UNIT-02

PROJECT
ADMINISTRATION
Essentials of Project Administration:
o Project administration is a separate organization reporting
directly to the project’s executive sponsor.
o It provides a project management service for the project teams
and relieves them of most of the planning, tracking and
reporting responsibilities.
o Project administrator responsibilities include preparing action
plan, analyzing risks and opportunities and gathering necessary
resources.
o They will work with project managers and project
coordinators ,so good communication and collaboration skills
are essential.
o Project administration is a process of execution of project activities effectively and
efficiently towards the achievements project goals.
o Execution is the process of putting the project activities into action.
o Project administrator is a professional who organizes the team members and specializes
in facilitating , reporting and analyzing projects under supervision of project manager.
Project Team:
A project team plays the vital role of designing and implementing a project. A project
team consists of a specific group of individuals.
The following are different types of a project teams.
1. Initial project team.
2. Core project team.
3. Full project team.
4. Project advisors.
5. Project stakeholders.
6. Process facilitators.
1. Initial project team: The initial project team consists of specific people
who initially conceive the idea of starting a project. The team members
are responsible for the planning and execution of the project. One of the
team members will be designated as the project manager. The project
manager will be responsible for coordinating the activities amongst the
team members.
2. Core project team: The core project team is a small group of people,
typically 3 to 8 people who are ultimately responsible for designing and
managing a project. This team consists of sponsor, client leader, expert and
internal auditor.
3. Full project team: This team consists of complete group of people
involved in designing, implementing, monitoring and controlling a project.
This team includes managers, stakeholders, researchers and other key
implementers of the project.
4. Project advisors: Project advisors are the people who are not in the
project team, but finally to whom the team members can depend for honest
feedback and counselling. Project advisor is a person who anchor the cause
of the project.
5. Project stakeholders: Project stakeholders are the individuals, groups or
institutions who have a special interest in the natural resources of the
project area.
6. Process facilitators: A process facilitator is a person who can help the
project team through the planning process. The process facilitator
understands the key elements of the process and has good facilitation skills.
The advantages of effective team are listed below,
1.Clear objective of the project from the initiation to
completion.
2. Good decision-making process, which speed up the
activities.
3. Clear roles, responsibilities and leadership, without
overlapping, ensure smooth progress.
4. Trust, co-operation, support and constructive conflict or
feedback.
5. Individual and mutual accountability for performance
results.
The disadvantages of ineffective team
1. Falling the performance level with ambiguous instruction.
2. Low levels of motivation
3. Poor communication from project manager.
4. Slow or poor decision making by team leader.
5. Confusion about responsibilities
6. Role and territory conflicts results in controversy among
team members.
Team formation: Proper care is to be taken while forming a team. The
appointment of team leader should be done after an in-depth analysis.
While selecting project team members, the following items may be kept
in mind.
1. Knowledge of political, social and economic factors.
2. Knowledge/experience of stakeholders and their concerns.
3. Experience in developing strategies.
4. Experience in implementing strategies.
5. Experience in communications and fund raising.
6. Experience in budgeting and risk assessment.
7. Should understand the psychology of the team.
PROJECT DESIGN:
Project design is the first stage in the execution of the project. Project design
is concerned with developing project scheduling techniques and
implementation of the project. It includes finding of location, construction of
buildings, procuring plant and machinery and finally execution the project.
Significance of Project design (Advantages):
1. It gives a comprehensive idea about the entire project.
2. It is a diagrammatic representation of the work plan designed to execute
the project.
3. The various activities of the project are explained in sequence to
highlight the various phases of the project.
4. It helps entrepreneurs in coordinating project activities.
5. It serves as an effective tool of planning and implementation of a project.
6. It helps managers to plan the project economically .
Work breakdown structure: WBS in short, is a technique which breaks
down a work into its components and at the same time establishes the
connections between the components.
It is constructed by dividing the project into its major parts, with each of
these being further divided into sub-parts. This is continued till a breakdown is
done in terms of manageable units of work for which responsibility can be
defined. The work breakdown structure defines what work is to be done in a
detailed manner.
To assign responsibility for the tasks to be done, the work breakdown
structure has to be integrated with the project organization structure. Work
breakdown through the hardware approach is the only natural and permanent
way of breaking work.
Performance target, schedule, budget and accountability can similarly
be fixed for any hardware element.
Advantages of the work breakdown structure:
1. Effective planning by dividing the work into
manageable elements which can be planned,
budgeted, and controlled.
2. Assignment of responsibility for work elements
to project personnel and outside agencies.
3. Development of control and information system.
Project Execution Plan:
Project execution plan refers to the exercise of matching the project
hardware and software executing agencies so that valuable work
system gets emerges.
It has four sub plans
1.Contracting Plan
2.Work Packing Plan
3.Organisation Plan
4.System and Procedure Plan
 Contracting Plan

 First step in the preparation of project execution plan

 To develop self-regulating systems, it is necessary to contract out those areas
where the owner's company does not have inherent competence.
 Which type of contract to choose, which type of reimbursement to make, what
conditions of contracts to stipulate, and what payment terms to offer, are the
issues that must be examined during this phase of the project.
Work Packing Plan

 Second step in the project execution plan.

 The small division of work where it still retains the characteristics of project.
 When a project is devided into systems and systems are divided into sub system
and further divided into components . Therefore the work at this stage is
considered as package.
 A work package is a group of related tasks within a project. Because they look
like projects themselves, they are often thought of as sub-projects within a larger
project. Work packages are the smallest unit of work that a project can be broken
down into when creating the Work Breakdown Structure (WBS)
Organisation Plan

 After deciding the number of contracts and their scope of work , the owner is
now is in the position to form an organization to be adopted.
 He can choose his own arrangements depending on project size ,
location,complexiety, work packages ,type and number of contracts
 An Organization Plan is basically a “to do” list for an organization. It lists out
the plan of work, programs, and organizational growth over a period of time,
the tasks involved, who is responsible for them, and when they'll be done.
System and Procedure Plan

 More importance has to be given to routine systems and procedure so that

no intervention is required in the day-to-day operation of a system. There
are at least seven routine sub-systems of project management for which
appropriate procedures can be designed right at the start of the project
implementation. These sub-systems are:
 1. Contract management
 2. Configuration management
 3. Time management
 4. Cost management
 5. Fund management
 6. Materials management
 7. Communication management
Project Procedure Manual

 A project procedure manual is to be prepared in such a way that the

interacting agencies are able to see their roles and mutual relationships
in achieving the common goal.
 Preparation of a project procedure manual should start with each project
management sub system.
 A system break-up has to be carried out on each sub-system to identify
the need for procedure write-ups.
 While carrying out system break-up the question to be asked is what the
system must achieve and what contributes to the effective functioning of
each of the elements. The project procedure manual gives a complete
picture about the system.
Project Diary

 The Project Diary is a summation of all of the daily activities on a project.

 It will represent the status of the project each day to anyone reviewing it in
future years.
 A project manager would be holding several meetings with vendors,
contractors etc, many decisions are taken in these meetings and many
commitments are made. Information derived on these meetings; decisions
taken have to be properly recorded in the project diary.
 . Information noted in the diary will help to justify the decisions at later
date. All project managers have to maintain project diaries, for efficient
management of project.
Project Execution System

 The Project Execution System consists of the processes performed to

complete the work defined in the project management plan to satisfy the
project specifications.
 The successful execution and administration of project requires, direction,
organisation, co-ordination, communication and control all at the same time
but in varying proportion.
Project Direction
 Project Direction is the process of implementing and carrying out
of those approved plans that are necessary to achieve objectives.
Project Direction involves steps as follows.
 1. Staffing – Seeing that a professional person is chosen for every
position.
 2. Training – Training individuals and groups on how to fulfil
their duties and responsibilities.
 3. Supervising – Giving day-to-day instructions,
guidance and discipline as required so that they can
fulfil their duties and responsibilities.
 4. Delegating – Assigning work, responsibility, and
authority so that others can make maximum utilization
of their abilities.
 5. Motivating – Encouraging others to put more effort
into the successful completion of the projects.
 6. Counselling – Solve the personal problems and holding
private discussions about how he might do better work.
 7. Coordinating – Bring synchronization between different
activities.
Communication in a Project
 For a successful direction a two-way communications
system is essential.
 The entire process of direction, co-ordination and control
in a project revolves around communication.
 Communications has two dimensions physical and
mental.
 Effectivecommunication is often the foundation of
successful projects.
 Good communication can unite team members and
stakeholders to a project’s strategy, objectives and budget.
 It can also enable everyone involved in the project to understand his or her roles,
which may make them more likely to support the project. Without effective
communication, projects can incur more risk and fail to meet desired outcomes.
 Physical communication: Passing a memo, drawing, data, instruction, information,
etc. are the physical aspects of communication, which can be easily achieved.
 Mental communication: Understanding the role expectation, empathy, language
barriers, listening skills etc., are the mental aspects of communication which may
create barriers in communication.
Steps to be taken for effective
communication:

Make communication a priority
1.

2. Don’t assume you know everything

3. Keep things positive
4. Switch up the communication channels
 5. Keep updates timely and concise
Project Co-ordination

 Project coordination is the day-to-day management of tasks within the

department.
 The purpose of coordinating projects is to streamline the workflow of the
tasks. A project manager informs employees about who is responsible for each
section of a project and its deadlines.
 Co-ordination in a project is important because of the need for simultaneous
working of number of activities.
 Therefore, one cannot proceed simply, with the execution of a project without
proper co-ordination.
Project Co-ordination Procedure:
Co-ordination basically addresses itself to two aspects
of work.
1. Physical aspect would refer to what work is to be
done, how much work is to be done and who will
do the work.
2. 2. Timing aspect would refer to when the work will
be done.
Pre-requisites for Successful Project
Implementation
 In order to minimise time and cost over-runs during the implementation of
a project it is necessary to study about the prerequisites for successful
project implementation. Keeping checks on these prerequisites help to
improve prospects of successful completion of projects.
 1. Adequate formulation.
 2. Sound project organisation.
 3. Proper implementation planning.
 4. Advance action.
 5. Timely availability of funds.
 6. Effective monitoring.
1) Adequate Formulation:
Often project formulation is deficient because of one or
more of the following shortcomings.
 1. Poor assessments of input requirements.
 2. Improper field investigation
 3. Careless assessment of input requirements.
 4. Improper methods used for estimating costs and
benefits.
 5. Omission of the project linkages.
 6. Flawed judgements because of lack of experience and
expertise.
 7. Undue hurry to get started
2) Sound Project Organisation:
A sound organisation for implementing the project is critical to its
success. The characteristics of such an organisation are:
 1. It is led by a competent leader who is accountable for the
project performance.
 2. The authority of the project leader and his team is
corresponding with their responsibility.
 3. Adequate attention is paid to the human side of the project.
 4. Systems and methods are clearly defined.
 5. Rewards and penalties to individuals are related to
performance.
3) Proper Implementation Planning:
Once the investment decision is taken, and during the formulation
and appraisal process, it is necessary to do the detailed
implementation planning before commencing the actual
implementation. Such planning should involve following steps:
 1. Develop a comprehensive time plan for various activities.
 2. Estimate meticulously the resource requirements (manpower,
materials, money, methods etc.) for each period to realise the
time plan.
 3.Define properly the inter-linkages between various activities of
the project.
 4. Specify cost standards.
4) Advance Action:
When the project appears to be operational, advance
action on the following activities may be initiated:
 1. Acquisition of land,
 2. Securing essential clearances,
 3. Identifying technical consultants,
 4. Arranging for infrastructure facilities,
 5. Preliminary design and engineering,
 6. Calling of tenders.
5) Timely Availability of Funds:
 Once a project is approved, adequate funds must be made
available to meet its requirements
6) Effective Monitoring: To keep a track on the progress of
the project, a system of monitoring must be established. This
helps in:
1. Anticipating deviations from the implementation plan.
2. Analysing emerging problems and resolving it at the
earliest.
3. Taking corrective action. as per the plan of
implementation
 UNIT-3

Project Life Cycle

 Introduction

 Every project has a beginning, a middle period (during

which activities move the project toward completion) and
an ending (either successful or unsuccessful). These
different phase of development in a project is called project
life cycle. A clear understanding of these phases helps
entrepreneurs and project managers to have better control
over existing resources to achieve the desired goals
Phases of Project Life Cycle
 Definition: A project life cycle is the series of phases that a project
passes through from its start to its completion.
 Project life cycle is a complex process consisting of different steps
arranged in a sequential order.
 By definition, a project has a beginning and an end and passes through
several phases of development known as life cycle phases.
 The number of phases and sequence of the cycle are determined by the
management and various other factors like, needs of the organization
involved in the project, the nature of the project, and its area of
application.
 Thephases have a definite start, end, and control point and are
constrained by time.
 The lifecycle provides the basic foundation of the actions that
has to be performed in the project, irrespective of the specific
work involved.
Phases of Project Life Cycle:
 There are three main phases
 1. Pre-investment phase
 2. Implementation Phase
 3.Operation Phase
Pre-investment phase
 This phase consists of identification of investment opportunities,
preliminary project analysis, feasibility study and decision making.
 Investment opportunities can be done through pattern of import and
export over a period of time, plan priority when planning has done.
 Preliminary project analysis involves marketing, technical , financial
and economic aspects of project
 Feasibility study results in proper formulation of project in terms of
location, production capacity , production technology and material
inputs
 Decision making involves decision of owners, sponsors , financiers
whether to accept or reject a particular project.
Implementation Phase:
 This
phase consists of project and engineering design
which consists of site selection , preparation
drawings ,blueprints, project design ,selection of
machines and equipment's.
 Negotiationand construction consists of financing,
construction of buildings and civil works, supply of
machinery and equipments,marketing arrangements.
Operation Phase
 Itinvolves the smooth and uninterrupted operation of
machinaries and plant, production of good quality
product and marketing.
General Project Life Cycle

 1. Starting of the project - The Initiation Phase.

 2. Organizing and Preparing - The Planning Phase.
 3. Carrying out the project - The Execution Phase.
 4. Closing the project - The Termination Phase.
1. Starting of the project - The Initiation Phase.
 In this phase the project objectives are defined and the conceptual aspects of the project
are agreed.
 In this phase a problem is identified and potential solutions suggested.
 The project manager takes the given information and creates a Project Charter.
 A project charter is a short document that explains the project in clear, concise wording
for high level management.
 The Project Charter includes information
 1. Project’s purpose, vision, and mission
 2. Measurable objectives and success criteria
 3. Elaborated project description, conditions, and risks
 4. Name and authority of the project sponsor
 5. Concerned stakeholders like project managers, investors, company owners etc.
Organizing and Preparing: (The Planning Phase)
 The purpose of planning phase is to lay down a detailed strategy of how
the project has to be performed and how to make it a success.
 The planning phase, is where the project solution is further developed in
as much detail as possible and the steps necessary to meet the project’s
objective are planned.
 In this step, the team identifies all of the work to be done.
 This phase is where the project is broken down into manageable areas of
work and planned in terms of time, cost and resources.
 This is a continuous process and will extend throughout the execution
phase of the project.
3. Carrying out the project: (The Execution Phase)
 Inthe execution phase, the decisions and activities defined
during the planning phase are implemented.
 During this phase, the project manager has to supervise the
project and prevent any errors from taking place.
 This process is also termed as monitoring and controlling.
 Aftersatisfaction from the customer, sponsor, and stakeholder’s
end, he takes the process to the next step.
4. Closing the project: (The Termination Phase)
 TheTermination Phase: This is the last phase of any project,
and it marks the official closure of the project.
 Theproject is handed over to the customer and the
postproject review is carried out
Project Management Life Cycle — General
 The project management life cycle describes high-level
processes for delivering a successful project.
 1. Project Initiation
 2. Project Planning
 3. Project Execution
 4. Project Monitoring and control
 5. Project Closure
1. Project Initiation: (Defining what needs to be done)
 Key project management steps for initiating a project:
 1. Make a Project Charter – What is the vision, objective, and
goals of this project?
 2. Identify the High-level Scope and Deliverables – What is the
product or service that needs to be provided
 3. Conduct a Feasibility Study – What is the primary problem and
its possible solutions?
 4. Estimate the overall Cost and create a Business Case – What
are the costs and benefits of the solution?
 5. Identify Stakeholders – Who are the people this project
affects, how, and what are their needs?
2. Project Planning: (Defining how to do, what needs to be done)
 It involves creating the planning documents to guide the team
throughout the project delivery.
 Key project management steps for planning a project:
1. Create a Project Plan – Identify the phases, activities, constraints and
schedule and create a project timeline with a Work Breakdown Schedule
and Gantt chart.
2. Create a Financial Plan – Create a project budget and cost estimate
and a plan to meet the maximum cost, complete with allocations across
resources and departments.
3. Create a Resource Plan – Build a great team, recruit and schedule the
resources and materials needed to deliver the project.
4. Create a Quality Plan – Set project quality targets and measures.
5. Create a Risk Plan – Identify the possible risks, assumptions, issues and
dependencies, assign an owner, and develop a mitigation plan for how to
avoid/overcome them.
6. Create an Acceptance Plan – Assign criteria for what constitutes ‘done’
and ‘delivered’.
7. Create a Communication Plan – List your stakeholders, and plan the
frequency of communication between stakeholders.
8. Create a Procurement Plan – Find any 3rd party suppliers required and
agree terms.
3. Project Execution: (Making a project happen)
 In the execution phase project plan is executed and planning gets turned
into action. The project manager directs and manages project work, and
the project team carries out the work. The project deliverables are
produced and delivered.
 Key project management steps for executing a project:
1. Team Leadership – Set a vision for success and enable the team to
deliver on it.
2. Creating Tasks – Clearly define what needs to be done and the criteria
for the task.
3. Task Briefing – Ensuring the team is clear about what they need
to do, by when.
4. Client Management – Working with the client to ensure
deliverables are acceptable.
5. Communications – Ensure you are informing and updating the
right people at the right time through the right channel.
4. Project Monitoring and control: (Keeping a project on track)

 In this phase, the monitoring of the project life is done to ensure the
project is going according to plan, and if it isn’t, controlling it by
working out solutions to get it back on track.
 In reality, a project manager is monitoring and controlling a project in
some way throughout the phases.
Key project management steps for monitoring and controlling a project:
1. Cost & Time Management – Review timesheets and expenses to record,
control and track against the project’s budget, timeline and tasks.
2. Quality Management – Reviewing deliverables and ensuring they meet
the defined acceptance criteria.
3. Risk Management – Monitor, control, manage and reduce potential
risks and issues.
4. Acceptance Management – Conduct user acceptance testing and
create a reviewing system, ensuring that all deliverables meet the
needs of the client.
5. Change Management – When the project doesn’t go as per the
plan, managing the process of acceptable changes with the client to
ensure they’re happy with necessary changes.
5. Project Closure: (Ending a project)
 Project closure is the last phase of the project life cycle, which formally
closes the project and reports the overall achievements of the project in
terms of defined performance measures.
 Key project management steps for closing a project:
 1. Project Performance Analysis – This is an overall look at how well the
project was managed.
 2. Team Analysis – Did everyone do, what they were assigned to do?
 3. Project Closure – Document the tasks needed to bring the project life to
an official end.
 4. Post-Implementation Review – Write down a formal analysis of successes
and failure, and resulting lessons learned and suggestions for the future.
 UNIT-04
PROJECT PLANNING, SCHEDULING
AND MONITORING
Introduction to Project Planning
 Project Planning is the blueprint towards the predicted goals or
objectives.
 Itis the skeleton of project consists of large number of
activities .
 Planningis answering questions like, what must be done, by
whom, for how much, how, when, and so on.
 Theproject plan decides what, where, who, why, how and
when to do the project
 The purpose of a project plan is to guide the execution
and control the project phases.
 A project plan is a series of formal documents that
define the execution and control stages of a project.
 Resources are allocated and efforts are made to start the
project.
 The project which is carefully planned and scheduled has
less difficulty in completion.
Nature of Project Planning

 The project planning consists of few activities , resources,

limitations and interrelationships which can be easily
understood and visualised by human mind.
 The project planning helps in streamlining the process of the
Project.
 Planning helps in the smooth running of the project as every
aspect of the project is taken into consideration, and the
required solution.
 The project which is predefined and outlined in detail helps
project manager to perform the work more effectively and
efficiently.
Need for Project Planning

 To define work allotment to each project management.

 To reduce uncertainity.
 To improve efficiency of the operation.
 To understand objective in better way.
 Toprovide a basis for monitoring and controlling the
work.
Functions of Project Planning

1. It should provide a basis for organising the work on
the project and allocating responsibilities to individuals.
 2. It is a means of communication and coordination
between all those involved in the project.
 3. It inspires the people to look ahead.
 4. It induces a sense of urgency and time consciousness.
 5. It establishes the basis for monitoring and control.
Steps in Project Planning
 Define the problem to be solved by the project.
 Develop a mission statement, followed by statements of major objectives.
 Develop a project strategy that will meet all project objectives.
 Write a scope statement to define project boundaries (what will and will
not be done).
 Develop a work breakdown structure (WBS).
 Using the WBS, estimate activity durations, resource requirements, and
costs.
 Prepare the project master schedule and budget.
 Decide on the project organization structure.
 Create the project plan.
Project Objectives and Policies
 Project objectives are what we plan to achieve by the end of the project.
 It includes deliverables and assets, increasing productivity or motivation.
 Project objectives should be attainable, time-bound, measurable specific
goals of the project.
 An effective project goal has the following characteristics.
 Specific – Clear about what, where, when and how.
 Measurable - Are we able to measure the problem, establish a baseline, and
set targets for improvement.
 Achievable – Is the objectives are attainable?
 Realistic – Is the project objectives and schedules are realistic?
 Time Bound – Have we set the time for completion?
 The objectives of a project may be
 1. Technical objectives.
 2. Performance objectives.
 3. Time and cost objectives
Project Policies:
 Policies are the general guide for decision making on
individual actions.
 Some of the policies of a project are,
1. Extent of work given to outside contractors.
2. Number of contracts to be employed.
3. Terms of the contract etc.
Project policies must be formulated on the basis of
following principles:
 It must be based upon the known principles in the
operating areas.
 It should be complementary for co-ordination.
 It should be definite, understandable and preferably in
writing.
 It should be flexible and stable.
 It should be reasonably comprehensive in scope.