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IISc MG 286 Project Management Introduction


This ppts is an Introduction to the IISc Course MG 286 Project Management, offered by Prof Parameshwar P. Iyer – PowerPoint PPT presentation

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Title: IISc MG 286 Project Management Introduction

Module 1 Introduction
Module I Introduction
Project Management is the art of directing and
coordinating human and material resources,
throughout the life of a project, by using modern
management techniques, to achieve pre-determined
objectives of scope, time, cost, quality and
customer satisfaction.    Project Management
Techniques 1. Project characteristics and Forms
of Management 2. The Systems Approach and its use
in conceptual design of project. 3. Quantitati
ve methods in Project Management 4.  Project
Organization and Human Resource
Management 5.  Discussion Examples and Case
Basic characteristics of an Engineering Project
  • An engineering project involves at least a single
    definable end product, usually specified in terms
    of cost, schedule and performance requirements.
  • An engineering project cuts across traditional
    organizational lines, since it needs to utilize
    skills and talents from several professions,
    disciplines and organisations
  • An engineering project is unique, in that it
    requires doing something that is different that
    what was done previously. An engineering project
    is a one time activity, never to be repeated
  • An engineering project may involve unfamiliarity,
    encompass new technology, and possess significant
    amount of uncertainty and risk.

Basic characteristics of an Engineering Project
  • An engineering project is a temporary activity
    an ad hoc organization of personnel, material,
    and facilities is assembled to accomplish an
    engineering goal once the goal is achieved,
    organization is disbanded or reconfigured to work
    on a new goal.
  • An engineering project is the process of working
    to achieve a goal during the process, project
    passes through several distinct phases called
    project life cycle resource deployment builds
    up, peaks and then declines.

from Lecture 1, Slide 4
Complexity magnitude of effort, number of
groups and organizations, diversity
expertise Time/resource commitments tend to
increase with complexity Uncertainty difficulty
in predicting the final outcome in terms of time,
cost and performance. Cost Curve Expenses
increase in proportion to both complexity and

Characteristics of a Project
Ø Definable end Product Ø Cuts across
organizations and disciplines Ø Unique, one
time Ø Unfamiliarity, uncertainty,
risk Ø Temporary, Time bound Ø Process, life cycle
Characteristics of a Project
  • Single point of responsibility and authority
    Project Manager
  • Work distributed across departments,
  • Formal Techniques of
  • Work Breakdown (WBS)
  • Scheduling
  • Costing/Budgeting
  • Monitoring/Controlling
  • Need Flexible, Dynamic, Systems Approach of

Characteristics of Project Management
  • A single person (Project Manager) heads the
    organization. Operates independently of normal
    chain of command. Organization reflects
    cross-functional, goal oriented, temporary nature
    of project.
  • Project Manager is focal point.
  • Actual work is performed by different functional
  • Project Manager/Team is responsible for
    integrating people from different disciplines
  • Project manager integrates work of functional
    managers Latter is responsible for different
    tasks, former for overall project


Characteristics of Project Management
  • Project focuses on delivering a product/Service
    at certain time, cost and specifications.
    Functional units maintain resources to support
    organizational goals.
  • Dual chain of command Vertical (Functional) and
    horizontal (Project) conflicts.
  • Decision making vests with project team
  • Functional units contributing to project team are
    permanent needs regrouping.
  • Projects can originate at different places
    Product development emerge from marketing,
    technological applications originate from R D.
  • Project management sets in motion other functions
    personnel evaluation, accounting, and
    information systems.

Example Product Development
 All products have a limited life -improved
products replace them or -the purpose served is
eliminated Company Alpha consumer and
industrial goods. One division (consumer
products) began losing market share to
competitors. Several innovative concepts were on
the drawing board. One new product X - how
to quickly translate from concept to commercial
product. Requires - extensive marketing analysis,
in-house product development, optimal costing and
pricing, early introduction in the market,
advertising, etc. Solution Project Management
Where is Project Management appropriate?
 Project Management originated in construction
and aerospace industries, environment and kinds
of activities demanded flexible and imaginative
forms of management. Till about 30 years ago,
project management was used primarily for
defence, space and construction projects.
The General Conditions
  • The more unfamiliar or unique the undertaking,
    the greater the need for project management (to
    make sure nothing gets overlooked)
  • The more numerous, inter-disciplinary and
    inter-dependant activities, the greater the need
    for a project manager (to ensure that everything
    is coordinated, integrated and completed)

Five specific Criteria
1. Magnitude of the effort requiring
substantially more resources (people, capital,
equipment, etc.) that can be handled by a single
dept., organization. E.g. Corporate computer
installation more than EDP. 2. Unfamiliarity
by definition, project is something different
from the ordinary, routine. Eg. Plant
modernization (revising facilities layout,
modifying assembly, replacing equipment) 3.
Changing environment hi-tech industries like
computers, electronics, pharmaceuticals etc
high innovation, product changes, shifting
markets and consumer behavior. Changing
environments present new opportunities.
Organizations must be creative, innovative and
Five specific Criteria
  • 4. Inter-relatedness Functional areas could
    work at cross-purposes. For joint effort, project
    management builds lateral relationships.
    Coordinate efforts within the organization as
    well as with contractors, vendors and customers.
  • 5. Reputation/stake for completion Likelihood
    for successful completion of activity is
    increased if a single, competent individual is
    assigned responsibility. For prestigious
    projects, assign project manager with the
    assistance of a technical group.

Some Questions to assess the need for Project
  1. Is the job very large?
  2. Is the job technically very complex?
  3. Is the job a true system?
  4. Is the job a part of a larger system?
  5. Does the top management feel the need for the
    single point information and responsibility?
  6. Are strong budgetary and fiscal controls
  7. Are tight schedule constraints foreseen?
  8. Are quick responses to change necessary?

Some Questions to assess the need for Project
  1. Does the job cross disciplinary boundaries?
  2. Is there likely to be conflicts between line
  3. Are there concurrent projects?
  4. Will the job disrupt organizational structure?
  5. Are there major items to be bought out?
  6. Are portions of system to be sub-contracted?
  7. Is the project to be reviewed/approved by
    government agencies?

Types of Project Managers
  • Project Expeditors speed up work and achieve
    unity of communications. Translating technical
    concepts into business concepts of cost,
    schedules and markets (Liaison-small projects)
  • Project Coordinators act as staff leaders and
    achieve unity of control over project activities.
    Authority to control project matters and
    disbursement of funds from the budget, but no
    actual authority over project staff/workers. Eg
    Construction project manager.

Types of Project Managers (contd.)
  • Matrix managers plan, motivate, direct and
    control project work, to achieve unity of
    direction. Staff located administratively in
    other functional departments, criss-cross pattern
    of vertical functional and horizontal functional
    reporting create a matrix organization.
  • Pure project managers- direct pure project
    organisations of people who report directly to
    them, to achieve unity of command. Primarily
    integrators and generalists rather than technical
    specialists. Eg. Construction project manager to
    whom power has been delegated to make major
    decisions letting contracts for
    architects/builders etc.

Basic Project Management
  • Project manager is given formal authority to
    plan, direct, organize and control the project.
    Implementation is in two forms pure and matrix
  • Pure Project Management is a complete,
    self-contained organisation created with all the
    necessary functional units and the resources are
  • Matrix management using elements allocated from
    permanent functional units creates organization

Programme Management
  • Extends over a longer time horizon (5 or more
    years) and consists of several parallel or
    sequential work efforts (projects) Eg satellite
    Launch Programme of ISRO. Consists of several
    project IRS, INSAT 1,2 etc., SLV, ASLV, PSLV,
    etc. Some of these projects may themselves be
  • Projects are oriented to producing and delivering
    a product or service after which the project is
    over. Programmes on the other hand involve
    operation and maintenance of system.
  • Continuity is necessary in programme management.
    It needs training and replacement throughout the
    programmes life cycle.
  • Programmes composed of teams from various
    projects and thus need a programme structure.

New Venture Management
  • A team is created to find new products, markets,
    etc. that fit the organizations specialized
    skills, capabilities and resource
  • Focus on a single unifying goal
  • Multidisciplinary and functional experts
  • Action oriented and change driven
  • Temporary venture group with specified goal

Product Management
  • Single person given authority to oversee all
    aspects of a products production
  • Product manager coordinates and expedites efforts
    of manufacturing, distribution and sales
  • Product managers of products with long life
    cycles rotate.

Ad hoc committees
Reorganizations, mergers, surveys, audits,
efficiency/modernization/cost reduction efforts,
expansions, relocation, management development
programmes, new equipment installation etc.
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