UNIT-01_Fundamentals_ Project management

Savitribai Phule Pune University
Third Year of E & Tc Engineering (2019 Course)
304193: Project Management
Teaching Scheme: Credit Examination Scheme:
Theory: 03 Hrs. / week 03 In-Semester (Theory): 30 Marks
End Semester (Theory): 70 Marks
Prerequisite Courses, if any: NIL
Companion Course, if any: NIL
Course Objectives: To make t h e s t u d e n t s t o u n d e r s t a n d
1. The basics of project management and its life cycle
2. The process of project identification, selection criteria of the project and how the project
planning is undertaken.
3. The organizational structure within a project and issues related to project management
4. The techniques for effective project scheduling and resource considerations in project.
5. The basics of effective handling the risks as well as managing finances within the project
6. The complete product development process and requirements for entrepreneurship along
with related legal issues.

Elective -II 1) Digital Image Processing 2) Sensors in Automation 3) Advanced JAVA
Programming 4) Embedded Processors 5) Network Security

Course Outcomes: On completion of the course,
learner will be able to -
CO1: Apply the fundamental knowledge of project management for
effectively handling the projects.
CO2: Identify and select the appropriate project based on feasibility study
and undertake its effective planning.
CO3: Assimilate effectively within the organizational structure of project
and handle project management related issues in an efficient manner.
CO4: Apply the project scheduling techniques to create a Project
Schedule Plan and accordingly utilize the resources to meet the
project deadline.
CO5: Identify and assess the project risks and manage finances in line with
Project Financial Management Process.
CO6: Develop new products assessing their commercial viability and develop
skillsets for becoming successful entrepreneurs while being fully aware
of the legal issues related D
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Teaching plan
Sr.
No
Content Duration Referenc
e Book
Page No. Remark
Unit I: Fundamentals of Project Management (06 Hrs.)
1. Basics of Project Management: Course
objectives and course outcomes.
1Hr T1 2 -- 6
Basic
2. Definition of Project, The Project Life
Cycle, Definition of project management,
Need of Project management,
1Hr T1 34 -- 75
Basics
3. Project Management process and its
importance, The Project Manager (PM)
1Hr T1 142 -- 157
Basics
4. Phases of Project Management Life
Cycle, Project Management Processes. 1Hr
T1
R2
382--386
329
Basics
5. Impact of Delays in Project Completions,
Essentials of Project Management
Philosophy.
1Hr T2 21--16
Basics
6. Project Management Principles. 1Hr T1 193,802 Basics

Unit I: Fundamentals of Project Management (06 Hrs.)
1. Basics of Project Management and its life cycle.
2. Definition of Project, The Project Life Cycle, Definition of project
management, Need of Project management,
3. Project Management process and its importance, The Project Manager
(PM),
4. Phases of Project Management Life Cycle, Project Management
Processes,
5. Impact of Delays in Project Completions, Essentials of Project
Management Philosophy,
6. Project Management Principles.
Mapping of Course Outcomes f o r Unit I:
CO1: Apply t h e f u n d a m e n t a l k n o w l e d g e o f p r o j e c t
management f o r e f f e c t i v e l y h a n d l i n g t h e p r o j e c t s .

Understanding Project Management
In order to understand project management, one must begin with the
definition of a project. A project can be considered to be any series of
activities and tasks that:
Have a specific objective to be completed within certain specifications
Have defined start and end dates
Have funding limits (if applicable)
Limited or finite human and nonhuman resources (i.e., money, people,
equipment)
Are multifunctional (i.e., cut across several functional lines)

 Definition of Project
 It is one shot, time limited, goal directed, major undertaking,
requiring the commitment of varied skills and resources.
 A Project is defined to be a task which has a definite beginning-
definite end time and which consists of several activities or jobs.
A Project generally exhibits most of the following conditions:
- It is unique.
- A Project is finite.
- Usually Complex
- A Project is Heterogeneous.
- Non-repetitive.
- Requires multiple resources from a finite resource pool.
- Limited resources in optimum manner.

 Definition of Project
SMART PROJECT
S: Specific: Project should be targeting a specific aim or goal.
M: Measurable: It should be quantifiable.
A: Attainable: It should be attainable with available resources.
R: Realistic: It should be realistic in nature, dreaming is fine, but we
certainly cannot manage the dreams. We need some real things to
be managed.
T: Time limited: As mention earlier there is a fixed time limit for any
project.
Characteristics of Project: Fixed set of objectives, Team work, Life
cycle, Made to order, Multi skill staff requirement, Subcontracting,
Risk and Uncertainty

Developing a new product or service.
Effecting a change in structure, staffing, or style of an organization.
Designing a ne transportation vehicle.
Developing or acquiring a new or modified information system
Constructing a building or facility
Building a water system for a community.
Running a campaign for political office
Implementing a new business procedure or process.
 Examples of projects include, but are not limited to:

 Difference between process and project
Process Project
Repeat process or product New process or product
Several objectives One objective
On-going One shot-limited life
People are homogeneous More Heterogeneous
Systems in place Systems must be created
Performance, cost and time is
known
Performance, cost and time less
certain
Part of the line organization Outside of line organizations
Bastions (support) of established
practices
Violates (disturb) established
practices

 Difference between process and project
Project Process
Repetition Non Repetitive Repetitive
Work force required Multi-skilled or very highly specialized for
short durations
Limited skills a huge learning
effect
Revenues No Revenues Revenues and profit / loss
Objectives Scope, performance, time, cost Profits generated, cost reduced,
quality of products or services
Equipment needed Special purpose equipment’s for a short
duration.
Some equipment’s are
continuously used
Subcontracting Essential, involves many subcontracting
agencies.
Generally avoids use of
subcontracting agencies.
Risk Very high risk as generally no chances of
recursion
Risk is less as chances of
improvement always there.

The Project Life Cycle
Whatis theprojectlifecycle?
The project life cycle includes the steps required for project managers
to successfully manage a project from start to finish. There are 5
phasestotheprojectlife cycle(also calledthe5 processgroups)
—initiating,planning, executing, monitoring/controlling, and closing.
• Project managers or the organization can divide projects into phases to
provide better management control with appropriate links to the ongoing
operations of the performing organization.
• Collectively, these phases are known as the project life cycle. Many
organizations identify a specific set of specific set of life cycles for use on
all of their projects.

 Definition of Project Management:
Project management, on the other hand, involves project planning and
project monitoring and includes such items as:
Project planning
Definition of work requirements
Definition of quantity and quality of work
Definition of resources needed
Project monitoring
Tracking progress
Comparing actual outcome to predicted outcome
Analyzing impact
Making adjustments

 Definition of Project Management:
Project Management: Project
management is the management
activities of planning, directing,
and controlling resources to
meet the technical, cost and time
constraints of a project.
Text book 01: Overview of Project Management

• To understand the importance of management in
today’s world.
• To establish the importance of projects in,
implementing organization strategy.
• To understand the rules for creating a work
Breakdown structure for the project.
• To demonstrate the importance of WBS to the
management of projects and how it serves as a
database for planning and control.
• To develop a network diagram for a project.
Main Objective of Project management:

Need of Project management,
Why Project Management is Important?
 Fast Technological changes : Electronic goods
 Narrow product launch windows
 High entropy of system: Expansion
 Short life cycle of products: s/w, mobile
 Globalization impacts: BRICS
 Large organizations
BRICS is an acronym for Brazil, Russia, India, China, and South Africa. Goldman Sachs
economist Jim O'Neill coined the term BRIC (without South Africa) in 2001, claiming that by
2050 the four BRIC economies would come to dominate the global economy by 2050.

10 Knowledge Area
1. Project Integration Management
2. Project Scope
3. Project Schedule Management
4. Project Cost Management
5. Project Quality Management
6. Project Resource Management
7. Project Communications Management
8. Project Risk Management
9. Project Procurement Management
10. Project Stakeholder Management
Project Management Processes.

PMBOK stands for Project Management Bod
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d it is the entire collection of processes, best
practices, terminologies, and guidelines that are accepted as standard within the project management industry.
Project Management Processes.

The Importance of Project Management for an Organization:

The Project Manager (PM)
A Project Manager (PM)
Project managers play
monitoring, controlling,
the lead role in planning, executing,
and closing out projects. They are
accountable for the entire project scope, the project team and
resources, the project budget, and the success or failure of the
project.

The importance of effective project managers
As more and more of our everyday work becomes project-based, it follows
that more and more people are finding themselves in the business of
managing projects — even if they’re not traditional project managers.
Project managers are the people who get buy-in for the project, who
communicate the changes, who understand how to get the best work out of
everyone, and who steer the project from beginning to end, even when it’s
being pushed off track. They’re the ones who not only plan and organize the
work itself, but who can explain the importance of planning for projects, so
that everyone on the team knows why what they’re doing is important.
The right person takes your project management strategy from good to great.
They turn your project’s plan into action. And maybe most importantly, they
bring everyone along on the journey — together

Project manager responsibilities
The project management phases intersect with 10 knowledge
areas, which include integration, scope, time, cost, quality, human
resources, communication, risk procurement, and stakeholder
management.
A project manager, with the help of their team, is charged with
multiple responsibilities that span the five project phases of a
project life cycle (initiating, planning, executing, monitoring, and
closing) below.

Highly effective project managers must have the following skills:
1. become a strategic business partner
2. encourage and recognize the valuable contributions of others
3. respect and motivate stakeholders
4. stress integrity and accountability
5. are fully entrusted in the success of the project
6. are able to “work in the leaden”

Phases of Project Management Life Cycle.
According to the PMBOK Guide (Project Management Body of Knowledge) by the Project
Management Institute (PMI), a project management life cycle consists of 5 distinct phases
including initiation, planning, execution, monitoring, and closure that combine to turn a
project idea into a working product and 10 knowledge area’s
Project Integration Project Scope Project Schedule Management
Project Cost Management Project Quality Management Project Resource Management
Project Risk Management Project Procurement Management Project Stakeholder Management
Project Communications Management
10 Knowledge Area

Knowledge Areas
Project Management Process Groups
Initiation Planning Execution Monitoring and Controlling Closing Total Processes
Project Integration Management 1 2 3,4 5,6 7 7
Project Scope Management 1,2,3,4 5,6 6
Project Schedule Management 1,2,3,4,5 6 6
Project Cost Management 1,2,3 4 4
Project Quality Management 1 2 3 3
Project Resource Management 1,2 3,4,5 6 6
Project Communications Management 1 2 3 3
Project Risk Management 1,2,3,4,5 6 7 7
Project Procurement Management 1 2 3 3
Project Stakeholder Management Dr. S
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3 4 4
Mapping of Project Management Processes and 10 knowledge area’s.

Mapping of Project Management Processes
Project Integration Processes
• Develop Project Charter
• Develop Project Management Plan
• Direct and Manage Project Work
• Monitor and Control Project Work
• Perform Integrated Change Control
• Close Project or Phase
Scope Management Processes
• Plan Scope Management
• Collect Requirements
• Define Scope
• Create WBS
• Validate Scope
• Control Scope

Project Time/ schedule Management Processes
• Plan Schedule Management
• Define Activities
• Sequence Activities
• Estimate Activity Resources
• Estimate Activity Durations
• Develop Schedule
• Control Schedule
•
• Project Cost Management Processes
• Plan Cost Management
• Estimate Costs
• Determine Budget
• Control Risks
• Project Quality Management

• Project Quality Management Processes
• Plan Quality Management
• Perform Quality Assurance
• Control Quality
• Project HR Management Processes
• Plan Human Resource Management
• Acquire Project Team
• Develop Project Team
• Manage Project Team
• Communications Management Processes
• Plan Communications Management
• Manage Communications
• Control Communications

• Risk Management Processes
• Plan Risk Management
• Identify Risks
• Perform Qualitative Risk Analysis
• Perform Quantitative Risk Analysis
• Plan Risk Responses
• Control Risks
Procurement Management Processes
• Plan Procurement Management
• Conduct Procurements
• Control Procurements
• Close Procurements
• Stakeholder Management Processes
• Identify Stakeholders
• Plan Stakeholder Management
• Manage Stakeholder Engagement
• Control Stakeholder Engagement Dr. S. L.Tade_PCCoE_Pune

05
Impact o f Delays in P r o j e c t Completions.
E s s e n t i a l s o f P r o j e c t Management Philosophy.

Impact of Delays in Project Completions
Why do projects get delayed?
However, delays can happen for various reasons
such weather, equipment failures, labor shortages,
missing or incorrect data, project mistakes and conflicts.
There are some reasons, like weather that are beyond
your control.

Completion o f a p r o j e c t in time and within b u d g e t is a
common g o a l o f a c o n t r a c t o r and a c l i e n t
Delays  Failure o f b u d g e t  disputes (time = money)
A De laye d completion o f w o r k compared t o t h e p l a n n e d /
c o n t r a c t s c h e d u l e (=loss o f time)
It’s possible t o make up time by w o r k i n g f a s t e r o r
r e a r r a n g i n g t h e w o r k s e q u e n c e
C o n t r a c t o r s r e l a t e d d e l a y s a r e t h e most significant
ones.

Delays can be caused by one or more o f the following agencies :
Client and his team-mates
Contractor and his team-mates
Nature (i.e. earthquakes)
Due to a third party (i.e. strike)
Faults in documents, designs or decisions
Insufficient number o f equipment
Inaccurate cost or time estimation
Poor site management and supervision
Shortage o f construction materials
Incompetent project team
Contractor’s/ client’s financial difficulties
Etc.

The following types o f delay help to
determine the impact o f the delay on
the project :
Critical or non-critical
Excusable or non-excusable
Concurrent or non-concurrent
Compensable or non-compensable

Critical or non-critical
Critical delays: The delay interferes with the total time frame
Non-critical Delays: The delay does not interfere with the
total time frame
Excusable or non-excusable
Excusable delays: Delay caused by the client, e.g. the owner
denies access to the site or Delay caused by strike, fire,
unusual weather etc.
Non-excusable delays: Delays caused by the sub-
/contractor, e.g. not enough manpower on site to complete
the job in time.

Concurrent delays:
Two or more delay events occur at the same time or overlap
to some degree.
 At least one of the delays has to be caused by the
contractor and one by client.
Non-Concurrent delays:
 Delays do not overlap.
 The client’s failure to provide to coordinate several prime
contractors
 The client’s failure to provide adequate access to the project
 Change orders placed by the client
 Any interference by the client
 Delays caused by a third party under the control of the client

The claim depends on the cause of the delay, which must be identified.
Therefore the responsibility is being clarified.
Possible Claims:
 Time extensions (for the contactor)
 Financial compensations (for client and contractor)
For the client:
 Delay in use of project
 Capital is blocked
 Escalation (Increase) in subsequent investment
For the contractor:
 Delay in getting profit
 Idle of resources (machines, workers, etc.)
 Productivity loss due to uncontracted work period

How to avoids Delays in Project Completions
Identifying the cause that led to the delay
Providing enough financial resources
Competent project management
Resource availability
Frequent progress meetings
Choosing the right (experienced) consultants,
suppliers and contractors
Accurate cost estimation, etc.

What is project management philosophy?
A personal Project Leadership Philosophy is a
summary of the guiding principles, beliefs, and
practices that shape the way you lead projects
and teams. ... The key is to get this philosophy on
paper so that you can consciously and purposefully
consider how you might improve or adapt your style
to be more successful.

A personal Project Leadership Philosophy is a summary of
the guiding principles, beliefs, and practices that shape the
way you lead projects and teams.
This philosophy should not be static—our industry, our company,
our mentors, and our experience should always be influencers of
our approach. The key is to get this philosophy on paper so that
you can consciously and purposefully consider how you might
improve or adapt your style to be more successful.
Project philosophies can look any way you would like them
to, so long as they capture meaningful information about the
experiences, assets, and liabilities you bring to the role—and
how you intend to leverage or mitigate those for greater
success.

PMI Quality Management principles are based on few popular philosophies.
Quality philosophies
Total Quality Management (Deming):- Proactive approach with Stastical
analysis.
Zero Defects (Crosby):-Do it right the first time.
Fitness for use (Juran):- Satisfy customer needs
Continuous Improvement (Kaizen):- Proactive approach to process
improvement
Gold plating:- Unacceptable practice of providing more than requested
Cost of Quality: - cost of confirming is less than cost of non-confirming
Design of experiments:- Isolate factors that influence results
6 sigma- strive for 99.9997%
ISO 9000:- documents what you do; what you document

Quality principles
Define and satisfy customer’s needs.
Prevent rather than inspect
Be active rather reactive
Validate project processes
Measure against approved standards
Continually improve
Take accountability

Text Books:
1. H.Kerzer, “Project Management: A Systems Approach to
Planning, Scheduling, and Controlling”, John Wiley & Sons,
Inc., 10th Edition, 2009.
2. Chandra, P., “Projects”, Tata McGraw-Hill Education, 8th
Edition, 2009.
Learning Resources

Reference Books:
1. Morris, P. W. G. and Pinto, J. K., “The Wiley Guide to Managing Projects”, JohnWiley &
Sons, 2004.
2. Karl Ulrich, Steven Eppinger, “Product Design and Development”, McGraw Hill / Irvin, 3rd
Edition 2009.
3. R. Majumdar, “Product Management in India”, PHI, 2nd Edition, 2010.
4. G.S. Batra, “Development of Entrepreneurship”, Deep and Deep publications, New Delhi.
5. Christine Petersen, “The Practical Guide to Project Management”, PMP,1st Edition, 2013.
6. Russell W. Darnall, John M. Preston, “Project Management from Simple to Complex”, The
Saylor Foundation.
7. Levy, F. K. and Wiest, J. D., “A Management Guide to PERT/CPM”, Prentice Hall, 2nd
Edition, 1969.
8. Lewis, R., “Project Management: Strategic Design and Implementation”, McGraw-Hill, 5th Edition.
2006.
9. Venkataraman. R., J.K. Pinto, “Cost and Value Management in Projects”, John Wiley & sons.
Learning Resources

Learning Resources
NPTEL Courses:
1. NPTEL Course “Project Management for Managers”
Link of the Course: https://nptel.ac.in/courses/110/107/110107081/
2. NPTEL Course on “Intellectual Property Rights and Competition
Law”
Link of the Course: https://nptel.ac.in/courses/110/105/110105139/

List of Tutorials to be carried out:
1. Understanding Impact of Delays in Project Completions with a
company’s case study.
2. Designing a Work Breakdown Structure (WBS) for any sample
project.
3. Case study on Conflict Resolution and understanding its
challenges.
4. Solve examples on Project scheduling using CPM and PERT
Model.
5. Assignment on Risk Identification and Risk Analysis with a
company’s example and/ or exploration of various project
management tools.
6. Prepare a Business plan for an sample Product/ Service to be
launched.

Tutorial 01- Understanding Impact of Delays in Project
Completions with a company’s case study.
For example: Causes and Impact of Construction company’s Project
Delays
 Construction project delays have always been a source of concern in the
construction industry. These are when construction projects exceed the
contract schedule.
 Construction delays occur in many construction projects and the magnitude of
these delays vary considerably. While some projects end up only a few weeks
behind schedule, some are delayed for longer periods.
 Construction delays are a major issue, specifically in the Nigerian construction
industry. Thus, it is necessary to bring to light the causes of construction delays
as well highlight the extent to which delays can adversely affect construction
project delivery.

Causes
Increase in Materials Prices
Frequent Equipment Breakdown
Changing of Order:
Inaccurate Cost Estimates
Late Delivery of Construction Materials:
Poor Design
Poor Construction Site Management and Supervision:
Environmental Catastrophes:
Economic Change:
Poor Coordination between Time Schedule and Execution:

Solution
 More Accurate Cost Estimates:
 More Accurate Schedules.
 More cleared communications
 Detailed Planning and Monitoring:
 Better Procurement Processes:

Electronics
manufacturing company ,
Software company etc…

UNIT-01_Fundamentals_ Project management

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