PROJECT MANAGEMENT

Dr. Arun Maity

Associate Professor

BITS OFF- CAMPUS

CENTRE

INTRODUCTION TO
PROJECT
MANAGEMENT
EVOLUTION
AND APPLICATION
PROJECT
PROJECT MANAGEMENT
NEED AND IMPORTANCE OF PROJECT MANAGEMENT
PROJECT LIFE CYCLE
PROJECT MANAGER
INTERPERSONAL AND DECISION MAKING SKILLS
PROJECT INTEGRATION

EVOLUTION AND
DEVELOPEDAPPLICATION
IN THE LATE 1950s TO AID PLANNING
AND SCHEDULING OF LARGE PROJECTS
CONSTRUCTION INDUSTRY
U.S. DEPARTMENT OF DEFENSE
AUTOMAKERS TOYOTA, NISSAN, BMW
INFORMATION TECHNOLOGY
STEEL INDUSTRY
FERTILISER INDUSTRY

PROJECT
A PROJECT IS A COMPLEX , NON ROUTINE, ONE-TIME EFFORT

LIMITED BY TIME, BUDGET, RESOURCES AND PERFORMANCE

SPECIFICATIONS DESIGNED TO MEET CUSTOMERS NEEDS
A PROJECT CONSISTS OF SERIES OF ACTIVITIES AND TASKS THAT
HAVE A SPECIFIC OBJECTIVE TO BE COMPLETED WITHIN CERTAIN

SPECIFICATIONS
HAVE DEFINITE START AND END DATES
HAVE FUNDING LIMITS
CONSUME RESOURCES
MEET AND EXCEED CUSTOMERS NEEDS

PROJECT MANAGEMENT
PROJECT MANAGEMENT INVOLVES
PROJECT PLANNING
PROJECT SCHEDULING
PROJECT MONITORING & CONTROL

PROJECT PLANNING
DEFINITION OF WORK REQUIREMENTS
DEFINITION OF QUANTITY OF WORK
DEFINITION OF RESOURCES NEEDED

PROJECT SCHEDULING
LIST OF ACTIVITIES TO BE COMPLETED
ACTIVITY RELATIONSHIPS
GANTT CHARTS
CRITICAL, NON-CRITICAL ACTIVITIES, MILESTONES
RESOURCE LOADING, LEVELLING, ALLOCATION

PROJECT MONITORING & CONTROL

TRACKING PROGRESS
COMPARING
ANALYZING IMPACT
MAKING ADJUSTMENTS
TIME, COST, QUALITY CONTROL

NEED AND IMPORTANCE

OFIMPLEMENT
PROJECT
ABILITY TO PLAN,
AND MANAGE ACTIVITIES
RESULT-ORIENTED MANAGEMENT STYLES
MANAGEMENT
COMPRESSION OF PRODUCT LIFE CYCLES
GLOBAL COMPETITION
KNOWLEDGE EXPLOSION
CORPORATE DOWNSIZING
INCREASED CUSTOMER FOCUS
MULTI-PROJECT ENVIRONMENT

COMPRESSION OF PRODUCT LIFE CYCLE

SHORTENING OF PRODUCT LIFE CYCLE
TIME TO MARKET FOR NEW PRODUCT WITH SHORTER LIFE

CYCLES
SIX MONTH PROJECT DELAY CAN RESULT IN 33% LOSS IN

PRODUCT REVENUE SHARE

GLOBAL COMPETITION
CHEAPER AND BETTER PRODUCTS AND SERVICES
USE OF QUALITY MANAGEMENT PRACTICES AND CONTINUOUS

IMPROVEMENT

KNOWLEDGE EXPLOSION
INCREASE COMPLEXITY OF PROJECTS BECAUSE OF ADVANCED

TECHNOLOGIES
COMPLEXITY

IN
MATERIALS,
SPECIFICATIONS,
AESTHETICS, EQUIPMENT AND REQUIRED SPECIALISTS

CODES,

CORPORATE DOWNSIZING
NECESSITY OF DOWNSIZING OR RIGHTSIZING
NECESSITY OF CORE COMPETENCIES FOR SURVIVAL
PROJECT MGMT REPLACING MIDDLE MANAGEMENT
OUTSOURCING OF SIGNIFICANT SEGMENTS OF PROJECT WORK

INCREASED CUSTOMER FOCUS

CUSTOMER : SATISFACTION, DELIGHT, SURPRISE
NEEDS CUSTOMIZED PRODUCTS AND SERVICES

MULTIPROJECT ENVIRONMENT
SHARING AND PRIORITIZING RESOURCES
RISK MANAGEMENT

PROJECT

MANAGEMENT IS BEST SUITED FOR

BUSINESSES REQUIRING ACCOUNTABILITY, FLEXIBILITY,
INNOVATION, SPEED AND CONTINUOUS IMPROVEMENT

ALL

PROJECT DRIVEN
ORGANIZATION
WORK
IS CHARACTERIZED THROUGH

PROJECTS WITH EACH PROJECT AS A SEPARATE

COST CENTER HAVING ITS OWN PROFIT AND
LOSS STATEMENT

NON-PROJECT DRIVEN
ORGANIZATION
PROJECTS
EXIST MERELY TO SUPPORT THE
PRODUCT LINES OR FUNCTIONAL LINES
PROFIT

AND LOSS ARE MEASURED

VERTICAL OR HORIZONTAL LINES
PRIORITY

ON

RESOURCES ARE ASSIGNED TO

REVENUE
PRODUCING
FUNCTIONAL
LINE
ACTIVITIES RATHER THAN THE PROJECTS

LIMITATIONS OF NONPROJECT
PROJECTS
MAY BE FEW AND FARDRIVEN
BETWEEN
NOT ALL PROJECTS HAVE THE SAME PROJECT MANAGEMENT
ORGANIZATIONS
REQUIREMENTS

EXECUTIVES DO NOT HAVE SUFFICIENT TIME TO MANAGE

PROJECTS
PROJECTS TEND TO BE DELAYED BECAUSE APPROVALS

MOST OFTEN FOLLOW VERTICAL CHAIN OF COMMAND

PROJECT STAFFING IS ON A LOCAL BASIS
HEAVY

DEPENDENCE UPON SUBCONTRACTORS AND

OUTSIDE AGENCIES FOR PROJECT MANAGEMENT EXPERTISE

PROJECT LIFE CYCLE

DEFINING
GOALS
SPECIFICATIONS
TASKS
RESPONSIBILITIES

PLANNING
SCHEDULES
BUDGETS
RESOURCES
RISKS
STAFFING

EXECUTING
STATUS REPORTS
CHANGES / REVISIONS
QUALITY
FORECASTS

DELIVERING
DELIVERING THE PROJECT PRODUCT TO THE CUSTOMER
REDEPLOYING PROJECT RESOURCES
TRAIN CUSTOMER
TRANSFER DOCUMENTS
RELEASE STAFF
LESSONS LEARNED

LIFE CYCLE PHASE

DEFINITION
ENGINEERING
START UP
DEFINITION
MAIN
TERMINATION

MANUFACTURING
FORMATION
BUIDLING
PRODUCTION
PHASE-OUT
FINAL AUDIT


SOFTWARE DEVELOPMENT

CONCEPTUAL

PLANNING

DEFINITION AND DESIGN

CODE

INTEGRATION / TESTING

CONVERSION

MAINTENANCE

CONSTRUCTION

PLANNING, DATA COLLECTION AND PROCEDURES

STUDIES AND BASIC ENGINEERING

MAJOR REVIEW

DETAIL ENGINEERING

CONSTRUCTION

TESTING AND COMMISSIONING

ROLE OF PROJECT
MANAGER
PROVIDE
DIRECTION,
COORDINATION

AND

INTEGRATION TO THE PROJECT TEAM

MANAGE TEMPORARY, NON-REPETITIVE ACTIVITIES TO

COMPLETE A FIXED LIFE PROJECT

MEET THE CHALLENGES OF EACH PHASE OF THE

PROJECT LIFE CYCLE

MANAGE

THE
TENSION
BETWEEN
CUSTOMER
EXPECTATIONS AND WHAT IS FEASIBLE OR REASONABLE
WORK WITH VENDORS, SUPPLIERS, SUBCONTRACTORS

RESPONSIBLE FOR PERFORMANCE

ENSURE APPROPRIATE TRADE-OFFS BETWEEN

TIME,
COST
REQUIREMENTS

AND

PERFORMANCE

INDUCING THE RIGHT PEOPLE AT THE RIGHT

TIME
TO ADDRESS RIGHT ISSUES AND MAKE RIGHT

DECISIONS

Categories of
Interactions
Superiors or Bosses
Colleagues or Peers
Subordinates or Juniors

Dealing with each category requires definite

skills which have to be mastered if one is to rise

in the organizational hierarchy

Interaction with
Superiors
Boss is always the boss, though he may not

be always right
There may be serious differences of opinion with

the boss, but ultimately, the will or opinion or

decision of the boss will prevail
Boss is more accountable than the subordinates

and will have to answer the consequences of his

decisions and actions

Rather than be a Yes Man and agree with

everything the boss says, the subordinate must

definitely express his views and opinions for the
consideration of the boss
If the boss chooses to ignore suggestions or

overrule decisions taken by the subordinate, he

does so at his own discretion and risk

Certain bosses who flatly refuses to accept

any
suggestions
coming
from
the
subordinates, even though his suggestions are
basically sound and would be interest of the
organization
Such individuals suffer from a sense of

insecurity and are afraid that implementation

of the suggestions would highlight their own
shortcomings and bring credit to the
subordinates at their own expense

What the boss forgets is that credit for

achievement or good performance first goes to

the boss for his ability to get work done
The subordinate only gets a part of the credit

received by the boss

Boss has greater

access to information
By virtue of position in the organization, the

boss has greater access to vital information

affecting the well-being of the organization
Some of the decisions may appear to be ill-

conceived or wrong, however it is more likely

that a particular decision may be based on
certain information not available to the
subordinate

Boss is more Busy

Responsibilities of the boss are considerably

greater than those of the subordinates

The time at his disposal for dealing with

particular problem is naturally less than the time

available with the subordinate
Therefore it is the duty of subordinate to do his

homework well, work out options in any given

situation and then put them for consideration
and final decision with his own recommendation

Boss is under greater

pressure
By virtue of his position and responsibility,

boss is under greater pressure to meet targets

and deadlines
Some pressure is bound to get transferred

down to lower levels resulting in FIRING

Firing is a part of the game and has to be

accepted as such

One must not be too sensitive to such firings

and must develop a somewhat thick skin in such

matters

On the other hand, the skin should not be so

thick that firing has no effect at all

On occasion, unpleasant talk may appear to

be entirely unreasonable
Outcome of firing of the juniors, who, in turn,

may take it to out on their wives and children

Interaction with
Colleagues
Individuals who are more or less at the same level

in the hierarchy
Engineers performing shift duty and reporting to

Manager
Department heads reporting to the Production

Manager
Functional Heads reporting to Unit Head
Project Engineers reporting to Project Managers
Project Managers reporting of Head, Projects

Feeling of cordiality, cooperation, mutual trust

and atmosphere of healthy competition

This is easier said than done
Politics

is an integral feature of any

organization, as each individual tries to catch
the eye of the boss and advance his own cause
for promotion

If the competition leads to confrontation

and undermining the position of others,

working is bound to suffer
Personal equations can lead to formation

of
groups
that
organizational working

adversely

affect

Interaction with
Subordinates
An engineer in a supervisory position or a

manager is responsible not only for his own

actions, but also for the actions of all those
working under his direction
Delegation: A successful manager once said, I

never do anything which I can get done by a

subordinate
This

is an excellent way to motivate

subordinates and at the same time freeing the
boss from routine matters and giving him time to
concentrate on important issues

Delegation does not imply that the boss is absolved of responsibility for that

actions of his subordinates, he should keep a watchful eye over their activities and
issue necessary direction.
Earn the respect of subordinates
It is easy to get work done if subordinates hold the boss in esteem and respect
Sound knowledge and thorough understanding of plant or process are vitally

important

Boss should be capable of doing at least 80% of the work done by each one of its

subordinates

20% of his own work should be such that none of his subordinates can do so

effectively

Issue clear instructions

Instructions have no meaning if they are vague

and likely to be misinterpreted

Some managers are in the habit of deliberately

leaving instructions vague and then pulling juniors

for not acting one way or the other

Descend to the level of subordinates

Boss must express himself in a language which

the subordinates can understand

Define Jurisdiction
Areas wherein the subordinate is free to take his

own decisions according to established norms and

guidelines
Boss will not be troubled with low level decisions
Subordinate must have clear idea about
what he can do without informing the boss at all
what he can do first and inform later
what he can do only after getting approval

Categorize
Subordinates
1. THOSE WHO WORK ON THEIR OWN INITIATIVE

2. THOSE WHO WORK ONLY AFTER RECEIVING

DIRECTIVES OR GUIDELINES

3. THOSE WHO DO NOT WORK EVEN AFTER

RECEIVING DIRECTIVES AND GUIDELINES

Subordinate Problems are

Ultimately Bosses Problems
ANY

DEFICIENCY IN WORKING HAVE TO BE

REMOVED BY CONCERTED EFFORT
BOSS CANNOT GET AWAY BY SAYING THAT THESE

PROBLEMS HAVE TO BE TACKLED BY JUNIOR STAFF

ALONE
BOSS

HAS TO GET INVOLVED AND ISSUE

NECESSARY DIRECTIONS TO SOLVE THE PROBLEMS
IT IS THE BOSS WHO WILL HAVE TO ANSWER FOR

THE WORKING OF ALL SECTIONS UNDER HIS

CHARGE

Strive to become
Redundant
EVERY

SUPERVISOR OR MANAGER MUST

STRIVE TO MAKE HIMSELF REDUNDANT AND
SUPERFLUOUS

EFFORT MUST BE MADE TO EVOLVE SYSTEMS

AND PROCEDURES, SO THAT WORKING IS NOT

AFFECTED IN THE ABSENCE OF SUPERVISOR /
MANAGER

Train supervisor to
take your place
ADVANCEMENT

IS EASY IF THERE IS
SOMEONE WHO CAN ASSUME CHARGE OF
THE VACATED POSITION
MANAGER

SHOULD
TRAIN
HIS
SUBORDINATES ADEQUATELY, NOT ONLY TO
REDUCE HIS WORKLOAD BUT ALSO TO
FACILITATE HIS OWN ADVANCEMENT AT THE
APPROPRIATE TIME

SOME

MANAGERS ARE UNDULY SECRETIVE AND

HABITUALLY CONCEAL DOCUMENTS AND INFORMATION
FROM SUBORDINATES
MANY ORGANIZATIONS FORCE THEIR EMPLOYEE TO AVAIL

DUE LEAVE AND DO NOT PERMIT LEAVE ACCUMULATION TO

A CERTAIN LEVEL
EXCELLENT

PRACTICE AND SERVES TO MOTIVATE AND TRAIN

SUBORIDNATES FOR HIGHER RESPONSIBILITES
SIMULTANEOUSLY, THE BOSS RETURNS REFERESHED AFTER LEAVE

TO DO GREATER JUSTICE TO HIS RESPONSIBILITIES

Be Fair and Appear to

be Fair
JUSTICE MUST NOT ONLY BE DONE BUT

SEEN TO BE DONE
BOSS MUST BE FAIR, BUT ALSO APPEAR TO

BE FAIR TO HIS SUBORDINATES

ALL SUBORIDNATES SHOULD BE TREATED

ON MERITS AS FAR AS DISTRIBUTION OF

ASSIGNMENTS
AND
PROSPECTS
FOR
ADVANCEMENT ARE CONCERNED

IT IS NATURAL TO DEVELOP LIKING OR DISLIKE

FOR VARIOUS SUBORDINATES

ONE

MUST NOT GET

SUBJECTIVE CRITERIA

CARRIED

AWAY

BY

FRIENDSHIP AND PERSONAL RELATIONS WITH

SUBORDINATES
SHOULD
NOT
OBSTACLES TO ADVANCEMENT
THE

ACT

AS

RECOMMENDED
PERSON
SHOULD
REDUCE THE WORKLOAD OF THE BOSS AND
MAKE HIS LIFE EASIER

DECISION MAKING
MOST PROBLEMS ADMIT MULTIPLE SOLUTIONS
A CONCIOUS AND DELIBERATE DECISION HAS

TO BE TAKEN TO
COURSE OF ACTION

PURSUE

PARTICULAR

IT IS UNLIKELY THAT ALL DECISIONS TAKEN BY

A MANAGER WOULD PROVE TO BE CORRECT IN

THE LONG RUN
SUCCESSFUL MANAGERS ARE THOSE WITH

HIGH PERCENTAGE OF CORRECT DECISIONS

ONCE A DECISION IS TAKEN, THE MATTER

DOES NOT END

DECISION SHOULD BE MONITORED TO

ASCERTAIN WHETHER THE DESIRED RESULTS

ARE BEING OBTAINED OR NOT
IN

CASE OF DEVIATIONS FROM THE

EXPECTED OUTCOME, THERE SHOULD BE NO
HESITATION IN REVERSING THE DECISION
BEFORE THE SITUATION GETS OUT OF HAND

DECISIONS SHOULD BE QUICK AND TIMELY

PROCASTINATION

LEAD
TO
DISASTROUS
CONSEQUENCES AND AFFECTS ORGANIZATIONAL
EFFICIENCY
NORMS

AND
GUIDELINES
SHOULD
BE
ESTABLISHED SO THAT DECISION ARE TAKEN AT THE
LOWEST POSSIBLE LEVEL
SUFFICIENT AUTHORITY SHOULD BE DELEGATED

TO THE JUNIOR LEVELS -ACTIVE INVOLVEMENT OF

PERSONNEL, GOOD MORALE AND FREEDOM OF
BOSS FROM ROUTINE DECISIONS

INTEGRATED PROJECT
FOCUSES MANAGEMENT
ALL PROJECT EFFORT TOWARD THE
STRATEGIC PLAN OF THE ORGANIZATION
REINFORCES MASTERY OF PROJECT MANAGEMENT AND

INTER-PERSONAL SKILLS
MAY

REQUIRE
RENGINEERING
MANAGEMENT PROCESS

OF

BUSINEESS

INTEGRATION OF PROJECTS WITH STRATEGIC PLAN OF THE

ORGANIZATION
INTEGRATION WITHIN THE PROCESS OF MANAGING ACTUAL

PROJECTS

INTEGRATION OF
PROJECTS
WITH
NEED: STRATEGIC
PLANS ARE
MADE BY ONE
GROUP OF MANAGERS, PROJECTS SELECTED BY
PLANS
OTHER STRATEGIC
AND IMPLEMENTED BY ANOTHER
INDEPENDENT DECISIONS LEAD TO CONFLICTS,

CONFUSION ETC. ON UNSATISFIED CUSTOMERS

RESOURCES ARE WASTED IN NON-VALUE ADDED

ACTIVITIES/PROJECTS

CHARACTERISTICS
ALL THE PARTS ARE INTER-RELATED. A CHANGE

IN ONE OF THE PARTS WILL INFLUENCE THE WHOLE

VISION, MISSION, OBJECTIVES AND STRATEGIES

NEED TO BE PREPARED CONSIDERING INTERNAL

AND EXTERNAL ENVIRONMENTAL FACTORS
EXTERNAL

FACTORS:
POLITICAL,
ECONOMIC AND TECHNOLOGICAL

SOCIAL,

INTERNAL FACTORS: MANAGEMENT, FACILITIES,

CORE COMPETENCIES, FINANCIAL CONDITIONS

IMPLEMENTING

STRATEGIES

THROUGH

PROJECTS
SELECTING PROPOSALS THAT MAKE LARGEST

AND MOST BALANCED CONTRIBUTION TO THE

OBJECTIVES AND STRATEGIES
PRIORITIZING PROJECTS SO THAT RESOURCES

ARE ALLOCATED TO THE RIGHT PROJECTS

INTEGRATION WITHIN THE PROCESS

OF MANAGING ACTUAL PROJECTS
TECHNICAL SIDE OF THE MANAGEMENT PROCESS
PLANNING, SCHEDULING, CONTROLLING

SOCIO-CULTURAL

SIDE
MANAGEMENT PROCESS

OF

THE

PROJECT

SHAPING

A PROJECT CULTURE THAT STIMULATES

TEAMWORK AND HIGH LEVELS OF PERSONAL MOTIVATION
PROBLEM SOLVING APPROACH
EFFECTIVE

STAKEHOLDERS

COMMUNICATION

SESSIONS

WITH