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Basic Concepts of Project

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18 views21 pages

Basic Concepts of Project

Uploaded by

sivasuriyas95
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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19UME701

PROJECT MANAGEMENT
AND FINANCE

VII SEMESTER
DEPARTMENT OF MECHANICAL ENGINEERING

SETHU INSTITUTE OF TECHNOLOGY


Learning Objectives

1. To impart knowledge to find solutions and approaches for various projects.

2. To familiarize the utilization of project within time, resource and financial constraints.
UNIT I - PROJECT MANAGEMENT CONCEPTS

Concept and characteristics of a project, importance of project management, types of


project, project organizational structure, project life cycle, Statement of Work, Work
Breakdown Structure.
CONCEPT OF PROJECT

The term “Project” has a wider meaning.

A project is accomplished by performing a set of activities.


CONCEPT OF PROJECT

For example, construction of a house is a project.

The construction of a house consists of many activities like digging of foundation pits,
construction of foundations, construction of walls, construction of roof, fixing of doors
and windows, fixing of sanitary fittings, wiring etc.

The construction of a house is accomplished by performing the set of activities.


CONCEPT OF PROJECT

Another aspect of “project” is the non-routine nature of activities.

Each project is unique in the sense that the activities of a project are unique and non-
routine.

A project consumes resources.


CONCEPT OF PROJECT

The resources required for completing a project are


Men,
Material,
Money
And time.
CONCEPT OF PROJECT

The nature of resources is that they are limited and scarce.

If a person wants to construct a house, the first thing that comes to his mind is the
financial budget within which the work should be completed.

Thus, resource constraint is a feature of all projects.


CONCEPT OF PROJECT

If one wants to construct a house at an estimated cost of Rs. 10 lakhs and within a period
of 6 months,

the project should be completed subject to these constraints.

Thus, we can define a project as an organized programme of pre-determined group of


activities that are non-routine in nature and that must be completed using the available
resources within the given time limit.
DEFINITIONS OF PROJECT

According to Harison, a project can be defined as a non-routine, non-repetitive, one-off

under- taking, normally with discrete time, financial and technical performance goals.
DEFINITIONS OF PROJECT

Project Management institute, USA defines project as ‘a system involving the co-

ordination of a number of separate department entities throughout the organization and

which must be completed within prescribed schedules and time constraints.


DEFINITIONS OF PROJECT

According to the Encyclopedia of Management, project is ‘an organized unit dedicated to

the attainment of goal the successful completion of a development project on time, within

budget, in conformance with pre-determined programme specifications’.


BASIC COMPONENTS OF A PROJECT
BASIC COMPONENTS OF A PROJECT

A project has specific objectives in terms of

geographic location,

specific starting and end point,

and most important to serve a target population by achieving good investment returns.
BASIC COMPONENTS OF A PROJECT
STAGES OF A PROJECT

1. Conceptualizing.

2. Market survey, feasibility study and expansion plans giving final picture.

3. Focusing with respect to quality, capacity or product mix with capacities.

4. Site selection, taking into consideration availability of raw materials, infrastructural

facilities, finished goods market location or area targeted, and a balance amongst

these.
STAGES OF A PROJECT

5. Basic engineering and extended basic engineering considering local condition.

6. Detailed engineering and statutory documentation preparation for required

7. Approvals from various bodies, safety and security.

8. Procurement, transportation and insurance etc.


STAGES OF A PROJECT

9. Erection and pre commissioning activities.

10. Commissioning.

11. Performance trials and commercial production.

12. Pre-project activities start with site selection.


STAGES OF A PROJECT

13. These activities could be broadly enlisted as:

14. Ascertaining applicable statutory requirements, documentation and includes applying

for water and electricity required for construction activities.

15. Land procurement and site development.


STAGES OF A PROJECT

16. Land survey, soil investigation and deciding type of foundations for equipment and

buildings.

17. Establishing types and sizes of building for the main plant or production unit.

Recovery unit, buildings for utilities, warehouses, tank farms for raw materials and

finished goods, etc.


STAGES OF A PROJECT

18. Preparation of the master plan showing future expansion in phased manner

considering directional or locational norms suggested by Vastu Shastra, in case the

owner/management desires.

19. Freezing the plot plan for the present phase of the project.

20. Freezing roads, 'drains and areas for contractors for construction activities and labour

camps.

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