Upendra Kachru PROJECT MANAGEMENT

An Introduction to
Project
Management
Upendra Kachru PROJECT MANAGEMENT
MY NAME IS:
PROF. UPENDRA KACHRU
I have been teaching for the last decade and taught management at
Fore School of Management, Goa Institute of Management and at
both campuses of IILM. In addition, I taught on environmental issues
at the TVB School of Habitat Studies and Utah State University.
I have got a degree in engineering from NIT, Durgapur and a MBA
from the University of Illinois, USA.
I have over 40 years of work experience out of which I spent nearly
30 years in the corporate world. I worked with Tata Motors, Escorts
Limited, Maruti Udyog, Blackwood Hodge, Inox Group, and H.P.
Pelzer.
I also write and am an author of over 50 titles.
Upendra Kachru PROJECT MANAGEMENT
WELCOME TO PM
I hope that this course will not only
give you some learning experience
but you will at the same time also
enjoy this course.
Your text book is:
Contemporary Project Management,
By Kloppenborg
We will be using the PMBOK
Framework for this course
Upendra Kachru PROJECT MANAGEMENT
What is a Project?
As they are temporary projects have a beginning and an end.
There are four unique aspects to each project:
Scope (size)
Quality or Performance (acceptability of results)
Cost
Schedule
Introduction
Project a temporary endeavor undertaken to
create a unique product, service, or result. PMBOK Guide
Upendra Kachru PROJECT MANAGEMENT
History of Project Management
PM emerged as a formal discipline in the 1950s
Techniques for planning and controlling schedules and
costs were developed for huge aerospace and construction
projects in the 1950s and 1960s
Early PM involved determining project schedules based
on order of project activities
Manufacturing, research and development, government,
and construction projects used and refined management
techniques
Upendra Kachru PROJECT MANAGEMENT
History of Project Management
Software companies offered software for planning and
controlling project costs and schedules in the 1980s
and 1990s
Risk management techniques for complex projects
have been applied to less complex projects
Communication and leadership playa major role in
project success
Rapid growth and change in information technology
and telecommunications fueled use of PM in the 1990s
and 2000s
Upendra Kachru PROJECT MANAGEMENT
What is a project?
A project requires an organized set of work efforts.
Projects require a level of detail that is progressively elaborated
upon as more information is discovered.
Projects are subject to limitations of time and resources such as
money and people.
Projects have a defined beginning and ending.
A project has a unique combination of stakeholders
stakeholders persons or organizations that are actively
involved in the project, or whose interests may be positively
or negatively affected by execution or completion of the
project. PMBOK Guide
Upendra Kachru PROJECT MANAGEMENT
Projects Versus Operations
Projects are temporary
Projects have both routine and unique characteristics
Operations consist of the ongoing work needed to ensure
that an organization continues to function effectively
Projects
Unique
Limited life span
Multiple stakeholders
Sponsor
Variable demand for resources
Uncertainty
Variety of resource skills
Operations
Repetitive
Continuous
Department
Supervisor
Stable demand for Resources
Stable Environment, limited uncertainty
Limited, specialized skill set
Upendra Kachru PROJECT MANAGEMENT
Projects are Different
Project management allows you to:
Manage teams by working with different teams on the new
projects
Work in different cultural environments
Be exposed to different systems
Manage time and efforts against specific deliverables
Work in multiple areas, thus being able to gain insight into
the ways of managing by looking at different angles and
listening to different points of view
Upendra Kachru PROJECT MANAGEMENT
Projects are Different
The project management cycle is so finite that it
creates an opportunity to refine skills a lot faster.
As a project manager moves from one stage to
another, you get to know the components of project
management delivery.
You have many opportunities to improve how you
manage each of them, be it budgeting, generating the
scope of work, generating a work breakdown
structure or managing the risks.
Upendra Kachru PROJECT MANAGEMENT
Projects are Different
What differentiates a project is:
1. Risk, and
2. Uncertainty
Due to the variety of roles and the type of
environments you are exposed to.
Upendra Kachru PROJECT MANAGEMENT
Project Management (PM)
PM includes work processes that initiate, plan, execute, and close
work
Work processes require tradeoffs among the scope, quality, cost,
and schedule of the project
PM includes administrative tasks for planning, documenting, and
controlling work
PM includes leadership tasks for visioning, motivating, and
promoting work associates.
PM knowledge, skills, and methods apply for most projects
Project management the application of knowledge, skills,
tools and techniques to project activities to meet project
requirements. PMBOK Guide
Upendra Kachru PROJECT MANAGEMENT
Scope, time, and resources are the three elements (or parameters)
by which a project is bound and which determine the cost of the
project. If values are assigned to any three variables, project
management optimises the remaining one. The dotted lines show
the tradeoffs
Project Management (PM)
Upendra Kachru PROJECT MANAGEMENT
Project Management Body of
Knowledge - Project Life Cycle
All projects go through predictable stages called a project
life cycle.
Life cycle allows for control to assure that the project is
proceeding in a satisfactory manner and that the results are
likely to serve its customers intended purpose
Project life cycle a collection of generally sequential
project phases whose name and number are determined by
the control needs of the organization or organizations
involved in the project. PMBOK Guide
Upendra Kachru PROJECT MANAGEMENT
Project Management Body of
Knowledge Process Groups
In addition to the project life cycle also consists of five
process groups. The five process groups are:
Initiating: defines and authorizes a project or a project phase
Planning: defines and refines objectives and plans actions to
achieve objectives
Executing: directs and manages people and other resources
to accomplish project work
Monitoring and controlling: collects data and checks
progress to determine any needed corrective actions
Closing: formalized acceptance of project outcomes and
ending the project
Upendra Kachru PROJECT MANAGEMENT
Project Management Body of
Knowledge - Knowledge Areas
Integration management: processes and activities needed
to define, combine, unify, and coordinate the various
processes and project management activities
Scope management: processes required to ensure that the
project includes all the work required, and only the work
required, to complete the project successfully
Time management: processes required to manage timely
completion of the project
Cost management: processes involved in estimating,
budgeting, and controlling costs so that the project can be
completed within the approved budget
Upendra Kachru PROJECT MANAGEMENT
Project Management Body of
Knowledge - Knowledge Areas
Quality management: processes and activities of the performing
organization that determine quality policies, objectives, and responsibilities
so that the project will satisfy the needs for which it was undertaken
Human Resources management: processes that organize, manage, and
lead the project team
Communications management: processes required to ensure timely and
appropriate generation, collection, distribution, storage, retrieval, and
ultimate disposition of project information
Risk management: processes of conducting risk management planning,
response planning, and monitoring and control to increase the probability
and impact of positive events and decrease the probability and impact of
negative events in the project
Procurement management: processes necessary to purchase or acquire
products, services, or results from outside the project team
Upendra Kachru PROJECT MANAGEMENT
Soft Skills and Hard Skills
Soft skills include communication and leadership
activities.
Hard skills include risk analysis, quality control,
scheduling, and budgeting work
A successful project manager needs both soft and hard
skills along with the judgment of when each is more
necessary.
Training, experience, and mentoring are instrumental in
developing necessary skills.
Upendra Kachru PROJECT MANAGEMENT
Defining Project Success and Failure
Project success is creating deliverables that include all of the
agreed upon features
Outputs please the projects customers.
Customers use the outputs effectively as they do their work
(meet quality goals)
The project should be completed on schedule and on budget
(meet time and cost constraints).
Organizational learning should take place and be captured for
future projects.
Reap business-level benefits such as development of new
products, increased market share, increased profitability,
decreased cost, etc.
Upendra Kachru PROJECT MANAGEMENT
Defining Project Success and Failure
Good PM means
Completing the project on time
Completing the project within the budget
and the resources available
Completing the defined work within
specifications at a quality level that is
appropriate for the success of the project
Using the assigned resources effectively
and efficiently
Upendra Kachru PROJECT MANAGEMENT
Project Success
Meeting Agreements
Cost, schedule, and specifications met
Customer Success
Needs met, deliverables used, customer satisfied
Performing Organizations Success
Market share, new products, new technology
Project Teams Success
Loyalty, development, satisfaction
Upendra Kachru PROJECT MANAGEMENT
Why Projects Fail
Not enough resources are available for project
completion.
Not enough time has been given to the project.
Project expectations are unclear.
Changes in the scope are not understood or agreed upon
by all parties involved.
Stakeholders disagree regarding expectations for the
project.
Adequate project planning is not used.
Upendra Kachru PROJECT MANAGEMENT
Selecting and Prioritizing Projects
Identify potential projects
All parts of the organization are involved
Determine which projects align best with major
goals of the firm
Ensure overall organizational priorities are
understood, communicated, and accepted
Upendra Kachru PROJECT MANAGEMENT
Selecting and Prioritizing Projects
What value does each potential project bring
to the organization?
Are the demands of performing
each project understood?
Are the resources needed to
perform the project available?
Is there enthusiastic support
both from the external
customers and from one or
more internal champions?
Which projects will best
help the organization
achieve its goals?
Upendra Kachru PROJECT MANAGEMENT
Project Portfolio Process (PPP)
Links projects directly to the goals and strategy of the
organization
Means for monitoring and controlling projects
Identify non-projects
Identify the real options for each project
Identify projects with good fit
Identify co-dependent projects
portfolio a collection of projects or programs and other work that
are grouped together to facilitate effective management of that work
to meet strategic business objectives. The projects or programs of
the portfolio may not necessarily be interdependent or directly
related. PMBOK Guide
Upendra Kachru PROJECT MANAGEMENT
2-26
Project Portfolio Process
Other purposes of Project Portfolio Process
Prioritize list of projects
Limit number of projects
Eliminate risky projects
Eliminate projects that skip the formal selection process
Keep from overloading the organization
To balance the resources with needs
To balance returns
To balance short-, medium-, and long-term returns
Upendra Kachru PROJECT MANAGEMENT
Portfolios
Organizations require work activities including
ongoing operational work and temporary project work
Try to achieve a sense of balance in portfolios
Some large and some small projects
Some high-risk, high-reward projects and some low-risk
projects
Some projects that can be completed quickly and some that
take substantial time
Upendra Kachru PROJECT MANAGEMENT
Portfolio of Projects
Many companies envisage the portfolio as a means of developing
knowledge that can be used to improve work processes for higher profits
Upendra Kachru PROJECT MANAGEMENT
Projects and Subprojects
A large project may be composed of multiple subprojects
The project manager coordinates subprojects and make decisions
that are best for the overall project
subproject a smaller portion of the overall project created
when a project is subdivided into more manageable
components or pieces. PMBOK Guide
Upendra Kachru PROJECT MANAGEMENT
Programs
Programs may last as long as the organization lasts
Specific projects within a program are of limited duration
Portfolios and programs are managed at a level above the typical
project manager
Program a group of related projects managed in a
coordinated way to obtain benefits and control not available
from managing them individually. Programs may include
elements of work outside of the scope of discrete projects in
the program. PMBOK Guide
Upendra Kachru PROJECT MANAGEMENT
Difference between Portfolio and
Program
Programs deal with a group of related projects
Portfolios deal with all of an organizations
projects. A portfolio can include multiple projects
as well as multiple programs
Upendra Kachru PROJECT MANAGEMENT
Project Portfolio & Programs
Upendra Kachru PROJECT MANAGEMENT
Types of Projects
Projects of all types have been taken up throughout history.
Projects come up for different reasons.
A project may be initiated due to market demand. Reliance is
building an extension to its refinery to increase its capacity.
It may be due to organisational need. Indian Institute of
Management (IIM-A) is authorising projects to create new
courses to increase its academic spread.
It may be due to customer request. The Ramky Group has asked
Andhra Electricity Board to setup an electrical sub-station for its
new industrial estate near Vizagapatam.
Upendra Kachru PROJECT MANAGEMENT
Types of Projects
It could also be due to legal requirements. Associated Cement
Company (ACC) has authorised a number of projects for
bagging plants and electrolytic precipitators to control the
emission of particulate matter in the air as required by law.
It could also be due to technological advances. J & K Bank has
decided to implement projects to computerise a large part of its
retail network.
Upendra Kachru PROJECT MANAGEMENT
Types of Projects
Projects are activities that cannot be addressed within
the organisations normal limits of their business
operations, yet they are necessary for the survival of
the organisation and have to be carried out by the
organisation. They can be classified:
By industry
By size
By timing of determination of project scope
By application
Upendra Kachru PROJECT MANAGEMENT
Classifying by Industry
Projects in different industries often have unique
requirements
The fact is that many projects can be repeated or transferred
to other settings or products. For example, a contractor
building houses at different locations can effectively
consider each of these as projects, yet there is continuity.
The results of one project will be another project. Project
management teams move from the older project and adapt to
new projects.
Upendra Kachru PROJECT MANAGEMENT
Classifying by Industry
In industries like aerospace, construction, software
development, etc. this concept is relevant. Here project
management has been institutionalised in the form of
organisation. In these industries, the products that they
provide are best managed as projects.
In most industries new product development and research
and development relating to both process and product are
treated as projects.
Upendra Kachru PROJECT MANAGEMENT
HP ScenarioFour Firms
(Dell, IBM, Intel)
Over 1,000 projects going on at any moment in time
Over 3,000 active project managers in 160 countries
Projects range from $100,000 to over a billion
Over 1,400 active project managers in European/Middle
East in over 40 countries
Upendra Kachru PROJECT MANAGEMENT
Project Management Institute
Communities of Practice
1. Aerospace and Defense
2. Agile
3. Automation Systems
4. Consulting
5. Design-Procurement-Construction
6. E-Business
7. Financial Services
8. Global Sustainability
9. Government
10. Healthcare
11. Human Resource
12. Information Systems
13. Innovation and New Product Development
14. International Development
15. Learning, Education and Development
1. Manufacturing
2. Marketing and Sales
3. Oil, Gas, Petrochemical
4. Organizational
5. Performance Management
6. Pharmaceutical
7. Program Management Office
8. Quality
9. Retail
10. Risk Management
11. Scheduling
12. Service and Outsourcing
13. Students of PM
14. Troubled Projects
15. Utility
16. Women in PM
Upendra Kachru PROJECT MANAGEMENT
Classifying by Size
Large projects often
require more detailed
planning and control
Upendra Kachru PROJECT MANAGEMENT
Classifying by Timing of Project Scope
Clarity
How early in the project
the project manager and
team are likely to be able
to determine what the
project scope will be
Upendra Kachru PROJECT MANAGEMENT
Classification by Application
All projects require planning and control
The art of project management deals with when to
use certain techniques, how much detail to use, and
how to tailor the techniques to the needs of a
specific project.
Upendra Kachru PROJECT MANAGEMENT
Classification by Application
Organizational Change
Quality and Productivity Improvement
R&D
Information Systems
Construction
Upendra Kachru PROJECT MANAGEMENT
Summary
A project is an organized set of work efforts undertaken to produce a
unique output subject to limitations of time and resources
Project management includes work processes that initiate, plan, execute,
control, and close project work.
Tradeoffs must be made between the scope, quality, cost, and schedule
All projects, regardless of size, complexity, or application, need to be
planned and managed.
Successful projects require an understanding of what project success is and
what drives it
Successful projects require an understanding of project failure and its major
causes.
Project management requires an understanding of the various executive,
managerial, and associate roles in project management
Upendra Kachru PROJECT MANAGEMENT
Project Management Project
Design and Build a model of
an Energy Efficient House
Upendra Kachru PROJECT MANAGEMENT
What is not your project?
Please remember when you work on your project
that a project
Is not a schedule
Is not a budget
Is not a person or job description
Is not a copy of Microsoft project
It is about meeting project objectives in terms of
cost, schedule, specifications, and learning the use
and acquiring the different areas of knowledge
(PMBOK).
Upendra Kachru PROJECT MANAGEMENT
C l i c k t o e d i t c o m p a n y s l o g a n .