Project Engineering

Introduction of Project and

Chapter 1 Project Management

Anita Prajapati, Ph.D.

Assistant Professor

07 December 2023 1
What is a project ?

• A project is simply a cluster of activities that is relatively separate and clear

cut and has a distinct mission and a clear termination point
• Eg. building a plant, designing a new package, new structure, plant,
process, system or software, replacement, refurbishment, renewal or
removal of existing one

• “A project is a temporary endeavor undertaken to create a unique product

or service” as per PMI. It is specific, timely, usually multidisciplinary, and
always conflict ridden.

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*PMI: Project Management Institute, USA
Project
• Project is something that converts idea, design or a plan into something
concrete entity such as every new design of car, ship, refrigerator,
power station, control system, buildings, road, bridge dam, software
package etc.

• Every project has

• an investment of resources for an objective
• a cause of irreversible change
• novel to some degree
• concerned with the future 3
• related to expected result
 Characteristics of Project
• Specific objectives
• Life span
• Constraints
• Unique
• Team work
• Flexibility
• Resource integration
• Planning and control
• Risk and Uncertainty 4

• Beneficiaries
Classification of Project
• According to Funding
• Private sector project
• Government sector project
• Grant projects
• Loan projects
• According to Foreign aid
• Joint venture project
• Bilateral project (USAID, KOICA, DANIDA, JICA, GIZ,…)
• Multilateral project (WHO, UNICEF, WB, UNDP, FAO,…)
• According to Techniques
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• Labor intensive project: size, cost, product
• Capital intensive project
Classification of Project
• According to Functions
• Development projects
• Disaster prevention projects
• Service sector projects
• Environmentally friendly projects
• According to the orientation
• Product oriented
• Process oriented
• According to scale and sizes
• Mega
• Major 6
• Medium
• Small
Classification of Project

• According to nature of projects

• Simple
• Complex
• Innovative
• Emergency
• According to time frame and speed
• Normal
• Crash
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Setting project objective and goal: SMART
• Specific
• Clear and well defined goal (who, what, when, where, which and how)
• Measureable
• Project outcome should be measurable and comparable (how much?, how
many?, how will I know when it is accomplished?)
• Track the progress
• Achievable
• Agreed by all, attainable at the present moment,
• Maintain standard performance
• Realistic
• Possible under limited set of resources 8
• Time framed
• Set time to complete the project
 Project life cycle and phases

• Formulation phase
• Define the project
• Planning phase Termina Formul
tion ation
• Design the project process Phase Phase
• Implementation phase
• Deliver the project (Do it!) Implem
Plannin
entatio
• Termination phase g Phase
n Phase
• Close the project 9
Phase I : Project Formulation Phase
• Initiation phase
• Project identification
• Situation survey: demand for goods/services the project will produce
• Internal sources: use internal records, experiences
• External sources: new possibilities, alternative ideas

• Project formulation
• Statement of Work : objective, scope, purpose, deliverables
• Project proposal – Technical and Financial; Feasibility study

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Phase I : Project Formulation Phase
• Feasibility study:
• Predicts demand and cost that could affect the project and its useful
life
• Identifies whether the project is viable or not (high risk should have
higher return)
• Repetitive process with revised ideas, better information
• Takes time but give specific outcome: sanction or reject the proposed
project
• Once selected the activities changes from whether to proceed to
deciding how best it should be realized of what needs to be done
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Phase I : Project Formulation Phase
• Steps
• Create document outlining the project
• Develop project feasibility report
• Once feasible, hire project manager and assign the team for the
project
• Outline deliverables ( what will be done, how it will be done and
why it will be done)

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Phase ii: Project Planning and design
(Development) Phase
• Design ideas are usually the start of the possible project
• Alternatives are investigated before estimating cost
• Evaluation and selection of material to be used
• Decision at design stage determines the cost and quality and
ultimately the success of a project
• Scale and specialization increase rapidly as design proceeds
• Involves both experimental and analytical work to test the means of
achieving a predicted performance
• Research ascertains the properties and potential performance of the
materials used 13
Phase ii: Project Planning and Design
(Development) Phase
• Preliminary design
• Design all structural component and mechanical processes

• Final design
• Detailed architectural and engineering design of all physical components
• Resolve design problems
• Estimates construction and operation cost as well as construction
schedule
• Prepare final report with updated design, estimates, schedule and
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specification
Phase ii: Project Planning and design
(Development) Phase
• Develop plans that guide team in the implementation and
termination phase
• Helps to manage time, cost, quality, changes, resources, risk and
uncertainty
• Creates comprehensive project plan
• Feasibility study - Technical, Financial, Management, Marketing,
Economic, Environment analysis
• Project appraisal – Appraisal and Approval
• Detailed design – Detailed design, Implementation Plan and Work
Schedule 15
Phase ii: Project Planning and design (Development) Phase

• STEPS
• Review project scope and statement of works
• Complete project decomposition using work breakdown
structure
• Develop organizational structure
• Resource allocation
• Create project schedule
• Plan project budget
• Perform risk assessment
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• Conduct stakeholder analysis
• Finalize project plan
Phase iii : Project implementation phase
• Follows large scale activities like manufacturing equipment,
construction works
• Employs contractor and sub-contractors from this stage
• Proceeds in different speeds but should meet specific objectives

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Phase iii : Project implementation phase
• Implementation
• Allocate task to team members
• Perform the actual task
• Deals with the procurement of equipment, resources and services
• Observe and analyze the work in progress as per the schedule
• Necessary adjustment in plans

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Phase iii : Project implementation phase
• Monitoring and Control
• Supervision and control of project performance
• Various controlling techniques like CPM, PERT
• Monitor project performance
• Identify corrective actions

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Phase iv: Project Termination Phase
• Settlement of claims
• Final presentation and acceptance of the project results
• Handover the project
• Close all the project controlling tools, reports and documents
• Release resources
• Close all accounts

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Project Life Cycle
Formulation Planning Implementation
Resources (Efforts) Termination

Co
st
Re
du
cti
on
Po
ssi
bil
itie
s

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Time
 22

Construction project life cycle

Pharmaceuticals project life cycle
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Software development
project life cycle

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Project Environment

• A project is environment specific which consists of forces that affects

projects' ability to achieve the objective.
• Project environment is dynamic and has high probability to change
project life cycle
• The changes in the environment should be identified, analyzed and
understand as they occur

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 Political legal
Project Environment

Client Constrain Contr

t actors

Objective
Project structure
s
Financi Economic
Technological Supplier ers
s

Resources

Governme Competiti
nt ors 26

Socio-cultural
Project environment

• Project environment can be classified as:

• Internal environment
• Task environment
• External environment

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Project environment

• Internal environment
• Elements whose change directly influence the project,
controllable by the project
• Objective
• Constraints
• Structure
• Resources
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Project environment
• Task environment:
• Any business or consumer with direct involvement with the project, made
up of stakeholders, their interests affect oroject activities
• Elements of task environment are:
• client,
• contractors,
• consultants,
• suppliers,
• government,
• financiers,
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• competitors,
• unions
Project environment
• External environment
• Entities that exist outside the boundary but have significant
influence on its growth and survival, cannot be controlled by the
project
• External factors affecting project environment
• Political-legal :
• Political environment: political system, political institutions, political philosophy
• Legal environment: Employment regulation, product regulation, health and safety
regulation, laws and court decisions, imports, exports, taxation
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Project environment
• Economic environment :
• Economic system: free market, centrally controlled, mixed economy
• Economic policies: monetary policy, fiscal policy, industrial policy
• Economic conditions: income, business cycle, inflation
• Regional economic groups: SAARC, ASEAN, EU

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Project environment
• Socio-cultural environment :
• Social environment:
• Demographics: size distribution and growth of population, age mix,
urbanization
• Social institutions: reference groups like sports, musical,
• Pressure group: human rights, women rights,
• Social change : life style, product choice
• Cultural environment:
• Influencing the type of project
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• Creating attitude towards work and leisure
Project environment
• Technological environment:
• Level of technology: labour based, capital based,
• Pace of technological change:
• Technology transfer: globalization, trade, technical assistance, training and
publications
• Research and development:

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Project Management
• New way of thinking about management, manages complexity and
change in a dynamic environment, makes efficient use of resources for
better client satisfaction
• Systemic approach for efficient and effective achievement of project
objectives through:
• Assignment of total project responsibility and accountability a single
project manager
• Coordination across functional lines
• Proper utilization of planning and control tools for better resource use
within the constraint of time, cost and quality
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Project Management
• “Application of knowledge, skills, tools and techniques to project
activities to meet project requirement”

• “The art of directing and coordinating human and material resources

throughout the life of a project by using modern management
techniques to achieve predetermined objectives of scope, cost, time,
quality and participant satisfaction.” PMI

• “Management of change” but explicitly planned change such that the

change is directed towards unique creation of a functioning system 35
Project Management
• Identify project requirement
• Establish clearly defined project objectives
• Communicate plans and priorities
• Anticipate problems and assess progress and trends
• Manage project stakeholders
• Balance scope, schedule, costs, risk and quality
• Depends upon relative size, complexity, urgency, importance and
novelty of a projects

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Characteristics of Project Management
• Objectives-oriented
• Change-oriented
• Single responsibility center
• Team based
• Functional co-ordination
• Planning and control
• Constraints
• Body of knowledge

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Body of Project Integration Management (plan): Project plan development, Plan Execution, Overall change control,
Knowledge
Project Scope Management: Initiation, Scope planning, definition, verification, Scope change control

Project Time Management: Activity definition, sequencing, duration estimation, schedule development,
schedule control

Project Cost Management: Resource planning: Cost estimation, budgeting, cost control

Project
Management
Project Risk Management: Risk identification, quantification, Risk response development, risk response control

Project Quality Management: Quality planning, assurance, quality control

Project Human Resources Management : Organizational planning, staff acquisition, team development

Project Communication Management: Communication planning, administrative closure

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Project Procurement Management : Procurement planning, source selection, contract administration,
contract close out
Benefits of Project Management
• Manage change
Change management • Introduce new technology
• flexibility
Environmental adaptation • Management of complexity related to resources,
• Continuous improvement
Results-orientation • Achieves objectives within constraints
• Coordinates across functional lines
Co-ordination • Manages conflict

Team development • Multi-disciplinary team

Reengineering • Minimizes management gaps functional gaps

• Problems are soled as and when they arise 39

Timely correction

Customer satisfaction • Customer focused

Limitations of Project Management
• Lack of long range planning
• Organizational disruption
• Constrained human resource development
• Reluctance for authority delegation
• Organizational restructuring
• Team related problems
• Conflicts
• Unsuitable

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THANK YOU 41