IISc MG 286 Project Management Introduction

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PROFICIENCE PMC Course
Module 1 Introduction
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Module I Introduction
Project Management is the art of directing and
coordinating human and material resources,
throughout the life of a project, by using modern
management techniques, to achieve pre-determined
objectives of scope, time, cost, quality and
customer satisfaction.    Project Management
Techniques 1. Project characteristics and Forms
of Management 2. The Systems Approach and its use
in conceptual design of project. 3. Quantitati
ve methods in Project Management 4.  Project
Organization and Human Resource
Management 5.  Discussion Examples and Case
Studies
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Basic characteristics of an Engineering Project

• An engineering project involves at least a single
  definable end product, usually specified in terms
  of cost, schedule and performance requirements.
• An engineering project cuts across traditional
  organizational lines, since it needs to utilize
  skills and talents from several professions,
  disciplines and organisations
• An engineering project is unique, in that it
  requires doing something that is different that
  what was done previously. An engineering project
  is a one time activity, never to be repeated
  again.
• An engineering project may involve unfamiliarity,
  encompass new technology, and possess significant
  amount of uncertainty and risk.

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Basic characteristics of an Engineering Project

• An engineering project is a temporary activity
  an ad hoc organization of personnel, material,
  and facilities is assembled to accomplish an
  engineering goal once the goal is achieved,
  organization is disbanded or reconfigured to work
  on a new goal.
• An engineering project is the process of working
  to achieve a goal during the process, project
  passes through several distinct phases called
  project life cycle resource deployment builds
  up, peaks and then declines.

A TYPOLOGY OF ENGINEERING PROJECTS     Diagram
from Lecture 1, Slide 4
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Complexity magnitude of effort, number of
groups and organizations, diversity
expertise Time/resource commitments tend to
increase with complexity Uncertainty difficulty
in predicting the final outcome in terms of time,
cost and performance. Cost Curve Expenses
increase in proportion to both complexity and
uncertainty.
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Characteristics of a Project
Ø Definable end Product Ø Cuts across
organizations and disciplines Ø Unique, one
time Ø Unfamiliarity, uncertainty,
risk Ø Temporary, Time bound Ø Process, life cycle
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Characteristics of a Project
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Features

• Single point of responsibility and authority
  Project Manager
• Work distributed across departments,
  organizations
• Formal Techniques of
• Work Breakdown (WBS)
• Scheduling
• Costing/Budgeting
• Monitoring/Controlling
• Need Flexible, Dynamic, Systems Approach of
  Management

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Characteristics of Project Management

• A single person (Project Manager) heads the
  organization. Operates independently of normal
  chain of command. Organization reflects
  cross-functional, goal oriented, temporary nature
  of project.
• Project Manager is focal point.
• Actual work is performed by different functional
  areas.
• Project Manager/Team is responsible for
  integrating people from different disciplines
• Project manager integrates work of functional
  managers Latter is responsible for different
  tasks, former for overall project

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Characteristics of Project Management

• Project focuses on delivering a product/Service
  at certain time, cost and specifications.
  Functional units maintain resources to support
  organizational goals.
• Dual chain of command Vertical (Functional) and
  horizontal (Project) conflicts.
• Decision making vests with project team
• Functional units contributing to project team are
  permanent needs regrouping.
• Projects can originate at different places
  Product development emerge from marketing,
  technological applications originate from R D.
• Project management sets in motion other functions
  personnel evaluation, accounting, and
  information systems.

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Example Product Development
 All products have a limited life -improved
products replace them or -the purpose served is
eliminated Company Alpha consumer and
industrial goods. One division (consumer
products) began losing market share to
competitors. Several innovative concepts were on
the drawing board. One new product X - how
to quickly translate from concept to commercial
product. Requires - extensive marketing analysis,
in-house product development, optimal costing and
pricing, early introduction in the market,
advertising, etc. Solution Project Management
Concept.
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Where is Project Management appropriate?
 Project Management originated in construction
and aerospace industries, environment and kinds
of activities demanded flexible and imaginative
forms of management. Till about 30 years ago,
project management was used primarily for
defence, space and construction projects.
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The General Conditions

• The more unfamiliar or unique the undertaking,
  the greater the need for project management (to
  make sure nothing gets overlooked)
• The more numerous, inter-disciplinary and
  inter-dependant activities, the greater the need
  for a project manager (to ensure that everything
  is coordinated, integrated and completed)

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Five specific Criteria
1. Magnitude of the effort requiring
substantially more resources (people, capital,
equipment, etc.) that can be handled by a single
dept., organization. E.g. Corporate computer
installation more than EDP. 2. Unfamiliarity
by definition, project is something different
from the ordinary, routine. Eg. Plant
modernization (revising facilities layout,
modifying assembly, replacing equipment) 3.
Changing environment hi-tech industries like
computers, electronics, pharmaceuticals etc
high innovation, product changes, shifting
markets and consumer behavior. Changing
environments present new opportunities.
Organizations must be creative, innovative and
flexible.
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Five specific Criteria

• 4. Inter-relatedness Functional areas could
  work at cross-purposes. For joint effort, project
  management builds lateral relationships.
  Coordinate efforts within the organization as
  well as with contractors, vendors and customers.
• 5. Reputation/stake for completion Likelihood
  for successful completion of activity is
  increased if a single, competent individual is
  assigned responsibility. For prestigious
  projects, assign project manager with the
  assistance of a technical group.

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Some Questions to assess the need for Project
Management

1. Is the job very large?
2. Is the job technically very complex?
3. Is the job a true system?
4. Is the job a part of a larger system?
5. Does the top management feel the need for the
   single point information and responsibility?
6. Are strong budgetary and fiscal controls
   required?
7. Are tight schedule constraints foreseen?
8. Are quick responses to change necessary?

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Some Questions to assess the need for Project
Management

1. Does the job cross disciplinary boundaries?
2. Is there likely to be conflicts between line
   managers?
3. Are there concurrent projects?
4. Will the job disrupt organizational structure?
5. Are there major items to be bought out?
6. Are portions of system to be sub-contracted?
7. Is the project to be reviewed/approved by
   government agencies?

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Types of Project Managers

• Project Expeditors speed up work and achieve
  unity of communications. Translating technical
  concepts into business concepts of cost,
  schedules and markets (Liaison-small projects)
• Project Coordinators act as staff leaders and
  achieve unity of control over project activities.
  Authority to control project matters and
  disbursement of funds from the budget, but no
  actual authority over project staff/workers. Eg
  Construction project manager.

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Types of Project Managers (contd.)

• Matrix managers plan, motivate, direct and
  control project work, to achieve unity of
  direction. Staff located administratively in
  other functional departments, criss-cross pattern
  of vertical functional and horizontal functional
  reporting create a matrix organization.
• Pure project managers- direct pure project
  organisations of people who report directly to
  them, to achieve unity of command. Primarily
  integrators and generalists rather than technical
  specialists. Eg. Construction project manager to
  whom power has been delegated to make major
  decisions letting contracts for
  architects/builders etc.

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Basic Project Management

• Project manager is given formal authority to
  plan, direct, organize and control the project.
  Implementation is in two forms pure and matrix
  project.
• Pure Project Management is a complete,
  self-contained organisation created with all the
  necessary functional units and the resources are
  inherent.
• Matrix management using elements allocated from
  permanent functional units creates organization

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Programme Management

• Extends over a longer time horizon (5 or more
  years) and consists of several parallel or
  sequential work efforts (projects) Eg satellite
  Launch Programme of ISRO. Consists of several
  project IRS, INSAT 1,2 etc., SLV, ASLV, PSLV,
  etc. Some of these projects may themselves be
  programmes.
• Projects are oriented to producing and delivering
  a product or service after which the project is
  over. Programmes on the other hand involve
  operation and maintenance of system.
• Continuity is necessary in programme management.
  It needs training and replacement throughout the
  programmes life cycle.
• Programmes composed of teams from various
  projects and thus need a programme structure.

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New Venture Management

• A team is created to find new products, markets,
  etc. that fit the organizations specialized
  skills, capabilities and resource
• Focus on a single unifying goal
• Multidisciplinary and functional experts
• Action oriented and change driven
• Temporary venture group with specified goal

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Product Management

• Single person given authority to oversee all
  aspects of a products production

• Product manager coordinates and expedites efforts
  of manufacturing, distribution and sales
• Product managers of products with long life
  cycles rotate.

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Ad hoc committees
Reorganizations, mergers, surveys, audits,
efficiency/modernization/cost reduction efforts,
expansions, relocation, management development
programmes, new equipment installation etc.