Project Management Ch 1. 1. Explain the term "Project" with an example.

A car company is going to initiate a project 'Z' on July 1, 2012. The project is required to be successfully completed by June1, 2013. The project entails developing a new technology with the help of which the car manufacturers will be able to propel the cars by a mixture of two gases - hydrogen and oxygen. The company would hand over the newly created technology to its manufacturing division. The manufacturing division will use it to develop a prototype of a new car. The project team would comprise of ten engineers who will report to the Project Manager. The Project Manager would be reporting directly to the company's CEO. Everything has been judiciously planned. It is a path breaking project and therefore the company puts a high value on its success. The company's share holders are keenly awaiting this novel technology, which will boost the future car sales. 2. Explain the Project Characteristics. Project has a Life Cycle Every project has a life cycle with definite start and end dates. A project comes into existence to accomplish a specific objective. Once that objective has been accomplished, the project comes to an end. In the example given above, once the car company has developed the new technology, project "Z" will come to an end. Project is Unique in Nature Every work comprises different important tasks. In Project Management jargon, the important tasks within a work are called Projects. Thus, projects differ from on-going operations, as they come into existence for a unique activity. This activity could be design, development, or any other one-off task. In the example given above, the new technology, which the car company is going to develop will be a project within the company's on-going car manufacturing operations. An operation consists of several projects, but no two projects can be exactly the same. Even if the nature of work involved in the two projects is alike, there would be some difference in other factors, such as team composition, objectives, or the project deliverable. Project has an Objective In the above example, the objective is to develop a new technology within the time schedule, resources, and budget earmarked for the purpose. Once that

objective has been achieved, the project will be deemed successful. A project is deemed successful only if:

It is completed The completion is within the budget The completion is within the scheduled time The completion satisfies the stakeholders

Project Involves Risks There are certain risks associated with all kinds of projects. In the example given above, project "Z" runs the risk of getting halted because of delays in the supply of gases required for developing the new technology. Such risks are part and parcel of any project. Project is an Amalgam of Different Activities There are different activities involved in a Project. All such activities are to be completed to complete the project. In the example given above, project "Z" involves hordes of different activities like procuring the gases required to develop the new technology and hiring the technical experts. Thus, a wide array of activities combine together to make a project. Project is a Single Entity A project might be an amalgam of various activities, resources, and inputs, but it is treated as a single entity. This single entity called project is a responsibility of one Project Manager. Project Involves Sub-contracted Work Almost every project entails the involvement of various external agencies, vendors, or contractors. A project can have as much as 70-80% of its work being sub-contracted to external agencies. The degree of subcontracting varies according to the nature of the project. Project is a Collaborative Effort In the context of Project Management, a project is a team effort. The size of a team can vary according to the nature of the project and the structure of the organization. Project Grows in Stages A project moves on step-by-step. Once the project has been initiated, everything seems to fall into place. The team starts understanding the

concepts better and there is an influx of new ideas, as more and more information starts pouring in. This enables the project to move smoothly from one stage to the next. 3. Define Project Management. Project Management is the application of knowledge, skills, tools, and techniques to project activities in order to meet or exceed stakeholder needs and expectations from a project. 4. Explain the term "Stakeholder". The term "Stakeholders" is extensively used in Project Management. It refers to the persons who are involved in the project and the individuals who are directly or indirectly related to it. For a project to be deemed successful, it's imperative that it satisfies its stakeholders. 5. Describe Five Phases of Project Management. Every project comprises Five Phases. These five phases happen one after the other, from the beginning till the end. They constitute a project's life cycle. The Five Phases of a project are:Initiating Project Initiating is the beginning or the launching of a project. This process gives a formal confirmation to the necessity of undertaking a particular project. Besides, this phase defines the scope of the project and marks down the resources allocated to it. There is a famous saying, "Well begun is half done." It aptly fits in the context of Project Management. Properly Initiating or starting a project is very important for its success. A project is started by weighing its pros and cons and assessing all its aspects. Such an approach streamlines all the further project processes and helps reach the desired end in the form of a quality deliverable. Planning As the name suggests, this process involves comprehensive planning with regard to the various aspects of the project. A project comprises a multitude of processes and activities, all of which have to be properly planned. The Planning phase includes all the factors associated with a project, whether major or minor; internal or external. During the Project Planning Process, there are exhaustive discussions on the course of action to be adopted for the different activities involved in the project. On the basis of the comparative analysis, the best suited action plan is carved out for each activity. Project Planning Process is central to the whole process of project management. It plays a key role in every project, whether big or small. A well-planned project ends in a well-developed deliverable. Some of the key activities involved in the Planning phase are listed below:

Defining the scope of the project and its objectives. Planning the budget. Planning the time schedules for the project activities. Planning the procurement. Planning the project team requirements and recruitment. Planning the risks involved in the project. Executing A good plan minus proper execution is like a beautiful rose minus fragrance. In short, it is worthless. Good plans need to be well executed to make a project successful. Planning and execution go hand in hand. One cannot survive without the other. A quality deliverable is possible only if all the processes are qualitatively executed. Every activity within a process must be a quality activity. The Execution phase is the longest process of the project life cycle. All the plans designed in the Planning Process are translated into action. Each plan is wisely implemented, so that the resources, men, material, and finances allocated to the project are properly harnessed to complete the project activities as per the project plan. Controlling The Controlling phase keeps tabs on different phases of the project and analyzes the qualitative and quantitative worth of all the activities that are carried out to successfully complete the project. In short, this phase monitors and controls the project and ensures that nothing halts the growth of the project. Controlling is an ongoing process that ferrets out and plugs the loopholes, so that the project can move smoothly toward a quality finish. The role of Controlling Phase can be summed up in the following points:

It measures the project performance. It compares the actual performance with the expected performance, as laid down in the project plan. In case of any discrepancy, it takes corrective measures to put the project back on track, as per the plan.
Closing In the Closing phase, there is an official announcement of the project closure. The final deliverable is ready, and its time to reap the benefits of all those earnest endeavors that went into producing it. But, Closing is not a mere wait and watch affair. It's a complete process in itself.

It involves important activities like Conducting the Project Audit, Holding the Final Meetings, Filing and submitting all the project related documents and reports, Presenting the Project Closure Report and getting it endorsed by the Steering Committee or the Management. Ch 2.