PROJECT

MANAGEMENT
B.Tech (CSE) III / I - O.E. (III)
PROJECT MANAGEMENT - Unit 1

Introduction to Project Management, Need for Project Management

Project Lifecycle, PM phases in Lifecycle

PM Research in brief, PM today

Organization strategy and structure and culture, Format of Organization

Structure

Stakeholder management

Organization culture, Creating a Culture for PM

PM Principles
 What is a Project?

A project is a temporary work plan devised to achieve a specific

objective within a specified period of time to bring about
beneficial change or added value.

Project is a scientifically evolved work plan devised to achieve a

specific objective within a specific period of time.

A project is a temporary and one time endeavor undertaken to create a unique product or service.

A project is a blue for print action oriented activities of an organization. A project reflected the plan for
action in its totality. The project has beginning middle and an end.
 What is a Project?
Other Definitions…..
A temporary organisation that is created for the purpose of
delivering one or more business products according to a specified
Business Case.

Project is defined as temporary but interrelated tasks undertaken

to give a unique product or service or result.

An individual or collaborative enterprise that is carefully planned and designed to achieve a

particular aim

A project can be defined as a complex of non-routine activities that must be completed with a set
amount of resources and within a set time limit.

Ex: Launching a new product, Constructing a building, Hosting a party,

Designing a system, Going for a tour, etc.
Goals of a Project
 Goals of a Project

 To complete the project within the allotted (or budgeted) funds.

 To complete the project within the scheduled time limit.
 To execute the project in such a way that the project meets the
quality standards.
 To ensure that the project is completed to the satisfaction of the
end users.
 Avoiding unproven equipments
 CHARACTERISTICS OF PROJECT:

“ •
•
•
•
Realistic
Limited in Time and Space
Unique
Have clear Objectives
• Single-time Activity
• Includes risk & Uncertainty
• Have Life Cycle
• Customer Specific Nature
• Involve People not
Procedures
• Require Evaluation
• Aimed at Optimality
• Flexibility
• Response to Environment
What is Management?
Management defined as all the activities and tasks undertaken for archiving goals by continuous
activities like; planning, organizing, leading and controlling.

What is Project Management?

Project management is the discipline of planning, organizing and managing resources to bring about the
successful completion of specific project goals and objectives.

According to Project management institute, “Project management is the application of knowledge,

skills, tools and techniques to project activities in order to meet or exceed stakeholder needs and
expectations.”

Project management is the discipline of organizing and managing resources in such a way that these
resources deliver all the work required to complete a project within defined scope, time, and cost
constraints.
Various Definitions of Project Management

“The leadership role which plans, budgets, coordinates, monitors and controls the operational contributions of
property professionals, and others, in a project involving the development of land in accordance with a client’s
objectives in terms of quality, cost and time.”

“A controlled process of initiating, planning, executing, and closing down a project.”

“Both a process and set of tools and techniques concerned with defining the project’s goal, planning all the work
to reach the goal, leading the project and support teams, monitoring progress, and seeing to it that the project is
completed in a satisfactory way.”

“The application of modern management techniques and systems to the execution of a project from start to finish,
to achieve predetermined objectives of scope, quality, time and cost, to the equal satisfaction of those involved.”

“The methods and disciplines used to define goals, plan and monitor tasks and resources, identify and resolve
issues, and control costs and budgets for a specific project.”

“Approach used to manage work with the constraints of time, cost and performance targets.”
What does a Project Manager do?

Build the Plan Assemble the Team

Assign the Tasks Leading the Team Managing the Budget

Managing Timelines Engaging Stakeholders Handover the Project Document the Process
Need for Project Management:

• Defines a plan and organizes chaos

• Establishes a schedule and plan
• Enforces and encourages teamwork
• Maximizes resources
• Manages Integration
• Controls cost
• Manages change
• Managing quality
• Retain and use knowledge
• Learning from failure
 Project Definition: Project Life Cycle
Project Constraints &
Problem statements

Monitoring, Detailed Planning:

Controlling, Closure Estimation &
& Review Scheduling

Project Team:
Acquisition, Development
& Management
Project Management in Life Cycle

Planning:
Initiation:
• Create a Project plan
• Undertake a feasibility Study
• Create Workflow Diagrams
• Identify scope
• Estimate Budget & Create a
• Identify Deliverables
• Identify Stakeholders, Financial Plan
• Gathering resources
Constraints
• Anticipating risks and quality
• Outline priorities
• Develop a Business case roadblocks
• Submit a Project Proposal for
approval
Project Management in Life Cycle - Cont….

Closing:
Execution:
• Analyze Project performance
• Create Tasks & Organize
• Analyze Team performance
workflows
• Document project closure
• Brief team members, tasks
• Conduct post-implement
• Communicate with team
issues
members, clients, Mgt.
• Monitor Quality of work
• Manage Budget
• Adjust tasks, goals &
deadlines
Project Management Today
An Integrative Approach – Cont....

Technical Project Management:

• Technical Knowledge
• Manage costs
• Schedule Management
• Risk Management
• Data Gathering
• Lifecycle Management
• Etc.

Leadership: Strategic and Business Management:

• Trusted Leader • Manage several projects at once
• Manage Teams scattered • Manage operational functions
geographically • Strength & Weakness analysis
• Conflict Management • Ready for ever-changing Market conditions
• Coaching, Mentoring • Communicate with customers
• Motivate team members • Legal requirements
• Winning as a team • Stakeholder management
• Etc. • Etc.
Organizational Strategy
Organizational strategies sum up all of the actions you intend to take in order to achieve your long-
term business goals.
some common reasons why organizational strategies fail:

• Lack of understanding of individual, team, and organization capabilities

• Insufficient resources and assets to actually execute the strategy
• Inadequate time allocation to the tasks involved
• Poor financing decisions (failure to appreciate cash-flow needs or under-budgeting)
• Insufficient control and project planning

Strategic plans are written by one group of managers, projects selected by another group, and
projects implemented by another, which leads to conflict, confusion, wastage of
organizational resources and frequently an unsatisfied customer.

Projects are becoming the tools of implementing the business strategy of an organisation.
Every project in an organisation should contribute to its strategic plan. Strategic alignment
of projects is of major importance to conserving and effective use of organization resources.
Organizational Structure
Organizational structure defines the manner in which the roles, power, authority, and
responsibilities are assigned and governed, and depicts how information flows between the
different levels of hierarchy in an organization.

One of the main objectives of the structure is to reduce uncertainty and confusion that typically
occurs.
A properly designed project organization chart is essential to project success.

Its main reason is to create an environment that fosters interactions among the team members
with a minimum amount of disruptions, overlaps and conflict.

Some of the factors need to be considered are −

• The size of the organization

• Nature of the business
• The objectives and the business strategy to achieve them
• The organization environment
Types of Organizational Structure
Functional • Employees are functionally grouped based on
expertise
• High degree of specialization
• Communication, across departments through the
department heads
• Allow the employees to delve deep into their field

Limitations:
• Has the potential to create barriers between different
functions
• It can be inefficient if the organization has a variety of
different products or target markets.
• The barriers created between departments can also
limit peoples' knowledge and communication with
other departments
Types of Organizational Structure – Cont...
Product-based
• Each division within the organization is dedicated to a
particular product line
• Ideal for organizations with multiple products
• Each product category is considered a separate unit
and falls within the reporting structure of an executive
who oversees everything related to that particular
product line.
• Promotes depth of understanding within a particular
product area and also promotes innovation

Limitations:
• Requirement of strong skills specializing in the
particular product
• It could lead to functional duplication and potential loss
of control
• Each product group becomes a heterogeneous unit in
itself
Types of Organizational Structure – Cont...

Market-based • The divisions of an organization are based around

markets, industries, or customer types
• Ideal for an organization that has products or services
that are unique to specific market segments
• Keeps the business constantly aware of demand
changes among its different audience segments

Limitations:
• Too much autonomy within each market-based team
can lead to divisions developing systems that are
incompatible with one another.
• Divisions might also end up inadvertently duplicating
activities that other divisions are already handling.
Types of Organizational Structure – Cont...
Divisional / Geographical

• Each division is established based on geography

• Divisions can include territories, regions, or districts
• Best-suited to organizations that need to be near
sources of supply and/or customers
• allows each geographical division to make decisions
from more diverse points of view

Limitations:
• it reduces the overall efficiency of the organization,
since geographical divisions duplicate both activities
and infrastructure.
• Another main challenge is that it tends to be resource
intensive as it is spread across and also leads to
duplication of processes and efforts.
Types of Organizational Structure – Cont...
• Are designed around the end-to-end flow of different
Process-based processes
• Considers not only the activities employees perform,
but also how those different activities interact with one
another
• Is ideal for improving the speed and efficiency of a
business
• Is best-suited for those in rapidly changing industries

Limitations:
• Can erect barriers between the different process
groups.
• This leads to problems communicating and handing off
work to other teams and employees
Types of Organizational Structure – Cont...
Matrix
• Doesn't follow the traditional, hierarchical model
• All employees (represented by the green boxes) have
dual reporting relationships
• There is a functional reporting line (shown in blue) as
well as a product- based reporting line
• It can provide both flexibility and more balanced
decision-making

Limitations:
• Complexity
• The more layers of approval employees have to go
through, the more confused they can be
• Confusion can ultimately cause frustration
Stakeholders are any group or individuals who have an interest in or are impacted by the project and can be divided
into two main areas, primary and secondary stakeholders. A stakeholder is either an individual, group or
organization.
Primary stakeholders are those directly involved with the project and the scope that the project entails.
Secondary stakeholders are part of the environment of the project, i.e. they have an influence on the project but are
not directly part of it.
 STAKEHOLDER MANAGEMENT

The Project Stakeholder Management area has four

processes:
1. Identify Stakeholders
Name each stakeholder and determine their interest and what
information they will require
2. Plan Stakeholder Engagement
Understand the level of interest, influence and commitment of
the stakeholder to plan appropriately to manage them.
3. Manage Stakeholder Engagement
Execute according to the stakeholder management plan and ensure
their needs are met.
4. Monitor/Control Stakeholder Engagement
Reviewing, gathering and even asking stakeholders, how they feel
about the project
Organization Culture:

Organizational culture is the collection of values,

expectations, and practices that guide and inform the
actions of all team members.

Organizational culture affects all aspects of your

business, from punctuality and tone to contract terms
and employee benefits.

An organization's culture is based on values derived

Why it Matters....?
from basic assumptions about the following:
• Defines Company’s internal & external identity
• Human nature
• Defines Company’s Core values
• The organization's relationship to its environment
• Increases Employee Engagement
• Appropriate emotions
• Decreases Employee Turnover
• Effectiveness
• Increses Productivity
• Etc..
Creating a Culture for Project Management

The six principles are:

1. Define the job in detail.

2. Get the right people involved.
3. Estimate time and costs.
4. Break the job down.
5. Establish a change procedure.
6. Agree on acceptance criteria.

Creating a project management culture in organizations takes time and it requires leaders
with passion, persistence and patience.
Project Management - Principles

1. Formal Structure
2. Project Sponsor
3. Project Objective and Goals
4. Budgeting
5. Scheduling and Estimating
6. Define Team Roles and Responsibilities
7. Define Milestones
8. Management of Project Changes
9. Accountability and Responsibility
10. Risk Management
11. Retrospect and Measure Success