1. Basic Training:
PROJECT MANAGEMENT
By:
Conart Engineers Ltd©
Vadodara

2. Introduction: Project Management
 What is a Project????
 A Project is a planned set of activities with start and finish dates
undertaken to achieve an objective conforming to specific requirements
 A Project has a scope.
 A Project has time, cost, quality and resource constraints.
 What is Project Management???
 Project management is the application of knowledge, skills, tools, and
techniques to project activities to meet project requirements.

3. “Plan the Work”
“Work the
Plan”
“Endorse the Plan”
+ 10% of
Project effort
+ 90% of
Project effort
“Align the Team”
Project Management Process

4. The Triple Constraint
 Every project is constrained in different ways by its:
 Scope goals: What work will be done?
 Time goals: How long should it take to complete?
 Cost goals: What should it cost?
 It is the project manager’s duty to balance
these three often-competing goals.
 Successful project management means
meeting all three goals (scope, time, and cost)
and satisfying the project’s sponsor

5. Project Manager Role
 Managing clients expectations
 Carrying out project start-up activities
 Directing and supporting the project team by using leadership skills
 Tracking activities
 Communicating project status
 Managing change to control deviations from the established plan
 Resolving issues in a timely manner
 Maintaining the project notebook

6. Project life Cycle

7. Project Initiation

8. Project Initiation
 The first, and most critical phase in the project life cycle where the project
is defined, a team is assembled, and approval is given to proceed with the
project.
 Role of Project Manager at Project Initiation:
 Develop good project objectives on assessing needs.
 Distinguish B/W functional & technical requirements and to
understand role of both.
 Develop a project charter and a program requirement documents.
Project
Initiation
People
Involved
Project
Selection
Right Start
Project
Charter
Project
Requirement
Documents

9. People Involved in Project
 Two Categories of people are involved:
 Project Stakeholders: Are persons & Organization such as customers,
sponsors, Performing organization and the public, that are actively
involved in the project , or whose interests may be positively or
negatively affected by execution or completion of project.
 Project Personnel's: There are 3 types of project personnel’s
 Project Manager: Responsible for managing project.
 Project team: Group i.e. performing the work of project.
Core Project Team: Persons that will participate heavily in planning
and managing work

10. Project Selection
 Project Selection factor may be either Quantitative or Qualitative.
 Quantitative Involves:
 Benefit Cost Ratio: (Benefit)/(cost)
 The higher the ratio, the better the deal is.
 Its limitation is that it only focus on ration, not on the work
involved.
 And also it does not calculate in a way that takes into account the
time value of money.
 Present Value: PV = FV/( 1+ i)n
 FV is Future value
 I is interest rate or internal discount rate per the time measures
 N is number of time period.
 Its advantage is that it takes into account the time value of money.

11. Project Selection
 Project Selection factor may be either Quantitative or Qualitative.
 Quantitative Involves:
 Net Present value: PV benefits - PV investments
 It is used to compare revenues to costs in arriving at the value of a
project
 It can also be used to compare the present value of any two cash
flow projections.
 Payback Period
 The simplest method of determining value of cash is by
determining what the payback period is.
 This approach is nothing more than calculating how long it will
take to earn or save as much as you have invested.

12. Project Selection
 Project Selection factor may be either Quantitative or Qualitative.
 Qualitative Involves:
 Stakeholders Bias: Senior manager is likely to consider biases,
preferences or aversions of key stakeholders. This is difficult to
avoid, so it must be recognized. .
 Organizational fit: It addresses whether the project fits what the
organization is able to accomplish, undertake & whether it will
further organizations strategic mission.
 Risk: Preliminary analysis of risk should be done to decide whether
the project is worth undertaking despite its associated risk.

13. Right Start
 Project Initiation should start with a solid needs assessments and then
expands on it through the development of objectives, functional
requirements, and technical requirements.
Needs Objectives
Functional
requirements
Technical
requirements
Key Stakeholders Project Team

14. Project Charter and Project requirement documents
 Project Charter clearly defines what is to be produced or accomplished
 Its five major elements include:
 Assignments.
 Responsibility.
 Authority.
 Scope.
 Authorized signature.
Project requirement documents describes the identified project
requirements in details for project stakeholders. It also provides definitive
linkage to initiation & planning. Other requirements includes:
 Project objectives.
Scope statements.
 Product descriptions.
 User Characteristics.
 Assumptions
 Constraints.
 Interrelated projects
 Functional & Technical requirements

15. Project Planning

16. Project Planning Includes
Project Core Team
Scope Planning
Work Breakdown Structure
Estimating
Schedule & Cost Planning
Resource & Risk Planning
Procurement & Communication
Planning
Quality Planning
The Project Plan

17. Project Planning
 Ensures all work is identified.
 Schedule activities in logical manner.
 Address risk.
 Create realistic schedule.
 Obtain commitment.
 Ensure Resource availability.
 Adequate planning leads to the correct completion of work
 Inadequate planning leads to frustration towards the end of the project
& poor project performance

18. Project Core Team
 Core Project team members are involved people who will actively plan
and aid in the implementation of the project.
 Core team group should be small, highly interactive and flexible.
 It should include members who are self directed and interactive.
 It should not include the whole team and senior management.
 Scope: The sum of the products, services & results to be provided as a
project.
 Scope Planning: The process of progressively elaborating the work of
project, which involves developing a written scope statement that
includes the project justification, the major deliverables & project
objectives.
 It is most important type of planning because planning for everything else,
including costs, resources, risk etc depends on it.
Scope Planning

19. Work breakdown Structure (WBS)
 A Work Breakdown Structure (WBS) is a hierarchical (from general to
specific) tree structure of deliverables and tasks that need to be
performed to complete a project.
 The Work Breakdown Structure is the foundation for effective project
planning, costing and management.
 It is the most important aspect in setting-up a Project
 It is the foundation on which everything else builds
 Lowest Level of WBS is the Work Package (WP)
 WP can be clearly defined allowing package to be costed, scheduled and
resourced
 WP contains a list of Tasks to be Performed that form the basis for the
Schedule
 WP allows assignment of responsibilities (Work Package Manger, WPM)

20. Work breakdown Structure (WBS)
 WBS allows hierarchical build-up of costs and schedule
 Cost and Schedule can be reported at any level of the WBS
 WBS facilitates strong management during project execution (Cost and
Schedule control)
 WBS can be used for many other things - Document Management, Risk
Management

21. Estimation
 Estimate: It is the quantitative assessment of likely amount or outcome.
WBS
 Time: For Scheduling
 Cost: For Budgeting
 Equipment: For Resource allocation
Project Plan
Estimate

22. Schedule Planning
 It determines the time duration required to complete the project.
 It helps to manage time side of the triple constraint.
 Most commonly used scheduling tools & techniques available include
network diagrams, Gantt charts, project calendars & Milestone charts.
 Each of them can be used for planning purposes as well as to manage
execution of the work during the life of project.
 Three Methods for Scheduling are:
 PERT Technique: It is an ‘ Event oriented’ system & ‘ Activity on Arrow’
system.
 CPM Method: It is an ‘ Activity on Arrow’ system that is ‘ Activity
oriented’.
 PDM Method: It is an ‘ Activity on Node’ system that is ‘ Activity
oriented’.

23. Cost Planning
 Points to consider
 Enterprise environmental factor (culture, markets condition etc).
 Organizational process assets ( guidelines, processes, procedures )
 Project Scope statement.
 Project plan
 WBS
 Schedule
 Resource plan
 Risk management plan.
 Cost Components
 Direct Cost: Cost that directly attributes to project i.e. cost of labor,
material & equipments.
 Indirect Cost: Cost for organizational support not directly attributes to
project such as electricity, heating etc.

24. Resource Planning
 It covers people, material, facilities, and other resources.
 Tools & Techniques includes:
 Roles & responsibilities matrix.
 Resource Gantt Charts.
 Resource loading table.
 Resource loading histogram.
 Resource leveling.

25. Risk Planning
 Project risk is an uncertain event or condition that, if it occurs, has a
positive or negative effect on a project objective
 A combination of the probability of a defined threat or opportunity
(Likelihood) and the magnitude of the consequences of the occurrence
(Impact) defines a Risk Index”
 Risk Impact
Threat → Scope → Poor Quality Product
Threat → Schedule → Late Delivery
Threat → Cost → Overspend
 In addition there are health, safety and environmental threats that must
be managed.

26. Risk Management Process
 Identify Risks
 Assess likelihood and impact
 Rank risks and prioritise
 Define risk management approach & actions
 Implement actions
 Monitor & review

27. Procurement, Communication & Quality Planning
 Procurement Planning: Involves deciding whether to procure outside
services & how to choose which outside entity to use.
 Communication Planning: It facilitates proper people getting proper
message at proper time.
 Quality Planning: Quality can be maintained by building quality control &
quality assurance processes into project costs & schedule from the
beginning.
WBS
Scheduling
Resource
Risk
Procurement
Communication
Quality
Project Plan

28. Project Implementation

29. Project Implementation
Step 1
Perform Tasks
Step 3
Manage Change
Step 4
Update the Plan
Step 2
Track Progress
Resolve
Issues

30. Collect Project Data
Supplier Status
Reports/
Meetings
Automated
Information
Systems
Project
Manager
Team Member Status
Review Meetings
Team Member
Status Reports

31. Project Performance
 Gantt schedule performance charts
 Cost performance charts
 Earned value techniques

32. Schedule performance charts
 Gantt charts

33. Cost Performance charts
Cost Performance Chart
$0
$10
$20
$30
$40
$50
$60
$70
$80
$90
$100
Weeks
TotalCosts(X1000)
PV 3 6 18 30 44 54 64 80 83 89
AC 8 16 30 48 66
1 2 3 4 5 6 7 8 9 10

34. Earned Value Analysis (EVA)
 Planned Value (PV): This is the budget for what was scheduled to have
been performed within the reporting period. This may also be called the
budget plan, performance measurement baseline or planned earned
value for this period.
 Actual Cost (AC): The actual cost of work completed within a given
reporting period. This includes only those costs related to work
performed to date.
 Estimate to Complete (ETC):What it will cost to finish the rest of the
project or an individual work task.
 Budget at Completion (BAC):The budget approved for the project. This is
also called the performance measurement baseline for the project.
 Estimate at Completion (EAC): Forecasted project cost determined at the
end of each reporting period.
 Earned Value (EV): This is the budgeted cost for the work that has actually
been performed within the given reporting period. Actual earned value is
the sum of the budgets for all work that has been completed for the
reporting period. At the activity level, it is equal to the percent complete
of an activity times its original budget.

35. Earned Value Analysis (EVA)
 Cost Variance = EV – AC
 Schedule Variance = EV – PV
 Cost performance index = EV/AC
 Schedule performance index = EV/PV
 EAC = BAC/CPI

36. Managing Project Change
 Categories of Change
 Customer requested
a. Typically the largest source of change
 All others
a. Internal company requests
b. Government regulation
c. Team members
Changes

37. Addressing Project Changes
 Call a team meeting.
 Explain what the change is.
 Obtain feedback from team members.
 Identify alternative corrective options.
 Prepare a decision matrix.
 Select a recommended option(s).
 Present information to upper management/customer.
 Implement the approved course of action.

38. Decision Matrix
RISKOPTION
IMPACT ON
SCHEDULEQUALITY COST
Describe course
of action for this
option
Quantify impact
on quality
Quantify impact
on cost
Quantify impact
on schedule
Indicate level of
risk as:
H - high
M - medium
L - low
Use overtime to
complete work
that’s behind
schedule
No impact on
quality
Will increase
cost by 5%
Will get project
back on
schedule
L
Overlap work on
later critical path
activities by
adding staff
No impact on
quality
Will increase
cost by 10%
Will get project
back on
schedule
H

39. Issue Resolution
 Disagreements that should be …
 Documented
 Assigned
 Scheduled
 Tracked
 Escalated
 Resolved

40. Project Closeout
 Project closeout: Is the process of finalizing all the activities across all of
the project process groups to formally close the project.
 Major Activates Performed:
 Providing customer with all information's.
 Preparing final payments.
 Reassigning project team members.
 Prepare final cost schedule report.
 Terminating outstanding PO.
 Disposing excess material & supply.
 Documenting lessons learnt.
 Rewarding project members.

41. Closeout Issues
 Project Team
 Loss of interest in work.
 Fear of no future work.
 Dissatisfaction with next assignment.
 Loss of team identity.
Diversion of effort.
 Reassignment of Personnel.
 Customers
 Loss of attitude.
 Change in personnel.
Resistance to ownership & change.
 Scope creep.
Knowledge transfer.

42. Scope verification & Customers Acceptance
 Scope Verification: Is the core teams thorough internal check of the WBS
to confirm that everything was done correctly.
 Customers Acceptance:
 Be sure to get acceptance documented by having the customers sign
off on a acceptance form.
 With technical approval also make sure customer is fully satisfied.
 Think wisely and ask customer “ what else can we do for you” it might
lead to a new project.
 Lessons Learnt:
 They should be captured as occurred.
 Should be documented in details.
 Should be Communicated to stakeholders.
 Should be Filed & Accessible.

43. Administrative & Contract Closure
 Key Points
Documenting project results to formalize acceptance of the product or
service by client.
 Collecting project records & ensuring they reflect final specifications.
Analyzing project success & effectiveness through lessons learned &
procurement audits.
 Archiving information for further use.

44. Closing out the project with team, stakeholders, and
yourself includes appropriate recognition & celebration
of your efforts.