Introduction: Why Project

Management?
Chapter 1

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 Syllabus
• Unit 1(6 Sessions)
• Introduction of Project: Definitions & Characteristics
of Project, Types of Projects, Project Life Cycle.
Concepts of Deliverables, Scope of Work and
Milestones. Project Management Process:
Introduction, Tools & Techniques of Project
Management.
• Project Team and Scope of Project Management:
Characteristics of a Project Team & Project Leader,
Project Organization, and Importance of Project
Management. Case Studies
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 Introduction
• Examples of projects
– Split the atom
– Chunnel between England and France
– Introduce Windows XP

“Projects, rather than repetitive tasks, are now the

basis for most value-added in business”
-Tom Peters

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 What is a Project?
Project Process
• Take place outside the • Ongoing, day-to-day
process world activities
• Unique and separate • Use existing systems,
from normal properties, and
organization work capabilities

A project is a unique venture with a beginning

and an end, conducted by people to meet
established goals within parameters of cost,
schedule and quality.

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• Project is defined as a one-shot, time-tested, goal-directed, major
undertaking, requiring the commitment of varied skills and resources.
Meaning of Project:
• A project is a productive activity which can be analysed, appraised
and monitored independently.
Project Objectives are:
a. specific, not general
b. not overtly complex
c. measurable, tangible and verifiable
d. realistic and attainable
e. established within resource bounds
 Elements of Projects
• Complex, one-time processes

• Limited by budget, schedule, and resources

• Developed to resolve a clear goal or set of goals

• Customer-focused

• A project is a temporary endeavor undertaken to

create a unique product, service, or result.
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 General Project Characteristics (1/2)
• Ad-hoc endeavors with a clear life cycle

• Building blocks in the design and execution of

organizational strategies

• Responsible for the newest and most improved

products, services, and organizational processes

• Provide a philosophy and strategy for the management

of change

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 General Project Characteristics (2/2)
• Entail crossing functional and organization boundaries

• Traditional management functions of planning,

organizing, motivating, directing, and controlling apply

• Principal outcomes are the satisfaction of customer

requirements within technical, cost, and schedule
constraints

• Terminated upon successful completion of performance

objectives.
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 General Project Characteristics (2/2)
• Objective: Each has a specific goal to reach.

• Schedule: Point in time in which they must be accomplished.

• Complexity: Does the technology exist to achieve the project

objectives?
• Size and Nature of Task: Step-by-step plan of action.

• Resources: Labor, personnel, equipment, materials, facilities,

etc.
•

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 General Project Characteristics (2/2)
• Organizational Structure: The 'meshing' of project
requirements into the existing organization.

• Information and Control Systems: These must be

structured to handle problems through the typical lines of
authority
•

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 Process & Project Management (Table 1.1)

Process Project
1. Repeat process or product 1. New process or product
2. Several objectives 2. One objective
3. On-going 3. One shot – limited life
4. People are homogeneous 4. More heterogeneous
5. Systems in place 5. Systems must be created
6. Performance, cost, & time known 6. Performance, cost & time less
certain
7. Part of the line organization 7. Outside of line organization
8. Bastions of established practice 8. Violates established practice
9. Supports status quo 9. Upsets status quo

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 Why are Projects Important?
1. Shortened product life cycles
2. Narrow product launch windows
3. Increasingly complex and technical products
4. Emergence of global markets
5. Economic period marked by low inflation

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Project Levels:
• At the national level
• At the sector level
• At the project level
Project Classification:
a project includes all activities which are aimed at —
1. Increased production of goods and/or services,
2. Increasing the capacity of the existing projects, and
3. Increasing the productivity of these goods/services.
Projects have been classified in various ways by different authorities:
1. Quantifiable and Non-Quantifiable Projects:
A Quantifiable Projects are those in which a quantitative assessment of the benefit can be
made e.g. industrial projects . Non Quantifiable Projects are those in which
quantitative assessment of the benefit cannot be made e.g. health, education, defence.
2. Sectoral Projects
a) Agriculture & Allied
b) Irrigation & Power
c) Industry & Mining
d) Transport & Communications
e) Social Service Sector
f) Miscellaneous

3. Techno-Economic Projects
a. Factor Intensity-oriented classification: Capital or Labour intensive
b. Causation-oriented classification: Demand or raw Material based
c. Magnitude-oriented classification: Large , medium, small scale
Projects have been classified in various ways by different authorities:
4. Financial Institutions Classification
i. New Projects
ii. Expansion Projects
iii. Modernisation Projects
iv. Diversification Projects.
5. Services Projects
i. Welfare Projects
ii. Service Projects
iii. Research and Development Projects
iv. Educational Projects
The project life cycle :
• Life cycles provide a guiding point for determining
the scope and resource requirements of specific
projects.
• By outlining a project’s life cycle, many challenges
and potential pitfalls can be pinpointed. More
generally, an understanding of life cycles lends
itself to a better understanding of how projects
function within an organization and how they differ
from conventional forms of corporate processes.
 Project Life Cycles
Man Hours

Conceptualization Planning Execution Termination

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 PROJECT LIFE CYCLES
(FIGURE 1.3)

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 Project Life Cycles
A project life cycle refers to the stages in a project’s
development and are divided into four distinct phases:
•Conceptualization – development of the initial goal
and technical specifications of the project. Key
stakeholders are identified and signed on at this
phase.
•Planning – all detailed specifications, schedules,
schematics, and plans are developed.
•Execution – the actual “work” of the project is
performed.
•Termination – project is transferred to the customer,
resources
1-12 reassigned, project is closed out.
 Change during project life cycle

Client
Interest

Project
Stake

Resources

Creativity

22 Uncertainty
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 Project Life Cycles and Their Effects
Client Interest

Project Stake

Resources

Creativity

Uncertainty

Conceptualization Planning Execution Termination

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Determinants of Project Success

Client
Budget Acceptance

Success

Schedule Performance

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 Six Criteria for IT Project Success
• System quality
• Information quality
• Use
• User satisfaction
• Individual Impact
• Organizational impact

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Four Dimensions of Project Success
Importance

4
Preparing for
The Future
3
Business
2 Success
1 Impact on
Project Customer
Efficiency

Project Time
Completion

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 Developing Project Management Maturity

Project management maturity models

– Center for business practices
– Kerzner’s project management maturity model
– ESI International’s project framework
– SEI’s capability maturity model integration

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Spider Web Diagram

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Project Management Maturity
Generic Model

High
Maturity
Institutionalized,
seeks continuous
improvement

Moderate Maturity
Defined practices, training programs,
organizational support

Low Maturity
Ad hoc process, no common language, little support
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Project Elements and
Text Organization

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