Project Management It is a specialized branch of management capable of differentiation from others based on a variety of factors which includes the organization.

Project ManagementProject Management

It is a specialized branch of It is a specialized branch of management capable of management capable of differentiation from others based on differentiation from others based on a variety of factors which includes a variety of factors which includes the organization structure, the the organization structure, the process of planning and control, process of planning and control, human relationhuman relation

ReferencesReferences

Project management- Harold Project management- Harold KerznerKerzner

Project Management – Vasant DesaiProject Management – Vasant Desai

Quantatitive Techniques in Quantatitive Techniques in Management- N.D. VohraManagement- N.D. Vohra

Project Management – Prasanna Project Management – Prasanna ChandraChandra

Project Management – K NagrajanProject Management – K Nagrajan

Project is accomplished by performing a set of activities

Character sticks of ProjectCharacter sticks of Project

ObjectivesObjectivesLife cycleLife cycleDefinite time limitDefinite time limitUniquenessUniquenessTeam workTeam workComplexityComplexitySub-contractingSub-contractingRisk & UncertainityRisk & Uncertainity

Character sticks of ProjectCharacter sticks of Project

Customer Specific natureChangeResponse to environmentForecastingRational choicePrinciple of successionOptimalityControl mechanismMultidisciplinaryConflictsParts of Large Program

Attributes of good Project manager

Planning & organizational skillsPersonal Mgmt skillsCommunication skillsChange orientationAbility to solve problems in totalityHigh energy levelsAmbition for achievementAbility to take suggestion

Taxonomy of ProjectsActivity- industrial , non-industrialLocation – national , internationalProject Completion Time – normal, crashOwnership – private sector, public, joint sectorSize – small , medium , largeNeed– New Project– Balancing Project– Expansion Project– Modernization Project– Replacement Project– Diversification project– Backward Integration project– Forward Integration Project

Government Regulator

Major role in industrial developmentIndividual entrepreneurs search for profitable ventures and function according to government frameworkLays down industrial priorities for country developmentAdopts Industrial licensing policy to control new investments in such areas where growth has attained stauration

Fiscal Policy – influence economic activity of country through the medium of budget. Govt presents details of public revenue and expenditure.Monetary policy – concerned with qty of money and its regulations. RBI regulates the volume of money and its main objective is to control inflation and deflation

Other regulatory measuresOther regulatory measures

Industrial licensingIndustrial licensing

Control over capital issuesControl over capital issues

Control over foreign exchangeControl over foreign exchange

Export promotion and import controlsExport promotion and import controls

Control over monopolies and Control over monopolies and restrictive trade practicesrestrictive trade practices

Control over pricing and distribution Control over pricing and distribution of commoditiesof commodities

Phases of a Project MgmtPhases of a Project Mgmt

Identification

Formulation

Appraisal

Selection

Implementation

Management

Project Identification

Performance of existing industriesAvailability of raw materialAvailability of skilled laborImport / export statisticsPrice trendData from various sourcesResearch laboratoriesConsumption abroadPlan outlays & govt. guidelinesAnalysis of economic and social trendsReviving sick units

Project FormulationPre Feasibility studyFunctional studies- mkt study , raw material , project location, plant size, equipment selectionFeasibility study – Technical– Economic– Commercial– financial

Detailed Project Analysis (DPR)

Detailed Project Analysis (DPR)It is a report to formally communicate the project promoter’s It is a report to formally communicate the project promoter’s

decision of venturing a new project decision of venturing a new project toto financial institutions for financial institutions for their perusal and to government departments for getting their their perusal and to government departments for getting their approvalsapprovals– General infoGeneral info– Background and experience of project promotersBackground and experience of project promoters– Details of proposed project Details of proposed project – Schedule of implementationSchedule of implementation– Project costProject cost– Means of financing projectMeans of financing project– Working capital requirementsWorking capital requirements– Marketing and selling arrangementsMarketing and selling arrangements– Profitability and cash flow estimatesProfitability and cash flow estimates– Mode of repayment of term loanMode of repayment of term loan– Govt approvalsGovt approvals– Collateral securityCollateral security

Feasibility ReportFeasibility Report

Market AnalysisMarket Analysis– Consumption trends in the past and present Consumption trends in the past and present

consumption level.consumption level.– Past and present supply position.Past and present supply position.– Production possibilities and constraints.Production possibilities and constraints.– Imports and exportsImports and exports– Structure of competitionStructure of competition– Cost structureCost structure– Elasticity of demandElasticity of demand– Consumer behaviorConsumer behavior– Distribution channels and marketing policiesDistribution channels and marketing policies– Administrative, technical and legal constraintsAdministrative, technical and legal constraints

Technical AnalysisTechnical Analysis

Preliminary tests and studiesPreliminary tests and studies

Availability of raw materialsAvailability of raw materials

Selected scale of operation is optimalSelected scale of operation is optimal

Production process chosen is Production process chosen is suitablesuitable

Machinery is appropriateMachinery is appropriate

Supplementary engineering work to be Supplementary engineering work to be providedprovided

Proposed layout of site and bldg Proposed layout of site and bldg

Work schedules to be realistically drawnWork schedules to be realistically drawn

Appropriate technologyAppropriate technology

Financial AnalysisFinancial Analysis

Investment outlay and cost of projectInvestment outlay and cost of project

Means of financingMeans of financing

Cost of capitalCost of capital

Projected profitabilityProjected profitability

Break even pointBreak even point

Cash flows of the projectCash flows of the project

Investment worthwhilenessInvestment worthwhileness

Projected financial positionProjected financial position

Level of riskLevel of risk

Social Profitability AnalysisSocial Profitability Analysis(Economic Analysis)(Economic Analysis)

Economic cost and benefit of projectEconomic cost and benefit of project

Impact of project on distribution of Impact of project on distribution of income in societyincome in society

Impact of project on the level of Impact of project on the level of savings and investment in the savings and investment in the societysociety

Contribution towards self-sufficiency, Contribution towards self-sufficiency, employment and social orderemployment and social order

Ecological AnalysisEcological Analysis

Environmental damageEnvironmental damage

Restoration measuresRestoration measures

Criteria for selecting a Criteria for selecting a particular Projectparticular Project

☀Investment SizeInvestment Size☀LocationLocation☀TechnologyTechnology☀EquipmentEquipment☀MarketingMarketing

Importance of Project Importance of Project IdentificationIdentification

Economic DevelopmentEconomic Development

Employment and Income generationEmployment and Income generation

Substantial Financial OutlaysSubstantial Financial Outlays

Basic Infrastructure and Basic Infrastructure and EnvironmentEnvironment

Establishing the Project

InitiatingPlanningOrganizingExecutingDirecting and Controlling

Skills required of a project Manager

Leadership skillsTeam Building SkillsConflict Resolution SkillsTechnical skillsManagerial skills

Organizing Human Resource

Project ControlProject ControlCostCost

TimeTime

Quality / technical performanceQuality / technical performance

Examples of control systemsExamples of control systems Work breakdown structureWork breakdown structure Bar chartBar chart Program progress chartProgram progress chart Monthly status reportsMonthly status reports Earned value analysisEarned value analysis Pert cost systemPert cost system PERT CPM networksPERT CPM networks Network SimulationsNetwork Simulations