UNIT–I

Project Management Systems – Organization – Scope of construction management – Significance – concept of scientific management – qualities of manager – organization – authority policy – recruitment process and training

Definition of project:

A project can be considered to be any series of activities and tasks that

1. Have a specific objective to be completed within certain specifications2. Have defined start and end dates3. Have funding limits (if applicable)4. Consume human and nonhuman resources (i.e., money, people, equipment)5. Are multifunctional (i.e., cut across several functional lines)

A project is a temporary endeavour undertaken to create a unique product or service. A project is temporary in that there is a defined start (the decision to proceed) and a defined end (the achievement of the goals and objectives).

Note: Ongoing business or maintenance operations are not projects

Some more definitions;

Association for Project Management (UK’s largest professional body for project managers), 2004: Projects are unique, transient endeavours undertaken to achieve a desired outcome

Project Management Institute (world’s largest professional association), 2004: A project is a temporary endeavour undertaken to create a unique product, service or result.

British Standard 6079, 2000: A unique set of coordinated activities, with definite starting and finishing points, undertaken by an individual or organisation to meet specific performance objectives within defined schedule, cost and performance parameters.

PRINCE 2 2009 (PRojects IN Controlled Environments – UK government standard for project management): A management environment that is created for the purpose of delivering one or more business products according to a specified business case.

And: A temporary organisation that is needed to produce a unique and predefined outcome or result at a given time using predetermined resources.

Project Management Association of Japan, 2005: A project refers to a value creation undertaking based on a specific mission, which is completed in a given or agreed timeframe and under constraints, including resources and external circumstances.

A project is a problem scheduled for solution —J. M. Juran

Some common themes understood here are:

1 Unique: the exact project has not been performed before. The project has a degree of novelty, in terms of time, place, team carrying out the task, product or service being provided. However, something like it has almost certainly been done by someone somewhere before. For this reason, projects are said to have aspects of uniqueness.

2 Temporary: the project does have a beginning and an end, as for our earlier definition, and requires a group of people to carry out the task (the establishment of a temporary organisation). When the project finishes, the team moves on. The financial resources available to the project are also temporary and almost always finite – when the project is completed the funding ceases.

3 Focused: the task of the project is to deliver a particular product, service or result (the specific mission). This is not to say that every project starts out with a complete and clear idea of exactly what will be achieved and how.

Figure: Project Characteristics

Functional Work

Functional work is routine, ongoing work. Each day, secretaries, financial analysts, and car sales people perform functional work that is mostly repetitive, even if their activities vary somewhat from day to day. A manager assigned to the specific function provides training and supervision, and manages them according to standards of productivity, such as quantity of work performed or number of sales

Project Work

In contrast to ongoing, functional work, a project is “a temporary endeavour undertaken to create a unique product, service, or result” (A Guide to the Project Management Body of Knowledge (PMBOK® Guide), Project Management Institute, 2008, p. 5). Projects are temporary because they have a defined beginning and end. They are unique because the product, service, or result is different in some distinguishing way from similar products, services, or results. The construction of a headquarters building for ABC Industries is an example of a project. The unique work is defined by the building plans and has a specific beginning and end. A project manager is responsible for the project, overseeing the con-tractors, and managing the schedule and budget.

Project Management Systems

Project management is application of knowledge, skills, tools, and techniques to project activities to achieve project requirements. Project management is accomplished through the application and integration of the project management processes of initiating, planning, executing, monitoring and controlling, and closing.

Project management systems are software tools that assist in the organization and moderation of a project throughout its life cycle

Project visibility: shows the project as a whole, allowing one to accurately predict the results of project constraints (scope, time, costs, etc.)

Resource visibility: shows the resources available in a project, allowing one to properly distribute and prioritize work

Metric visibility: shows the current status of certain elements of a project in relation to the end goal

Project management software has a capacity to help plan, organize, and manage resource pools and develop resource estimate.

Examples

Project Office Management System (POMS), Primavera, PlanWise Project Management, Project Libre, Open ERP & Microsoft Project

The potential benefits from project management are:

1. Identification of functional responsibilities to ensure that all activities are accounted for, regardless of personnel turnover

2. Minimizing the need for continuous reporting3. Identification of time limits for scheduling4. Identification of a methodology for trade-off analysis5. Measurement of accomplishment against plans6. Early identification of problems so that corrective action may follow7. Improved estimating capability for future planning8. Knowing when objectives cannot be met or will be exceeded

The benefits cannot be achieved without overcoming obstacles such as:

1. Project complexity2. Customer’s special requirements and scope changes3. Organizational restructuring4. Project risks5. Changes in technology6. Forward planning and pricing

What Project Management Isn’t

1. Project management is not personal productivity2. Project management is not people management3. Project management is not operations or service management

Project management life cycle

Figure: Project management life cycle

Figure: Steps in managing a project

The above figures and tables give the basic outline of how a project management process is done.

Initiating

Initiating is the basic processes that should be performed to get the project started. This starting point is critical because those who will deliver the project, those who will use the project, and those who will have a stake in the project need to reach an agreement on its initiation. Involving all

stakeholders in the project phases generally improves the probability of satisfying customer requirements by shared ownership of the project by the stakeholders. The success of the project team depends upon starting with complete and accurate information, management support, and the authorization necessary to manage the project.

Planning

Project planning defines project activities that will be performed; the products that will be produced, and describes how these activities will be accomplished and managed. Project planning defines each major task, estimates the time, resources and cost required, and provides a framework for management review and control. Planning involves identifying and documenting scope, tasks, schedules, cost, risk, quality, and staffing needs.

The result of the project planning, the project plan, will be an approved, comprehensive document that allows a project team to begin and complete the work necessary to achieve the project goals and objectives. The project plan will address how the project team will manage the project elements. It will provide a high level of confidence in the organization’s ability to meet the scope, timing, cost, and quality requirements by addressing all aspects of the project.

Executing

The project team and the project manager’s focus now shifts from planning the project efforts to participating, observing, and analyzing the work being done. The execution phase is when the work activities of the project plan are executed, resulting in the completion of the project deliverables and achievement of the project objective(s). This phase brings together all of the project management disciplines, resulting in a product or service that will meet the project deliverable requirements and the customers need. During this phase, elements completed in the planning phase are implemented, time is expended, and money is spent.

In short, it means coordinating and managing the project resources while executing the project plan, performing the planned project activities, and ensuring they are completed efficiently.

Controlling

Project Control function that involves comparing actual performance with planned performance and taking corrective action to get the desired outcome when there are significant differences. By monitoring and measuring progress regularly, identifying variances from plan, and taking corrective action if required, project control ensures that project objectives are met.

Closing out

Project closeout is performed after all defined project objectives have been met and the customer has formally accepted the project’s deliverables and end product or, in some instances, when a project has been cancelled or terminated early. Although, project closeout is a routine process, it is an important one. By properly completing the project closeout, organizations can benefit from lessons learned and information compiled. The project closeout phase is comprised of contract closeout and administrative closure.

PMBOK® Guide defines five general process groups:

1. Initiating: Defining and authorizing the project.2. Planning: Establishing the project scope, refining the objectives, and defining the course of

action to attain the objectives.3. Executing: Integrating people and other resources to carry out the work de-fined in the

project plan.4. Monitoring and Controlling: Tracking, reviewing, and regulating the progress and

performance of the project plan, identifying where changes to the plan are required, and taking corrective action.

5. Closing: Finalizing all activities across all the process groups to formally close the project.

Organisational structure

Pure product or project structure

1. Develops as a division within a division2. Work is stable and conflicts are at a minimum3. The program manager maintains complete line authority over the entire project. He assigns

work and also conducts merit reviews.4. Strong communication channels develop that result in a very rapid reaction time5. Long lead times are reduced 6. Functional managers were able to maintain qualified staffs for new product development

without sharing personnel with other programs and projects.

Figure: Pure product or project structure

Advantages of the product organizational form

1. Provides complete line authority over the project (i.e., strong control through a single project authority).

2. Participants work directly for the project manager. Unprofitable product lines are easily identified and can be eliminated.

3. Strong communications channels.4. Staffs can maintain expertise on a given project without sharing key personnel.5. Very rapid reaction time is provided.6. Personnel demonstrate loyalty to the project; better morale with product identification.7. A focal point develops for out-of-company customer relations.8. Flexibility in determining time (schedule), cost, and performance trade-offs.9. Interface management becomes easier as unit size is decreased.10. Upper-level management maintains more free time for executive decision-making.

Disadvantages of the product organizational form

1. Cost of maintaining this form in a multiproduct company would be prohibitive due to duplication of effort, facilities, and personnel; inefficient usage.

2. A tendency to retain personnel on a project long after they are needed. Upper-level management must balance workloads as projects start up and are phased out.

3. Technology suffers because, without strong functional groups, outlook of the future to improve company’s capabilities for new programs would be hampered (i.e., no perpetuation of technology).

4. Control of functional (i.e., organizational) specialists requires top-level coordination.5. Lack of opportunities for technical interchange between projects.6. Lack of career continuity and opportunities for project personnel

Matrix organizational form

The matrix organizational form is an attempt to combine the advantages of the pure functional structure and the product organizational structure. Each project manager reports directly to the vice president and general manager. Since each project represents a potential profit centre, the power and authority used by the project manager come directly from the general manager. The project manager has total responsibility and accountability for project success. The functional departments, on the other hand, have functional responsibility to maintain technical excellence on the project.

Figure: Typical matrix organizational structure.

Advantages of a pure matrix organizational form

1. The project manager maintains maximum project control (through the line managers) over all resources, including cost and personnel.

2. Policies and procedures can be set up independently for each project, provided that they do not contradict company policies and procedures.

3. The project manager has the authority to commit company resources, provided that scheduling does not cause conflicts with other projects.

4. Rapid responses are possible to changes, conflict resolution, and project needs (as technology or schedule).

5. The functional organizations exist primarily as support for the project.6. Each person has a “home” after project completion. People are susceptible to motivation

and end-item identification. Each person can be shown a career path.7. Because key people can be shared, the program cost is minimized. People can work on a

variety of problems; that is, better people control is possible.8. A strong technical base can be developed, and much more time can be devoted to complex

problem solving.9. Knowledge is available for all projects on an equal basis.10. Conflicts are minimal, and those requiring hierarchical referrals are more easily resolved.11. There is a better balance among time, cost, and performance.12. Rapid development of specialists and generalists occurs.13. Authority and responsibility are shared.14. Stress is distributed among the team (and the functional managers).

Disadvantages of a pure matrix organizational form

1. Multidimensional information flow.2. Multidimensional work flow.3. Dual reporting.4. Continuously changing priorities.5. Management goals different from project goals.6. Potential for continuous conflict and conflict resolution.7. Difficulty in monitoring and control.8. Company-wide, the organizational structure is not cost-effective because more people than

necessary are required, primarily administrative.9. Each project organization operates independently. Care must be taken that duplication of

efforts does not occur.10. More effort and time are needed initially to define policies and procedures, compared to

traditional form.11. Functional managers may be biased according to their own set of priorities.12. Balance of power between functional and project organizations must be watched.13. Balance of time, cost, and performance must be monitored.14. Although rapid response time is possible for individual problem resolution, the reaction time

can become quite slow.15. Employees and managers are more susceptible to role ambiguity than in traditional form.16. Conflicts and their resolution may be a continuous process (possibly requiring support of an

organizational development specialist).17. People do not feel that they have any control over their own destiny when continuously

reporting to multiple managers.

Concept of scientific management

Scientific management is developed by F W Taylor. It replaces the rule of thumb with scientific principles. The study of scientific management establishes science for management, harmony, cooperation and maximum output at optimum cost. It is concerned with the development, improvement, implementation and evaluation of integrated systems of people, knowledge, equipment, energy, material and process.

The theory says that there is “one best way” to do a job and scientific methods can be used to determine that “one best way”

Qualities of a manger

1. Flexibility and adaptability2. Preference for significant initiative and leadership3. Aggressiveness, confidence, persuasiveness, verbal fluency4. Ambition, activity, forcefulness5. Effectiveness as a communicator and integrator

6. Broad scope of personal interests7. Poise, enthusiasm, imagination, spontaneity8. Able to balance technical solutions with time, cost, and human factors9. Well organized and disciplined10. A generalist rather than a specialist11. Able and willing to devote most of his time to planning and controlling12. Able to identify problems13. Willing to make decisions14. Able to maintain proper balance in the use of time

Qualities of a project manager

The PMBOK lists nine knowledge areas that a project manager should identify:

1. Integration Management — Ties all the other processes together. Includes the coordination, consolidation, and integrative processes necessary to successfully execute a project.

2. Scope Management —includes all the efforts to articulate and identify the features and functions of a product. Includes the identification of requirements, deliverables, tasks, and activities required to produce the product of the project.

3. Time Management —includes all the processes required to estimate effort duration and sequence in order to complete the project in a timely manner.

4. Cost Management — all costs are planned for and estimated in this process. This process also includes project cost baselines and processes to control project budgets.

5. Quality Management —Processes required to achieve project deliverables that meet quality objectives for an organization.

6. Human Resource Management — Process required to organize the project team.7. Communications Management — the process of creating, collecting, and disseminating

project information.8. Risk Management — Includes planning for how an organization will conduct risk

management. This includes analyzing, prioritizing, and responding to risks.9. Procurement Management — the processes needed to either purchase or acquire the

needed products or services from outside the project team.

The major responsibilities of the project manager include:

1. To produce the end-item with the available resources and within the constraints of time, cost, and performance/technology

2. To meet contractual profit objectives3. To make all required decisions whether they be for alternatives or termination4. To act as the customer (external) and upper-level and functional management (internal)

communications focal point5. To “negotiate” with all functional disciplines for accomplishment of the necessary work

packages within the constraints of time, cost, and performance/technology

6. To resolve all conflicts

The primary responsibility of the project manager is to ensure that all work is completed on time, within budget and scope, and at the correct performance level, they must understand the mission and vision of the organization; then they must see how the project they are managing meshes with the organization’s mission; then they must steer the project to ensure that the interests of the organization are met.

The project manager is the person assigned to manage a project and is responsible to meet its approved objectives, including project scope, budget, and schedule. At the same time, project managers must also balance appropriate quality, avail-ability of resources, and the management of risk. The project manager leads the project team and provides vision, direction, and encouragement. To be successful, he or she must possess project management skills, interpersonal skills, integration skills, technical skills, and knowledge of the organization. Project management is a combination of many ingredients, such as large measures of common sense, ambition, flexibility, resourcefulness, and a healthy appetite for negotiation. Project managers must maintain good balance in assigning responsibility, delegating authority, and holding people accountable. The authority must be appropriate for the responsibility, and the accountability must be commensurate with the authority and the responsibility.

Key Points

A project is a temporary endeavour undertaken to produce a unique product, service, or result.

A project is also a problem scheduled for solution.

Project management is application of knowledge, skills, tools, and techniques to project activities to meet project requirements. Project management is accomplished by applying the processes of initiating, planning, executing, monitoring and controlling, and closing.

All projects are constrained by Performance, Time, Cost, and Scope requirements. Only three of these can have values assigned. The fourth must be determined by the project team.

Projects tend to fail because the team does not take time to ensure that they have developed a proper definition of the problem being solved.

The major phases of a project include concept, definition, planning, execution and control, and closeout.

A project manager must understand the mission and vision of the organization first, see how the project they are managing meshes with the organization’s mission, and then steer the project to ensure that the interests of the organization are met.

The first skills a project manager needs are people skills.

One of the biggest traps for project managers is to perform technical work in addition to managing the job, because, when there is a conflict between performing the two, the project manager cannot neglect the management aspects.

Instead of asking for authority, make decisions yourself, take action that is appropriate and does not violate policy, and then inform your boss what you have done.

The project manager’s job is to ensure that everyone in the project team has what he needs to do his job well.

A project manager must exercise both leadership and management skills.