lecture pm functions importance
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INTRODUCTION TO PROJECT
MANAGEMENT Meaning : Project management is a system of procedures,
practices, technologies and know how that enables the planning,organising, staffing, directing and controlling of projectactivities to successfully manage a project.
It is defined as “The application of knowledge, skills, tools andtechniques to project activities in order to meet projectrequirement.”
• “The art of directing and coordinating human and materialresources throughout the life of a project by using modernmanagement techniques to achieve predetermined objectives ofscope, cost, time, quality and participation satisfaction”
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ELEMENTS OF A SUCCESSFUL
PROJECT
Has been finished on time.
Is within its cost budget.
Performs to technical/performance standardswhich satisfies the end user.
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Causes of project failure
The customer’s conditions or satisfaction have not beennegotiated.
The project no longer has a high priority
The schedule is too optimistic.
The project plan is not used to manage the project.
Sufficient resources have not been committed
Project status is not monitored against the plan
No formal communication plan is in place
The project has lost sight of its original goals.
There is no change management process in place.
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3 Ws OF PROJECT
MANAGEMENT
What : Scientific application of modern
techniques and tools.
Whom : in planning, financing, implementing,
monitoring, controlling and coordinating
unique activities of project
Why : to produce desirable outputs in
accordance with predetermined objectives
within constrains of time and cost.
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P r o j e c t M a n a g
e m e n t P
r o j e
c t M a n a g e m e n t
MANAGEMENT
Knowledge, skills, tools and techniques
PROJECT ACTIVITIES
Conception, design, Implementation, Commissioning
SUCCESSFUL PROJECT
Within planned time, resource, scope and quality
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THE SCOPE TRIANGLE
Resources
Project scope and
quality
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PROJECT PARAMETERS
Defining project scope
Defining quality
Managing time Managing cost
Managing resources
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Project Management Functions
Project management responsibilities Integration management
Processes required to ensure that elements of the project are properly coordinated
Consists of project plan development, project planexecution, and overall change control
Scope management
Processes required to ensure that all the work required,and only the work required, is included to complete the
project successfully
Consists of initiation, scope planning, scope definition,scope verification, and scope change control
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Time management
The processes required to ensure the project is completed ina timely way
Consists of activity definition, activity sequencing, activityduration estimating, schedule development, and schedulecontrol
Cost management
The processes required to ensure the project is completed
within the approved budget Consists of resource planning, cost estimating, cost
budgeting, and cost control
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Quality management
The processes required to ensure that the project satisfies
the needs for which it was undertaken
Consists of quality planning, quality assurance, and qualitycontrol
Human resource management
The processes required to most effectively use the people
involved in the project Consists of organizational planning, staff acquisition, and
team development
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Communications management
The processes required to timely and appropriatelygenerate, collect, disseminate, store, and ultimatelydispose of project information
Consists of communications planning, information
distribution, performance reporting, and administrativeclosure
Risk management The processes concerned with identifying, analyzing,and
responding to project risk
Consists of risk identification, risk quantification, riskresponse development, and risk response control
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Procurement management
The processes required to acquire goods and
services from outside the organization Requires good relations with companies and
individuals in the “supply chain”
It consists of procurement planning, solicitation
planning, solicitation, source selection, contractadministration, and contract closeout
Requires clear understanding of costs and timing(how quickly goods and services can be
delivered)
Requires common understanding of quality controlissues
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BENEFITS OF PROJECT
MANAGEMENT
Clear description of work to be performed
Responsibilities and assessment of tasks
Time limit for task completion
Measurement of accomplishment against plans is possible Problems are exposed in advance allowing corrective action
Objective that cannot be met are identified early
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IMPORTANCE OF PROJECT
MANAGEMENT
Project Management was developed as a result of serving and
fulfilling a special need.
Due to rapid changes in business environment, now it is nolonger a special need management rather it has become a
standard way of doing business.
Increasing %age of firm’s efforts are now being devoted to projects
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Importance Of Project Mangement
Factors leading to the increased use of project
management:
Compression of the product life cycle
Knowledge explosion
Global Competition (planet, people, profit)
Corporate downsizing
Increased customer focus
Small projects represent big problems
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Importance of Project Management
Keeping in view the shorter PLC
it is imperative to keep constant chain of new products in the pipeline.
Place the product in the market before competitor.
Common rule of thumb in High tech product development is that a
6 months delay can cause 33% loss in product revenue share.
Time to market new products is indispensable
Due to the velocity with which technology is changing.
Speed is also becoming a competitive advantage
Because more and more organizations are relying on cross
functional project teams and project management methods to get
new products and services to the market as quickly as possible.
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Importance of Project Management
Global Competition
Transformation from national to global economy has led todramatic technological changes or innovations.
Which created tremendous pressure on quality improvement and costcontainment.
Open market demands not only cheaper products but also better products and services
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Importance of Project Management
Knowledge Explosion
Growth and advancement in New Knowledge
Increased the complexity of projects due to latest
advances. E.g., buliding a road 30 years ago was somewhat simple
process.
Today, the complexity in each area has increased
Including materials, specifications, codes, aesthetic,
equipment and required specialists.
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Importance of Project Management
Basic project work has become more complexrequiring greater degree of coordination.
Existing products and services have also becometechnologically complex:
In today’s digital world, you will hardly find a product that does not contain at least one micro-chip.
project complexity has increased the need to integratedivergent technologies.
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Importance of Project Management
Corporate Downsizing
Focus in the past on growth and big is better--- organizations
began to realize that big is also more costly.
In the last decade or so, businesses have restructured their
organizational life or structure.
For the survival of firms, downsizing or rightsizing if youare still employed, and sticking to core competencies have
become necessary.
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Importance of Project Management
Now, middle management has just become a skeleton of the
past.
Due to the fact that change is constant, Project management
has replaced the middle management as a way of ensuring thatthings get done.
You will rarely or hardly find any major project performed
totally in house.
Companies outsource significant segments of project and
project managers have to manage not only their own people
but also their counterparts in different organizations.
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Increased customer focus Increased competition has placed a premium on
customer satisfaction.
Customer no longer simply settle for generic productsand services.
They want customized products and services thatcater to their specific needs.
This mandate requires a much closer workingrelationship between provider and receiver.
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Increased customer focus
Account executives and sales reps are assuming moreof Project manager role as they work with theirorganization to satisfy the unique needs and requestsof clients.
This change has also prompted the development ofcustomized products and services.
Project management is critical both to development ofcustomized products and services and to sustainlucrative relationship with customers.
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Rapid development of third world
and Closed Economies. The collapse of the soviet empire and gradual
opening of Asian communist countries have created
an expansion in built-up demand within these societies for
all manner of consumer goods and infrastructuredevelopment.
Western firms are scrambling to introduce their
products and services to these new markets
Many firms are using project management techniquesto establish distribution channels and foreign bases ofoperations.
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Small projects represent big
problems
The velocity of change required to remaincompetitive or simply keep up has created anorganizational climate in which hundreds of projects
are implemented concurrently.
This climate has created a multi project environmentand plethora of new problems.
Sharing and prioritizing resources across a portfolioof projects is a major challenge for seniormanagement.
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Small projects represent big
problems Small projects typically carry the same or more risk as do large
projects.
Small projects are perceived as having little impact on the bottom line because they not demand large amounts of scarceresources. Because so many small projects are goingconcurrently and because the perception of inefficiency impactis small, measuring inefficiency is usually non-existent.Unfortunately many small projects soon add up to large sumsof money.
Many customers and millions of dollars are lost each year onsmall projects in product and service organization.