LECTURE No 2

QNO1
What is a Project?

“a project is a problem scheduled for solution.”

Project Manager:-

The person, who is responsible for managing the project.

Project Management

The members of the team who are directly involved in project management activities.

Short Range Projects: Long Range Projects

They are completed within one year. They are completed within long period of
times.
They are not cross functional. They are most often cross functional.
They are less rigorous; require less or no risk These projects involve higher risk and a proper
feasibility analysis is essential before starting
such projects.
These projects require limited Project Large numbers of resources are required to
Management tools. undertake long range projects

Why Projects are initiated?

1. When starting a new business

2. In order to develop/ modify a product or service.
3. For some community issues.
4. For implementing a new system or process
5. To introduce new equipment, tools or techniques.

Characteristics of Projects:
1. As already mentioned projects are temporary with a definite beginning and a definite end.
2. They also have temporary opportunities and temporary teams.
3. Most of the projects last for several years. However, they have a finite duration
4. They involve multiple resources (human and non-human) and require close coordination.
 5. In every project, clients want changes, and the parent organization aims at maximization
of profits.
6. There can be two bosses at a time and that too with different priorities and objectives.

Project Environment:
All projects are planned and implemented in a social, economic, environmental, political and
international context.

1. Cultural and Social Environment

2. International and Political Environment
3. Physical Environment

stakeholder
A stakeholder is a person, group or organization with a vested interest, or stake, in the decision-
making and activities of a business, organization or project.

Key Stakeholders:
Key stakeholders include the following:

1. Project Manager:
2. Customers, End Users:
3. Performing Organization:
4. Project Management Working on the Project:
5. Project Team Members:
6. Sponsors:
7. Influencers:
8. Project Management Organization:

The Triple Constraint of Project Management:

Meeting stakeholder needs and expectations involves balancing competing demands among cost,
quality, scope, and time.

Q = f (T, C, S)

Operations and Projects:

1. They are both performed by people

2. They are constrained by limited resources
3. Both are planned, executed, and controlled
 LECTURE NO 3
Management in any project is concerned with productivity. This refers to efficiency and
effectiveness.

Efficiency:

In order to be efficient, management is concerned with minimizing resource costs. Efficiency is

“doing things right”

Effectiveness:

In order to be effective, management is concerned with getting activities completed.

Effectiveness is “doing right things”.

Who is a Project Manager?

A project manager is a professional in the field of project management. They have the
responsibility of the planning and execution of any project.

Types of Project Managers:

1. Line managers
2. Staff managers
3. Functional managers
4. General Managers
5. An administrator

Activities of Project Managers:

1. Traditional management: 32%
2. Communication: 29%
3. Human Resource Management (HRM) 20%
4. Networking: 19%

Success for Project Managers:

1. Ability (A)
2. Motivation to manage (M)
3. Opportunity (O)

Together, they constitute the basic formula for managerial success (S).

S=AxMxO
Managerial Skills
A skill is an ability or proficiency in performing a particular task.

 Technical Skill
is the knowledge of and proficiency in activities involving methods,
processes, and procedures.
 Human Skill
is the ability to work with people; cooperative effort; it is teamwork; feel
secure and free to express their opinions. •
 Conceptual Skill
is the ability to see “big picture” in order to recognize significant
elements in a situation, and to understand relationships among elements.
 Design Skill
is the ability to solve problems in ways that will benefit enterprise.

LECTURE NO 4
Project driven versus Non – project driven organizations:

Project driven Hybrid Non – project driven

PM( project management) Primary production driven Very Few Projects
has P (profit) & L (Lose) but with many projects
responsibility

PM is a recognized Emphasis on new product Profitability from

profession development production

Multiple career paths Marketing-oriented Large brick wall

Incomes comes from Short product life cycle Long life cycle products
projects
Year 1990 to 2000 Years 2000 to 2010
Integrated process Current Integrated Integrated process
process
Project Management Supply chain
Management
Total quality Management Business Process
Concurrent Engineering Feasibility study
Scope Change Cost benefits analysis
Management ROI
Risk Management Capital budgeting

Systems:
A group of elements, either human or nonhuman, that is organized and arranged in such a way
that the elements can act as a whole toward achieving some common goal, objective, or end.

Programs:
Programs can be explained as the necessary first-level elements of a system. Two representative
definitions of programs are given below:

1 Air Force Definition

2 NASA Definition:

Projects:
Projects are also time-phased efforts (much shorter than programs) and are the first level of
breakdown of a program. A typical definition would be:

1 NASA/Air Force Definition:

Categories of Projects:

1 Individual project
2 Staff projects
3 Special projects:
4 Matrix or Aggregate projects

project manager must:

 1 Set objectives
2 Establish plans
3 Organize resources
4 Provide staffing
5 Set up controls
6 Issue directives
7 Motivate personnel
8 Apply innovation for alternative actions
9 Remain flexible

Product versus Project Management:

The project manager focuses on the end date of his project,

whereas the product manager is not willing to admit that his product line will ever end.

Maturity and Excellence:

Maturity in project management is the implementation of a standard methodology and
accompanying processes, in such a way that ensures a high likelihood of repeated successes.

The definition of excellence can be stated as: Organizations excellence creates an environment in
which there exists a continuous stream of successfully managed projects and where success is
measured by what is in the best interest of both the company and the project (i.e. the customer)

Informal Project Management:

1 Effective communications
2 Effective cooperation
3 Effective teamwork
4 Trust These four elements are absolutely essential for informal project management to
work effectively.

LECTURE No 5
 Life Cycle Phases of a Product:
During the past few years, there has been at least partial agreement about the life cycle phases of
a product. They include:

1 Research and development

2 Market introduction
3 Growth
4 Maturity
5 Deterioration
6 Death

Life Cycle Phases of a System:

The theoretical definitions of the life cycle phases of a system can be applied to a project.
These phases include:
1 Conceptual
2 Planning
3 Testing
4 Implementation
5 Closure

Difference Between Project Manager and Project Management Officer:

1 Both have different objectives - driven by different requirements, aligned with strategic
needs of organization.
2 . Project Manager is responsible for delivering specific project objectives within project
constraints, while Project Management Officer is responsible for organizational structure
specific mandates having much vast perspective.
3 Project Manager focuses on project objectives, while Project Management Officer
focuses on major programs, scope and changes required and authenticated. Project
Management Officer considers all potential opportunities to have business goals
achieved.
4 Project Manager is constrained with assigned resources for specific project to meet its
full objective. On the other hand, Project Management Officer is supposed to optimize
the use of shared organizational resources across all projects overall.
5 Project Manager manages scope, schedule, cost, and quality of product, while the Project
Management Officer manages overall risk, opportunities, interdependencies and links
among different projects.
 6 Project Manager reports on project progress/project specific information to the top
management, while Project Management Officer provides consolidated
reporting/enterprise view of project or all the running projects.

Some Examples of Project Life Cycle:

1 House Project:
2 Computer installation:
3 Engineering Project
4 Nuclear Power Station Project:

LECTURE NO 6

Skill Requirements for Project Managers:

1 Team building
2 Leadership
3 Conflict resolution
4 Technical expertise
5 Planning
6 Organization
7 Entrepreneurship
8 Administration
9 Management support
10 Resource allocation

Functional Manager versus Project Manager:

1 The Functional Manager has the responsibility to define how the task will be done and
where the task will be done (i.e., the technical criteria).
2 The Functional Manager has the responsibility to provide sufficient resources to
accomplish the objective within the project's constraints (i.e., who will get the job done).
3 The Functional Manager has the responsibility for the deliverable.
the Project Manager must provide:

1 Complete task definitions

2 Resource requirement definitions (possibly skill levels)
 3 Major timetable milestones
4 Definition of end item quality and reliability requirements
5 The basis for performance measurement

 What are the internal and external sources?

 How do we select?
 How do we provide career development in project management?
 . How can we develop project management skills?
 How do we evaluate project management performance?

Project management cannot succeed unless a good Project Manager is at the controls. The
selection process is an upper level management responsibility because the Project Manager is
delegated the authority of the general manager to cut across organizational lines in order to
accomplish the desired objectives successfully. It is far more likely that Project Manager will
succeed if it is obvious to the subordinates that the general manager has appointed them. Usually,
a brief memo to the line managers will suffice.

Duties and Job Descriptions:

1 Planning:
2 Organizing:
3 Directing:
4 Controlling:

The primary skills needed to be an effective project manager in the this century will be

1 : Knowledge of the business

2 Risk management
3 Integration skills
Methods and Techniques for Developing Project Managers:

1 Experiential training/on-the-job
2 Conceptual training/schooling
3 Organizational development
 LECTURE NO 7
Successful Project Manager

1 A good daily working relationship between the Project Manager and those line managers
who directly assign resources to projects.
2 The ability of functional employees to report vertically to their line manager at the same
time that they report horizontally to one or more Project Managers.

Roles and Responsibilities of Project Manager:

The role of the Project Manager encompasses many activities including:

1 Planning and defining scope

2 Activity planning and sequencing
3 Resource planning
4 Developing schedules
5 Time estimating
6 Cost estimating
7 Developing a budget
8 Controlling quality
9 Managing risks and issues
10 Creating charts and schedules
11 Risk analysis • Benefits realization
12 Scalability, interoperability and portability analysis
13 Documentation
14 Team leadership
15 Strategic influencing
16 Customer liaison

Success in project management is like a three-legged stool. The first leg is the Project
Manager, the second leg is the line manager, and the third leg is senior management.

Functional and Project Organizations:

Functional organization is structure in which authority rests with the functional heads;
the structure is sectioned by departmental groups.
 Advantages of Functional Structure:
1 Simple and clear; coordination left to top management
2 Reduces overhead • Provides clearly marked career paths for hiring and
promotion
3 Employees work alongside colleagues who share similar interests

Disadvantages of Functional Structure:

1 Coordination of functional tasks is difficult; little reward for cooperation

with other groups since authority resides with functional supervisor.
2 Provides scope for different department heads to pass-off company
project failures as being due to the failures of other departments.

Matrix Organizations:
Most organizations fall somewhere between the fully functional and fully projectized
organizational structure. These are matrix organizations. Three points along the organizational
continuum have been defined

1 Weak/Functional Matrix:
2 Balanced/Functional Matrix:
3 Strong/Project Matrix:.
4 Soft boundaries Matrix:

LECTURE NO 8

Project Conception:

Conception of an Industrial Project is the initial step in the process of defining the actual scope
of a project.

The conceptual stage involves the following activities:

1 Definition of a requirement or an opportunity that commands the interests of the

company.
2 Formulation of a set of preliminary alternatives capable of fulfilling the initial
requirement.
3 Selection of alternative(s) that might satisfy the requirements in terms and conditions
attractive to the company.
Feasibility Analysis:

A feasibility study is an analytical tool used during the project planning process, shows how a
business would operate under an explicitly stated set of assumptions.

Types of Feasibility:

1 Technical Feasibility:
2 Managerial Feasibility:
3 Economic Feasibility:
4 Financial Feasibility:
5 Cultural Feasibility:
6 Social Feasibility
7 Safety Feasibility:
8 Political Feasibility:
9 Environmental Feasibility:
10 Market Feasibility:

Tangible and Intangible Benefits:

Estimating benefits and costs in a timely manner is very difficult. Benefits are often
defined as:

1 Tangible benefits for which dollars may be reasonably quantified and

measured.
2 Intangible benefits that may be quantified in units other than dollars or may
be identified and described subjectively.

LECTURE NO 9
What is a Feasibility Study?

Identifying such roadblocks is the purpose of a feasibility study.

A feasibility study is essentially a process for determining the viability of a proposed initiative or
service and providing a framework and direction for its development and delivery.

Why do we study feasibility study?

Feasibility studies can identify the logistical, financial, and market challenges of a proposed
project by evaluating: What the estimate would be to fund the project. When the potential
business will offer a return on investment. The market for the proposed product or service.
Scope of Feasibility Analysis:

1 Need Analysis:
2 Process Work:
3 Engineering and Design:
4 Cost Estimate:
5 Financial Analysis:
6 Project Impacts
7 Conclusions and Recommendations:

Elements of a Feasibility Assessment:

1 Executive Summary:
2 Need Analysis:
3 Engineering:
4 Advantages and Disadvantages:
5 Market for the Product Offerings:
6 Financial analysis:
7 Risk analysis of the Preferred Solution:
8 Comparative Analysis:
9 Recommendations:

Market for the Product Offerings

1 Customers:
2 Products and Services
3 Competition:
4 Map:
5 Costing:
6 Suppliers:
7 Location:
8 Resources:
9 Staff

LECTURE NO 10
Characteristics of a Feasibility Study:

A typical feasibility study checklist might include:

1 Summary level
2 Evaluate alternatives
3 Evaluate market potential
4 Evaluate cost effectiveness
5 Evaluate productivity
6 Evaluate technical base
7 Detail level
8 A more specific determination of the problem
9 Analysis of the state-of-the-art technology
10 Assessment of in-house technical capabilities
11 Test validity of alternatives
12 Quantify weaknesses and unknowns
13 Conduct trade-off analysis on time, cost, and performance
14 Prepare initial project goals and objectives
15 Prepare preliminary cost estimates and development plan
The Feasibility Study - What Bankers Like to See in Them:

1 Executive Summary:
2 The Financial Package Blueprint:
3 The Feasibility Assessment Process:
4 Input Sourcing and Procurement:
5 Operations and Production:
6 Warehousing, Storage and Delivery:
7 Sales and Marketing:
8 Non-Market Factors:
9 Non-Market Factors:
10 Customer Service and Support:
11 The Decision Recommendation:
12 Cost and Revenue Projections:
13 Sensitivity Analysis
14 Conclusion:
 LECTURE NO 11

Project selection is the process of choosing a project or set of projects to be implemented by the
organization

This process of carving away the unwanted reality from the bones of a problem is called
modeling the problem

The idealized version of the problem that results is called a model.

Modeling:

“A model is an explicit statement of our image of reality. It is a representation of the relevant

aspects of the decision with which we are concerned. It represents the decision area by
structuring and formalizing the information we possess about the decision and, in doing so,
presents reality in a simplified organized form. A model, therefore, provides us with an
abstraction of a more complex reality”. (Cooke and Slack, 1991)

Criteria for Choosing Project Model:

based on Souder (1973),

1 Realism:
2 Capability
3 Flexibility:
4 Ease of Use:
5 Cost:
6 Easy Computerization:

Types of Project Selection Models:

Of the two basic types of selection models (numeric and nonnumeric), nonnumeric
models are older and simpler and have only a few subtypes to consider. We examine
them first.
 Non-Numeric Models: These include the following:
1 The Sacred Cow:
2 The Operating Necessity:
3 The Competitive Necessity:
4 The Product Line Extension:
5 Comparative Benefit Model
 LECTURE NO 12

Q-Sort Model:

Of the several techniques for ordering projects, the Q-Sort (Helin and Souder, 1974) is one of the
most straightforward. First, the projects are divided into three groups—good, fair, and poor—
according to their relative merits. If any group has more than eight members, it is subdivided into
two categories, such as fair-plus and fair-minus. When all categories have eight or fewer
members, the projects within each category are ordered from best to worst. Again, the order is
determined on the basis of relative merit. The rater may use specific criteria to rank each project,
or may simply use general overall judgment. (See Figure 12.1 below for an example of a Q-
Sort.)

 Numeric Models: Profit/Profitabilit

As noted earlier, a large majority of all firms using project evaluation and selection models use
profitability as the sole measure of acceptability. We will consider these models first, and then
discuss models that surpass the profit test for acceptance.

1 Payback Period
2 Average Rate of Return:
3 Discounted Cash Flow:
4 Internal Rate of Return (IRR):
5 Profitability Index:
6 Other Profitability Models:

PROJECT PROPOSAL

a proposal is an offer or bid to do a certain project for someone

Types of Project Proposals:

1 Internal Proposal:
2 External Proposal
3 Solicited Proposal:
4 Unsolicited Proposal:
 LESSON NO 13
Proposal Effort:

1 Assignment of Proposal to Team Members:

2 Kick-Off Meeting:
3 Preliminary Review of the Proposal Text:
4 Final Review:
5 Publication and Signoff
6 Delivery of the Proposal

Typical Engineering Procurement and Construction (epc) Proposal Contents:

1 Introduction and Summary:
2 Project Description:
3 Scope of Services:
4 Work Plan and Schedule:
5 Project Organization: Estimates, Hours, Costs:
6 Compensation:
7 Qualifications:

LESSON NO 14
Common Sections in Proposals:

The following is a review of the sections you will commonly find in proposals.

1 Introduction:
2 Background on the Opportunity
3 Benefits and Feasibility of the Proposed Project:
4 Description of the Proposed Work (Results of the Project):
5 Method, Procedure, Theory:
6 Schedule:
7 Qualifications:
8 Costs, Resources Required:
 9 Conclusions:
10 Special Project-Specific Sections:
Format Of Proposals:

 Cover Letter With Separate Proposal:

 Cover Memo with Separate Proposal:
 Business-Letter Proposal:
 Memo Proposal:

Below is a list of seven key ingredients of a winning proposal.

1 Message:
2 Response
3 Disclosure:
4 Creativity:
5 Price:
6 Financing:
7 Style:

LESSON NO 15
Planning of Execution:

As described earlier, project planning is a structured sequence of events that lead to a desired set
of objectives

This plan must show:

a) Who is to do what

b) When

c) How

d) Major decisions requirements

Information Required From Planning of Execution:

Following information is required:

 Type of project
 Its capacity and location(s)
  Scope of work to be performed
 Preliminary cost estimation
 Site visitation report
 . Preliminary schedule of major objectives
 Pertinent contract requirements
 . Special design and/or construction requirements
 Climate restrictions
 Environmental study, feasibility study reports, etc
 Proposal document
Following are the basis for Project Manager’s planning endeavors for planning of
execution.

Existing documents:
• Client’s inquiry
• Proposal (as modified/amended in negotiation period)
• Contract and preliminary wok plans (during proposal preparation)

Before Execution Planning:

Before Execution Planning, project manager is required to provide the complete scope
definition of work.
Planning of Execution provide basis to:
a) Schedules
b) Detailed cost estimation
c) Control budget
d) Quality and performance assurance program

Early Stage Documentation by Project Manager:

This includes:

1. Coordination Procedure (CP):

2. Early Work Schedule (EWS):
Example of Building House to Common “Activities in Each Phase” of Project
Planning:
1. Definition Phase:
2. Analysis Phase:
3. Design Phase:
4. Programming Phase:
5. System Test Phase:
6. Acceptance Phase:
 7. Operations, Installation and Use

LECTURE NO 16
Steps in General Planning Process:
There are nine major components of the planning phase:

1. Objective: A goal, target, or quota to be achieved by a certain time

2. Program: The strategy to be followed and major actions to be taken in order to achieve
or exceed objectives
3. Schedule: A plan showing when individual or group activities or accomplishments will
be started and/or completed
4. Budget: Planned expenditures required to achieve or exceed objectives
5. Forecast: A projection of what will happen by a certain time
6. Organization: Design of the number and kinds of positions, along with corresponding
duties and responsibilities, required to achieve or exceed objectives
7. Policy: A general guide for decision making and individual actions
8. Procedure: A detailed method for carrying out a policy
9. Standard: A level of individual or group performance defined as adequate or acceptable

Forecasting also requires an understanding of strengths and weaknesses as found in:

1. Competitive situation
2. Marketing
3. Research and development
4. Production
5. Financing
6. Personnel
7. Management structure

Project Planning Checklist:

These are described below for different areas of operations:

1. Construction Planning:
2. Procurement Planning:
3. Engineering Planning:
4. Quality Control Planning:
5. Financial Planning:
 LECTURE No 17
Elements of a Project Plan:

1. Overview:
2. Introduction:
3. General Approach
4. Contractual Aspects:
5. Schedules:
6. Resources:
7. Personnel
8. Evaluation Methods
9. Potential Problems

Below is detailed discussion on some important parts/aspects of a Project Plan.

1. Introduction/Overview:
2. Mission and Objectives:
3. Work Scope:

The work scope section of the project management plan demonstrates how well the project is
understood.

4. Planning Basis:
 Project Deliverables/End Products:
 Requirements
 Constraints:
 Approaches/Strategies:
 Key Assumptions:
 Specifically Excluded Scope:

Systems Integration

Systems integration (sometimes called systems engineering) plays crucial role in performance
aspect of project. As such, system integration is concerned with three major objectives:

 Performance:
 Effectiveness:
 Cost:

LECTURE No 18
Gozinto Chart for Toy Bus
Important of careful planning can scarcely be overemphasized. Slevin developed list of ten
factors that should be associated with success in implementation projects

 Project Mission:
 Top Management Support:
 Project Schedule or Plan:

There are four basic reasons for project planning:

• To eliminate or reduce uncertainty

• To improve efficiency of the operation
• To obtain a better understanding of the objectives
• To provide a basis for monitoring and controlling work
Categories of Planning:
 Strategic Planning
 Tactical Plans:
 Operational Plans: