slides of project mgmt
TRANSCRIPT
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Fundamentals of
Project Management
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Concept Of Project
Project cement, power, refinery, fertilizers etc.the term common to all.
As soon as the plant is operational, the project isdeemed to be completed.
Lok sabha election
Videocon
Polio drops Sampling surveys
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Project ?... It starts from a scratch with a define
mission, generates activities involving a
variety of human and non human
resources directed towards fulfillment of
the mission and stops once the mission is
fulfilled. The project management institute U.S.A
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Characteristics Of Project
Objectives
Life span
Single entity Team work
Life cycle
Uniqueness
Change
Successive principle
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Characteristics Of Project
Made to order
Unity in diversity
High level of sub contracting Risk and uncertainty
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Project Family TreePLAN
PROGRAMME
PROJECT
WORK PAKAGE
TASK
ACTIVITY
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Project Manager
Indian context- project manager and
projects.
Problems faced- Everything is unknown and uncertain.
Scope comes clearly after passage of
time.
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Who can be a project manager?.. Engineer
Vendors
Contractors
Government bodies etc.
Success criteria- completion of task, time
of completion, budget, performance of thehardware build, etc.
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Basic Education Of Project
Manager Engineering for engineering projects.
PG course in project management.
Real education change the mental make up.
Some do it without education.
TIME COST QUALITY
Project management association new delhi.
Correspondence course in Punjabi University.
communication skills I will always choose a lazy person to do a difficult job
becoz definitely he will find an easy way to do it
---Bill gates
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Roles And Responsibility Of Project
Manager Defining and maintaining the integrity of a
project.
Development of project execution plan Organization of project execution plan.
Setting targets and development of systems andprocedures for accomplishment of project
objectives and targets. Negotiation for commitments.
Direction, coordination and control of projectactivities.
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Roles And Responsibility Of Project
Manager Contract management
Non human resources managementincluding fiscal matters
Projectising and problem solving
Man management
Satisfaction of customers, government,
and the publicAchievement of project objectives, cash
surplus and higher productivity
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Projects Normal project
Crash project
Disaster project
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Selection Of Project Manager ?
?.....
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Need of project manager From first day start searching.
Some doesnt appoint, they are not aware of
benefits. Difficulties in execution of plan
Unable to estimate losses and responsibility
Priority for corporate
No one free to become PM Outside PM for short time
CEO dont have time
So no PM means NO TARGET of time , cost ,quality, and performance
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Project Management As Profession
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The Project Team
Diff project have diff staff needs.
Behavioral issues in managing team.
Team members.
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The Project Team Members / roles Project engineer: in-charge of product design,
development, functional analysis, specification,
drawings, cost estimates, quality/reliability,engineering changes and documentation.
Manufacturing engineer: production of the
product and process the engineer design,
manufacturing design, tooling, production
scheduling and tasks etc.
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The Project Team Field manager: responsible for installation, testing, and
support of production and process once it is deliver tocustomers.
Contract administration: official paper work, keepingtrack of customers changes, billings, complaints, legalaspects, costs etc.
Project controller: daily accounts for budgets, costvariances, labor charges, project suppliers, capitalequipments etc.
Support service manager: product support, subcontracts, data processing and general managementsupport function.
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Human Factors And The Project
Team
Technical fault or human problem?
Workmanship, professionalism.
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Project life cycle Every phase need appropriate attention at
their level.
Every phase is important
5 phases in project life cycle
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Project life cycle phases Conception phase :
Idea germinates
Try to overcome certain problems- funds,plant, capacity, expertise etc
Solution to problems
Eg-
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Project life cycle phases Definition stage:
Areas to be examined
Raw material- quality and quantity
Plant size/capacity Location and site
Technology /process selection
Project layout
Plant and machinery
Electrical instrumentation works
Civil engineering works Utilities-fuel, power, water
Manpower/ org pattern
Financial analysis
Implementation scheduled
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Project life cycle phases Planning and organising phase:
Starts much earlier
Overlaps with definition stage and
implementation phase
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Project life cycle phases Planning and organising phase: Project infrastructure and enabling services
System design and basic engineering package
Organisation and manpower
Schedules and budgets
Licensing and governmental clearance
Finance
System and procedure
Identification of project manager
Design basic, general conditions for purchase andcontracts
Site preparation and investigation
Construction resources and materials
Work packaging
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Project life cycle phases Implementation phase :80-85 % of project work done in this phase
Project clean up phase:
Drawings, manuals, paper, documents handedover to customer / management
Guarantee test runs
Project accounts closers, materials reconciliationcarried out, outstanding payments, duecollections etc.
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Project life cycle curveLevelof
contract
Time
85% effort
8% effort
3% effort
4% effort
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Ma
rket Ana
lysis1.Situation analysis and specification of
objectives
Who are customers?
Total size of market
Yearly sales graph
Area
Potential customersChannel of distribution
Immediate sales area
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Ma
rket Ana
lysis2. Collection of secondary data
Census of India
National sample survey reports
Economic survey
Institution and other agencyEvaluation of secondary information
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Market Analysis
3. Conduct market survey
Market and demand analysis
Define target populationSelect sampling scheme and sample size
Develop questionaire
Recruit and train field investigation
Scrutinize the information gathered
Analyze and interpret the information
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Market Analysis
4. Characterizations of the market
Effective demand in the past and present
Breakdown of demandPrice
Methods of distribution and sales promotion
Consumers
Supply and competition
Government policy
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Market Analysis
5. Demand fore casting
6. Uncertainty in demand forecast
Data about past and present
Methods of forecasting
Environment drawings
7. Market planningMarket strategy
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Technical Analysis
To insure that project is technically
feasible in the sense that all the inputs
required t set up the project are available.
To facilitate the most optimal formulation
of the project in the terms of technology,
size, location and so on.
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Technical Analysis
A. Manufacturing process/ technology
Cement
Soap
Choice of technologyPlant capacity
Principle inputs
Investment outlay and production cost
Use by other unitsProduct mix
Latest developments
Ease of absorption
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Technical Analysis
Appropriateness of technology
Whether the technology utilises local raw material?
Whether the technology utilises local man power?
Whether the goods and services produced cater to thebasic needs?
Whether the technology protects ecological balance?
Whether the technology is harmonious with social and
cultural condition?
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Technical Analysis
B. Technical arrangements
Technical know-how
Nature of supportProcess and performance guarantees
Price of technology-one time licensing, periodicroyalty fee
R&D
Period of collaboration agreement
Sharing management control
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Technical Analysis
C. Material and input utilities
Study of material and utilities
Four broad categories1. Raw material
Agricultural products
Mineral products
Livestock and forest products
Marine products
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Technical Analysis
2. Processed industrial materials and
components
3. Auxiliary materials and factory suppliesChemicals, packing materials, paint, varnishes,
oils, grease, cleaning material, etc.
4. Utilities power, water, steam, fuel, etc
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Technical Analysis
D. Product mix
E. Plant capacity
FNC-Feasible normal capacity
NMC- nominal maximum capacityTechnological requirements
Inputs consideration
Investment cost
Market conditionsResources of the firm
Government policy
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Technical Analysis
F. Location and site
Proximity of raw material and markets
Availability of infrastructure
Labour situation
Government policy
Other factorsSite selection
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Technical Analysis
G. Machines and equipments
Constraints in selecting machineries and
equipmentProcurement of plant and machinery
H. Structures and civil works
Site preparation and development
Building and structuresOutdoor works
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Technical Analysis
Projects charts and layouts:
General function layout- relationship between building,equipment and civil works
Material flow diagram Production line diagrams
Transport line diagrams
Utility consumptions diagrams
Communication layout
Organizational layout
Plant layout
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PROJECT PLANNING
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Project Planning
Initial project coordination: Overall mission
Goals
Strategy of the organization Outlining the scope of the project
Project lunch meeting
Technical scope is established
Basic area of performance responsibility accepted
Any tentative delivery dates or budgets set by theorganization are clearly noted
Risk management team is created
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Project Plan Elements Overview
Objectives
General approach- managerial and technical
Contractual aspects
Schedules
Resources
Personnel
Risk management plans
Evaluation methods
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Project Planning In Action Planning from start to completion
Sequence of things
9Segments of projects are:
Concept evaluation
Requirement identification
Design
Implementation
Test
Integration
Validation
Customer test and evaluation
Operational and maintaince
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ENVIRONMENT ANALYSIS
Environment impact assessment/
appraisal are considered to be the first
step in the process because they give anopportunity to man to consider the effects
of his actions on the environment.
Example what you people do?....... For/ against
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Environment Analysis
Economic development is the result of the
interaction between natural resources and
technology supported by and designed forpeople.
Example: nuclear power plant, petrol
engines, electricity, wind power solarpower etc.
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Types And Dimensions Of
Projects1.Cement, steel, paper, chemical etc.
Natural resources into saleable andexchangeable products.
These projects inflict a large number of physicalchanges and description on environment andhence disturb the environment and ecologicalsystem.
2. Produce render various kinds of services suchas health, education, transport, energy, defence,law and order etc
Not much physical changes on the environment
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Project Objectives
Intended objective
Unintended objective/ consequences
Social cost planned, unwanted, unanticipated.
Environmental analysis is the study of unintended
consequences on the environment done by
various projects
GOAL IS DEVELOPMENT WITHOUT DAMAGING
ENVIRONMENT
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Stress On Environment
Eutrophic stress- release of various kinds os
waste into the rivers, lakes, other water bodies.
Exploitation stress- natural resources egagriculture, marine, forest
Distruptive stress- cutting of forests, factories,
industries in forest areas
Chemical and industrial
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ERV Environment resources/ values
Environmentalist developed this concept
Study of environment which benefits the mankind
4 important components are
Level 1- physical resources covering land, water and air.Level-2- ecological resources consisting of aquatic,
terrestrial and endangered species
Level-3-human use values covering transport, agriculture,water supply, recreation, mining, industry, flood control
etc.Level-4- quality of life values covering socio economic,
cultural and aesthetic aspects
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Environment 8 Attributes
Air
Water
Land
Ecology
Sound
Human aspects
Economics
Resources
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Environment Appraisal Projects
Follow either
ER/Vs
EA
Impact vary on the nature of project Impact analysis depend upon
Nature and size, type of projects such as manufacturing,mining, logging, power, chemicals, sugar etc
Technology
Location / eco region such as urban or rural areas,coastal, river valley, forest hill areas of any eco system.
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Meaning And Scope EIS & EIA
EIA-Env Impact Assessment
EIS-Env Impact System
Helps in achieving objectives
NO ONE HAS ANY RIGHT TO USE THE
PRECIOUS RESOURCES RESULTING
IN GREATER LOSS THAN GAIN TOSOCIETY- Funda of EIA & EIS
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EIA
An activity designed to identify, predict,
interpret and communicate information
about the impact of an action on manshealth and well being . In turns, the action
is include any engineering projects,
legislative proposals, policy programme or
operational procedure with environmental
implication
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EISA report based on studies disclosing the
likely or certain environmentalconsequences of a proposed actions, thus
ascertain the decision makers, the publicand the government to environment risksinvolved; findings enables better informeddecisions to be made, perhaps to reject or
defer the proposal action or permit itsubject it subject to specific conditions
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Objective of EIS To identify and describe (Qty) the environmental
R/Vs and EA which will be effected by theproposed project under existing or with orwithout project conditions.
Describe measure and assess the +ve and veeffect which will increase ER/Vs or decrease it
Direct or indirect
Short term or long term Alternatives which can reduces the effects
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Guidelines On The Scope And
Contents Of EIS & EIA Description of the project proposed action, technical
details
Proposed action to the land use plans, policies and
controls in affected areas Probable impact of the proposal project on the EA and in
what quantity
Alternative to the proposed project
Adverse Env effect which cannot be avoided
Relationship between local short term use of resourcesand maintainers of an enhancement of long termproductivity
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Methodology for conducting an EIS
study Quanitifying methods
Meaning parameters are rear and not well developed
Major problems in the study are
Diffused nature of impact both over time and space andlags in impacts after caused worked
An environmental effect is the joint product of severalpollutants
Inadequate of techniques to estimate the impacts and
their Costs
Since the impact are imperceptible people are not awareof the impacts
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Steps in Environment Approach Make a rapid or quick scanning or appraisal of the basic
environmental resources eg. District level
Project surroundings zone using maps
Identify areas and describe all the environmental
attributes that will give us a total description of the Envbefore the start of the project
Ranking of attributes depending upon their significance
Carry out item by item review of effects of the proposedproject on the already identify ER/Vs
Arrange/ group effects Prepare remedial plans
Corrective
Compensatory
Enhancing
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WBS-Work Breakdown Structure
Subdivided into smaller and smaller workelements.
Hierarchical process is called the WBS
All the elements of the project in a hierarchicalframework and establishes their relationship tothe project items.
OBS-organization breakdown structure
Organizational units and individuals areassigned responsibility for accomplishingobjectives.
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WBS-Work Breakdown Structure
LevelHierarchical breakdown Description
Project
Deliverable
Sub deliverable
Lowest sub deliverable
Cost account
Work package
Complete project
Major deliverable
Supporting deliverable
Low management
responsibility level
Identify work activities
Grouping of work package
For monitoring progress
And responsibility
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WBS
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WBS- work breakdown structure
To review, each work package in the WBS
Defines work (what)
Identifies time to complete a work package (how long)
Identifies a time phased budget to complete a workpackage (cost)
Identifies resources needed to complete a work package(how much)
Identifies a single person responsible for units of work(who)
Identifies monitoring points for measuring progress
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TIME VALUE
OFMONEY
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Time LINE
A time line shows the timing and the
amount of each cash flow stream.
12%12%12%12%12%12%
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Time value of money
PV = present value
FVn= future value n years hence
Ct=cash flow occurring at the end of year t
A=a stream of constant periodic cash flow overgiven period of time
r= Interest rate or discount rate
g= expected growth rate
n= number of periods over which cash flowoccur
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Future value of single amount
1st
1000
100
2nd
1100
110
3rd
1210
121
1331Formula
FV n =PV (1+r)n
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Compound and Simple Interest
Compound interest formula
Future value= PV [1+No. of years *interest
rate]
PV = FV n [1/ (1+r)n ]
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Doubling Period
0.35 +____69__
interest rate
Growth Rate
(1+g)
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Present Value Of Uneven Series
PV n= A1/(1+r)+ A2/(1+r)n +..
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Future Value Of An Annuity
An annuity is as stream of constant cash
flow (payment or receipt) occurring ar
regular intervals of time. LIC
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