PROJECT MANAGEMENT SKILLS
Chapter 1: Introduction to Project and Project Management
1.1 Meaning of Project:
A project is a temporary effort undertaken to create a unique product, service, or result.
It has a start and an end, defined goals, timeline, and budget.
Example: Building a house, developing software, organizing an event.
1.3 Definition and No Change Mode
A project is defined as:
“A temporary endeavor undertaken to create a unique product, service, or result.” –
PMBOK (Project Management Body of Knowledge)
No Change Mode:
Once a project is planned and approved, changes should be avoided unless absolutely
necessary.
Helps in controlling costs, time, and maintaining quality.
1.4 Features of a Project
1) Every project is unique in nature.
2) A project has a fixed set of objectives(goals) to achieve.
3) Once the objectives have been achieved, the project comes to an end.
4) Have a specific time frame for completion with a definite start and finish.
5) Requires set of resources.
6) Every project has risk and uncertainty associated with it.
7) Project is developed by a dedicated team of work force.
8) Project has a life cycle reflected by growth, maturity and decline.
9) Change is an inherent feature in any project throughout it’s life.
10) Project is based on systematic procedure and it is difficult to learn fully the end
results at any stage.
11) A project works for a specific set of goals with the complex set of different
activities.
12) High level of sub-contraction of work can be done in a project.
13) Well qualified professionals efficiently execute the complex mega project.
1.5 Types of Projects
By Sector:
Government, Private, NGO
By Nature:
Construction, IT, Educational, Social
By Size:
Small, Medium, Large
By Funding:
Public-funded, Self-funded, Foreign-aided
1.6 Benefits of Project Management
Project Management helps to avail the following benefits:
1. Meet the business objectives.
2. Satisfy stakeholder expectations.
3. Be more predictable.
4. Increase the chances of success.
5. Deliver the right products at the right time.
6. Resolve problems and issues.
7. Respond to risks in a timely manner.
8. Optimize the use of organizational resources.
9. Identify, recover, or terminate failing projects.
10.Manage constraints (e.g., scope, quality, schedule, costs, resources).
11.Balance the influence of constraints on the project.
12.Manage change in a better manner.
1.7 Obstacles in Project Management
1. Project complexities.
2. Execution of customer’s special requirement might result in time delay.
3. Co-ordination with many agencies.
4. Organisation restructuring is a typical task.
5. Project risks.
6. Statutory changes.
7. Changes in technology needs highly qualified team.
8. Forward planning and pricing.
1.8 Project Management – A Profession
Recognized career with professional certifications (e.g., PMP).
Involves knowledge of planning, execution, and monitoring.
Requires skills like leadership, time management, budgeting, and team coordination.
Project Management:
Project management is the application of knowledge, skills, tools, and techniques
to project activities to meet the project requirements. Project management enables
organizations to execute projects effectively and efficiently.
Definition: “A controlled process of initiating, planning, executing, and closing
down a project.”
1.9 Project Manager and His Role
The Project Manager (PM) is responsible for:
Planning, executing, and closing the project.
Managing resources, risks, stakeholders.
Ensuring quality and timely delivery.
Acts as a leader, communicator, and problem solver.
1.10 Project Consultants
Experts who advise on project planning, strategy, and problem-solving.
Help in feasibility studies, technical decisions, and compliance.
Provide external, unbiased insights.
Need of Consultants
Need on Consultants arises:
(i) When a project with new technology is undertaken.
(ii) When the in-house consultant is incapable of meeting the requirement of
the project.
(iii) When there is no in-house facility available in the organisation.
(iv) When the project is executed based on imported technology.
(v) To avail the advantages of expertise available with the outside consultants.
Types of consultants:
Consultants may be of,
(a) In-house consultants
(b) Outside consultants
Local consultants
Foreign consultants
1.11 What is Operation?
Operation refers to ongoing, repetitive work in an organization.
Example: Manufacturing, daily customer service.
Unlike projects, operations are continuous and do not have an end point.
1.12 Difference between Project and Operation
Sl. No. Project Operation
1 Unique and temporary Ongoing and permanent with a
repetitive output
2 Fixed budget Earn a profit to run the business.
3 Executed to start a new business Does not produce anything new
objective and terminated when it is and is ongoing.
achieved.
4 Create a unique product, service, or Produce the same product, aim
result. to earn a profit and keep the
system running.
5 More risks in projects as they are Fewer risks as they are repeated
usually done for the first time. many times.
6 Performance intensive Efficiency intensive
7 Managed through project Require business process
management. management.
1.13 What is Process in Project Management and Process Groups?
A process is a set of related tasks that are performed to achieve a specific result.
Process Groups (as per PMBOK):
1. Initiating – Define and authorize the project.
2. Planning – Define scope, schedule, and resources.
3. Executing – Complete the work defined in the plan.
4. Monitoring & Controlling – Track and manage performance.
5. Closing – Finalize the project and hand over.
1.14 What is Scope? Difference between Project and Scope
Scope: The detailed set of deliverables or features of a project.
It defines what is included and what is excluded.
Project: The entire effort, including planning, execution, monitoring, and closing.
Difference:
Project is the whole journey.
Scope is the destination (outcome) of that journey.
Chapter 2: Project Administration
2.1 Essentials of Project Administration
Project administration refers to managing the internal and external activities for project
success.
Includes planning, execution, supervision, and control.
Essentials:
Clear objectives and scope
Defined roles and responsibilities
Effective communication and documentation
Time, cost, and quality management
Stakeholder involvement and monitoring
2.2 Project Team
A project team is a group of individuals with specific skills working toward a common
goal.
Roles: Project manager, engineers, designers, accountants, procurement officers, etc.
Key Features:
Clear hierarchy
Good coordination
Role clarity and accountability
Team training and motivation
2.3 Project Design
Project design includes the blueprint or framework for how the project will be executed.
Steps:
Requirement analysis
Feasibility studies
Technical drawings/schematics
Resource planning
Ensures clarity in execution and reduces chances of failure.
2.4 Work Breakdown Structure (WBS)
Work breakdown structure, WBS in short, is a technique which breaks down a
work into its components and at the same time establishes the connections
between the components.
It is constructed by dividing the project into its major parts, with each of these
being further divided into sub-parts. This is continued till a breakdown is done in
terms of manageable units of work for which responsibility can be defined.
The work breakdown structure defines what work is to be done in a detailed
manner. To assign responsibility for the tasks to be done, the work breakdown
structure has to be integrated with the project organisation structure.
Work breakdown through the hardware approach is the only natural and
permanent way of breaking work. Performance target, schedule, budget and
accountability can similarly be fixed for any hardware element.
Benefits:
Better planning and control
Role and responsibility clarity
Improved resource management
2.5 Project Execution Plan (PEP)
The Project Execution Plan is the governing document that establishes the
means to execute, monitor, and control projects. Project execution plan includes
four sub-plans. These are:
1. Contracting Plan
2. Work packing Plan
3. Organization Plan
4. Systems and Procedure Plan
The PEP outlines how a project will be delivered.
Includes:
Scope of work
Schedule
Resources and budget
Quality control and risk management
Serves as a guiding document for all stakeholders.
2.6 Contracting Plan
Strategy for engaging external vendors and contractors.
Includes:
Type of contracts: (fixed price, cost-plus, time & material)
Terms and conditions:
Legal obligations and dispute resolution
Ensures legal protection and smooth external collaborations.
2.7 Work Packing Plan
A work package is a group of related tasks within a project. Because they look
like projects themselves, they are often thought of as sub-projects within a larger
project. Work packages are the smallest unit of work that a project can be broken
down into when creating the Work Breakdown Structure (WBS).
Detailed grouping of related tasks into "Work Packages."
Helps assign responsibilities and timelines.
Facilitates performance tracking and accountability.
2.8 Organization Plan
An Organization Plan is basically a “to do” list for an organization. It lists out
the plan of work, programs, and organizational growth over a period of time, the
tasks involved, who is responsible for them, and when they'll be done.
Defines the structure and hierarchy of the project team.
Types:
Functional
Projectized
Matrix
Clearly defines reporting relationships, authority, and communication flow.
2.9 Systems and Procedure Plan
More importance has to be given to routine systems and procedure so that no
intervention is required in the day-to-day operation of a system. There are at least
seven routine sub-systems of project management for which appropriate
procedures can be designed right at the start of the project implementation.
These sub-systems are:
1. Contract management
2. Configuration management
3. Time management
4. Cost management
5. Fund management
6. Materials management
7. Communication management
Outlines systems (IT, communication, etc.) and operational procedures for the project.
Ensures:
Efficiency
Transparency
Standardization
Helps streamline operations and improve decision-making.
2.10 Project Procedure Manual
A project procedure manual is to be prepared in such a way that the interacting
agencies are able to see their roles and mutual relationships in achieving the common
goal. Preparation of a project procedure manual should start with each project
management sub system. A system break-up has to be carried out on each sub-system
to identify the need for procedure write-ups. While carrying out system break-up the
question to be asked is what the system must achieve and what contributes to the
effective functioning of each of the elements. The project procedure manual gives a
complete picture about the system.
A document that details how different project tasks and activities should be carried out.
Includes:
Guidelines
Templates and forms
Approval processes
Promotes consistency and compliance.
2.11 Project Diary
A daily logbook maintained by the project manager or site engineer.
Records:
Daily activities
Progress updates
Issues faced and resolutions
Helps in performance tracking and post-project evaluation.
2.12 Project Execution System
A framework for carrying out project tasks.
Includes:
Process flow
Resource allocation system
Control mechanisms
Ensures that execution is aligned with the project plan.
2.13 Project Direction
Involves guiding and supervising the team during project execution.
Responsibilities of the project director:
Monitoring performance
Motivating the team
Conflict resolution
Decision making
Project Direction is the process of implementing and carrying out of those
approved plans that are necessary to achieve objectives.
Project Direction involves steps as follows.
1. Staffing – Seeing that a professional person is chosen for every position.
2. Training – Training individuals and groups on how to fulfil their duties and
responsibilities.
3. Supervising – Giving day-to-day instructions, guidance and discipline as
required so that they can fulfil their duties and responsibilities.
4. Delegating – Assigning work, responsibility, and authority so that others can
make maximum utilization of their abilities.
5. Motivating – Encouraging others to put more effort into the successful
completion of the projects.
6. Counselling – Solve the personal problems and holding private discussions
about how he might do better work.
7. Coordinating – Bring synchronization between different activities.
2.14 Communication in a Project
Critical for coordination among stakeholders.
Includes:
Internal and external communication
Use of emails, reports, meetings, dashboards
Good communication minimizes errors and misunderstandings.
Steps to be taken for effective communication:
1. Make communication a priority
2. Don’t assume you know everything
3. Keep things positive
4. Switch up the communication channels
5. Keep updates timely and concise
2.15 Project Co-ordination
Ensures all departments and individuals work in harmony.
Techniques:
Interdepartmental meetings
Status reports
Centralized project management software
Enhances efficiency and reduces duplication of efforts.
2.16 Pre-requisites for Successful Project Implementation
Clearly defined objectives and scope
Realistic scheduling and budgeting
Strong leadership and skilled team
Efficient risk management
Stakeholder engagement
Continuous monitoring and improvement
Adequate Formulation:
Often project formulation is deficient because of one or more of the following
shortcomings.
1. Poor assessments of input requirements.
2. Improper field investigation.
3. Careless assessment of input requirements.
4. Improper methods used for estimating costs and benefits.
5. Omission of the project linkages.
6. Flawed judgements because of lack of experience and expertise.
7. Undue hurry to get started.
Chapter 3: Project Life Cycle
3.1 Introduction
The Project Life Cycle is the structured path a project follows from beginning to end.
It ensures that each stage of the project is managed efficiently.
Every project has a beginning, a middle period (during which activities move the
project toward completion) and an ending (either successful or unsuccessful). These
different phase of development in a project is called project life cycle. A clear
understanding of these phases helps entrepreneurs and project managers to have
better control over existing resources to achieve the desired goals.
Helps managers plan, execute, and close projects in a disciplined manner.
Applicable to all types of projects: construction, IT, education, infrastructure, etc.
3.2 Phases of Project Life Cycle
1. Initiation:
Identifying a need or problem.
Performing feasibility analysis.
Preparing project charter and getting approval.
2. Planning:
Defining project objectives and scope.
Scheduling tasks and estimating budget.
Resource allocation and risk identification.
3. Execution:
Assigning tasks to teams.
Procurement of resources.
Communication and quality control.
4. Monitoring and Controlling:
Tracking project progress.
Managing changes.
Ensuring adherence to plan.
5. Closure:
Final product delivery.
Documentation and handover.
Team release and celebration.
3.3 Project Management Life Cycle – General
Broader than project life cycle.
Covers all activities from business need identification to project closure.
Involves integration of people, processes, and technology.
Continuous communication with stakeholders is essential.
3.4 Project Planning
Establishes roadmap for the project.
Includes:
Work Breakdown Structure (WBS)
Cost estimation and budgeting
Resource and procurement planning
Risk management planning
Communication and stakeholder engagement
Planning is iterative – updated as the project progresses.
3.5 Project Execution
Project team performs planned tasks.
Activities:
Team meetings and task assignments
Procurement and logistics
Deliverable creation
Tools used: Gantt Charts, Project Management Software (e.g., MS Project, Primavera)
Managers ensure team coordination and maintain quality.
3.6 Project Closure
Ensures all project work is complete.
Steps:
Final delivery and client approval
Final cost and performance report
Lessons learned and documentation
Team evaluation and release
Official sign-off marks end of the project.
3.7 Project Risks
Definition of Risk:
Risk is defined as the possibility of an outcome being different from the expected
outcome. It refers to the possibility of adverse results flowing from the uncertainty
involved in carrying out the activities.
Project Risks:
The element of risk is inherent in every activity of a project. All projects are
exposed to various types of risks. Since all risks cannot be eliminated or avoided, it is
the job of the project manager to ensure that risks do not have adverse consequences.
Every project manager follows a specialised risk management methodology that
normally consists of four processes: risk identification, risk quantification, risk
response and risk control.
Types:
Financial
Technical
Operational
External/environmental
Risk Management Process:
Identification
Assessment
Response Planning
Monitoring
3.8 Types of Risks: Illustrations
1.Technical Risks:
Technical risks refer to changes in technical specifications of the product resultsin loss.
2. Social Risks:
Social risks refer to risks arising from changes in the needs and preferences of
customers. Lack of necessary natural resources, labour unrest, agitations and social
movements against the project also constitute social risks.
3. Economic Risks:
Economic risks refer to an increase in the rate of inflation, changes in the economic
policies of governments.
4. Political Risks:
Nationalisation or privatisation of a particular industry, political instability, and trade
restriction are some examples of political risks. The project manager should ensure
that the project does not go against the political interests of the country.
5. Production Risks:
Production risks refer to the shortage of necessary raw materials, sudden breakdown
of key machinery and huge rise in installation and maintenance costs.
6. Marketing Risks:
Marketing risks refer to failure of the developed product or service in the market due
to changes in market demand, errors in forecasting of demand, or difficulties in
distribution.
7. Financial Risks:
Financial risks refer to bad debts, change in the interest rate, wrong choice of
investments and mistakes in the accounting procedures.
8. Human Risks:
Human risks refer to the sudden demise of key employee, limited availability of skilled
employees, inter-group politics, etc.
3.9 Risk Assessment Techniques with Illustrations
1. Risk Matrix:
Categorizes risks by impact and probability.
High-impact, high-probability risks prioritized.
2. SWOT Analysis:
Helps understand internal strengths/weaknesses and external threats.
3. Monte Carlo Simulation:
Uses computer models to simulate different risk scenarios.
4. Delphi Technique:
Structured communication among experts to assess risks.
3.10 Project Cost Risk Analysis:
Future estimates are not facts but statements of probabilities about how things
will turn out. Hence, actual costs may be higher or lower than estimates made by even
experts.
Cost risk analysis considers the different costs associated with a project (labour,
materials, equipment, administration, etc) and focuses on the uncertainties and risks
that may affect these costs.
Identifies areas where costs may exceed budget.
Sources:
Poor estimation
Price escalation
Delay penalties
Techniques:
Sensitivity Analysis
What-If Scenarios
Cost Buffering (contingency reserve)
3.11 Estimating Time and Cost Overrun Risks
Time and cost overrun are the most common and most serious risks in project
completion in especially the complex and big projects. Over estimating the time
requirements or providing contingencies are the remedies commonly used to take care
of the situation. However, statistical tools are available to simulate the project time
more accurately.
Overruns occur when:
Timeline underestimation
Scope changes
Inefficient work methods
Preventive Actions:
Use of historical data
Regular project audits
Project buffers and contingency plans
3.12 Organizational/Systemic Reasons for Cost Overruns
Ineffective project governance
Unclear responsibilities
Lack of control systems (MIS, ERP)
Inefficient vendor and contract management
Frequent changes in leadership or policy
3.13 Time Overruns
Delay in project timeline leads to:
Increased cost
Penalties
Client dissatisfaction
Causes:
Reasons for Project Cost Overruns:
1. Unplanned expansion of the project scope.
2. Inaccurate initial cost estimation.
3. Failures in project performance.
4. Errors in project design.
5. Improper risk management.
6. Improper project team building.
7. Wrong choice of equipment.
8. Incompetent material suppliers.
Time overruns occur due to:
1. A change in the scope of the project.
2. Ineffective project time management.
3. Delays in starting and executing some of the project activities.
4. A delay in one project, results in delays in subsequent projects.
5. Use of outdated technology.
6. Political interference.
7. Poor administration.
Solutions:
Early warning systems
Critical path monitoring
Agile project adjustments
