Project Management Notes (BOE070)
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Unit I – Introduction & Project Planning
Characteristics of a Project:
A project is a temporary endeavor with a defined start and end, undertaken to create a unique
product, service, or result.
- Unique purpose
- Temporary nature
- Progressive elaboration
- Defined scope & objectives
- Constraints (time, cost, quality, risk)
- Customer-specific
Types of Projects:
Industrial, Infrastructure, IT/Software, R&D;, Service sector.
Project Management Body of Knowledge (PMBOK):
10 knowledge areas: Integration, Scope, Time, Cost, Quality, HR, Communication, Risk,
Procurement, Stakeholder.
Project Manager:
Roles: Planning, executing, monitoring, controlling.
Qualities: Leadership, communication, negotiation, decision-making, problem-solving.
Project Organization:
Functional, Projectized, Matrix.
Idea Generation & Charter:
Project idea from market needs or policies. Project Charter = authorization document.
Project Sponsor:
Provides resources and support.
Project Planning:
Steps: Customer needs → Stakeholder analysis → Scope statement → Feasibility → SWOT →
Baseline plan → Team formation → Attitude building.
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Unit II – Structure
Project Selection Methods:
- Non-financial: Urgency, Scoring, Strategic fit.
- Financial: Payback period, NPV, IRR, DCF.
Breakeven Analysis:
Point where total cost = revenue.
Project Implementation:
Steps: Assign tasks, allocate resources, execute, monitor, control.
Estimation & Costing:
Methods: Analogous, Parametric, Bottom-up.
Costs: Direct, Indirect, Fixed, Variable.
Scheduling:
- Bar charts (Gantt).
- Network diagrams: PERT (probabilistic, 3-time estimates), CPM (deterministic, critical path).
- Schedule crashing: reduce duration with extra resources.
Risk & Probability:
Types: Technical, Financial, Environmental.
Tools: Decision trees, risk matrix.
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Unit III – Procurement
Vendor Selection:
Competitive bidding, negotiation, single-source, partnerships.
JIT (Just-In-Time):
Delivers materials when needed → reduces cost.
Supply Chain:
Flow of goods/services to customer.
Quality Tools:
- Quality circles
- Cause & effect (Ishikawa)
- ISO standards
- TQM
- Six Sigma (DMAIC)
Resource Planning:
Allocation, leveling (balancing usage), crashing (reducing time).
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Unit IV – Project Control
Scope & Change:
Scope defines boundaries. Scope creep = uncontrolled changes.
Project Control:
- Schedule control
- Cost control
- Quality control
- Communication control
Project Evaluation:
Performance vs goals.
Audits:
Internal & external.
Closure:
Final reports, handover, documentation.
Special Cases:
Shutdown, turnaround, replacement analysis.
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Unit V – Projects
Site Selection & Layout:
Factors: land, raw materials, transport, labor, environment.
Equipment:
Purchase vs leasing.
Safety, Health, Environment:
PPE, medical facilities, waste disposal.
Project Finance:
Sources: Equity, Debt, Govt, VC. Methods: NPV, IRR, PBP.
International Projects:
Challenges: culture, law, currency. Solutions: Joint ventures, collaborations.
Implementation & Handover:
Construction, testing, training, final acceptance.
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End of Notes