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Project Management& Control
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What is a Project ?
A project is a sequence of unique, complex
and connected activities having one goal or
purpose and that must be completed by aspecific time, within budget, and according to
specifications
!Projects are the "uilding "loc#s of an
$nvestment Plan%
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Attributes/Characteristics
• Complex Activities
Not simple, repetitive acts, such as mowingthe lawn, running the weekly payroll, washing
the car, or loading the delivery truck
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Attributes/Characteristics
• Connected Activities
• There is some order to the sequence inwhich the actiities that ma!e u" the
"ro#ect must be com"$eted% Connected&
ness 'o$$ows 'rom the 'act that the out"ut'rom one actiity is in"ut to another%
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Project Attributes (Contd)
• ne !oal ) *ro#ects must hae a sin+$e +oa$ as com"ared
to a "ro+ram
• "peci#ied $ime
) *ro#ects hae a s"eci'ied com"$etion date
• %ithin &udget ) *ro#ects a$so hae resource $imits "eo"$e,
money, machines-
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%hat is a Project• According to "peci#ication
) The customer or reci"ient o' the
de$ierab$es 'rom the "ro#ect e"ects a
certain $ee$ o' 'unctiona$ity and qua$ity
'rom the "ro#ect% These may be se$'&
im"osed or customer&s"eci'ied, and are
'ied as 'ar as the "ro#ect mana+er is
concerned%
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%hat is a Program'''
A program is different from a
project Programs are larger in
scope and comprise multiple
projects
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%hat is a Project (Contd)
• $he "cope $riangle $ime, Cost,esources
TimeCost
Resources
Scope
andQuality
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Classi#ication o# Project $ypes
Projects can be classified as social sector andinfrastructure ome examples are'
(ransportation' )ighways, mass transit, airports
*tilities' +lectric power, gas, telephones
+ducation' chools, colleges, dormitories
Public afety' Police, fire, ational guard
-ecreation' Par#s, playgrounds, historic sites
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Classi#ication o# Project $ypes
ee$o"ment arbors, dams, irri+ation,
esearch ea$th, s"ace, a+ricu$ture
e'ense Mi$itary equi"ment and systems
Conseration 5orests, shore$ines, "o$$ution
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Project *anagement
Project Management is an organi.ed venture formanaging projects $t involves scientific application of
modern tools and techniques in planning, financing,
implementing, monitoring, controlling andcoordinating unique activities or tas#s to produce
desirable outputs in consonance with pre/determined
objectives, within the constraints of time, cost, quality
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Projects in Contemporary rgs
0 Project Mgt Provides organi.ations with
powerful tools that improve its ability to
plan, implement and control its activities
as well as the ways in which it utili.esits people and resources
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Projects in Contemporary rgs
0 (he society demands new methods of management
because'
1 expansion of #nowledge
1 2rowing demand for complex, sophisticated,
customi.ed goods and services
1 Creation of worldwide competitive mar#ets for
production and consumption of goods and services
0 (he problems thus have to be solved by the teams
rather than the individuals
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Program, $ask, %ork package
0 Program'
-efers to a an exceptionally large, long range
objective that is bro#en down into a set of projects
0 Projects are further divided into tas#s
0 (as#s are split into wor# pac#ages
0 3or# pac#ages are composed of wor# units
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*odern $ools + $echniue
0 P+-( 4Program +valuation & -eview (ech50 6inear -esponsibility Charts
0 2antt Charts
0 Milestone Charts
0 3or# "rea#down tructures
0 Project Action Plans
0 Computers
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Project -i#e Cycle
0 Conception7selection0 Planning
0 $mplementation
0 Control
0 +valuation
0 (ermination
1 3hat is the difference between a project and a
process88
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%hat is Project Planning '0 $t is complete road map to go from point A to "
0 Project planning is a determination of how
to initiate, sustain, and terminate a project
0 Project planning starts with the development of a
vision / the ability to see something that is
invisible to others
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%hy Plan a Project '
0 (o eliminate or reduce uncertainty
0 (o improve efficiency of the operation
0(o obtain a better understanding of theobjectives
0 (o provide basis for monitoring and
controlling wor#
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Project *anagement Processes
*$annin+ "roides documented eecutin+ and the u"dates as
the "ro#ect "ro+resses
$nitiatingProcesses
Planning
Processes
ControllingProcesses
+xecutingProcesses
ClosingProcesses
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Project Planning Considerations
0 (oo often people perceive project planning
as only techniques or concepts such as
P+-(, 2A(( charts etc )owever,
project planning is much wider activity
with following #ey considerations
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Project Planning Considerations
1 Cost estimating and budgeting.
1 Technology strategies scheduling.
1 Specification of deliverables.
1 Resource usage estimating.
1 elineation of organi!ational structure.
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Project Planning Considerations0 People in general find that it is more
comfortable to do than to plan
0 ot too surprisingly, the inclination of most
PMs to s#ip the strategic phase of project
management 4planning5 and to start the
project
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The 6ision
0 Project planning also starts with a vision (he
most important factor for high performance is a
clear and elevating vision
0 3hen the vision statement is believed and
frequently tal#ed about by people, it ta#es on a
life of its own and becomes important to
everyone
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Control and .valuation
0 Control entails continual monitoring of project
progress, while evaluation involves periodic stoc#/
ta#ing
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Control and .valuation
0 Control focuses on the details of what is occurring in
the project, whereas evaluation is more concerned
with the big pictureControl activities are the responsibility of the project
manager, while evaluations are typically carried out
by an individual or group not directly wor#ing on the
project 4so as to maintain objectivity5
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Project *anager
0 Project "anager is responsible for the project from
cradle to grave.
0 This person #ill ta$e responsibility for planning%
implementing% and completing the project.0 The P" can be chosen and installed as soon as the project
is selected for funding or at any earlier point .
0 P" is chosen late in the project life cycle% usually to
replace another P".
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/unctional *anager 0s P*
88888888 8888888888888
8888888888888888888
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Project rgani1ation
&unctional 'rgani!ation0 Project is made a part of one of the
functional divisions of the firm.
0 "ajor (dvantages 1 "a)imum fle)ibility in the use of staff.
1 *ndividual e)perts can be utili!ed by many
different projects.
1 Specialists in the division can be grouped to
share $no#ledge and e)perience.
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5unctiona$ 7r+aniation
1 9ccasionally in functionally organi.ed projects,
no individual is given full responsibility for the
project
1 -esponse to client needs is slow and arduous
1 Project issues that are directly within the interest
area of the functional organi.ation may be dealt
with carefully but those outside normal interestareas may be given cold response if not totally
ignored
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Pure Project rgani1ation
* r o + r a m M a n a + e r 6 % * % M a r ! e t i n + 6 % * % M a n u ' a c t u r i n + 6 % * % 4 9 2
* r e s e n d e n t
Mar#eting
Manufacturing
-&:
;inance
Personnel
Manager, Project A
Manager, Project "
Mar#eting
Manufacturing
-&:
;inance
Personnel
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Pure Project rgani1ation
1 (he lines of communication are shortened and PM
communicates directly with senior corporate
management
1 (he project team that has a strong and separate identity
of its own tends to develop a high level of commitment
from its members
1 "ecause authority is centrali.ed, the ability to ma#e
swift decisions is greatly enhanced
1 *nity of command exists
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Project rgani1ation
1 Pure project organi.ations are structurally simple
and flexible which ma#es them relatively easy to
understand and to implement
1 isadvantages
0 3hen the parent organi.ation ta#es on several projects, it is common for each one to be fullystaffed (his can lead to considerable duplication ofeffort
0 PM may stoc#pile equipment and technicalassistance in order to be certain that it will beavailable when needed
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1 $n pure project organi.ations, the
project ta#es on a life of its own (eam
members form strong attachments to
the project and to each other
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The Matri 7r+aniation
Advantages of the pure project organi.ation with
some of the desirable features of the functional
organi.ation, and to avoid some of thedisadvantages of each, the matrix organi.ation
was developed
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*atrix rgani1ation
P r o g r a m m a n a g e r * a n u # a c t u r i n g * a r k e t i n g / i n a n c e ) 2 3 P e r s o n n e l
P r e s i d e n t
PM< = < > ? >
PM> < ? ? > ?
PM= = > = > <
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*atrix rgani1ation• Advantages
1 The project is the point of emphasis. P" ta$es
responsibility for managing the project% for bringing it in
time% #ithin cost% and to specifications
1 There is less an)iety about #hat happens #hen the project
is completed
1 Response to client needs is as rapid as in the pure project
case.
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*atrix rgani1ation (Contd)
1 $f several projects simultaneously under way, matrixorgani.ation allows a better company wide balance of
resources to achieve the several different
time7cost7performance targets of the individual projects
0 isadvantages
1 (he movement of resources from project to project in
order to satisfy the several schedules may foster political infighting among the several PMs
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Causes o# Project /ailure0 Projects that have failed generally display several of the following
characteristics' 1 (he customer@s conditions of satisfaction have not been
negotiated
1 (he project no longer has a high priority
1 o one seems to be in charge
1 (he schedule is too optimistic
1 (he project plan is not used to manage the project
1 ufficient resources have not been committed
1 Project status is not monitored against the plan
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Causes o' 5ai$ure
0 o formal communications plan is in place
0 (he project has lost sight of its original goals
0 (here is no change management process in place
0 ;oreign aided projects' bureaucracy of the
2overnment