Project Management
NITESH RATH
HDF School of Management
Basic Concepts HDFSOM 1
What is a project?
A project is a
– complex,
– non-routine,
– one time effort,
– limited by time and resources, and
– performance specifications designed
to meet customers needs
Basic 2
Concepts HDFSOM
Major characteristics of a
project
A clear objective
A definite life span with a beginning and an
end
Usually the involvement of several
departments and professionals
Typically, doing something that has never
been done before
Specific time, cost, and performance
requirements
Basic HDFSOM 3
Project Scope Checklist
Project objectives
Deliverables
Milestones
Technical requirements
Limits and exclusions
Review with customers
Basic HDFSOM 4
PROJECT – DEFINITION FROM A
FINACIAL PERSPECTIVE
A PROJECT INVOLVES AN OUTLAY
(CURRENT & FUTURE) OF FUNDS
IN THE EXPECTATION OF
FUTURE BENEFITS
Basic HDFSOM 5
PROJECT – DEFINITION FROM
IMPLEMENTATION PERSPECTIVE
A COLLECTION OF LINKED ACTIVITIES,
CARRIED OUT IN AN ORGANISED MANNER
WITH A CLEARLY DEFINED START POINT
AND FINISH POINT,
TO ACHIEVE SOME SPECIFIC RESULTS
(THAT SATISFY THE NEEDS OF AN
ORGANISATION AS DERIVED FROM THE
CURRENT BUSINESS PLANS)
Basic HDFSOM 6
PROJECT– WORLD BANK
DEFINITION
A project, ideally, consists of an optimum set of investment–oriented
actions, based on comprehensive and coherent sector planning, by
means of which a defined combination of human and material resources
is expected to cause a determined amount of economic and social
development. The components of a project must be precisely defined as
to character, location and time. Both the resources required – in the
form of finance, materials and manpower – and the general benefits –
such as cost savings, increased production and institutional development
– are estimated in advance. Costs and benefits are calculated in
financial and economic terms or defined (if quantification is not
possible) with sufficient precision to permit a reasoned judgment to be
made as to the optimum set of actions.
Basic HDFSOM 7
PROGRAMME
Programme is a coherent framework of
action to achieve certain global objective
Programme consists of interventions on a
larger scale than a project and includes several
projects whose specific objectives are linked
to the achievement of the higher level global
objective
Basic HDFSOM 8
Characteristics of objectives
S – Specific
M – Measurable
A – Assignable
R – Realistic
T – Time Bound
Basic HDFSOM 9
Project Life Cycle
Definition Planning Execution Delivery
Level
of
Effort
Basic HDFSOM 10
PROJECT LIFE CYCLE
• Definition
• Planning
• Implementation
• Delivery
Basic HDFSOM 11
THE LIFE CYCLE OF A PROJECT
• Definition and Planning
IDENTIFICATION
NEED-BASED APPROACH
MARKET-BASED APPROACH
PROBLEM-BASED APPROACH
APPRECIATIVE ENQUIRY APPROACH
DEVELOPMENT OF POTENTIAL SOLUTION
TECHNICAL FEASIBILITY
Basic HDFSOM 12
THE LIFE CYCLE OF A PROJECT
• Definition and planning
VERY ROUGH ECONOMIC DATA
PRELIMINARY DEFINITION
PRELIMINARY PLANNING
CLOSER LOOK AT COSTS & VIABILITY STUDY
FINANCING SOURCE
FORMAL SUBMISSION OF PROPOSAL
APPRAISAL
APPROVAL
Basic HDFSOM 13
THE LIFE CYCLE OF A PROJECT
• IMPLEMENTATION STAGE
DETAILED PLANNING
BASIC/DETAILED TECHNICAL DECISIONS
PROCUREMENT
CONSTRUCTION
MONITORING
TURN-OVER OF FACILITY TO OWNERS/OPNS
• OPERATIONAL STAGE
EVALUATION
• Delivery
Basic HDFSOM 14
PROJECT IDENTIFICATION
SECTORAL ANALYSIS
DEMAND-SUPPLY GAP
PROBLEM TREE ANALYSIS
LONG-TERM SOLUTIONS
IMMEDIATE SOLUTIONS
APPRECIATIVE ENQUIRY
CREATIVITY TECHNIQUES
Basic HDFSOM 15
ASPECTS OF PROJECT
FEASIBILITY STUDY
MARKETING
Consumer Analysis
Competition Analysis
Demand Analysis
Marketing Plan
Basic HDFSOM 16
ASPECTS OF PROJECT FEASIBILITY
STUDY (contd.)
PROCUREMENT
Availability ( i.e. quantity)
Quality
Cost
Organization
Basic HDFSOM 17
ASPECTS OF PROJECT FEASIBILITY
STUDY (contd.)
TECHNICAL
Product Features in relation to
market demand
Capacity
Processing Technology – choices and
selection
By-products
Location
Lay-out
Basic HDFSOM 18
ASPECTS OF PROJECT FEASIBILITY
STUDY (contd.)
MANAGERIAL / ORGANISATIONAL
Organizational Structure during the various
stages
Positions and relationships
Availability of Capacity at different levels
Plan for building capacity of different
stakeholders in relation to the likelihood of
stay with the project
Client-Consultant-Contractor Relationship
Management
Basic HDFSOM 19
ASPECTS OF PROJECT FEASIBILITY
STUDY (contd.)
LEGAL
Employment Contracts
Contracts with suppliers,
contractors, consultants
Legal Advice during the various
stages of the project life cycle
SOCIO-CULTURAL
Basic HDFSOM 20
ASPECTS OF PROJECT FEASIBILITY
STUDY (contd.)
ENVIRONMENTAL AND
ECOLOGICAL
Physical Sustainability of Resources
Sustainability of projects in the
absence of hand-holding and in the
face of changing market conditions
Safety of operations
Basic HDFSOM 21
ASPECTS OF PROJECT FEASIBILITY
STUDY (contd.)
IMPLEMENTABILITY
Work Breakdown Structure
Work Package
Linear Responsibility Matrix / Chart
Networks
Gantt Charts
Milestones for Review
Basic HDFSOM 22
ASPECTS OF PROJECT FEASIBILITY
STUDY (contd.)
FINANCIAL
Investment Costs
Sources and proportion of funds
Weighted Average Cost of Capital
Pay-back Period/ ARR/ NPV/ IRR
Break-even points for successive years
Projection of Future Financial Results
Points of negotiation with FIs
Basic HDFSOM 23
ASPECTS OF PROJECT FEASIBILITY
STUDY (contd.)
RISK ANALYSIS AND
MANAGEMENT
Risk Factors
Impact of Risk Factors on the
project outcomes
Risk mitigation measures/ fall-
back solutions
Basic HDFSOM 24
ASPECTS OF PROJECT FEASIBILITY
STUDY (contd.)
PLAN FOR MIGRATION FROM
IMPLEMENTATION TO OPERATIONS/
EXIT STRATEGY
Transfer of Assets Plan
Documentation
Building capacity
Agreement on level of support
during operations/ benefits
realization
Basic HDFSOM 25
ASPECTS OF PROJECT FEASIBILITY
STUDY (contd.)
MONITORING PLAN
Frequency of reporting/ meetings
Formats for reporting
Responsibility for monitoring and
earned value analysis
Procedure for initiation of
modifications/ changes
(configuration control)
Basic HDFSOM 26
ASPECTS OF PROJECT FEASIBILITY
STUDY (contd.)
EVALUATION PLAN
Frequency of Evaluation
Purpose
Agency
Cost
PROJECT DOCUMENTATION PLAN
Basic HDFSOM 27