What Is a Project? “A project is a temporary endeavor undertaken to create a unique product or service.” Instructor Do Solicit answers from participants before showing this slide. Instructor Say “What is a project?” Record answers on a flipchart. Ask the participants for examples of projects they have worked on. Examples may include: Designing a new vehicle. Constructing a building. Developing a new course. Relocating your office. Running a campaign. Installing a new computer. Developing a new payroll system.

What Is Project Management? “Project management is the application of knowledge, skills, tools, and techniques to project activities in order to meet or exceed stakeholder needs and expectations.” Instructor Do Read through the slide. Indicate that PMI stands for the Project Management Institute, a nonprofit professional organization established to serve the project management profession. For further information, participants can call PMI at (610) 734-3330 (in the US).

Project Manager “The person who is responsible for the project and will be held accountable for its success or failure.” Instructor Do Read through the slide. Indicate that the role of the project manager has been defined by PMI in the Code of Ethics for the project management professional, which will be discussed in a later section of the course.

Within Available Resources The Triple Constraint Project Scope Cost Quality Within Available Resources Schedule(Time)

Balancing the “Project Success Triangle” A clear understanding of customer priorities “Team” skills Thorough planning An organized, structured process Instructor Say To achieve success by balancing this triangle, it might seem that black magic is what is needed. But that’s not true. What we need are: A clear understanding of customer priorities “People” skills for yourself and your team Thorough planning An organized, structured method to manage and control the project Another way to look at the triangle is by using travel as an example. There are several ways to get from one part of the country to another (New York to Los Angeles for vacation) How do these methods compare on cost, quality (scenic travel), delivery (how much time it will take)? Car (low cost, high quality, slow delivery) Train (moderate cost, high quality, moderate delivery) Airplane (high cost, low quality, fast delivery) We make trade offs everyday on how we try to balance the magic triangle.

Project Management Process Initiation Planning Execution Controls To help guide you through the process you need a roadmap of some type … Closeout

Project Stakeholders What is a project stakeholder? If you can gain or lose from the success or failure of a project, you have a “stake” in the project.

Key Project Stakeholders Customer/client Project sponsor Project manager Project team Instructor Say The project team is made up of its “stakeholders.” These are the people who have a “stake” in the project or win if the project is successful and lose if it’s not. Transition Each stakeholder has a set of responsibilities to fulfill for the project to be a success.

Tools & Techniques of project management

Project Plan Provides an effective communication tool to ensure understanding of project goals and the means to achieve them Defines outcomes and commitments Establishes guidelines and standards Establishes the baseline for evaluating and reporting progress Forms the basis for scope control and change management Instructor Say Read through the slide. Has anyone ever picked up a project in the middle when the former project manager has been reassigned? What was that like (name of person raising his/her hand)? Although the project manager has overall responsibility for developing the project plan, a good plan can not be prepared without the participation of the project team members.

Project Notebook Project Pre-plan Project Plan Project Implementation Project Close-out Project Administration Instructor Say The project notebook is started in the planning phase. It represents a documented history of the project. It can be used as an excellent communication tool among team members. Three-ring binders with tabbed sections can be used to develop the notebook. Transition Now that we have covered some introductory concepts, let’s take a closer look at the Roadmap to Project Management Success.

Statement of Work — Purpose Define the scope of the project Establish customer expectations Serve as a “contract” if necessary Instructor Say The statement of work is prepared in order to: Define the scope of the project Establish customer expectations Serve as a “contract” if necessary Since it represents the foundation document upon which the rest of the plan is built, time should be taken to prepare a well-written, clear statement of work for the project.

Generic Contents Customer Project Title Purpose Background Deliverables Measurable success indicators Customer support Risk plans Instructor Say Let’s take a closer look at what’s included in the statement of work. The statement of work includes: Customer and project information Project title (name of the project or project goal) Purpose (what the project will achieve) Background (the information known about the project) Deliverables (end products of the project—tangibles) Measurable success indicators (how well the project must be completed to be successful) Customer support (what the customer is expected to provide) Risk plans (alternative plans in case of road blocks or detours)

General planning & scheduling tools Project management tools help the manages to administration, planning and scheduling of project. One can often use the software charting facilities included in this software to produce graphical versions of your plans. Project management tools has the following features: Create a task Store information about a task (e.g. who will do it, how long it will take etc) Update task information as your project changes Generate plans based on tasks Publish charts and reports to help you manage the project and to present information to the stakeholders

Gantt chart & PERT charts The common charts are Gantt charts and PERT charts A Gantt chart is a picture of how long all the tasks should take. You can use Excel to create a Gantt chart

Gantt chart & PERT charts The common charts are Gantt charts and PERT charts A PERT chart (program evaluation and review technique) shows the dependencies between tasks. It depicts the task, its duration and dependency information 50 T = 1wk T = 2wks G D 20 T = 4wks 60 T = 1wk E A 10 F B 30 T = 2wks A 40 C T = 2wks T = 1wk

Critical Path Methods Critical path methods identify the minimum time needed to complete a project. They show which tasks are on the critical path. This lets you, as project manager, prioritise these tasks to make the project more likely to finish on time. Critical path analysis (CPA) works on the principle that some tasks cannot start until previous tasks are finished. For example, you cannot test a program until after you have coded it. you must complete these dependent tasks in a sequence. Often tasks are not dependent on other tasks starting or finishing, so you can do these tasks in parallel.

Critical Path Methods Consider this series of tasks for a computer system. Specify and design system Code program 1 Test program 1 Code program 2 Test program 2 Test and implement system The project manager works out the dependencies and timescales and draws up the critical path (shown on next slide). From this you can see that tasks 1, 2, 3 and 6 are on the critical path. A minimum time of 21 days is needed for this project.

Critical Path Methods From this you can see that tasks 1, 2, 3 and 6 are on the critical path. A minimum time of 21 days is needed for this project. Task 1 5 days Task 2 10 days Task 3 4 days Task 6 2 days Task 4 5 days Task 5 2 days

Specialised software packages To help manage a project there are many packages available. At the simplest, there are freeware or shareware packages available from the Internet. Microsoft Project is a popular middle-of-the-range tool that can help manage a wide variety of projects. For large construction or IT projects involving very many tasks and workers, there is expensive, specialised software available.

PROJECT IDENTIFICATION , GENERATION OF IDEAS AND FORMULATION

HOW TO START A NEW PROJECT Idea generation Primary screening or pre-feasibility study Project feasibility or detailed feasibility study Support study Detailed project report (DPR) Design or planning Implementation or execution Termination of project

Idea generation or project identification Support Study Preliminary screening or pre feasibility study Project feasibility or feasibility study Market & demand Analysis Technical Analysis Financial Analysis Social cost benefit Analysis Environmental & risk analysis Detailed project reporter formal approval from sponsors Planning, organizing & scheduling of project activities Direction & controlling of activities Termination of project (commissioning)

IDEA GENERATION OR IDENTIFICATION OF INVESTMENT OPPORTUNITIES Idea generation is the process of grouping logical thoughts based on some factors.

IMPORTANCE OF IDEA GENERATION Basis for other steps in completing steps. Important for continuous growth of organization. Survival in the competitive market. Contribution towards development of society.

SOURCES OF IDEA GENERATION Performance of existing industry Examining the inputs and outputs of various industries Review of imports and exports Availability of cheap materials & labor locally Price trend, to find demand – supply gap Government guidelines Analysis of economic and social trends Study of new technological developments others

PRELIMINARY SCREENING OR PRE-FEASIBILITY STUDY Preliminary screening is done with a view to avoid unnecessary cost and efforts in detailed study, if idea is not looking worthwhile in first instance DEFINITION : Preliminary screening can be defined as a series of steps to know whether or not a complete detailed feasibility study should be made.

OBJECTIVES OF PRELIMINARY SCREENING To determine whether project (idea) is promising business opportunity or not. Whether it justified a detailed analysis or not To find out any critical aspect on which success or failure depends To formulate a plan for detailed feasibility study

ASPECTS OR AREAS OF PRELIMINARY SCREENING Acceptable risk level Consistency with government priorities Availability of inputs Adequacy of market Reasonableness of the costs Compatibility with promoters

SUPPORT STUDY Support study can be defined as – An in-depth investigation into any one or a couple of critical aspects (areas) of a project, to help the feasibility study. Critical aspect here means those areas whose success or failure decides the success of failure of business or project.

OBJECTIVES OF PROJECT FEASIBILITY STUDY It guarantees the success of Project It works as basic terms of reference for Project It describes the nature and complexity of Project It gives an idea about investment in Project It also provides us the possible future difficulties It gives an idea about economic and social benefits

Pre-Feasibility Study Difference between Pre-Feasibility Study or Project or Detailed Feasibility Study Pre-Feasibility Study Feasibility Study Objective To determine whether or not the Project idea needs further investigation To determine the true profitability of the Project and selecting the Project. Scope Over-view study Detailed study Type of Data Secondary Data Primary Data Time involved Low High Accuracy Cost involved

Components of Project of Detailed Feasibility study Market and Demand analysis Technical analysis Financial analysis Social Cost-Benefit analysis Environmental and risk analysis

Detailed Project Report (DPR) Meaning: “Doing project feasibility is not the end of Project formulation stage. It also includes documentation of it, which is known as Detailed Project Report.”

PROJECT MARKET & DEMAND

Market Demand Analysis Objective Specification Collection of Data Market Survey Market Description Demand Forecasting MARKET PLANNING

Market Survey “Market Survey is a technique that is aimed at gathering all possible information (primary data) by conducting interviews.”

Steps under Market Survey Defining the Target Market Selecting the Sample Developing the Questionnaire Training the Surveyors Recording the Information Interpreting the Information

Market Descriptions Competition in Market Study of Market Segments Price Methods of Distribution Sales Promotion Consumers Interest

Demand Forecasting “Demand Forecasting is the art of predicting demand for a product or a service at some future date on the basis of certain present and past behaviour patterns of some related events.”

Characteristics of a Good Demand Forecasting Accuracy Simplicity Economy Timeliness Availability

Techniques of Demand Forecasting Survey of buyer’s intentions Collective opinion method Expert opinion method Controlled experiments Study of general economic environment

Statistical Methods Trend Projection Method Graphical Method Regression Analysis

Market Planning This steps under Market and Demand Analysis is not related to actual analysis, but related to Market plans of new firm (if idea under consideration is selected). Under this step, four P’s of Marketing viz Product, Price, Place and Promotion should be well designed to achieve the expected level of Market Penetration.