Project -Meaning and Definition

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<ul><li><p>7/28/2019 Project -Meaning and Definition</p><p> 1/40</p><p>Project Management-Meaning anddefinition</p></li><li><p>7/28/2019 Project -Meaning and Definition</p><p> 2/40</p><p> A project is a duty or task which has a fixed deadline to create aunique product or service.</p><p> According to a British Standard, a project is a unique set ofcoordinated activities, with definite starting and finishing points,</p><p>undertaken by an individual or organization to meet specific</p><p>objectives within the defined schedule, cost and performance</p><p>parameters.</p><p> A project must have:- Every project possesses a group of activities, which are unique in</p><p>nature to the organization handling the activities</p><p> Every project aims at achieving a specific objective or performing a</p><p>particular task. Generally, the objective and tasks vary fro project to</p><p>project. The activities of a project have to be performed in a sequence to</p><p>deliver the product to the customers. For example, it is necessary to</p><p>plan the activities before they are implemented.</p></li><li><p>7/28/2019 Project -Meaning and Definition</p><p> 3/40</p><p> Aproject has a specific starting and completion date. The</p><p>deadlines of project are either decided by the individualwho handles the project or by the project client.</p><p> The various activities of a project are interrelated,</p><p>because one activity is the input for another activity. Forexample, in the project of a building or a shopping mall,</p><p>the activity of creating the plan for constructing the all</p><p>works as an input or the activity of constructing the mall</p></li><li><p>7/28/2019 Project -Meaning and Definition</p><p> 4/40</p><p>Types of Projects</p><p>Basis Category I Category II Category III Category IV</p><p>Time period 18 months or</p><p>more</p><p>Bet 9-18 months Bet 3-9 months 3 months or less</p><p>Risk level The level is high The level of risk</p><p>is medium</p><p>Level of risk is</p><p>low</p><p>Very low</p><p>Level of</p><p>complexity</p><p>Is high Is medium low Very low</p><p>Probability of</p><p>problems</p><p>100% certain 50% likely 10% low No risk</p></li><li><p>7/28/2019 Project -Meaning and Definition</p><p> 5/40</p><p>Types of projects</p><p> Construction projects:- these types of projects are undertaken to construct</p><p>residential buildings, industrial and highways. It requires human effort and</p><p>various mechanical components for the construction.</p><p> Research projects:-these type of projects are undertaken to acquire</p><p>knowledge about a specific subject or an object. The acquired knowledge canbe presented in the form of models. Patterns and patents. For example,</p><p>projects undertaken to develop the model of Indian economy and the</p><p>varieties of rice.</p><p> Re engineering projects:- this type of project is undertaken to review and</p><p>carry out the desired changes in an existing system or a process. For</p><p>example, the re engineering projects undertaken to renumber the telephonesystem in UK</p></li><li><p>7/28/2019 Project -Meaning and Definition</p><p> 6/40</p><p> Procurement Projects:-this type of project is undertaken to contractually</p><p>establish relationship with the selected supplier for a defined product or</p><p>service. For example, projects undertaken for outsourcing a complete</p><p>business function ( such as IT) and for imposing the new rules and measures</p><p>on a regulated industry.</p><p> Business Implementation Projects:-This type of project is undertaken to</p><p>produce an operationally effective process. The value generated by the</p><p>project is embedded in the process. For example, the business</p><p>implementation projects undertaken to install e commerce.</p></li><li><p>7/28/2019 Project -Meaning and Definition</p><p> 7/40</p><p>Steps in the Identification of projects</p><p> Setting the objectives and goals of the project.</p><p> Recommending various methods to achieve the objectives of the</p><p>project</p><p> Identifying the target groups benefitted by the project</p><p> Setting the priority of the project in the context of the urgency of the</p><p>work</p><p> Considering the adequacy of the executing agency and the active</p><p>participation of the people involved in the project</p><p> Estimating the approximate project cost, based on the conceptualdesign and suggesting the various cost alternatives.</p><p> Making preliminary assessment of the feasibility of the project and its</p><p>impact on the organization, its specific departments or sections.</p></li><li><p>7/28/2019 Project -Meaning and Definition</p><p> 8/40</p><p>Importance of Projects</p><p> Planning and organizing the work: Projects involve planning and organizing</p><p>the entire work. Planning refers to deciding in advance the</p><p>equipments,finances,raw materials and processes required for completion of</p><p>the project. Organizing refers to specifying the work in a systematic manner.</p><p> Efficient use of resources:- projects also result in the efficient use of</p><p>resources like time, money, people ,material and energy. It is only possible ifplanning and organizing projects is done effectively.</p><p> Helps in assessing and minimizing risk:-project formulation involves</p><p>environmental, technical and financial appraisal. This helps to avoid various</p><p>risks such as shortage of finance, change in consumer preferences etc.</p><p> Proper assignment of task:-projects involve planning of work, which states in</p><p>advance the tasks necessary for completion of the project. It also results in</p><p>the proper and efficient execution of tasks.</p><p> Reduces chances of failure:- project also reduces chances of failure because</p><p>the project manager helps to maintain mutual interaction among the various</p><p>interacting parties.</p></li><li><p>7/28/2019 Project -Meaning and Definition</p><p> 9/40</p><p>Factors Influencing a project The main objective of a project or service to a client within a particular</p><p>span of time and budget. The success of a project relies on variousfactors such as quality of the product and availability of resources, The</p><p>following are the factors that affect a project.</p><p> Scope:-It explains all the activities that you need to perform in a</p><p>project. The scope of the project consists of target results and the</p><p>financial and human resources required to complete the project. Quality:-it is necessary for a project to satisfy the quality requirements</p><p>at levels related to the product quality and the process quality.</p><p> Time:-It is one of the most important constraints, in which a projct has</p><p>to be completed. The client decides the time limit of the project and it</p><p>is essential to complete the project within the allotted time.</p></li><li><p>7/28/2019 Project -Meaning and Definition</p><p> 10/40</p></li><li><p>7/28/2019 Project -Meaning and Definition</p><p> 11/40</p><p>Lifecycle of a living organism</p></li><li><p>7/28/2019 Project -Meaning and Definition</p><p> 12/40</p><p>Phases of a system1. The conception/formation phase</p><p> Involves the preliminary evaluation of an idea. This includes recognition andacceptance of a problem or a need analyzing the requirement and finding</p><p>ways to fulfill the need or solve the problems . Steps involved in this are</p><p> Determine the existing need or problem, or potential deficiencies of the</p><p>existing system</p><p> Examine alternate ways of meeting the need or of solving the problem.</p><p> Identify the approximate resources(human and others) required for the</p><p>system</p><p> Establish the basic concept of the system</p><p> Prepare initial estimates of time, cost and performance of the conceived</p><p>system</p><p> Determine the initial feasibility and practicability(technical , economic andenvironmental) and</p><p> Establish a first-cut system organization.</p></li><li><p>7/28/2019 Project -Meaning and Definition</p><p> 13/40</p><p>The definition/build up phase</p><p>2 the system is now investigated in greater detail. Basically ,it would be a</p><p>refinement of the elements described in the conception phase. All the sub-systems of the main system are defined and examined. This requires a firm</p><p>identification of the resources required and the establishment of time, cost</p><p>and performance parameters. It also includes the initial preparation of all thedocuments necessary to support the system such as policies,procedures,bid</p><p>documents, job descriptions ,budget and funding papers. The specific stepsin the definition phase of a system are</p><p> Determination of time, cost and performance requirement of the system</p><p> Identification of the estimates of human and non human resources required</p><p> Determination of the necessary sub systems , including the detailed plans</p><p>required to support the main system</p><p> To define the inter-system and intra-system interfaces: and</p><p> Identification and preparation of the documents required to support the</p><p>system such as policies, procedures, bid documents, job descriptions .</p></li><li><p>7/28/2019 Project -Meaning and Definition</p><p> 14/40</p><p>3 Acquisition/production phase</p><p> This is so called because at the end of the phase the user acquires the system.</p><p>This phase also referred to as the production phase as the system is produced.</p><p> The efforts are now focused on standardization,testing,and evaluation of an</p><p>alternative detailed design and the production based on the acceptableproduct design.</p><p> The production phase of a system and of a project are similar to each other.</p><p>Production involves either production of a single item or mass production.</p><p> Project management oversees and controls resources, motivates workrs and</p><p>reports about the progress to the user of the system.</p><p> The specific tasks and activities during the acquisition/production phase</p><p>include:-</p></li><li><p>7/28/2019 Project -Meaning and Definition</p><p> 15/40</p><p> Update the detailed plans and specification and the definition of phase</p><p> Identify detailed resource requirements and managerial procedures-</p><p>inventory, scheduling,accounting,book keeping etc</p><p> Begin the production, construction and installation of the actual system.</p><p> Verify the system specifications with the performance</p><p> Prepare the policy and procedural documents and</p><p> Develop plans to hand-over the system to the user , and to provide</p><p>supporting services, such as training during the operational phase</p></li><li><p>7/28/2019 Project -Meaning and Definition</p><p> 16/40</p><p>4 The Operation Phase Here the user takes over the system who integrates its product/service into</p><p>the existing organizational system.</p><p> The user takes over, operates the system and evaluates its performanceaccording to its ability to meet the need or solve the problem for which it was</p><p>designed.</p><p> The operation phase also includes the provision for feedback to the system</p><p>planner/designer, so that the system be improved. The specific activities and</p><p>steps in the operation phase of a system are as follows.</p><p> Use of the system by the client/customer</p><p> Integrate the products/services into the existing organizational system.</p><p> Evaluate the system performance vis-a vis the specifications (made in the</p><p>definition of phase) with respect to technical, economical, social and</p><p>environmental parameters..</p><p> Provide feedback to the system designer/planner about the efficiency and</p><p>effectiveness of the system.</p><p> Provide training support and maintenance services.</p></li><li><p>7/28/2019 Project -Meaning and Definition</p><p> 17/40</p><p>5. The divestment/termination phase</p><p> This is the last phase of the system and many times it may overlap with the</p><p>preceding operations phase. The senior management of the organization will</p><p>now be looking at the means of divestment and reallocation of resources.</p><p> This figure corresponds to the phase out and termination of a project.Similarly, compared to the technology/product life cycle divestment</p><p>corresponds to the deterioration and death phases of the technology or the</p><p>product.</p><p> As one product out of several in an organization enters the deterioration and</p><p>death phase of its lifecycle, other new products or projects must be conceivedand developed</p></li><li><p>7/28/2019 Project -Meaning and Definition</p><p> 18/40</p></li><li><p>7/28/2019 Project -Meaning and Definition</p><p> 19/40</p><p>Strategic Management</p><p>and Project Selection</p><p> Maturity of Project Management</p><p> Criteria for PS Models</p><p> Nature of PS Models</p><p> Types of PS Models</p><p> Uncertainty Analysis and Risk Management</p><p> Information Base for PS Models</p><p> Project Portfolio Process (PPP)</p><p> Project Proposal</p></li><li><p>7/28/2019 Project -Meaning and Definition</p><p> 20/40</p><p>Overview of PS Process</p><p> Project Management Office (PMO): Aligningcorporate needs and project goals</p><p> Project Selection: Chose candidate project using</p><p>Evaluation Criteria Dealing with Uncertainty: Risk Analysis</p><p> Strategically selecting best Projects: ProjectPortfolio Process (PPP)</p><p> Locking up the deal: Writing a Project Proposal</p></li><li><p>7/28/2019 Project -Meaning and Definition</p><p> 21/40</p><p>Project Management Maturity</p><p>Levels</p><p> Ad-hoc (essentially disorganized)</p><p> Abbreviated (some processes exist) Organized (standardized processes)</p><p> Managed (measured processes)</p><p> Adaptive (continuous improvement)</p></li><li><p>7/28/2019 Project -Meaning and Definition</p><p> 22/40</p><p>PS Models</p><p> Idealized view of reality</p><p> Representing the STRUCTURE of the</p><p>problem, not the detail</p><p> Deterministic or stochastic</p></li><li><p>7/28/2019 Project -Meaning and Definition</p><p> 23/40</p><p>Criteria for Project Selection</p><p>models</p><p> Realism (technical-, resource-, market-risk)</p><p> Capability (adequately sophisticated)</p><p> Flexibility (valid results over large domain) Ease of Use (no expert needed to run model)</p><p> Cost (much less than project benefit)</p><p> Easy Computerization (use standard software)</p></li><li><p>7/28/2019 Project -Meaning and Definition</p><p> 24/40</p><p>Nature of PS Models:Methodology</p><p> Startwith detailed list of firms goals</p><p> Createlist of project evaluation factors (PEFs)</p><p> Weigh every element in PEF list Compute an overall score for project based on</p><p>weighted PEFs</p><p> Select project that has the closest alignment withfirms goals</p></li><li><p>7/28/2019 Project -Meaning and Definition</p><p> 25/40</p><p>Project Evaluation Factors</p><p>(PEFs)</p><p> Production Factors</p><p> Marketing Factors Financial Factors</p><p> Personnel Factors</p><p> Administrative and Misc. Factors</p></li><li><p>7/28/2019 Project -Meaning and Definition</p><p> 26/40</p><p>Types of PS Models:</p><p>Nonnumeric</p><p> Sacred Cow</p><p> Operating Necessity</p><p> Competitive Necessity</p><p> Product Line Extension</p><p> Comparative Benefit</p><p>Model</p></li><li><p>7/28/2019 Project -Meaning and Definition</p><p> 27/40</p><p>Numeric PS Models:</p><p>Profit / Profitability</p><p> Payback Period (PB)</p><p> Average Rate of Return</p><p> Discounted Cash Flow (NPV) Internal Rate of Return</p><p> Profitability Index</p><p> Other Profitability Models</p></li><li><p>7/28/2019 Project -Meaning and Definition</p><p> 28/40</p><p>Choosing the PS Model</p><p> Dependent on wishes and philosophy ofmanagement</p><p> 80% of Fortune 500 firms choosenonnumeric PS models</p><p> Firms with outside funding often chosescoring PS models</p><p> Firms without outside funding often choseprofit / profitability PS models</p></li><li><p>7/28/2019 Project -Meaning and Definition</p><p> 29/40</p><p>Management of Risk:</p><p>Terminology</p><p> Risk: Decision based on completeinformation about the probability of each</p><p>possible outcome. Uncertainty: Decision based on</p><p>incomplete or insufficient data.</p><p> Game: Decision based under conditionsof conflict.</p></li><li><p>7/28/2019 Project -Meaning and Definition</p><p> 30/40</p><p>Areas of Uncertainty</p><p> Project timing &amp; expected cash flow.</p><p> Direct outcome of project, i.e. what exactlywill the project accomplish</p><p> Side effects and unforeseen consequencesof project</p></li><li><p>7/28/2019 Project -Meaning and Definition</p><p> 31/40</p><p>Risk Analysis</p><p>Crystal Ball2000 Software</p><p>1) Start with estimated risk profile for all</p><p>key parameters of project</p><p>2) Use Crystal Ball, an EXCEL plug in,</p><p>to represent decision by statistical model</p><p>3) Repeat many times to get a statistical</p><p>distribution of all possible outcomes</p></li><li><p>7/28/2019 Project -Meaning and Definition</p><p> 32/40</p><p>Window-of-Opportunity</p><p>Analysis</p><p> Estimate IN ADVANCE economicimpact of innovation before R&amp;D isundertaken</p><p> Set up a baseline of current process as thesum...</p></li></ul>