Project Management

Project Management Dr. R Bista Ms Gyan Laxmi Shrestha Basic Administration Project 2017

What is Project and What is not?

What is Project? • A project can be considered to be any series of activities and tasks that: • Have specific objective to be completed within certain specifications. • Have defined start and end dates • Have funding limits • Consume human and nonhuman resources (Kerzner, H. 2003, Project Management, 8th ed. New York: Willy))

What is Project? Cont… Project may range from small infrastructure project to more complex multipart project such as integrated hydroelectric project with irrigation, power and tourism as its components. Some examples are: Melemchi Drinking Water Project, High Land Mountain Agriculture and Livelihood Project, Upper Tamakoshi Hydro Power Project, Amazon's "Octocoper" Mini- drones concept project, Google’s Driverless Car Project

General Project Characteristics Projects are temporary activities with a clear objectives Project is a time bound activity Projects need to be completed with limited budget Projects are terminated upon successful completion of performance objectives.

Regular Operation Ongoing Repeat process or product People are homogeneous Greater certainty of performance, cost, schedule Project One shot New process or product People are heterogeneous Greater uncertainty of performance, cost, schedule Project vs Operation

Project as a Dream of the Organisation • Dream of www.amazon.com to modernize delivery of goods to customers • Dreams of Google to provide internet • Dream of Google to develop Self Driving Car Project • Dream of Nepal to Make Modern Second International Airport in Bara District

Roles of Project Projects are one of the principle means by which we change our world. Organisations compete by planning and execution of new projects Projects are the means to execute strategies of organisation Projects are the basic building blocks of development. Without successful project identification, preparation and implementation, developments plans are no more than wishes (Dennis A. Rondineli (1976), Project Management Quarterly, Vol VII (1), Projects have also been the primary instruments for grant, credit, loan and technical aid to developing countries by international agencies

Roles of Project • Global competition, pressure of low cost, short product life cycle, fast increasing people’s expectations are the reasons for the private organizations to adopt project management to survive and remain competitive.

Plan, Program and Project Program can be defined as a framework for groping existing projects or defining new projects and focusing all the major activities required to achieve a set of major benefits There will be many programs in a plan Similarly, there will be many projects in a program For example, in an agriculture development program, there can be soil development project, seed development project, irrigation project etc. Plan Programs Projects

Project Cycle Projects go through similar stage on the path from origin to completion These stages are generally expressed in terms of cycles and known as project cycle There are some popular cycle practiced by Donor Agencies. World bank Project Cycle, UNIDO Project Cycle, ADB Project Cycle etc. are some examples of project cycle.

Project Cycle Identification Completion and Termination Pre-Feasibility Study Feasibility Study Implementation Appraisal/Approval

ADB’s Project Cycle

Project management • The project management is bringing available resource together within a time frame for a desired results.

Project management • In project every things need to be done within time and budget • Management must complete all the project deliverables within quality specification • So project management is achieving successful project completion with the resources available and within time constraints.

Project Management Cont… • Project management involves defining project scope. • Dividing project into tasks and activities • Deciding the types of project organizations suitable for project • Selecting project manager and establishing project offices • Managing Team • Managing Stakeholders • Managing Risks • Managing Outsourcing • Executing plan and monitoring performance and correcting deviation • Reporting • Completing all the project deliverables.

Organizing Projects • A temporary organisation is set up to implement a project. Based on the nature project, a suitable organisation type is selected. In many large projects, a dedicated team headed by project manager is suitable to implement a project.

Project Manager (PM) • The project manager is the person responsible for achieving project objectives. He is selected to plan, organise, cordinate and control project performance. • Plans and schedules are refined and updated. Mechanism are developed to facilitate communication between the project manager and top management, functional areas and the clients.

Functions of Project Manager To prepare budget and schedule, • To help select people to serve on the project team, • To motivate team members • To procure works, goods and services • To take care of routine details necessary to get the project moving. • To facilitate communication between the PM and top management and other stakeholders • To monitor and control

Consultant in the project organisation • A knowledgeable and experienced consultant can be a good component of project organisation. The reasons for appointing a consultant are: - to gain from the consultant's deep knowledge and rich experience - an independent consultant will view all matters in an unbiased manner. - to give full attention to the particular project as the functional experts will have many other responsibilities.

Managing Team • A team is a small number of people with complementary skills who are committed to a common purpose, performance goals, and approach for which they hold themselves mutually accountable (Harvard Business School)

Making the Project Team • When we have a dream, we need a team to accomplish it. • Designing a dream team • Identify necessary skills of team members • Talk to potential team members matching skill • Add key team members • Develop team members • Remove ineffective team members • Motivate Team Members for effective performance

Managing Stakeholders • Stakeholders are defined as all individuals or groups who are influencing / affected / involved / interested in the project and can potentially impact, either positively or negatively, its development. • Identifying stakeholders, their interests and power • Develop strategies to manage for positive results the impacts of stakeholders on the project

Managing Procurement • Procurement is the act of acquiring goods, works and services by projects or organizations at the best possible cost in the right quantity and quality at required time. Both government and private organizations needs to acquire various types of goods, works and services.

Managing schedule • Prepare time schedule • Give extra care to critical activities in order to complete them in scheduled time. • Making priorities in resource allocation to critical activities in case of resource constraints • Regular monitoring and reporting • Ensuring critical activities get done on time

Schedule Awareness The simple way to create schedule awareness is by displaying the progress achievements and target dates at visible place to remind project team about project activity deadlines and project completion time

Managing Resource • To complete project in time with minimum resource, careful planning and managing of resource is necessary to deliver project results • Updating resource plan as per updated schedule and Arrangement of resource as per requirements, • Acquiring resource as per required

Prioritizing Time and Resource for Critical Activities • Project management involves identifying critical and non critical activities • Giving high priority in resources for critical activities • Taking extra for critical activities • Assuring timely completion of critical activities • If any delay occur, taking immediate actions and finishing execution as per plan.

Managing Quality • We hear many news of under quality of our projects. If projects are not completed within desired/or planned quality, we can not assure that project will generate heavier benefits than costs. So managing quality means to assure project deliverable as per specification.

Managing Quality Cont… • Are Inputs as per requirement? • Are labour skilled as needed? • Is process as per standard? • Does project output as per specification?

Managing Budget • Assuring timely budget available • Making effective and efficient use of budget use of budget

Managing Risks • Identifying different risks during execution • Analyzing risks and making strategy to reduce risks • Executing risks reduction plans • Monitoring residual risks, identifying new risks, executing risk reduction plans and evaluating their effectiveness.

Project Monitoring and Control • Project monitoring is observing or checking on project activities to identify the current status of the project, identifying deviation of the project cost, schedule and quality with the plan and identifying potential problems. A project monitoring system involves determining what data to collect; how, when, and who will collect the data, analysis of the data; and reporting current progress

Controlling and Moving Ahead • Once we detect significant deviations from the project plan, it becomes necessary to engage in some form of corrective action to minimize or remove the deviations. Updating plan, speeding up activities, maintaining quality and moving ahead to complete project deliverables until project results are achieved

Successful Project • Project that meets the objectives of time, cost and performance objectives is able to deliver intended results

Common Dimensions for Success Factors Cost Scope Quality Time

Project Management