Unit No – 1 (Basic of Project)

 Concept of project management

 Characteristic of a project
 Project classification
 Importance of project management
 Type of project
 Project organizational structure
 Project life cycle

Project

Manager have to handle various projects during their careers’ software consultant may need to implement a
database management project, a construction engineering may have to handle the construction project of a
building, a scientist in the research and development department of an organization may be given a research
project and simply, for an entrepreneur, starting a new business or a manufacturing unit is a project, A project
requires manpower, money, material, machine etc.

Example of project

 Commissioning a new industrial unit

 Construction of a house
 Setting up of an office
 Developing a technology
 Launching a new product in the market
 Managing any event in college
Planning a project requires identification of various activities involved in the project and the sequence in which
these activities have to be performed. A well planned project leads to completion in the schedule time, thus
avoiding unnecessary delays and extra costs.

A project is a group of unique, interrelated activities that are planned and executed in a certain sequence to
create a unique product or service within a specific time frame, budget and the client specifications.

or

A project is a set of activities which are networked in an order and aimed towards achieving the goal of a
project. Upon the completion of all the activities the goal of the project would have been achieved. A project is
undertaken to achieve a purpose.

or
A project is a temporary and one time exercise which vary in duration. It is undertaken to address a specific
need in an organization, which may be to create a product or service or to change a business process. This is in
direct contrast to how an organization generally works on a permanent basis to produce their goods or service.

or

A project may be defined as a series of related jobs usually directed towards some major output and requiring a
significant period of time to perform.

or

A project is a set of activities which are networked in an order and aimed towards achieving the goal of a
project. Upon the completion of all the activities the goal of the project would have been achieved.

A project may be related to

 Education
 Construction
 Event
 Finance
 Human recourses
 Software
 Research

Management

Management is the techniques of understanding the problem, needs and controlling the use of resources such as
cost, time, management and materials. Management is an optimum use of all the recourses used in the project.

Management of all activities related to particular project like Time Management, Marketing Management,
Operation Management, Human Resource Management, Finance Management etc.

Project Management

Project Management is planning, organizing, monitoring and controlling of all aspects of a project and
motivation of all involved to achieve project objective of safety and within a defined time, cost and
performance.

or
It is the art of planning, directing controlling recourses like people, equipment, material to meet the cost, time,,
manpower, hardware and software resources involved in a project.

Objective of Project

Major’s objective - Performance or Quality of project as per customer requirement

- Containment of expenditure within budge

- Timely implementation and completion of project.

Other objective of Project – proper safety of people, machine, material and other recourses

- Enhance public image

- Minimizing accident or breakdown
- Minimize wastage in the project
- Maximum utilization of all recourses
- High level of automation

Characteristic of project / features of project

 Unique activities (every project have different activities)

 Sequence of activity (all activities of project should have proper routing and then scheduling)
 Interrelated activities (some activity may be independent or some activity may be dependant0
 Well defined, established and unique objective (every project may have different project)
 Specified time (every project may have different duration of project)
 Allocated budget (every project may have different budget)
 Each project has its own project life cycle reflected by growth, maturity and decline.
 Overlapping of activities
 Sharing of resources
 Non – continuous life span with a beginning and an end.
 Involvement of several departments and professionals
 A project has a number of sources but one end or sink.
 Project is dynamic in nature and changes in original plan are a normal feature in a project.
 Team spirit is required to achieve objective of project as different individual from varied discipline are
involved in the project.
 Every project has its own risk and uncertainty associated with it.
Classification of project / type / kind of project

 Based on profit (Industrial and non industrial)

 Bases on technology involvement (conventional, non conventional, new, high, low technology )
 Based on size and scale (large, medium, small )
 Bases on ownership and control (public sector, private sector, joint sector )
 Base on Infrastructure (road,railways,flyover,hospitals,institute,airport)
 Base on scope and significance (national and international )
 Based on degree of change (inventive, discovery, innovative, adaption)
 Based on speed (normal, crash, disaster)
 Base on beneficiary (industrial, ancillary, consumers)
 Base on purposes (new project, mergers, diversification, modernization, replacement, up gradation )

Project life cycle/ Process of Project management/ functions of project management

Project life cycle refer to a logical sequence of activities that are performed to achieve project goal of objective.
It can also be termed as project cycle. The life cycle of every major project include seven steps like

 Identification – It refer to selection of one most feasible project idea out of several alternative.
 Preparation – It refer to developing the identified and selected ideas.
 Appraisal – Perform systematic and comprehensive evaluation of every aspect of the select ideas to
prepare the final project plan. Project appraisal deals with market appraisal, technical appraisal, financial
appraisal, economic appraisal, managerial appraisal, environmental appraisal.
 Planning and organizing – It refer to designing the course of actions required to achieve the objectives of
the project like organization structure, manpower, schedule and budget, licensing and government
clearance, infrastructure of project, finance, site preparation, selecting vendors
 Presentation – Involve creative a detail plan to send it to appropriate entities
 Implementation – It refer to a stage in which the approved project plan is executed. Major bulk of work
(80 – 85%) project is done in this phase like preparation of equipment and machinery, civil construction,
placing orders for recourses, commissioning of plant.
 Monitoring – It involve assessing and monitoring the progress of the project at every stage to identifying
the loopholes and take corrective action if required.
 Closing – It refer to the formal closure of project. It involve handling over of the facilities built to the
customer ( project accounts are closed, outstanding payment is made, dues are collected, manual and
catalogued are handed over, The employee and other resources are released to be used for other
activities)
  Evaluation – Calls for the re assessment of the efficiency and performance of the project after the
completion of project.

Importance of project management / Need of project management

Project management is necessary because

 A project requires huge investment which should not go waste.

 Project objective may not be achieved (customer satisfaction, time and quality)
 A loss in any project would have direct or indirect impact on the society.
 Prevent failure in projects
 Scope of the project activity may undergo a change
 Technology used may change during the course of project execution.
 It takes more time, more money, and more resources that may be waste if there is no proper planning.
 Consequence of negativity in project related problem could be very serious.
 Change in economic may affect a project.
 Shortening of project life cycle
 Global competition
 Knowledge explosion
 Corporate Downsizing
 Increased customer focus (customer satisfaction will be increased)

Type of projects

A project depends on many factors like

 Budget of project
 Time of project
 Risk related to project
 Technology used in project
 Quality or performance of project
 Recourses management
 Stakeholder management
 Profitability of project
Project Organization

The project organization defines the human infrastructure of the project. The task is designed to define the
project organization chart, the role and the relationship of the project team. The organizational structure clearly
indentifies role and responsibilities of each position, augmenting the existing role definitions whereas necessary
to cover all of the responsibilities. The project organization technique that is used in this step provides slandered
sets of roles and responsibilities which can be customized for a particular project. This should cover all personal
recourses required, both full and part time

A project structure consists of a number of horizontal organization units to complete project of a long duration.
The core of the concepts of project organization is to gather a team of specialize to work on and complete a
particular project. Generally project organization is appropriate when the enterprise is undertaking task that
have defined goal, that are frequent and unfamiliar to present structure that are complex due to interdependence
of tasks and that are crucial to the successes of the firm. A good structure helps to achieve the goal of the
project effectively. There is various type of organization structure which are stated below.

Forms of project organization

(a) Line and staff organization – A line function is one that advances the accomplishment of the actual work of
the organization staff function supports the organization such that it is able to function as intended. It combined
good feature of line organization and functional organization. The staff specialties provide advice and support to
line manager in getting the work done. The authority of staff specializes in purely advisory, not functional. Thus
when the staff organization is super imposed on the line organization, the line result is a line-staff organization.

(b) Divisional organization – When a company expands to supply goods or services to a variety of customer
offers a variety of different products or engaged in business in several different markets, the company could
adopt a divisional organizational structure. Under this type of project organization, a separate division is set up
to implement the project. The division is headed by the project manager and he has full time authority. In fact
this form of organization implies the establishment of a separate goal oriented division of the company with its
own functional departments.

(c) Functional organization structure – Traditional organization structure is developed around the functional
aspects of the organization such as engineering, manufacturing, marketing, human resource and information
system.

(d) Matrix organization – It is a two dimensional structure, combination of line and functional form of
organization and the divisional form of organization. The line and functional form of organization is not
suitable for an effective realization of project objective.
(e) Project organization structure – A project organization is a structure that facilitates the coordination and
implementation of project activities. Its main reason is to create an environment that fosters interaction among
the team members with a minimum amount of disruption, overlap and conflicts. One of the important decisions
of project management is the form of organization structure that will be used for the project.

Role and responsibility of Project Manager

 The project manager must determine the purpose, goal and constraints of the project.
 The project manager must establish basic project management controls.
 Project planning puts together are the details of how to meet the project goals, given the constraints.
 Managing the time by planning and meeting schedule.
 Manage quality so that the project result is satisfactory
 Manage cost to see that project is performed at the minimum possible cost within the budge,
 Managing communication to see that appropriate parties are informed and have sufficient information to
keep the project coordinated.
 Mange the human resource involved in a project effectively.
 Mange the project scope of to define the goals and the work o be done in sufficient detail to facility
understanding and correct performance by participants.
 To take corrective action.

Main cause of project failure

There are various cause of failure of project failure which are given below

 Inadequate project formulation

 Poor planning for implementation
 Lack of proper contract planning and management
 Lack of project management during execution
 Lack stakeholder management.