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PROJECT MANAGEMENT
-MR. AJIT PARAB
Learning Objectives :
To introduce students of Management to concepts of Project
To apply and evaluate success parameters of cost ,time and quality in project management To apply various techniques as cpm/pert/earned value analysis and projected financial statements To enable student to implement an idea, evaluate it’s feasibility and make it workable. 1.0 Objectives 1.1 Introduction to Project Management 1.2 Importance of Project Management 1.3 Concepts and Attributes of a Project 1.4 Project Lifecycle 1.5 Stakeholders 1.6 Stakeholder Management 1.7 Project Organization 1.8 WBS 1.9 Scope and Priorities 1.10 Project Identification 1.11 Market Feasibility with Moving Average and Exponential Smoothing Methods 1.12 Techno-Economic Feasibility 1.13 Government Policy to Location 1.14 Legal Aspects in Project Management Overview of Project A project is defined as a sequence of tasks that must be completed to attain a certain outcome. A project in project management is a temporary and unique endeavour that aims to achieve specific objectives within a defined timeframe, budget and having achieved its objective(s). Examples of project include Developing a Researching to develop a new manufacturing process, Manufacturing products for retail sale, Building a shopping mall, Creating irrigation facility, Developing new variety of a crop, Developing new breed of an animal, Developing agro-processing center, Construction of farm building, sting of a concentrated feed plant etc. It may be noted that each of these projects differ in composition, type, scope, size and time. Types of Projects By Funding Source Private projects: Projects that are financed by businesses or private organizations. Public projects: Projects which are funded by Government agencies. Mixed projects: Projects that are financed by a public-private partnership.
Types of Projects By Industry
Construction projects: Manufacturing projects: IT projects: Software development projects: Business projects: Attributes of a project Attributes of a project refer to the characteristics or qualities that define and describe the project. These attributes play a crucial role in understanding, planning, and managing the project effectively. Here are some key attributes of a project:
Project management is a discipline that involves planning, executing, and
overseeing a project from its initiation to its completion. It is a systematic approach to achieving specific goals and objectives within a defined scope, time, quality, and cost constraints. For successful project management, one must have a clear understanding of the project goals, scope, timelines, and budget. Need and Importance of Project Management: 1. Strategic Alignment 2. Consistent communication 3. Effective resource allocation 4. Higher productivity 5. Better customer satisfaction 6. More flexibility 7. Higher risk tolerance 8. Quality control 9. Develops essential skills 10. Improves decision-making 11. Increases employability 12. Learning by retrospection Characteristics and Importance of Project Management: Project Objectives Time Life Cycle Possible Conflicts Flexibility Team Spirit Constraints Planning and Control Body of Knowledge Project Life Cycle: The project management life cycle is usually broken down into four phases: initiation, planning, execution, and closure. These phases make up the path that takes your project from the beginning to the end. Stakeholders:
A formal definition of a stakeholder is: “individuals and
organizations who are actively involved in the project, or whose interests may be positively or negatively affected as a result of project execution or successful project completion” (Project Management Institute (PMI®), 1996).
Types of stakeholders in project management
Internal stakeholders: External stakeholders: Examples of stakeholders in a project Company owners Project manager Team members Advisory members Executive members Managers Resource managers Senior management Investors Sponsors Suppliers Vendors Consultants Customers End users Project Organisation:
Project organization refers to the style of coordination,
communication, and management a team uses throughout a project’s life cycle. Project organization encourages participation by each team member and embraces diverse talents and skills. Team involvement is laid out in an organizational structure chart that graphically shows where each person is placed in the project structure. Project organizational charts are useful tools for clarifying who does what, securing buy-in and setting expectations for the group. Types of project organization
1. Functional 2. Project 3. Matrix 4. Composite Functional • In this type of project organization, the project team members are drawn from different functional areas of the organization, such as engineering, marketing, and finance. • Each team member reports to their respective functional manager, and the project manager has limited authority. • The functional manager is responsible for the team member's performance, and • the project manager is responsible for coordinating and integrating the team's work. • This structure is often used in organizations with a stable and routine project environment. Project-Oriented/Projectized
• In this type of project organization, the project
team members are organized into a separate project team for each project. • Each team member reports directly to the project manager, who has complete authority and control over the project. • The project manager is responsible for managing the project budget, schedule, and resources. • This structure is often used in organizations where project work is the primary business function. Matrix • In this type of project organization, the project team members are drawnfrom different functional areas of the organization, and each team member has two reporting lines – to their functional manager and to the project manager. • The project manager has moderate authority, and the functional manager has partial authority. • This structure combines the strengths of Functional and projectized organizations, allowing organizations to balance resources and expertise while maintaining flexibility. • This structure is often used in organizations where projects are critical to the business but not the primary business function. Weak Matrix Strong Matrix Composite Work Breakdown Structure
(WBS) is a hierarchical decomposition of project tasks, deliverables,
and work elements that organizes and defines the total scope of the project. It is a critical tool in project management, used to break down the project into smaller, more manageable components, and To establish a framework for organizing and tracking project tasks. The WBS typically starts with the main project deliverable, and then breaks it down into smaller, more manageable components or work packages. These work packages can then be further broken down into smaller, more specific tasks, which can be assigned to individual team members for execution. The WBS should be developed in collaboration with the project team and stakeholders to ensure that all key project elements are included and that everyone is clear on their responsibilities. Benefits of using a WBS in project management include:
Improved project planning:
Better communication: Enhanced project tracking and monitoring: Increased stakeholder engagement: The work breakdown for a certain marketing campaign can be as follows: Campaign Planning Objective Setting Target Audience Identification Campaign Strategy Development Creative Development Concept Development Creative Execution Asset Creation (graphics, videos, copy) Campaign Execution Media Planning and Buying Creative Deployment Campaign Tracking and Optimization Reporting and Analysis Metrics Tracking ROI Calculation Post-Campaign Analysis SCOPE AND PRIORITIES Scope: The scope of a project defines the boundaries of what will be delivered and what won't be delivered. It is a statement of the project's objectives, deliverables, and the work required to achieve those objectives. The scope outlines what is included in the project, and also what is not included. Defining the scope of a project is critical to ensure that all stakeholders have a clear understanding of what the project will deliver. A well-defined scope helps in developing realistic project plans, identifying potential risks and constraints, and allocating resources effectively. Priorities: Priorities are the relative importance of project objectives, tasks, and deliverables. Prioritization is the process of ranking project tasks based on their level of importance or urgency. Priorities are determined based on the project's goals and objectives, stakeholder needs, and available resources. Setting priorities helps project managers to focus on the most critical and high-impact tasks, which improves project outcomes. Prioritization helps in effective resource allocation, time management, and risk management. It also helps in avoiding delays and bottlenecks, as tasks are completed in order of importance. Setting scope and priorities helps in effective allocation of resources, developing realistic project plans, improved communication with the stakeholders and manages risk associated with the project. PROJECT IDENTIFICATION Project identification is the first step in the project management process. It involves identifying potential projects that align with an organization's goals and objectives, evaluating them, and selecting the best project(s) to pursue. The goal of project identification is to determine whether a project is worth pursuing and whether it has the potential to provide a return on investment. The steps involved in project identification are as follows: o Idea generation: o Screening: o Feasibility study: o Project selection: o Project charter: TECHNO-ECONOMIC FEASIBILITY Techno-economic feasibility is an assessment of whether a particular technology or project is both technically and economically viable. In other words, it involves evaluating the potential of a technology or project to achieve its technical objectives while also generating enough financial returns to justify its investment. To determine the techno-economic feasibility of a project, a range of factors are considered, including: Technical feasibility: This refers to the ability of the technology or project to deliver the desired outcomes or meet the specified performance standards. Economic viability: This refers to the potential financial returns that can be generated from the technology or project, taking into account factors such as market demand, pricing, production costs, and potential revenue streams. Market demand: This refers to the level of demand for the technology or project in the target market, and its potential growth prospects. Competitiveness: This refers to the ability of the technology or project to compete effectively with other existing or potential alternatives in the market. Environmental and social impact: This refers to the potential impact of the technology or GOVERNMENT POLICY TO LOCATION The fundamental objective of government policy on location is to achieve balanced regional development of the economy through decentralization of industries, with a view to ensuring the following benefits:
1. Reduction of inequalities of income and wealth, in various regions
2. Provision of employment opportunities on an equitable basis.
3. Increase in the standard of living in backward areas through removal of poverty
4. Avoid over-concentration of industries in particular regions for strategic defence
considerations
5. Controlling social problems like – development of slums, over-crowding,
pollution, traffic-congestion etc. GOVERNMENT POLICY TO LOCATION The Indian government has formulated several policies to promote projectmanagement and to guide the location of projects in the country Some of the key policies are as follows: National Project Management Policy (NPMP): The NPMP aims to provide a framework for effective project management across various sectors. The policy sets out guidelines for project management, including project planning, implementation, monitoring, and evaluation. Industrial Location Policy: The Industrial Location Policy aims to promote balanced regional development by encouraging industries to set up in backward regions. The policy offers incentives such as tax holidays, capital subsidies, and interest subsidies to industries that set up in these regions. Special Economic Zones (SEZs): The government has set up SEZs to promote exports and attract foreign investment. SEZs offer various incentives such as tax holidays, duty-free imports, and relaxed labour laws to companies that set up operations in these zones. National Industrial Corridor Development Programme (NICDP): The NICDP aims to promote industrial development by creating industrial corridors across the country. These corridors will have world-class infrastructure and offer various incentives to attract industries. Make in India: The Make in India initiative aims to promote manufacturing in India and increase the share of manufacturing in the GDP. The initiative offers various incentives to companies that invest in manufacturing in India. Environmental Regulations: The government has various environmental regulations that companies must comply with when setting up a project. These regulations aim to protect the environment and ensure sustainable development. These policies aim to promote industrial development while ensuring sustainable development and balanced regional growth. LEGAL ASPECTS IN PROJECT MANAGEMENT project managers need to be aware of the legal aspects that apply to their projects. Some of the legal aspects of project management in India are as follows: Contracts and agreements: Project managers need to ensure that they have proper contracts and agreements in place with stakeholders such as clients, vendors, and contractors. These contracts should comply with the Indian Contract Act, 1872, and should clearly define the scope of work, timelines, and responsibilities of each party, as well as provisions for dispute resolution and breach of contract. Intellectual property: Project managers need to be aware of the various laws related to intellectual property in India, including the Patents Act, 1970, the Trademarks Act, 1999, and the Copyright Act, 1957. They need to ensure that any intellectual property created during the project is properly protected and that they have the necessary licenses and permissions to use any intellectual property owned by others. Labour laws: Project managers need to comply with the various labour laws in India, including the Minimum Wages Act, 1948, the Employees Provident Fund and Miscellaneous Provisions Act, 1952, and the Payment of Bonus Act, 1965. They need to ensure that their employees are provided with appropriate wages, benefits, and working conditions. Environmental regulations: Project managers need to comply with environmental regulations in India to ensure that their projects do not have a negative impact on the environment. This may involve obtaining environmental clearances from the Ministry of Environment, Forest and Climate Change, conducting environmental impact assessments, and implementing measures to mitigate any environmental impact. Taxation laws: Project managers need to be aware of the various taxation laws in India, including the Income Tax Act, 1961, the Goods and Services Tax (GST) Act, 2017, and the Customs Act, 1962. Data privacy laws: Project managers need to comply with data privacy laws in India, including the Information Technology Act, 2000, and the Personal Data Protection Bill, 2019. They need to ensure that they obtain consent from PREPARATION OF DPR A Detailed Project Report (DPR) is a comprehensive document that outlines the various aspects of a project in detail. Contents of a DPR: Introduction: Project Description: Market Analysis: Technical Feasibility: Financial Analysis: Risk Analysis: Project Organization and Management: Project Implementation Plan: Conclusion: Market feasibility with Moving Average and Exponential smoothing methods
Moving Average Forecasting Method:
A moving average is a technical indicator that market analysts and investors may use to determine the direction of a trend. A moving average is a statistic that captures the average change in a data series over time. A moving average is a technique that calculates the overall trend in a data set. In Project management, the data set is sales volume from historical data of the company. This technique is very useful for forecasting short-term trends. It is simply the average of a select set of time periods.
Types of Moving Averages:
1. Simple Moving Average 2. Weighted Moving Average 3. Exponential Smoothing Moving Average Terms to Remember: The Mean Absolute Deviation (MAD) is the sum of absolute differences between the actual value and the forecast divided by the number of observations. MAD is the same as MAE, Mean Absolute Error.
Mean square error (MSE) is probably the most commonly used error metric. It penalizes larger errors because squaring larger numbers has a greater impact than squaring smaller numbers. The MSE is the sum of the squared errors divided by the number of observations.
Mean Absolute Percentage Error (MAPE) is the average of absolute errors divided by actual observation values. MAPE should not be used if there are zeros or near-zeros in the actual data. 1.1 From Following Information, Calculate i. 2-period moving average ii. 4-period moving average iii. 5-period moving average
