PROJECT MANAGEMENT UNIT-1 NOTES

TopicS
Projects; Attributes of Projects: Characteristics of Projects;
Classification of Projects; Why are Projects Important ?

Project Management; Benefits of PM ; Difference between Process

and Project Management; Evolution of PM
Project Manager and Responsibility
Building the Project Team
Determinants of Project Success
Phases of Project Life Cycle
Generation of Project Ideas
Monitoring the Environment
Project Management Methodologies and Tools
Project Management
Evolution of Project Management:

“Project is a temporary endeavour undertaken to create a unique product, service, or result”

(PMBOK®, Project Management Institute, 2013)

Project Management: The successful project management is all about structure, control,
sufficient attention to detail and continuously driving action.

Project management has emerged because the characteristics of our turn-of-the-century society
demand the development of the new methods of management. Of the many forces involved,
three are paramount:

1. the exponential expansion of the human knowledge;

2. the growing demand for a broad range of complex, sophistical, customized goods and
services;

3. the evolution of worldwide competitive markets for the production and consumption of goods
and services.

All three forces combine to mandate the use of terms to solve problems that used to be solvable
by individuals. These three forces combine to increase greatly the complexity of goods and
services produced plus the complexity of the process used to produced them and all this in turn
leads to the need for more sophisticated systems to control both outcomes and processes.
As the techniques of project management were developed, the use of project organization began
to spread. Private construction firms found that project organization was helpful on smaller
projects, such as the building of a warehouse or an apartment complex. Automotive companies
used project organization to develop new automobile models. Both General Electric and Pratt &
Whitney used project organization to develop new jet aircraft engines for airlines, as well as the
Air Force.

Project management has even been used to develop new models of shoes and ships. More
recently, the use of project management by international organizations, and especially
organizations producing services rather than products, has grown rapidly. Advertising campaigns,
global mergers, and capital acquisitions are often handled as projects, and the methods have
spread to the non-profit sector. Functions, weddings, fund drives, election campaigns, parties,
recitals etc., all make use of the principles of project management. Most striking has been the
widespread adoption of project management techniques for the development of computer
software.

A Brief History of Project Management

Although there has been some form of project management since early civilisation, project
management in the modern sense began in the 1950s. As the techniques of project management
were developed, mostly by the military, the use of project organization began to spread. Project-
based organization helped private construction firms on smaller projects like warehouses or
apartment complexes. Automotive companies used project organization to develop new
automobile models. Most striking has been the widespread adoption of project management
techniques for the development of computer software.

Project Management Timeline

2570 BC: The Great Pyramid of Giza Completed

The Pharaohs built the pyramids, and today, archaeologists still argue about how they achieved
this feat. Ancient records show there were managers for each of the four faces of the Great
Pyramid, responsible for overseeing their completion. We know there was some degree of
planning, execution and control involved in managing this project.

208 BC: Construction of the Great Wall of China

Later still, Qin Shi Huang, the first emperor of a unified China under the Qin Dynasty (221BC-
206BC), built another wonder of the world. The emperor ordered millions of people to finish this
project. According to historical data, the labour force was organised into three groups: soldiers,
ordinary people and criminals.

1917: The Gantt chart Developed by Henry Gantt (1861-1919)

One of the forefathers of project management, Henry Gantt, is best-known for creating his self-
named scheduling diagram, the Gantt chart. It was a radical idea and an innovation of worldwide
importance in the 1920s. One of its first uses was on the Hoover Dam project started in 1931.
Gantt charts are still in use today and form an essential part of the project managers' toolkit.

1956: The American Association of Cost Engineers (now AACE International) Formed

Early practitioners of project management and the associated specialities of planning and
scheduling, cost estimating, cost and schedule control formed the AACE in 1956. It has
remained the leading professional society for cost estimators, cost engineers, schedulers, project
managers and project control specialists since. AACE continued its pioneering work in 2006,
releasing the first integrated process for portfolio, programme and project management with their
Total Cost Management Framework.

1957: The Critical Path Method (CPM) Invented by the Dupont Corporation

Developed by Dupont, CPM is a technique used to predict project duration by analysing which
sequence of activities has the least amount of scheduling flexibility. Dupont designed it to
address the complex process of shutting down chemical plants for maintenance, and then with
the maintenance completed, restarting them. The technique was so successful it saved the
corporation $1 million in the first year of its implementation.

1958: The Program Evaluation Review Technique (PERT) Invented for the U.S. Navy's
Polaris Project

During the Cold War, the United States Department of Defense's US Navy Special Projects
Office developed PERT as part of the Polaris mobile submarine-launched ballistic missile
project. PERT is a method for analysing the tasks involved in completing a project, especially
the time needed to complete each task and identifying the minimum time required to complete
the total project.

1962: United States Department of Defense Mandate the Work Breakdown Structure
(WBS) Approach

The United States Department of Defense (DOD) created the WBS concept as part of the Polaris
mobile submarine-launched ballistic missile project. After completing the project, the DOD
published the work breakdown structure it used and mandated the following of this procedure in
future projects of this scope and size. WBS is an exhaustive, hierarchical tree structure of
deliverables and tasks that need to be performed to complete a project. Later adopted by the
private sector, the WBS remains one of the most common and valuable project management
tools.

1965: The International Project Management Association (IPMA) Founded

IPMA was the world's first project management association, started in Vienna by a group as a
forum for project managers to network and share information. Registered in Switzerland, the
association is a federation of about 50 national and internationally oriented project management
associations. Its vision is to promote project management and to lead the development of the
profession. Since 1965, IPMA has grown and spread worldwide, with over 120,000 members in
2012.

1969: Project Management Institute (PMI) Launched to Promote the Project Management
Profession

Five volunteers founded PMI as a non-profit professional organisation dedicated to advancing

project management practice, science, and profession. The Commonwealth of Pennsylvania
issued Articles of Incorporation for PMI in 1969, which signified its official start. PMI held its
first symposium in Atlanta, Georgia, attended by 83 people during that same year. Since then,
the PMI has become best known as the publisher of 'A Guide to the Project Management Body
of Knowledge (PMBOK)', considered essential tools in today's project management profession.
The PMI offers two levels of project management certification, Certified Associate in Project
Management (CAPM) and Project Management Professional (PMP).

1975: PROMPTII Method Created by Simpact Systems Limited

The development of PROMPTII was in response to an outcry that computer projects were
overrunning on time estimated for completion and original budgets as set out in feasibility
studies. It was not unusual to experience factors of double, treble or even ten times the original
estimates. PROMPTII was an attempt to set down guidelines for the stage flow of a computer
project. In 1979, the UK Government's Central Computing and Telecommunications Agency
(CCTA) adopted the method for all information systems projects.

1975: The Mythical Man-Month: Essays on Software Engineering by Fred Brooks

In his book on software engineering and project management, Fred Brooks's central theme is that
"Adding manpower to a late software project makes it later." This idea is called Brooks's law.
The extra human communications needed to add another member to a programming team is
more than anyone expects. It naturally depends on the experience and sophistication of the
human programmers involved and the quality of available documentation. Nevertheless, no
matter how much experience they have, the extra time discussing the assignment, commitments
and technical details and evaluating the results becomes exponential as more people get added.
These observations are from Brooks's experiences while managing the development of OS/360 at
IBM.

1984: Theory of Constraints (TOC) Introduced by Dr Eliyahu M. Goldratt in his Novel

"The Goal"

TOC is an overall management philosophy that is geared to help organisations continually

achieve their goal. The title comes from the view that any manageable system is limited in
achieving more of its goal by a small number of constraints, and there is always, at least, one
constraint. The TOC process seeks to identify the constraint and restructure the rest of the
organisation by using five focusing steps. The methods and algorithms from TOC went on to
form the basis of Critical Chain Project Management.

1986 Scrum Named as a Project Management Style

Scrum is an agile software development model based on multiple small teams working in an
intensive and interdependent manner. In their paper, 'The New New Product Development Game'
(Harvard Business Review, 1986), Takeuchi and Nonaka named Scrum as a project management
style. Later they elaborated on it in 'The Knowledge Creating Company' (Oxford University
Press, 1995). Although Scrum is intended to manage software development projects, it can be
used to run software maintenance teams or as a general project and programme management
approach.

1987: A Guide to the Project Management Body of Knowledge (PMBOK Guide) Published
by PMI

First published by the PMI as a white paper in 1987, the PMBOK Guide was an attempt to
document and standardise accepted project management information and practices. The first
edition was published in 1996, followed by a second in 2000 and a third in 2004. The guide is
one of the essential tools in the project management profession today and has become the global
standard for the industry.

1989: Earned Value Management (EVM) Leadership Elevated to Undersecretary of

Defense for Acquisition

The PMBOK Guide of 1987 outlines Earned Value Management (EVM) subsequently expanded
on in later editions. Although the earned value concept has been around on factory floors since
the early 1900s, it only came to prominence as a project management technique in the late 1980s
early 1990s. In 1989, EVM leadership was elevated to the Undersecretary of Defense for
Acquisition, thus making EVM an essential part of programme management and procurement. In
1991, Secretary of Defense Dick Cheney cancelled the Navy A-12 Avenger II Programme
because of performance problems detected by EVM.

1989: PRINCE Method Developed From PROMPTII

Published by the UK Government agency CCTA, PRojects IN Controlled Environments

(PRINCE) became the UK standard for all government information systems projects. A feature
of the original method, not seen in other methods, was the idea of 'assuring progress' from three
separate but linked perspectives. However, the PRINCE method developed a reputation for being
too unwieldy, rigid, and applicable only to large projects, leading to a revision in 1996.

1994: CHAOS Report First Published

The Standish Group collects information on project failures in the Information Technology (IT)
industry, intending to make the industry more successful, showing ways to improve its success
rates and increase the value of IT investments. The CHAOS report is its biennial publication
about IT project failure.

1996: PRINCE2 Published by CCTA

OGC considered an upgrade to PRINCE in order, and the development was contracted out but
assured by a virtual committee spread among 150 European organisations. Initially developed for
Information Systems and Information Technology projects to reduce cost and time overruns, the
second revision became more generic and applicable to any project type.

1997: Critical Chain Project Management (CCPM) Invented

Developed by Eliyahu M. Goldratt, Critical Chain Project Management is based on methods and
algorithms drawn from his Theory of Constraints (TOC) introduced in his 1984 novel titled, 'The
Goal'. A Critical Chain project network will keep the resources levelly loaded, but need them to
be flexible in their start times and switch quickly between tasks and task chains to keep the
whole project on schedule.

1998: PMBOK Becomes a Standard

The American National Standards Institute (ANSI) recognised PMBOK as a standard in 1998,
and later that year, the Institute of Electrical and Electronics Engineers (IEEE).

2001: The Agile Manifesto Written

In February 2001, 17 software developers met at The Lodge, Snowbird, Utah resort to discuss
lightweight software development methods. They published the Manifesto for Agile Software
Development to define the approach now known by the same name. Some of the manifesto's
authors formed the Agile Alliance, a nonprofit organisation promoting software development
according to the manifesto's twelve core principles.

2006: "Total Cost Management Framework" Release by AACE International

Total cost management is the name given by AACE International to a process for applying the
skills and knowledge of cost engineering. It is also the first integrated process or method of
portfolio, programme and project management. AACE first introduced the idea in the 1990s and
published the whole process presentation in the 'Total Cost Management Framework'.

2008: 4th Edition of PMBOK Guide Released

The fourth edition of the guide continues the PMI tradition of excellence in project management
with an easier-to-understand and implement the standard with improved consistency and greater
clarification. The updated version has two new processes, not in the previous versions.

2009: Major PRINCE2 Revision by Office of Government Commerce (OGC)

A significant revision has made the method more straightforward and easily customisable, a
frequent request from users. The updated version has seven basic principles (not in the previous
version) that contribute to project success. Overall, the updated method aims to give project
managers better tools to deliver projects on time, within budget, and with the right quality.

2012: ISO 21500:2012 Standard for Project Management Released

In September 2012, the International Organisation for Standardisation published "ISO

21500:2012, Guidance on Project Management". The standard is designed for any organisation.
It is the result of five year's work by experts from more than 50 countries. These include public,
private or community groups and any project, regardless of complexity, size and duration.

2012: 5th Edition of PMBOK Guide Released

The fifth edition of the guide, published in December 2012, provides guidelines, rules and
characteristics for project management recognised as good practice in the profession. The
updated version introduces a 10th knowledge area called 'Project Stakeholder Management' and
includes four new planning processes.

2017: PRINCE2 Second Major Revision by AXELOS

PRINCE2's ownership changed to AXELOS in 2013, which published the methods next major
update in 2017. The new guidance focuses on scalability and flexibility. The 2017 update
clarifies the bare minimum for a project to qualify as PRINCE2. It then shows examples, hints
and tips about how to adjust these core principles to your project.

2017: 6th Edition of PMBOK Guide Released

This update reflects good practices in project management. New to the sixth edition, each
knowledge area contains a section entitled Approaches for Agile, Iterative and Adaptive
Environments, describing how these practices integrate into project settings. It also emphasises
strategic and business knowledge, including discussion of project management business
documents, information on the PMI Talent Triangle and the essential skills for success today.

2018: PRINCE2 Agile

PRINCE2 Agile is a tailored form of PRINCE2, suitable for Agile projects that use Kanban,
Scrum or a similar Agile system in their delivery layer. It adds a management and governance
layer to the relatively simple Agile methods focused on the delivery layer.

2021: 7th Edition of PMBOK Guide Released

This latest edition addresses project practitioners' current and future needs and helps them be
more proactive, innovative and agile in enabling desired project outcomes. The critical change in
this edition reflects the full range of development approaches, providing an entire section
devoted to tailoring the development approach and processes.
Source: https://www.projectsmart.co.uk/history-of-project-management/brief-history-of-project-
management.php#timeline
 Project Manager and his Responsibilities

According to Project Management Institute (PMI), “Project Management is the application of

knowledge, skills, tools and techniques to project activities in order to meet or exceed
stakeholder needs and expectations”.

Project management is quite often the province and responsibility of an individual project
manager. This individual seldom participates directly in the activities that produce the end result,
but rather strives to maintain the progress and productive mutual interaction of various parties in
such a way that overall risk of failure is reduced.

A project manager is often a client representative and has to determine and implement the exact
needs of the client based on knowledge of the firm he/she is representing. The ability to adapt to
the various internal procedures of the contracting party, and to form close links with the
nominated representatives, is essential in ensuring that the key issues of cost, time, quality and
above all client satisfaction, can be realized. Any type of product or service – buildings, vehicles,
electronics, computer software, financial services, etc. – may have its implementation overseen
by a project manager and its operations by a product manager.

The project manager needs to be an HRD expert who can motivate the workforce by training and
promoting leadership among them, and boost their morale by incentives and promotions. He has
to be conversant with the principles of organisation, and be a good judge of people who has the
ability to place the right man in the right job at the right time.

Three Major Questions Facing Project Managers

What needs to be done?

When must it be done?

How are the resources required to do the job to be obtained?

 Functional Manager Vs Project Manager

Responsibilities of Project Manager

Towards The Parent Proper usage of resources.

Organization Timely and accurate reports.
Keep project sponsor informed.
Towards The Project and the Preserve the integrity of the project. – This may be difficult
client with all sides wanting changes

Keep the client informed of major changes.

Towards The Project Team Very few people will work for the project manager. The
“team” will disband at the end of the project. The project
manager must look out for everyone’s future

Functions of Project Manager

1. Developing a unique product or process and manage change.

2. Identification of the need for project.

3. Finding different alternatives of the project.

4. Developing a plan of action.

5. Training operators.

6. Establishment of quality assurance cell to control quality.

7. Incorporation of changes as and when needed while implementing project.

8. Selection of suitable equipment.

9. Finding suitable financial resources.

10. Assessment of alternatives and obtaining approval to proceed.

11. Measuring performance of the project.

12. Transfer of material, funds and settling all accounts after completion of project

Selection of a Project Manager The selection of project manager depends on following points.

Problem Solving Skills 1. Does this person have a history of being able to solve complex
problems? 2. Does this person have the attitude that a problem is an opportunity to learn?
Personal Leadership Style 1. Does this person have the communications and people skills
appropriate for the mix of people who will be required on this project? 2. Will this person
encourage project team members to bring up problems rather than play the blame game? 3. Does
this person have excellent time management skills?

Organizational Experience 1. Does this person know how work gets done in this organization?
2. Is this person experienced in working in similar organizations and is that experience
transferable to this project? 3. Does this person know the politics of our organization and have
the savvy to navigate these situations?

Skills and Knowledge 1. Does this person have adequate knowledge about the subject of this
project? 2. If some of these skills are weak is there support available in the organization to offset
the problem? 3. Does this person have adequate technical skills for this project? 4. Does this
person have the skills understand the root causes of potential problems and keep them from
reoccurring?

Project Management Experience 1. Has this person led projects of similar scope, size, length,
and priority? 2. Is this person on a growth track to lead more complex projects?
 Identify people who match the skills

Recall movie Pokhran in which

Selecting five members from the BARC (Bhabha Atomic Research Centre), DRDO (Defence Research and
Development Organisation), Indian Army, ISA (Indian Space Agency) and IB (Intelligence Bureau), Ashwat leads the
team to Pokhran for the test setup.

Key scientists and engineers on 10 May 1998.

Abdul Kalam is on left (silver hair);
R. Chidambaram is holding file;
Anil Kakodkar is behind Chidambaram wearing
glasses; K. Santhanam is at extreme right
Operation Shakti: https://nuclearweaponarchive.org/India/IndiaShakti.html
 Generation of Project Ideas

➔ Stimulating Flow of Ideas

➢ SWOT Analyis
➢ Clear Articulation of Objectives
➢ Fostering a Conducive Climate
➔ Sources of Project Ideas
➢ Analyze the Performance of Existing Industries
➢ Examine the input and output of Various Industries
➢ Review Imports and Exports
➢ Study Government Guidelines
➢ Look at the suggestions of Financial Institutions
➢ Investigate Local Materials and Resources
➢ Analyse economic and Social Trends
➢ Study New Technology Developments
➢ Draw clues from Consumption abroad.
➢ Explore the possibility of reviewing sick units
➢ Identify unfulfilled psychological needs
➢ Attend Trade Fairs
➢ Stimulate Creativity for Generating New Project Ideas
 Monitoring the Environment

• PESTEL ANALYSIS/ENVIRONMENT ANALYSIS

• CORPORATE APPRAISAL
• PORTER’S FIVE FORCES ANALYSIS
• LIFE CYCLE APPROACH
• THE EXPERIENCE CURVE
Tools and Techniques

1. Work Breakdown Structure

2. Bar Charts: Gantt Chart
3. Network Analysis
Work Breakdown Structure
Network Diagram