PROJECT INTRODUCTIO

N
MANAGEMENT
 A project is an investment
opportunity yielding good
returns, provided it is
managed in the best manner,
otherwise the whole
investment is a waste.
What is a
project? This means that a project
needs to be designed with the
aim of efficient management
earning adequate returns to
provide for future
development with internally
generated resources.
 It is an accepted fact that
All the interrelated activities of only the well planned, properly
a project are to be planned implemented and effectively
and executed in sequence to controlled projects yield the
reach the expectations. expected returns.

Every project is unique having

specific goal, requiring linking These in turn, bring forth
of related activities to be certain constraints resources
completed in a specific time like time, cost, materials, men,
schedule. and managerial ability.
Dictionary of Management
defines project as:
“An investment carried out according to
the plan, in order to achieve a definite
objective within a certain time and
which will cease when the objective is
achieved.”

It is the application of modern management

techniques and system to the execution of a
project from start to finish to achieve
predetermined objectives of scope, quality, time,
and cost , to the equal satisfaction of those
involved.
 A project, is a non
routine, non repetitive,
one off undertaking,
The above definition a) a specific goal
normally with
means Project has: oriented activity.
discretional, financial,
and technical
performance goals.

d) a scientifically
b) a process of c) an investment
organized work plan to
interconnected activities. opportunity.
be accomplished.

e) a defined area (nature f) a financial business

and size). idea.
• Usually an idea is conceived by promoters
during the promotion stage. These discovered
ideas, which are in raw status, should be given a
concrete shape.
• The process of converting a mere idea into a
commercial venture is known as preparation of
a project.
• Hence , drafting a workable business project is
a scientific process involving the contribution of
various experts.
 • Project management is
about execution
What is
Project
Management? – Getting it done.
– Making it happen.
• Project management is about seeing the
future
– Its about having a vision and creating a path
to get there….(set the trail)
– Its about strategy
• Project management is about doing it
right the first time.
– It is about deciding how you’re going to do
it.
– It about deciding WHAT you’re going to d0
– It about planning and re-planning.

(PDCA cycle Plan Do Check Act )

Project
Management is
about being
prepared.

It’s about
managing risks
proactively and
handling issues
decisively.

It about finding
opportunities when
issues arise.
• Project management is about building a
team
– Its about developing relationships.
– Its about motivating and recognizing people
– Its about celebrating together
– Its about leadership

– Eg (Alibaba founder)
• Project management is about making a
plan come together.
- Its about bringing order to the chaos
- Its about getting everyone pointed to the
right direction.
- Its about action and involvement.
• In a world of faster, better, cheaper…
• Project management brings the
discipline to the table that makes the
impossible possible.
• Discipline brings consistency,
repeatability, and visibility.
• Its about learning from each project so
that the next one is even faster, better
and more profitable.
 “ Project management is
the application of
knowledge, skills, tools,
Formal and techniques to project
activities to meet the
Definition of project requirements.”
Project
Manageme
nt - PMBOK (Project
Management Book of
Knowledge)
• Thus, a project
management is the
application of knowledge,
skills, tools and techniques
to a broad range of activities
in order to meet the
requirements of the
particular project.

• A project is a temporary
endeavor undertaken to
achieve a particular aim.
• Project management is the most
efficient way of introducing change
achieved by:
i)Defining what has to be accomplished
generally in terms of time, cost, and various
technical and quality performance
parameters.
ii)Using appropriate project management
tools and techniques to plan, monitor and
maintain progress.
iii)Employing persons skilled in project
management.
 Be Clear

Project
Management
Maintain a
Principles/ Positive Attitude
Fundamental
s

Communicate -
Communicate -
Communicate
 One of the most important
responsibilities of the
project manager is to bring
clarity to the project.

Be
Clear
There are two aspects to
this principle…

Focus . Direction.
• Focus is all about making sure the
scope of the project is understood.
• This entails /necessitates / requires
understanding what is included in the
project and what is’nt included in the
project.
• Having a clear focus is making sure your
project scope is well defined is a critical
success factor.
• Direction is all about making sure that
everyone on the project team is
moving towards the same objectives.
• Once you have a clear focus, you can
start to identify and prioritize the
many tasks that need to be
completed.
• This will enable you to provide clear
direction for the project team to
follow.
Maintain a Positive Attitude

Effective project managers know how to use the power

of positive thinking to get results

Lets take a look at two areas

where a positive attitude at Relationships with people.
work can have powerful Approach to Project Challenges.
results…
• Project mangers can only be successful through
the achievements of the people on the team. As
a result your relationship with others are critical
for your success.
• If you are always grumpy or complaining,
nobody will want to be around you, much less
help you.
• If you smile, treat others well, you are much
more likely to get their full commitment on your
project.
• All projects have challenges. How you
approach your challenges can determine
whether your project sails through them
or whether it will sink.
• A positive, can – do attitude will not only
help you solve the challenge, it will also
help you find opportunities in the
challenge.
 • The importance of
communication for project
managers can’t be
emphasized enough.
As a project manager, two
important communication
Communication activities you’ll need to
perform are…
1. Coordinating Project
Activities
2. Keeping stakeholders
informed
During the planning phase,
you’ll identify the tasks that During the execution phase,
need to be completed on you’ll have to coordinate all
the project as well as any of the tasks by assigning
constraints and them to the right person at
dependencies on those the right time.
tasks.
Communicating task assignment
clearly is very important.

Keep in mind, that when done

correctly, the person who you
assigned the task should feel
comfortable enough to ask you
questions and to even question
the task itself.
Another major communication responsibility
for the project manager is keeping
stakeholders informed of the project status

Whether you have good news or bad news to

convey, you should be communicating the
status frequently.

Communicate often and communicate openly.

If you do this, you will gain the trust of your
project stakeholders.
 CHARACTERISTICS /
FEATURES OF PROJECTS

1. Integration with 2. Incorporation of 3. Scientific 4. Attractive to

Organizational goals feasibility reports estimation of investors
resources

5. Act as a guide 6. Define Limitations 7. Simple and Clear

 Project should not be misfit
to the organization.

1. Integration
with Project should be prepared
within the scope of
Organization organizational goals.

al goals

The project is identified and

selected with careful
scanning of the total
environment within which
opportunity should be
exploited.
 A project is the output of
various feasibility studies. It
should pass through experts’
analytical tests.

2. Usually a project is analyzed

Incorporation by experts in the field of
marketing, technical, financial,
of feasibility economics and environmental
reports fields.

A project should be rich with

the experts opinions and
appraisal reports.
 3. When a project is
finalized either to A project
produce a becomes a
Scientific product or render
services, the
workable plan
when proper
essential estimations are
Estimatio resources are
also estimated.
made for it.

n of The resources are

men, machine, Through resource

Resource material, money,

time which have
an economic
estimation, total
project cost is
calculated and

s value with an
alternative
application.
probable cash
flow is predicted.
 A project which needs financial
assistance from outsiders should be
commercially viable. Because
organizations which provide various
assistance in the form of seed money,
4. margin money, infrastructure are
more interested in the returns from
Attractive the project.

to
Investors Hence project should assure the
investors confidence through strict
estimation of returns in future and
their present values i.e. through
wealth maximization.
 • A project should act as a ‘guiding lamp’ to the
entrepreneurs. Basically, projects answer three
important questions:

5. Act as – What is the project?

– What are the objectives?
– And how to achieve it?
a Guide • The conceptual clarity, the output of the
project, methods adopted always act as a
guide to the enterpreneurs.
 • Projects not only defines
objectives, methods,
returns but also the
limitation within which it
6. Defines should be implemented.
It lays down the area of
Limitation operation.
s • The restrictions may be
about the product, range,
sector, geographical area,
functions, methods,
process, time etc.
 7. Simple and Clear
• The project contains various technical
expert opinions, feasibility reports,
appraisals etc.
• Ideas should be made simple and
understandable with all clarity. No
confusions, ambiguities should be created
in the mind of the reader, specially the
financier.
• Simple does not mean framing simple
projects but drafting the project with
simplifications.
• The concept, ideas, costs, estimation,
uncertainties, risks, returns, management
perceptions are to be clearly, neatly
systematically presented in the project

Thus, a project well prepared is

half implemented.
Objectives of Project Management
• Project management aims to fulfill the
following objectives:
• - To see that every investment is to
achieve organizations goal.
• - To ensure that investment is viable and
profitable.
• - To assure of keeping cost minimum and
completion in time.
• - To ensure that every investment uses
modern tools and techniques.

• - To ensure that talented, suitable and

competent persons are engaged.

• - To assess the fact that project contributes

for future growth of enterprise.

• - To highlight the priority and preference of

projects for making investments in order.
• - To ensure integration of projects with
plans of other department of a firm.

• - To select and suggest right and

appropriate time for project investment.

• - To ensure proper evaluation for revision

and modification of future projects

• - To see that personnel are given sufficient

freedom to give project ideas.
 PROCESS OR STEPS IN PROJECT
MANAGEMENT
• Project management is carried out in
different steps starting from project
identification to project analysis with due
concentration on multidimensional
benefits and problem at every process.
 PROJECT IDENTIFICATION
• Project identification involves choice of
the best opportunities for investment.

• It is concerned with the collection and

analysis of economic data for the eventual
purpose of locating possible opportunities
for investment
 PROJECT FORMULATION
• It is the working out the project details by taking
due note of the market and environmental
factors.

• It refers to taking a first look at the project idea

with care and critical view of each component to
build up an all – round beneficial project.

• It is an independent and objective assessment

of various aspects involved in investment
opportunity with analysis of seven components.
(i. Feasibility, ii. Techno-Eco, iii. Network, iv. Input,
v. Financial, vi. Cost-benefit, vii. Pre-Investment)
 PROJECT PLANNING
• It is defining all the works required to be
carried out so that all the participants will
understand their role in the project team
and carryout the work assigned to them.

• Project planning is the process of

deciding in advance about the future
cause of actions to be taken.
• The rationale for project planning is based
on the benefits derived from its six steps:
• i)Breaking down complex activities (Work
breakdown structure)
• ii)Determining the logical sequence
• iii)Providing input for managerial processes.
• iv)Providing logical basis for making
decisions and framework for assessment.
• v)Facilitating communication system.
• vi)Arranging evaluation and feedback.
 PROJECT IMPLEMENTATION
• The implementation phase commences
from the time decision to invest is taken
and extends up to the commencement of
commercial production.
• From the process of the initial concept, it
proceeds through the stages of design,
quotation, bid analysis, orders and site
contracts, scope variations, work
completion and start up.
• Project implementation presupposes
project report and project appraisal.
• A project report is the one which
incorporates all the data relevant in
respect of a project. It serves as a guide to
the management as it records the merits
and demerits in allocation of resources. It
is prepared for analyzing the extent of
opportunities in the proposed project.
• A project report is insisted upon an
entrepreneur who seeks fund assistance
from the financial institutions. Such a
report includes information on following
aspects: Economic aspect, Technical
aspects, Financial aspect, Production
aspect, and Managerial aspect.
• A project appraisal is another step followed
before actual implementation of a project. It
is an assessment of a project to understand
viability in terms of economic, technical
organizational, managerial, operational, and
financial elements of a project.
• A project appraisal is carried out by a third
person who is in no way concerned with
its preparation, and who is unbiased,
dispassionate, and objective is his
purpose.
 PROJECT ANALYSIS
• It is the multidimensional analysis of
various dimensions of a project at each
and every stage if the product life cycle
both separately (each aspect ) and relating
one aspect with other aspects. This
covers Technical Analysis, Economic
Analysis, Financial Analysis, Social
Analysis, Institutional Analysis, and
Environmental Analysis.
• The above discussed phases or stages
may be called Project Life Cycle (PLC). It
starts with the conception of idea and
ends with the transfer of project for
regular and continued working on it.
Facets of Feasibility Analysis
Generation of Ideas

Initial Screening

Is the idea Prima

Facie Promising?

Yes No
Plan feasibility Terminate

Conduct market Conduct

analysis technical
analysis
Conduct
financial
analysis
Conduct Economic
analysis & Ecological
Analysis
Is the project
Yes, Prepare worthwhile?
If No, Terminate
Funding Proposal
Market Analysis: Market analysis is concerned
with two questions:
• a)What would be the aggregate demand for
the proposed product/service in the future.
• b) What would be the market share of the
project under appraisal.
The kind of information required are:
• a)Consumption trends in the past and the
present.
• b)Import and Export, structure of competition,
elasticity of demand, consumer behavior,
distribution channels & market policies.
• Technical Analysis:
• Technical analysis seeks to determine
whether the pre-requisites for the
successful commissioning of the project
have been considered and reasonably good
choices have been made with respect to
location, size, process etc.
• The important questions raised in technical
analysis are:
• a)Whether the availability of raw material,
power and other inputs have been
established.
• B) Whether the production process
chosen is suitable.
• C) Whether the equipment and machines
chosen are appropriate.
• D) Whether the auxiliary equipments and
engineering works have been provided for
• E)Whether the proposed layout of the site
building and plant is sound.
• F)Whether the technology proposed to be
employed is appropriate from the social
point of view.
• Financial Analysis:
• Financial Analysis seeks to ascertain whether
the proposed project will be financially viable
in the sense of being able to meet the burden
of debt and the whether the proposed project
will satisfy the return expectations of those
who provide the capital.

• The aspect which have to be looked into

while conducting financial analysis are
investment outlay, cost of project, means of
financing, projected profitability, break even
point, cash flows of the project, level of risk.
• Economic Analysis:
• - Economic Analysis also referred to as a
social cost benefit analysis is concerned
with judging a project from the larger social
point of view.
• The questions to be answered in social cost
benefit analysis are:
• 1. What would be the impact of the project
on the distribution of income in the society?
• 2. What would be the impact of the project
on the level of savings and investment in
the society.
• 3. What would be the contribution of the
project towards the fulfillment of certain
wants like self-sufficiency, employment &
social order.
• Ecological Analysis
• - In recent years, environmental concerns has
assumed a great deal of significance.
• Ecological analysis should be done particularly
for major projects which have significant
ecological implications (eg. Power plants,
drugs, chemicals and leather processing
industries). The key questions raised in the
analysis are:
• 1. What is the likely damage caused by the
project to the environment.
• 2. What is the cost of restorative measures
required to ensure that the damage to the
environment is contained within acceptable
limits.
PROJECT MANAGER ROLE/ DUTIES

• Understanding key project manager duties

will help you successfully

• 1. PLANNING
• 2. ORGANIZING
• 3. LEADING
• 4. CONTROLLING
 Planning
• Determining what needs to be done, who is
going to do it, and when it needs to be done
are all part of the planning process. Planning
is an iterative process that takes place
throughout the life of the project.
• Some key planning duties include:
• 1. Define and clarify project scope (extent).
• 2. Develop the project plan
• 3. Develop the project schedule
• 4. Develop policies and procedures to
support the achievement of the project
objectives.
 Organizing
• Organizing is about setting up the projects team
structure. Companies are usually set up as a
functional, matrix, and projectized organizations.
When organizing your project, you will need to
take the company’s structure into account.
• Some of the key organizing duties include:
• 1. Determine the organizational structure of the
project team.
• 2. Identify roles and positions.
• 3. Identify services to be provided by external
companies.
• 4. Staff project positions.
 Leading
• Refers to carrying out the project plan in order
to achieve the project objectives. This is one of
the most challenging aspects for the new
project managers because it involves a lot of
soft skills. Skills such as communicating
clearly, team motivation, and conflict resolution.
• 1. Setting team direction
• 2. Coordinating activities across different
organizational functions.
• 3. Motivating Team members
• 4. Assigning work
 Controlling
• Its all about keeping the project on track. Project
control can be performed using a three-step process…
• -Measuring: Checking project progress towards
meeting its objectives
• - Evaluating – Determining the cause of deviations
from the plan
• - Correcting: Taking corrective actions to address
deviations.
• Some key duties include:
• 1. Defining project baselines
• 2. Tracking project progress
• 3. Project status reporting
• 4. Determining and taking corrective actions.
• Understanding some of the key project
manager duties are in relation to the four
functions of the management framework
that will help you lead your project to a
successful outcome.
PROJECT Management LIFE CYCLE
II. Analysis and III. Planning
Evaluation Stage. Stage
I. Conception A. Market A. Budget
stage Demand B. Resources
A. Project Ideas B. Risk C. Contracts
B. Screening C. Technical D. Detailed
D. Financial project
E. Social - Cost report

IV. Execution and

Implementation
V. Completion and Stage
Transfer Stage A. Construction
A. Completion Report B. Communicatio
B. Transfer n
C. Verification & C. Directing
Correctness (audit) D. Coordination
E. Controlling
The Project Management Life Cycle

Initiation

Closure
Planning

Execution
• PLC is a framework, or a process or a series of
phases which connects the beginning and ending of
a project

• So a project goes through a series of phases and

this is represented in form of a Project Life Cycle.

• The project manager and project team have one

shared goal: to carry out the work of the project for
the purpose of meeting the projects objectives.

• Every project has a definite beginning, a middle

period during which activities move toward the
completion and an ending (either successful or
unsuccessful).
• A standard project typically has four major
phases (each with its own agenda and issues):
• 1. Project Initiation.
• 2. Project Planning
• 3. Project Execution
• 4. Project Closure

• Taken together, these phases represent the

path a project takes from the beginning to its
end and are generally referred to as the project
“life cycle”.
 Project Initiation
• The purpose of project initiation phase is to
define and authorize the project, i.e., the
project objective or need is identified; this
could be a business problem or opportunity.
• The initial definition of the project can come
from several places…
• 1. Project Statement of Work (SOW)
• 2. Business Case (An appropriate response to
the need is documented in a business case
with the recommended solution options)
• 3. Contract.
• The project manager takes the information
provided and creates a project charter.
The project charter authorizes the project
and documents the initial requirements for
the project.
• Project Charter refers to a statement of
objectives in a project. This statement
also set out detailed project goals, roles,
and responsibilities, and identifies the
main stakeholders, and the level of
authority of a project manager.
• A Project Charter generally includes
information such as…
• 1. Project purpose, vision and mission.
• 2. Measurable objectives and success criteria.
• 3. High level project description,
requirements, and risks,
• 4. Summary milestone schedule and budget
• 5. Name and authority of the project sponsor.
• An important part of starting your project of
right is performing a stakeholder analysis.
Understanding which people or organization
will be impacted by or can influence your
project is critical for ensuring your project’s
success.
• Who is a stakeholder ?
• Stakeholders are all those who have a stake in
a project; includes individuals, organizations,
and professional bodies.
• When we say stake: these stakeholders can
influence, impact, or can be affected by the
project.
• Stakeholders can have a positive or negative
effect on the project or vice versa.
• They can be part of an organization working on
a project, customer organization or outside
these organizations (external stakeholders), ie,
Government and Regulatory bodies.
• Need for stakeholder analysis:
• - There are different types of stakeholder. Some
have higher degree of power and can decide the
course of action, approve or veto decisions on the
project.
• - Another set of stakeholders can help with their
expert opinion, so you consult them.
• - A few other stakeholders need to know the
progress of work as their activity starts when this
present piece of work is done.
• - A few are interested when the project will complete
as this project may help them in their work.
• - All stakeholders are not equally involved or
impacted in the project
• So a project manager needs to know how to engage
these different types of stakeholders
• How is Stakeholder Engagement done?
• Based on stakeholder analysis, a project manager will
know what are the interest levels and decision making
capability and specific requirements of stakeholders.
After stakeholder analysis, PM will arrive at:
• - Are they going to be helpful or are they going to
hamper the work?
• - Who are the allies, who are oblivious to the project
and who are the adversaries?
• - What is the current level of engagement of the
stakeholder, where should the stakeholder be?
• - What is the level of interest/power/ influence on the
project?
• - Which stakeholder gets involved at what stage? What
is purpose?
• - Who needs to know about the changes happening in
the project?
 Project Planning
• The purpose of project planning is to
determine the approach you will take and
define all the details of how the project will
be done.
• Project planning has two parts:
• 1. Strategic Planning and
• 2. Implementation planning
• During Strategic planning you develop he overall
approach to the project. During the
implementation planning you figure out all the
details of how the project will be done.
• Eg: A good way to visualize this is to think of
your project as family vacation.
• 1. During project initiation you determine
whether you want to go (your mission)
• 2. During strategic planning, you decide whether
you want to fly there or drive (your approach)
• 3. Lets say you decide to drive. In that case,
during Implementation Planning you would map
out your route, identify which hotels you will stay
at along the way, determine how long each leg of
the trip will take, and so on (all the details )
 Project Execution
• The purpose of the project execution phase is
to carry out the activities defined during the
project planning phase.
• Project execution is where most of the time,
money and people are used on the project.
This is where the action takes place.
• During this phase the project manager has to
keep all the activities moving forward in a
coordinated manner. This means you will
need to track the progress of each and every
activity and adjust your plans when the
situation changes. This tracking and
adjustment of project activities is also known
as Monitor and Control.
• During the execution phase all the agreed
project deliverables should be
implemented and accepted by the
customer.
• The customer can be an internal or an
external customer.
 Project Closure
• The purpose of project closure phase is to
formally close the project.
• During the Project closure, there are several
key activities that needs to be performed.
• 1. Verify the completion criteria are met.
• 2. Create a project closure report.
• 3. Collect and archive project artifacts
• 4. Perform a project post – mortem
(lessons learned).
• Project artifacts is one of many kinds of
tangible by-products produced during the
development of the project.
• Some artifacts (eg, class diagrams, cases,
models, design documents) help describe
the function, architecture, and design of
the project.
• Project post-mortem is a process usually
performed at the conclusion of the a
project, to determine and analyze the
elements of a project that were successful
or unsuccessful.
• The Project Management Body of
Knowledge (PMBOK) refers to the process
as lessons learned.
• Many projects skip this phase, Once the
execution is complete, they simply move on. Its
unfortunate since they really don’t know if the
project objectives have been met, don’t
organize the project artifacts to be easily found
for future project’s reference, and don’t identify
the key issues and lessons learned by the
project that can be applied to future projects.

• Performing Project closure will benefit both

your company and your career. If you do this
well, you will set yourself up to lead a high –
visibility, business – critical projects. So make
sure your projects go through the full project
management life cycle.