Project Management

Project ManagementBy Ms. Sarah KazmiMBA,Delhi School Of EconomicsTopics to be covered1.1 Introduction1.2 Concept of project and project management1.3 Characteristics of project1.4 Project Family tree1.5 Classification of Project1.7 Project life cycle1.8 Project report1.9 Project appraisal1.10 Tools and techniques for project managementIntroductionEconomic developmentPlanning Non routineTaj and pyramidThough project management is in the process of getting evolved as a separatebranch of study, projects are not new to the earth. One of the seven wonders of theworld, the pyramids date back to 2650 B.C. which stand as the hall mark of Egyptiancivilization. The period of construction of the Taj Mahal, another wonder of the worldis reported to be during 1626-1648 A.D. It is reported that about 20,000 persons workedfor nearly 22 years to complete this spectacular structure, which stands today asmankinds proudest creation.3A ProjectA unique process, consisting of a set of coordinated and controlled activities with start and finish dates, undertaken to achieve an objective conforming to specific requirements including constraints of time, cost and resources. (Lockyer and Gordon, 1996)

A ProjectUnique processCoordinated and controlled activitiesStart and finish datesTo achieve an objectiveSpecific requirementsConstraints of time, cost and resources

CHARACTERISTICS OF PROJECTObjectivesLife cycle UniquenessTeam WorkComplexityRisk and uncertaintyCustomer specific natureChangeOptimalityPROJECT FAMILY TREECLASSIFICATION OF PROJECTSBusiness Projects:Developmental Projects:Technical Projects:Small, medium and large budget Projects;National and International Projects;Short term and long term projects

Business Projects:Business projects include anything that move the business strategy in a forward direction. This can include something as basic as establishing a location for a certain business process, or scheduling production or schedules related to business processes.Developmental Projects:They are usually a big part of researching and developing a new aspect of your business. This can involve the development of a new product or trying to migrate an existing product into new markets. Since in the developmental phase of any project there are not many immediate tangibles, managing these projects involves a lot of foresight and goal setting from the project manager. It is up to the project manager to give a clear vision for the road ahead for any developmental project.Technical Projects:These are among the most complex in any business environment and are usually closely married to Information Technology (IT) processes. Many of these projects are aimed at improving the IT infrastructure supporting the entire organization. IT-based projects are usually carried out in five key stages: initiation, planning, executing, controlling and closing, according to the Project Management Institute. The bulk of these projects are usually in partnership with an IT project manager and the Chief Information Officer (CIO).

8Product Life Cycle

The principalstages in the life of a project are :

Identification Initial formulation Evaluation (selection or rejection) Final formulation (or selection) Implementation Completion and operationIdentificationSurveysIndepth StudiesSocio-economic environment studies Past and Future trendsInitial FormulationCrystalise ObjectivesDecision making criteriaBroad lay out for evaluationDetailed Planning

Evaluation or Project Appraisalfeasibility studies : Commercial viability Economic feasibility Financial feasibility Technical feasibility ManagementFormulationGeneral information Project description Market potential Capital costs and sources of finance Assessment of working capital requirement Other financial aspect Economic and social variables.As per the constraints14Project ImplementationProject CompletionPROJECT REPORTContents of Project Report General Information Promoter Location Land and Building Plant and Machinery Production process Utilities Transport and communication Raw material Manpower Product MarketPROJECT APPRAISALMethod of Project AppraisalEconomic analysis2 Financial analysis3 Market analysis4 Technical analysis5 Managerial competence6 Ecological analysisEconomic AnalysisRequirements for raw material Level of capacity utilization Anticipated sales Anticipated expenses Proposed profits Estimated demandFinancial AnalysisCost of capital Means of finance Estimates of sales and production Cost of production Working capital requirement and its financing Estimates of working results Break-even point Projected cash flow Projected balance sheet.Market AnalysisOpinion polling methodLife Cycle Segmentation AnalysisIntroduction,Growth, Maturity, Saturation and Decline.Technical AnalysisAvailability of Land and site Availability of Water Power, transport, communication facilities. Availability of servicing facilities like machine shop, electric repair shop etc.Coping with anti pollution lawAvailability of work forceAvailability of required raw material as per quantity and quality.Management CompetenceEcological AnalysisEnvironmental damageRestoration measureTechniques and toolsProject selection techniques(a) Cost benefit analysis and(b) Risk and sensitivity analysis2. Project execution planning techniques(a) Work breakdown structure (WBS)(b) project execution plan (PEP)(c) Project responsibility matrix and(d) Project management manual