Project Management Npti 3rd Aug'15
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Transcript of Project Management Npti 3rd Aug'15
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PROJECT MANAGEMENTAlthough management of projects has been going on for thousands of
years, the practice has been widely recognized as a discipline in its ownright for only about last fty years.
Not only are there now numerous degree programs, but also some
organizations have begun to ask their contractors to provide only project
managers who have been certied as professional project managers by
the Project anagement !nstitutes, the professional society for
practitioners. "hey are also insisting that their own people become
professional project managers.
From Project to Project Management: "hough Project anagement is a newer concept but projects are never
new to the earth. #ne of the seven wonders of the world, the Pyramids
date back to $%&' (), which stand as the hall mark of *gyptian
civilization. #ne can imagine the e+tent of resources and e+pertise that
would have been put forth for the completion of such magnicent
projects.
"he overnment of a country builds highways, dams, thermal power
plants, hydro power plants, airports etc. "hese are all projects that the
country undertakes.
A Project is a temporary or regular endeavour to create
a unique product or service.
• Projects are uni-ue.
• Projects are temporary in nature and have a denite beginning and
end date but may be repeated elsewhere.
• Projects are completed and closed when the project goals are
achieved or it is abandoned if determined that the project is no
longer viable.
• A successful project is one that meets or e+ceeds the e+pectations
of stakeholders.
r. /. . /uran, the -uality guru, dened a project as a
roblem scheduled for solution.
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Project Features:Uniqueness:
• Product characteristics are progressive and elaborated.
• "he product or service is di0erent in some way from other product
or services.
• Additional features announced against e+isting setups available
already.
Temporariness:
•
!t has a denite beginning and end e0ort.
• !t is not an ongoing e0ort such as in operations, manufacturing and
uses showing continuity.
• !t ceases when objective is attained, specic to governing contracts
under which started.
• "he team is disbanded and shifted upon project completion.
*+ample
(uilding a 1ydro Power 2tation 31PP4 or a road etc. are e+ample of a
project. "he process of building a road takes a nite amount of time, and
produces a uni-ue product. 2o is the 1 P P known for it5s tailor made
parlances.
Operations, on the other hand, are repetitive. enerating bills every
month, and broadcasting news everyday are e+amples of operations.
Project Management:
A project may be understood as a sequence of unique, compe!, and
connected acti"ities #a"in$ one $oa or purpose and t#at must be
competed by a speci%c time, &it#in bud$et, and accordin$ to
speci%cation'
Project management is facilitating the planning,
scheduling, and controlling of all activities that mustbe done to achieve project objectives.
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!n making a project succeed is no simple task.
"he di6culties manifest themselves in 3e+treme4 delays, 3e+treme4
budget over7runs, inade-uate results, dissatised customers and marketloss, high stress among the project team, phases of technological
obsolescence looming large, high rise of NPAs and other undesirable
outcomes.
"herefore four features8
a group of people, a goal,
limited time and money and
a certain level of uncertainty regarding whether the goals will be
achieved,
drive for Project anagement.
Project Mana$ement is the application of knowledge, skills,tools, techni-ues and other resources to project activities to meet project
re-uirements.
"hrough proper project management, it is assured that the set purpose 9
vision and goals are maintained minimising risks e0ectively and e6cient
use of available resources.
!t makes the team members to understand their responsibilities, the
deliverables e+pected, and the schedule everyone needs to follow to
complete the project on time and within budget.
Project Phases:Projects are typically broken down into various phases, each phase
outlining the work that needs to be done and who are involved as team
with identied resources.
enerally, in order for a phase to be considered complete, specic
deliverables need to have been completed and handed o0. 2ome project
teams, however, do choose to implement fast tracking, which is whenphases are overlapped. *+ample8 "1PP Phase ! : !! etc.
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uring !orld !ar "" defence contractors #ere under great pressure to
build #eaponr$ at an intense level. To accelerate construction of ships
and planes in particular, man$ ne# assembl$ methods #ere invented.
Avondale ship$ards, for e%ample, #or&ed on 'nding better #a$s tobuild ships. The traditional #a$ had al#a$s been to build the ship in an
upright position. (o#ever, ships built from steel required #elding in
the bottom, or &eel area of the boat, and this #as ver$ di)cult to do in
the traditional model. Avondale decided to build its ships upside do#n,
to ma&e the #elding easier, and then to turn them over to complete the
structures above the top dec&. This strateg$ #as so e*ective that it
could build boats faster, cheaper, and of higher qualit$ than its
competitors, and the strateg$ is still being used toda$.
!n Project anagement , Performance, "ime, and 2cope are variables of
)ost , ) ;
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A ifecyce of t#e project de%nes t#e be$innin$ and end of t#e
project+ it represents a of t#e p#ases to$et#er'
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Project management is accomplished through the use of
the processes such as:
• !nitiating with formulated 2trategies, "actics, and =ogics
• Planning to !mplement, =ogistics and >esources apped
• 2cheduling and rescheduling
• *+ecuting on #riginal to revisions decided
• onitoring and )ontrolling
• )losing and >eviews
Project managers or the organization, group the project activities intoabove planning phases to provide better management , monitoring and
control with appropriate links to the ongoing operations of the performing
organization.
)ollectively, these phases are known as the project life cycle.
Managing a project entails, project leaders and teams
#ith the follo#ing:?. "eam8 A project team comprised of a group of people who will realise
the project result. "he group is often comprised of people who havevarious backgrounds, each of whom contributes knowledge and skills with
e+pertise.
$. oal8 A product result 3or goal4 desired and realised on completion.
!n an e+ample, if a new piece of software has been written, a re7
organisation has been carried out or a bridge has been built. "he project
goal is sometimes vague or less rmly established. !n projects, it is
necessary to adapt the goal as the project proceeds.
@. =imited resources8 "he amount of time and money available for
completing a project is always scares and limited. No project is completely
free of time pressure.
. Bncertainty 3risk48 #ne characteristic feature of projects that their
success is never guaranteed beforehand signies risk attached.
*ven if the desired goal is already being reached, it is uncertain whether it
will be achieved within the available budget or within the proposed time.
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!t is not unusual for a project to take many times as long and to cost much
more as originally estimated. !t is also not unusual for only very less per
cent of the original project team members to be working on the project
upon its completion.
Although project managers must attend to man$
matters, the$ actuall$ direct projects along onl$
've parameters:
• Time
• Money
• uaity
• Or$anisation
•
-or. Pro$ress• /nformation.
"hese ve parameters behave like Ccontrol factors5.
Project managers deliver projects #hile balancing the
constraints:
• 2cope, =imits , )learances, 2ociety emand
• 2chedule, "ime frame, ilestones,
• Duality and 2tandards, esign and 2pecications
• >esources..an power, *+pertise )onsultants esigners, aterial
and )onstruction, *-uipments and achinery, anufacturing to
ethodologies, oney and arket 2ervices etc.
• )ustomer 2atisfaction
• >isk identication and itigation
"hese all are so intertwined that a change in one will most often cause a
change in at least one of the others
0or e!ampe1
• !f time is e+tended, the cost of the project will increase.
• !f time e+tended with the same cost then -uality and market of the
product will reduce.
• !f scope is e+tended then cost and time will also e+tend.
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• *tc.
)hanges to any of these legs sets o0 a series of activities that are needed
to integrate the change across the project.
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Program to Project Management:A program consists of a $roup of reated project components &it#
sc#edue and resources earmar.ed.
"he Program management is a process of managing multiples of
on $oin$ projects,baancin$ to$et#er to )c#edues dra&n ,incorporatin$ minimisin$ e!ercise for de"iation and
&or.in$ out ne& pro$ram of t#e project , if need be '
An e+ample would be that of designing, manufacturing and providing
support infrastructure for power project.
!n some cases Project anagement is a subset of Program anagement.
"he project manager may report to the program manager in such cases.
1ere, a portfolio consists of multiple programs to manage portfolios based
on specic goals.
2enior managers or senior management teams typically take on the
responsibility of portfolio management for an organization.
Pro$ram mana$ement in"o"es centray mana$in$ and coordinatin$
rou s of reated ro ects to meet t#e ob ecti"es of t#e ro ram'
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+eed for Project Management:Project management is to manage projects e0ectively top to bottom to
bring completion as planned or with revised plans successfully.
Project anagement starts with the decision to conceive it and to drive to
start a project upon weighing its need and viability.
#nce a project starts, it is crucial to watch the project progress at every
step so as to ensure it delivers what all is re-uired, in the stipulated time,
within the allocated budget.
ther drivers in-uencing the need of project
management are:
•
*+ponential e+pansion of human knowledge
• lobal demand for goods and services
• lobal competition
• "eam is re-uired to meet the demand with -uality and standard.
• !mproved automated control over the project
• !mproved performance appraisal and evaluation
• !mproved budget use and -uality enhancement
Project Management &ills:any of the tools and techni-ues for managing projects are specic to
project management. 1owever, e0ective project management re-uires
that the project management team ac-uire the following three dimensions
of project management competencies8
• Project Mana$ement 2no&ed$e Competency1 "his refers to
what the project management team knows about project
management.
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• Project Mana$ement Performance Competency1 "his refers to
what the project management team is able to do or accomplish
while applying their project management knowledge.
• Persona Competency1 "his refers to how the project
management team behaves when performing the project or activity.
No one has '% 9 '% foresight for future. Bnforeseen problems are
almost certain to arise and test the )ompetency.
"nterpersonal &ills Management: "he management of interpersonal relationships includes8
• E3ecti"e communication1 "he e+change of information
• /n4uencin$ t#e or$ani5ation1 "he ability to Eget things doneE
• 6eaders#ip1 eveloping a vision and strategy, and motivating
people to achieve that vision and strategy
• Moti"ation1 *nergizing people to achieve high levels of
performance and to overcome barriers to change
• Ne$otiation and con4ict mana$ement1 )onferring with others to
come to terms with them or to reach an agreement
• 7ecision Ma.in$1 Ability to take decision independently.
• Poitica and cutura a&areness1 !mportant to handle various
personal and professional issues.
• Team 8uidin$1 Ability to create a productive team.
Project Management /no#ledge includes ten &no#ledge
areas:
• Project !ntegration anagement
A road construction project &as $oin$ on in NE /ndia by 8RO in
9:;s t#at #ad "ery bad i"in$ conditions for t#e &or.ers' T#e
food &as bad, seepin$ conditions &ere poor, and t#e &or.ers
&ere su3erin$ o& morae' T#e project mana$er and #is senior
sta3 &ere a stayin$ in nice camps in t#e nearby to&n
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• Project 2cope anagement
• Project )ost anagement
• Project "ime anagement
• Project >isk anagement
• Project Duality anagement
• Project 1> anagement
• Project )ommunication anagement
• Project Procurement anagement
• Project 2takeholder anagement
*ach Fnowledge area has certain processes with three important parts.
• /nputs
• Toos = Tec#niques
• Outputs
Project Mana$ement process $roups.3*ach process is part of one of
these ve project phases4
• !nitiating
• Planning
• 2cheduling and *+ecuting
• onitoring and )ontrolling
• )losing
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"nitiating 0 Planning The Project
"o !dentify work to be done and estimate time, cost and resourcere-uirements and gain approval to do the project.
o ening all of the work of the project
o *stimating how long it will take to complete this worko *stimating the resources re-uired to complete the work
o *stimating the total cost of the worko 2e-uencing the worko (uilding the initial project scheduleo Analyzing : adjusting the project schedule
o Griting a risk management plano ocumenting the project plano aining senior management approval to launch the project
3 /f t#e en$t# of t#e acti"ity bars indicates reati"e tas. duration, t#isc#art tes about t#e project1 T#ere are t&o important deadines en
sub>components of t#e system ?interim dei"erabes@ must be dei"ered
for t#e project to be considered on trac.' T#e Critica Pat# ?t#e
sequence of acti"ities t#at cannot sip &it#out t#e oe project
sippin$@ is A C 7 E B' /f acti"ities done to de"eop sub>
component and sub>component D in parae, t#e project time sip ris.
reduced consideraby4
Monitorin$ = Contro of T#e Project
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H >esponding to change re-uests and resolve problem situations to
maintain project progress. I onitoring project performance I
*stablishing the project performance and reporting system I
onitoring risk I >eporting project status I Processing scope change
re-uests I iscovering and solving problems
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A 1rief (istor$ of cheduling
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A antt chart is like a
P2 for manufacturing
projects. !t shows
what elements are
involved in the
project from start to
nish, where the
progress is supposed to be at what point of time, and if the project is on
schedule or not. antt charts are used in manufacturing, projects etc to
have a bird5s eye view of the progress.
(elow is a modied antt chart used for keeping track of an industrial
manufacturing project.
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antt )hart *+ample with =egend
Bo& it &or.s
A. "asks I 2hows the breakdown of tasks re-uired to complete this
manufacturing project. "his particular project is divided into @ sections8
esigning
Purchasing
anufacturing
(. =egend I 2hows what the colors signify in parts and *.
reen8 #n "rack I
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>ed8 Not on track I "he factory ! N#" )#P=*"* task according
to schedule and the task has e+tended beyond its completion date.
(lue8 )omplete I
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Although it has become customary to call all arrow diagrams P*>"
networks, strictly speaking the P*>" method makes use of probability
techni-ues, whereas )P does not.
!n other words, with P*>" it is possible to calculate the probability that an
activity will be completed by a certain time, whereas that is not possible
with )P.
? PERT stands forPro$ram E"auation and Re"ie& Tec#nique' T#e numbered circes represent tas.s or miestones in
a project' T#e arro&s s#o& t#e sequence of t#ese tas.s' T#e time to do a tas. is s#o&n near t#e
arro&' T#e critica pat# in t#e c#art s#o&n abo"e is dra&n &it# red arro&s' PERT c#arts dispay
tas. dependencies, s#o&in$ ic# tas.s need to be done before ot#ers can be started' CPM stands
for Critica Pat# Met#od'@
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An activit$5on5node net#or& as beo#:
Project +et#or&ing for (ouse: e%ample "he network in the top upper half of
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*vents are not shown in activity7on7node networks unless they are
milestone points in the project at which major portions of the work are
completed.
Actually, it simply happens that the above two schemes were developed
by di0erent practitioners separately. "hey both get the same results in
guring . (oth forms are still used, although activity on7node is used a bit
more than the other, simply because much of todays personal computer
software are programmed to use node notation.
"he main advantage is that these can tell whether it is possible to meet
an important project completion date, and can also tell e+actly when
various tasks must be nished in order to meet that deadline.
" determine the critical path, which is dened as the
longest series of activities 3that cant be done in parallel4 and which
therefore governs how early the project can be completed.
P*>" and )P notify which activities will determine the end date, and help
guide how the project should be managed. 1owever, it is never good to
get carried away with scheduling, spending all time updating, revising,
and so on.
"he scheduling software in use today should be viewed as a tool, and
managers should not become slaves to the tool. !t is also very easy to
create schedules that look good on paper but dont work in practice. "he
main reasons are resources are not available, scope and priorities change
3something is forgotten, not feasible, was not well researched, surprises
arising from nowhere, added Ewish listsE 4 often and constraints in many
other forms not allow to do the work when it comes due.
e'nitions of +et#or& TermsA)"lOl"L8 An activity always consumes time and resources. *+amples8
paperwork, labour negotiations, machinery operations, and lead times forpurchased parts or e-uipment.
)>!"!)A=8 A critical activity or event is one that must be achieved by a
certain time, having no latitude 3slack or oat4 whatsoever.
)>!"!)A= PA"1 8 "he critical path is the longest path through a network
and determines the earliest completion of project work.
*O*N"28 (eginning and ending points of activities known as events. An
event is a specic point in time. *vents are commonly denoted graphically
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by a circle and may carry identity nomenclature 3e.g., words, numbers,
alphanumeric codes4.
!=*2"#N*8 An event that represents a point in a project of special
signicance. Bsually it is the completion of a major phase of the work.
Project reviews are often conducted at milestones.
N*"G#>F8 Networks are called arrow diagrams. "hey provide a graphical
representation of a project plan showing the relationships of the activities.
T2P T 132A/!+ P3624T "+ MA772T
"2+T"T"2:E!ampe ard 7e"eopment Project
)P diagram for yard project.
E) H Eary )tart 6) H 6ate )tart E0 H Eary 0inis# 60 H 6ate 0inis# 7I H
7uration ?of t#e tas.@
Ghile planning going in too much detail leads to avoidable troubles, but if plan in too little detail, one might as well not bother.
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Practically, create schedules showing tasks with no. of weeks duration.
"o have a duration for never completing such schedules on time is
disastrous. "o do the back7end load because knowledge work is harder to
track than tangible work.
"here are two ways to develop a schedule.
#ne is to begin at the end and work backward to arrive at the beginning.
"he second method is to start at the beginning and work toward the end.
Not be prey to Q garbage7in, garbage7outM malady.
"his small project might be thought of having three phases8 preparation,
e+ecution, and cleanup.
"here are three preparation tasks8 pick up trash, put gas in e-uipment,
and get out hedge clipper.
2chedules should be cleanup tasks include bagging grass, bundling,
clippings, and hauling trash to the dump.
+et#or& 3ules!n order to compute network start and nish times, only two rules apply toall networks. #ther rules are applied by the scheduling software itself. "hese are strictly a function of the software and are not applied to allnetworks.
>ule ?. (efore a task can begin, all tasks preceding it must be completed.
>ule $. Arrows denote logical precedence.
2lements of uccessful Project Management "here is no single process that makes a project successful.!t is the careful orchestration of a number of di0erent elements. "he factors that lead to successful projects include8
Ceary de%ned $oas and objecti"esA &e>de%ned project mana$ement process
A pro"en set of project mana$ement toosA cear understandin$ of t#e roe of project mana$ement
"he project manager has a broad array of behavioural and managementtechni-ues to choose to use techni-ues that ensure high7-uality, on7timedeliverables that are accepted by the business and that t the conditionsand environment.
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13"2F "4U"+ + (83 P!23 P3624T:
T#e #ydroeectric po&er projects construction incudes, in
addition to "arious ot#er parameters1•
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• )ommissioning
(est 2ite 2election, )alculations to conrm 2election
)orrectness,
3P4
A remote "ie& of BPP TBAN2)