Project Management
OVERVIEW
Project Management is different from business
management. Unlike business management, project
management does not involve managing routine and
repetitive work or task. Success of business depends
on identifying the right project at the right
time. It also depends on the execution of the
project with in the overall resources, estimated
cost and within the time frame envisaged. It requires
detailed planning of resources required, activities
to be undertaken, sequencing of the activities,
quantifying the resources required, specifying
the quality of the resources to be deployed to
achieve the desirable results. Coordination among
the various activities, continuous monitoring
of the execution, reviewing of the actual with
the estimated and taking corrective action are
other important activities in project management.
Project management involves managing of skills,
tools and processes. Knowledge required for different
nature and levels of work, experience, skills
that are required for the execution work have
to be identified. It involves deploying number
of management tools that are required for effective
implementation of the project, like standardizing
the documents for procurement, delivery, reporting,
and communication and measuring performance. It
also involves deployment of appropriate planning
tools, techniques, software, equipments etc. Project
management is essentially a process management
too. Because it involves managing the entire process
of planning, executing, reviewing and delivering
the results, which are expected to be achieved
within the time, quality and cost projected.
1. PROJECT DEVELOPMENT STAGES
1.1 IDENTIFICATION
Project starts with identifying right business
opportunity and appropriate technology/process/method
to achieve the objective, followed by undertaking
a detailed feasibility study to understand the
business potentials, problems and risk involved.
Preparing a study required considering the various
issues involved like minimum level of output required,
technology to be adopted, cost of input, pay back
period and level of profit for each alternative
option.
1.2 PLANING
Once the appropriate project is identified, next
phase is planning for execution. Planning involves
planning of resources like human resources, materials,
equipments; estimating of cost involved; planning
of activities to be undertaken, planning of time
required to complete each activity/task; sequencing
of the activity to be undertaken; prioritizing
of the activity to be undertaken; identifying
the risk and contingencies involved in sourcing
and execution; providing reasonable allowances
for such contingencies and chalking out a realistic
action plan.
1.3 EXECUTION
Execution phase of the project is the longest
period of the project and involves physical deliverables.
It is also necessary to take utmost care and effort
to execute the project within the overall cost
and time estimated and to deliver the quality
of the output expected. It involves number of
management processes. Outcome of the project depends
up on the efficiency with which such processes
are executed.
1.4 MONITORING AND EVALUATION
It is required to closely monitor the actual
performance as against the performance planned.
It is required to identify the variation, as against
the projection and to identify the reason for
such variation.
1.5 CORRECTIVE ACTION
After identifying the variation and the reason
for such variation, it is required to take necessary
action that are required to ensure the non–occurrence
of variation in the future course of action in
implementing the project. It also involves reviewing
of the target set and setting up of a realistic
target, based on the experience gained during
the course of execution.
2. APPROACHES
Managing the project has different dimensions
and approaches to plan, execute, evaluate and
control. The following are such chief dimensions
in project management.
2.1 Time Management
Time is the essential part of the project management.
Time over run involves cost over run and
erodes the profitability of the entire project.
Some time it may also result in loosing the opportunity
envisaged. Therefore, it is also required to maintain
records for the time spent by each member of the
team for the project, time taken for completion
of each activity and to compare with the time
estimated and planned.
2.2 Cost Management
Cost component of each resource input are estimated
and approved well in advance during the planning
phase of the project. Actual expenses incurred
for each activity/component like labour equipment,
material of the project have to be recorded and
compared. Deviation as compared to the approved
project cost are identified and analyzed to take
corrective action.
2.3 Quality Management
Quality Management is the process by which the
quality of the deliverables is assured and controlled
for the project. Minimum standards required for
the material inputs are predetermined in advance.
Efforts are made to procure the resources as per
the quality of standards prescribed. Inspections
are testing are carried out periodically to ensure
the quality input. Registers for the quality of
inputs are maintained Reviews are made periodically
to ensure the output of the work completed to
meet the required standards prescribed. Statistical
quality control techniques are also used.
2.4 Risk Management
Project is made on certain assumptions about
the behavior, cost, market, supply and so on.
During execution, the situations may change. All
components of project may not be the same as predicted.
Therefore, it is necessary to continuously oversee
the actual input as compared to the forecast and
to take necessary steps to minimize the risk or
to take alternate steps to avoid the risk.
2.5 Change Management
Review of the implementation of the project necessary
brings in some changes in source input, material
input, quality input, skill input, technology
input and time input. It will also have bearing
on the final out come of the project and may require
changes in the original plan made. Therefore it
is necessary to manage these changes effectively
with out affecting the over all cost, time and
quality of the deliverables planned.
2.6 Communication Management
Successful completion of the project depends
up on the timely sourcing of all required resources
with in the cost estimated and as per the quality
prescribed. This involves continuous and effective
co-ordination among various functional arms of
the project and constant review of the actual
with the estimated. Therefore communication should
flow in all spectrums of the project management
freely and continuously without any extra effort
for the purpose as the work progresses. This involves
designing of formats for communication among all
the functional divisions while execution and completion
of the each task and activity.
3. ACTIVITY CHECK LIST
3.1 IDENTIFICATION
Identifying an business opportunity or problem
Undertaking feasibility study
Selection of the project considering the cost
involved, benefits envisaged
Selection of the technology, location, size and
minimum critical limits for operation
3.2 PLANNING
Formulating Project Plan
Segregate the entire project in to set of phases
for execution
Identify the activities and tasks to be undertaken
to complete each phase of the project
Sequence the activities and task and identify
the set of activities that could be undertaken
to complete the project fast
Estimate the time required for completion of
each activity, task and phase of the project 3.2.1.4
Estimate the resources required for completion
of each activity, task and overall completion
of the project
3.3 Formulating Resource Plan
After formulating the overall project plan,
it is necessary to assess the detailed resources
required to complete the project in the following
heads.
Nature and category of resources required in
materials, equipments and human resources.
Quantity of resources required in each category
Qualification, experience and skill required
for human resources and the setting up on functions
and responsibilities
Specification for each material and equipment
resources, its purpose and end use
Identification of probable sources of supply
considering the quantity, quality, cost of the
material required, availability in the market,
need, specifications, ability of the supplier
to meet the requirement in time and their financial
viability
3.4 Formulating Financial Plan
Labour, equipment, materials and other resources,
which were specified and quantified, are converted
in terms of cost. Detailed planning for sourcing
of funds and timings of the funds are made considering
the cost of such funds.
Quantify the total requirement for funds considering
the total quantity of material equipment and other
resources planned in the earlier stage for completion
of project giving appropriate allowance
for cost escalation, time over run
Select appropriate source for funds considering
the terms of financing, cost of finance and time
required for releasing of funds for the project
Decide the quantum of funds and the time during
which the funds are required at different stages
for effective completion
Decide the appropriate capital mix, considering
the internal availability of funds,cost of outsourcing
and tax implications
Making effective arrangements for the timely
supply of finance during the entire period of
project implementation.