Project Management

Lecture #1
Introduction

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 OVER VIEW OF PROJECT MANAGEMENT
Basic Core of Knowledge
needed to understand
Project Management

Support Functions:
Time Management,
Conflicts, special
topics

Executive involvement
and the critical success
factors for predicting
project success

Quantitative chapters on
planning, scheduling, cost
control and estimation

Deals with trade-off on

time, cost, performance

Advanced topics in
project management
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 OVER VIEW OF PROJECT MANAGEMENT
1. Overview
Basic Core of Knowledge 2. Systems Theory and Concepts
needed to understand 3. Organizational Structures
Project Management 4. Organizing and Staffing
5. Management Functions
Support Functions:
6. Time Management Time Management,
7. Conflicts Conflicts, special
8. Special Topics topics

Executive involvement
and the critical success 9. Variables for Success
factors for predicting 10. Working with Executives
project success
11. Planning
Quantitative chapters on
12. Network Scheduling Techniques planning, scheduling, cost
13.Project Graphics control and estimation
14. Pricing and Estimating
15. Cost Control
Deals with trade-off on
16. Trade-Off Analysis time, cost, performance

Advanced topics in
project management
17. Risk Management
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 What is a PROJECT?

• A Project can be considered to be any series of activities

and tasks that:
• Have a specific objective to be completed within
certain specifications
• Have defined start and end dates
• Have funding limits (if applicable)
• Consume resources (i.e., money, people, equipment)

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 INTRODUCTION OF PROJECT MANAGEMENT

Planning
PLANNING • Definition of work requirements
Scheduling • Definition of quantity and quality of work

• Routing planned work • Definition of Resources needed

• Use of optimization
techniques like Gantt SCHEDULING
• Use of Techniques like
PERT/CPM
Controlling
•Tracking Progress
•Compare actual with predicted CONTROL
•Analyzing impact
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•Make adjustments
WHAT IS A SUCCESSFUL PROJECT MANAGEMENT

A SUCCESSFUL PROJECT MANAGEMENT CAN BE

DEFINED HAVING ACHIEVED THE PROJECT
OBJECTIVES
• Within time
• Within cost
• At the desired performance/technology level
• While utilizing the assigned resources effectively and efficiently
• Accepted by the customer
• With acceptance by the customer or user
• When you can use the customers name as reference

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 BENEFITS FROM PROJECT MANAGEMENT

• Identification of Functional Responsibilities

• To ensure that all activities are accounted for
• Minimizing the need for continuous reporting
• Identification of time limits for scheduling
• Identification of a methodology for trade-off analysis
• Measurement of accomplishment against plans
• Early identification of problems, so that corrective action may follow
• Improved estimating capability for future planning
• Knowing when objective cannot be met or will be exceeded

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OBSTACLES IN PROJECT MANAGEMENT

• Project Complexity
• Customer’s special requirements
• Organizational Restructuring
• Project Risks
• Changes in Technology
• Forward planning and Pricing

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 OVERVIEW OF PROJECT MANAGEMENT

GOOD CUSTOMER RELATIONS

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PROJECT MANAGER-FUNCTIONAL MANAGER
INTERFACE

Project managers

Executives Functional
managers

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PROJECT MANAGER-FUNCTIONAL MANAGER
INTERFACE
Most companies have the following resources,
1. Money 4. Facilities
2. Manpower 5. Materials
3. Equipment 6. Information Technology

Project managers
control only “Project Money”.

Functional managers
control resources
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 PROJECT MANAGER-FUNCTIONAL MANAGER
INTERFACE

Project management is more behavioral than quantitative.

Effective project management requires an understanding of,
• Quantitative tools and techniques
• Organizational structures
• Organizational behavior

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 DEFINING PROJECT MANAGER’S ROLE

Project Managers have increasing responsibility, but very little

authority. This lack of authority forces them to negotiate with upper
level management as well as functional management.

Interface Management
• Managing human interrelationships in the project organization
• Maintaining balance between technical and managerial project functions
• Coping with risk associated with project management
• Surviving organizational restraints
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 DEFINING FUNCTIONAL MANAGER’S ROLE

• Define how the task will be done

• Where the task will be done
• Provide sufficient resources to accomplish the objective within constraints

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DEFINING FUNCTIONAL MANAGER’S CONSTRAINTS

• Unlimited work requests especially during competitive bidding

• Predetermined deadlines
• All requests having a high priority
• Limited number of resources
• Unscheduled changes in project plan
• Unpredicted lack of progress
• Unplanned absence of resources
• Unplanned loss of resources
• Unplanned turnover of personal

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 DEFINING THE EXECUTIVE’S ROLE

New expectations of and new interfacing role:

• Project planning and objective setting
• Conflict resolution
• Priority setting
• Project sponsor

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WORKING WITH EXECUTIVES

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 WORKING WITH EXECUTIVES

Success
Successof
of
PM
PM

Lin
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Pro

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 WORKING WITH EXECUTIVES

Project Sponsor
Senior Management

Project Sponsor
Lower Middle Management

RELATIONSHIP
Objective setting
Project Up-front planning
Sponsor Project organization
Key staffing
Key staffing
Master planning
Project Polices
Manager Monitoring execution
Project
Manager
Project Team
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 THE GROWTH OF PROJECT MANGEMENT

The following questions give some insight as to whether formal

project management is necessary,
• Are the jobs complex ?
• Are there dynamic environmental considerations ?
• Are the constraints tight ?
• Are there several activities to be integrated ?
• Are there several functional boundaries to be crossed ?

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 THE GROWTH OF PROJECT MANGEMENT

PM if properly implemented, can make it easier for executives

to overcome obstacles such as.
• Unstable economy
• Shortages
• Soaring costs
• Increased complexity
• Heightened competition
• Technological changes
• Societal concerns
• Consumerism
• Ecology
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 THE GROWTH OF PROJECT MANGEMENT

If these obstacles are not controlled the results can be,

• Decreased profits
• Increased manpower needs
• Cost overruns
• Scheduled delays, and penalty payments
• An inability to cope up with new technology
• R&D results to late to benefit existing product lines
• New products introduction into market will be delayed
• Temptation to hasty decisions
• Management insisting on earlier and greater returns

• Greater difficulty in establishing on target objectives in real time

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 THE GROWTH OF PROJECT MANGEMENT

Project Initiation:
$$$$$$$$$$$$$$$$

Planner Director

Frustrated

Project Completion:

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 LOCATION OF THE PROJECT MANAGER

President 60
What salary?
Who to report?
Vice President 50 Project
Driven
Director 40 •Ideally project managers
should be at the same pay
Division 30 scale as the people they
negotiate.
Department 20 Non - Project •Location depend upon upon
Driven
the
Section 10
• Type of organization

Laborer 1-9
• Responsibility

Grades
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 PROJECT MANAGEMENT APPROACHES

Concurrent Engineering:
Task non series in nature
PM for minimizing risk

Total Quality Management:

Manufacturing oriented organization are slow in accepting
project management benefits.
PM can be benefits for TQM because
•Higher demand for quality
•Increase reliance on venders
•Rapid industrial growth, local and global
•Demand for shorter time cycle for D & D.
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