UNIT-3

Project Management
 CONTENT
• Project management: meaning, scope &
importance, role of project manager;
• project life-cycle Project appraisal:
Preparation of a real time project feasibility
report containing Technical appraisal,
Environmental appraisal,
• Market appraisal (including market survey for
forecasting future demand and sales) and
Managerial appraisal.
 Project
• A project is defined as a specific, finite set of activity that produces an
observable and measurable result under certain preset requirements.
• A planned activity which is carried out to meet certain objectives.
• A project is a temporary endeavor to create a unique product or
service
• Project is a great opportunity for organizations and individuals to
achieve their business and non-business objectives more efficiently
through implementing change.
• Projects help us make desired changes in an organized manner and
with reduced probability of failure.
• Projects differ from other types of work (e.g. process, task,
procedure).
 Characteristics of a Project
• Planning is required.

• Predetermined time span.

• Non-routine tasks are involved.

• Work is carried out for someone other than

yourself.
 Characteristics (cont.)
• Resources are constrained.

• Specific objectives / product should be the

outcome.

• It is large or complex.

• Several phases are involved.

 Project identification
• Project identification is a process in the
initiating phase of project life cycle for
identifying a need, problem, or opportunity.
Once identified, a project is initially
documented objectively defining what was
identified. 
 Project Life Cycle
• A project is not a one shot activity. Even a shooting
star has a time and life span.
• Project lifecycle is spread over a period of time. There
is an unavoidable gestation period for the complex of
activities involved to attain the objectives in view.
• This gestation period, however, varies from project to
project but it is possible to describe, in general term,
the time phasing of project planning activities common
to most projects.
• The principal stages in the life of a project are :
Project Life Cycle
 Project scope
• Project scope can be defined as a part of project planning that
includes figuring out and documenting a detailed list of
deliverables or features that are to be involved in the
execution of the project. 
• In other words, project scope is defining the goals of the
project and what needs to be done to achieve it. 
• If you’ve ever worked on a project, there are good chances
that you’ve heard the term project scope quite a few times.
It’s probably the most decisive component of a successful
project management. 
 What is Project Scope?

• Scope refers to the detailed set of deliverables or features of

a project. These deliverables are derived from a project’s
requirements.
• PMBOKdefines Project Scope as the “The work that needs to
be accomplished to deliver a product, service, or result with
the specified features and functions.”
• Additionally, the scope of the project should have a tangible
objective for the organization that is undertaking the project.
This is integral for the scope of the project since it will play a
vital role in how project methodologies are applied to
complete it.
The project scope statement can include:
• Product scope
• Project scope
• List of deliverables
• Acceptance criteria
• Project exclusions
• Limitations
• Assumptions 
 Difference between Project and
Product scope
• Project scope refers to the work that must be done to deliver
a product (or service) successfully with the specified features
and functions. For example, if you’re supposed to develop a
software application, the project scope is the work that has to
be done to develop the software application with proper
functionalities.
• Product scope refers to the features and functions that are to
be included in a product. Simply put, it is what a customer
wants in a product or service. For example, if the product is a
smartphone, the product scope will be its screen size, battery
backup, memory, processor speed, etc.
 Project Scope Management
• Project scope management refers to the set of processes that
ensure the scope of a project is accurately defined and
mapped. It must include all the essential project information,
not anything else in order to complete the project on time.
• Project Scope Management refers to the set of processes that
ensure a project’s scope is accurately defined and mapped.
• Scope Management techniques enable project managers and
supervisors to allocate the right amount of work necessary to
successfully complete a project—concerned primarily with
controlling what is and what is not part of the project’s scope.
 Project management
• Project management is the process of leading the
work of a team to achieve all project goals within
the given constraints.
• This information is usually described in project
documentation, created at the beginning of the
development process. The primary constraints
are scope, time, and budget.
• The secondary challenge is
to optimize the allocation of necessary inputs and
apply them to meet pre-defined objectives.
 Objective of project management
• The objective of project management is to produce a
complete project which complies with the client's
objectives.
• In many cases the objective of project management is also
to shape or reform the client's brief to feasibly address the
client's objectives.
• Once the client's objectives are clearly established they
should influence all decisions made by other people
involved in the project – for example project managers,
designers, contractors and sub-contractors.
• Ill-defined or too tightly prescribed project management
objectives are detrimental to decision making.
Benefits of Project Management Approach

• Project management approach will help in handling complex,

costly and risky assignments by providing interdisciplinary
approach in handling the assignments. Example: R&D
organizations.
• Project management approaches help in handling assignments
in a specified time frame with definite start and completion
points .Example handling customer orders by Industries
involved in production of capital goods.
• Project management approaches provide task orientation to
personnel in an Organization in handling assignments. Example:
Organizations in IT sector handling software development
assignments for clients.
Project Management Life Cycle
1.Initiation involves starting up the project, by
documenting a business case, feasibility study,
terms of reference, appointing the team and
setting up a Project Office.
2. Planning involves setting out the roadmap for
the project by creating the following plans:
project plan, resource plan, financial plan,
quality plan, acceptance plan and
communications plan.
3. Execution involves
building the deliverables
and controlling the project
delivery, scope, costs, quality,
risks and issues.
4. Closure involves winding-down the project by
releasing staff, handing over deliverables to
the customer and completing a post
implementation review.
 Deliverable
• A deliverable is a tangible or intangible good or service produced
as a result of a project that is intended to be delivered to a
customer (either internal or external). A deliverable could be a
report, a document, a software product, a server upgrade or any
other building block of an overall project.
• A project deliverable is any output created as the result of work
done during a project. Defining, tracking, and managing project
deliverables is one of the most important responsibilities of a
project manager. In project management, however, it means
something more definite: a specific output created as the result
of work performed during the course of a project.
 TOOLS AND TECHNIQUES FOR PROJECT
MANAGEMENT
1. Project selection techniques
(a) Brain Storming
(b)Cost benefit analysis and
(c) Risk and sensitivity analysis
2. Project execution planning techniques
(a) Work breakdown structure (WBS)
(b) project execution plan (PEP)
(c) Project responsibility matrix and
(d) 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 techniques
(b) Value engineering (VE) and
(c) COST/WBS
• 6.Project communication and clean-up techniques
(a) Control room and
(b) Computerised information systems
 Project Team
• The project team consists of people with assigned roles and
responsibilities for completing the project.
• Project team members have varied skill sets and they may
be assigned full or part-time.
• Team members may be on-site, or remote in which case the
project manager needs to know how to deal with a virtual
team.
• The team would have a mix of people so that all the
necessary skills, knowledge and understanding are
collectively within that team, subject to any further
specialized support that is needed.
 Project Manager
• A good project manager delivers projects
within the deadline and budget set by the
clients, meeting or even exceeding the
expectations of the stakeholders.
• But what does it take to make a good project
manager great?
• Here are the top 10 qualities one must have to
become a successful project manager.
1. Leadership
A great project manager will set the tone for the project and provide a
clear vision about its objectives for the team. A sense of foresight
helps as well: by anticipating potential problems, you can have your
team ready to solve them in the blink of the eye. Enthusiasm and
passion are crucial to ensure that people follow you—nobody will do
so if you’re sporting a negative attitude.
2. Task delegation
Being a leader doesn’t mean that you need to think about every tiny
little detail of a project. Show your team members you trust them and
delegate tasks to them. Of course, you should be able to judge your
team members’ skills and assign the tasks in accordance with their
strengths.
3. Communication
Good communication is not only about transmitting your vision to your
team, it’s also about maximising the efficiency of meetings to make
decisions and solve problems. People get easily bored during long,
unorganised gatherings. The same goes for written communication:
emails and reports are a means of communication you use daily so you
need to be able to make most of them.
4. Empathy
As a team leader, you’ll need to be empathetic rather than sympathetic.
Sometimes the work of your team members might be affected by the
difficulties they experience in their private lives. It’s important that
your team stays focused on the project and that each member remains
productive even when having personal troubles.
5. Organisation
Good organisation is a key factor for creating a productive work
environment as well as solving problems under pressure. Being well-
organised helps to stay focused on the big picture and to prioritise
your own tasks and responsibilities.
6. Competence
Being on top of your projects entails a vast amount of industry
knowledge to be effective in what you do. Some knowledge on the
financial and legal side of your projects will not hurt either. You need
to be perceived as capable and competent by your team. Mind you,
it’s not about technical expertise: you’re there to lead, which means
encouraging, challenging and inspiring the members of your team.
7. Integrity
This word essentially means loyalty and honesty. You should be able to
gain the trust of your team, at the same time setting the ethical tone
on the projects and showing that you yourself follow the rules you set
for others. Projects must be profitable, sure, but that doesn’t mean
you’ll need to bend your morality to do so. If you’re project manager
material, you’ll be able to come up with various solutions that will
serve your ends.
8. Problem solving
• You are the leader of the team, but that doesn’t mean you’ll solve all
the problems yourself. Great project managers work with a team of
experts or consultants and use their expertise to tackle problems in
most efficient ways.
9. Collaboration
This is crucial—every great project manager knows how important their team
is. A grasp of team dynamics is essential if you want your team to work
smoothly on your projects. When developing your team, keep this in mind:
conflicts and disagreements are bound to happen; as a leader, you’ll need
to be able to mediate them and make sure all you team members work
toward the same goal.
10. Team development
Delivering projects within the time and budget limit can be quite stressful; it’s
your job not to crumble under the pressure and make sure none of your
team members do. Good leaders know that problems make up the fabric of
life and are to be expected: they will treat problems as events that could
possibly influence the project in a new way by providing a different
perspective on its future.
 Project appraisal
• The project appraisal is the process of critical
examination and analysis of the proposal in totality.
• The appraisal goes beyond the analysis presented in
the feasibility report.
• At this stage, if required compilation of additional
information and further analysis of project dimensions
are undertaken.
• At the end of the process an appraisal note is
prepared for facilitating decision on the project
implementation.
• Project appraisal enables to take a decision on
investment with long term effects.
• During the appraisal stage, measurement of
costs and benefits are difficult as these are
spread over a long term with high degree of
uncertainty
Technical Appraisal
• It determines whether the technical parameters are soundly conceived,
realistic and technically feasible.
• Technical feasibility analysis is the systematic gathering and analysis of
the data pertaining to the technical inputs required and formation of
conclusion there from.
• The availability of the raw materials, equipment, hard/software, power,
sanitary and sewerage services, transportation facility, skilled man
power, engineering facilities, maintenance, local people etc., depending
on the type of project are coming under technical analysis.
• This feasibility analysis is very important since its significance lies in
planning the exercises, documentation process, risk minimization
process and to get approval.
• Checklist for Technical Appraisal
• Physical scale
• Technology used & Type of equipments & Suitability conditions
• How realistic is the implementation schedule
• Labour intensive method or others
• Cost estimates of Engineering Data
• Escalation are taken care of or not
• Procurement arrangement
• Cost of operation & Maintenance
• Necessary raw material & Inputs
• Potential impact of project on human & physical Environment
• Financial Appraisal
• To determine whether the financial costs and returns are properly
estimated and whether the project is financially viable. Following
minimum details are determined in the financial appraisal;
1. Total Cost
2. O & M Expenditure
3. Opportunity costs
4. Other costs
5. Returns on Investment over project life
6. NPV
7. CBR
8. IRR
• Institutional Appraisal
• To determine whether the implementing agencies as
identified in the report are capable for effective
implementation, monitoring, and evaluation of the scheme.
• Managerial competence, integrity, knowledge of the
project, the promoters should have the knowledge and
ability to plan, implement and operate the entire project
effectively.
• The past record of the promoters is to be appraised to
clarify their ability in handling the projects. Checklist
checklist for Institutional Appraisal
• Whether the entity is properly organised do
the job
• Strength to use capability and take initiatives
to reach the objectives
• Openness to new ideas and willingness to
adopt long term approach to extend over
several projects
• Commercial Appraisal
• The demand and scope of the project among the
beneficiaries, customer friendly process and preferences,
future demand of the supply, effectiveness of the selling
arrangement, latest information availability on all areas,
government control measures, etc.
• The appraisal involves the assessment of the current
demand/market scenario, which enables the project to get
adequate demand.
• Estimation, distribution and advertisement scenario also to be
here considered into.
• Environmental Appraisal
• To see any detrimental environmental impacts
and how to minimise the impacts.
• Environmental appraisal concerns with the
impact of environment on the project. The
factors include the water, air, land, sound,
geographical location etc.
• Economic Appraisal
• How far the project contributes to the development of
the sector, industrial development, social
development, maximizing the growth of employment,
etc. are kept in view while evaluating the economic
feasibility of the project.
• Legal Appraisal
• To determine whether the project satisfies the legal
issues related to land acquisition, title deed,
environmental clearance etc.