PM

Introduction to Project Management

Definition of Project Management

  • Project Management: Application of knowledge, skills, tools, and techniques to project activities.

  • Necessary for systematic planning and careful implementation to meet various objectives.

  • Growth in sophistication due to economic challenges, globalization, technology advancements, and quality stakeholder concerns.

Definition of a Project

  • Project: A temporary endeavor to create a unique product, service, or result.

    • Definitions:

      • Temporary endeavor with specific objectives (ANSI/PMI).

      • Unique process comprising controlled activities with start and finish dates (ISO10006).

  • Examples of projects:

    • Developing agricultural technology.

    • Creating irrigation facilities.

    • Construction projects, etc.

Project Characteristics

  • Common traits found in all projects:

    • Unique in nature.

    • Definite objectives (goals).

    • Requires resources.

    • Specific time frames (defined start and finish).

    • Involves risks and uncertainties.

    • Requires teamwork and interdisciplinary approaches.

Project Performance Dimensions

Key Performance Dimensions

  • Three major dimensions defining project performance:

    • Scope

    • Time

    • Resource

Interrelationship of Dimensions

  • Dimensions depicted as an equilateral triangle indicating:

    • Changes in one affect others.

    • E.g., Enlarging scope affects time and costs.

  • Recently, stakeholder satisfaction is added as a dimension, viewed as part of project scope.

Measurement of Performance

  • Performance formula: Performance = f(Scope, Cost, Time).

  • Known as the Quality Triangle in management literature.

Project Life Cycle Phases

  • Phases of a project:

    1. Conceptualization

    2. Planning

    3. Execution

    4. Termination

  • Each phase has distinct deliverables, such as feasibility reports and implementation plans.

Project Execution & Termination

Conceptualization Phase

  • Involves:

    • Initial idea generation.

    • Feasibility and appraisal of projects.

  • Deliverable: Proposal outlining rationale, costs, and methods.

Planning Phase

  • Activities include:

    • Identification of tasks and sequencing.

    • Time estimation and budgeting.

    • Development of a Detailed Project Report (DPR).

Execution Phase

  • Core activities:

    • Implementation of project plans.

    • Monitoring, controlling, and communicating progress.

Termination Phase

  • Completion includes:

    • Delivery of final products and evaluation.

    • Arrangements for follow-up and operational handover.

Project Classification

Types of Projects

  • Projects classified into two main groups:

    1. Industrial Projects: Commercial aims; provide goods/services with return on investment.

    2. Development Projects: Aim to promote economic development (e.g., infrastructure, health).

Differences Between Project Types

  • Comparison table summarizing essential differences:

    • Scale, promoters, investment levels, gestation periods, profitability, funding sources.

Project Management Features

Key Features

  • Project management distinguished by:

    • Project manager

    • Project team.

    • Project management system (structured processes for planning).

Rationale for Project Management

  • Enhances handling of complex, costly, and risky tasks effectively.

  • Facilitates task orientation, ensuring improved project execution and scheduling.

Project Identification and Formulation

Importance of Project Identification

  • Recognizes specific projects based on market demand or resource utilization.

  • Essential for effective project formulation.

Steps in Project Formulation

  • Progresses through several stages:

    • Opportunity studies to identify investments.

    • Feasibility studies to assess project viability.

    • Preparation of a Detailed Project Report (DPR).

Support Studies

  • Carried out before full feasibility studies to cover critical aspects of projects.

Feasibility Study Components

Key Analysis Areas

  1. Economic and Market Analysis.

  2. Technical Feasibility.

  3. Environmental Impact Studies.

  4. Financial Analysis.

Financial Analysis Measures

  • Common techniques include:

    • Pay-back period.

    • Return on Investment (ROI).

    • Net Present Value (NPV).

    • Internal Rate of Return (IRR).

Project Scheduling Techniques

Techniques Overview

  • Bar Charts and Network Diagrams:

    • Bar charts visualize task durations (Gantt charts).

    • Networks illustrate task relationships (CPM, PERT).

Gantt Chart Limitations

  • Difficult to manage complex projects with numerous tasks.

Network Analysis Techniques

  • BPM and PERT used for task scheduling, critical path analysis, and resource allocation.

Project Control Steps

Control Process Steps

  1. Fixing up review periods.

  2. Obtaining progress information.

  3. Comparing with scheduled progress.

  4. Taking corrective actions as required.

Importance of Network Analysis

  • Helps to continuously assess project progress and address discrepancies.

  • Utilized for effective resource management and schedule adjustment.

Microsoft Project Overview

Starting MS Project

  • Methods to access project tools and help.

MS Project Interface

  • Overview of the main elements (menus, toolbars, working area).

Task Entry and Linking

  • Combining task entry and relationships to visualize overall project timelines.

  • Input and amend task details effectively.