Unit - I Basics of Project Management

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UNIT – I

Basics of Project Management


Contents

• Introduction

• What is Project

• Features of Project

• Importance/Need of the Project


Introduction

• A project is a unique venture with a beginning and end, conducted by people


to meet established goals within parameters of cost, schedule, and quality.

• Projects [are] goal-oriented, involve the coordinated undertaking of


interrelated activities, are of finite duration, and are all, to a degree, unique.

• [A project is] [o]rganized work toward a predefined goal or objective that


requires resources and effort, a unique (and therefore risky) venture having a
budget and schedule
What is a Project?

A project can be considered to be any series of activities and tasks that:

• Have a specific objective to be completed within certain specifications


• Have defined start and end dates
• Have funding limits (if applicable)
• Consume human and nonhuman resources (i.e., money, people, equipment)
• Are multifunctional (i.e., cut across several functional lines)
Project Management by PMBOK

Project Management Body of Knowledge defined Project as “a temporary


endeavor undertaken to create a unique product, service, or result”
The various elements of projects, as identified by these set of definitions:
• Projects are complex, one-time processes.
• Projects are limited by budget, schedule, and resources
• Projects are developed to resolve a clear goal or set of goals.
• Projects are customer-focused.
General Project Characteristics

• Projects are ad hoc endeavors with a clear life cycle.


• Projects are building blocks in the design and execution of organizational
strategies.
• Projects are responsible for the newest and most improved products, services,
and organizational processes.
• Projects provide a philosophy and strategy for the management of change.

Contd….
General Project Characteristics Contd…..

• Project management entails crossing functional and organizational


boundaries.
• The traditional management functions of planning, organizing, motivation,
directing, and control apply to project management.
• The principal outcomes of a project are the requirements within the
constraints of technical, cost, and satisfaction of customer schedule
objectives.
• Projects are terminated upon successful completion of performance
objectives.
Importance/Need of the
Project
• Shortened product life cycles.
• Narrow product launch windows.
• Increasingly complex and technical products.
• Global markets.
• An economic period marked by low inflation.
Project Life Cycle
A project life cycle refers to the stages in a project’s development. Life cycles
are important because they demonstrate the logic that governs a project.

Phases in Project Life Cycle:

• Conceptualization
• Planning
• Execution
• Termination
Project Life Cycle
Project Life Cycle
Phases in Project Life Cycle
Phase I: Conceptualization refers to the development of the initial goal and technical
specifications for a project. The scope of the work is determined, necessary resources
(people, money, physical plant) identified, and important organizational contributors
or stakeholders signed on.
Phase II: Planning is the stage in which all detailed specifications, schematics,
schedules, and other plans are developed. The individual pieces of the project, often
called work packages, are broken down, individual assignments made, and the process
for completion clearly delineated. For example, in planning our approach to complete
the term paper, we determine all the necessary steps (research, drafts, editing, etc.)
in the process
Phases in Project Life
Cycle
Phase III: During execution, the actual “work” of the project is performed, the
system developed, or the product created and fabricated. It is during the execution
phase that the bulk of project team labor is performed.

Phase IV: Termination occurs when the completed project is transferred to the
customer, its resources reassigned, and the project formally closed out. As specific
sub-activities are completed, the project shrinks in scope and costs decline rapidly
Organizational Structure, Strategy & Culture
Organizational Structure:

The word structure implies organization. People who work in an organization are
grouped so that their efforts can be channeled for maximum efficiency

An organizational structure defines how activities such as task allocation, coordination,


and supervision are directed toward the achievement of organizational aims.
Organizational structure affects organizational action and provides the foundation on
which standard operating procedures and routines rest.
Organizational Structure, Strategy & Culture
Key Elements of Organization Structure:

1.Organizational structure designates formal reporting relationships, including the


number of levels in the hierarchy and the span of control of managers and
supervisors.
2.Organizational structure identifies the grouping together of individuals into
departments and departments into the total organization
3.Organizational structure includes the design of systems to ensure effective
communication, coordination, and integration of effort across departments
Organizational Structure, Strategy & Culture

Forms of Organization Structure:


Organizations can be structured in an infinite variety of ways, ranging from highly
complex to extremely simple. What is important to understand is that typically the
structure of an organization does not happen by chance; it is the result of a reasoned
response to forces acting on the firm
1. Functional organizations—Companies are structured by grouping people performing
similar activities into departments.
2. Project organizations—Companies are structured by grouping people into project
teams on temporary assignments.
3. Matrix organizations—Companies are structured by creating a dual hierarchy in which
functions and projects have equal prominence
Organizational Structure, Strategy & Culture

Organizational Strategy:
strategic management is the science of formulating, implementing, and evaluating
cross-functional decisions that enable an organization to achieve its objectives.

•Developing vision statements and mission statements


•Formulating, implementing, and evaluating
•Making cross-functional decisions
•Achieving objectives
Stakeholder Management
Organizational research and direct experience tell us that organizations and project
teams cannot operate in ways that ignore the external effects of their decisions. One way to
understand the relationship of project managers and their projects to the rest of the
organization is through employing stakeholder analysis.
stakeholder analysis is a useful tool for demonstrating some of the seemingly
irresolvable conflicts that occur through the planned creation and introduction of any new
project. Project stakeholders are defined as all individuals or groups who have an active
stake in the project and can potentially impact, either positively or negatively, its
development. Project stakeholder analysis, then, consists of formulating strategies to
identify and, if necessary, manage for positive results the impact of stakeholders on the
project.
Stakeholder Management

1.Identifying Project Stakeholders


2. Managing the Stakeholders
• Assessing the Environment
• Identify the goals of Principal actors
• Assess your own capabilities
• Define the problem
• Develop solutions
• Test and refine the solutions
Project stakeholder relationships
Project
organizat External
Other ion Environm
Functional ent
Managers

Top
Clients Project Manager Manageme
nt

Project
Accountant Team
Organizational Structure, Strategy & Culture
Organization Culture:

The third key contextual variable in how projects are managed effectively is that of
organizational culture. So far, we have examined the manner in which a firm’s strategy affects
its project management, and how projects and portfolios are inextricably tied to a company’s
vision and serve to operationalize strategic choices.
Structure constitutes the second piece of the contextual puzzle, and we have demonstrated
how various organizational designs can help or hinder the project management process. an
organization’s culture and its impact on managing projects. One of the unique characteristics
of organizations is the manner in which each develops its own outlook, operating policies and
procedures, patterns of thinking, attitudes, and norms of behavior
Organization Culture

One of the unique characteristics of organizations is the manner in which each develops
its own outlook, operating policies and procedures, patterns of thinking, attitudes, and
norms of behavior. These characteristics are often as unique as an individual’s fingerprints
or DNA signature; in the same way, no two organizations, no matter how similar in size,
products, operating environment, or profitability, are the same
One of the original writers on culture defined it as “the solution to external and internal
problems that has worked consistently for a group and that is therefore taught to new
members as the correct way to perceive, think about, and feel in relation to these
problems.”
Key elements of Organization Culture

• Unwritten

• Rules of behaviour

• Held by some subset of the organization

• Taught to all new members


How do cultures form

When it is possible to view two organizations producing similar products within the
context of very individualistic and different cultures, the question of how cultures
form gets particularly interesting.
• Technology
• Environment
• Geographical Location
• Reward Systems
• Rules and Procedures
• Key organizational Members
• Critical Incidents

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