What is Project?

A project is a non repetitive (one time) activity or set of

activities spanning over a reasonable length of time and aimed
at achieving a well defined objective, scope, time and
resources. A project has a definite start and finish.

Projects are unique, transient endeavors undertaken to

achieve a desired outcome. Projects bring about change and
project management is recognized as the most efficient way of
managing such change.

Project, once completed becomes a SBU, Strategic Business

Unit.
Characteristics of a Project
• Project has a definite start and finish.

• Project consists of a well - defined collection of jobs,

activities, or tasks which when complete, mark the end of
project.

• Most jobs are related backward (predecessors) and forward

(successors)

• The jobs are ordered – i.e., they must be performed in

technological order.
Project Management – Definition
Project Management is the process of defining, planning,
monitoring, controlling, and delivering the project so that
objectives of project are realised within the constraints of time
and resources.

"Project management is the process by which projects are

defined, planned, monitored, controlled and delivered such that
the agreed benefits are realised."

Project management is the discipline of organising 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.

This property of being a temporary and a one time undertaking

contrasts with the processes or operations which are
permanent or semi permanent ongoing functional work to
create the same product or service over and over.

The management of these two systems is often very different

and requires varying technical skills and philosophy and hence
requiring the development of project management.

The foremost challenge of project management is to ensure

that a project is delivered within the defined constraints of time,
cost and quality.

From this overall challenge emanate the subsidiary challenges

like, optimised application of resources.
Characteristics of a Project
1.Unique Activities

2.Sequence of Activities

3.Interrelated Activities

4.Attainment of specific Goal

5.Specific time

6.Transience Creates Urgency

Objectives of Project
1.Performance or Scope
2.Cost
3.Time
With Safety at core.
Types of Project
1.Industrial or Non industrial projects

2.Projects based on level of technology

a. high technology
b. conventional (steel, cement etc.)
c. Low technology (SSI)

3. Projects based on size

4. Projects based on ownership (Pvt, Public, Joint)

5. Infrastructural projects
Session 2
Five Phases of Project Management
At the start of a project, the amount of planning and work
required can seem overwhelming. There may be dozens, or
even hundreds of tasks that need to be completed at just the
right time and in just the right sequence.
Seasoned project managers know it is often easier to handle
the details of a project and take steps in the right order when
you break the project down into phases. Dividing your project
management efforts into these five phases can help give your
efforts structure and simplify them into a series of logical and
manageable steps.
1.Project Initiation
2.Project Planning
3.Project Execution
4.Project Monitoring & Control
5.Project Closure
Project Initiation
Initiation is the first phase of the project lifecycle. This is where
the project’s value and feasibility are measured. Project
managers typically use two evaluation tools to decide whether
or not to pursue a project:

Business Case Document – This document justifies the need
for the project, and it includes an estimate of potential financial
benefits.

Feasibility Study – This is an evaluation of the project’s
goals, timeline and costs to determine if the project should be
executed. It balances the requirements of the project with
available resources to see if pursuing the project makes sense.
Teams abandon proposed projects that are labeled
unprofitable and/or unfeasible. However, projects that pass
these two tests can be assigned to a project team or
designated project office.
Project Planning
Once the project receives the green light, it needs a solid plan
to guide the team, as well as keep them on time and on
budget. A well-written project plan gives guidance for obtaining
resources, acquiring financing and procuring required
materials. The project plan gives the team direction for
producing quality outputs, handling risk, creating acceptance,
communicating benefits to stakeholders and managing
suppliers.
The project plan also prepares teams for the obstacles they
might encounter over the course of the project, and helps them
understand the cost, scope and timeframe of the project.
Project Execution
This is the phase that is most commonly associated with
project management. Execution is all about building
deliverables that satisfy the customer. Team leaders make this
happen by allocating resources and keeping team members
focused on their assigned tasks.
Execution relies heavily on the planning phase. The work and
efforts of the team during the execution phase are derived
from the project plan.
Project Monitoring & Control
Monitoring and control are sometimes combined with
execution because they often occur at the same time. As
teams execute their project plan, they must constantly monitor
their own progress.
To guarantee delivery of what was promised, teams must
monitor tasks to prevent scope creep, calculate key
performance indicators and track variations from allotted cost
and time. This constant vigilance helps keep the project
moving ahead smoothly.
Project Closure
Teams close a project when they deliver the finished project to
the customer, communicating completion to stakeholders and
releasing resources to other projects. This vital step in the
project lifecycle allows the team to evaluate and document the
project and move on the next one, using previous project
mistakes and successes to build stronger processes and more
successful teams.
Although project management may seem overwhelming at
times, breaking it down into these five distinct cycles can help
your team manage even the most complex projects and use
time and resources more wisely.
Parameters for Success of a Project
A project is akin to a three legged stool. If any of these legs is
not up to the mark, project is not fully successful. The three
legs of project are -
1. Scope – Deliverables as per the contract. Performance as
agreed upon in the contract.
2. Time – As agreed in the contract
3. Cost – As agreed in the contract
Degree of success of project is measured by the sum of
performance on the three counts. Each project has its
peculiarity. While Scope is most important in most cases, there
are cases where time assumes paramount importance. A
mega event, say Olympics, has no scope for time over run.
There can be minor compromises on scope and cost but not
on time. But in commercial contracts, cost and scope both
have equal importance.
Defining the scope is very important. Scope should be defined
in quantitative manner to the extent possible. Qualitative terms
in scope definition only lead to litigation. Time and cost are
functions of scope. “Big House” is as vague as it can get. Let
the client specify how many rooms of what sizes he wants.
Time and cost will be quoted accordingly. Any change in scope
at a later date will result in either extra time or cost or both. If
the scope is changed without changing time and cost then
quality may be impacted. Quality problem may be noticed
immediately or come to light in future.
Quality is hard to define, and even more difficult to specify. A
broad understanding is required with the client regarding his
quality requirements.
Thank you
Earned value analysis
(Variance analysis)
Problem no-1
Suppose there is a budgeted cost of a project at Rs 9, 00,000.
The project is to be completed in 9 months. After a month, only
10% of the project completed at a total expense of Rs 1,
00,000. The planned completion should have been 15%.
Determine how healthy the project is.

Problem no-2
A project to be completed in 12 months and the budget of the
project is Rs 100,000. Six months have passed and Rs
60000has been spent but on closer review, you find that only
40 % of the work has been completed so far. Find the CPI for
this project and deduce whether you are under budget or over
budget.
Problem no-3
A person is managing the bathroom renovation project. The
project has a budget of Rs 1500 and is 40% complete. The
project is a 3 month project and you planned to spend Rs 500
per month. Evaluate status at the end of the first month.

Problem no-4
Arjun is assigned as a project manager for a project. The
project involves constructing boundary wall around a square
piece of land .The planned cost for each side is Rs 1000 and
its estimated to take one week to construct each side .At the
end of week 1 ,the project team completed only 80 % of the
first side. What is the SPI of project after week 1.
Problem no- 5
A project has a budgeted cost of a project at Rs 900000. The
project is to be completed in 9 months. After a month, he has
completed 10% of the project at a total expense of Rs 100000.
The planned completion should have been 15%. Compute the
EV, PV, earned value management cost and schedule
variance.