PROJECT MANAGEMENT

PROJECT MANAGEMENTDr. Arun MaityAssociate ProfessorBITS OFF- CAMPUS CENTREKOLKATA

INTRODUCTION TO PROJECT MANAGEMENTEVOLUTION AND APPLICATIONPROJECTPROJECT MANAGEMENTNEED AND IMPORTANCE OF PROJECT MANAGEMENTPROJECT LIFE CYCLEPROJECT MANAGERINTERPERSONAL AND DECISION MAKING SKILLSPROJECT INTEGRATIONEVOLUTION AND APPLICATIONDEVELOPED IN THE LATE 1950s TO AID PLANNING AND SCHEDULING OF LARGE PROJECTSCONSTRUCTION INDUSTRYU.S. DEPARTMENT OF DEFENSE AUTOMAKERS TOYOTA, NISSAN, BMWINFORMATION TECHNOLOGYSTEEL INDUSTRYFERTILISER INDUSTRY

PROJECTA PROJECT IS A COMPLEX , NON ROUTINE, ONE-TIME EFFORT LIMITED BY TIME, BUDGET, RESOURCES AND PERFORMANCE SPECIFICATIONS DESIGNED TO MEET CUSTOMERS NEEDSA PROJECT CONSISTS OF SERIES OF ACTIVITIES AND TASKS THATHAVE A SPECIFIC OBJECTIVE TO BE COMPLETED WITHIN CERTAIN SPECIFICATIONSHAVE DEFINITE START AND END DATESHAVE FUNDING LIMITSCONSUME RESOURCESMEET AND EXCEED CUSTOMERS NEEDS

PROJECT MANAGEMENTPROJECT MANAGEMENT INVOLVESPROJECT PLANNINGPROJECT SCHEDULINGPROJECT MONITORING & CONTROLPROJECT PLANNINGDEFINITION OF WORK REQUIREMENTSDEFINITION OF QUANTITY OF WORKDEFINITION OF RESOURCES NEEDEDPROJECT SCHEDULINGLIST OF ACTIVITIES TO BE COMPLETEDACTIVITY RELATIONSHIPSGANTT CHARTSCRITICAL, NON-CRITICAL ACTIVITIES, MILESTONESRESOURCE LOADING, LEVELLING, ALLOCATIONPROJECT MONITORING & CONTROLTRACKING PROGRESSCOMPARINGANALYZING IMPACTMAKING ADJUSTMENTSTIME, COST, QUALITY CONTROL

NEED AND IMPORTANCE OF PROJECT MANAGEMENTABILITY TO PLAN, IMPLEMENT AND MANAGE ACTIVITIESRESULT-ORIENTED MANAGEMENT STYLESCOMPRESSION OF PRODUCT LIFE CYCLESGLOBAL COMPETITIONKNOWLEDGE EXPLOSIONCORPORATE DOWNSIZINGINCREASED CUSTOMER FOCUSMULTI-PROJECT ENVIRONMENTCOMPRESSION OF PRODUCT LIFE CYCLESHORTENING OF PRODUCT LIFE CYCLETIME TO MARKET FOR NEW PRODUCT WITH SHORTER LIFE CYCLESSIX MONTH PROJECT DELAY CAN RESULT IN 33% LOSS IN PRODUCT REVENUE SHAREGLOBAL COMPETITIONCHEAPER AND BETTER PRODUCTS AND SERVICESUSE OF QUALITY MANAGEMENT PRACTICES AND CONTINUOUS IMPROVEMENT

KNOWLEDGE EXPLOSIONINCREASE COMPLEXITY OF PROJECTS BECAUSE OF ADVANCED TECHNOLOGIESCOMPLEXITY IN MATERIALS, SPECIFICATIONS, CODES, AESTHETICS, EQUIPMENT AND REQUIRED SPECIALISTSCORPORATE DOWNSIZINGNECESSITY OF DOWNSIZING OR RIGHTSIZINGNECESSITY OF CORE COMPETENCIES FOR SURVIVALPROJECT MGMT REPLACING MIDDLE MANAGEMENTOUTSOURCING OF SIGNIFICANT SEGMENTS OF PROJECT WORKINCREASED CUSTOMER FOCUSCUSTOMER : SATISFACTION, DELIGHT, SURPRISENEEDS CUSTOMIZED PRODUCTS AND SERVICESMULTIPROJECT ENVIRONMENTSHARING AND PRIORITIZING RESOURCESRISK MANAGEMENTPROJECT MANAGEMENT IS BEST SUITED FOR BUSINESSES REQUIRING ACCOUNTABILITY, FLEXIBILITY, INNOVATION, SPEED AND CONTINUOUS IMPROVEMENTPROJECT DRIVEN ORGANIZATIONALL WORK IS CHARACTERIZED THROUGH PROJECTS WITH EACH PROJECT AS A SEPARATE COST CENTER HAVING ITS OWN PROFIT AND LOSS STATEMENT

NON-PROJECT DRIVEN ORGANIZATIONPROJECTS EXIST MERELY TO SUPPORT THE PRODUCT LINES OR FUNCTIONAL LINES PROFIT AND LOSS ARE MEASURED ON VERTICAL OR HORIZONTAL LINESPRIORITY RESOURCES ARE ASSIGNED TO REVENUE PRODUCING FUNCTIONAL LINE ACTIVITIES RATHER THAN THE PROJECTSLIMITATIONS OF NON-PROJECT DRIVEN ORGANIZATIONSPROJECTS MAY BE FEW AND FAR BETWEENNOT ALL PROJECTS HAVE THE SAME PROJECT MANAGEMENT REQUIREMENTSEXECUTIVES DO NOT HAVE SUFFICIENT TIME TO MANAGE PROJECTSPROJECTS TEND TO BE DELAYED BECAUSE APPROVALS MOST OFTEN FOLLOW VERTICAL CHAIN OF COMMANDPROJECT STAFFING IS ON A LOCAL BASISHEAVY DEPENDENCE UPON SUBCONTRACTORS AND OUTSIDE AGENCIES FOR PROJECT MANAGEMENT EXPERTISE

PROJECT LIFE CYCLEDEFININGGOALSSPECIFICATIONSTASKSRESPONSIBILITIESPLANNINGSCHEDULESBUDGETSRESOURCESRISKSSTAFFINGEXECUTINGSTATUS REPORTSCHANGES / REVISIONSQUALITYFORECASTSDELIVERINGDELIVERING THE PROJECT PRODUCT TO THE CUSTOMERREDEPLOYING PROJECT RESOURCESTRAIN CUSTOMERTRANSFER DOCUMENTSRELEASE STAFFLESSONS LEARNED

LIFE CYCLE PHASESENGINEERINGSTART UPDEFINITIONMAINTERMINATIONMANUFACTURINGFORMATIONBUILDINGPRODUCTIONPHASE-OUTFINAL AUDIT

SOFTWARE DEVELOPMENTCONCEPTUALPLANNINGDEFINITION AND DESIGNCODEINTEGRATION / TESTINGCONVERSIONMAINTENANCE

CONSTRUCTIONPLANNING, DATA COLLECTION AND PROCEDURESSTUDIES AND BASIC ENGINEERINGMAJOR REVIEWDETAIL ENGINEERINGCONSTRUCTIONTESTING AND COMMISSIONINGNEW PRODUCT INTRODUCTIONFEASIBILITY STUDYMARKET SURVEYCOST ESTIMATIONTECHNOLOGY ASSESSMENTPRODUCT DESIGN AND DEVELOPMENTFINANCINGPROCESS PLANNINGQUALITY SPECIFICATIONS

PERSONNEL ASSIGNMENT AND TRAININGOPERATIONS PLANNINGFACILITIES LAYOUTSYSTEM INTEGRATIONPRODUCTION SCHEDULINGPRODUCTION RUNPRODUCT SHIPMENT

ROLE OF PROJECT MANAGERPROVIDE DIRECTION, COORDINATION AND INTEGRATION TO THE PROJECT TEAMMANAGE TEMPORARY, NON-REPETITIVE ACTIVITIES TO COMPLETE A FIXED LIFE PROJECTMEET THE CHALLENGES OF EACH PHASE OF THE PROJECT LIFE CYCLEMANAGE THE TENSION BETWEEN CUSTOMER EXPECTATIONS AND WHAT IS FEASIBLE OR REASONABLEWORK WITH VENDORS, SUPPLIERS, SUBCONTRACTORSRESPONSIBLE FOR PERFORMANCEENSURE APPROPRIATE TRADE-OFFS BETWEEN TIME, COST AND PERFORMANCE REQUIREMENTSINDUCING THE RIGHT PEOPLE AT THE RIGHT TIMETO ADDRESS RIGHT ISSUES AND MAKE RIGHT DECISIONS

Categories of InteractionsSuperiors or BossesColleagues or PeersSubordinates or Juniors

Dealing with each category requires definite skills which have to be mastered if one is to rise in the organizational hierarchyInteraction with SuperiorsBoss is always the boss, though he may not be always rightThere may be serious differences of opinion with the boss, but ultimately, the will or opinion or decision of the boss will prevailBoss is more accountable than the subordinates and will have to answer the consequences of his decisions and actions

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 bossIf the boss chooses to ignore suggestions or overrule decisions taken by the subordinate, he does so at his own discretion and riskCertain 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 organizationSuch 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 What the boss forgets is that credit for achievement or good performance first goes to the boss for his ability to get work doneThe subordinate only gets a part of the credit received by the bossBoss has greater access to informationBy virtue of position in the organization, the boss has greater access to vital information affecting the well-being of the organizationSome 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 subordinateBoss is more BusyResponsibilities of the boss are considerably greater than those of the subordinatesThe time at his disposal for dealing with particular problem is naturally less than the time available with the subordinateTherefore 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 recommendationBoss is under greater pressureBy virtue of his position and responsibility, boss is under greater pressure to meet targets and deadlinesSome pressure is bound to get transferred down to lower levels resulting in FIRINGFiring is a part of the game and has to be accepted as suchOne must not be too sensitive to such firings and must develop a somewhat thick skin in such mattersOn the other hand, the skin should not be so thick that firing has no effect at allOn occasion, unpleasant talk may appear to be entirely unreasonableOutcome of firing of the juniors, who, in turn, may take it to out on their wives and childrenInteraction with ColleaguesIndividuals who are more or less at the same level in the hierarchyEngineers performing shift duty and reporting to ManagerDepartment heads reporting to the Production Manager Functional Heads reporting to Unit HeadProject Engineers reporting to Project ManagersProject Managers reporting of Head, ProjectsFeeling of cordiality, cooperation, mutual trust and atmosphere of healthy competitionThis is easier said than donePolitics is an integral feature of any organization, as each individual tries to catch the eye of the boss and advance his own cause for promotionIf the competition leads to confrontation and undermining the position of others, working is bound to sufferPersonal equations can lead to formation of groups that adversely affect organizational working

Interaction with SubordinatesAn 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 directionDelegation: A successful manager once said, I never do anything which I can get done by a subordinateThis 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 issuesDelegation 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 subordinatesIt is easy to get work done if subordinates hold the boss in esteem and respectSound knowledge and thorough understanding of plant or process are vitally importantBoss should be capable of doing at least 80% of the work done by each one of its subordinates20% of his own work should be such that none of his subordinates can do so effectivelyIssue clear instructionsInstructions have no meaning if they are vague and likely to be misinterpretedSome managers are in the habit of deliberately leaving instructions vague and then pulling juniors for not acting one way or the otherDescend to the level of subordinatesBoss must express himself in a language which the subordinates can understandDefine JurisdictionAreas wherein the subordinate is free to take his own decisions according to established norms and guidelinesBoss will not be troubled with low level decisionsSubordinate 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 approvalCategorize Subordinates1. 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 GUIDELINESSubordinate Problems are Ultimately Bosses ProblemsANY DEFICIENCY IN WORKING HAVE TO BE REMOVED BY CONCERTED EFFORTBOSS CANNOT GET AWAY BY SAYING THAT THESE PROBLEMS HAVE TO BE TACKLED BY JUNIOR STAFF ALONEBOSS HAS TO GET INVOLVED AND ISSUE NECESSARY DIRECTIONS TO SOLVE THE PROBLEMSIT IS THE BOSS WHO WILL HAVE TO ANSWER FOR THE WORKING OF ALL SECTIONS UNDER HIS CHARGEStrive to become RedundantEVERY 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 / MANAGERTrain supervisor to take your placeADVANCEMENT IS EASY IF THERE IS SOMEONE WHO CAN ASSUME CHARGE OF THE VACATED POSITIONMANAGER SHOULD TRAIN HIS SUBORDINATES ADEQUATELY, NOT ONLY TO REDUCE HIS WORKLOAD BUT ALSO TO FACILITATE HIS OWN ADVANCEMENT AT THE APPROPRIATE TIME 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 AND TRAIN SUBORIDNATES FOR HIGHER RESPONSIBILITESSIMULTANEOUSLY, THE BOSS RETURNS REFERESHED AFTER LEAVE TO DO GREATER JUSTICE TO HIS RESPONSIBILITIES Be Fair and Appear to be FairJUSTICE MUST NOT ONLY BE DONE BUT SEEN TO BE DONEBOSS MUST BE FAIR, BUT ALSO APPEAR TO BE FAIR TO HIS SUBORDINATESALL SUBORIDNATES SHOULD BE TREATED ON MERITS AS FAR AS DISTRIBUTION OF ASSIGNMENTS AND PROSPECTS FOR ADVANCEMENT ARE CONCERNEDIT IS NATURAL TO DEVELOP LIKING OR DISLIKE FOR VARIOUS SUBORDINATESONE MUST NOT GET CARRIED AWAY BY SUBJECTIVE CRITERIAFRIENDSHIP AND PERSONAL RELATIONS WITH SUBORDINATES SHOULD NOT ACT AS OBSTACLES TO ADVANCEMENTTHE RECOMMENDED PERSON SHOULD REDUCE THE WORKLOAD OF THE BOSS AND MAKE HIS LIFE EASIER DECISION MAKINGMOST PROBLEMS ADMIT MULTIPLE SOLUTIONSA CONCIOUS AND DELIBERATE DECISION HAS TO BE TAKEN TO PURSUE A PARTICULAR COURSE OF ACTIONIT IS UNLIKELY THAT ALL DECISIONS TAKEN BY A MANAGER WOULD PROVE TO BE CORRECT IN THE LONG RUNSUCCESSFUL MANAGERS ARE THOSE WITH HIGH PERCENTAGE OF CORRECT DECISIONSONCE A DECISION IS TAKEN, THE MATTER DOES NOT ENDDECISION SHOULD BE MONITORED TO ASCERTAIN WHETHER THE DESIRED RESULTS ARE BEING OBTAINED OR NOTIN CASE OF DEVIATIONS FROM THE EXPECTED OUTCOME, THERE SHOULD BE NO HESITATION IN REVERSING THE DECISION BEFORE THE SITUATION GETS OUT OF HANDDECISIONS SHOULD BE QUICK AND TIMELYPROCASTINATION LEAD TO DISASTROUS CONSEQUENCES AND AFFECTS ORGANIZATIONAL EFFICIENCYNORMS AND GUIDELINES SHOULD BE ESTABLISHED SO THAT DECISION ARE TAKEN AT THE LOWEST POSSIBLE LEVELSUFFICIENT AUTHORITY SHOULD BE DELEGATED TO THE JUNIOR LEVELS -ACTIVE INVOLVEMENT OF PERSONNEL, GOOD MORALE AND FREEDOM OF BOSS FROM ROUTINE DECISIONSINTEGRATED PROJECT MANAGEMENTFOCUSES ALL PROJECT EFFORT TOWARD THE STRATEGIC PLAN OF THE ORGANIZATIONREINFORCES MASTERY OF PROJECT MANAGEMENT AND INTER-PERSONAL SKILLSMAY REQUIRE RENGINEERING OF BUSINEESS MANAGEMENT PROCESSINTEGRATION OF PROJECTS WITH STRATEGIC PLAN OF THE ORGANIZATIONINTEGRATION WITHIN THE PROCESS OF MANAGING ACTUAL PROJECTS

INTEGRATION OF PROJECTS WITH STRATEGIC PLANSNEED: STRATEGIC PLANS ARE MADE BY ONE GROUP OF MANAGERS, PROJECTS SELECTED BY OTHER AND IMPLEMENTED BY ANOTHER

INDEPENDENT DECISIONS LEAD TO CONFLICTS, CONFUSION ETC. ON UNSATISFIED CUSTOMERS

RESOURCES ARE WASTED IN NON-VALUE ADDED ACTIVITIES/PROJECTSCHARACTERISTICSALL THE PARTS ARE INTER-RELATED. A CHANGE IN ONE OF THE PARTS WILL INFLUENCE THE WHOLEVISION, MISSION, OBJECTIVES AND STRATEGIES NEED TO BE PREPARED CONSIDERING INTERNAL AND EXTERNAL ENVIRONMENTAL FACTORSEXTERNAL FACTORS: POLITICAL, SOCIAL, ECONOMIC AND TECHNOLOGICALINTERNAL FACTORS: MANAGEMENT, FACILITIES, CORE COMPETENCIES, FINANCIAL CONDITIONSIMPLEMENTING STRATEGIES THROUGH PROJECTSSELECTING PROPOSALS THAT MAKE LARGEST AND MOST BALANCED CONTRIBUTION TO THE OBJECTIVES AND STRATEGIES PRIORITIZING PROJECTS SO THAT RESOURCES ARE ALLOCATED TO THE RIGHT PROJECTSINTEGRATION WITHIN THE PROCESS OF MANAGING ACTUAL PROJECTS TECHNICAL SIDE OF THE MANAGEMENT PROCESSPLANNING, SCHEDULING, CONTROLLINGSOCIO-CULTURAL SIDE OF THE PROJECT MANAGEMENT PROCESSSHAPING A PROJECT CULTURE THAT STIMULATES TEAMWORK AND HIGH LEVELS OF PERSONAL MOTIVATIONPROBLEM SOLVING APPROACHEFFECTIVE COMMUNICATION SESSIONS WITH STAKEHOLDERS