Module 1: Project Basics

1.1 Definition of a Project

A project is a temporary endeavor undertaken to create a unique product, service, or result.

It has a definite beginning and end and is performed to meet specific objectives. Projects
are different from ongoing operations in that they are temporary and goal-oriented.

Project vs. Operations

●​ Project: A one-time effort with a unique goal, such as developing a new software
application.
●​ Operations: Ongoing, repetitive tasks aimed at maintaining business functions, such
as IT support or manufacturing.
●​ Key Differences:
○​ Timeframe: Projects have a start and end; operations are continuous.
○​ Purpose: Projects deliver unique outputs; operations focus on efficiency and
stability.
○​ Change: Projects involve change; operations focus on maintaining
consistency.

Necessity of Project Management

Project management is crucial to:

●​ Ensure projects are completed on time, within budget, and as per scope.
●​ Allocate resources efficiently and minimize risks.
●​ Improve communication and coordination among stakeholders.
●​ Provide a structured approach for managing complex tasks.

Triple Constraints (Iron Triangle)

A project’s success depends on balancing three primary constraints:

1.​ Scope: Defines what needs to be done. Expanding scope without proper planning
leads to “scope creep.”
2.​ Time: The duration required to complete the project.
3.​ Cost: The budget allocated to the project.
 ●​ Impact: If one constraint changes, the others are affected (e.g., increasing scope
may increase cost and time).

Project Life Cycles (Typical & Atypical)

●​ Typical Project Life Cycle:​

○​
Initiation: Identify needs, feasibility study, and stakeholder approval.
○​
Planning: Develop schedules, budgets, and risk management strategies.
○​
Execution: Perform project tasks, monitor progress, and ensure quality.
○​
Closure: Complete deliverables, obtain stakeholder approval, and document
lessons learned.
●​ Atypical Project Life Cycle:​

○​ Some projects may follow iterative or agile approaches, where planning,

execution, and feedback happen in cycles rather than a linear path.

Project Phases and Stage Gate Process

●​ Projects go through different phases, and each phase requires approval before
moving forward.
●​ Stage Gate Process ensures that at each phase, key criteria are reviewed before
proceeding, reducing risks and improving decision-making.

Role of the Project Manager

A Project Manager (PM) is responsible for planning, executing, monitoring, controlling, and
closing a project. Their role is critical in ensuring that the project meets its objectives within
the constraints of scope, time, cost, quality, resources, and risk.

Key Responsibilities of a Project Manager

1.​ Project Planning​

○​ Define project scope, objectives, and deliverables.

○​ Develop detailed schedules and budgets.
○​ Identify risks and create mitigation strategies.
 2.​ Team Leadership & Communication​

○​ Assemble and lead a project team.

○​ Ensure effective communication among stakeholders.
○​ Resolve conflicts and motivate team members.
3.​ Resource Management​

○​ Allocate and manage project resources efficiently.

○​ Ensure optimal utilization of people, tools, and finances.
4.​ Risk Management​

○​ Identify potential risks and create contingency plans.

○​ Monitor risks throughout the project lifecycle.
5.​ Stakeholder Management​

○​ Identify key stakeholders (sponsors, clients, team members).

○​ Manage expectations and provide regular updates.
6.​ Monitoring & Controlling​

○​ Track project progress using key performance indicators (KPIs).

○​ Adjust plans to stay within scope, time, and budget.
○​ Use methodologies like Earned Value Management (EVM) for performance
measurement.
7.​ Project Closure​

○​ Ensure all deliverables meet the required standards.

○​ Conduct final reviews and obtain stakeholder approvals.
○​ Document lessons learned for future projects.

Project Management in Various Organizational Structures

The project manager’s authority and responsibilities depend on the organizational

structure:

1.​ Functional Organization​

 ○​ Employees are grouped by departments (e.g., marketing, IT, finance).
○​ Project manager has little authority; functional managers make key
decisions.
○​ Best for projects requiring deep expertise in specific functions.
2.​ Projectized Organization​

○​ The organization is structured around projects rather than departments.

○​ Project manager has full authority over resources and decision-making.
○​ Best for organizations focused on client projects, such as construction or
consulting firms.
3.​ Matrix Organization (Blend of Functional and Projectized)​

○​ Weak Matrix: Functional managers have more power.

○​ Balanced Matrix: Power is shared between functional managers and project
managers.
○​ Strong Matrix: Project managers have more authority than functional
managers.
○​ Suitable for companies managing multiple projects with shared resources.

PM Knowledge Areas (As per Project Management Institute - PMI)

The PMI defines ten knowledge areas that every project manager should master:

1.​ Integration Management: Coordinating project activities.

2.​ Scope Management: Defining what is included/excluded in the project.
3.​ Schedule Management: Planning timelines and monitoring deadlines.
4.​ Cost Management: Budgeting and controlling expenses.
5.​ Quality Management: Ensuring deliverables meet standards.
6.​ Resource Management: Managing team members and materials.
7.​ Communication Management: Keeping stakeholders informed.
8.​ Risk Management: Identifying and mitigating potential issues.
9.​ Procurement Management: Handling contracts and external vendors.
10.​Stakeholder Management: Managing relationships with all project participants.
Project Initiation

Project initiation is the first phase of the project life cycle, where the project is defined,
evaluated, and approved for execution. This phase ensures that only viable and strategically
aligned projects move forward.

How to Get a Project Started

To successfully initiate a project, the following steps are taken:

1.​ Identify Business Needs & Opportunities​

○​ Determine why the project is required.

○​ Identify the problem the project will solve or the opportunity it will leverage.
2.​ Conduct Feasibility Study​

○​ Assess whether the project is technically, financially, and operationally

feasible.
○​ Consider risks, constraints, and required resources.
3.​ Define Objectives & Success Criteria​

○​ Set SMART (Specific, Measurable, Achievable, Relevant, Time-bound)

goals.
○​ Define key deliverables and expected outcomes.
4.​ Identify Key Stakeholders​

○​ Stakeholders include sponsors, customers, team members, and regulatory

bodies.
○​ Understanding stakeholder needs helps in better decision-making.

Selecting Projects Strategically

Not all proposed projects are executed. Organizations use project selection models to
choose projects that align with business goals and provide maximum value.
Project Selection Models

There are two main types of models: Numeric (Scoring) and Non-Numeric.

1.​ Numeric/Scoring Models​

These models use mathematical techniques to evaluate project viability.​

○​ Benefit-Cost Ratio (BCR): Compares benefits to costs; higher BCR is

preferred.
○​ Net Present Value (NPV): Evaluates project profitability by considering future
cash flows.
○​ Internal Rate of Return (IRR): Determines expected rate of return; higher
IRR is better.
○​ Payback Period: Measures time taken to recover investment costs.
○​ Weighted Scoring Model: Assigns scores based on predefined criteria (e.g.,
strategic alignment, cost, risk).
2.​ Non-Numeric Models​
These models rely on qualitative evaluation rather than mathematical calculations.​

○​ Sacred Cow: Projects initiated by top management without financial

justification.
○​ Operating Necessity: Projects essential for business survival (e.g.,
regulatory compliance).
○​ Competitive Necessity: Projects undertaken to maintain market position.

Project Portfolio Process

Since organizations handle multiple projects at once, a Project Portfolio Process helps in
managing and prioritizing projects based on strategic importance, available resources, and
expected returns.

Steps in Portfolio Management:

1.​ Identify & Evaluate Projects – Assess alignment with company objectives.
2.​ Prioritize Projects – Rank projects based on value, urgency, and feasibility.
3.​ Allocate Resources – Assign teams, budget, and tools to selected projects.
4.​ Monitor & Adjust – Continuously assess and realign projects as needed.
Project Sponsor & Creating a Project Charter

Who is a Project Sponsor?

A Project Sponsor is a senior executive who provides strategic direction, financial

support, and removes obstacles for the project. They act as a bridge between the project
team and top management.

Creating a Project Charter

A Project Charter is an official document that formally authorizes the project and defines
key aspects such as:

●​ Project purpose & objectives

●​ Scope of work
●​ Key stakeholders
●​ Project manager’s authority
●​ High-level budget and timeline

Why is the Project Charter Important?

●​ Serves as an agreement between stakeholders.

●​ Provides authority to the project manager.
●​ Helps in preventing scope creep by clearly defining boundaries.

Project Proposal

A Project Proposal is a document that justifies why the project should be undertaken. It
includes:

●​ Business case and expected benefits.

●​ Estimated costs and return on investment (ROI).
●​ Resource and risk assessment.
●​ Preliminary project plan.
A strong proposal increases the chances of project approval.

Effective Project Teams

A successful project requires a well-structured and motivated team. Characteristics of an

effective team include:

●​ Clear roles and responsibilities

●​ Strong leadership and communication
●​ Collaboration and problem-solving skills
●​ Commitment to project goals

Module 2: Project Planning and Scheduling

Project planning and scheduling are essential to ensure smooth execution and timely
completion. This phase focuses on defining tasks, assigning responsibilities, estimating
costs, and creating a timeline for project execution.

2.1 Work Breakdown Structure (WBS) and Linear Responsibility

Chart

Work Breakdown Structure (WBS)

A Work Breakdown Structure (WBS) is a hierarchical decomposition of the total project

scope into smaller, manageable tasks. It helps in organizing work, assigning
responsibilities, and tracking progress.

Key Characteristics of WBS:

●​ Breaks down the project into smaller, manageable components.

●​ Provides clarity on project scope and deliverables.
●​ Helps in estimating time, cost, and resources.
Levels of WBS:

1.​ Level 1: Project name (highest level).

2.​ Level 2: Major deliverables or phases.
3.​ Level 3: Work packages (tasks within each deliverable).
4.​ Level 4+: Subtasks (optional for complex projects).

Example of WBS for a Software Development Project:

1. Software Development Project

├── 1.1 Requirements Analysis
│ ├── 1.1.1 Gather Requirements
│ ├── 1.1.2 Validate Requirements
├── 1.2 Design
│ ├── 1.2.1 Create Wireframes
│ ├── 1.2.2 Develop Database Schema
├── 1.3 Development
│ ├── 1.3.1 Backend Development
│ ├── 1.3.2 Frontend Development
├── 1.4 Testing
│ ├── 1.4.1 Unit Testing
│ ├── 1.4.2 Integration Testing

Why Use WBS?

●​ Improves task clarity and accountability.

●​ Ensures nothing is overlooked in project planning.
●​ Helps in scheduling and budgeting effectively.

Linear Responsibility Chart (LRC) / Responsibility Assignment Matrix (RAM)

A Linear Responsibility Chart (LRC) or Responsibility Assignment Matrix (RAM)

defines who is responsible for what in a project. It ensures clear role assignments and
avoids confusion.

Components of LRC/RAM:
 ●​ Tasks/Activities (Rows): List of project tasks.
●​ Roles/Departments (Columns): Team members or departments.
●​ Responsibilities (Matrix Entries): Indicate each person's role (e.g., Responsible,
Accountable, Consulted, or Informed).

Example of a Responsibility Assignment Matrix (RACI Model):

Task Project Manager Developer Tester Client

Requirements Gathering R/A C I I

Design UI C R I A

Development I R/A C I

Testing I C R/A I

Deployment R C I A

Legend:

●​ R (Responsible): The person who does the task.

●​ A (Accountable): The decision-maker, ensures task completion.
●​ C (Consulted): Provides input before the task is done.
●​ I (Informed): Needs updates on progress.

Why Use LRC/RACI?

●​ Prevents confusion by clearly defining responsibilities.

●​ Improves coordination and accountability.
●​ Ensures all stakeholders are appropriately engaged.

2.2 Project Cost Estimation and Budgeting

Cost estimation helps predict the financial resources required to complete a project.
Budgeting ensures funds are allocated efficiently.
Cost Estimation Techniques

There are two primary approaches:

1.​ Top-Down Estimation​

○​ Based on past projects and expert judgment.

○​ Quick but may lack accuracy.
○​ Suitable for initial budgeting.
2.​ Bottom-Up Estimation​

○​ Estimates costs at a granular level (task-wise).

○​ More accurate but time-consuming.
○​ Suitable for detailed project planning.

Project Scheduling Techniques

Proper scheduling ensures timely project completion. The three most common scheduling
techniques are:

1. Gantt Chart

A Gantt chart is a visual timeline that shows tasks, durations, and dependencies.

●​ Represents activities as horizontal bars.

●​ Helps track progress and identify overlaps.
●​ Easy to update and share with stakeholders.

Example:

Task Start Date End Date Duration

Requirements Gathering Day 1 Day 5 5 days

Design UI Day 6 Day 12 7 days

 Development Day 13 Day 25 13 days

Testing Day 26 Day 30 5 days

2. PERT (Program Evaluation and Review Technique)

PERT is used when task durations are uncertain. It calculates the expected time using three
estimates:

●​ Optimistic Time (O): Best-case scenario.

●​ Pessimistic Time (P): Worst-case scenario.
●​ Most Likely Time (M): Realistic estimate.

Formula:

Key Benefits of PERT:

●​ Helps in planning uncertain tasks.

●​ Provides a range of possible completion times.
●​ Identifies critical activities affecting project timelines.

3. CPM (Critical Path Method)

CPM helps determine the longest path of tasks in a project.

●​ Identifies critical tasks that cannot be delayed.

●​ Calculates the shortest possible project duration.
●​ Helps allocate resources effectively.

Steps in CPM:
 1.​ Identify all tasks and dependencies.
2.​ Estimate task durations.
3.​ Create a network diagram.
4.​ Determine the longest sequence of dependent tasks (Critical Path).
5.​ Monitor and adjust as needed.

Example CPM Network Diagram:

(Start) → Task A (2 days) → Task B (4 days) → Task C (3 days) → (End)

Critical Path = 2 + 4 + 3 = 9 days

Why Use CPM?

●​ Identifies bottlenecks in the project.

●​ Helps prioritize tasks that need immediate attention.
●​ Optimizes scheduling and resource allocation.

Conclusion & Summary

Project planning and scheduling involve breaking down work, estimating costs, assigning
responsibilities, and determining timelines using methods like WBS, RACI, Gantt Charts,
PERT, and CPM. These techniques ensure projects are executed efficiently and on
schedule.