1519015226492_Project_Management.pdf - ES MM QM HHSM PROJECT MANAGEMENT II SEM 2017-2018 BITS Pilani Pilani Campus Dr ARUN MAITY BITS Pilani Pilani

1519015226492_Project_Management.pdf - ES MM QM HHSM...

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Unformatted text preview: ES / MM / QM / HHSM PROJECT MANAGEMENT – II SEM 2017-2018 BITS Pilani Pilani Campus Dr. ARUN MAITY BITS Pilani Pilani Campus MODULE 1: OVERVIEW OF PROJECT MANAGEMENT Lecture No. 1 CHAPTER 1 OF T1 COURSE CONTENT • Projects: Importance, Types, Life Cycle, Organization Structure, Roles & Responsibilities of Project Manager • Projects: Integration, Market & Demand Analysis, Technical Analysis • Projects: Time Value of Money, Financial Estimates and Projections, Balance Sheet, Project Selection • Project Planning, Scheduling and Control • Project Risk Management • Project Procurement and Contracts Management • Project Audit & Closure, Project Quality Management • Agile Project Management BITS Pilani, Pilani Campus Evaluation Components • EC1 : QUIZ -1,2,3 • CASE STUDIES THROUGH DISCUSSION FORUM • EC2: MID SEMESTER TEST : CLOSED BOOK • EC3: COMPREHENSIVE EXAMINATION : OPEN BOOK BITS Pilani, Pilani Campus Learning Outcomes • Identify Projects in a project driven and non-project driven organization, appreciate project integration management • Prioritize Projects, Select Projects and Prepare Project Scope Statement, Understand project life cycle • Identify the sources of finance, prepare projected cash flow statement and balance sheet. Estimate budget, plan and monitor status. Relationship amongst Triple constraints- Time, Cost & Scope/Performance/Quality • Project Planning, Scheduling and Control of Projects. Risk management and contingency planning BITS Pilani, Pilani Campus • Prepare work breakdown structure, plan and execute procurement, assign responsibilities, Risk Assessment matrix • Project Outsourcing and Contracts Management • Project Audit and Closure Procedure • Understand the project quality dimensions and methods of improving quality. Quality control and Assurance • Understand Agile Manifesto, Agile management, various forms of Agile, focus on Scrum methodology BITS Pilani, Pilani Campus TEXTBOOK • Clifford F. Grey, Erik W. Larson, Gautam V. Desai “Project Management The Managerial Process” McGraw Hill Education(India) Private Limited, New Delhi, Sixth Edition, 2014 • Prasanna Chandra, Projects: Planning, Analysis, Selection, Financing. Implementation & Review, McGraw Hill Education (India) Private Limited, New Delhi, 8th Ed., 2014. BITS Pilani, Pilani Campus REFERENCES • Kerzner, Harold, Project Management: A Systems Approach to Planning, Scheduling and Controlling, Wiley Student Edition 10th Ed., 2013 • Kim H Pries & Jon M Quigley, “ Project Management of Complex and Embedded Systems”, CRC Press, 2011 • Adedeji Bodunde Badiru, “ Project Management in Manufacturing and High Technology Operations”, Wiley Interscience, Second Edition 1996. BITS Pilani, Pilani Campus 1. 0 INTRODUCTION TO PROJECT MANAGEMENT • • • • • • • Evolution And Application Project: Types, Characteristics and Elements Project Driven / Non-Driven Organization Understanding Need of Project Management Project Management : Importance, Functions Role of Project Manager & Project team Interpersonal Skills and Decision Making BITS Pilani, Pilani Campus 1.1. EVOLUTION AND APPLICATION • Developed in the late 1950’s to aid planning and Scheduling of Large Projects • Construction Industry • Automakers – Toyota, Nissan, BMW • Electronics • Information Technology • Steel • Fertilizer • Oil and Gas • Pharmaceutical BITS Pilani, Pilani Campus 1.2 WHAT IS PROJECT? • A Project is a Complex , Non Routine, One-time Effort Limited By Time, Budget, Resources And Performance Specifications Designed To Meet Customers’ Needs • Creates Unique Product, Service, Result called a deliverable • EXAMPLES • • • • • • • Introduction of a new model of commercial vehicle Enhancing the production capacity of the plant from 4 MT to 6 MT. Reducing the downtime of the machines from 3% to 1%. Improving the Quality of Product from existing 95% to 98%. Erection and Commissioning of a 300 MW Gas Power Plant Building a mobile application Implementing World Class Manufacturing in a Fiber Industry BITS Pilani, Pilani Campus Triple Constraints • Objectives: The goals expected to be achieved. There can be technical goals, legal goals (to meet governmental regulations) and/or business goals. These objectives should be measurable • Scope: All the work required to deliver the product or result and satisfy the objectives for which a project was undertaken at a level of quality expected by the customer • Cost: The planned cost of conducting the project; it includes human and physical resources • Time/Schedule: The planned time to complete the project, as well as the Milestones along the way BITS Pilani, Pilani Campus 1.3 SECTORS & TYPES Different Sectors: Public Sector, Private Sector, Service Sector, Joint Sector Types • Industrial • Software • Service • Infrastructure • Construction • Expansion • Modernization BITS Pilani, Pilani Campus • • • • Maintenance: Capital Repairs, Major Overhauling Plant Shutdown and Turnaround Diversification Integration • • • Forward Integration Backward Integration Vertical Integration • Acquisition • Rehabilitation • Research and Development BITS Pilani, Pilani Campus 1.4 CHARACTERISTICS • CHARACTERISTICS • A Project Consists of Series of Activities and Tasks that – Have A Specific Objective To Be Completed Within Specifications and Performance requirements – Have Definite Start And End Dates – Have Funding Limits – Consume Resources – Meet and Exceed Customers’ Needs – Involvement of several departments and professionals – Doing something that has never been done earlier Certain BITS Pilani, Pilani Campus 1.5 ELEMENTS • • • • • • • • • • Identification of Project Prioritization Of Project Selection of Project Scope Of Work Work Breakdown Structure Risk Management Cost And Time Estimate Procurement Allocation Of Resources Execution Of Jobs BITS Pilani, Pilani Campus • • • • • • • • • Subcontracting Performance Evaluation and Monitoring Feedback Control Commissioning Final Handing Over To The Client Project Closure Evaluation Of Project Manager And Team Retrospective BITS Pilani, Pilani Campus 1.6 NEED Project: Fulfilling the needs and requirements of the customer Successful Projects are Path breaker for Future Projects Stakeholders: Meeting the needs of stakeholders Organization: Meeting the strategic needs of the organization Individuals: Meets the goals and aspirations of Project manager and project team members BITS Pilani, Pilani Campus 1.7 PROJECT ORGANIZATION PROJECT DRIVEN ORGANIZATION • All 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 On Vertical Or Horizontal Lines • Priority Resources Are Assigned To Revenue Producing Functional Line Activities Rather Than The Projects BITS Pilani, Pilani Campus 1.7.1 LIMITATIONS OF NON-PROJECT DRIVEN ORGANIZATIONS • Projects May Be Few And Far Between • Not All Projects Have The Same Project Management 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 BITS Pilani, Pilani Campus 1.8 PROJECT MANAGEMENT APPROACH DRIVING FORCES Capital Projects Customer Expectations Competitiveness Executive Understanding New Project Development Efficiency And Effectiveness BENEFITS Accomplish Work In Less Time With Fewer People Increases Profitability Enhanced Quality Better Control Of Scope Changes Customer Focussed Good Decision Making & Reduced Power Struggle BITS Pilani, Pilani Campus 1.9 Understanding Need and Importance of Project Management • • • • • • • • Ability To Plan, Implement And Manage Activities Result-oriented Management Styles Compression Of Product Life Cycles Global Competition Knowledge Explosion Corporate Downsizing Increased Customer Focus Multi-project Environment BITS Pilani, Pilani Campus 1.9.1 Compression of Product Life Cycle • Shortening of Product Life Cycle • Time to market for new products with short life cycles • A six month project delay can result in 33% loss in product revenue share • Speed : As competitive advantage BITS Pilani, Pilani Campus 1.9.2 Knowledge Explosion • Growth in knowledge has increased the complexity of projects • Increased complexity : materials, specifications, codes, aesthetics, equipment, specialists • Product complexity increased the need of divergent technologies BITS Pilani, Pilani Campus 1.9.3 Triple Bottom Line Planet, People and Profit • • • • • • Stringent environmental norms Reduce carbon imprint Utilize renewable resources Flexibility, Innovation, Speed Continuous Improvement Sustainability BITS Pilani, Pilani Campus 1.9.4 Corporate Downsizing • Downsizing or Rightsizing • Sticking to core competencies • Flatter organization structure • Outsource significant segments of project work BITS Pilani, Pilani Campus 1.9.5 Increased Customer Focus • Increased competition • Customer satisfaction • Customized products and services • Close working relationships between provider and receiver BITS Pilani, Pilani Campus 1.9.6 Small Projects represent Big problems • Small projects carry the same or more risk as do large projects • Little impact on bottom line • Small projects add up to large sum of money • Need of multi-project environment BITS Pilani, Pilani Campus 1.10 FUNCTIONS OF 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 BITS Pilani, Pilani Campus • Project Scheduling – – – – – List Of Activities To Be Completed Activity Relationships Gantt Charts Critical, Non-critical Activities, Milestones Resource Loading, Leveling, Allocation • Project Monitoring & Control – – – – – Tracking Progress Comparing Analyzing Impact Making Adjustments Time, Cost, Quality Control BITS Pilani, Pilani Campus 1.11 PROJECT MANAGER: ROLE • 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 BITS Pilani, Pilani Campus • Responsible For Performance • Ensure Appropriate Trade-offs Between Time, Cost And Performance Requirements • Inducing The Right People At The Right Time • To Address Right Issues And Make Right Decisions BITS Pilani, Pilani Campus 1.12 Skills • Having a plan in place to handle team conflict. • Having a plan in place to deal with a customer always wanting to make changes. • Having a plan in place to mentor and coach poor performers on your team. • Having a plan in place to deal with possible quality issues. • Having a plan in place to develop a collaborative relationship with other managers. BITS Pilani, Pilani Campus 1.13 Managing Project Team • • • • Location of the team Size of the team including number of resources Skills needed both technical and interpersonal Virtual teams are difficult to lead due to the physical distance and lack of daily face to face contact • Co-located team seems to be more productive and effective due to more communication and stronger relationships bond • Learn and understand the expectations of behavior in many cultures BITS Pilani, Pilani Campus 1.13.1 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 BITS Pilani, Pilani Campus 1.13.2 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 BITS Pilani, Pilani Campus • 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 BITS Pilani, Pilani Campus • 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 BITS Pilani, Pilani Campus • 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 BITS Pilani, Pilani Campus 1.13.3 BOSS HAS GREATER ACCESS TO INFORMATION • By virtue of position in the organization, the boss has greater access to vital information affecting the wellbeing 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 BITS Pilani, Pilani Campus 1.13.4 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 BITS Pilani, Pilani Campus 1.13.5 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 BITS Pilani, Pilani Campus • 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 BITS Pilani, Pilani Campus 1.13.6 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 BITS Pilani, Pilani Campus • 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 BITS Pilani, Pilani Campus • 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 adversely affect organizational working BITS Pilani, Pilani Campus 1.13.7 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 BITS Pilani, Pilani Campus • 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 BITS Pilani, Pilani Campus • 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 BITS Pilani, Pilani Campus 1.13.8 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 BITS Pilani, Pilani Campus 1.13.9 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 BITS Pilani, Pilani Campus 1.13.10 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 BITS Pilani, Pilani Campus 1.13.11 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 BITS Pilani, Pilani Campus 1.13.12 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 BITS Pilani, Pilani Campus • 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 Subordinates For Higher Responsibilities And Train – Simultaneously, The Boss Returns Refreshed After Leave To Do Greater Justice To His Responsibilities BITS Pilani, Pilani Campus 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 Subordinates Should Be Treated On Merits As Far As Distribution Of Assignments And Prospects For Advancement Are Concerned BITS Pilani, Pilani Campus • It Is Natural To Develop Liking Or Dislike For Various Subordinates • One Must Not Get Carried Away By Subjective Criteria • Friendship And Personal Relations With Subordinates Should Not Act As Obstacles To Advancement • The Recommended Person Should Reduce Workload Of The Boss And Make His Life Easier The BITS Pilani, Pilani Campus 1.14 DECISION MAKING • Most Problems A...
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