PROJECT & PROJECT MANAGEMENT:

AN OVERVIEW

Dr. Muhammad Rizwan Khan

PRODUCTION ENGINEERING & OPERATIONS MANAGEMENT LAB 1

What is a Project?
 Projects are unique.
 Projects are temporary in nature and have a definite beginning
and ending date.
 Projects are completed when the project goals are achieved.
 A successful project is one that meets or exceeds the
expectations of your stakeholders.
 Project is Progressively Elaborated;
 Distinguishing characteristics of each unique project will be
progressively detailed as the project is better understood.

2
What is a Project?
 A complex, non-routine, one-time effort limited by time,
budget, resources, and performance specifications
designed to meet customer needs.
(OR)
 A project is a temporary endeavor undertaken to create a
unique product, service, or result.

3
 Elements of Project
Complex, one-time processes
Limited by budget, schedule,
and resources
Developed to resolve a clear
goal or set of goals
Customer-focused

Every project is constrained in different ways by its:

Scope: What work will be done as part of the project? What unique product, service,
or result does the customer or sponsor expect from the project?
Time: How long should it take to complete the project? What is the project’s
schedule?
Cost: What should it cost to complete the project? What is the project’s budget?
4
Project Stakeholders

A Project is successful when it achieves its objectives and

meets or exceeds the expectations of the stakeholders.
Stakeholders are those folks (or organizations) with a vested
interest in your project.
The PROJECT SPONSOR, generally an executive in the
organization with the authority to assign resources and enforce
decisions regarding the project, is a Stakeholder.
5
Project Vs. Operation
A set of interrelated actions and activities that are performed to
achieve a prespecified set of products, results, or services
Guide to the Project Management – Body of Knowledge, the Project Management Institute, 4th . Ed., 2010

PROJECT OPERATION
 Take place outside the process world  Ongoing, day-to-day activities
 Unique and separate from normal  Use existing systems, properties, and
organization work capabilities
Projects: Examples Routine, Repetitive Work: Examples
1. Writing a term paper 1. Taking class notes
2. Developing a supply-chain information system 2. Responding to a supply-chain request
3. Designing an iPod that is approximately 2 X 4 3. Routine manufacture of an Apple iPod
inches, interfaces with PC, and stores 10,000
songs.
6
Is it a Project or Operation?
Consider the following scenario:
You work for a wireless phone provider, and the VP of marketing approaches you
with a fabulous idea – “fabulous” because he’s the big boss and because he thought
it up. He wants to set up Stalls in local grocery and big–box stores as mini–offices.
These offices will offer customers the ability to sign up for new wireless phone
services, make their wireless phone bill payments, and purchase equipment and
accessories. He believes that the exposure in grocery stores will increase awareness
of the company’s offerings. After all, everyone has to eat, right? He told you that the
board of directors has already cleared the project, and he will dedicate as many
resources to this as he can. He wants the new Stalls in place in 12 stores by the end
of this year. The best news is he has assigned you to head up this project.
 Your first question should be “IS IT A PROJECT?”

7
Is it a Project or Operation?
1. Projects are unique.
2. Projects are temporary in nature and have a definite beginning and ending date.
3. Projects are completed when the project goals are achieved.
4. A successful project is one that meets or exceeds the expectations of your stakeholders.
IS IT UNIQUE? Yes, Because the Stalls don’t exist now in the local grocery stores. This is a
new way of offering the company’s services to its customer base. Although the service the company
is offering isn’t new, the way it is presenting its services is.
DOES THE PROJECT HAVE A LIMITED TIME FRAME? Yes, the start date of
this project is today, and end date is the end of this year. It is a temporary endeavor.
IS THERE A WAY TO DETERMINE WHEN THE PROJECT IS
COMPLETED? Yes, the stalls will be installed, and services will be offered from them. Once all
the stalls are intact and operating, the project will come to a close.
IS THERE A WAY TO DETERMINE STAKEHOLDER SATISFACTION?
Yes, the expectations of the stakeholders will be documented in the form of deliverables and
requirements during the Planning processes. Some of the requirements the VP noted are that
customers can sign up for new services, pay their bills, and purchase equipment and accessories.
These deliverables and requirements will be compared to the finished product to determine whether
it meets the expectations of the stakeholders. 8
Project Management
Definition-1
A method and a set of techniques based on the accepted principles of management used
for planning, estimating and controlling work activities to reach a desired end result on
time – within budget and according to specification.
Robert K. Wysocki / Robert Beck Jr. / David B. Crane, Effective Project Management, 2. ed., John Wiley & Sons, 2002, p. 79

Definition-2
Project management is the planning, organizing, directing, and controlling of company
resources for a relatively short-term objective that has been established to complete
specific goals and objectives.
Harold Kerzner, Project Management: A Systems Approach to Planing, Scheduling and Controlling, John Wiley & Sons, Inc.,
New York et. al., 7. ed, 2001, p. 4

9
Skills every good Project Manager needs
Project manager’s are like small business owners
General management skills
Application skills
Communication skills
Organizational and planning skills
Budgeting skills
Conflict management (Problem Solving) skills
Negotiation and influencing skills
Leadership skills
Team building and motivating skills

10
Project Management Processes
Based on Plan-do-check-act cycle (as defined by Shewhart and
modified by Deming)
The project management processes are aggregated into five groups, defined as
the project management process groups
Initiating
Planning
Executing
Monitoring and Control
Closing

11
Project Management Processes Groups
Initiating
Defines and authorizes the project or a project phase
Planning
Defines and refines objectives, and plans the course of action required to attain the
objectives and scope that the project was undertaken to address
Executing
Integrates people and other resources to carry out the project management plan for the
project
Monitoring and Control
Regularly measures and monitors progress to identify variances from the project
management plan so that corrective action can be taken when necessary to meet project
objectives
Closing
Formalizes acceptance of the product, service or result and brings the project or a project
phase to an orderly end
12
Project vs. Product

13
Project Life Cycle

A deliverable is a
product or service
produced or
provided as part of a
project

14
Project Life Cycle (Cont…)
HANDOFFS:
Project phases evolve through the life cycle in a series of phases
sequences called handoffs, or technical transfers. The end of one
phase sequence typically marks the beginning of the next.

FAST TRACKING:
 There are times when phases are overlapped to shorten or
compress the project schedule. This is called Fast Tracking.
 Fast tracking means that a later phase is started prior to
completing and approving the phase, or phases, that come before it.
 This technique is used to shorten the overall duration of the
project

15
Project Life Cycle (Cont…)
PHASE-TO-PHASE RELATIONSHIPS:
There are three basic types of phase – to – phase relationships :
A Sequential relationship: where a phase can only start once the
previous phase is complete.
An Overlapping relationship: where the phase starts prior to
completion of the previous one ( Fast tracking ). Overlapping phase may
increase risk and can result in rework.
An Iterative relationship: where only one phase is planned at any given
time and the planning for the next is carried out as work progresses on the
current phase and deliverables.

16
What is a Program?
A program is basically a group of related projects managed
in a coordinated way to obtain benefits and control not
available from managing them individually.

Schools Constuction Teachers Hiring

Elementry
Facilities Maintenance Education Teachers training

Private schools asst Special Initiatives

17
What is a Portfolio?
• A collection of projects or programs and other work that are
grouped togather to facilitate effective managmement of that work
to meet strategic business objecives.
• The projects or program of the portfolio may not necessarily be
interdependent or directly related.

18
Example: Project-Program-Portfolio
An infrastructure firm with strategic objective of

“maximizing the return on its investments„

Have mix of projects of oil and gas, power, roads, rail.

For this mix, the firm may choose to manage related proejects as one program.

 All of the power projects may be grouped togather as power program. Similary, all of
the water projects may be grouped togather as a water program.

The overall company business come under portfolio mgt.

19
Organizational Structure

Projectized
Strong
Matrix
Balanced
Matrix
Weak
Matrix

Functional

20
Functional Organization
 The organization is grouped by areas of specialization within different functional areas.
 Projects generally occur within a single department.
 Information required from other department will be routed through departmental heads.
 Team members complete project work in addition to normal department work.
ADVANTAGES
Easier management of specialists
Team member report to only one supervisor
Similar resources are centralized
Clearly defined career path
DISADVANTAGES
People put more emphasis on specialty
rather than on the project
No career path in project management
Project manager has little or no authority
21
Projectized Organization
 The entire company is organized by projects.
 The project manager has control of projects.
 Personnel are assigned and report to a project manager.
 Team members complete only project work and when its over they don't have HOME.
 Communication generally occurs only within the project.

ADVANTAGES
Efficient project organization
Loyalty to the project
More effective communication than
functional
DISADVANTAGES
No “home” when project is completed
Duplication of facilities and job functions
Less efficient use of resource
22
Weak Matrix Organization
 Two Bosses
 Team members reports to Project Manager and Functional Manager
 Team members do project work in addition to normal departmental work
 Power rests with functional manager
 Project Manager plays a role of:
 Project Expediter: Cannot take decision. Staff assistant and Communication coordinator.
 Project Coordinator: Similar to Project Expeditor except has some power to take decision.

23
Balanced Matrix
Two Bosses
Team members reports to Project Manager and Functional Manager
Team members do project work in addition to normal departmental work
Power is shared between the functional and project manager

24
Strong Matrix
Power rests with the Project Manager

25
Matrix Organization
ADVANTAGES
Improved project manager control over resources
More support from functional organization
Better horizontal and vertical distribution of information than
functional
DISADVANTAGES
Extra administration required
More than one boss for project teams
More complex to monitor and control
Higher potential for conflict

26
Project Knowledge Areas

27
Project Knowledge Areas (Cont…)
PROJECT INTEGRATION MANAGEMENT:

PROJECT SCOPE MANAGEMENT:

PROJECT TIME MANAGEMENT:

28
Project Knowledge Areas (Cont…)
PROJECT COST MANAGEMENT:

PROJECT QUALITY MANAGEMENT:

PROJECT HUMAN RESOURCE MANAGEMENT:

29
Project Knowledge Areas (Cont…)
PROJECT COMMUNICATIONS MANAGEMENT:

PROJECT RISK MANAGEMENT:

PROJECT PROCUREMENT MANAGEMENT:

30
QUESTIONS

31