Project Management 01

Assistant Professor Dr. Aurangzeb Z. KhanDepartment of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan Slide 1

What is a Project? (Sample Definitions 1)

There are a large number of project definitions!

Example 1:

A project is a temporary endeavor undertaken to create a unique

product, service, or result

(Guide to the Project Management – Body of Knowledge,

the Project Management Institute, 3rd. Ed., 2004, p. 5)



Example 2:

A project is a sequence of unique, complex and connected activities having

one goal or purpose that must

be completed by a specific time, wthin budget and according to specification

(Robert K. Wysocki / Robert Beck Jr. / Daniel B. Crane, Effective Project Management, John Wiley & Sons, 2002, p. 65)



Example 3:

A project is a complex, nonroutine, one-time effort limited by time,

budget, resources, and performance specifications

designed to meet customer needs

(Clifford F. Gray / Erik W. Larson, Project Management:

The Managerial Process, 2. ed., p. 15)



Example 4:

Projects are ad hoc, resource-consuming activities used to implement

organizational strategies, achieve enterprise goals and objectives, and contribute to the realization of the

enterprise‘s mission

(David I. Cleland / Lewis R. Ireland, Project Management:

Design and Strategic Implementation, 4th ed., p. 10)


Subprojects Subprojects are smaller, more manageable components of

larger, more complex projects

Subprojects have their own goals and outputs (deliverables); the deliverables together constitute the final deliverable

Subprojects are comprised of project team members and are headed by subproject managers who, analogous to the project manager, must have excellent decision-making, communication and other requisite skills, and be in a position to manage the implementation of the subproject work effectively and efficiently

Subprojects have, analogous to the main project in which they are integrated, their own scope, schedules, costs, human resources and risks


SubprojectsExample: The Sydney Olympic Games 2000

EventsEvents

Venues, FacilitiesAccommodation

Venues, FacilitiesAccommodation

TransportTransport

Media Facilities and Coordination

Media Facilities and Coordination

TelecommunicationsTelecommunications

Security Arrangements

Security Arrangements

Medical CareMedical Care

Human Resourcesand Volunteers

Human Resourcesand Volunteers

Cultural OlympiadCultural Olympiad

Pre-Games TrainingPre-Games Training

IT-ProjectsIT-Projects

Opening and ClosingCeremonies

Opening and ClosingCeremonies

Public RelationsPublic Relations

FinancingFinancing

Test Games and Trial Events

Test Games and Trial Events

Sponsorship Management

Sponsorship Management

The Sydney Olympic Games 2000 was a highly complex project which comprised several distinct work areas, each of which could be considered as subprojects, in their own right, and which all had to be integrated and coordinated within the framework of the overall olympic project.


Programmes (1)

A programme is basically a group of related projects managed in

a coordinated way to obtain benefits and control not

available from managing them individually

AfforestationAfforestation

ElectrificationElectrification

Poverty AlleviationPoverty Alleviation

Primary Education PromotionPrimary Education Promotion

ImmunizationImmunization

PrivatizationPrivatization

Space ExplorationSpace Exploration

WeaponizationWeaponization

Urban RegenerationUrban Regeneration

Water Resource DevelopmentWater Resource Development

Project AProject A

Project BProject B

Project CProject C

ProgrammeX

ProgrammeX

Project DProject D

Project EProject E

Project FProject F

EX

AM

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OF

PR

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RA

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ES

EX

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PL

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OF

PR

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Programmes (2)

A CAPITALINVESTMENTPROGRAMME

A CAPITALINVESTMENTPROGRAMME

May comprise following projects

Project for Upgrading EquipmentProject for Upgrading Equipment

Project for Training PersonnelProject for Training Personnel

Project for Expanding Production Lines

Project for Expanding Production Lines

Project for Acquiring Large-ScaleFunding

Project for Acquiring Large-ScaleFunding


• Programmes and projects have goals which define their purpose of existence

• Programmes and projects have life-spans defining a starting and ending point in time

• Programmes and projects necessarily incur a cost

• Programmes and projects require application of a methodology in order to make the programme or project successful

• Programmes and projects add value to an organization and must be „strategically aligned“ with it

Programmes and Projects(Similarities)


• Programmes may have multiple overarching goals whereas projects have one prime goal

• A programme has a longer life-span and obviously costs more than the combination of all the projects which constitute it

• A programme is inherently more complex than a constituting project – it has a broader scope and may require extensive coordination between its various constituting projects

• Whereas a project results in the creation of an output and is then ended, a programme must integrate and maintain the operationality of that output for a specified period of time

Programmes and Projects(Differences)


What is a Process? (1)

A process can be defined as a system of operations in the design, development and production of something,

whereby inherent in such a process is a series of actions,

changes, or operations that bring about an end result.


What is a Process? (2)

According to the Project Management Institute, a process

can also be defined as

„a set of inter-related actions and activities that are performed to

achieve a prespecified set of products, results, or services“.


A Project‘s Defining Characteristics

All projects have one prime goal, for e.g., the design and development of a new camera, construction of a railway station, regeneration of a derelict neighbourhood, and optimization of manufacturing processes in an organization.

GOAL

The project goal, along with the requirements and predetermined technical specifications which must be met by the project team, determines the scope of the project.

In addition to the prime goal, projects can have any number of ancillary goals (objectives).

<Project Charter, Statement of Work, Scope Statement>


.

COSTAll projects must incur a cost because they consume resources. There can be a multitude of cost items, for e.g., for the salaries and wages of project staff, administration and overheads, project infrastructure, raw materials and equipment used, rents, consultants and for the work performed by contractors.

Estimating the cost of a complex project with a high degree of precision can be difficult in its early stages. Cost overruns are common on projects and are considered a manifestation of project failure.

<Project Cost Estimating & Budgeting, Cost Baseline, Earned Value Technique>



TIME

The project life-span can range from very short, for e.g., a week for rearranging books in a library to very long, for e.g., ten years for the construction of a large dam with attached electric power generating station.

It is often difficult to determine with accuracy the life-span of a project due to numerous factors which can influence the project schedule. Like cost overruns, schedule overruns too are common in projects andthey are also considered a manifestation of project failure.

All projects have a life span, corresponding to the interval between the point in time the project formally commences and the point in time when it is completed or prematurely terminated.

<Project Phases, Milestones, Activities, Gantt Charts, Network Diagrams, PERT/CPM>



UNIQUENESSAll projects are unique! No two projects are completely alike – even if they have the same goal and scope, same life-span and allocated budget, and same project manager and team.

Each project will always differ, however small, in at least some respect from another similar project, for e.g., in the manner the project was managed and methodology applied, in the project stakeholders and the level of interaction with them over the project life-span, in the risks and problems which surfaced in the course of planning and implementing the project, and so forth.



SATISFYING NEEDSAll projects are undertaken in order to satisy a customer‘s need (or exploit an opportunity) - in or outside the project-undertaking organization. Sometimes projects are done in order to conform to a statutory requirement.

Examples of projects undertaken to satisfy an internal need/opportunity include the introduction of a corporation-wide IT Database System, training of employees in TQM and expansion of manufacturing capacity.

Examples of projects undertaken to satisfy an external need/opportunity include new product or service development for a specific client or for mass marketing, and contract work in a building construction project.

Examples of projects undertaken to conform to the law include installation of a filter to reduce the firm‘s pollution emission levels and remodelling a worker hostel as a precautionary measure against fire hazard.



Project Complexity Some Examples of „Simple Projects“

Research Papers

Tree Planting Campaigns

Relief Collections

Examinations

Relocating

Weddings

Painting

Parties


Project Complexity Some Examples of „Complex Projects“

Bridges

Ocean Liners

Commercial Aircraft

Olympic Games

Nuclear Power Stations

Man on the Moon

Dams

Skyscrapers


Major Projects in Pakistan: Selected Examples

(includes on-going projects and projects in consideration)

Tarbela and Mangla Dams, Kalabagh Dam (?)

Habib Bank Plaza, Muslim Commercial Bank Building

Karakorum Highway, Islamabad-Lahore Motorway, Islamabad-Peshawar Motorway (under construction)


Major Projects in Pakistan: Examples (includes on-going projects and projects in consideration)

Jinnah International Airport, Allama Iqbal International Airport, Islamabad Airport (under construction)

Karachi Nuclear Power Project, Chashma Nuclear Power Plant

Turkmenistan to Pakistan Gas Pipeline (under consideration), Iran to India (via Pakistan) Gas Pipeline (under consideration)


Projects in a Historical PerspectiveProjects are presumably as old as mankind itself. Projects in antiquity, and even in the medieval period tended, by and large, to be architectural in nature. Selected examples of prominent projects in the historical context are:

the seven wonders of the ancient world the gothic cathedrals of Europe the palaces, mosques and mausoleums of the Mughals, Safavids and Ottomans Temple complexes in India and South-East Asia and Central and South America Castles, fortresses, military campaigns

With the rapid advancement in technology, knowledge, specialization, resource availability and managerial capabilities – projects have become much more complex and diverse


How Important are Projects?

Projects are the building blocks of the myriad achievements – architectural,

artistic, economic, scientific, technological, and in many other fields - which

characterize our human civilization

Life, with all the comforts and niceties as we know it today, would not be

possible without projects


What is „Project Management?“ (1)

Project Management can be defined as

„a method and a set of techniques based on the accepted principles of

management used for planning, estimating and controlling work

activities to reach a desired end result on time – within budget and according

to specification“

(Robert K. Wysocki / Robert Beck Jr. / David B. Crane, Effective Project Management, 2. ed., John Wiley & Sons, 2002, p. 79)


What is „Project Management?“ (2)

Project Management can also be defined as a

„unique process, consisting of a set of coordinated and controlled activities

with start and finish dates, undertaken to achieve an objective conforming to specific requirements, including the

constraints of time, cost and resources“

[ISO 9001:2000]


What is „Project Management“ (?)

Project management is the planning, organizing, directing, and controlling of company resources for a relatively short-term

objective that has been established to complete specific goals and objectives. Furthermore, project management utilizes the

systems approach to management by having functional personnel (the vertical hierarchy) assigned to a specific

project (the horizontal hierarchy)

Harold Kerzner, Project Management: A Systems Approach to Planing, Scheduling and Controlling, John Wiley & Sons, Inc., New York et. al.,

7. ed, 2001, p. 4


Project Management Process Groups

INITIATIONINITIATION

PLANNINGPLANNING

EXECUTIONEXECUTION

MONITORING &CONTROL

MONITORING &CONTROL

CLOSINGCLOSING

PROJECTSPROJECTS


The Functions of Project Management

ProjectResources

CONTROLLING

Who judges results and by what standards?

PLANNING

What are we aiming for and why?

ORGANIZING

What‘s involved and why?

DIRECTING

Who decides what and when?

MOTIVATION

What brings out the best in people?

David I. Cleland / Lewis R. Ireland, Project Management: Strategic Design and Implementation, 4th ed., p. 42.

The basic functions of general management equally apply to project management


A „Typical“ Project Life-Cycle

Phase 1: Conceptual

Planning Implementation

Phase 3: Termination

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• Identify Need• Establish Feasibility• Identify Alternatives• Prepare Proposal• Develop Basic Budget and Schedule• Identify Project Team

• Implement Schedule• Conduct Studies and analyses• Design System• Build/test prototypes• Analyze results• Obtain approval for production

• Procure Materials• Build/ test tooling• Develop support requirements• Procure System• Verify Performance• Modify as required

• Train functional personnel• Transfer materials• Transfer responsibility• Release resources• Reassign project team members

David I. Cleland / Lewis R. Ireland, Project Management: Design and Strategic Implementation, 4th ed., p. 50.

ClosingInitiation


Managerial Actions in the Project Life-Cycle Phases

Planning Phase

Define the projectorganization

Define the projecttargets

Prepare the schedulefor the execution Phase

Define and allocate tasks and resources

Build the project team

Conceptual Phase

Determine that a project is needed

Establish goals

Estimate the resources that the organization is willing to commit

„Sell“ the organization on the need for a project approach

Make key personnel appointments

Execution Phase

Perform the workof the project(i.e. design, con-struction, production,Site activation, testing, delivery etc.)

Termination Phase

Assist in transfer ofProject product

Transfer human and non-human resourcesto other organizations

Transfer or completeCommittments

Terminate project

Reward personnel


Project Resource Requirements Over Time

Lev

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ired

Time – Project Life-Cycle

Project Initiation Project Planning Project implementation Project Closure

Low resource

usage

Low resource

usage

Resource usage increasesas project work

expands

Resource usage increasesas project work

expands

Resource usage high as project Implementation goes

into full-swing

Resource usage high as project Implementation goes

into full-swing

Resourceusage goesdown sig-nificantly

Resourceusage goesdown sig-nificantly

Budget ($)


Core Truths About Projects and Project Management

Major projects are considered the building

blocks in the design and implementation

of an organization’s strategy

Projects are an important means

for ensuring an organization’s

survival and growth


Core Truths About Projects And Project Management

Project Management helps organizations

successfully tackle change in an environment

– economic, social, political, legal

technological, competitive, international and

others – which is characterized by a high

degree of complexity, dynamism and uncertainty


Core Truths About Projects And Project Management

Project Management allows a focused,

integrated and process-driven application

of an organization’s resources for

effective and efficient realization

of the organization’s goals

and objectives, and its mission


Major Benefits of Project Management (1)

Timely development of complex products and services

Notable organizational processes improvements

Cost reduction

Accomplishment of more work in less time and with less resources without compromising quality

Enhancement in the quality of the goods and services produced

More customer influence on product or service design, cost, schedule and project plan, and enhanced customer satisfaction

Higher project schedule and cost estimation accuracy

More appropriate in terms of cooperation, communication and coordination across functional-organizational delineations

Usually more appropriate for highly complex and interdependent tasks

increased employee motivation and productivity


Increased profitabilty for the enterprise and increased shareholder

value

Fosters a new spirit of dynamism in the enterprise

The focussed, flexible and systematic nature of PM makes the

organization more likely to realize its goals, objectives and mission

in an effective and efficient manner

PM is solutions-driven and offers a structured process for effectively

tackling problems

Enhancement of the organization‘s reputation and business

prospects

Virtually all industries can benefit from project management

Major Benefits of Project Management (2)

Project Management 01

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