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Chapter 1

Introduction to Project Management

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Definition of a Project

“Project is a temporary endeavor undertaken to create a unique product, service, or

result.” PMI, A Guide to the Project Management ody o! "no#ledge $PM%"&

Guide' $())*', p. +.

Project is a temporary and nonroutine, non repetitive arrangement to produce

some speci!ic goods or services.

Project is a comple-, nonroutine, one time e!!ort limited y the time, resources,

udgets and per!ormance speci!ications design to meet customer needs.

Characteristics of Project

• /e!ine 0ime

• 1onrepeated

• 2niqueness $1onroutine'

• 3imited resources

Project Management

Project management is the discipline o! planning, organi4ing, securing and managing

resources to ring aout the success!ul completion o! speci!ic engineering project goals

and ojectives.

0he PM%" Guide de!ines project management as the application o! kno#ledge, skills,

tools and techniques to project activities to meet project requirements.

Project management is a process o! acquiring resources and coordinating project

activities to complete project #ith in given time and resources e!!iciently and e!!ectively.

Difference between Projects and non projects

Projects could e di!!erentiated !rom the routine activities on the asis o! their characteristics. i.e projects are non routine one time and limited y time and cost e!!ort to

produce some speci!ic output. In the tale elo# some projects and routine #orks are

listed through these, it is easier to understand di!!erence et#een projects and non

projects

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Projects routine work

Getting A degree taking regular classes

5riting term paper #riting lecture notes

uilding a house renovation o! house

Project life cycle

Project li!e cycles consist o! the !ollo#ing phases.

6. /e!ining

(. Planning

7. 8-ecuting

*. 0erminating

Defining involves starting up the project, y de!ining goals, tasks, speciali4ation and

responsiilities o! the projects.

Planning involves setting out the course o! action !or the project y creating the

!ollo#ing plans9 project plan, schedules, udgets, resource plan, !inancial plan and

communications plan.

Execution involves uilding the deliverales and controlling the project delivery, scope,

costs, quality, risks management, status reports and !orecasting.

Termination involves #inding up the project y releasing sta!!, handing over

deliverales to the customer and completing a post implementation revie#.

Phase I: Defining the project

/e!ining o! project is the !irst phase in the Project 3i!e :ycle and essentially involves

de!ining the ojectives o! the project. ;ou initiate a project y de!ining its purpose and

scope, the justi!ication !or initiating it. ;ou #ill also need to recruit a suitaly skilled

project team and de!ine the responsiilities, develop deliverales and milestones o! the

project.

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roads, schools and hospitals into gleaming ne# constructions that improve everyday li!e.

=eali4ation o! ojectives is not easy, though especially in todayBs increasingly comple-

and highstake #orld > richer technology, distriuted C gloal C outsourced #orkgroups,

culture di!!erences due to inorganic gro#th, cost pressures, ne# services and products,

mass customi4ation needs !or demanding customers, compressed timetomarket,

increasing market volumes and stricter regulatory requirements. 1umerous studies and

oservations have sho#n that strong usiness gro#th or other amitious endeavors

!requently ring the !ollo#ing risks in deployment o! strategies to manage the endeavors9

/elays due to ine!!ective project planning, monitoring, coordination, riskmanagement

and !ollo#through Poor reali4ation o! !inancial goals due to ine!!ective scope

management and sta!! utili4ation C accountaility :ustomer dissatis!action due to lack o!

responsiveness, communications and stakeholder management. 0hus, the key !or most

organi4ations to remain competitive in a highgro#th and !astchanging environment is

strong delivery capaility made possile y uni!orm and e!!ective processes, structure,

and discipline o! planning and monitoring initiatives that translate strategy into reality.

Project Management is a competency that leaders can use in their organi4ations to handle

increasing comple-ity #ith higher success rates and acceptance, and lo#er uncertainty

and costs. ?ollo#ing are just a !e# e-amples o! the organi4ational ine!!iciencies that pose

the aovementioned risks, ut can e e!!ectively handled through use o! the Project

Management competency, Dchedules managed in silos and dependencies are not

integrated. /elays in one area not communicated to a dependent area, so resources not

allocated e!!iciently. Dchedules having shortterm !orecast range. 3ongterm planning at

the activitylevel none-istent. Dchedules not identi!ying true critical paths and not

including non#orking time and de!ect estimates. Many communication channels

in!ormal, and there!ore in!ormation not documented and communicated to all appropriate

stakeholders in a timely manner. =esponsiility !or decisionmaking not clearly de!ined

$decisions a!!ecting shi!ting priorities or resources, changing dates, etc.'. 3ack o!

proactive risk identi!ication and management. Inadequate reporting lack o! visiility C

insight into the true status o! the projects. ?requently !orgotten or delayed activities and

decisions the art o! managing projects is aout having consistency in achieving stated

ojectives #ithin limits o! time, udget, and stakeholders< satis!action, y directing and

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coordinating human and material resources. Project Management is a #ay o! li!e !or

enhanced collaoration, governance, e-ecutiondiscipline, responsiveness, and alignment

o! organi4ational elements and procedures #ith !eatures o! products and operations.

Project Management skills are quite di!!erent !rom technical design, engineering or

construction skills usually associated #ith most projects, and cover aspects outside o! the

scope o! these technical areas that have to e #ell managed, i! the project ojectives are

to e met. Project Management also di!!ers !rom traditional management in that it rings

in cross!unctional collaoration, governance, e-ecutiondiscipline, responsiveness, and

alignment o! organi4ational elements and procedures #ith !eatures o! endproducts o!

projects. It can help leaders ring in agility in innovation, gro#th and response to changes

in the e-ternal environment. Applying e!!ective Project Management !or deployment o!

strategy and goals can thus provide organi4ations the !ollo#ing advantages9

usiness advantage through timely achievement o! goals, optimal resource utili4ation and

in!ormation ased decision making :ompetitive advantage through #ork!orce energi4ed

y culture o! e-ecution and collaoration and customer satis!ied y getting the “right”

results relialy Project Management can also ring in some tangile ene!its !or

individuals at various levels in organi4ations. ?or e-ample, through project management9

8-ecutives get accurate and timely in!ormation so that they can make sound usiness

decisions and make course corrections quickly so they can maintain a competitive edge.

People #ho e-ecute understand their roles and responsiilities and ho# their #ork relates

to the igger picture. Minimi4ation o! con!licts and con!usions through e!!ective

communications increases productivity and enthusiasm. It can e concluded that project

management as a management discipline, individual competency and organi4ational

culture underpins much economic activity and is a critical source o! multiple advantages.

0he speciali4ed role o! project management in ringing agility to organi4ations that #ant

to innovate, #hether it is !or ne# products or ne# initiatives, cannot e ignored.

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ey !erms

Project is a temporary endeavor undertaken to create a unique product, service, or result.

Project Management: 0he PM%" Guide de!ines project management as the

application o! kno#ledge, skills, tools and techniques to project activities to meet project

requirements.

"#ercise

6. /e!ine Project and its characteristics.

(. /iscuss Project 3i!er cycle.

7. 5hy Project Management is important !or modern organi4ations.

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