Project Management in India

Project Management in IndiaByProf Alok Kumar Singh

About IndiaIndia, the second largest country in the world population wise and seventh territory wiseFrom North to South, India measures about 3214 km (1929 miles) and from east to west, about 2933km (1760 miles).The total land area is 32,68,090 sq.km. Its land frontier is 15,200 km and coastline 6103km.

GDP of India

Sector wise contribution

Project Management Steps

The Triple Constraint of Project Management

Successful project management means meeting all three goals (scope, time, and cost) and satisfying the projects sponsor!

Major Steps in Project ManagementNeed AnalysisStakeholder AnalysisInvestment AppraisalPESTLE analysisPlanning the project WBSActivity RelationshipNetwork DiagramNetwork AnalysisCritical Path IdentificationCrashing of ActivitiesResource Need and LevellingRisk AnalysisMonitoring and ControlCloseout

Major Project AreasConstruction/ Real StateManufacturingPowerProduct DevelopmentOil and Gas ExplorationTransport Facilities ( Rail, Road, Ports, Airports)DefenceRural DevelopmentUrban Development

Developed Vs. Developing Countries ProjectsPopulation explosion,Socio-economic imbalance, Unemployment, Inequality of income distribution, Inadequacy in savings and investments andUnbalanced budget Inflation.

1-RATIONALIST Determinist Asks questions Objective (Coherent) Concepts are clear 1- DOGMATIC AND EMOTIONAL Fatalist Obedient Subjective (incoherent) Concepts are recondite (What is meant should be questioned)2- INDIVIDUALIST Individualist and humanist Criticizes everything Competitive Self-Confident Democratic and Local Administration is preferred Common interests are important Social Organizations are active 2- OPPRESSES THE INDIVIDUAL Happy with Hierarchy Against Criticism Looks for harmony Fearful and has inferiority complex Autocratic and Central Administration is preferred Personal benefits are assumed as common benefits Not enough Social Organizations

Developed Vs. Developing Countries ProjectsSource: M KURUOGLU and E ERGEN

3- TASK (RESULT) ORIENTED Production Oriented: (Meritocracy, Team Work) Realistic Goals and Planned Life 3-PROCEDURE (PRESTIGE=LABEL) ORIENTED Speculative Imaginary Goals (Unplanned Daily Life)4- WANTS TO LIVE THE LIFE COMPLETELY Entrepreneurial; evaluate business opportunities. Productivity is important Creative Active; wants to orientate events. 4- WANTS TO LIVE THE LIFE AFTER DEATH(tomorrow means life after death) Not entrepreneurial Productivity or time loss are not important Fundamentalist and Conservative Passive; orientated by events.

5- DEVELOPED IN INDUSTRY AND ECONOMY Oriented by Standards and Rules. . Has Trustworthy Statistics Conscious About Economy and Budget. Contemporary education and research is aimed. 5- AGRICULTURAL SOCIETY Double Standards is common Statistics are insufficient Unbalanced Budget and Poor Economy. Not a contemporary education.

Developed Vs. Developing Countries Projects

Key Characteristics of Indian MarketHuge English speaking populationAvailability of skilled manpowerExtensive Higher Education Diversified nature of the economy SystemThird largest reservoir of engineersHigh growth rate of economyRapid growth of IT and BPO sectorScope for entry of private firms in various sectors for businessInflow of Foreign Direct InvestmentHuge foreign exchange earningsHuge Domestic MarketHuge natural resources

Key Characteristics of Indian MarketVery High percentage of workforce involved in agricultureInequality in prevailing socio economic conditionsPoor infrastructural facilitiesHuge population leading to scarcity of resourcesLow literacy rateUnequal distribution of wealthAdministrative Bottlenecks

Challenges in the tendering phaseQuality of planning and engineering design is poorTendering unviable PPP projects Contracts in use are inappropriate Pre-tendering approval process is centralised and slow

Execution phase ChallengesLand acquisition delays Dispute resolution processes are ineffective Performance management is weak Availability of skilled and semi-skilled manpower is insufficient

What could be DoneChange land availability norms and tighten contractual penalties for delays Establish a high-power group to monitor and de-bottleneck projects Amend policies and regulation to hasten dispute resolution process Judiciously adopt delivery mode to increase success rate of tendering PPP projects Select design and engineering consultants on the basis of quality-cum-cost assessment