What Is a Project?

1. What Is a Project? “A project is a temporary endeavor undertaken to create a unique product or service.”

2. What Is Project Management? “Project management is the application of knowledge, skills, tools, and techniques to project activities in order to meet or exceed stakeholder needs and expectations.”

3. Project Manager “The person who is responsible for the project and will be held accountable for its success or failure.”

4. The Triple Constraint Project Scope Cost Quality Within Available Resources Schedule(Time)

5. Balancing the “Project Success Triangle” • A clear understanding of customer priorities • “Team” skills • Thorough planning • An organized, structured process

6. Project Management Process Initiation Planning Execution Controls To help guide you through the process you need a roadmap of some type … Closeout

7. Project Stakeholders • What is a project stakeholder? • If you can gain or lose from the success or failure of a project, you have a “stake” in the project.

8. Key Project Stakeholders • Customer/client • Project sponsor • Project manager • Project team

9. Tools & Techniques of project management

10. Project Plan • Provides an effective communication tool to ensure understanding of project goals and the means to achieve them • Defines outcomes and commitments • Establishes guidelines and standards • Establishes the baseline for evaluating and reporting progress • Forms the basis for scope control and change management

11. Project Pre-plan Project Plan Project Implementation Project Close-out Project Administration Project Notebook

12. Statement of Work — Purpose • Define the scope of the project • Establish customer expectations • Serve as a “contract” if necessary

13. Generic Contents • Customer • Project • Title • Purpose • Background • Deliverables • Measurable success indicators • Customer support • Risk plans

14. General planning & scheduling tools Project management tools help the manages to administration, planning and scheduling of project. One can often use the software charting facilities included in this software to produce graphical versions of your plans. Project management tools has the following features: • Create a task • Store information about a task (e.g. who will do it, how long it will take etc) • Update task information as your project changes • Generate plans based on tasks • Publish charts and reports to help you manage the project and to present information to the stakeholders

15. Gantt chart & PERT charts The common charts are Gantt charts and PERT charts A Gantt chart is a picture of how long all the tasks should take. You can use Excel to create a Gantt chart

16. Gantt chart & PERT charts The common charts are Gantt charts and PERT charts A PERT chart (program evaluation and review technique) shows the dependencies between tasks. It depicts the task, its duration and dependency information 50 T = 1wk T = 2wks G D 20 T = 4wks 60 T = 1wk E A 10 F B 30 T = 2wks A 40 C T = 2wks T = 1wk

17. Critical Path Methods Critical path methods identify the minimum time needed to complete a project. They show which tasks are on the critical path. This lets you, as project manager, prioritise these tasks to make the project more likely to finish on time. Critical path analysis (CPA) works on the principle that some tasks cannot start until previous tasks are finished. For example, you cannot test a program until after you have coded it. you must complete these dependent tasks in a sequence. Often tasks are not dependent on other tasks starting or finishing, so you can do these tasks in parallel.

18. Critical Path Methods Consider this series of tasks for a computer system. • Specify and design system • Code program 1 • Test program 1 • Code program 2 • Test program 2 • Test and implement system The project manager works out the dependencies and timescales and draws up the critical path (shown on next slide). From this you can see that tasks 1, 2, 3 and 6 are on the critical path. A minimum time of 21 days is needed for this project.

19. Critical Path Methods From this you can see that tasks 1, 2, 3 and 6 are on the critical path. A minimum time of 21 days is needed for this project. Task 1 5 days Task 2 10 days Task 3 4 days Task 6 2 days Task 4 5 days Task 5 2 days

20. Specialised software packages To help manage a project there are many packages available. At the simplest, there are freeware or shareware packages available from the Internet. Microsoft Project is a popular middle-of-the-range tool that can help manage a wide variety of projects. For large construction or IT projects involving very many tasks and workers, there is expensive, specialised software available.

21. PROJECT IDENTIFICATION , GENERATION OF IDEAS AND FORMULATION

22. HOW TO START A NEW PROJECT • Idea generation • Primary screening or pre-feasibility study • Project feasibility or detailed feasibility study • Support study • Detailed project report (DPR) • Design or planning • Implementation or execution • Termination of project

23. Idea generation or project identification Support Study Preliminary screening or pre feasibility study Project feasibility or feasibility study Market & demand Analysis Technical Analysis Financial Analysis Social cost benefit Analysis Environmental & risk analysis Detailed project reporter formal approval from sponsors Planning, organizing & scheduling of project activities Direction & controlling of activities Termination of project (commissioning)

24. IDEA GENERATION OR IDENTIFICATION OF INVESTMENT OPPORTUNITIES • Idea generation is the process of grouping logical thoughts based on some factors.

25. IMPORTANCE OF IDEA GENERATION • Basis for other steps in completing steps. • Important for continuous growth of organization. • Survival in the competitive market. • Contribution towards development of society.

26. SOURCES OF IDEA GENERATION • Performance of existing industry • Examining the inputs and outputs of various industries • Review of imports and exports • Availability of cheap materials & labor locally • Price trend, to find demand – supply gap • Government guidelines • Analysis of economic and social trends • Study of new technological developments • others

27. PRELIMINARY SCREENING OR PRE-FEASIBILITY STUDY • Preliminary screening is done with a view to avoid unnecessary cost and efforts in detailed study, if idea is not looking worthwhile in first instance • DEFINITION : Preliminary screening can be defined as a series of steps to know whether or not a complete detailed feasibility study should be made.

28. OBJECTIVES OF PRELIMINARY SCREENING • To determine whether project (idea) is promising business opportunity or not. • Whether it justified a detailed analysis or not • To find out any critical aspect on which success or failure depends • To formulate a plan for detailed feasibility study

29. ASPECTS OR AREAS OF PRELIMINARY SCREENING • Acceptable risk level • Consistency with government priorities • Availability of inputs • Adequacy of market • Reasonableness of the costs • Compatibility with promoters

30. SUPPORT STUDY • Support study can be defined as – An in-depth investigation into any one or a couple of critical aspects (areas) of a project, to help the feasibility study. • Critical aspect here means those areas whose success or failure decides the success of failure of business or project.

31. OBJECTIVES OF PROJECT FEASIBILITY STUDY • It guarantees the success of Project • It works as basic terms of reference for Project • It describes the nature and complexity of Project • It gives an idea about investment in Project • It also provides us the possible future difficulties • It gives an idea about economic and social benefits

32. Difference between Pre-Feasibility Study or Project or Detailed Feasibility Study

33. Components of Project of Detailed Feasibility study • Market and Demand analysis • Technical analysis • Financial analysis • Social Cost-Benefit analysis • Environmental and risk analysis

34. Detailed Project Report (DPR) Meaning: “Doing project feasibility is not the end of Project formulation stage. It also includes documentation of it, which is known as Detailed Project Report.”

35. PROJECT MARKET & DEMAND

36. Objective Specification Collection of Data Market Survey Market Description Demand Forecasting MARKET PLANNING Market Demand Analysis

37. Market Survey “Market Survey is a technique that is aimed at gathering all possible information (primary data) by conducting interviews.”

38. Steps under Market Survey • Defining the Target Market • Selecting the Sample • Developing the Questionnaire • Training the Surveyors • Recording the Information • Interpreting the Information

39. Market Descriptions • Competition in Market • Study of Market Segments • Price • Methods of Distribution • Sales Promotion • Consumers Interest

40. Demand Forecasting “Demand Forecasting is the art of predicting demand for a product or a service at some future date on the basis of certain present and past behaviour patterns of some related events.”

41. Characteristics of a Good Demand Forecasting • Accuracy • Simplicity • Economy • Timeliness • Availability

42. Techniques of Demand Forecasting • Survey of buyer’s intentions • Collective opinion method • Expert opinion method • Controlled experiments • Study of general economic environment

43. Statistical Methods • Trend Projection Method • Graphical Method • Regression Analysis

44. Market Planning This steps under Market and Demand Analysis is not related to actual analysis, but related to Market plans of new firm (if idea under consideration is selected). Under this step, four P’s of Marketing viz Product, Price, Place and Promotion should be well designed to achieve the expected level of Market Penetration.