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Our Case Study

A Wedding:
This case study is a model situation around which we have been working for effectiveness and success. We are
going through project management, using the functions of leading, defining, planning, organizing, controlling, and
closing.

Rajendra Dhakal planned to immigrate to USA. Before he goes ahead, he thought that he will have no enough time
to marry his girlfriend. He planned to complete his wedding within 3 months and discussed with family members
to manage. His family members were allocated the jobs; finalizing the talk at guardian level, sending
announcements to friends, relatives, and newspapers; providing pre-wedding parties and rehearsals (e.g. bachelor
parties and bridal showers); determining the ceremony and reception locations; arranging for travel and
accommodations, food and beverages; preparing and mailing invitations; providing wedding attire, flowers, sound,
lighting, music, entertainment, decorations and props, photography and videotaping; coordinating wedding
transportation; and preparing the wedding feast and cake.


Fundamentals of Project Management
by James P. Lewis
What is project?
What is the difference between project management and managing in general? Arent they really the same?
The answer, of course, is no. A project is done only once, whereas most jobs are ongoing or repetitive, and
managing one-time jobs is different from managing ongoing ones. For one thing, the people who work on a project
may be reassigned to other jobs once the project is completed, so the team is temporary. Often the team members
do not report to the project manager on a regular basis, meaning that the project manager has no direct authority
over them, a situation that presents its own set of problems.

Quality expert Dr. J. M. Juran defines a project as a problem scheduled for solution. This definition forces us to
recognize that projects are aimed at solving problems and that failure to define the problem properly is what
sometimes gets us into trouble. Interestingly, when you tell project team members that you want to begin planning
a project by writing a problem statement, they tend to say, We dont need to do that. We all know what the
problem is.

A project is a problem scheduled for solution. J. M. JURAN

To help a team at this point, I offer a definition of a problem. A desired objective is not a problem by itself. The
key to a problem is that there is an obstacle that prevents you from closing the gap (achieving your objective)
easily. Problem solving consists of finding ways of overcoming or getting around obstacles. A problem is a gap
between where you are and where you want to be, with an obstacle that prevents easy movement to close the gap.

To help flesh out the definition, answer the following questions:
What is the desired end state or outcome?
What prevents or makes achieving it difficult?
How will you know when you have achieved the desired result?

Harvey A. Levine
Lets look at a generally accepted definition of project management, prefaced with a definition of a project.
A Project Is:
A group of tasks, performed in a definable time period, in order to meet a specific set of objectives.
It is likely to be a one-time program.
It has a life cycle, with a specific start and end.
It has a workscope that can be categorized into definable tasks.
It has a budget.
It is likely to require the use of multiple resources. Many of these resources may be scarce and may have to be
shared with others.
It may require the establishment of a special organization, or the crossing of traditional organizational
boundaries.

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With the definition, above, we should start to see why we need a different set of practices to manage projects. Here
we are managing specific tasks and resources against a time-oriented set of objectives. The budgets are associated
with defined work, within a specified time frame. Resources are often led by people to whom they do not report.
Its not so much what we manage that is so different, but rather the way that we manage and the measurement and
control practices involved in this task.

What is management?
"Management is the art of getting things done through people." Mary Parker Follet
The organization and coordination of the activities of a business in order to achieve defined objectives.
Management is often included as a factor of production along with machines, materials, and money. Management
consists of the interlocking functions of creating corporate policy and organizing, planning, controlling,
and directing an organization's resources in order to achieve the objectives of that policy.

According to Theo Heimann, management has three different meanings, viz.,

Management as a Noun : refers to a Group of Managers.
Management as a Process : refers to the Functions of Management i.e. Planning, Organising, Directing,
Controlling, etc.
Management as a Discipline : refers to the Subject of Management.

Management is an individual or a group of individuals that accept responsibilities to run an organisation. They
plan, organise, direct and control all the essential activities of the organisation. Management does not do the work
themselves. They motivate others to do the work and co-ordinate (i.e. bring together) all the work for achieving the
objectives of the organisation.

Management brings together all Six Ms i.e. Men and Women, Money, Machines, Materials, Methods and Markets.
They use these resources for achieving the objectives of the organisation such as high sales, maximum
profits, business expansion, etc.

What is project management?
Project management is the planning, scheduling, and controlling of project activities to meet project objectives.
The major objectives that must be met include performance, cost, and time goals, while at the same time you
control or maintain the scope of the project at the correct level.

Ideally, the scope of a project should remain constant throughout the life of the job. Naturally, this seldom happens.
In most cases the magnitude (scope) of the work increases as a result of overlooked details, unforeseen problems,
or an inadequately defined problem. The most common reason for scope changes is that something is forgotten.

Project management: The planning, scheduling, and controlling of project activities to meet project objectives.
Scope generally increases. In fact, about the only time project scope decreases is when the budget is cut and some
of the originally planned work is put on hold. The problem with scope changes is that they tend to be small and
incremental; if a number of them occur, the project budget or schedule may suffer. This is a fairly common cause
of project failures.

A project manager should advise stakeholders (especially customers) of the impact on the project of a change in
scope so that decisions can be made about how to handle such changes. If a customer is told that a requested
change will result in a 20% increase in project costs, the customer may opt to defer the change. If the impact is not
made clear, the customer may ask for the change, thinking the costs will not increase significantly, and be very
dismayed at the end of the job to learn of the true impact. A project manager has a responsibility to keep
stakeholders informed about the impact of scope changes on the project, protecting them from surprises at the end
of the job and protecting the project manager from being evaluated on original targets rather than on revised ones.

Performance: The quality of the work being done. cost: The cost of project work, directly related to the human and
physical resources applied. time: The schedule that must be met. scope: The magnitude of the work to be
performed.

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The four project objectives are related to each other by the equation: Cost = f(P,T,S)

What the equation says is that cost is a function ( f ) of performance (P), time (T), and scope (S). As P and S
increase, cost generally increases. The relationship between time and cost, however, is not linear. As a rule, cost
increases as the time to do the project decreases below a certain optimum time. That is, there exists a project
duration that results in the best performance of all resources. If the duration is shortened, it is often necessary to
pay premium labor rates as a consequence. Further, worker errors often increase, resulting in costs for corrections,
and productivity often declines. Studies have shown that if a knowledge worker spends twelve hours of overtime
on a job, the actual increase in output is equivalent to that normally obtained in two hours of regular work.

What we manage in the project:
Work scope.
Time.
Resources.
Costs.
Quality.
Communication.
Risk.
Contracts and Procurement.

The work scope definition is key to the project management function. Without a precise and complete definition of the
work, there is no foundation for the management of time, resources, and costs. There are several techniques that have
been recognized to aid in the process of work scope definition. Best known is the WBS (Work Breakdown Structure).
We also strongly advise that traditional strategic planning techniques be applied at the project initiation stage. Standard
routines have been established for the planning and control of schedules, resources, and costs.

Importance of Project Management
Project Management, the managerial process, fifth edition, Erik W. Larson and Clifford F. Gray
Project management is no longer a special-need management. It is rapidly becoming a standard way of doing business.
An increasing percentage of the typical firms effort is being devoted to projects. The future promises an increase in the
importance and the role of projects in contributing to the strategic direction of organizations. Several reasons why this is
the cases are briefly discussed below.

Compression of the Product Life Cycle
One of the most significant driving forces behind the demand for project management is the shortening of the product
life cycle. For example, today in high-tech industries the product life cycle is averaging 1 to 3 years. Only 30 years ago,
life cycles of 10 to 15 years were not uncommon. Time to market for new products with short life cycles has become
increasingly important. A common rule of thumb in the world of high-tech product development is that a six-month
project delay can result in a 33 percent loss in product revenue share. Speed, therefore, becomes a competitive
advantage; more and more organizations are relying on cross-functional project teams to get new products and services
to the market as quickly as possible.

Knowledge Explosion
The growth in new knowledge has increased the complexity of projects because projects encompass the latest advances.
For example, building a road 30 years ago was a somewhat simple process. Today, each area has increased in
complexity, including materials, specifications, codes, aesthetics, equipment, and required specialists. Similarly, in
todays digital, electronic age it is becoming hard to find a new product that does not contain at least one microchip.
Product complexity has increased the need to integrate divergent technologies. Project management has emerged as an
important discipline for achieving this task.

Triple Bottom Line (planet, people, profit)
The threat of global warming has brought sustainable business practices to the forefront. Businesses can no longer
simply focus on maximizing profit to the detriment of the environment and society. Efforts to reduce carbon imprint and
utilize renewable resources are realized through effective project management. The impact of this movement towards
sustainability can be seen in changes in the objectives and techniques used to complete projects.

Corporate Downsizing
The last decade has seen a dramatic restructuring of organizational life. Downsizing (or rightsizing if you are still
employed) and sticking to core competencies have become necessary for survival for many firms. Middle management is
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a mere skeleton of the past. In todays flatter and leaner organizations, where change is a constant, project management
is replacing middle management as a way of ensuring that things get done. Corporate downsizing has also led to a
change in the way organizations approach projects. Companies outsource significant segments of project work, and
project managers have to manage not only their own people but also their counterparts in different organizations.

I ncreased Customer Focus
Increased competition has placed a premium on customer satisfaction. Customers no longer simply settle for generic
products and services. They want customized products and services that cater to their specific needs. This mandate
requires a much closer working relationship between the provider and the receiver. Account executives and sales
representatives are assuming more of a project managers role as they work with their organization to satisfy the unique
needs and requests of clients.

Increased customer attention has also prompted the development of customized products and services. For example, 10
years ago buying a set of golf clubs was a relatively simple process: You picked out a set based on price and feel. Today,
there are golf clubs for tall players and short players, clubs for players who tend to slice the ball and clubs for those who
hook the ball, high-tech clubs with the latest metallurgic discovery guaranteed to add distance, and so forth. Project
management is critical both to development of customized products and services and to sustaining lucrative relationships
with customers.

Small Projects Represent Big Problems
The velocity of change required to remain competitive or simply keep up has created an organizational climate in which
hundreds of projects are implemented concurrently. This climate has created a multi-project environment and a plethora
of new problems. Sharing and prioritizing resources across a portfolio of projects is a major challenge for senior
management. Many firms have no idea of the problems involved with inefficient management of small projects. Small
projects typically carry the same or more risk as do large projects. Small projects are perceived as having little impact on
the bottom line because they do not demand large amounts of scarce resources and/or money. Because so many small
projects are going on concurrently and because the perception of the inefficiency impact is small, measuring inefficiency
is usually nonexistent. Unfortunately, many small projects soon add up to large sums of money. Many customers and
millions of dollars are lost each year on small projects in product and service organizations. Small projects can represent
hidden costs not measured in the accounting system.

Organizations with many small projects going on concurrently face the most difficult project management problems. A
key question becomes one of how to create an organizational environment that supports multi-project management. A
process is needed to prioritize and develop a portfolio of small projects that supports the mission of the organization.

In summary, there are a variety of environmental forces interacting in todays business world that contribute to the
increased demand for good project management across all industries and sectors. Project management appears to be
ideally suited for a business environment requiring accountability, flexibility, innovation, speed, and continuous
improvement.

The Project Life Cycle
Another way of illustrating the unique nature of project work is in terms of the project life cycle. Some project managers
find it useful to use the project life cycle as the cornerstone for managing projects. The life cycle recognizes that projects
have a limited life span and that there are predictable changes in level of effort and focus over the life of the project.
There are a number of different life-cycle models in project management literature. Many are unique to a specific
industry or type of project. For example, a new software development project may consist of five phases: definition,
design, code, integration/test, and maintenance. A generic cycle is depicted in figure.

The project life cycle typically passes sequentially through four stages: defining, planning, executing, and delivering.
The starting point begins the moment the project is given the go-ahead. Project effort starts slowly, builds to a peak, and
then declines to delivery of the project to the customer.

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1. Defining stage: Specifications of the project are defined; project objectives are established; teams are formed;
major responsibilities are assigned.

2. Planning stage: The level of effort increases, and plans are developed to determine what the project will
entail, when it will be scheduled, whom it will benefit, what quality level should be maintained, and what the
budget will be.

3. Executing stage: A major portion of the project work takes placeboth physical and mental. The physical
product is produced (a bridge, a report, a software program). Time, cost, and specification measures are used
for control. Is the project on schedule, on budget, and meeting specifications? What are the forecasts of each of
these measures? What revisions/changes are necessary?

4. Closing stage: Closing includes three activities: delivering the project product to the customer, redeploying
project resources, and post-project review. Delivery of the project might include customer training and
transferring documents. Redeployment usually involves releasing project equipment/materials to other projects
and finding new assignments for team members. Post-project reviews include not only assessing performance
but also capturing lessons learned.

In practice, the project life cycle is used by some project groups to depict the timing of major tasks over the life of
the project. For example, the design team might plan a major commitment of resources in the defining stage, while
the quality team would expect their major effort to increase in the latter stages of the project life cycle. Because
most organizations have a portfolio of projects going on concurrently, each at a different stage of each projects life
cycle, careful planning and management at the organization and project levels are imperative.