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Page No. 1
Entrepreneurship and Project Management
Dr. Maneesha Pednekar
23rd July 2014
Session 1
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Objectives
The objective of this session is to :
Introduction to Project Management
Project v/s Operations
Project Manager v/s Manager
Need for Projects
Selection of Projects
Organization Structure
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Introduction to Project Management
New International Airport,
Mumbai
Mumbai Metro
All of mankinds greatest accomplishments- from building the great
pyramids to putting a man on the moon- began as a project
Man on moon
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Some more Project examples
Making a movie
Restructuring a hospital
Implementing a new MIS system
On merger of 2 companies; implementing a cultural assimilation
program
Implementing a new Software security system
Building a new office
..
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Some examples from industry..
Company: Nike
Project: Online supply chain link to manufacturing partners
Payoff: Lead time for new shoe development has been reduced from 9 months to 6
months. Better forecasting has reduced speculation on what to produce from 30% to
3 %. GM has increased by 2.1%
Company: FBI
Project: Digitizing millions of fingerprint cards and connecting law enforcement
agencies to the data base
Payoff: Local law enforcement departments can have the FBI check against 46
million sets of finger prints and respond within 2 hrs. In addition, the FBI conducts
background checks for pvt enterprises(eg. schools, insurance). this later resulted in
revenues of 152 million per year
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A project is a temporary endeavor designed to produce a
unique product, service or result with a defined beginning and
end (usually time-constrained, and often constrained by
funding or deliverables), undertaken to meet unique goals
and objectives, typically to bring about beneficial change or
added value.
What is a Project
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Temporary
Has a start & end date
Unique
Progressively elaborated
Time, cost and performance requirements
Characteristics of a Project
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Operations:
An organizational function
performing the Ongoing execution of
activities that provide
a Repetitive service and/or produce
the same product.
Project:
A Temporary endeavor undertaken
to create a Unique result, service or
product."
Project v/s Operations
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Operations are a permanent feature and remain there until
changed. The change in an operation will be bought about by
the project and the new process will be the outcome of the
project
Operations are repetitive in nature; projects are unique
Project v/s Operations
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Page No. 11Project Manager v/s Manager
Both Managers and Project managers are planning, monitor, control,
motivate. But Project Managers:
Create a project team and organization where none existed
handle challenges posed by the nature of projects -Unique and progressive elaboration
often work with part time participants loyal to their functional departments
work with diverse stakeholders
must balance the tension between customer expectations & what can be provided
must ensure tradeoffs are made between time, cost and performance
lack of technical knowledge
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Project Manager Manager
Role ends with project Routine
Temporary team Stable organization
Many different skills Specialist skills
Work not done before Work repeatable
Time, cost and scope constraints Annual planning cycle
Difficult to estimate time and budget Budgets set and fixed events
Project Manager v/s Manager
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Exercise 1
Exercise 1 A day in
the life of the Proje
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Compression of the product lifecycle
Global competition
Knowledge explosion
Corporate downsizing
Increased Customer focus
Importance of Project Management
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Business need: Setting up a new business, entrepreneurial vision for new
technology
Market need
Customer request for project management-eg IT projects, civil, electrical projects
Technological push: developing new technology or making products compatible to
new technology
Organizational Structure change or expansion
Legal or social requirement
Need for Project Management
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Where did this project come from?
Why are we doing this project?
How can all these projects be first priority?
Where are we going to get the resources to
do all these projects?
Many organizations have not been able to create a coherent link between
their strategy and project selection
Prioritizing Projects
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If Project Managers do not understand the link to strategy:
Focusing on problems and solutions low in priority
Focusing on the immediate customer rather than the largest entire market
Overemphasizing on technology rather than focusing on objective
Trying to solve every customer issue with a product or service rather than a
80:20 rule
Engaging in a never ending search for perfection
Project link to Strategy
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Organization Strategy and Project selection
Strategy is implemented through projects. Every project should have a clear
link to the organizations strategy.
Apples mission statement:Apple is committed to bringing the best personal
computing experience to students, educators,
creative professionals and consumers around the
world through its innovative hardware, software
and internet offerings
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Compliance
(Must do)
Operational Strategic
Classification of projects
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Project, Program and Portfolio
Projects are vehicles for
implementing the organizations
vision, short and long term plans
and organization strategy
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Page No. 21Program
The term program is applied to a group of related projects managed in a coordinated
way to obtain benefits and control not available from managing them individually.
Program must be managed in such a way that the quantum and timing of
allocating the resources is optimized for most efficient use of resources.
Must take into account the interdependencies of the products of the projects for
delivery strategic thrust
Eg: Interconnected highways network connecting 4 metros of india
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Portfolio
The term Portfolio is applied to a collection of projects and programs that are
grouped together for pursuing objectives focused on some specific business strategy
- Portfolio is much larger than projects and programs
- need not be limited to inter-related programs
- much wider scope
- eg. the portfolio of diversified large companies may include projects and programs
in a wide spectrum- eg. petrochemicals, textile, telecom etc
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Selection of projects
Non-Financial Criteria
To capture larger market share
To make it difficult for competitors to enter the market
To develop an enabler product
To develop core technology
To reduce dependency on unreliable suppliers
To prevent government intervention and regulation
Financial Criteria
Payback model
Net Present Value
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Page No. 24Project selection Criteria(multi model)
Checklist Multi-weighted scoring model
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Organization Structure
Functional
Dedicated Project teams
Matrix
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Functional Organization
Advantages
No Change
Flexibility
In-Depth experience
Easy Post project transition
Disadvantages
Lack of focus
Slow
Poor integration
Lack of ownership
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Dedicated Project Teams
Advantages
Simple
Fast
Cohesive
Cross functional integration
Disadvantages
Expensive
Internal Strife
Limited Technological Expertise
Difficult Post Project Transition
Project
team
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Matrix
Advantages
Efficient
Strong Project focus
easier post project transition
flexible
Disadvantages
Dysfunctional conflict
infighting
stressful
slow
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Project Organization
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Size of project
Strategic importance
Novelty and need for innovation
Need for integration(number of departments)
Environmental complexity(number of external interfaces)
Budget and time constraints
Stability of resource requirements
Structure considerations
