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
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• 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
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• 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 •
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• Maintenance: Capital Repairs, Major Overhauling
Plant Shutdown and Turnaround
Diversification
Integration
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• 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
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• 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 •
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• 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
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• 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
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• 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
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– List Of Activities To Be Completed
Activity Relationships
Gantt Charts
Critical, Non-critical Activities, Milestones
Resource Loading, Leveling, Allocation • Project Monitoring & Control
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– 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
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• 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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