Learning Objectives

• Understand the growing need for better

Project Management.

• Define the term ‘ Project’; provide

examples, list various project attributes, and
describe the triple constraint of projects.
 Learning Objectives

• Describe project management and discuss

key elements of the project management
framework, including project stakeholders,
the project management knowledge areas,
common tools and techniques and project
success factors.
• Understand the role of the Project Manager
by describing what project managers do,
what skills they need and the career field.
 Learning Objectives

• Describe the project management profession,

including its history, the role of professional
organizations such as the Project
Management Institute, the importance of
certification , ethics, and the growth of
project management software.
 What is a Project?

• A project is “a temporary endeavor

undertaken to create a unique product,
service, or result.”

• A project ends when its objectives have been

reached, or the project has been terminated.

• Projects can be large or small and take a

short or long time to complete.
 The Project
An activity which has

 Definite starting point.

 Definite ending point.
 Designed to achieve a specific objective

A project may refer to an investment on

which resources are used to create assets
that will produce benefits over an
expanded period of time.
 Project Attributes

• A project:
– Has a unique purpose.
– Is temporary.
– Is developed using progressive elaboration.
– Requires resources, often from various areas.
– Should have a primary customer or sponsor.
• The project sponsor usually provides the direction and
funding for the project.
– Involves uncertainty.
 Project Cycle

Identification

Evaluation Preparation

Appraisal
Monitoring

Approval
Implementation
 Project Stakeholders
• Stakeholders are the people involved in or
affected by project activities.
• Stakeholders include:
– Project sponsor
– Project manager
– Project team
– Support staff
– Customers
– Users
– Suppliers
– Opponents to the project
 Project Phases & the Life Cycle

• A project life cycle is a collection of project

phases that defines:
– What work will be performed in each phase.
– What deliverables will be produced and when.
– Who is involved in each phase.
– How management will control and approve work
produced in each phase.
• A deliverable is a product or service
produced or provided as part of a project.
 More on Project Phases
• In the early phases of a project life cycle:
– Resource needs are usually lowest.
– The level of uncertainty (risk) is highest.
– Project stakeholders have the greatest opportunity
to influence the project.
• In the middle phases of a project life cycle:
– The certainty of completing a project increases.
– More resources are needed.
• In the final phase of a project life cycle:
– The focus is on ensuring that project requirements
were met.
– The sponsor approves completion of the project.
 What is Project Management?

• Project management is “the application of

knowledge, skills, tools and techniques to
project activities to meet project
requirements.”*

*PMI, A Guide to the Project Management Body of Knowledge

(PMBOK® Guide) (2004), p. 8.
 History of Project Management

• Some people argue that building the Egyptian

pyramids was a project, as was building the
Great Wall of China.

• Most people consider the Manhattan Project

to be the first project to use “modern” project
management.
 Introduction
• Many organizations today have a new or renewed
interest in project management.
• Computer hardware, software, networks, and the use
of interdisciplinary and global work teams have
radically changed the work environment.
• The U.S. spends $2.3 trillion on projects every year,
or one-quarter its gross domestic product, and the
world as a whole spends nearly $10 trillion of its
$40.7 gross product on projects of all kinds.*

*PMI, The PMI Project Management Fact Book, Second Edition, 2001.
 Do We Need Project Management ?
 Is the job large or complex ?
 Are the constraints tight ?
 Does the job require integration of
several activities ?
 How many boundaries must be
crossed ?
 Are there any important
environmental considerations?
 Advantages of Using Formal
Project Management
• Better control of financial, physical, and human
resources.
• Improved customer relations.
• Shorter development times.
• Lower costs.
• Higher quality and increased reliability.
• Higher profit margins.
• Improved productivity.
• Better internal coordination.
• Higher worker morale (less stress).
 Project Management Process Groups

• A process is a series of actions directed toward a particular

result.
• Project management can be viewed as a number of
interlinked processes.
• The project management process groups include:
– Initiating processes
– Planning processes
– Executing processes
– Monitoring and controlling processes
– Closing processes
Level of Activity and Overlap of Process
Groups Over Time
 Project and Program Managers

• Project managers work with project sponsors,

project teams, and other people involved in
projects to meet project goals.
• Program: “A group of related projects managed
in a coordinated way to obtain benefits and
control not available from managing them
individually.”
• Program managers oversee programs and often
act as bosses for project managers.
 The Triple Constraint
• Every project is constrained in different ways by
its:

– Scope goals: What work will be done?

– Time goals: How long should it take to complete?

– Cost goals: What should it cost?

• It is the project manager’s duty to balance these

three often-competing goals.
 The Triple Constraint of Project
Management

Successful project
management means
meeting all three
goals (scope, time,
and cost) – and
satisfying the
project’s sponsor!

23
Project Management Framework

24
Relationships Among Process Groups
and Knowledge Areas (cont’d)

25
Relationships Among Process Groups
and Knowledge Areas

26
Sample Enterprise Project Management Tool

27
 Nine Project Management
Knowledge Areas
• Knowledge areas describe the key competencies
that project managers must develop.
– Four core knowledge areas lead to specific project
objectives (scope, time, cost, and quality).
– Four facilitating knowledge areas are the means
through which the project objectives are achieved
(human resources, communication, risk, and
procurement management).
– One knowledge area (project integration
management) affects and is affected by all of the
other knowledge areas.
– All knowledge areas are important!
Project Management Tools and Techniques

• Project management tools and techniques assist

project managers and their teams in various
aspects of project management.
• Specific tools and techniques include:
– Project charters, scope statements, and WBS (scope).
– Gantt charts, network diagrams, critical path
analyses, critical chain scheduling (time).
– Cost estimates and earned value management (cost).
 SAMPLE GANTT CHART
WBS (Work Break Down Structures)

30
 Why the Improvements?
“The reasons for the increase in successful
projects vary. First, the average cost of a project
has been more than cut in half. Better tools have
been created to monitor and control progress and
better skilled project managers with better
management processes are being used. The fact
that there are processes is significant in itself.”*

*The Standish Group, “CHAOS 2001: A Recipe for Success” (2001).

 Project Success Factors

1. Executive support 7. Firm basic requirements

2. User involvement
3. Experienced project
manager
4. Clear business objectives
5. Minimized scope
6. Standard software
infrastructure
8. Formal methodology
9. Reliable estimates
10. Other criteria, such as
small milestones, proper
planning, competent
staff, and ownership
 The Role of the Project Manager

• Job descriptions vary, but most include

responsibilities such as planning,
scheduling, coordinating, and working with
people to achieve project goals.

• Remember that 97 percent of successful

projects were led by experienced project
managers.

33
 Fifteen Project Management Job Functions
• Define scope of project.
• Identify stakeholders,
decision-makers, and
escalation procedures.
• Develop detailed task list
(work breakdown structures).
• Estimate time requirements.
• Develop initial project
management flow chart.
• Identify required resources
and budget.
• Evaluate project requirements.
• Identify and evaluate risks.
• Prepare contingency plan.
• Identify interdependencies.
• Identify and track critical
milestones.
• Participate in project phase review.
• Secure needed resources.
• Manage the change control
process.
• Report project status.
 Suggested Skills for Project Managers

• Project managers need a wide variety of skills.

• They should:

– Be comfortable with change.

– Understand the organizations they work in and with.

– Lead teams to accomplish project goals.

 Suggested Skills for Project Managers

• Project managers need both “hard” and “soft”

skills.

– Hard skills include product knowledge and

knowing how to use various project management
tools and techniques.

– Soft skills include being able to work with

various types of people.
 Suggested Skills for Project Managers

• Communication skills: Listens, persuades.

• Organizational skills: Plans, sets goals, analyzes.
• Team-building skills: Shows empathy, motivates,
promotes esprit de corps.
• Leadership skills: Sets examples, provides vision
(big picture), delegates, positive, energetic.
• Coping skills: Flexible, creative, patient, persistent.
• Technology skills: Experience, project knowledge.
 Media Snapshot – Good Project Management
Skills from The Apprentice

• Leadership and • Be a team player.

professionalism are crucial.
• Know what your sponsor
expects from the project,
and learn from your
mistakes.
• Trust your team and
delegate decisions.
• Know the business.
• Stand up for yourself.
• Stay organized and don’t be
overly emotional.
• Work on projects and for
people you believe in.
• Think outside the box.
• There is some luck involved
in project management, and
you should always aim high.
Most Significant Characteristics of Effective and
Ineffective Project Managers

Effective Project Managers Ineffective Project Managers

• Leadership by example • Sets bad example
• Visionary • Not self-assured
• Technically competent • Lacks technical expertise
• Decisive • Poor communicator
• Good communicator • Poor motivator
• Good motivator
• Stands up to upper
management when
necessary
• Supports team members
• Encourages new ideas
 Importance of Leadership Skills
• Effective project managers provide
leadership by example.
• A leader focuses on long-term goals and big-
picture objectives while inspiring people to
reach those goals.
• A manager deals with the day-to-day details
of meeting specific goals.
• Project managers often take on both leader
and manager roles.
 Project Management Office (PMO)
• A PMO is an organizational group responsible for coordinating
the project management function throughout an organization.
• Possible goals include:
– Collect, organize, and integrate project data for the entire
organization.
– Develop and maintain templates for project documents.
– Develop or coordinate training in various project
management topics.
– Develop and provide a formal career path for project
managers.
– Provide project management consulting services.
– Provide a structure to house project managers while they are
acting in those roles or are between projects.
 The Project Management Profession

• Professional societies such as the Project

Management Institute (PMI) have grown
significantly.
• There are specific interest groups in many areas,
such as engineering, financial services, health
care, and IT.
• Project management research and certification
programs continue to grow.
 Project Management Certification

• PMI provides certification as a Project Management

Professional (PMP).
• A PMP has documented sufficient project
experience, agreed to follow a code of ethics, and
passed the PMP exam.
• The number of people earning PMP certification is
increasing quickly.
• PMI and other organizations are offering new
certification programs
 Growth in PMP Certification, 1993-2003

80,000 76,550

70,000
60,000
52,443
50,000
# PMPs

40,000 40,343

30,000 27,052

20,000 18,184

10,000 6,415
10,086
4,400
1,900 2,800
1,000
0
1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003

Year
Information 44
Technology Project
 Project Execution
• Project execution usually takes the most time and
resources.
• Project managers must use their leadership skills to
handle the many challenges that occur during project
execution.
• Many project sponsors and customers focus on
deliverables related to providing the products,
services, or results desired from the project.
• A milestone report can keep the focus on completing
major milestones.
 Project Monitoring and Controlling

• Involves measuring progress toward project

objectives, monitoring deviation from the plan,
and taking corrective action to match progress
with the plan.

• Affects all other process groups and occurs

during all phases of the project life cycle.

• Outputs include performance reports, requested

changes, and updates to various plans.
 CONCEPTUAL DIFFERENCE
• Monitoring (M) • Evaluation (E)

- Checks progress - Measures performance

towards output targets in terms of objectives

- Stresses conversion of - Emphasizes achievement

inputs to outputs of overall objectives

- Reports on current - Provides in depth

progress at short assessment of
intervals for immediate performance for future
corrective action feedback
 PRACTICAL DIFFERENCE
• Monitoring (M) • Evaluation (E)

- Keeps track of daily - Takes long range view

activities through in depth study
– a continuous – one time function
function

- Accepts objectives, - Questions pertinence &

targets and norms validity of project
stipulated in the objectives / targets
project documents
 MONITORING CLASSIFICATION
Internal Monitoring
Works like an eye of project management to
ensure the successful and timely completion
of the project.

External Monitoring
Refers to supervision and observation of a
project from the view point of higher level
authorities who are more concerned with the
overall development and progress of the
project.
 BENEFITS OF INTERNAL MONITORING

i) Sorting out various problems which

hinder or might hinder the progress
of the project.
ii) Devising ways and means to monitor
the progress of the project.
 iii) Co-ordination with outside agencies.
Methods / Techniques of Internal Monitoring

 Programme Evaluation and Review

Technique (PERT)

 Critical Path Analysis (CPA)

 Critical Path Method (CMP)

 Critical Path Planning (CPP)

 Use of Gantt Bart Charts

 Physical and Financial Progress

 A comparison should be made of the

planned progress with the actual
progress.

 Charts and diagrams should be used for

such a comparison where it is possible.
 RELEASE TREND
Typical Project

100

80
Releases

60

40

20

0
1 2 3 4 5 6 7 8 9 10 11 12

Time

Requirement Release
 RELEASE TREND
Project Requiring Upfront Releases

100

80
R e le a s e s

60

40

20

0
1 2 3 4 5 6 7 8 9 10 11 12
Tim e

Requirement Release
 Project Closing
• Involves gaining stakeholder and customer
acceptance of the final products and services.
• Even if projects are not completed, they should be
formally closed in order to reflect on what can be
learned to improve future projects.
• Outputs include project archives and lessons
learned, which are part of organizational process
assets.
• Most projects also include a final report and
presentation to the sponsor or senior management.
 IMPLEMENTATION ISSUES
 Unclear or inadequate definition of requirements
 Weak Conceptual Planning & Preparation of PC-I
 Poor initial appraisal, Scrutiny & Evaluation
 No Integration between Physical Targets and Financial
Phasing
 Confusion & lack of responsibility
 Non Synchronized Coordination
 Capacity of Utilization
 Physical Targets not properly prepared
 GENERAL EXECUTIONAL PROBLEMS
• Appointment of suitably qualified PDs
• Poor planning, management & implementation.
• Failure to use available techniques (because of lack of skill,
resources etc.)
• Inadequate information flow / Reporting
• Failure of Consultants & Contractors.
• Faulty Designs , equipments, material and workmanship.
• Payment Procedure
• Improper Supervision by Consultant/PD/Works
• Labour Troubles
• Accident and bad weather
 Impacts of Delayed Implementation
• The projects implementation period will enhance and also
effect the pace of progress of on-going contracts.
• The University will loose opportunity cost since the planned
academic programmes gets delayed.
• The Cost of materials and equipment escalate exponentially.
• The pace gained on matured projects will be lost and delay
and cost escalations arise.
• This will demoralize the mobilized consultants & contractor
and also effect the HRD component.
• The projects will not take off as per planning ultimately
loose opportunity cost.
 Standard Guidelines for
Implementation of Development
Projects
 Step – I Appointment of Project Director
• For successful implementation, the Project
Director is a key position to be filled in the
organizational set-up.

• As per decisions of National Economic Council

(NEC) of July 04, 1988, further endorsed by the
CDWP on March 01, 2008 that a suitably qualified
Project Director should be appointed in each
project (CDWP Level) who should not normally
be transferred during the currency of the project.

Cont’d
 Step – I Appointment of Project Director

• The Project Director should be delegated full

Administrative and Financial powers commensurate
with the level of his/her responsibility and size of the
project given to him/her for implementation.

• For efficient technical and administrative control, the

Project Director ought to be well-versed in the specific
field with long and rich experience gained on similar
projects executed in the past under similar conditions.
 Step – II Review of PC-I

• Checking of administrative approval in letter and

spirit especially check financial allocation and
arithmetic’s.
• Review and assessment of the PC-I allocations v/s
facilities proposed.
• Preparation of list of infrastructural development
requirements and estimation as per PC-I proposed
rates.
 Step – III Scheduling

Preparation of physical schedule of

activities (The scheduling of activities
and availability of physical facilities are
interlinked with the completion period
and Implementation Schedule should be
based on Bar Charts/PERT/CPM.)
 Step – IV Hiring of Consultants for Design & Construction
Supervision
• Advertisement for Pre-qualification of Consultants, approval
and press appearance
• Receipt of Applications
• Scrutiny and Evaluation of Applications
• Pre-qualification Evaluation by the Committee (Works /
Building / Campus)
• Approval of Prequalified Consultants by Competent
Authority
• Formulization of ToR’s for the Consultants to be hired for
Planning, Designing and Construction Supervision.
• Finalization of TOR's & Approval by the Competent
authority
• Issuance of TOR's to Pre-qualified Consultants Cont’d
 Step – IV Hiring of Consultants for Design & Construction
Supervision

• Receipt of Technical and Financial Proposals

• Opening of Technical Proposals
• Scrutiny & Evaluation of Technical Proposals
• Opening of Financial Proposals
• Final Evaluation Report (Technical & Financial)
• Approval by the Competent Authority
• Letter of Intent & Draft Agreement
• Contract Negotiations (if applicable)
• Audit & Legal Vetting
• Contract Signing & Commencement of Services
 Step – V Design Development
• Survey & Investigations (Topographic Survey & Geo-Tech
Investigations)
• Master Planning if required including Zoning Plan, Schematic /
Line Plan
• Approval of Master Plan by Competent Authority
• Preparation of conceptual design based on reviewed PC-I & as per
step -II
• Preparation of Preliminary Architectural Design options
• Presentation in the End User Meeting and Building/Campus
Committee
• Finalization of Architectural Design
• Preparation of Detail Designs and Technical specifications

Cont’d…
 Step – V Design Development
• Preparation of Engineer’s Estimate’s / BoQ by adapting
either Present Market Survey or a pre-tender quotation or in
vogue updated schedule of rates of the respective province.
(Refer 4.14 k of “Manual for Development Plan” Planning
and Development Division, Government of Pakistan.)
• Approval from the University / Institute
• Finalization of Tender documents (Planning & Development
Division, GoP, has issued an SRO bearing No.
8(60)WR/PC/2008 dated February 12, 2008 regarding
Implementation of Revised PEC Standard Bidding/Contract
Documents)
• Review and approvals
N.B. The project implementation agencies/departments
should seek the approval of the competent authority as soon
as they consider change either in cost and scope of work was
imminent
 Step – VI Tendering and Award
• Advertisement for Prequalification
• Receipt of Applications
• Scrutiny / Evaluation of Applications
• Approval of Prequalification
• Issuance of Tender Documents
• Receipt of Tenders
• Opening & Scrutiny
• Evaluation by the Committee
(Works/Building/Campus)
• Award & Contract
• Approval by Competent Authority
 Step – VII Construction Supervision
• Submission of Bid Bond, Performance Guaranty etc.
• Mobilization, Site Clearance & Layout of Designs
• Utility Connections
• Excavation in Foundation
• Structural Works
• Sanitary Works
• Electrical Works
• Plastering
• Wood Works
• Finishing Works
• External Development & Landscape
• Handing Over, Defect List
• Rectifications
 Project Coordination
Completion of the project is dependent upon
completion of some other facilities which are to be
provided by the organizations like;
• Provision of electricity,
• roads,
• Sanitation & sewerage, and
• Telephone & Internet

Completion of all these activities, even if these are

not critical, needs better coordination for the
success of the project.
 PROJECT EVALUATION
Means to identify, analyze and assess
projects costs and benefits on completion of
the project.

The basic objective of evaluation is to

ascertain the real worth of a project and to
assess the effects/impacts and benefits being
achieved. The examination of different
aspects of the project can provide important
lessons of experience for new projects.
 TYPES OF EVALUATIONS

 Situation Analysis
 Effect Analysis
 Efficiency Analysis
 Impact Analysis
Situation Analysis
Situation Analysis is the simplest form of
analysis where all additional benefits are
assumed to results from the investment.
Effect Analysis
Effect Analysis is required to isolate the
specific contribution of the investment. Such
an exercise will require the projection of
benefits over the life of the project under
'without' project conditions but taking into
account other factors. In summary a
Situation Analysis is “' before and after”
 Effect Analysis
Effect Analysis is under "with and
without" project conditions.
Efficiency Analysis
Efficiency Analysis is an integral part of
evaluation exercise where the actual and
anticipated costs and benefits are compared
with one another and in relation to the actual
and anticipated benefits and cost.