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 within the overall resources, estimated cost and 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 actions 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 risks involved. Preparing a study requires consideration of 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, the next phase is planning for execution. Planning involves planning of resources like human resources, materials, equipments; estimating the 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 necessary to take necessary actions 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. Deviations 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 and testing is 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 upon 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 a 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. 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 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 requirements 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 timing 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.