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Project management is an emerging profession with increasing demand across various sectors, despite the lack of formal degree programs in India. A project is defined as a temporary endeavor with a specific mission, characterized by a defined life cycle, objectives, and the need for teamwork among diverse participants. The document outlines the phases of a project life cycle, its unique characteristics, and the importance of careful planning and execution to ensure successful project outcomes.
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0% found this document useful (0 votes)
9 views36 pagesIMOE02 Chapter 1
Project management is an emerging profession with increasing demand across various sectors, despite the lack of formal degree programs in India. A project is defined as a temporary endeavor with a specific mission, characterized by a defined life cycle, objectives, and the need for teamwork among diverse participants. The document outlines the phases of a project life cycle, its unique characteristics, and the importance of careful planning and execution to ensure successful project outcomes.
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© © All Rights Reserved
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/ 36
ONE
Concepts of Project Management
Project management is fast becoming an exciting new profession, Project managers are in
great demand. ‘They may be required for a publishing house, a university, agricultural rural
development, social work or industrial construction projects. It appears they are required
wherever there is work. Project management seems to have captured the attention of all those
who are looking for results. The prospects were not so bright some years ago. For that matter,
tyen now, none of the universities in India offer a full-fledged degree course in project
management. This necessarily poses a proble
m. What a project manager does in Company
*X? is not the same as what another does in Company *y", Today anyone holding a responsi-
ble position in a project is a Project Manager—and if he pursues his own style in discharging
his so-called project management responsibilities, he can hardly be blamed.
NCEPT OF A PROJECT
To understand project management we must first understand what a project really is. We
rojects, refinery projects, fertilizer projects, etc., but while
hear of cement projects, power P!
the term project is common to all of them, the plants are not. In each case the project is for
the plant but as soon as the plant is operational, the project is deemed to be completed.
Similar is the case with any other project—say a project for methods improvement. The pro-
ethods improvement has been achieved. The explicit use of the term
ject is complete when m¢ t
‘project’ is not always necessary, even then it could be considered a project—our Lok Sabha
election is such an example.
A project, therefore, is not a physical objective, nor is it the end-result—it has something
to do with the goings-on in between, which must be same, whether we build a high techno-
logy process plant or merely hold an election, to deserve a common name and to be termed
as a project.
To understand what a project is, let us study how a project is conceived. Ina business setting,
whether in the public or private sector, an organisation must grow at least for the sake of its
survival. The organisation, therefore, is continuously on the lookout for good business ideas
‘which may require growth, either on the existing lines of business or in diversified areas. But
the idea must be technically feasible, economically viable, politically suitable and socially
ncceptable. Once the ideas pass these tests, an investment proposal is made. When the invest-
snent proposal is app! .d, the project commences.
A project is, thus, ‘ated to achieve a mission—whatever the mission may be. A project 2+ Project Management
is completed as soon as the mission is fulfilled. The project lives between these two cut-off
points and, therefore, this time-span is known as project life cycle.
What then is a project? It starts from scratch with a definite mission, generates activities
involving a variety of human and non-human resources all directed towards fulfilment of
the mission and stops once the mission is fulfilled. The Project Management Institute, U.S.A.
has a good definition for it. A project, according to the Institute, is a one-shot, time-limited,
goal-directed, major undertaking, requiring the commitment of varied skills and resources,”
It also describes a project as “‘a combination-of human-and non-human resources pooled
together in a temporary organisation to achieve a specific purpose.” The purpose and thé set
of activities which can achieve that purpose distinguish one project from another.
CHARACTERISTICS OF A PROJECT
A project is typified by its various characteristics. To start with, a project isa big work—but
it is basically a work—one whole thing. This means that while there may be contributions
from many different people, it can still be recognised as one whole thing. A comparison can
be made with a book to fully understand it. While there may be many chapters in the book,
sometimes written by different authors, the book is a single entity and is supposed to serve
a single purpose. The various works that constitute the whole are inter-related and together
they tell the whole story. In the same way, all works that are inter-related and are being per-
formed to serve a common purpose can be grouped together and termed as a project, only if
it could be made into a composite affair. When this approach for grouping of work is used
in any work environment, we may say that work has been ‘projectised’.
With a project, we have seen that there is a concept of wholeness despite diversities of
work. The concept of wholeness does, of course, exist in a factory, an office or in any other
work situation also. The difference is that in case of a project the whole has to be completed
in one shot—once and for all. It is not a process that can perpetuate. It can, of course, be
repeated but only in blocks of whole, similar to batch mode of production in a factory.
‘Also, with a project there is some sort of a missionary zeal, an unknown force, pushing
people forward for achievement of something beyond their immediate work. The comple-
tion of one’s own work, and whatever it may result in, does not seem to be what one is really
working for in a project. One would never say that one’s project is complete till the whole
thing is complete and is performing satisfactorily. That is the spirit of the project, which
makes everyone feel important, contributing to a big cause, though in reality he may actually
be a very small cog in the big wheel of the project.
The special features of a project that would differentiate it from any other ongoing activity,
say production, can be summarised as in Table 1.1.
6ject Family Tree
‘A project normally originates from a plan—national plan or corporate plan. In the normal
scheme of things, the famify tree for a project would be as in Fig. 1.1. Sometimes, how-
ever, the term project may be used for what should be termed as programme or work pack
age. This is not quite unexpected in view of their closeness in the hierarchy. A programme
is not the same thing as a project; for one thing, it is not time limited like a project and also
its scope and boundaries are not so well delineated, It is, however, another thing that the
approach for management of programmes may be the same as that for a project. TABLE 1.1 Characteristic
S.No.
1. Objectives
2. Life span
3. Single entity
4, Team work
5. Life eycle
6. Uniqueness
Change
8. Successive principle — What is going to happen during the life cycle of a project
Concepts of Project Management 3
ssa
Characteristic Features
‘A project has a fixed set of objectives. Once the objectives have been
achieved, the project ceases to exist.
A project cannot continue endlessly. It has to come to an end. What
represents the end would normally be spelt out in the set of objectives.
A project is one entity and is normally entrusted to one respo! ility
centre while the participants in the project are many.
‘A project calls for team work—the team again is constituted of members
belonging to different disciplines, organisations and even countries.
A project has a life cycle reflected by growth, maturity and decay. It has,
naturally, a learning component.
No two projects are exactly similar even if the plants are exactly identical
or are merely duplicated. The location, the infrastructure, the agencies
and the people make each project unique.
A project sees many changes throughout its life. While some of these
changes may not have any major impact, there can be some changes
which will change the entire character or course of the project.
not fully
known at any stage. The details get finalised successively with the passage
of time. More is known about a project when it enters the construction
phase than what was known, say, during the detailed engineering phase.
9. Made to order A projes! is always made to the order of its customer. The customer
stipulates various requirements and puts constraints within which the
project must be executed.
10. Unity in diversity A project is a complex set of thousands of varieties. The varieties are in
11, High level of
terms of technology, equipment and materials, machinery and people,
work culture and ethics. But they remain inter-related and unless this is
so they either do not belong to the project o: will never allow the project
to be completed.
A high percentage of the work in a project is done through contractors.
sub-contracting The more the complexity of the project, the more will be the extent of
contracting. Normally around 80% of the work in a project is done
through sub-contractors.
12 Risk and uncertainty Every project has risk and uncertainty associated with it. The degree of
risk and uncertainty will depend on how a project has passed through its
various life-cycle phases. An ill-defined project will have extremely high
degree of risk and uncertainty. Risk and uncertainty are not part and
parcel of only R & D projects—there simply cannot be a project without
any risk and uncertainty.
Plan
+
_
lige
Wark Package
Task
Activity
National/Corporate plan with targets for growth,
Health programme, educational programme, science and technology programme.
Power plants, schools, hospitals, housing projects.
Water supply and distribution package, power supply and distribution package.
Award of water supply contract, construction of foundations.
Excavation, laying of cable, preparation of drawings, preparation of specifications.
FIG. 1.1 Project family tree 4 Project Management
Similarly, a work package is not a project though it may be so treated for the purpose or
its management. Several work packages will constitute a project. A_work package, however,
has to be time limited as there is absolutely no ambiguity regarding its scope and boundaries
GntGates of Project
-
Much of what the project will comprise and consequently its management will depend on
thecategory it belongs to. The location, type, technology, size, scope and speed are normally
the factors which determine the effort needed in executing a project. Figure 1.2 shows the
various categories into which industrial projects may be fitted. A grass root mega-high
technology project is not the same thing as a modification work in a low technology mini
plant--though both will be seen as projects. Therefore, though characteristics of all projects
are the same, they cannot be treated alike. An R & D project even though value-wise it may
belong to the mini category, it must not receive the same attention as a low-technology mini
plant. Recognition of this distinction is important for management of project. Projects are
often categorised in terms of their speed of implementation. Management of disaster projects,
as in the case of the Bhopal gas tragedy, would not belong to the same category as that of
PROJECT
NATIONAL INTERNATIONAL,
NON-INDUSTRIAL INDUSTRIAL
ND aetnkocr — RELENGOMY sch May
MEGA MAJOR: MEDIUM MINI
GRASS ROOT EXPANSION MODIFICATION
NORMAL CRASH DISA31ER
+ 1.2 Cutegorles of projects Concepts of Project Management 5
putting up a plant in a normal situation—say, the same insecticide plant itself. The Asiad
Project is another example which was not exactly normal and illustrates the point that any
another project would not be executed in the same way. Depending on the speed needed for
execution of a project, there can be further categorisation as below:
Normal Projects In this category of projects adequate time is allowed for implementation
of the project. All the phases in a project are allowed to take the time they should normally
take. This type of project will require minimum capital cost and no sacrifice in terms of
quality. a
Crash Projects _ In this category of projects additional capital costs are incurred to gain time.
Maximum overlapping of phases is encouraged and_compromises in terms of quality are also
not ruled out. Savings in time are normally achieved in procurement and construction where
time is bought from the vendors and contractors by paying extra money to them.
Disaster Projects Anything needed to gain time is allowed in these projects. Engineering is
limited to make them work. Vendors who can supply ‘yesterday’ are selected—irrespective
of the cost. Quality short of failure level is accepted. No competitive bidding is resorted to.
Round-the-clock work is done at the construction site. Naturally, capital cost will go up
very high, but project time will get drastically reduced.
LAkesecr LIFE CYCLE PHASES
The attention that a particular project receives is again not uniformly distributed through-
cut its life span, but varies from phase to phase. At a particular phase of project life, depend-
ing on the requirement of that phase, appropriate attention has to be paid. We, therefore,
need to know the various phases in the life of a project. By and large, all projects have to
pass through the following five phases:
¥6 Cenceptien phase
& Definition phase
% Planning and erganising phase
&¢ Implementation phase
% Project clean-up phase
While ideally these phases should follow one another in se
Teal life. Not only do the succeeding phases overlap with the
uncommon to find complete overlap of all the phases, Some
deliberately in the interest of compressing the overall Proje
would encourage natural growth. To understand this aspect
cycle phases in a little more detail.
‘quence, this rarely happens in
Preceding ones, it is also not too
times this overlapping is done
‘et schedule. There are others who
t fully, we need to discuss the life
Conception Phase
This is the phase during which the project idea germinates. The idea may first come to th
5 he
mind when one is seriously trying to overcome certain
ind w c i Problems. The problems ma -
utilisation of either the available funds, plant capacity, expertise or simply unfulied na
tions. When one is seized with the problems, he looks te © Project Management
or those working on the problems for him. Whatever may be the case, the ideas need to be
put in black and white and given some shape before they can be considered and compared
with competitive ideas.
An operating cement plant may be having low capacity utilisation, high power consump-
tion and consequently higher cost of production. In such a situation it might be a good idea
to introduce new technology, replace some critical items selectively or scrap the plant alto-
gether. There may be financial constraints, the existing staff may need to be on roll, limestone
deposits may last for limited number of years and so on. The ideas need to be examined in
light of objectives and constraints and what finally becomes acceptable may form the future
Project. All projects are usually conceived this way.
{It is easy to appreciate that if this phase is avoided or truncated, the project will have
imate defects and may eventually become a liability for the investors){n this phase, however,
it is not supposed to be considered as to how the project will be implemented. Considera~
tons of later phases of a project life when the project is not even born will not only prolong
this period but may end up in unnecessary arguments) It is just like considering which medi-
cal college your child would be admitted to when thé child is still in the womb.
A welkconceived project will go a long way for successful implementation and opera-
ton of a project. It is quite possible that ideas may undergo some changes as the project
Progresses. This is understandable since at the conception stage all pertinent data are not
available and also the real life scenario may undergo considerable change compared to what
may have been assumed initially.
pGrnition Phase
The definition phase of the project will develop the idea generated during the conception
Phase and produce a document describing the project in sufficient details covering all aspects
necessary for the customer and/or financial institutions to make up their minds on the project
idea, The areas to be examined during this phase, say for a cement plant, may be as follows:
1. Raw materials Qualitative and quantitative evaluation of limestone reserves.
Plant sizeleapacity Enumeration of plant capacity for the entire plant and for the
mitin departments.
3. Location and site” Description of location supported by a map.
4. Technology process selection Selection of optimum technology, reasons. for selection
and description of the selected technology.
5. Project layout Selection of optimum layout, reasons for sélection and appropriate
drawings.
(. Plant and Machinery Selection of optimum equipment, reasons for selection, descrip
tion of selected equipment and machinery, stating number, type, specifications, capacity,
ource and cost.
7. Elcetrical and instrumentation works Listing the broad features of the major electrical
‘nd instrumentation items, suggesting a broad scheme for power distribution and power
vrid map, Concepts of Project Management 7
8. Civil engineering works Selection of optimum civil works, reasons for selection, descrip-
tion of selected civil work and cost estimates.
9. Utilities—fuel, power and water Selection and description of utilities stating qualitative
properties, quantities, source, availability and unit costs.
10. Manpower and organisational pattern Selection of labour and staff considering organi-
sational structure/layout, skill requirement and level of training, availability and cost estimates.
11. Financial analysis Total investment costs, sources of finance, total production costs
and evaluation of financial viability.
12. Implementation schedule This phase, therefore, clears some of the ambiguities and
uncertainties associated with the formation made during the conceptual phase. This phase
also establishes the risk involved in going ahead with the project in clear terms. A project
can either be accepted or get dropped at this stage itself.
But what is the industry practice? In most cases, it may be seen that the effort during this
phase is concentrated in protecting the project conceived during the conceptual stage.
Anything else would amount to killing an embryo. What, therefore, sometimes comes
out at this stage is what will satisfy the customer or the bank authorities. No wonder this
phase is repeated—sometimes with different agencies and under different names. Sometimes
studies in further depth are also asked for. But it is clear, if this phase is not done
properly, it will iricrease the risk content of the project. Husie makes waste. Further,
avoidance of this step or allowing this phase to proceed with the implementation phase
can be expensive and often disastrous for the project. This has led the bank authorities to
in:roduce strict appraisal procedures for the clearance of a project. Thus, ideally, a project
can be said to have been born only after it has been cleared for implementation at the enc
of the definition stage. We will discuss more on this subject in Chapter 2.
Pisaning and Organising Phase
This phase cau cMectively start only after definition phase but in practice it starts much
earlier, almost immediately after the conception phase. This phase overlaps so much with
the definition and also with implementation phases that no formal recognition is given to
this by most organisations. Some organisations, however, prepare documents such as
Project Execution Plan to mark this phase.
By and large, organisations, during this phase, deal with the following, and in most eases
take necessary action for realisation of the same.
Project infrastructure and enabling services
System design and basic engineering package
Organisation and manpower
Schedules and budgets
Licensing and governmental clearances
Finance
Systems and procedure
Identification of project manager
SI AwAwNE 8 Project Management
9. Design basis, general conditions for purchase and contracts
10. Site preparation and investigations
11. Construction resource and materials
12. Work packaging
Thus, this phase is involved with preparation for the project to take off smoothly. This
Phase is often taken as a part of the implementation phase since it does not limit itself to
Paper work and thinking:but many activities, including field work, are undertaken during
this phase.
Planning, as it is often defined, is making a decision in advance. If this is not done, we
will only be resolving crisis after crisis. It is, therefore, essential that this phase is completely
gone through before the next phase, namely, the implementation phase starts. Many of the
decisions and actions taken during this phase relate to project basics, and if the project
jumps into the implementation phase without freezing the basics, the project is bound to
falter and flounder if not fail altogether. We will discuss more about this phase in
Chapter 3.
lementation Phase
This is a period of hectic activity for the project. It is during this period that something
starts growing in the field and people for the first time can see the project. Preparation of
specifications for equipment and machinery, ordering of equipment, lining up construction
contractors, issue of construction drawings, civil construction and consiruction i
ment foundations, equipment and machinery erection, plant electricals, piping, inst
tion, testing, checking, trial run and commissioning of the plant take place during this
phase. As far as the volume of work is concerned, 80-85% of project work is done in this
phase only. Naturally, therefore, people want to start this phase as early as they can.
Since the bulk of the work in a project is done during this phase only, people will always
want this phase to be completed in as short a time as possible. All techniques of project
management, therefare, are applied to this area essentially.
This phase itself Ueing more or less the whole project, every attempt is made to fast track,
i.e., overlap the various sub-phases such as engineering, procurement, construction and
commissioning to the maximum extent. This is besides starting the implementation stage itself
in parallel with the earlier phases of the project life cycle. Hardly any project can afford the
luxury of completing one implementation sub-phase fully before moving on to the next.
The amount of fast tracking will, however, depend on who is doing the project, If design
is done by one agency and construction by another, then the scope for fast-tracking be-
comes very Jimited. Jf, on the other hand, design, supply and construction is contracted
out as a total package, then the contractor is in a position to use fast-tracking to the
maximum extent possible. It is this and many such requirements of this phase that have
given birth to what is considered modern project management.
This phase, because of its peculiarities, has a high need for coordination and control.
Peonle may take months and years im taking decision on the project, but once the project
is cleared and enters the implementation phase every one will like the time lost in the earlier
phases to be made up during this phase only. Such being the case,, meticulous coordination
and high pressure management and control is required during. this phase. Figure 1.3 lists
the sub-phases and shows the extent of fast tracking in this phase of project life. Concepts of Project Management 9
sue
sue-muase won
use| oestinion
1 DETAILED ENGINEERING COT
| ORDERING }
fo /
== LP tt
v START-UP
FIG. 1.3 Sub-phases of project implementation for an engineering project,
PrOfect Clean-up Phase
This is a transition phase in which the hardware built with the active involvement of
various agencies is physically handed over for production to a different agency who was
not so involved earlier. For project personnel this phase is basically a clean-up task.
Drawing, documents, files, operation and maintenance manuals are catalogued and handed
over to the customer. The customer has to be satisfied with guarantee-test runs. Any change
required at the last minute for fulfilment of contractual obligations in respect of perform-
ance has, therefore, to be completed during this phase to the satisfaction of the customer.
Project accounts are closed, materials reconciliation carried out, outstanding payments
made, and dues collected during this phase.
The most important issue during this phase is planning of the staff and workers involved
in execution of the project. All project personnel cannot be suddenly asked to go.
Preparation for project clean-up has, therefore, to start a long time before actual physical
handover, The first to go are design engineers and in their place few design engineers may
be posted at field for residual engineering. This will be followed by other engineers—most
‘of the time in the order in which they came in. Their places will be taken by customer's
engineers who may be either for production or maintenance. The same people will never
be required again at that site till a new project comes.
ive t Life Cycle Curves
The project life cycle phases form an interesting pattern indicative of growth, maturity and
decay almost similar to the human life. Figure 1.4 shows a typical project life cycle curve.
The curve shows the various phases in sequence and the approximate effort involved in each
phase, though in real life the phases will overlap, It can be seen from the curve that effort sauna 9969 ayuL alord FL “DLA
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build-up in a project is very slow but effort withdrawal is very sharp. It can also be seen
that time taken in the formative and clean-up stages together is more than the implementa-
tion stage, While this pattern is true for all projects, the per cent of effort in the different
phases would not be the same for all projects. However, for the same class of project the
curve may be more or less the same. A life cycle curve can, thus, represent a class of
project.
This parabolic pattern of growth, maturity and decay manifests itself in all phases of the
project life. Thus, in the implementation phase of a project, the life cycle pattern is evident
in detailed engineering, ordering, delivery, construction/erection and start-up. And for a
particular class or projects this pattern may be characteristic of that project class. This
knowledge of a characteristic life cycle curve enables a project manager to ascertain the
state of health of any project at any point of time.
Figure 1.5 shows life cycle curves and associated line of balance. The life cycle curves
here have been drawn in ‘S’ curve form to represent cumulative growth at any time. If the
curves are drawn to indicate the minimum growth required for a sub-phase at any point of
time to meet the targetted completion date of a project, then a line of balance can be drawn
from the same to indicate the state of health of a project.
Figure 1.5(b) indicates the qualifying standard of health for a project at the 18th month.
This has been drawn by reading the minimum progress prescribed in Fig. 1.5(a). If the
actual progress in any of the sub-phases falls short of the qualifying work for that sub-
phase, then that sub-phase is sick and requires treatment. Thus the concept of a
characteristic life cycle curve for a project phase is very useful for the management of a
project. We will discuss more about life cycle curves and line of balance in Chapter 4.
Project Visibility
A project cannot be seen for most of its life time, It starts with everything vague and fluid
and for almost half of its life span it shows no concrete benefits. Only towards the end of
the project people seem to be seeing the project. Though we have made it clear at the
beginning that a project is not a plant, people seem to have problems in accepting the fact.
Accountants, in particular, want solid proof of progress before they release payment. While
proof of progress can be given, it may not be possible to produce ‘solid’ evidence for
verification.
This non-visibility of a project also causes problems for its management. How to grapple
with a thing which is yet to come and be seen? A project becomes visible slowly as it
grows. Initially, one can only imagine what it would eventually be, but only the passage of
time can give it a concrete shape. At any point in the life cycle something will be clearly
visible, something nearly visible, but the rest will still have to be imagined. Figure 1.6
shows the conceptual model explaining this phenomenon. At f, visibility is zero—it re-
quires total projection. At f2 time, part of the project preceding time fz becomes visible,
and something upto fs may become nearly visible—the rest will still have to be a projection,
One who wants to know a project has, therefore, to go on projecting all the time to get an
idea of the reality—since there is simply no other way. Perhaps this aspect of the project
life would justify the term project being used to describe the efforts of multitudes of men
and machines engaged in the conversion of an idea into reality.
While visibility demonstrates progress, it may not mean much to some people. To the % PROGRESS.
LEGEND +
DETAILED ENGINEERING
== == ORDERING
eee DELIVERY
apo CONSTRUCTION
—-— START-UP
18 2 30 36 42
TIME IN| MONTHS
DETAILED
ENGG,
ORDERING
wo
DELIVERY
L[ LINE OF BALANCE
AT 18th MONTH
4 CONSTRUCT-
ION
(bea
FIG. 1.5 Life cycle curve:
40 60 80 100
‘% PROGRESS
(@) Cumulative growth chart (b) Line of balance 3 a
ty Vv THRKKN
CRIN
Sei
<4-rpma
a
el
PROJECT LIFE CYCLE
FIG. 1.6 Project conceptual model
user, project value may remain near zero not only at f: but throughout the project life. A
Project abandoned in-between has zero value; the full value of the Project is realised only
at the end.
«_PROsECT MANAGEMENT CONCEPTS
The peculiarities described so far about a project require a special approach to ensure the
Success of the project. We may term this special approach as project management, Now
success for a project means :
1. It must get completed
“2. It must be completed within budget
3. It must get completed within allocated time
4, It must perform to satisfaction
Project management meets these demands,
‘The success, however, can be achieved only through people. To that extent the principles
of general management must apply to project management also, What makes project mana-
gement different is its approach to task which besides its specification, is fully bound by
time, cost and performance targets.
son in Project Management
Project management approach basically consists of the following five steps: 14 Projgct Management
1. Grouping work into packages which acquires the properties of a project. This means
that the works so grouped are related to each other, contribute to the same goal(s) and
can be bound by definite time, cost and performance target:
| _ 2. Entrusting the whole project to a single responsibility centre known as the project
| manager, for coordinating, directing and controlling the project.
3. Supporting and servicing the project internally within the organisation by matrixing
or through total projectisation, and externally through vendors and contractors.
| 4. Building up commitment through negotiations, coordinating and directing towards
| goals through schedules, budgets and contracts.
5. Ensuring adherence to goals through continuous monitoring and control using
schedule, budgets and contracts as the basis.
Defining what" is to be done, maintaining its integrity, and ensuring that it is done and
Performed as desired, within time and cost budgets fixed for it through a modular work
approach, using organisational and extra-organisational resources is what project management
has to achieve.
To use project management the first step needed is to create a project. This is possible
even in a routine situation. To exemplify when a maintenance organisation involved in
Toutine maintenance decides to go for scheduled maintenance, a scope for using the project
management approach is created. The organisation can install a project manager who may
take the following steps :
1. Projectise maintenance work as much as possible, i.e. create a number of projects such
«s daily, weekly, monthly, quarterly, biannual and annual maintenance of the entire plant.
2, Set cost and time targets for each of these projects, ie. daily, weekly, monthly
maintenance, etc.
3. Matrix with the maintenance department which will now provide maintenance still
including labour and supervision, The maintenance department may be responsible for
breakdown and running maintenance.
4. Line-up vendors and contractors for supply of materials and erection skills.
5. Matrix and coordinate with other departments for preparation of drawings, specifica-
tions and procurement of materials.
6. Monitor and control these projects using schedules, budgets and contracts.
The benefits of such an approach are immediately apparent. Total plant shutdown time
as also the maintenance cost will be minimum. This is because :
1, The project manager will be wholly concerned with completing the projectized mainten-
ance work within the budget and schedule. Unlike the maintenance manager he is not
concerned with the day-to-day maintenance-related problems. Also, since his performance
will be evaluated in terms of schedule and budget, he will ensure the best possible adherence
to the same,
2. All maintenance work will be accommodated within the longest maintenance cycle
time known as critical path (usually the maintenance time of the critical equipment), thus
reducing the total plant down-time to minimum.
3. Each agency will have definite time and cost targets to work to. The work of these
agencies will be continuously monitored and, therefore, problems will be reviewed and re~
solved even before they cause any damage. The agencies will, therefore, be working in an
environment conducive to fulfilment of targets. 4. A project manager manages what he projects. He is, therefore, concerned with how to
achieve the next target and not to make a fuss as to why the previous targets have not been
achieved. This approach makes things work, as people then gear themselves for future
successes and not prepare cases in defence of their past failures.
5. Since the project manager will have the necessary auth to take most of the
decisions relating to his project, decisions will be made faster. Project management depends
on maximum lateral coordination and this make it possible not only to take fast decisions
but also enables fast implementation of decisions.
cet Management v Functional Management
The need for using the project management approach in preference to the functional
management approach can be better appreciated if we consider the following two aspects of
project work.
\ LAI work has inter-dependence and inter-relationship with others. Nothing stands
alone and isolated. No good decision can be made without considering all inter-related
things and no useful thing can be achieved without completing the whole. The importance
of any work depends on how it stands in relation to others and to the whole.
2. The work and the inter-relationships are liable to change with time but still the end
objective does not change. The future, thus, being uncertain, one needs to always keep an
eye on the future and adapt himself very fast to the changed needs of the future. A static
plan will not work—quick responses and flexibility are essential for dealing with ever-changing
dynamic situations.
Structuring of responsibilities based on specialisation would not meet these basic require-
‘ments of a project. To talk of specialisation, a simple house building work itself could be
divided into so many specialities. But if one lines up separate specialists for each and every
type of work, then the building may never come up. Grouping and generalisation of work,
as far as practicable, as opposed to extreme specialisation and too much division of work, is
the first need for fast work and hence for managing work by Project Management.
Immediately following this is the need for trade off—accepting lesser than the best, in one
or more areas, for an overall benefit. All specialists may be against this, but no project can
come up in time or cost without this flexibility. A flexible and generalist approach, rather
than a rigid specialist approach, will be needed for adopting the project management
approach.
In the name of functional specialisation, the totality of work is often lost sight of.
“Functional specialisation carried to an extreme could mean that someone only thinks (using
® the head) and someone else only talks (giving lip service). Real work may be done by a
third person by dirtying his hands, and there may be yet another person to do the actual
leg work (follow-up). This way only a part of the human being and not the whole person
is involved in the execution of a project. Also, with such an arrangement, no single
individual, except the chief executive, can be held responsible for a work from A to Z. This
necessarily creates problems of communication, coordination, commitment and control.
‘A work is done better if it is taken up as a whole and assigned to one responsibility
centre. Work in the context of a project is not mere pracessing or conversion of input to
output—work is done when the objective for which the work was undertaken in the first
instance is achieved. Anything done in between are only time and cost consuming motions. 16 Project Management
‘One has not done any work but merely involved himself in exercising motions till the ulti
mate objective is achieved, This concern for the ultimate objective is the motivating force
for the project Management approach. a : :
To practise project management one must be able to distinguish what is part and what is
whole—what is motion and what is work, Unless this is fully driven into everyone’s mind,
energy will be wasted in useless motions. The project management approach is, therefore, a
necessity for all of us whether we are building a multi-billion dollars high technology pro-
ject or running a simple automobile shop for it simply means dedicating ourselves to the end
objective and keeping the totality in focus all the time.
Project management, like functional management, will require getting things done through
people but with a little difference. The people this time will be more in number from the
environment than the people within the organisation. Naturally, they will also not be bound
by the organisation's own work ethics and discipline. We may be required to get the work
done much the same way we do in our social setting. Many may find this uncomfortable, as
it would require a lot of patience and skilled listening and negotiating capability.
Besides, in project management the work gets done mostly through lateral and diagonal
contacts, the hierarchical protocol is almost non-existent. Communication is faster, decisions
are taken quickly and at a lower level and unnecessary repetition of reports to involve and
apprise authorities at higher levels for routine and petty decisions are avoided. But while
the freedom exists for communication, sorting out problems and decision making com-
mensurate with responsibilities at lower level, the higher level are always kept informed and
involved if the situation so demands. This style of operation is characteristic of project
management—whether the structure is purely projectised, matrix or functional. The protocols
of the organisational hierarchies, salary levels and designations are all unimportant as far as
working relationships are concerned. Project management presupposes that the human
orgariisation is created to manage a physical system which has a natural inter-relationship and
interdependence and therefore, the human system must correspond to the physical system and
respond to the demands of the physical system without creating another artificial system
based on class, creed and colour. Ideally the human organisational system should be a
mirror image of the physical system, but this again is not possible no matter how much we
may like it to be identical, But we cannot, at the same time, forget that it is the physical
system which came first and is the basic issue in hand. We will discuss more on this in
Chapter 3,
Many may also not like to projectize their outlook, i.e, look alll the time at the future,
foregoing the pleasures of digging and delving into the past for finding out whom to appor-
tion blame for any failures in the past. But overriding all this may be the desire, not to be
tied down to targets, budgets, specifications and performance guarantees which project
management demands. Who would like to be chained if it is possible to live free?
TOOLS AND TECHNIQUES FOR PROJECT MANAGEMENT
Project management has a_special set of techniques. But project management like any
functional management is not technique only.\The techniques are the scientific past of
management—but then there is also the art and politics of management, and one could ignore
them only to one’s periJ/ For quite some time project management was equated with
PERT/CPM but it did not take long for them to get disillusioned. This should not mean that PERT/CPM has failed; what it really reflects is that it would be totally amateurish to
assume that techniques however powerful and versatile could scientifically deal with issues
of management which are non-scientific in nature.
What the scientific part of management and scientific techniques lack is human wisdom,
whictrone may Tike to term as the art and politics of managemenj. The scientific techniques
will only tell-what-is-right, but it will require right understanding of the organisation, the
people in the organisation, the mood of the people, an uncanny se se of what will go-and
Bhat will not and a good sense of timing to achieve its right implementation. The techniques,
therefore, may provide only as to what is to be done, but it will require additional knowledge
as to how it should be done and get it done through people. The techniques have no answer
for the same—it can be learnt only through practical experience.
Notwithstanding the above limitations, there are several techniques which would contri-
bute significantly towards effective project management. These can _be broadly grouped
under the following heads:
1. Project selection techniques—
(a) Cost benefit analysis and
(b) Risk and sensitivity analysis
2. Project execution planning techniques— _
(a) Work breakdown structure (WBS)
(b) Project execution plan (PEP)
(c) Project responsibility matrix and
(@) Project management manual
3. Project scheduling and coordinating techniques—
(a) Bar charts
(b) Life cycle curves
(c) Line of balance (LOB) and
(d) Networking techniques (PERT/CPM)
4. Project monitoring and progressing techniques—
(a) Progress measurement technique (PROMPT)
(b) Performance monitoring technique (PERMIT) and
(c) Updating, reviewing and reporting technique (URT)
5. Project cost and productivity control techniques—
(a) Productivity budgeting technique
(b) Value engineering (VE) and
(c) COST/WBS
6. Project communication and clean-up techniques—
(a) Control room and
(b) Computerised information systems
There are many such techniques which though without any label have standard application
methodology. We will discuss these techniques in the subsequent chapters, not as separate
techniques, but in relation to their application for the problems in hand. There is, however, a risk in listing the techniques in the way it has been done above,
Perhaps it is worthwhile to emphasize at this stage itself that while the techniques by them-
selves are sound and capable of yielding results, they cannot deliver what they are capable
of because a project manager has to attend almost eight to ten items at the same time. Think
of a stuntman trying to walk across a tight rope—he mostly does it with a bamboo pole,
Many of us who know this technique may succeed with considerable training. Now ask the
stuntman to cross the same rope swinging in the wind and simultaneously perform other
tricks as shown in Fig. 1.7. What do you think will be his chances of success? A super-
stuntman may still be able to do this, But what about ordinary people? A Hatha Yogi can
cross a river barefooted-they attribute his success to techniques and training; but as far
as we ordinary mortals are concerned, these will be beyond us.
Perfection in all spheres is a feat of divinity—at least it so appears whatever claim the
Project management companies may make today. The stories of all the so-called successful
(Cperroommes
(CO reoverty
EXTERNAL
INFLUENCES,
ON WORK
COMPLETION START
OF WORK OF WORK
VIG. 1.7 Project management task projects reveal success in only one or two areas and project managers may earn laurels by
completing a project that merely performs. No wonder, therefore, that most project managers
are obsessed with the physical completion of a project and take pride if the project produces
results, ignoring whatever might have happened in other areas of performance like time, cost
or productivity.
So, while we talk of tools and techniques, let it be clear in everybody's mind that even if
one masters them all, one will still not have mastered project management. We first talk of
human wisdom without which any amount of theoretical knowledge will not be of much use.
Besides whatever attempts have been made to combine several techniques, no perfection has
been achieved so far. Therefore, if one wants to achieve perfect work accomplishment, the
techniques of time control cannot be fully blended with it. If, on the other hand, one desires
cost control, the techniques of time control would not go well with it. Besides, there is no
point in using a technique just for its cosmetic value. As things stand today the project
management companies promise so many things and yet very few project managers under-
stand them or are adept in using the same. And those who are adept in using the techniques
do not know what it means to manage a project. What, therefore, is expected is that project
managers should have appreciation of the available techniques and ask for specialised help
in areas which are very important. If he wants everything, he may get nothing; the only
party who may gain in the process is the management cc sultant or the software companies.
The message, therefore, is very clear. If you wish to complete the work to near perfection,
be prepared to sacrifice the time and cost factors. Similarly, if you wish to complete it in
time, you cannot be as rigid on cost and specification. It would be so wonderful if we could
have all the good things in life, but no such thing is possible in real life, and a project is no
exception, Yet there are so many computer based project management systems which promise
almost anything on earth and the public would be inclined to believe that the ultimate thing
Kas already arrived.
_ Sotipater Based Project Management Systems| Lg’ acvan tay 0)
Table 1.2 lists the programmes, their capabilities, inputs, outputs and mode of operation to
provide an overall view of the so-called scientific systems available for project management.
The list no doubt is impressive and there cannot be any doubt that with such tools and
techniques project management can never remain a trick as illustrated in Fig. 1.7. And
Temember we have not listed even one-tenth of the number of systems readily available in
the market. Things must indeed be too bright for the future project managers, But one must
admit that it is not so, at least not today. We may look forward to tomorrow when computer
terminals will be available at the project manager’s table like we have telephones today.
But then these telephones must work, as they are supposed to, and not behave like the ones
We see today in our country. Science and scientific thinking have progressed quite far—but
it will take us a long time to catch up with that or at least develop the desired scientific
temperament. And for those who are superstitious, non-believers, peddlers of crafty manage-
ment or petty politics, these systems may never become a reality even though computer
Prices may crash to those of telephones or pocket calculators,
Rationale Behind Computerised Project Management Systems
With the proliferation of computerised project management systems, it is possible that 20 Project Management
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