12_creating sustainable impact through project management

8/7/2019 12_Creating Sustainable Impact Through Project Management

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Creating Sustainable Impact

Through Project Management

CII Convention on

Large Infrastructure Projects

Sustainable Development & The Law

July 25th

2008Raj Kalady

Managing Director

PMI India


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Flow of presentation

State of large projects in India

Reasons for cost & time over runs

Introduction to StandardsWhy

Benefits

Global Standards in ProjectManagement

About PMI


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State of Project Management: India

Huge time and cost overruns in projects According to the Ministry of Statistics and Programme Implementation,

out of a total of 866 central government projects, each costing more thanUS$ 5 mn or more, 297 projects over 12 ministries are running behind

schedule (October December 2006) More than US$ 61 Bn will be spent additionally because of delay Delays of up to over 16 years have been reported in some extreme

cases

The 11th Five year plan envisages investment in infrastructure to thetune of Rs. 2000K Cr (USD 500 Billion)

Most projects were/are managed by in-house team of engineers,

architects and accountants capabilities developed through experience Companies have in-house training for project management Experience rather than academic qualification is important

Lack of structured approach to project management


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Economic factors

Rising prices may hit $800 bn in projectsInvestments of around Rs34.25 trillion ($800 billion) Rs34.25 trillion

($800 billion) may be affected in the short term by inflation that is at

a 13-year high, rising cost of funds and high commodity prices,

according to a report by Projects Today, a Mumbai based corporateresearch company that runs an online database on project

investments.
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On time within budget project

Konkan Railway

Bangalore International airport

Delhi Metro

Purulia Pumped Storage (Hydel) Power

Project

Source : Projects Today


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Reasons World Bank report

Inherently risky due to long planninghorizons and complex interfaces.

Technology is often not standard. Decision making and planning are often

multi-actor processes with conflicting

interests. Often the project scope or ambition levelwill change significantly over time.

Large infrastructure projects" Costs per project from around a hundred million to several billion dollars.


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Reasons (contd)

Multi-national

Cross-functional

Changing market

conditions

Higher stakes and

compressed schedules


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As on June 08 : 25,399 projects in various

stages of implementation, entailing a total

investment of Rs.34,25,428 Cr (USD 878 Billion).

Of these, 10,955 projects worth Rs.14,58,988 Crwere under execution.

The need is for consistent, predictable

& repeatable results

Source : ProjectsToday 31st

Quarterly Investment Survey


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For consistent, predictable,

and repeatable outcomes

project management supports:

Properplanning

Refinedresource

projections

Structured

performance

measurement

Expanded

communication

Improved

risk

management


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Global Standardsin

Project Management


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What are Standards?

A simpler way of describing standards is

common solutions to repetitive problems.


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Why Standards?

Without standards, the

world would not be a

safe placebridgeswould collapse, food

would be tainted and

automotive airbagswould not function.


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64% 65%

10%

56% 57%

12%

46%48%

12%

38%41%

12%

0%

10%

20%

30%

40%

50%

60%

70%

On time Within budget Terminated

Standardized practices used

throughout organization

Used by most

Used by some

Not used

Project Outcomes by Level of Standardization

Standardized PM Practices=

Better Project Performance


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PMI Standards


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PMI Standards

THEME TITLEProjects A Guide to the Project Management Body of Knowledge

(PMBOK

Guide)

Construction Extension to the PMBOKGuide

Practice Standard for Project Risk Management

PS for Project Estimation

PS for SchedulingPS for Project Configuration

Government Extension to the PMBOK

Guide

PS for Work Breakdown Structures

Programs The Standard for Program Management

People Project Manager Competency Development Framework

Organizations Organizational Project Management Maturity Model(OPM3)

The Standard for Portfolio Management Second Edition

Profession Unified Project Management Lexicon

(While not a standard, this is released in conjunction with the standards listed above)


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Profession enablers

Certification program

PMP

CAPM

PgMP

PMI Risk Management Professional (PMI-RMP)SM

PMI Scheduling Professional (PMI-SP)SM


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About PMI

Largest non-profit project managementprofessional association in the world

Founded in 1969

258 chartered and potential PMI Chapters (7Chapters in India)

31 Special Interest Groups (SIGs)

269,458 members in 171 countries (12500 in India) Total Active PMPs 278,618 (13,100 in India)

Over 1 Million PMBOK Guide in circulation

India office launched in March this year


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Worldwide, organizationswill embrace, value and

utilize project management,

and attribute their success to it.

PMIs Envisioned Goal

2008 Project Management Institute, Inc. All rights reserved. Not for further distribution without the express

permission of PMI. PMI, the PMI logo, PMP, and Making project management indispensable for business resultsare registered marks of Project Management Institute Inc. For a comprehensive list of PMI marks, contact the PMI

Legal Department.


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19

Thank you.

For more information please contact:

[email protected]

Making project management indispensable for business results.


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Value of Project Management

Establishes Accountability Appointing of a Leader with responsibility & accountability. Responsible for both the

completion and the success of the project. Assists in ensuring projects stays on track andon schedule.

Managing Cost

Effective project management provides cost containment helps organization save moneyon the project and ensure money remains available for other projects.

Ensures On-time Delivery The value of project management is that it provides a means for setting specific goals

within realistic timeframes.

Provides a Conduit for Communication When the process of project management is applied to an organization it sets up an

established system for communication between team members, project managers andclients.

Prevents/Reduces Scope Creep Successful project management controls the flow of a project and keeps team members

focused on and working within the original scope of work as the project develops .

Mitigate Risk Project management process helps identify potential risks or threats to the success of the

project are identified early.


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12_creating sustainable impact through project management

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