Project mgt
Theory of project mgt by PERT/CPM PERT/CPM Techniques Techniques 1.
What is project
1.
Projec ojectt is any any task ask hich ich has got got !e"n !e"nit ite e begi begin nning ning an! pre!ictab#e en! %t is is temp tempora orary ry en! en!ea ea&o &orr un!e un!ert rtak aken en to to crea create te uni uniqu que e PR'()CT or *ER+%CE *ER+%CE Project a#so !e"ne! as a unique set of co-o co-or!inate interre#ate! acti&ities un!ertaken by an organiation to meet !e"ne! objecti&es that has an agree! start "nish time is constraine! by cost an! resources has speci"e! performance requirements requirements
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Characteristics of Project
1. $. ,. 0. . 2.
Projec ojectt has has !e"n !e"nit ite e sta start rt "ni "nish sh.. %t con consi sists sts of of many many acti acti&i &itie ties s hic hich h are are inte interr rre# e#ate ate! ! to one another. They ha&e to be carrie! out in certain #ogica# or technica# sequence i.e. some acti&ities are comp#ete!. Project consists of e## !e"ne! co##ection of jobs acti&ities or task hich hen comp#ete make the en! of project. Eac Each acti acti&i &itty is &ie &iee e! as a job re requir quiriing time time an! an! resources. The acti&ities can be starte! terminate! in!epen!ent#y of each other e&en though the resources emp#oye! on the &arious acti&ities are not in!epen!ent i.e. the acti&ities to be comp#ete! ithin a gi&en resource i.e. constraint
3.
The The jobs jobs are are or!e or!ere re! ! i.e. i.e. The They y must must be pe perfor rforme me! ! in technica# or!er or sequence the roa! #e&e#ing can4t he !one un#ess roa! be! is rea!y
To!ay To!ay the !e"nition of project has e5pan!e! to inc#u!e recur ecurri ring ng situ situat atio ions ns one one time time cris crisis is an! an! !ea# !ea#in ing g ith ith !i6cu#t issues Application I project & project MGT
Project Project Management7 18%t is p#anning9 organiing9 !irecting an! contro##ing of comp compan any y resou esourrces ces for for a re#at e#ati& i&e# e#y y *:'; *:';99 TERM TERM99 '<=ECT%+E* an! has been estab#ishe! to accomp#ish speci"c objecti&es $8Project mgt is the app#ication of kno#e!ge ski##9 too#s techniques to project acti&ities in or!er to meet or e5cee! cee! stak stake e ho#! ho#!er ers s nee! nee! e5pec 5pecta tati tion ons s from from project %t is app#ie! to &arious business situations that ha&e to !ea# ith comp#e5ity ho are norma##y state ho#!ers hat is ro#e o#e of a proje oject mana manage gerr &is&is->>-& &is stat state e ho#!e o#!er4 r4s s e5pectations 18 Project stake ho#!ers are 1. %n!i&i!ua#s or organiations organiations ho are are acti&e#y in&o#&e! in&o#&e! in the project $.
'r hose interests may be posite#y or negati&e#y a?ecte! as a resu#t of project e5ecution or is successfu# comp#etion
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;ey stake ho#!ers are 1. Project manager ho manager project $. Customers to ho project is institutes ,. Performing organisation ho has un!er taken project 0. Project sponsors @ho has sponsor initiate!8 . 'ners/ fun!ers 2. *upp#ie!/contractors 3. Team members of a project A. Their fami#ies B. o&ernment agencies me!ia out #ets 1D. %n!i&i!ua#s temporary or permanent #obbing organiations 11. *ociety at #arge
Managing stake ho#!er4s E5pectations is !i6cu#t because &arious stake ho#!ers ha&e !i?erent object ith each other ith project objecti&es E5am ----- arma!a !am/p#ace for Tata motors in Ca#cutta project manager has to un!erstan! these e5pectations4 an! achie&e ju!icious ba#ance in the interest of successfu# project imp#ementation Project manager has to
1. Create an en&ironment for e&ery state ho#!er to contribute his ski## kno#e!ge in !e&e#opment of a project p#an $. Fna#yses nee!s of &arious stake ho#!ers to ensure that they i## he met in the best possib#e manner
Fbsorption of a techno#ogy in C..: hich remo&e man poer !on siing ,. Fna#ye stake ho#!ers risk to#erance to !e&e#op a risk management strategy Risk of a project: [risk mgt steps] Risk: %t is a possibi#ity of unfa&orab#e or un!esirab#e e?ect of a future e&ent is on the project resu#ting in re!uction in project bene"ts or a #oss
%n or!er to manage the project risk The fo##oing steps are necessary 1. Risk i!enti"cation $. Risk ana#ysis ,. Response strategy 0. Risk monitoring an! contro#
Fpp#ication of project mgt F## business situations that ha&e !ea# ith comp#e5ity 1. Gega# o6ces $. :ospita#s ,. 'ther ser&ices 0. Tra!itiona# manufacturing "rms . Construction companies 2. Engineere! business 3. Hinancia# %nstitutions These organiation ha&e become enthusiastic about the ays in hich project mgt is impro&ing their !e#i&ery of ser&ices or creation of ne pro!ucts some typica# e5amp#es are 1. Contraction of a b#!g !am or highay $. Maintenance of oi# re"nery ,. '&er hau#ing of an FEP'PGFE 0. *e#ection procurement %nsta##ation commission of a ne Techno#ogy . (esigning of a proto type of a pro!uct 2. *etting up of a ne factory /E5pansion of e5cising factory 3. Mo!erniation of Equips / factories A. Fnnua# bu!geting / au!iting e5ercises B. %ntro!uction of a ne system I%*' BDDDJ 1D. 'rganiationa# Restructuring 11. (e&e#opment of a ne pro!uct 1$. Campaign for ne pro!uct #aunch 1,. 'rganiing FM@Fnnua# enera# bo!y meeting sa#e conference8 10. Marriage ceremony@time boun! program8
Criteria for *uccess of a project Project is sai! to be successfu# if 1. Project objecti&es are achie&e! ith in its sche!u#e! time $. ithin bu!gete! cost ,. Meeting !esire! performance/techno#ogy #e&e# hi#e uti#iing assigne! resources e?ecti&e#y e6cient#y The measurement an! comparison of actua# !e&iations or &ariances from the sche!u#e
Scope of project mgt
(ue to comp#e5ities of present business situations ha&e a!!e! pressure on the brains of !ecision maker in #arge comp#e5 project in&o#&ing no4s of inter-re#ate! acti&ities require #arge resources #ike men makes materia#s %t is not possib#e for the mgt to make e5ecute an optimum sche!u#e just by intuition or by thumb ru#e base! on organiationa# capabi#ities an! e5perience. :ence mgt has to #ook after the technique or metho!s for p#anning sche!u#ing contro##ing the project. Theory of project mgt by using PERT or CPM Techniques.
Project management ork can be !i&i!e! into fo##oing phrase. 1. P#anning $. *che!u#ing ,. F##ocation of resources 0. Contro##ing To meet the objecti&es of systematic p#anning project mgt user PERT or CPM technique app#ying netork strategy. ! P#anning7 This phase consists of
1. *etting the objecti&es of project assumptions to be ma!e $. (e&e#opments of W.<.* ork break !on structure 1. (epen!ing upon the objecti&es of mgt $. The e5tent of contro# !esire! ,. The a&ai#abi#ity of computationa# ai!s The project is acti&ities.
broken
!on into
c#ear#y !e"nab#e
,. Estimating the acti&ity !urations their resource requirement #ost 0. Estab#ishing the inter!epen!ence re#ationship beteen the acti&ities Gike- concurrent9 procee!ing9 succee!ing
$8*che!u#ing7 This consists of #aying of the acti&ities accor!ing to technica# or #ogica# sequence i.e (eci!ing the time tab#e of performance of acti&ities 18*tart "nish time for each acti&ity $8Critica# path on hich the acti&ities require specia# attention IHin! in CPM ,8*#acks / Koat for on critica# path ,8 Contro##ing7 This phase is carrie! out on#y after abo&e to phases are carrie! out thus it is fo##o up p#anning sche!u#ing 1. Making perio!ica# progress reports $. Re&ieing the progress ,. Fna#ying the status of the project 08 Fn! mgt !ecisions regar!ing up!ating9 crashing resource a##ocations E&ery time the progress of the project is re&iee! correcting action is takes if require! The project managers a#ays try to contro# acti&ities on critica# path
Allocation of reso"rces
To achie&e !esire! resu#ts e?ecti&e#y e6cient#y economica##y the use of resource is !one optima##y
F project signi"es huge comp#e5 task hich for con&ince of ingt is broken !on into sma##er e#ements referre! as acti&ities such that each of such sma##er e#ements can be !e"ne! in terms of "nite requirement of resources time #SS#$C# % PR%'#CT MA$AG#M#$T
% H F % M E
%!enti"cation Hormu#ation Fppraisa# %mp#ementation Monitoring E&a#uation
PR%'#CT MA$AG#M#$T
:o !oes projecting !i?ers for the mgt of other types manufacturing acti&ities or on '% mgt
18oa#/objects
Project has to achie&e
18 Gong term9 usua##y more $8Time horion than a year $8More strategic for p#ay thinking in&o#&e! ,8Process :as to be !e&e#ope! !esigne! ne
Manufacturing may or may not achi&e! *hort term me!ium term usua##y ith in one year Hu##y or minor !ay to !ay issues *tabi#ise! o&er a perio! of time !ue to e5perience
en! time consi!erab#e minimum uncertainty uncertainty many unknon factor Repetiti&e ork E&ery time ne 08;in! of ork not much cha##engeab#e cha##enge e mu#ti!iscip#inary team P#ant personne# to be create! a#rea!y e5ist 8Resources usua##y from the personne# is a&ai#ab#e possib#e personne# or form other !epts. Projects are Minima# or no initiate! to bring change is 28Change mgt about change / e5pecte! in set opportuties routine *ubstantia##y Comparati&e#y 38Capita# out #ays #arge sma##er arro scope A8'ut #ook of a Wi!e scope gets #imite! manager o&er a## impro&e impro&ement B8 Lua#ities To be successfu# Manufacturing of traits project manager #ess qua#ities specia# qua#ities are require! 18Wi##ingness to ma## sacri"ces $8Gea!ership ,8(ecisi&eness
Kui! situation )ncertain#y 08Con"!ence in project 8*trong ego 1D8 Type of organiation
Matri5/pure
functiona#
(h)
Project manager is equate! to an Entrepreneur Lua#ities for becoming a successfu# project manager are the same as that of an entrepreneur ho has to !ea# ith ne unknon factors un!er time pressure. F project manager shou#! ha&e fo##oing traits @page0$8 18Wi##ingness to make sacri"ces F project is in&ariab#y ri!!#e! ith numerous !i6cu#ties unanticipate! prob#ems the project manager has to sacri"ce his time energy resources to future project in an in hospitab#e en&ironment project manager4s job is a #ot of !eman!ing requires tota# commitment $8Gea!ership team bui#!ing abi#ities 1. :e has to se#ect the peop#e intereste! in orking for the project integrate them into a team he has to moti&ate their team to be successfu##y cope ith
the cha##enges frustration inherent in a ne &enture keep team spirit high $. Communication beteen team members shou#! he open free ,. :e has to so#&e conKicts ith in intergroup intergroup keep at #o #e&e# 0. :e shou#! gi&e commitments commitments from other
an!
obtain
,8(ecisi&eness7 i.e. ser&ing to sett#e the question The project has to accomp#ish many things in the atmosphere of uncertainty umerous !ecisions ha&e to be taken in quick succession on the basis of #imite! information :e !oes not ha&e history to fa## back on a e## organie! !ata base to re#y upon the Kui! situation ca##s for abi#ity to !eci!e quick#y a#so to re&ise !ecisions to a!opt to the changing en&ironment. 08Con"!ence in project7 ha&ing unboun! faith in the project insti##s con"!ence in supp#iers9 contractors9 cre!itors9 customers9 emp#oyees9 team members others. 8*trong Ego7 Project managers nee! a strong ego to cope ith the ups !ons of the project to en!ure perio!s of a!&ersity an! maintain perspecti&e hen
e&ents cost sha!o o&er the enterprise the project manager nee! a strong i!entify se#f image. 28'rganiationa# ski##7 18Preparing organiation suitab#e chart for project to be successfu# $8(e"ne span of contro# 9channe#s of Ko of information !esigning reporting re#ationships ski##s in communication conKict reso#ution hoe&er conKict some time may be hea#thy if it increases competiti&e spirit of !oing thinks ,8Project manager shou#! ha&e goo! orking re#ationship ith top mgt it is terms ith mgt !epen! on his cre!ibi#ity the importance of his project in the eyes of mgt his a&ai#abi#ity hen the mgt nee! someone to !o something important. 38 Technica# ski##7 :e shou#! be e5pert in 1. Techno#ogy $. F!ministration an! or ,. Marketing :e shou#! ha&e soun! conceptua# un!erstan!ing of a## three business en&ironment to enab#e him to take part co-or!ination the search for integrate! so#ution to the prob#ems. The un!erstan!ing i## a#so he#p him in foreseeing consequences of !ecisions take ithout ho#istic approach the kno#e!ge in a## three "e#!s is necessary as project manager has to interact ith professiona#s in a## three "e#!s.
A8 P#anning abi#ities 1. mi#king sche!u#e bu!gets $. Communication ski## information processing ski##s to !etermine resources. ,. F!ministrati&e support require! 0. Fnticipating prob#ems before they arise taking presenting measures . egotiating ith other !epartment on hen major mi#estones acti&ities i## be commitments. 2. To contro# costs e5pen!itures B8F!ministrati&e abi#ities
Project organi*ation
18Why organiation structure is require! for imp#ementation of project $8%t shos the no4s of peop#e orking at each #e&e# of hierarchy their interre#ationship hen to start. The organiationa# structure can be p#anne! once the fo##oing information is a&ai#ab#e i. %!enti"cation of sta? ho ork on project ii. %!enti"cation of !epartments hich are in&o#&e! iii. The e5isting organiation structure Fn imp point to note that there are no goo! no ba! organiation structures %t is on#y a question of hether a particu#ar structure chosen is appropriate to the peop#e of "rm or not Fny structure i## ork if peop#e are i##ing to make it ork therefore choosing the structure that matches ith beha&iora# pattern of the emp#oyees is the key ay Type of organiationa# structures 18 Tra!itiona# organiationa# structures $8Position of project #ea!ers in a organiation ,8Gine sta? organiationa# structure 08Pro!uct organiationa# structure 8Matri5 organiationa# structure 28Comp#e5 matri5 organiationa# structure 38Pure project organiationa# structure
tra!itiona#
TRA+ITI%$A, STR-CT-R# Chief E5ecuti&e
Engineer
'perations
F!ministration
Hinance
Markets
Position of organi*ation
Project
,ea.ers
in
Tra.itional
(i&isiona# Manager
(ept. Manager
(ept. Manager
(ept. %nn
,I$# STA %RGA$I/ATI%$A, STR-CT-R#
(i&isiona# Manager
Project Manager
(ept. Manager
(ept. Manager
(ept. Manager
PR%+-CT %RGA$I/ATI%$A, STR-CT-R#
enera#
Project
Project
MFTR% 'RF%NFT%' enera# Manager
Engg.
Hinance
Marketing
'peration
Project M..F
Project M..< CE'
Project M..C (irectorEngg.
(irector Hinance
(irector Marketing(irector 'peration
Project M..F
M'RE C'MPGE MFTR% *TR)CT)RE Project M..<
Project M..C
P)RE PR'=ECT 'RFF%NFT%' E5isting 'rganiation
Engg.
Procurement
Personne#
Hinance
Project Manager
Project Engg.
Project Procurement
Project Personne#
Project Hinance
E5p#ain 'rganiationa# structure of a pure project type organiation ith an organiationa# chart Enumerate its a!&antages !isa!&antages for hat type of projects such organiation is more suitab#e Pure project organiation is fu##y !e!icate! organiation for project imp#ementation an! is separate! from the parent system ith its. 1. 'n technica# sta? $. 'n a!ministration ,. i&e parent from perio!ic reports o&er&ie Personne# !emonstrate #oya#ty to A.0antages: project
The pure project type organiation is suitab#e for e5pansion / (i&ersi"cation Projects of a company that are in a comp#ete#y !i&erse "e#!. F Pure Project 'rganiation a spate !i&ision !e&e#ope! ithin the company ith in!epen!ent authority responsibi#ity for project such organiation is suitab#e for companies embarking on major !i&ersi"cation e5pansion projects genera##y at sites aay from parent organiation. 18Poer Tran project at
Thus tra!itiona# functiona# organiation is not suitab#e for imp#ementation of project because 18o sing#e in!i&i!ua# is !irect#y responsib#e for project no forma# authority $8%f !oes not pro&i!e project oriente! emphasis necessary to accomp#ish project task ,8ee!s e5cessi&e #ea! time for the appro&a# of !ecision !ue to comp#e5 co-or!ination 08(ecisions norma##y fa&ors strongest functiona# group 8There is no customer focus 28*#o response to customer nee!s 38(i6cu#t to pin point responsibi#ity as no in!i&i!ua# is gi&en responsibi#ity of success of the project nno one can ma!e accouri#ab#e A8%n!i&i!ua# moti&ation inno&ation are on #o sca#e B8Customer focus is not there because a## the !epts. Fre concerne! an#y ith those objecti&es re#ate! to their functions 1D8 Fs the project is not main acti&ity of the !ept it is !i6cu#t to moti&ate peop#e to ork har! for project 118 The ho#istic approach to the project is not gi&en 1$8 The peop#e may ha&e a ten!ency to ignore neg#ect the acti&ities hich are not !irect#y ith the functiona# !omin of the !ept The fo##oing to types of structures are suitab#e for project imp#ementation 18 pure project organiation $8 F matri5 project organiation 1. F matri5 organiation F matri5 organiation combines the attributes
% function pure project organiations refraining the basic functiona# structure. $. %f achie&es the organiation.
a!&antages
of
both
hi#e
types
of
,. %t i!enti"es in!epen!ent authority responsibi#ity for a project ith project manager. 0. There are to #ines of reporting one to functiona# hea!s other to project managers. . The project manager gets their authority from the top i.e. from @genera# manager8 as shon in "g to hom they genera##y report. 2. The project manager is gi&en the o&era## responsibi#ity for the imp#ementation of project The project manager !eci!es the tasks to be performe! the !epts. Which i## han!#e each task the responsibi#ity of #ine managers to pro&i!e an appropriate techno#ogy the right peop#e to !o the ork. 3 Fssigning task to each person is !one by project manager A The #ine managers are a#so e5pecte! to !e&e#op for the requirements of the organiation B They are a#so require! to keep track of the #atest !e&e#opment in techno#ogy up!ate techno#ogica# base 1D The project Manager has comp#ete authority responsibi#ity accountabi#ity for the success of the project
%n the tra!itiona# structure9 peop#e are informe! of their task by functiona# managers the project manager ne&er ha! any !irect ro#e in their ork is responsibi#ity as #imite! to co-or!inating !i?erent !epartment. =obs use! to be sent to !i?erent #ine manager they ere !one at !i? time in !i?erent !epts. Fs !eci!e! by #ine managers. %n the matri5 organiation a## peop#e in&o#&e! in project report !irect#y to project management an! take or!er from him on continuous basis. The project manager therefore co-or!inate easi#y an! integrate the jobs e?ecti&e#y. Matri5 form of organiation is best suite! to Oproject !ri&en organiation. i.e. organiations engage! in project imp#ementation for the c#ient as their main business #ike construction softare "rms a!&antages.
