AN OVERVIEW OF PROJECT MANAGEMENT

SANJEEB KAKATI
THIRD EYE INFOSYS(P) LTD.
ABOVE KALPATARU
PANBAZAR GUWAHATI 781 001
CELL: 9435014576
E-MAIL: skakati@sify.com

Improvements Boundless

PROJECT: A JOB THAT HAS A BEGINNING AND AN

END [TIME], A SPECIFIED OUTCOME [SCOPE] AT A
STATED LEVEL OF QUALITY [PERFORMANCE], AND A
BUDGET [COST]

PROJECT COST C=f(P,T,S)

THE PROJECT PARAMETERS C,P,T,S ARE ALSO

CALLED CONSTRAINTS

AT ANY POINT OF TIME ONLY THREE OF

THE FOUR PARAMETERS CAN BE
CONTROLLED.

PROJECT MANAGEMENT:
EFFICIENTLY USING RESOURCES
TO COMPLETE A PROJECT AS
DESIGNED, ON TIME, AT THE
DESIRED LEVEL OF
PERFORMANCE, AND WITHIN
BUDGET.
But.

COST OF DELAYED PROJECTS (2004-05 TO 200910)

No of Cost overrun (in
Sector/ministry
projects
Rs cr)
Atomic energy
4
1,254.00
Civil aviation
24
-123.50
Coal
69
2,941.36
Petroleum
39
19,159.10
Power
40
3,778.33
Railways
70
23,295.40
Road transport
150
142.60
Shipping & ports
23
203.00
Steel
31
3,265.10
Telecom
30
68.40
Urban development
13
547.10
Water resources
1
644.10
Total
495
55,175.00
PROJECT IMPLEMENTATION STATUS REPORT OF CENTRAL SECTOR
PROJECTS (Costing Rs.20 crore & above)

Reasons for time overrun

Lack of supporting infrastructure facilities,

Delay in finalization of detailed engineering plans,

release of drawings and delay in availability of
fronts,

Changes in scope/delay in finalization of the scope,

Industrial relations and law & order problems,

Delay and uncertainty in feedstock supply,

Pre-commissioning teething troubles,

Technology problems, and

Geological surprises.

Reasons for cost overrun

Time overruns,
Changes in rates of foreign exchange and statutory
duties,
High cost of environmental safeguards and
rehabilitation measures,
Higher cost of land acquisition,
Change in the scope of the project,
Higher prices being quoted by the bidders in certain
areas,
Under-estimation of original cost, and
General price rise.

Many of the ills could be eliminated through effective

project formulation

Feasibility Analysis

Techno-Economic Analysis

Project Design and Network Analysis

Input Analysis

Financial Analysis

Social Cost-Benefit Analysis

Pre-Investment Analysis

PROJECT IDENTIFICATION: INPUT TRANSFORM OUTCOME (ITO) MODEL

PLANNING & SCOPING
O

N
P

PROCESS

OUTPUT

UTILIZATION

T
C
O

T
RESOURCES

IMPLEMENTATION

E
CUSTOMERS

OUTPUT: CONTROLLABLE BY PROJECT MANAGER

OUTCOME: MAY NOT BE CONTROLLABLE

GOAL ORIENTED
PROJECT PLANNING

PARTICIPATION ANALYSIS

GIVES AN OVERVIEW OF ALL PERSONS,

GROUPS, ORGANISATIONS AND
INSTITUTIONS CONNECTED WITH THE
PROJECT

INCLUDES INTERESTS & EXPECTATIONS

OF PERSONS AND GROUPS AFFECTED BY
THE PROJECT INTO THE PLANNING
PROCESS

PARTICIPATION ANALYSIS: EXAMPLE: AN ENGINEERING SSI

UNIT ESTABLISHMENT

PROMOTERS
THE
ENTREPRENEUR

CONSULTANTS
XYZ [PROJECT
REPORT]
ABC
[ENGINEERING
DRAWING]

SUPPLIERS
RAW MATERIALS
EQUIPMENT

CONSTRUCTION WORK
PERSONS
CIVIL
ELECTRICAL

UTILITIES

SUPPORT
AGENCIES
BENEFICIARIES

ADVERSELY
AFFECTED

REGULATORY
AUTHORITY

COMPETITOR
UNITS

PCB

AGENTS/ MIDDLE
MEN

DISTRICT
AUTHORITY
TAX AUTHORITY

CUSTOMERS
SKILLED/ UNSKILLED
PERSONNEL
SUPPLIERS

INDUSTRIES DEPTT.
BANK

IIE

PRESSURE
GROUPS
LOCAL POLITICIAN
PANCHAYAT
SOCIO-POLITICAL
ORGANIZATIONS

PROBLEM ANALYSIS

A SET OF TECHNIQUE TO

ANALYSE THE EXISTING SITUATION

SURROUNDING A GIVEN PROBLEM
CONDITION

IDENTIFY MAJOR PROBLEM

CONDITIONS IN THAT ENVIRONMENT

VISUALIZE CAUSE-EFFECT
RELATIONSHIP IN A PROBLEM TREE

PROBLEM
TREE

LENDERS LOSE
CONFIDENCE
DELAYED
REPAYMENTS

TIME OVERRUN

COST OVERRUN

WORK PROGRESS
BEHIND SCHEDULE

NONSYNCHRONIZATION
OF ACTIVITIES
LACK OF PROPER
COMMUNICATION
INEFFECTIVE
PLANNING

DELAYED
AVAILABILITY

HIGH
REJECT/REWORK

LONG DOCUMENT
PROCESSING TIME

POOR
WORKMANSHIP

LONG DELIVERY
TIME

INEFFICIENT
WORKMEN

INTERRUPTION
GENERAL STRIKE

LABOUR VACATIONS

DEARTH LOCALLY
OUTSIDERS NOT
READY TO COME

NON-COMMITTED
ENTREPRENEUR

ULTERIOR MOTIVE
DIFFERENT PRIORITY

ADVERSE FAMILY
PRESSURE

OBJECTIVE ANALYSIS

A SET OF TECHNIQUE TO

DESCRIBE THE FUTURE SITUATION

THAT WILL BE ACHIEVED BY SOLVING
THE PROBLEM

IDENTIFY POTENTIAL OBJECTIVES OF

THE PROJECT

OBJECTIVE
TREE

LENDERS
CONFIDENCE HIGH
TIMELY
REPAYMENTS

PROJECT COMPLETION
ON TIME

SYNCHRONIZED
ACTIVITIES

PROPER
COMMUNICATION
EFFECTIVE
PLANNING

TIMELY
AVAILABILITY

HIGH QUALITY
WORK

QUICK DOCUMENT
PROCESSING TIME

GOOD
WORKMANSHIP

SHORT DELIVERY
TIME

EFFICIENT
WORKMEN

NO INTERRUPTION
GENERAL STRIKE:
OBTAIN EXEMPTIONS

PREVENT
UNSCHEDULED
LABOUR VACATIONS

QUALIFY LOCALLY
ESTABLISH
EXTERNAL TIE UP

COMMITTED
ENTREPRENEUR

JUDGE MOTIVE AND

PRIORITY AT
SELECTION

OBTAIN FAMILY
SUPPORT

OBJECTIVE: ENSURE TIMELY AVAILABILITY OF MATERIAL

ACTIVITIES
IDENTIFY MATERIAL REQUIREMENTS AS PER ACTIVITY
SCHEDULING
ESTABLISH APPROVED SUPPLIER LIST
SET TIME LIMITS FOR INTERNAL PROCESSING OF
DOCUMENTS
SELECT MOST RELIABLE TRANSPORTERS
ESTABLISH LIAISON AGENCY AT MAJOR SUPPLY POINT
FOLLOW UP WITH VENDORS FOR TIMELY SUPPLY
ESTABLISH COOPERATION IN COMPETITION CLIMATE
INTRODUCE INCENTIVE/PENALTY SYSTEM

ANALYSIS OF ALTERNATIVES

A SET OF TECHNIQUE TO

IDENTIFY ALTERNATIVE SOLUTIONS

THE PROJECT MIGHT WISH TO
ACHIEVE

SELECT ONE OR MORE POTENTIAL

PROJECT STRATEGIES

DECIDE UPON ONE STRATEGY TO BE

ADOPTED

PROJECT PLANNING MATRIX

PROJECT PLANNING MATRIX [PPM] PROVIDES

SUMMARY:

WHY A PROJECT IS CARRIED OUT

WHAT THE PROJECT IS EXPECTED TO

ACHIEVE

HOW THE PROJECT IS GOING TO ACHIEVE

THE RESULTS

WHICH EXTERNAL FACTORS ARE CRUCIAL

FOR THE SUCCESS OF THE PROJECT

WHERE WE SHALL FIND THE DATA REQUIRED

TO ASSESS THE SUCCESS OF THE PROJECT

PROJECT PLANNING MATRIX

DESCRIPTIVE
SUMMARY

OVERALL GOAL
OR WIDER
OBJECTIVE
PROJECT
PURPOSE OR
IMMEDIATE
OBJECTIVE
OUTPUT

ACTIVITIES

INDICATORS &
BENCHMARKS

SOURCES OF
VERIFICATION

ASSUMPTIONS

PROJECT: ACTIVITY
SCHEDULING

TENNIS TOURNAMENT ACTIVITIES

ACTIVITY

CODE

DURATION [DAYS]

NEGOTIATE FOR LOCATION

CONTACT SEEDED PLAYERS

PLAN PROMOTION

APPOINT OFFICIALS

SEND INVITATIONS

10

SIGN PLAYER CONTRACTS

PURCHASE BALLS & TROPHIES

NEGOTIATE CATERING

PREPARE COURT

ARRIVAL OF PLAYERS

TENNIS TOURNAMENT ACTIVITIES

ACTIVITY

CODE

IMMEDIATE
PREDECESSOR

DURATION
[DAYS]

NEGOTIATE FOR LOCATION

CONTACT SEEDED PLAYERS

PLAN PROMOTION

EVALUATE SUPPLIERS

SEND INVITATIONS & CONFIRM

PARTICIPATION
SIGN PLAYER CONTRACTS

10

B, C

PURCHASE BALLS, NETS, PRIZES

NEGOTIATE LODGING & CATERING

E, F

PREPARE COURT

ARRIVAL OF PLAYERS

H, I

PERT AND CPM..

PERT:
PROGRAMME EVALUATION AND REVIEW
TECHNIQUE
CPM:
CRITICAL PATH METHOD

GENERIC STRUCTURE
OF PROJECT REPORT

GENERIC STRUCTURE OF DETAILED PROJECT REPORT..

CONTEXT/BACKGROUND
BRIEF DESCRIPTION OF SECTOR/SUB-SECTOR
NATIONAL PRIORITY
STRATEGY & POLICY FRAMEWORK
DESCRIPTION OF EXISTING SITUATION
PROBLEMS TO BE ADDRESSED
EVIDENCE REGARDING NATURE AND MAGNITUDE OF
PROBLEM
PROVIDE BASELINE DATA/SURVEY/REPORTS
PROJECT OBJECTIVES
DEVELOPMENT OBJECTIVES TO BE ACHIEVED
RANKED IN ORDER OF IMPORTANCE
SPELL OUT OUTPUT FOR EACH DEVELOPMENT
OBJECTIVE
GENERAL DESCRIPTION OF PROJECT

GENERIC STRUCTURE OF DETAILED PROJECT REPORT..

TARGET BENEFICIARIES
IDENTIFICATION OF BENEFICIARIES
STAKEHOLDER ANALYSIS
CONSULTATION WITH STAKEHOLDER AT THE TIME
OF PROJECT FORMULATION
OPTION REGARDING COST SHARING, BENEFICIARY
PARTICIPATION
IMPACT ON WEAKER SECTION
REMEDIAL ACTION FOR NEGATIVE IMPACT

PROJECT STRATEGY
ALTERNATIVE STRATEGY ANALYSIS TO ACHIEVE
OBJECTIVES
REASON FOR SELECTING PROPOSED STRATEGY
OPTION OF LEVERAGING GOVERNMENT FUNDS
THROUGH PUBLIC PRIVATE PARTNERSHIP

GENERIC STRUCTURE OF DETAILED PROJECT REPORT..

LEGAL FRAMEWORK
STRENGTH & WEAKNESS OF LEGAL FRAMEWORK

ENVIRONMENTAL IMPACT ASSESSMENT

DO AS REQUIRED AND IDENTIFY SIGNIFICANT
ASPECTS
IDENTIFY MEASURES TO MITIGATE ADVERSE
IMPACTS

ON-GOING INITIATIVES
DESCRIBE OTHER ONGOING INITIATIVE TO AVOID
DUPLICATION OF EFFORTS
TRY TO CREATE SYNERGY

TECHNOLOGY ISSUES
TECHNOLOGY CHOICES
EVALUATION OF OPTIONS
BASIS OF CHOICE OF TECHNOLOGY

GENERIC STRUCTURE OF DETAILED PROJECT REPORT..

MANAGEMENT ARRANGEMENTS
RESPONSIBILITIES OF DIFFERENT AGENCIES FOR
PROJECT MANAGEMENT
ORGANIZATION STRUCTURE
MEANS OF FINANCE AND PROJECT BUDGET
MEANS OF FINANCE
EVALUATION OF OPTIONS
PROJECT BUDGET
COST ESTIMATES
PHASING OF EXPENDITURE
OPTION OF COST SHARING AND COST RECOVERY
PRIVATE SECTOR PARTICIPATION

GENERIC STRUCTURE OF DETAILED PROJECT REPORT..

TIME FRAME
INDICATE ZERO DATE PROPOSED
PERT/CPM NETWORK

RISK ANALYSIS
IDENTIFY AND ASSESS PROJECT RISK
LEGAL, CONTRACTUAL
ENVIRONMENTAL
REVENUE RISKS
PROJECT MANAGEMENT RISKS
PROPOSAL TO MITIGATE RISKS

EVALUATION
FOCUS ON PAST EXPERIENCE
PROJECT EVALUATION ARRANGEMENT
CONCURRENT, MID-TERM, POST PROJECT

GENERIC STRUCTURE OF DETAILED PROJECT REPORT..

SUCCESS CRITERIA
ASSESSMENT OF ACHIEVEMENT OF DEVELOPMENT
OBJECTIVES
PROVIDE BASE LINE DATA FOR ASSESSMENT

FINANCIAL AND ECONOMIC ANALYSIS

CONDUCT IF FINANCIAL RETURNS ARE
QUANTIFIABLE

SUSTAINABILITY
ADDRESS ISSUES RELATED TO SUSTAINABILITY
STAKEHOLDER COMMITMENTS
OPERATION AND MAINTENANCE OF ASSETS
CREATED

Thank you!