more work.
Once closed, the project manager should review the project and record the
good and bad points to help them repeat successes and avoid failures in
future projects.
Note: A project that is not closed will continue to consume resources.

What is a work breakdown structure (WBS)?

A work breakdown structure (WBS) is a project

management system that breaks projects into smaller,
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more manageable components or tasks. It is a visual tool

that breaks down the entire project to make it easier to
plan, organize, and track progress. A WBS assigns each
task a unique identifier and then places them within a
hierarchical structure that shows the relationship between
each task and its related deliverables.

The main goals of a WBS are to provide a clear

understanding of the project scope, identify all the work
that needs to be done, and power effective project
planning and management.

Characteristics of a WBS
There are two distinct approaches to creating a WBS that
you can choose from — deliverable based (which focuses
on individual tasks or parts of the project scope) or phase
based (which breaks down projects by timeline).

Each WBS will look slightly different — depending on your

existing workflow, the size of your team, and the type of
project you’re working on. But there are a number of
common characteristics that you’ll find in most work
breakdown structures.

 Hierarchical structure. The WBS is a hierarchical

decomposition of a project into smaller, more
manageable components. The top level of the
hierarchy represents the project’s major deliverables,
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while the lower levels break down each deliverable

into smaller, more manageable tasks.
 Unique identifier. Each component of the WBS is
assigned a unique identifier, such as a number or
code, to enable tracking, monitoring, and control of
the project work.
 Defined scope. The WBS defines the project scope
by identifying all the tasks that need to be completed
to accomplish the project objectives. This enables
project managers to plan, organize, and control the
project work effectively.
 Visual representation. The WBS is typically
presented as a graphical representation, such as a
tree diagram, to make it easier to understand and
communicate.

WBS examples
There are a number of formats that a WBS can take, but
here are a few examples to get you started:

 WBS spread sheet. WBS spreadsheets are helpful

invisually representing the ordering of different tasks
or project activities during project planning.
 WBS flowchart. Expressing a WBS as a flow chart
makes it easy to see all of the components of the
whole project separated by category, team, or project
stage.
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DEPARTMENT OF INFORMATION TECHNOLOGY

 WBS list. It can also be useful to express your WBS as

a list of tasks or deadlines to monitor progress from a
high level.
 WBS Gantt chart. Using a Gantt chart to express
your WBS allows you to get a visual representation of
the entire timeline of your project.

What is project time management?

Project time management refers to the way a project manager sets up a
strategy in order to allocate the right amount of time to each task and decide
on deadlines for project phases and delivery dates.

The aim of effective project time management is to stick to the schedule and
bring projects to completion on time.

Since time doesn’t wait for anyone and it just keeps going forward, time
management takes on even more significance.

Why is project time management important?

Project time management is one of the ten knowledge areas in a Guide to the
Project Management Body of Knowledge (PMBOK® Guide).

If time is not properly handled within a project, both scope and cost — the 2
other pillars of project management — start to crack and shake.
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Project managers are responsible for managing their own time and that of
their team(s). Stakeholders, both internal and external, expect the schedule to
be met and every task to run like clockwork (which is, to be honest, almost
never the case).

Careful project time management enables realistic time planning and prevents
tight deadlines. What’s more, a precise timeline for every bit of the project life
cycle reflects well on your team and their productivity.

What Is Project Cost Management?

Project cost management is the way that you estimate and allocate financial

resources to any given project. It’s a process that looks to manage and control

costs so that you can fully understand your project’s financial status. Good

project cost management will help project managers track and foresee expenses

and make adjustments to the project as needed to fulfill its requirements.

Benefits of Cost Management

There are key benefits to effective cost management of company projects
that include:

 Keeps projects within budget parameters

 Reduces risk of unforeseen costs
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 Helps managers plan ahead

 Can reduce the costs of a project when managed properly
 Tracks project progress
Challenges of Cost Management
Project cost management has certain challenges that it faces:

 A lack of financial resources can set limitations on labour or materials

 Forecasting can be inaccurate and lead to overruns and a decrease in
overall project profitability
 The use of outdate technology can hinder managers when overseeing
projects. The best project management software helps managers stay on
top of all aspects of the project.

What is project quality management?

Project quality management is the process of continually
measuring the quality of all activities and taking corrective
action until the team achieves the desired quality. Quality
management processes help to:

 Control the cost of a project

 Establish standards to aim for
 Determine steps to achieve standards

Effective quality management of a project also lowers the

risk of product failure or unsatisfied clients.

Project quality management plan.

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Most project managers intend to create the best possible

product or service. But even the most skilled, educated
teams, with the most modern tools, may fail without the
right project quality management plan in place.

Measuring quality may seem like something you can’t do

until after the project is complete. However, project quality
management should be planned from the beginning
and monitored throughout with these three quality
management processes:

 Quality planning
 Quality assurance
 Quality control

Quality planning.
A good quality management plan starts with a clear
definition of the goal of the project. First, be clear on what
the product or deliverable is supposed to accomplish. Then,
ask yourself:

 What does it look like?

 What is it supposed to do?
 How do you measure customer satisfaction?
 How do you determine whether the project was
successful?
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Answering these questions and others will help you identify

and define quality requirements, allowing you to discuss
the approach and plans needed to achieve those goals.

 Assessing the risks to success

 Setting high standards
 Documenting everything

Quality assurance.
Quality assurance provides evidence to stakeholders that
all quality-related activities are being done as defined and
promised. It ensures safeguards are in place to guarantee
all expectations regarding quality outputs will be met.

Quality assurance is done to the products and services

delivered by a project, as well as the processes and
procedures used to manage the project. The team can do
this through systems such as a process checklist or a
project audit.

What is Project Human Resource Management?

Project human resource management describes the processes that enable the project manager to
organize and lead the project team. A subset of the project team is the project management team,
which is responsible for leadership activities in each of the five major process groups.

Part of the role of the project manager in managing the project team is to influence the team when
human resource factors may impact the project, and to ensure professional and ethical behavior at all
times when conducting project activities.
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Project human resource management includes the processes that organize, manage, and lead the
project team. The following processes and the primary goals of Project human resource management
are defined below:

 Develop human resource plan. Goal: human resource plan

 Acquire project team. Goal: project staff assignments
 Develop project team. Goal: team performance assessments
 Manage project team. Goal: updates

What Is Risk Management on Projects?

Project risk management is the process of identifying, analysing and responding to
any risk that arises over the life cycle of a project to help the project remain on track
and meet its goal. Risk management isn’t reactive only; it should be part of the
planning process to figure out the risk that might happen in the project and how to
control that risk if it in fact occurs.

A risk is anything that could potentially impact your project’s timeline, performance or
budget. Risks are potentialities, and in a project management context, if they
become realities, they then become classified as “issues” that must be addressed
with a risk response plan. So risk management, then, is the process of identifying,
categorizing, prioritizing and planning for risks before they become issues.

Risk management can mean different things on different types of projects. On large-
scale projects, risk management strategies might include extensive detailed planning
for each risk to ensure mitigation strategies are in place if project issues arise. For
smaller projects, risk management might mean a simple, prioritized list of high,
medium and low-priority risks.
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What Is Positive Risk in Project Management?

Not all risk is created equally. Risk can be either positive or negative, though most
people assume risks are inherently the latter. Where negative risk implies something
unwanted that has the potential to irreparably damage a project, positive risks are
opportunities that can affect the project in beneficial ways.

Negative risks are part of your risk management plan, just as positive risks should
be, but the difference is in approach. You manage and account for known negative
risks to neuter their impact, but positive risks can also be managed to take full
advantage of them.

There are many examples of positive risks in projects: you could complete
the project early; you could acquire more customers than you accounted for; you
could imagine how a delay in shipping might open up a potential window for better
marketing opportunities, etc. It’s important to note, though, that these definitions are
not etched in stone. Positive risk can quickly turn to negative risk and vice versa, so
you must be sure to plan for all eventualities with your team.

What is project management

communication?
Project management communication encompasses the methods, channels, and
strategies employed to disseminate information relevant to a project among all its
stakeholders. This includes updates, changes, decisions, and any pertinent data that
affects the project's progress. Effective communication is the backbone of
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successful project management , ensuring that every stakeholder, from team members
to clients, is aligned in understanding, expectations, and objectives. Proper
communication minimizes misunderstandings, fosters collaboration, and ensures that
everyone is informed, engaged, and working towards the same goal.

How to create a project management

communication plan

The significance of communication in project management cannot be overstated. To

ensure effective communication throughout the project lifecycle, it's crucial to have a
structured communication plan in place. Here are the steps to create one:

1. Identify stakeholders: Determine who needs to be in the loop and

categorize them based on their involvement and information needs.
2. Define objectives: Understand what you aim to achieve with your
communications, whether it's decision-making, information dissemination,
or feedback collection.
3. Choose communication channels: Whether it's email, meetings, or
collaborative platforms, select the most suitable channels based on the
information to be shared and the audience.
4. Establish frequency: Decide how often communication needs to happen –
daily, weekly, or at specific project milestones.
5. Allocate responsibilities: Determine who will be responsible for sending
out communications and gathering feedback.
6. Feedback mechanism: Implement a system for stakeholders to share
feedback, concerns, or ask questions.
7. Review and adjust: Periodically assess the effectiveness of the
communication plan and make necessary adjustments based on the
project's evolving needs.
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