Project Management-
Introducing the concept
Lecture 1 &2
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Discussion on Course Guide
COURSE LEARNING OUTCOMES
Understand and apply various project management tools and
CLO 1: techniques
Understand project life cycle key factors impacting various project
CLO 2:
phases, with emphasis on energy sector
Identify the application of project management as an interdisciplinary
CLO 3:
approach.
CECs Course Evaluation Components Weight
CLO 4: Evaluate project efficiency and effectiveness
No. (CECs) age
CLO 5: Formulate the strategy for effective project management
CEC 1 Class Participation (CP)* 10%
CEC 2 Quiz 20%
CEC 3 Project & Presentation 30%
CEC 4 End Term Exam (mandatory) 30%
* The class participation marks are dependent on- Response
CEC 5 Class Assignment 10% to the class assignments,
Questions raised in class, Attendance and other areas that showcase your active and
positive participation in the class as deemed fit by the course instructor.
Why effective project management ?
❑30% of firms have been able to deliver projects in the agreed
budget and 15% of firms on agreed time- Accenture Report.
❑~ 483/ 1781 infra projects show cost overruns of Rs 4.43 trn,
[April –June’ 21 report of Ministry of Statistics and Program implementation ; report on projects > 150
crores; Business Standard Report dated Aug 22/21]
❑~ 86% projects > 150 crores delayed
[April –June’ 21 report of Ministry of Statistics and Program implementation , reported by
Indian Express; 06/11/21 ]
Project Success Rates
Software and hardware projects fail at a 65% rate.
Over half of all I T projects become runaways.
Only 30% of technology-based projects and programs are a success.
Ten major US government contracts have over $16 billion in cost overruns
and are a combined 38 years behind schedule.
One out of six I T projects has an average cost overrun of 200% and a schedule
overrun of 70%.
More than one-third of the $110 billion in costs spent on the post-war
reconstruction projects in Afghanistan, total $110 billion was lost due to fraud,
waste, and abuse.
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Why effective project
management ?
• “ 80 percent of global executives believed
having project management as a core
competency helped them remain
competitive during the recession” – PMI
White paper
• For infra project business outcomes depend
on the project / portfolio performance
• Often Projects become ‘Death Marches’ for
inability to allocate resources – Example
Construction projects
Why Are Projects Important?
Shortened product life cycles
Narrow product launch windows
Increasingly complex and technical
products
Emergence of global markets
An economic period marked by low
inflation
What plausible reason can you have
for energy sector???
What is a project and it’s management ??
“ A project is temporary endeavour to create a unique, product service
or result.”
Project – Goal oriented, complex, customer focussed, defined start
and end dates, consume resources & multifunctional
Project Management is “Application of knowledge , skills, tools and
techniques to project activities to meet the project requirement.” –
PMBOK
Impacted by Leadership &
Portfolio
Strategy
Projec Projec Progra
Program 1
tA tB m2
Projec Projec Projec
t1 t2 t1
7
Process and Project Management
Process Project
Repeat process or product New process or product
Several objectives One objective
Ongoing One-shot-limited life
People are homogenous More heterogeneous
Well-established systems Integrated system efforts
Greater certainty Greater uncertainty
Part of line organization Outside of line organization
Established practices Violates established practice
Supports status quo Upsets status quo
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Project Life Cycle Stages
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Prelim Estimates,
Generic project life cycle structure
Cost benefit
Analysis etc.
Specification and
Estimate Prep, WBS,
Reconciliation,
Scheduling, Tendering
handing over fronts
process
Monitoring
• Application of knowledge, skills, tools and techniques to
project activities to achieve project objectives.
• Process groups
• Initiating process group
• Planning process group
• Execution process group
• Monitoring and Control process group
• Closing process group
Project Management- Process Groups
Overview of the PMI’s P M B o K Knowledge
Areas
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Process Activities Tools and Techniques
group Performed
Initiating Define project, Project charter – internal document that lays down objectives, high level
process group objectives, milestones, milestones, identifies PM, roles, high level budget and authorizes to
Budget, identify project initiate the project.
manager & define role, Expert judgement
identify stakeholders and Facilitation techniques – eg. brainstorming, meeting management,
get authorization problem solving, conflict resolution
Planning Develop project Collect requirements: Interviews, Focus groups, Questionnaire surveys,
process group management plan for Benchmarking, Document analysis, Product analysis,
-Scope, Cost, Time, Scope- Work Breakdown Structure, Responsibility Assignment Matrix
Quality, Cost – Estimation, Budgeting
Communications, Time – Network techniques, Program Evaluation and Review Technique
Human resources, (PERT), Critical Path Method (CPM), Scheduling, Resource optimization,
Risk management,
Schedule Compression
Procurement,
Stakeholder Risk – Risk identification, assessment, rating
engagement. Quality – assurance, control, audit
Communication – planning, verbal, non-verbal, written, electronic
Human Resources – Planning (acquire, develop, manage), team
management, conflict resolution
Procurement – planning, vendor qualification, contracting, negotiation
Tools and Techniques
Process Activities Performed Tools and Techniques
group
Execution Manage people, resources and Meetings, Expert judgement, Project management
process vendors, Managing stakeholders, information system – daily, weekly, monthly MIS
group Integrating and performing Document management system, Knowledge
project activities, Project progress management portal
reporting, Manage risks,
implement changes, capture
lessons learnt.
Monitoring Track, review, measure, and report Expert judgement, Meetings, Project management
and progress. Identify course correction information system
controlling and changes required. Statistical methods, Root cause analysis, Trend
process analysis, Variance, Regression
group Earned value analysis to assess project progress
Forecasting
Closing Finalizing all activities across all of the Expert judgement, meetings, consolidation and
process Project Management Process Groups compilation of documents, project audit, capturing
group to formally complete the project or lessons learnt –written, voice recording etc.
phase
Tools and Techniques
15
Fig courtesy: [Link]
fulltext/[Link]
Planning for
Project
project and
Integrati
finalizing the
on
How parameters to be
subsequently
manage
ment
Project managed.
Scope ,Schedule,
Manageme Cost
Management ,Qualit Project
nt ? y, Resource,
Communication,
Manag
Risk, Procurement,
ement
Stakeholder and Areas
Integrated Project
management
16
How can project management be effective ??
Planni
ng &
coordi Meeting Stakeholde
natio user r
n Top defined Satisfaction
Mana parame Efficien & achieving
geme ters - cy business
nt Time ,C and
Suppo ost ,Qu strategic
rt
Project Success ality objectives.
Factors - ensuring
stakeholder Project Success
satisfaction by Criteria- Metrics Project Purpose
meeting demands on
related to project
outcomes
Ref.: Müller, R., & Jugdev, K. (2012). Critical success factors in projects: Pinto, Slevin, and Prescott–the elucidation of project success. International journal of managing projects in business.
Quadruple Constraint of Project Success
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Four Dimensions of Project Success Importance
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Understanding Success Criteria
Iron Information Benefits Benefits
Triangle System (Organization) (Stakeholders)
Cost Maintainability Improved efficiency Satisfied users
Quality Reliability Improved Social and
effectiveness environmental
impact
Time Validity Increased profits Personal
development
Blank Information Strategic goals Professional
quality learning,
contractors’ profits
Blank Use Organization Capital suppliers,
learning content
Blank Blank Reduced waste Project team,
economic impact to
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surrounding
Share Your
Experience
Root Causes of poor project management :
A PMI & KPMG Report
23
Project Management Maturity
Project Benchmarking is
management the practice of
maturity (P M M) systematically
models are used to managing the
allow organizations process
to benchmark the improvements of
best practices of project delivery by a
successful project single organization
management firms. of a period of time.
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Spider Web Diagram for Measuring Project Maturity
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Spider Web Diagram with Embedded Organizational
Evaluation
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Project Management Maturity—A Generic Model
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Project Charter
Purpose Information in the
project charter
• Used to introduce the • Background
project • Scope
• Align people thinking • Objectives ( Success
• Objective Factors ) / SMART
• Scope • Governance
• Budget • Rough Schedule
• Obtain approval to plan • Costs / Business Case
a project • Constraints , risks and
dependencies
• Need not be a detailed document ( 5 pages or less)
Project Scope
The division of work to be performed under
a contract or subcontract in the completion
of a project, typically broken out into
specific tasks with deadlines.
Elements of Objectives /Purpose Statement
Scope of Work Scope of Work
Schedule
Price
Key Assumptions
Acceptance
Thank you !!